Things Home buyers do that turn sellers Off

On today’s market, every savvy seller wants to know what turns buyers off, so they can get their homes sold as quickly as possible, for as much as possible.
But buyers, take note – there is a minefield of seller turn-offs you can trigger that hold the potential to keep you from getting the home you want at the best price and terms, or to unnecessarily complicate dealings with your home’s seller.
Lest you think all of today’s sellers are under the gun and will just put up with whatever behavior buyers dish out, be aware that there are still many multiple offer situations in which buyers have to compete with each other to get a home – buyers who trigger these turnoffs tend to lose in those scenarios. Also, avoiding these seller turnoffs can create a transactional environment of cooperation and avoid things turning adversarial. That, in turn, can empower you to score a better price, get extra items you want thrown into the deal, and even negotiate more flexibility around your escrow and move-in timelines – all perks that can make your life easier and your budget go further.

For sellers, these turnoffs pose the potential of irritating you out of an otherwise good deal – maybe even the only deal you have!

Here’s a few of the most common buyer-perpetuated seller turnoffs, with tips for sellers on how to keep an emotional (and economic) even keel, even if your home’s buyer makes some of these waves:

1. Trash-talking. Trash-talkers are the home buyers who think they’re going to negotiate the list price down by slamming the house, telling the sellers how little it is really worth, how the house across the street sold for nothing, why the school on the corner should make them desperate to give the place away, etc. This strategy never works; in fact, when you attack a seller and their home, you only cause them to be defensive, and think up all the reasons that (a) their home is not what you say it is, and (b) they shouldn’t sell their home to you!

Sometimes this happens with buyers who actually love a house and just walk around it fantasizing about all the ways they would customize it to their tastes while a seller is there.

Sellers: avoid being at home while your home is being shown.
Buyers: save your commentary for your agent; if you do encounter the seller in person keep your conversation respectful and avoid critiquing the house or the list price.

2. Being unqualified for mortgage financing. When a seller signs a buyer’s offer, most often the seller agrees to effectively pull the home off the market, forgoing other buyers who might be interested. As such, the only thing worse than getting no offers on your home is getting an offer, getting into contract, then having the whole thing fall apart when the buyer’s loan falls through – especially if that could have been predicted or avoided up front.

Sellers: Work with your agent to vet your home’s buyers’ qualifications, including their loan approval, down payment and earnest money deposit – before you sign a contract. It’s not overkill for your agent to call the buyers’ mortgage pro before you sign the contract and get a level of comfort for how robust their qualifications are.

Buyers: Get pre-approved. Seriously. And make sure that you don’t buy a car, quit your job, deposit lottery winnings or do any other financial twitchery between the time you get loan approval and the time you close escrow on your home.

3. Making unjustified lowball offers. No one likes to feel like they are being taken advantage of. And sellers generally know the ballpark amount that their home is worth, as well as what they need to sell it for to get their mortgage paid off. Yes – the price you pay for a home should be driven by its fair market value, rather than the seller’s financial needs, and deals are more available in a market like the current one, in which supply so vastly outpaces demand. But just throwing ultra-lowball offers out at sellers hoping one will hit the spot is not generally a successful strategy, especially if you really, really want a given property.

Sellers: Don’t get overly emotional about receiving a lowball offer; counter at the price you and your agent decide makes sense based on the total circumstances, including your motivation level, recent comps and the interest/activity level your listing is receiving.

Buyers: Work through the similar, nearby homes that have recently sold (a/k/a comparables) before you make an offer to factor the home’s fair market value into your offer price – also factor in how much you want the place, too.
Don’t be amazed if you make an offer far below asking, and don’t get a response.

4. Renegotiating mid-stream. Sellers plan their finances, moves and – to some extent – their lives around the purchase price a buyer agrees to pay for their home. If you get into contract to buy a home, find out during inspections that costly repairs need to be made, then propose a lower sale price, repair credit or even actual repairs to the seller, that’s sensible and fair.

But if you were aware that the property needed a lot of work before you made an offer on it, then you come back asking for worth of credit or price reductions midstream, expect the seller to cry foul. And holding the seller up two weeks into the transaction because you caught a case of buyer’s remorse? Not cool, and not likely to foster the spirit of cooperation you may need to get your deal closed.
Sellers: avoid mid-stream price renegotiations by having a full set of inspection reports and repair bids at hand when you list your home.

Buyers: try to avoid renegotiating the entire deal unless you get some major surprises at your inspections or inflating small repairs to try to justify a major price cut.

5. Misleading or setting the seller up. Being misled by listing photos or very fluffy property descriptions was high on the list. The same goes for sellers.Offering way over asking with the plan to hammer the seller for a reduction when the house doesn’t appraise at the purchase price? #LAME Making an as-is offer planning the whole time to come back and ask for every penny ante repair called out by the inspectors? Lame squared.

Sellers: If you get multiple offers and are tempted to take a sky-high one or one that claims to be all cash, consider requesting proof that the buyer has sufficient funds to make up the difference between what you think the home will appraise for and the actual sale price, and statements showing the cash truly exists.
Buyers: You have to tell the seller exactly what your top dollar is, but making offers with terms designed to intentionally mislead is really, really bad form – and can result in losing the home entirely if and when your bluff gets called.

USA Real estate: It’s time to buy again

Detroit – A Unique Opportunity

I’m sure all of you that read our newletter will know all about our Detroit program and will of likely received our investment prospectus.

