What You Need to Know About Companies Like Opendoor and Offerpad

You may have heard of Opendoor and Offerpad, but what do these kinds of companies actually offer you as a seller?

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Today, I’d like to share some information about two big players in the world of wholesaling and direct seller offers.

Right now, direct offers to sellers from institutional wholesale buyers are a big trend in real estate. There are two main companies pioneering this space: Offerpad and Opendoor.

You may have seen advertisements from either of these companies via direct mail, on TV, on the radio, or elsewhere. These companies boast that they will buy directly from sellers, targeting those who may be attracted to the convenience this kind of deal has to offer.

Some sellers may be attracted to the convenience a wholesale institutional buyer can offer.

However, while convenience is a positive aspect of this kind of transaction, there is a downside. Sellers on the open market will typically net more for their property than those who sell directly to a company like Offerpad or Opendoor, even after a fee of 6%.

There are ways that Realtors can work with these companies. So if you have any interest in this kind of transaction, feel free to get in touch. My team and I would be happy to discuss your options with you.

Ultimately, the best way to decide what is best for you and your property is to clearly understand which will earn you a higher net income.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Why Representation Matters After Your Home Sells

I believe having good representation after a home contract has been is accepted is just as (if not more) important than it is before a purchase agreement is accepted. Here's why.

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In my opinion, your representation after you execute a purchase contract on a property is just as important (if not more important) than your representation when you first buy a home and negotiate a contract. Most people don't even consider the representation afterward.

I've personally seen tens of thousands of dollars saved that would have otherwise gone out the window if there had been bad or no advice given to the client. There are two main points for this: the inspection period and the appraisal. Today, we'll just talk about the inspection period. We'll cover appraisals next time.

Not having good representation after a contract is accepted could cost you thousands of dollars.

As for the inspection period, the buyer will do all their due diligence. When they do this, they have the right to as many inspections as they want. When they're done at the end of the 10-day inspection period, they'll submit a report of what they want the seller to fix in writing. Many sellers don't want the deal to fall through, so they capitulate and give the buyer most of what they want—this can be a grave mistake due to all the money riding on those repairs. 

That's why it's good to have someone in your corner representing you who has contacts with good contractors and vendors so they can get estimates for the costs of these repairs. That way, you'll have everything at your disposal to make an informed decision. Secondly, you want great representation for their ability to negotiate and ask open-ended questions to the other agent and find out whether the buyer truly loves the house or they're on the fence about it. This can also help you get a sense of how important certain repairs are to them.

These are all things that a good agent will do for a seller after the contract has been accepted. If you have any other questions about this topic, I'd love to help you out. Negotiation can be fun and there's a level or art and skill to it, so give me a call or send me an email soon and let's get the conversation started!

4 Things That Will Get Your Home Sold for Top Dollar

People lose out on thousands of dollars if their homes aren’t properly prepared for sale. These four things will make sure you sell your home for top dollar.  

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If you’re ready to sell your home, make sure it is properly prepared for the winter market. Not doing so could potentially cost you thousands of dollars. Our team really knows how to make a difference in the look of a home. Here are four things that will help your home sell for top dollar:

1. Curb appeal. Curb appeal plays a vital role. Most people think of landscaping when they think of curb appeal, but it’s more than that. For example, consider getting a new door handle. This will boost a buyer’s opinion of a home before they even enter it. 
2. Holiday decorations. Although we all love his antics, you don’t want to be Clark Griswold when trying to sell your home. Having some decorations like a tree or another holiday centerpiece is great, though. 
Although we all love his antics, you don’t want to be Clark Griswold.
3. Natural light. Always make sure your windows are clean and the curtains are pulled back. Show off as much natural light as you possibly can. 
4. Interior staging. I can’t rave enough about the benefits of interior staging. Spending the money to have a home professionally staged always comes back in the price the home sells for. Again, to see an example of what I mean, look back at those before and after pictures. 

If you do these four things, you will sell your home, and you will sell for a great price. If you have any further questions or want to talk about selling your home, please give us a call or shoot us an email. We are here to help. 

Answering Some Common Distressed Real Estate Questions

We are here to answer some questions about short sales, how they work, the benefits they offer, and how long you have to wait to buy again.

