Should You Walk Away From a Real Estate Deal?

author RE/MAX Condos Plus   1 год. назад

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I've completed dozens of real estate transactions over the last 20 years, but a few times I've had to walk away. Here's why.. Sign up for STRU: STRU Host Ready Products: STRU Podcast: ---------------------------------------------------------------------------------- PRODUCTS I USE FOR MY AIRBNB: Dynamic Pricing I use: How I create my guest guidebook: Accounting Software I use: Favorite Mattress ($50 off): ***Social*** FB GROUP: Instagram: Twitter: Music by Maxzwell:

What Home Buying Inspections Should You Absolutely Do... When buying real estate you are going to want to do inspections... A quick recap, You got pre-approved, searched for a house, made an offer and got it accepted. Hi again, this is Don Thompson, you local real estate expert advisor. As part of your negotiations, one of the contingencies you’ve agreed to with the seller is the right to do inspections. Typically within the first 10 days to two weeks you have an opportunity to have any kind of professional inspector check out the property. Your rights under the contract are typically the opportunity to back out of the contract and get your deposit back if you are unhappy with anything the inspector finds. The seller will not be obligated to fix anything just because “the inspector said”. Now, from a practical standpoint, you can ask the sellers to make repairs or lower the price or maybe give you a credit, basically you’re re-negotiating the deal, but understand they are not obligated to do so, unless, you negotiated the repair and they agreed to it ahead of time as part of the offer process. Many of my clients will ask me how bad the inspections have to be to pass or fail. My response is “it depends”. I mean, Who actually decides whether an inspection passes or fails….the inspector? me, your realtor? or you, the buyer? … That’s right, You do. You decide whether an inspection passes or fails, you get to make a business decision after the inspections and the re-negotiations whether you want to continue with the process or you want to back out and look for another house. It’s ultimately your decision! So what kind of inspections do you do. Well, minimally, you will want to do a structural/ mechanical and termite inspections. The structural/mechanical is where a licensed inspector basically, gives your house a physical. He or she will poke and this...take the cover off of that, they’re looking for issues or signs of potential issues with the structure of the house... the roof, the walls, floors and foundation… the structure and then the mechanical portion deals with the heating, air conditioning, the electricity and the plumbing...the mechanical components of your house. The termite or wood boring inspection should be conducted by a licensed pest inspector, many times they’re also an exterminator. They’ll be checking for signs of infestation and/or damage to the structure caused by wood boring insects, like termites, carpenter ants or carpenter bees, powder post beetles and any other “wood boring” insect. These two should be the minimum. Some other inspections you might want to consider might be “radon”, asbestos, lead paint. The lead paint laws state that if a child under the age of 6 lives in a property, it must be lead safe. Lead based paint is too big a topic to discuss in this video but for houses built before 1978, the seller must disclose if they know whether the house has lead paint or not. And most sellers do not know. If the house has a well, you will want to check the water for potability, is it drinkable, and maybe test the water for radon. If there is a septic system, you probably want that checked out… in Massachusetts, in fact, it’s a requirement that if the system hasn’t been inspected in the past two years and three years under certain circumstances, it must be inspected by law. During the inspection period, you check for anything and everything that you think is important to you. Also, if there is anything that you want to do to this property or with the property, that if you couldn’t do wouldn’t buy’s during the inspection period that you want to make sure you have all of your answers. Because you can still back out and get you deposit back.And just to say,the inspectors are there to give you their opinion of the property at that point in time they were there. They’re not clairvoyant... They do not have x-ray vision, they can’t see through walls and into inaccessible areas. At least, none of the ones that I know. So, to wrap this up, do your inspections, inspect whatever you what, whatever you can afford, because, although it is not insurance that nothing can go wrong with you house, inspections will give you a much better idea of what you are getting into. Your expert real estate advisor should be able to point out some of the obvious issues with a house so that you’re not spending your hard earned cash on that “money pit” unless of course that’s what you want. And although I am not an inspector, I, personally, like to point out things that I see to my clients, that, if nothing else they now can ask their inspector to evaluate specifically. So if you need assistance with your next home purchase... Please give me a call at 413-221-9981.. . or send mean email at I’d be happy to advise and guide you to your next home. Thanks for listening. Have a great day.

