5 Tips for Homebuyers Who Want to Make a Competitive Offer

5 Tips for Homebuyers Who Want to Make a Competitive Offer | MyKCM

Today’s real estate market has high buyer interest and low housing inventory. With so many buyers competing for a limited number of homes, it’s more important than ever to know the ins and outs of making a confident and competitive offer. Here are five keys to success for this important stage in the homebuying process.

1. Listen to Your Real Estate Agent

A recent article from Freddie Mac offers guidance on making an offer on a home in today’s market. Right off the bat, it points out how emotional this can be for buyers and why trusted professionals can help you stay focused on the most important things:

“Remember to let your homebuying team guide you on your journey, not your emotions. Their support and expertise will keep you from compromising on your must-haves and future financial stability.”

Your real estate professional should be your primary source for answers to the questions you have when you’re ready to make an offer.

2. Understand Your Finances

Having a complete understanding of your budget and how much house you can afford is essential. The best way to know this is to reach out to your lender to get pre-approved for a loan early in the homebuying process. Only 44% of today’s prospective homebuyers are planning to apply for pre-approval, so be sure to take this step so you stand out from the crowd. It shows sellers you’re a serious, qualified buyer and can give you a competitive edge if you enter a bidding war.

3. Be Ready to Move Quickly

According to the Realtors Confidence Index, published monthly by the National Association of Realtors (NAR), the average property being sold today is receiving more than three offers and is only on the market for a few weeks. These are both results of today’s competitive market, showing how important it is to stay agile and vigilant in your search. As soon as you find the right home for your needs, be prepared to work with your agent to submit an offer as quickly as possible.

4. Make a Fair Offer

It’s only natural to want the best deal you can get on a home. However, Freddie Mac also warns that submitting an offer that’s too low can lead sellers to doubt how serious you are as a buyer. Don’t submit an offer that will be tossed out as soon as it’s received. The expertise your agent brings to this part of the process will help you stay competitive:

“Your agent will work with you to make an informed offer based on the market value of the home, the condition of the home and recent home sale prices in the area.”

5. Be a Flexible Negotiator

After submitting an offer, the seller may accept it, reject it, or counter it with their own changes. In a competitive market, it’s important to stay nimble throughout the negotiation process. Your position can be strengthened with an offer that includes flexible move-in dates, a higher price, or minimal contingencies (conditions you set that the seller must meet for the purchase to be finalized). There are, however, certain contingencies you don’t want to forego. Freddie Mac explains:

Resist the temptation to waive the inspection contingency, especially in a hot market or if the home is being sold ‘as-is’, which means the seller won’t pay for repairs. Without an inspection contingency, you could be stuck with a contract on a house you can’t afford to fix.”

Bottom Line

Today’s competitive market makes it more important than ever to make a strong offer on a home, and a trusted expert can help you rise to the top along the way.

Posted by Roberta Watson on December 1st, 2020 7:42 AM

Real Estate Is a Driving Force in the Economy | MyKCM

As the economy recovers from this year’s health crisis, the housing market is playing a leading role in the turnaround. It’s safe to say that what we call “home” is taking on a new meaning, causing many of us to consider buying or selling sooner rather than later. Housing, therefore, has thrived in an otherwise down year.

Today’s high buyer demand combined with low housing inventory means we’re seeing home prices appreciate at an above-average pace. This demand is being driven by those who want to take advantage of historically low mortgage rates. According to Freddie Mac:

"The record low mortgage rate environment is providing tangible support to the economy at a critical time, as housing continues to propel growth."

These factors are driving a positive impact on the economy as a whole. According to the National Association of Realtors (NAR), the real estate industry provided $3.7 billion dollars of economic impact to the country last year. To break it down, in 2019, the average newly constructed home contributed just over $88,000 per build to local economies. Across the country, real estate clearly makes a significant impact (See map below):Real Estate Is a Driving Force in the Economy | MyKCMIn addition, last week, the Bureau of Economic Analysis announced the U.S. Gross Domestic Product increased at an annual rate of 33.1% in the 3rd quarter of this year, after decreasing by 31.4% in the second quarter. There’s no doubt the growing economy is being fueled in part by the soaring housing market. Experts forecast this housing growth to carry into 2021, continuing to make a big impact on the economy next year as well.

Bottom Line

The American Dream of homeownership has continued to thrive in the midst of this year’s economic downturn, and “home” has taken on a new meaning for many of us during this time.  Best of all, the housing market is making a significant impact as the economy recovers.

Posted by Roberta Watson on November 9th, 2020 11:27 AM


Apparently, downsizing is so 2016. New housing trends indicate a move to bigger (not tinier). 

