Best Deals have been above the list price

Having sold homes for over 25 years, and selling over 100 homes per year for the past 15+ years, I would tell you that I have seen a lot of real estate deals and some of the very best deals my buyers have received have been purchased above the listing price.   With the high volume of foreclosed homes on the market, it is not uncommon for a bank owned property to be listed well below the true value of the home.   Time and again we will see a new listing come to market, and buyers swarm the property like piranha’s after fresh meat.

Highest and Best offers

As each buyer takes a crack at the property, the listing agent sends out a proclamation of “Highest and Best Offers Due” with some random deadline and this home sale has suddenly turned into a sealed bid auction.   Each buyer then measures the value of the property against their desire for a deal and submits their best offer.

What to Offer?

When competing for a property in a multiple offer situation, I recommend that buyers balance the price they would feel comfortable purchasing a home for compared to a price they are ok letting it slip away.   When a buyer finds out they were outbid by $1,000 I don’t want to hear them say “I would have paid more.”  No regrets in this business.   You also don’t want to get caught up in the competition and submit an offer that exceeds the true value of the home or your budget.

Still an opportunity for a great deal

Not every multiple offer is an opportunity, but some are.  Knowing how to navigate the multiple offer process is a skill that is not possessed by all Realtors, but an expertise that can prove invaluable.  It is important to know how to properly identify the opportunities and evaluate the true value of a property.   There are many additional factors that go into a contract which can make your offer more or less appealing in a multiple offer situation, so make sure that you have the right agent on your side of the transaction when looking for a home.

5453 Pompano Drive ,Unit #D, Minnetonka, MN 55343 (MLS # 4108954)

Beautifully appointed 2BR/2BA upper lvl condo w/wooded views! Kitchen w/granite, hardwood flrs, & new appliances. Living Rm w/fireplace walks out to deck, Master w/private bath, 2nd BR & updated full bath. New carpet, new H2O heater, fixtures & much more!

Property Type(s): Residential, (CC) Manor/Village

Price History

Schools

Additional Details

Features

Location

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with RE/MAX Results

(view all details for MLS #4108954)