JIM ROGERS - 8 Jun 2017 - Markets Crash By Late 2018-2019 You'll Know It

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5 Biggest First Time Home Buyer Mistakes 2018 THE 5 BIGGEST FIRST TIME HOME BUYER MISTAKES!! 1. People aren't aware of what they can afford. They don't get pre-approval of their financial situation from the bank. Shopping for your first home is fun and an exciting time. You get to shop around, browse a bunch of different options and critique the previous choices of wallpaper, bathroom tiles etc. The problem is, that if you dont have pre-approval, you are not only wasting your own time, but the realtors time if you have hired one. Most professional realtors won't even offer their services unless you have pre-approval A genuinely verified pre-approval makes you aware of a few things: What can you confidently offer for homes that you like? Simplifies the online loan and home information process. Educates you on different product options and mortgage rates that will potentially save you thousands over the duration of your mortgage. Success on your application offer because you have confirmed all of your financial details and your lender can remove conditions once a satisfactory house appraisal has been made Advises you as to whether you are in a good position financially and that your credit is such you can afford a mortgage. Don’t be forced to let go of a good deal based on the fact that your finances aren't in order. Get pre-approved by a mortgage broker. 2. Not getting their Terms and Conditions right on their contract. Are you aware of all of your rights as the purchaser? There are a few ways that you can protect yourself if there are issues with the handover of a property. What most home-buyers don't know: The deposit amount is not fixed. Most real estate agents will ask for a 10% Deposit however this amount can be negotiated between the purchaser and the seller. This can be any arbitrary amount. The seller can't touch the deposit until the house has settled. Settlement can take anywhere from 30 to 90 days so this money is no good to anyone during that time. It makes a lot more sense to write a smaller amount on the contract that is easier to manage for most home-buyers. The contract can be made subject to a building and pest inspection. Make sure you get a building and pest inspection and have this as a clause in the contract so that you are protected in future if anything does go wrong structurally or there are a few extra creatures than you paid for. The contract can be made subject to finance if there are any issues with payment. 3. Buying property based on emotion Dont make the mistake of walking into a property and falling immediately in love because 'it feels right'. Keep multiple properties in mind to combat this. Your property love affair may quickly fade if: You discover that the property is not in a capitol growth area and that that suburb is destined to decline in value. You don't take into account the functionality of the property and your future plans. e.g. a couple buying a one bedroom house with a small backyard will soon be disappointed if they discover that they wish to start a family in the coming years. You end up paying more for it than its worth or over your limit when it goes to auction because you're caught up in emotion. Take a very rational approach. 4. Assuming that the Property will go up in Value When looking at a property's value you need to assess just 'who' is telling you that it will appreciate. Is it someone trying to sell you the house, or an independent professional? Noone can predict the future but by looking at a suburb's previous growth history you can take a fair estimate at where the property will be in 10-20 years time. Ways that you can assure that your property WILL go up in Value: RENOVATE- Simple upgrades such as painting the walls, changing carpets and upgrading kitchens and bathrooms can add massive value to a property, even better for you if you have friends or family who can help out. 5. They Buy New Homes Time and time again we see first-home buyers being swept up in the allure of buying a 'NEW' home. However we reccommend that in most circumstances it is in the buyers best interest to buy a second-hand home in a great location (near the city or beach) than to buy a new home that has just been developed. Often when buying a new home you are paying a premium for the building on the land, aswell as the land itself. Compare this to an old building on the same land, and the cost is going to be much lower. Fast forward 10-20 years and the 'New' home is now out of style (will be sold at a discount) and the land on both properties has gone up, however the money spent on the new building has been lost. *Nothing contained in or provided through this YouTube page is intended to constitute advice or to serve as a substitute for the advice of a working professional. For further info visit

