REAL ESTATE

Eight ideas to sweeten the deal and give your offer the edge

In a tight real estate market a desirable property gets a lot of attention. If you want yours to be the best looking offer on the block here are eight ideas to dress it up:

1. Make the right money offer. There’s no way to put lipstick on a pig in real estate. The right offer is first and foremost the right money offer. That doesn’t mean it has to be the highest to the last cent. Other factors might come into play, but it should be in the right financial neighborhood.
   
   Your agent will compare sales prices and values of similar homes in the area and come up with a starting point.
   
   
2. Money talks; pay cash if you can. Sellers love cash deals because they are less likely to fall through. If you are competing with an investor, you might find yourself up against a cash offer. If you can stack your offer with some cash, you reassure the seller that the deal will go smoothly and financing will be easier.
   
   
3. Make your offer clean and easy. Give the sellers a chance to get their price, or as close to it as you can manage with little effort. Resist asking for improvements that cost the seller money and time.
   
   
4. Sweeten the deal by offering to cover closing costs.
   
   
5. Give the sellers their choice of closing dates. If you want the property, stay flexible.
   
   
6. Offer to let the seller choose a move-in day if you can. If they need to remain in the house for a month after closing, offer to “rent back” after the closing which means they will be your temporary tenant.
   
   
7. Show you are a serious buyer with a stack of earnest money. If you have to back out of the offer for any reason allowed by the contract or state law you’ll get your money back.
   
   
8. Share the love! If you love the house and can see your family in every nook and cranny tell that to the sellers in a letter. Remember that selling a house is an emotional thing. Even when people want to sell, they still have a lot of love, memories and dreams left in their home and their neighborhood. You might tell them what features of the home will especially work for your family.
   
   Sharing the love is not only for competitive situations. If the sellers love your family and want to see you in the house, they might just be able to wait until you get a buyer for your house, if that is necessary, as well as to iron out other details that delay a deal.
   

New mortgage program has fewer requirements

To decrease their monthly payment by about one-third, borrowers with loans backed by Fannie Mae or Freddie Mac can have their interest rates recalculated and their mortgage terms extended to 40 years. Under the Streamlined Modification Initiative, they must:

• be 90 days to 24 months delinquent on their mortgages,
  
  
• have a first mortgage that is at least 12 months old,
  
  
• the amount they owe must be at least 80 percent of their home's value, and
  
  
• they must make three trial payments on time.
  

This new option gives delinquent borrowers another way to avoid foreclosure, according to the Federal Housing Finance Agency which regulates Fannie and Freddie.

Previous programs have required borrowers to provide financial income and hardship documentation. That created bottlenecks for mortgage services and limited the effectiveness of the programs. These documents are not required under the new program. Borrowers who owe more than their homes are worth (about one in five homeowners) will pay no interest on up to 30 percent of their unpaid balance.

The Streamlined program began on July 1, 2013 and will end Aug. 1, 2015. By July 1, 2013 mortgage servicers must identify delinquent borrowers and send them a letter offering modification.

We are a married couple in our 20s and we would like to buy a house. Our friends think it is way too difficult to buy a house now. But we would like to try. What does it take?

You might not know it, but you are a part of the huge, new emerging generation called the Millennials who are just becoming old enough to make major life decisions like buying a house. You're going to find some challenges out there, but you're going to find some good deals, too.

You are smart for thinking ahead: If you can buy now, your home will be paid off in your 40s. Assuming you stay married and employed, you will be in a good position to accumulate wealth and security during your life.

This is a great time to buy – if you qualify. Interest rates are favorable and prices are right. But, you must have a very good credit score, be established in your careers and have low debt. This combination of factors, according to some studies, often disqualifies the Millennial generation.

Market researchers say there is strong demand for homes among Millennials. Millennials are the largest demographic in the nation's history (90 million strong), even larger than the Baby Boomers. One study by PulteGroup and Better Homes and Gardens Real Estate surveyed Millennials and found they're not much interested in luxury, but are more likely to want technology and flexible space.

Right now, many Millennials can't buy a house because their student loan debt is too high. Others are new in their careers and have not established credit. Finally, there is the issue of the down payment. Conventional loans often require a hefty 10 percent down. But first time buyers can often find a program that requires only 3 percent down.

If you have no student debt, or you can afford whatever debt you have, if you have a stable job and if you have accumulated a down payment, I would surely advise you to buy a home now.

© 2013 TLC Magazine Online, Inc.