1. $274,900 : 1494 158th Lane NW, Andover
   
   5 beds, 2 full, 2 part baths

   Home size: 3,250 sq ft

   Lot size: 13,068 sq ft

   Year built: 2000

   Listed with RE/MAX Results
   
2. $184,900 : 8731 Goodhue Street NE, Blaine
   
   4 beds, 1 full, 1 part baths

   Home size: 1,828 sq ft

   Lot size: 23,958 sq ft

   Year built: 1988

   Listed with RE/MAX Results
   
3. $224,900 : 5585 Odean Avenue NE, St. Michael
   
   5 beds, 2 full baths

   Home size: 3,296 sq ft

   Lot size: 1.08 ac

   Year built: 1994

   Listed with RE/MAX Results
   
4. $249,900 : 9706 Evergreen Avenue N, Brooklyn Park
   
   5 beds, 2 full, 2 part baths

   Home size: 2,584 sq ft

   Lot size: 16,552 sq ft

   Year built: 1999

   Listed with RE/MAX Results
   
5. $249,900 : 1017 85th Court N, Brooklyn Park
   
   4 beds, 1 full, 2 part baths

   Home size: 2,684 sq ft

   Lot size: 11,325 sq ft

   Year built: 1985

   Listed with RE/MAX Results
   
6. $259,900 : 2318 Taft Street NE, Minneapolis
   
   3 beds, 1 full, 2 part baths

   Home size: 2,684 sq ft

   Lot size: 6,534 sq ft

   Year built: 1940

   Listed with RE/MAX Results
   
7. $130,000 : 12033 Mississippi Drive N, Champlin
   
   4 beds, 1 full, 1 part baths

   Home size: 1,784 sq ft

   Lot size: 27,007 sq ft

   Year built: 1950

   Listed with RE/MAX Results
   
8. $299,900 : 13363 44th Court NE, St. Michael
   
   3 beds, 2 full baths

   Home size: 2,096 sq ft

   Lot size: 12,196 sq ft

   Year built: 2001

   Listed with RE/MAX Results
   
9. $149,900 : 9345 Earl Street, Golden Valley
   
   3 beds, 1 full, 1 part baths

   Home size: 1,704 sq ft

   Lot size: 8,276 sq ft

   Year built: 1964

   Listed with RE/MAX Results
   
10. $239,900 : 4280 Larch Place N, Plymouth
    
    3 beds, 1 full, 1 part baths

    Home size: 1,836 sq ft

    Lot size: 20,037 sq ft

    Year built: 1982

    Listed with RE/MAX Results
    

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Not a foreclosure or Short Sale! Quick Possession possible! Price to sell-under tax market value! 4BR/2BA home on treed lot has fenced yard and shed, hardwood flrs, ceramic tile, vaulted living rm w/fireplace, family rm w/dry bar, whirlpool bath.

Property Type(s): Residential, (SF) Split Entry (Bi-Level)

Price History

Schools

Additional Details

Features

Location

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with RE/MAX Results

(view all details for MLS #4101320)

Nothing for you to do, except move in! This absolutely stunning 2BR/2BA townhome is in the heart of Edinburgh! Vaulted ceilings, skylights, ceramic tile, Sun Room w/door to private patio w/shade trees, exquisite Master Ste w/walkin-in closet & 3/4 bath.

Property Type(s): Residential, (TH) Quad/4 Corners

Schools

Additional Details

Features

Location

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with RE/MAX Results

(view all details for MLS #4078676)

Stunning 6BR, 4BA 2-sty home w/over 3500 fin sq ft, Mstr Ste w/Whrpl Bath, 4BR on one lvl, Laundry Rm doubles as a Hobby Rm, Gourmet Ktch, Main flr Family Rm, Sauna Rm, Maple hrdwd flrs, Granite, 6-panels drs, & Sauna. Beautiful corner lot w/fenced yard!

Property Type(s): Residential, (SF) Two Stories

Schools

Additional Details

Features

Location

Listing information deemed reliable but not guaranteed. Read full disclaimer.

Listed with RE/MAX Results

(view all details for MLS #4092210)

Traders are thinking that it could be due to US debt limit levels as well, but that has certainly not been a stated reason.
Just the anticipation of the added forthcoming supply pushed traders to a sell mode sending mortgage backed security pricing down & rates up and adds to the continued volatilty that we have seen over the past several weeks.

This will pressure mortgage rates up.  Why? because of supply and demand. Adding more securities to the market increases the supply an din order to “sell” the new mortgage backed securities they will need to offer a higher return to attract investors.

What does this mean for you? If you are considering a move, I would do it sooner than later. Rates are still below 5.0% and now is the time buy and to take advantage of these rates!

This is important to know because it will increase the homeowner’s monthly payment.
A few conditions:
• The Upfront Mortgage Insurance Premium (UFMIP) remains 1.00%.
• The Annual MIP increase only applies to FHA loans. Fannie Mae and Freddie Mac conventional loans do not have this increase.
• This increase applies to loan terms more than 15 years in length and when the loan-to-value (LTV) ratio is greater than 95%; the Annual MIP is lower when the loan-to-value ratio is less than 95% or when clients take out a 15-year loan term (call me for details).
• HUD does not allow case numbers to be pulled prior to receipt of a fully executed purchase agreement and application.

So, what does this mean to a typical buyer. If you are buying a home with a $200,000 FHA mortgage, your montly mortgage insurance premium will go up about $42 per month. If you are buying a home with a $100,000 FHA mortgage your monthly mortgage insurance premium will go up about $21 per month. To avoid the higher MIP, you would have to have a signed purchase agreement and have your lender obtain an FHA case number prior to April 18, 2011.

If you have questions about this, or want help avoiding the increased MIP, please contact a member of the Perkins Team with RE/MAX Results at 763-591-6066 or Perkins@SuburbanHomes.com

The IRS will raise the thresholds from $5,000 to $10,000 owed back taxes. In addition,  taxpayers who make payment arrangements with the IRS will be able to have their lien withdrawn.  The IRS also announced they have broadened their “Offer in Compromise”  program which allows taxpayers to negotiate a tax reduction. In order to qualify, an individual must demonstrate  that they have exhausted all available resources (Taxpayers with annual incomes up to $100,000 can now participate). For further information, please contact an IRS office or website.