How often are homes sold above asking price?

Fielding a Lowball Purchase Offer on Your Home

Consider before you ignore or outright refuse a very low purchase offer for your home. A counteroffer and negotiation could turn that low purchase offer into a sale.

                                        

When you receive a low offer on your house, the best response is to counter with a price you're willing to accept.

You just received a purchase offer from someone who wants to buy your home. You’re excited and relieved, until you realize the purchase offer is much lower than your asking price. How should you respond? Set aside your emotions, focus on the facts, and prepare a counteroffer that keeps the buyers involved in the deal.
 

Check your emotions
 

A purchase offer, even a very low one, means someone wants to purchase your home. Unless the offer is laughably low, it deserves a cordial response, whether that’s a counteroffer or an outright rejection. Remain calm and discuss with your real estate agent the many ways you can respond to a lowball purchase offer.
 

Counter the purchase offer
 

Unless you’ve received multiple purchase offers, the best response is to counter the low offer with a price and terms you’re willing to accept. Some buyers make a low offer because they think that’s customary, they’re afraid they’ll overpay, or they want to test your limits.
A counteroffer signals that you’re willing to negotiate. One strategy for your counteroffer is to lower your price, but remove any concessions such as seller assistance with closing costs, or features such as kitchen appliances that you’d like to take with you.

Consider the terms

Price is paramount for most buyers and sellers, but it’s not the only deal point. A low purchase offer might make sense if the contingencies are reasonable, the closing date meets your needs, and the buyer is preapproved for a mortgage. Consider what terms you might change in a counteroffer to make the deal work.

 

 

Review your comps
 

Ask your real estate agent whether any homes that are comparable to yours (known as “comps”) have been sold or put on the market since your home was listed for sale. If those new comps are at lower prices, you might have to lower your price to match them if you want to sell.

Consider the buyer’s comps

Buyers sometimes attach comps to a low offer to try to convince the seller to accept a lower purchase offer. Take a look at those comps. Are the homes similar to yours? If so, your asking price might be unrealistic. If not, you might want to include in your counteroffer information about those homes and your own comps that justify your asking price.

If the buyers don’t include comps to justify their low purchase offer, have your real estate agent ask the buyers’ agent for those comps.
 

Get the agents together
 

If the purchase offer is too low to counter, but you don’t have a better option, ask your real estate agent to call the buyer’s agent and try to narrow the price gap so that a counteroffer would make sense. Also, ask your real estate agent whether the buyer (or buyer’s agent) has a reputation for lowball purchase offers. If that’s the case, you might feel freer to reject the offer.
 

Don’t signal desperation
 

Buyers are sensitive to signs that a seller may be receptive to a low purchase offer.
 

How to improve your credit score

These fixes will help you get better rates

A credit score tells lenders whether you're a safe bet when it comes to trusting you with credit. The number is an indicator of whether you pay bills on time and whether you have outstanding debt, so it helps lenders determine whether you qualify for a mortgage, credit card or loan, and for how much. We'll show you how to obtain your score and improve it so that you can get the best possible rates.

How your credit score is calculated

You actually have three credit scores, one for each of the three credit bureaus: Equifax, Experian and TransUnion. Each score is based on that particular bureau's information about your financial history, and as that info changes, so does your score.

Credit scores are also called FICO scores, because the scores are usually generated by software developed by Fair Isaac and Company. FICO scores have different names at each of the three credit bureaus, but they're developed using the same method.

Credit scores are calculated with information from five categories:

• Payment history (35 percent). If you've paid bills late, had an account in collection or declared bankruptcy, your credit score has taken a serious hit. Recent problems have greater impact than older ones.
• Amounts owed (30 percent). This area accounts for how much debt you have, what kinds and how close you are to your credit limit.
• Length of credit history (15 percent). Older accounts improve your score, because they indicate that you've been able to maintain good standing.
• New credit (10 percent). Opening a number of new accounts in a short time frame may decrease your score.
• Types of credit used (10 percent). Having a few different types of accounts (credit cards, retail accounts, installment loans, mortgages) has a positive affect on your score.