We first highlighted the Detroit opportunity over 18 months ago and have since sourced over 90 properties for new and experienced investors within our program, which is hardly surprising given that it ticks every box we look for in an investment.

Key highlights include:

  • Can you buy below current market value?
  • What is the likelihood prices will increase over the next 5 years?
  • Local affordability – are locals able to buy and rent here?
  • What rental yields can I expect?
  • Is financing available?

The answer to all of these five questions is of course YES. Detroit offers investors a window of opportunity in which to buy property significantly below market value, often 50% whilst retaining high rental yields by taking advantage of the government’s HUD scheme.

A market leading product? Definitely!

We can offer financing, guaranteed for all our investors with a low, fixed rate of interest of only 3.95%.  Currently we are the only company offering financing.  And everybody qualifies.

Our properties start from $36,000, at least 15% cheaper than any other UK company.

A minimum 13% NET yield on our program.  Often higher, we only source properties that will give our investors at least this.

Watch us discussing our Detroit investment opportunity at the recent Bristol seminar Part 1

Key Points:

Low prices. 3 & 4 bedroom, fully refurbished houses from $36,000 – often 50% under market value.

High demand for rental property. Currently there are over 9,000 families on a waiting list for good rental property.

GUARANTEED rents. We focus on tenants on the HUD scheme (Housing and Urban Development.) The government will pay the rents directly to you every month. We now offer investors a 12 month maintenance guarantee as well.

Predicted capital appreciation. The biggest car manufacturers have been granted billions to reinvest in the city’s car industry creating thousands of new jobs for the local workforce.

Available mortgages. We can provide a very attractive level of financing GUARANTEED for every one of our investors, with fixed rates from 3.95%. We are currently the only company in the world able to provide financing.

Rental yields. As ex-homeowners have turned to rented accommodation demand has soared. A typical 3 bedroom home can be rented for over $800 a month. This means an average investment through us gives a whopping 13% NET yield – minimum!

Positive cash flow. Why else do we invest? Cash is king in this business and our properties give the investor guaranteed positive cash flow every month.
Currently, we are taking 2-3 reservations weekly.  If you’d like to talk to us about this opportunity, please complete your details here on our website or call us on (44) 0845 438 0634

$221 million Cobo revamp to add river view, replace arena in downtown Detroit

Cobo Center officials have unveiled details of a long-awaited, $221 million facelift of the city’s main convention center that includes panoramic views of the Detroit River and sweeping changes to its façade.

The bond-financed project will also mean the demise of Cobo Arena, the legendary but aging concert venue for acts from KISS to Jay-Z.

Two years after Detroit officials ceded oversight of the 51-year-old facility, regional leaders were to gather today in Cobo to unveil artist renderings of the project that is expected to begin in July and last until 2014. The work is the final stage of a $274 million project to revamp the 2.4 million square-foot facility that was last updated in 1989.

One highlight of the renovation is a three-story glass wall that will surround the light-gray building and provide a view of the Detroit River, as well as access to the Detroit RiverWalk from the building.

Cobo Arena will be replaced with a new 40,000 square-foot ballroom with meeting room beneath.

“It’s going to be a major change” said Larry Alexander, chairman of the Detroit Regional Convention Facility Authority. “It’s more open and accessible.”

Alexander said the renovation will make Cobo Center more inviting.

“It’s truly going to shine when you come down and look at the building,” he said. “We’re making use of what we have and better use of the footprint we have available to us.”

The announcement follows years of complaints by the center’s major tenant — the North American International Auto Show. Organizers spoke of leaving because they considered the 700,000 square-foot of exhibit space too small. Leaks and heating problems bedeviled exhibits, and some car manufacturers left the show that is said to generate $500 million to the southeast Michigan economy.

The improvements include new hydraulic systems powerful enough to lift cars so they can be exhibited on the second level of Cobo Center.

“We’re looking for space always. Things are getting better and better. Porsche came back, and Nissan is coming back in 2012. Everyone wants space,” said Jim Seavitt, owner of Village Ford in Dearborn and president of the Troy-based Detroit Auto Dealers Association that sponsors the January show. “We’ve got a space problem. We’re trying to make everybody happy.”

Cobo became a flashpoint for city-suburban divisions in 2008 and 2009, when the City Council initially balked at transferring control of the facility to a regional authority. Eventually, the city relented, and a five-member authority has overseen operations since September 2009. The first two phases of the renovations fixed the roof and other problems.

Named for former Detroit Mayor Albert Cobo, the center is the 19th largest of its kind in the nation, but its reputation has caused some conventions to look elsewhere. Alexander said the project will help bring back conventions and exhibitors.

The $221 million renovation project also includes:
• The creation of a new three-story glass atrium “signature space” for Cobo Center that links the main floor of Cobo with a new entrance. The glass atrium surrounds most of the building, allowing for a view of the Detroit River and linking the facility to the city’s RiverWalk.

• Major renovation to Cobo’s primary façade facing downtown, which will include a high-tech, computer-generated “media mesh” billboard announcing current and future conventions and other bookings.

• Reconfiguration of meeting and breakout rooms along Cobo’s south side, the area facing the Detroit River. Most of the exterior walls of the meeting and breakout rooms will be replaced by high-efficiency glass walls.

• Twenty percent increase in parking spaces.

• Construction of an additional loading dock ramp to street level.

• Additional electrical provision capabilities in exhibition areas.