Negotiating Counteroffer - Tips to Negotiating Counteroffers For Buyers - Negotiating Counteroffers Requires Poise and Patience. Here Are Some Negotiating Counteroffer Tricks for Real Estate Investors... SUBSCRIBE TO OUR YOUTUBE CHANNEL SUBSCRIBE TO OUR FREE NEWSLETTER LET’S CONNECT Hi, this is Frank Chen with, the only site you need as a real estate investor. Today I've got a quick video on how to negotiate a counter offer. Many investors will tell you to offer between 50-80% of the listing price, but the issue with that, is every property is different and there are many scenarios where your first offer won't always be accepted. So what happens when you get counter offered? Step 1: Be Prepared when Negotiating Counteroffers - MLS printout - read the remarks, DOM - Property comps for similar properties being sold in the area - same parameters - Public Tax Records - Tax Assessment to give you a ballpark comp - Investigate - owner occupant, investor, investment group, bank owned? - When was the property last sold? How much? - find this out from your realtor - Title, mortgage and liens - find out if property is "clean" Step 2: Establish Your Bottom-Line - How much can you comfortably offer on this deal, and still make a decent profit? - Establish your bottom-line so you don't get pushed around and make a poor decision Step 3: Getting The Price You Want - Goal: Raise as little as possible, and have the seller come down as much as possible - Incremental - Each counter needs to be slightly less than the original increase. EX: 100K first offer, 103K second offer, 105K, Third Offer - This shows the seller that you may be coming close to your bottom-line Step 4: The Waiting Game - You want your seller to feel anxiety and make an impulsive decision - Don't counter immediately, it shows eagerness and desperation - you lose control - Take a few hours before submitting your counter - 4-6 hours - Tell your realtor you need time to think - Tell your realtor its going to be really hard to reach the price they want - Tell your realtor you want to start looking for other properties in the area - Hopefully your realtor will passively convey this message to the seller, which will create pressure ***Understand that the realtor is essentially looking out for their personal interest, their commission. So if they sense weakness from either you or the seller, they will tend to put a bit more pressure on the weaker party to get the sale finalized. Step 5: Final Offer - "Is this the best you can do?" - This is my final offer - Have the confidence to walk-away - its more powerful than you think Step 6: Follow-up Offers - If you are really interested in the property, send a follow-up offer at a slight increase - It might stir up another phase of negotiation. Avoid the Following: - Don't be overly critical on the property to lower the price - may offend or annoy seller - Don't express your position to anyone, not even your realtor - Don't low-ball your offers - immediately get rejected - avoid this by researching - Don't give ultimatums - "if you don't take this offer, you're looking at several months of vacancy" - Don't get PERSONAL - it's about the house, not about you. Not all counter offers will be unacceptable. Assess the property of interest, know your margins, and if the numbers are right, whether it is at your price or the sellers, you should make a move on it. It all comes down to the numbers, whose more prepared, but most importantly, who is more patient. Every dollar you negotiate down, is a dollar saved. The best advice I can give you, is don't get discouraged, and don't take anything personal. It's all part of the sales game. Again, this is Frank Chen with Please take the time to leave your comments for this video below and please subscribe to our YouTube channel so you'll be automatically notified when we upload more quick video tips for you. Take care and good investing. "REIClubRealEstateInvesting"

Welcome to Inside the Real Estate Market. Hi there, I'm Jamie Johnston, Broker/Owner of RE/MAX Condos Plus.

With the sudden change in the market, some buyers who bought at the end of March and early April are thinking they might have paid too much. Should they just walk away from the deal and loose their deposits?

Bad Idea! Walking away is the most expensive thing you can do. A Seller will then resell the property, probably for less money because you the Buyer will cover the losses. The Buyer will also pay for the extra legal fees, carrying costs of the property, extra costs for where the Seller is moving to, and so on. You get the picture, big bucks!

Close now. We don't care what it costs you. The market will bounce back in September and prices will be back to March and April prices by this time next year. Remember, real estate is a long term investment, think short-term and you can loose. Think long term and you will always come out ahead.

I'm Jamie Johnston

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