Tips To Making A Competitive Offer On A Home

Today's housing market is definitely a seller's market. A buyer has to stand out in order to successfully win a bidding war. Here are five tips to follow in order to set yourself above other buyers.

 

Listen to Your Real Estate Agent

Going at it alone is not a wise move when it comes to finding and purchasing a home. According to an article from Freddie Mac, purchasing a home can be very emotional and a professional can help an emotional buyer stay on track.

“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.”

Understand Your Finances

Know what you can afford before you begin even searching for a new home. It is a must to have a complete understanding of your budget. Again, a professional can help you with this portion of the process. Find a mortgage lender who can get you pre-approved for a loan. Taking a pre-approval letter to a seller shows that you are serious and can follow through with your offer. Forty-four percent of homebuyers in the current market get pre-approved. In order to stand out, you must get pre-approved.

Be Ready to Move Quickly

The average property listed in today's market is receiving more than three offers in the first few weeks of being listed. This data comes from the National Association of Realtors' monthly publication called Realtors Confidence Index. This means as a buyer you need to be willing to make a move on the spot if you find the right home for your needs. Be prepared to submit an offer as quickly as possible.

Make A Fair Offer

Both the buyer and seller want to get the best deal possible. As a buyer, you do not want to overpay for a home, but you also do not want to give a low-ball offer. If a seller receives a low offer, they might question how serious you are about purchasing their property. Your Realtor will be able to guide you in the decision when it comes to your offer price. You will want to make your offer based on the market value of the home.

Be a Flexible Negotiator

A seller has the right to accept an offer, reject it or counter with an offer. In today's market with such little inventory and so many buyers, you must stay flexible with things such as move-in dates, a higher offer price than the home is listed for, or minimal contingencies. When it comes to contingencies, conditions you set that the seller must meet for the purchase to be finalized, Freddie Mac warns to stay firm when it comes to a home inspection.

Even in today's hot market, buyers can find and purchase the home of their dreams for the right price. Remember to always contact a Realtor who can help you along the way.

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More 2021 Buyers Want a Newly-Built Home

 The National Association of Home Builders' Housing Trends Report for the final quarter of 2020 shows a dramatic increase in buyers' interest in new construction homes. The report revealed that 41% of prospective buyers were looking for a newly-built home which is more than twice the percentage reported in 2019.

The NAHB Economics team researches and produces the Housing Trends Report each quarter. The teamsurveys and measures prospective home buyers’ perceptions about the availability and affordability of homes for-sale in their markets. The HTR is produced quarterly to track changes in buyers’ perceptions over time. All data are derived from national polls of representative samples of American adults conducted for NAHB by Morning Consult.

According to the report, Q419 looks very different from Q420 when it comes to the type of home buyers are looking for. In 2019 40% of homebuyers wanted an existing home, this decreased to 30% in 2020. Those buyers who would purchase a new or existing home fell from 41% in 2019 to 29% in 2020. For new homes in 2019, only 19% of buyers said they would just purchase a new construction home while in 2020 buyers who saught only new construction rose to 41%.

As far as the data broken down by generations, 50% of millennials are looking for a new construction build while 50% of baby boomers prefer to purchase an existing home. Out of the Gen X buyers, 48% prefer a new construction home while 38% of Gen Z buyers want to purchase an existing home.

The report also shows a difference in preferences in each region of the country. Most potential buyers in the Northeast (53%) and the West (51%) are looking for a new build. In the South only 33% preferred a new construction home and in the Midwest only 24%.

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New $30M Youth Sports Complex To Be Built In Westwego

 A new 94-acre sports complex is planned to be built in West Jefferson. The project is planned to be completed in 2022 and is located on land purchased next to TPC Louisiana on Nicolle Blvd.

This $30 million youth sports complex will include batting cages, a playground, a shaded pavilion, two

baseball fields and five multi-purpose fields for baseball, softball, flag football and soccer in its first two phases. Future plans will add more fields and amenities. The complex will be used for state and regional tournaments as well as a local youth sports community.

This project has great proximity to the east bank by the Huey P. Long bridge. The project is located in the Fairfield area where the TPC Louisiana golf course, NOLA Motorsports Park, the Churchill Technology and Business Park and Delgado Community College's River City Campus are already located.

The complex will be modeled after the Sports Force Parks in Vicksburg, Mississippi and will be named after the former state Senator John Alario. The project will be designed by Duplantis Design Group, managed by Legends and Circular Consulting and a construction firm will be hired this year. The Louisiana Stadium and Exposition District (LSED) purchased the 148 acres and plans to get underway in the third quarter of 2021.

"This is meant to be an economic driver for the region," Jefferson Parish Recreation Director Mario Bazile said. "It’s a real push to be a regional player in travel sports.”

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Mortgage Refinance Demand Up 20% in 2021

 

The beginning of 2021 has been an uptick in mortgage rates. This upward climb has many rushing to take advantage of the record low rates. According to Mortgage Bankers Association's seasonally adjusted rate index, mortgage applications to refinance on a home loan have risen 20% last the first full week in January compared to the week before.

“Booming refinance activity in the first full week of 2021 caused mortgage applications to surge to their highest level since March 2020, despite most mortgage rates in the survey rising last week,” said Joel Kan, MBA’s associate vice president of economic and industry forecasting. “The expectation of additional fiscal stimulus from the incoming administration, and the rollout of vaccines improving the outlook, drove Treasury yields and rates higher.”

According to the report, the average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($510,400 or less) increased to 2.88% from 2.86% last week for loans with a 20% down payment. This makes the current rate 99 basis points higher than a year ago.

“For now, an air of mortgage rate invincibility and persistent setting of new record lows has been replaced by a healthy respect for what may be the first stage of a rising rate environment, the first time we’ve seen such a thing since 2018,” said Matthew Graham, chief operating officer at Mortgage News Daily.