Season is almost here and the Ocean Reef real estate market has already started to rev up after its summer snooze. Like the rest of the country, we’ve noticed the upsizing trend really pick up in our little hamlet; and some of our young families are skipping the starter-home size all together. 

According to Zillow.com research, young consumers are beginning to prioritize space. A whopping 56 percent of millennials said that having a large home is important to them, compared with 42 percent of Gen Xers and just 35 percent of baby boomers.
Studies argue that several factors could be impacting the shift in housing trends including the strength of the national economy. But how do you feel about the influence that television has on this trend?

When’s the last time you watched HGTV? Have you noticed the size of homes on their shows? We’ve definitely noticed the dining tables that seat 12 people! We’ve also noted that new census data shows that the median square footage of new homes is up 20 percent since 2000, from about 2,000 square feet to about 2,500 square feet. Add to that the shift in how homes are designed, with a nod to larger, open spaces. Gone are the days of rigid, closed-off eating spaces or television rooms.

What about you? Does size matter?

Check out Investopedia's thoughts: https://www.investopedia.com/articles/personal-finance/111715/5-reasons-retirees-are-upsizing-instead-downsizing-their-homes.asp


Samantha Ochoa, Sales Associate
Watson Luxury Properties
Posted by Roberta Watson on October 30th, 2018 2:05 PM

We love The Lighter Side of Real Estate for a little comic relief in our line of work. However, sometimes they post an article or two we find to be pretty interesting, especially when concepts are related to our unique community’s real estate market.

Take this article for example: 4 Reasons You Should Sell Your Starter Home Right Now.

With the off-season coming to a close, inventory in Ocean Reef has disappeared and prices are about to peak as we approach our in-season hustle. Interest rates are at an all time low, and while Ocean Reef is not known for their inventory of less-than-luxury homes, it is time to trade up. So if you’ve ever had any inkling of desire to spread your wings, it’s time to take action.

Here at Watson Luxury Properties, a member owned, family operated firm at Ocean Reef, we specialize in superior customer service and the one-on-one relationship you can expect from a small business. We absolutely pride ourselves in making the buying or selling of a home a stress-free and enjoyable process for our clients. If you’re ready to upgrade (or downsize), we’re a pleasant phone call away!


Samantha Ochoa, Sales Associate
Watson Luxury Properties
Posted by Roberta Watson on October 5th, 2018 9:53 PM
Did you know that Christina Watson and Samantha Ochoa, both proud Sales Associates at Watson Luxury Properties, are also members of our community’s Academy PTO Board? Christina, President, and Samantha, Treasurer, each have two children that attend the Academy.

  

The Academy at Ocean Reef (located right next to the Member Fitness Center) is a coeducational independent school dedicated to providing the highest quality of education; and home to some truly gifted children that are going to take the world by storm someday.
Now that school is back in session Christina and Samantha have something to ask you:

Do you have a gift to share?

The Academy PTO is looking for talented speakers to visit our school, shake up the classrooms, and INSPIRE our PK-8th grade students. Ocean Reef is home to some of the smartest, most accomplished people on the planet who have graduated with honors, won awards, started companies, followed their dreams and achieved goals many have never dared try one’s hand at! (Oh, don’t be modest. We see you.)

So, what is your life's greatest achievement?  Want to share it with some eager listeners?  We've already got a geologist lined up (can you say VOLCANOES?) and we are looking for a few more.

If you are interested, please contact Christina or Samantha ASAP so they may get you in the lineup. The kids would love to hear from you.

Email: ptoacademyator@gmail.com
Christina’s Cell: 410-599-1550
Samantha’s Cell: 305-910-5296

Posted by Roberta Watson on September 27th, 2018 12:57 PM

Am I the only one that feels like summer temperatures have been hotter than usual? And there’s nothing like feeling hot and uncomfortable to allow yourself to complain just a little. Especially when frizzy hair and armpit stains aren’t the only things to be annoyed about; think: bugs, burned feet, expensive power bills and brown grass.

   

While here at Ocean Reef, we are lucky enough to enjoy the most beautiful swimming pools (including that to-die-for infinity pool) and refreshing ocean breezes to combat the warmth, here we’ve found a fun article about how to nix 9 irritating things about the summer heat; and some of them are surprisingly simple (I’m all about the backyard water feature).

While the first day of Fall is approaching, I’m not sure we’ll be seeing cooler temperatures anytime soon. Enjoy your flip flops, burgee caps and tropical drinks, it’s the dog days of summer.


Samantha Ochoa, Sales Associate
Watson Luxury Properties

Posted by Roberta Watson on August 31st, 2018 9:52 AM

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