What's a good score, anyway?

Credit scores range from 300 to 850, and any score above 720 is considered a good score. If you have a score of 740 or higher, you will qualify for the best rates. On the other hand, if your score is 619 or lower, you will have a difficult time getting a loan or credit card, and if your score is below 559, it is unlikely that you will qualify for a loan.

Scores can vary from agency to agency, based on whether the information they have collected about you is complete and accurate. If there are varying scores, a lender will usually go by the middle score.

How do I find out what my credit score is?

Once every 12 months, you are eligible for a free copy of your credit report from each of the three national consumer reporting agencies. These reports show whether you pay your bills on time, have filed for bankruptcy and even whether you have been sued or arrested.

While you're entitled to free credit reports, you'll have to pay to find out your credit score. You can order your score from each of the three reporting agencies' websites.

To bump up your FICO score, try these tips:

• Dispute incorrect information in your credit report. If you find errors, complete the dispute form included with your report or write a letter to the reporting agency. In your report, identify the mistakes and clearly state why they are incorrect. Send photocopies of your report with the mistakes circled, and include copies of documents that support your argument.
• Pay your bills on time. Delinquent payments make a big dent in your score, so do whatever it takes to make sure that you pay your bills on time. Set up automatic debits and payment reminders so that you don't miss another due date.
• Minimize your debt. Pay off your debt as quickly as you can. Keep balances on credit cards as low as possible and pay off the debt, rather than transferring balances from card to card.
• Settle any debt in collections. Contact the collectors to negotiate a pay-off settlement. Make sure you receive the collector's agreement in writing before you send in any payment.
• Recognize that negative information will stay on your report for a while. Most negative information, if it is accurate, stays on your report for seven years. The exception to this rule is bankruptcy, which remains for 10 years.

www.mvprealestategroup.com

Young Optimism: Young Renters and The American Dream

 

 

The 5 Most Popular LA Neighborhoods

From celebrity sightings to basking on beaches in November, Los Angeles living provides year-round outdoor fun. However, Los Angeles residents enjoy more than just warm weather – their city is home to some of the most upscale neighborhoods in the country.

While it may sound like a great idea, moving to LA can be an intimidating, expensive transition for non-natives. The LA metro area encompasses multiple districts, each with individual benefits and drawbacks. Interested in becoming a SoCal transplant? Consider these five top neighborhoods.

 

Beverly Hills

It’s no surprise Beverly Hills real estate is consistently among the best in the United States. The median home value is a steep $2.58 million, which stretches far beyond most house hunters’ budgets. Correspondingly, the median household income is $70,945, which is a far cry from the $44,512 national median. Aside from the rich and famous, most residents here fall into one of three categories: urban dwellers from foreign countries, educated professionals with high incomes and college graduates with high expenses. The cost of living in Beverly Hills is extremely high, making it an impractical choice for many – except those who are heir to a corporate fortune or relatives of entertainment industry royalty.

Highland Park

Often referred to as the West coast’s Brooklyn, Highland Park is home to a diverse mix of urban families and wealthy singles. Highland Park dwellers make about $34,791 per year. Highland Park homes have consistent increasing values, rendering it a smart neighborhood for home purchases. The median home value in Highland Park is $518,900, which is a 19.2 percent increase from 2013. Highland Park features upscale shopping and dining, as well as access to the Gold Line for a no-hassle commute to downtown.

 

 

Los Feliz

A bit more on the expensive side than some other LA districts, Los Feliz’s median home value is $1.09 million. Los Feliz home values have increased 8.8 percent over the last year, and Zillow projects a 4.1 percent increase by March of 2015. Compared to Los Angeles homes for sale, which have a median list price of $540,000, Los Feliz homes for sale are listed for about $1.33 million. The majority of residents are in their 30s without children. In fact, 82.9 percent of the homeowners in the region do not have children, so consider other neighborhoods when searching for family-oriented atmospheres. The median household income in Los Feliz surpasses the national median at $46,113. Most residents here enjoy post-graduate educations, mid-management professions and higher incomes.