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We are back to answer a few questions about distressed home sales. A lot of people went through foreclosures and short sales during the recession, and a lot of them are now curious about when they can get back into the market. Others bought during the recession and haven’t quite been able to stay above water, so they want to short sell their homes. Let’s discuss the wait period first. People have been asking, “When can I buy a home again?”

If you want to buy a home with conventional financing after going through a short sale, you will have to wait four years. After a foreclosure, you would have to wait seven years. This loan has a limit of $417,000. If you want to buy with an FHA loan, which has a limit of $271,050, you’ll only have to wait three years. This goes for both short sales and foreclosures.

The second question I’ve been getting is “How do I short sell my house?” Unfortunately, this question is becoming all too common. The market is still about 20% off from where it was at the peak in 2007, and if you’re underwater and can’t sell traditionally, a short sale can be a great option.

The Mortgage Forgiveness Debt Relief Act is still in play.

The best thing about doing a short sale right now is that the Mortgage Forgiveness Debt Relief Act is still in play through the end of 2016. Congress could extend this out, but as of now, they have not. You still have several months to take advantage of this act through a short sale, which will forgive you from paying taxes on an owner-occupied residence that you want to short sell.

If you have any questions for me at all, don’t hesitate to reach out. I can answer all your real estate questions and point you in the direction of an experienced loan officer to answer any mortgage-related inquiries. I look forward to hearing from you soon!

Combatting Arizona’s Loan Contingency Clause

Let’s say you are selling your home. It’s been under contract, you’re three days away from closing, and you’re all ready and packed up. Suddenly, you receive that dreaded call that the buyer is walking away. What’s more, they’re taking their earnest money with them, which can be done in the state of Arizona.

This is a nightmare scenario that happens to people in this state when they don’t have the right representation looking out for their best interests. In this state, many agents don’t even know that this clause exists. We always consult with our clients about this clause. In a counter-offer situation, we also counter that verbiage of the clause.

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In Arizona, some agents don’t even know that this clause exists.

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We like to bump up the timeframe that allows them to back out of the deal prior to close of escrow from three days to 10 or even 14 days. That way, both parties know that there’s a hard stop, so if the buyer isn’t able to obtain loan approval 10 (or 14) days before close of escrow, their earnest money is not refundable.

We always aim to put your best interests at the forefront. If you have any questions about loan contingencies or any questions at all about real estate, give us a call or send us an email. We would be happy to help you!

Is Zillow Endangering Your Home Sale?

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I talk to many of my clients who want to know whether or not they can trust Zillow to provide accurate home value estimates. I want to start off by saying that Zillow can be helpful to real estate consumers. There is a ridiculous amount of information available on that site, and most of it is helpful. However, Zillow’s home value estimation tool, the Zestimate, should be avoided. You might as well spin a wheel and pick a random price for your home.

If we go on Zillow's website, this is how they explain it: The Zestimate is created by an automatic software process designed by statisticians, and there is no ability for humans to manually alter the Zestimate for a specific property.

Zillow's estimates are always off by about 8%, which first of all, is a ton of money. At a high price point, the margin error is huge.

To make that more clear, let's say a home is estimated to be worth $500,000. If the Zestimate is off by 10%, that's a difference of $50,000! If the home is underpriced, you're missing out on tens of thousands of dollars. If your home is overpriced by 10%, it will sit on the market for awhile, and you might have to drop the price, causing buyers to wonder what's wrong with the home.

Remember, Zillow can't take features or upgrades on your property and compare them to other recently closed homes in your area, even though doing so gives you a more updated value on your property. Zillow doesn’t know anything about your school district or the value of your location.

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Zillow’s home value estimation tool, the Zestimate, 

should be avoided.

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Zillow doesn't walk through your home or your neighborhood, and that's where my team can come in and place an accurate value on your home. As markets shift, Zillow's numbers become even less reliable.

Ultimately, if you want the most accurate price for your home, make an appointment with a real estate professional. We will take our time looking at your home and the local market data in order to give you the most accurate home value.

If you have any questions, or if you're interested in a home valuation, give us a call or send us an email. We look forward to hearing from you!