Setting up an MLS Search

In this fast paced market, many of the homes that are priced well, in a good location and in decent condition can go within hours!!! I recently viewed a home with my client that had 25 showings on the first day, and they were in contract before the day was even over.  Daunting process for many buyers!  In the case of this home, had we waited just a day, we would not have had a shot at all.  For this reason, it is imperative that the modern buyer is set up on a search of the MLS through his/her real estate agent to get up to date listing information.  Many if not most of the real estate websites out there, get their information directly from the MLS.  Some sites are good at retrieving this information fast, but some are delayed or inaccurate, particularly if there has been any changes made within the MLS (clerical error for example).   As an agent, I like to set up my potential buyers on a search specific to the parameters they are looking for in a home when beginning the home buying process.  Location, size, interior and exterior features and price are some of the parameters used to identify a potential property.  The search can be set up so that alerts are made immediate to the buyer and agent when a new listing with the parameters set up, goes on the market.  It can be delayed, and modified at any time as well.   This up to date information can be used to get into a potential house the day it is listed in some cases.  Again, getting in quickly may be an imperative part of the process, giving my buyers the edge.

Secondly,  some homeowners may wish to set up an MLS search of their immediate neighborhood.  This  may be important for anyone considering selling currently or at some point in the future by allowing them to view new listings and sales in order to get an idea of market value for their immediate neighborhood.  However, it is important to keep in mind that there are many factors that go into pricing a home, not just neighborhood sales.  For example, the location of the home (busy/quiet street, cul de sac?), layout, condition, market conditions,  and relative size of the home are just some  other factors that may determine home price.

As always, feel free to contact me with any questions, jenny.fusco@herrealtors.com

HER REALTORS,  the Jeannine Ryan Smith Team

 

 

EARNEST MONEY?

I just left our monthly sales meeting where we had a lively discussion regarding the use of earnest money.  I have always suggested to my buyers that they consider including earnest money in their offers to make it more enticing to the seller.  Particularly in this market of multiple bids per home, and average day on market under 2 digits, buyers need to show that they have some “skin in the game” by including some money.  In one case, an agent revealed that she had seen a buyer add a $5,000.00 earnest money deposit NON Refundable unless received back at closing, with money being forfeited to the seller in any other circumstance.  Sounds enticing to a seller, but a bit scary for the buyer.  As you can imagine,  it won them the home in the bidding war, and kept them in the game until the end.  Would the modern buyer really consider forfeiting their deposit unless the property closes in order to make a stronger offer? In todays difficult market, maybe that is a strategy that we will see a little more.

In any case, any Earnest money deposit shows the listing agent, that the buyer is a serious buyer, and is planning on going to closing unless something is seriously wrong with the house, particularly during inspections, or perhaps financing falls through.   One agent suggested he would not even consider an offer unless it had an earnest money deposit.

One agent in the room however, suggested that he does not always include an earnest money deposit unless he is in a multiple bid situation.  Another suggested that it depended on where you were purchasing in the city as to how likely an earnest money deposit would be included or expected, but that the percentage of offers including it was certainly on the rise everywhere.

Ok, so maybe we need earnest money in todays market, but how much?  Most concurred $1,000.00 to $2,000.00 seemed to be average.  Of course, there will always be higher and lower numbers depending on the price of the home, and the interest.  I have even suggested $500.00 for some properties, and it was accepted.  If the seller wanted more, they would counter back, I figured.

What about cash offers?  They too, should offer up an earnest money deposit most agents agreed.  After all, they still need to verify funds, and the inspections could fail (or other possible contingency within the contract if applicable).

Any real estate questions?    Contact me at jenny.fusco@herrealtors.com

 

5 Things I’ve learned about buying in Franklinton

 

I’ve heard much ado about Franklinton lately.  Its dubbed to be the next Short North, or “art district”.  There is some renovation going on in the area by big and small investors,  but much of it has yet to see any rehabilitation, and can look pretty scary when driving through. As I learned a while ago about neighborhoods, they all swing on a pendulum from up and coming, to peak, to decline, and back again.  Franklinton seems to be at its peak of decline on some streets, but on the upswing back again on other streets.  My children’s school even has collection bins for some of the Franklinton area schools, and we hear about the hard times many of its residents are having.  Nonetheless, I have a client that I am working with, who is young, smart, ambitious and wants to make a purchase in Franklinton in order to get in on the ground floor, so to speak.  We have been searching in Franklinton for at least 6 weeks now, and have yet to make a purchase.  In our search, here is what we have found:

1. The old adage is true, “cash is king”.  When trying to purchase in an area that has values still under the city’s average price, and a neighborhood dubbed to be “up and coming”, properties under 100,000.00$ go very quickly if they are in at all decent condition, and you will be up against many other buyers, particularly cash investors.  BE PREPAIRED!  If you are not a cash investor, and must finance your purchase,  you must be prepared to submit a very appealing offer, such as omission of contingencies.  If not, you may have to get in line to see if the cash buyers financing is verified.  It is very hard to compete with cash…
2. Act Quickly.   When you are looking in this area, the homes go so quickly that if you wait even a single day, or in some cases hours, you will miss it.  I showed one property with 25 showings on the first day.. The seller accepted an offer before the day was even done, the late showings didn’t even get a chance.   Set up a search for “ASAP”, so that the moment it goes live, you get an alert.  Try to see it that day, as early as possible.  Better yet, try to work with your agent to find a pocket listing through word of mouth, or professional contacts. Some properties go onto the MLS in “pending” status from the get go.

3.  Do a CMA.  Have your agent run a market analysis for each neighborhood, and  street.  The home prices can vary widely by street and location.  Know what to offer, and what your maximum amount you would be willing to pay for the house, regardless of the other buyers.

4.  Location matters!  The perimeter streets are busier, particularly on Central Avenue, Sullivant Avenue, Town, and Broad Streets.  There are pockets of rehabilitated area’s. Drive around the immediate neighborhood to see each street, and what is being renovated.

5.  Make use of public information on the web. There are many websites now dedicated to searching neighborhoods for demographic information, crime, etc…  Area’s that are being rejuvenated are not without crime, and in some cases violent crime. Be aware of your surroundings, and of what’s going on in the neighborhood.  If you see a policeman strolling the streets, don’t be afraid to ask about the street.  Talk to neighbors, they can give better information than you can find on a website.

 

Need help searching for a property?  I would be happy to set you up on a search with your specific criteria to make the search easier.   jenny.fusco@herrealtors.com