 

Silver Lake

Silver Lake is most well-known for its eclectic culture and unique residents, thanks to Forbes’ “Best Hipster Neighborhood” designation two years ago. In addition to an abundance of coffee shops and artsy occupations, Silver Lake has some of the best food carts and locally-owned bars in the city. Silver Lake’s median home value is $800,600. The 15 percent increase in home values since last year indicates a strong, ascending housing market and great investing opportunities. The typical income in Silver Lake falls around $44,949, which is slightly higher than the national median. Most residents here are urban, young professional singles with mid-range incomes. Silver Lake’s living expenses are less than other areas, yet the neighborhood is still considered upscale.

 

West Hollywood

Also known as WeHo, this neighborhood is Beverly Hills’ more frugal and trendy younger sister. West Hollywood real estate features a median home value of $640,700, which is an 18.3 percent increase year-over-year. Most WeHo residents are big-spending young professionals and urban singles with a median income of $38,914. The majority (52.9 percent) of residents here are not married, so families might consider more kid-friendly locales. Like all city neighborhoods, there are good and bad areas, so make sure to research specific apartment buildings and sub-neighborhoods before blindly relocating.

Although these neighborhoods differ in their economic makeup, they are all fantastic options for future LA residents. The most important aspect of searching for homes in any city is ensuring that surrounding areas fit individual needs. Investigate parks, schools, nightlife and commute times to determine the best neighborhoods.

Happy 4th of July!

L.A. Council backs $39-million subsidy for downtown hotel project

The Los Angeles City Council moved forward Tuesday with plans to allow a real estate developer to keep $39.2 million in taxes expected over 25 years from a downtown hotel and residential project planned next to the 110 Freeway.

The council voted 11 to 0 to negotiate agreements that would let Greenland L.A. Metropolis Hotel Development retain one-fourth of the property, sales, hotel, parking, business, utility and other taxes that would normally flow to the city budget.

Ovrom has said Greenland officials knew what could be built on the property when they purchased the land for $150 million. He argued that the company probably would have constructed the project without taxpayer assistance.Greenland L.A., a company afiliated with Shanghai-based development firm Greenland Group, is seeking to build a 19-story hotel and a 38-story residential tower on a site just north of the L.A. Live entertainment complex. The taxpayer help was approved despite objections from Robert "Bud" Ovrom, top executive at the city's Convention Center.

Policy advisors to the council disagreed, saying Greenland proposed a hotel tower only because city officials had asked them to do so. "If no assistance is provided, the developer would construct a residential tower instead of hotel," Chief Legislative Analyst Gerry Miller said in a report to the council. 

Ovrom had no comment Tuesday. City officials say even with the subsidy, Metropolis will generate more than $117 million for city coffers over 25 years.

  

Miller has been recommending taxpayer subsidies as a way to lure hotel builders to downtown, saying the added rooms would help the convention center book more national events. Over the last decade, the council has agreed to let hotel builders retain more than $500 million in tax revenue -- projects that are all within three blocks of Metropolis. Yet another hotel developer, Related Cos., is looking to keep at least $138 million from a project through 2043.

  

The vote on Metropolis took place minutes before employees with the Coalition of L.A. City Unions showed up at the council to decry what they described as "predatory" fees charged to the city by Wall Street banks. Labor activists who packed the council chamber voiced similar concerns about the deal for Metropolis.

"To say that the city is having a hard time on the one hand, and then say here's free money to a developer who's going to make all this money back, is outrageous," said Roy Stone, president of a union local representing city librarians. "Don't give away the house to encourage them to build something."

Victor Gordo, an attorney for the coalition, also questioned the proposal, saying lawmakers need to re-evaluate their strategy for improving the economy.