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What You Shouldn’t Do After Applying for a Mortgage

Applying For a mortgage is a big part of purchasing a new home. This can be an exciting yet daunting task.  Here are a few things you shouldn't do once you have applied for a mortgage.

Speak to your banker or lender before depositing cash into your bank account.  You do not want to deposit a big chunk of cash into your account all of the sudden. During the mortgage process, lenders need to be able to track where your money is coming from and cash is not easy to track. You can deposit cash during your mortgage process but you will need to discuss how to document your transactions with your lender.

Put big purchases on hold until after the application process. Purchasing new furniture or a new car is a big obligation and will bring monthly payments. Lenders take in all monthly expenses when qualifying you for a loan. If new obligations are created then you will need to be reviewed again. A higher debt-to-income ratio will have to be adjusted. Lenders will tell you that higher ratios equal riskier loans.

Hold off on any co-signing for anyone on their loan. Co-signing is just like obligating yourself to someone else's loan. These obligations will also make you have a higher ratio. Although you are just co-signing, a lender looks at this as another expense you are responsible for.

Do not change bank accounts. One of the steps on a mortgage application is to list your bank accounts. Lenders need to be able to see where your money comes from and where it goes. If you were to change bank accounts during the process, this can hinder a lender from sourcing and tracking your assets. If you have no other option but to change bank accounts, speak to your lender.

Now is not the time to apply for a new credit card. Whenever a financial organization runs your credit report, your FICO® sore is affected. The higher your credit score the better interest rate a lender can offer you. Lower credit scores will not only determine your interest rate but can also hinder you from being approved for a mortgage.

Keep your current accounts open. There is a misconception that less is best when it comes to open credit accounts. This is not true, in fact, it helps to have a long list and depth of credit history. Closing a credit account can actually create a negative impact on your score.

Remember to keep an open line of communication with your lender throughout your mortgage application process. If you have a change in income, job or have to move things around you should share all those things with your lender. The best plan is to fully disclose and discuss your intentions with your loan officer before you do anything financial in nature.

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Three Things Home Owners Desire for Quality of Life at Home

 

The pandemic has shifted the things we want in a home. Homebuyers are looking for comfort, wellness and efficiency. According to the 2020 Green Smart Market Brief, high-performance homes are on the rise.

A good resource for consumer's high-performance must-haves when it comes to building or remodeling a home can be found in National Green Building Standard® (NGBS)'s Bronze Cookbooks. The NGBS Bronze cookbooks give a roadmap to what is used and incorporated into a NGBS Green Certified home.

Below are the top 3 home qualities customers are looking for in today's housing market.

Customer Want: Comfort	High-Performance Strategies
No drafts	Continuous building envelope (confirm with a blower door test) Weatherstripping around windows and doors
Consistent indoor temperatures	Smart thermostat Weatherstripping around windows and doors Continuous building envelope (confirm with a blower door test) High R-value insulation in floors, walls and ceilings
Quiet	ENERGY STAR appliances Added drywall Acoustic panels and sealants Solid core doors

 

Customer Want: Wellness	High-Performance Strategies
Healthy indoor environment	Balanced ventilation Fresh air intakes Kitchen range hood that vents directly outdoors Bathroom exhaust fans HVAC filtration — high-efficiency particulate air (HEPA) or high MERV rating Low volatile organic compound (VOC) materials
No odors	Kitchen range hood that vents outdoors Balanced ventilation Low VOC materials
No mold	Bathroom exhaust fans that vent outdoors HVAC systems with sensors and automation Moisture-resistant barrier in building envelope Leak detection system
Natural light	Double- or triple-pane window with lower solar heat gain coefficient (SHGC) and U-factors

 

Customer Want: Efficiency	High-Performance Strategies
Lower energy bills	Smart thermostat High R-value insulation in floors, walls and ceilings Continuous building envelope (confirm with a blower door test) ENERGY STAR appliances
Lower water bills	WaterSense-labeled fixtures Minimize pipe runs (distance from water heater to fixtures) Leak detection system Landscaping with drought-tolerant plants Smart irrigation systems

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West Bank to New Orleans Transportation Soon to Get Easier

A bill signed by Governor Jindal gives the green light to two projects which could transform transportation from the West Bank to New Orleans into a simple, easy ride for those residents commuting from places such as Gretna, Marrero, and Harvey to the Central Business District (CBD) to work everyday.  Currently, the ferry boats that dock at Canal Street and Algiers Point and Chalmette and Lower Algiers are so old that they are constantly breaking down and have the potential for permanently being put out of service because of their ages. One of these ferry boats was built in 1937.  The first project approved by the governor was to design and build these boats.  Construction will take approximately 12 months for the first boat and  6 months for the next boat

built after that.

“It gives us the opportunity to use all the procurement options now available to speed up the process to get those ferries built,” Transdev Vice President Justin Augustine said Tuesday. “We talked to boat builders…the feedback was clearly they could get the first built in 12 months and a second one within six months after that.”

Another transportation project that will alleviate stressful travel for those residents that live in Belle Chasse was the fastrack approval of a design / build process for a new bridge that will replace the Belle Chasse Tunnel underneath the Intercoastal Waterway.  Because state law prohibits a design and build process at the same time, in the hands of one contractor, special approval had to be given by the legislature for this caveat.  Similar measures were proposed and passed after Hurricane Katrina to move needed construction projects through to the approval stage at a faster pace.  Overall, through the construction of these two necessary modes of transportation, homeowners on the West Bank will soon have new ways of traveling the short commute to New Orleans while still enjoying the “away-from-the-city” life of living in Jefferson Parish.

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