Tag: buying rental property

Two Scenarios After Your Offer Is Accepted On A Home

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If a seller accepted your offer, congratulations! You are one step closer to owning a home or property. What happens now can vary, but I’ll cover the different scenarios below. In this blog, we’ll cover the two most common scenarios and in our next blog post, we’ll cover the scenarios if you or the seller wants to back out.

Scenario 1: You Sign the Purchase Agreement

This scenario is the most natural progression after an offer is accepted. Signing the purchase agreement means the property is under contract since the agreement has been accepted in writing and signed by both parties. It will include the following information:

  • Identification of participating parties (buyer and seller)
  • Legal description of the property
  • Financial details
    • Purchase price
    • Buyer financing
    • Earnest money deposit amount
    • Closing costs and how it will be split between buyer and seller
  • Condition/specifics of the sale
    • Contingencies
    • Items conveyed in the sale (appliances, fixtures, etc.)
  • Timeline
    • Contingency time frame
    • Offer expiration date
    • Closing date
  • Condition of the home
  • Property disclosures
  • Relevant seller concessions, repairs, or credits

After the purchase agreement is signed and the earnest money is deposited, you now have the legal right to purchase the property. The signing and returning of the purchase agreement with the buyer’s earnest money deposit is the process of moving the sale into escrow.

Scenario 2: The Seller Wants to Negotiate

The seller might like your offer but can still negotiate some terms, so it’s in the seller’s favor. The seller can negotiate by submitting a counteroffer. This is why having a good buying agent is crucial, as they are the key to helping you navigate the negotiation process and helping get both parties what they want. Negotiations can include:

  • Increasing the purchase price or down payment
  • Removing/editing contingencies
  • Adjusting the length of closing schedule
  • Modify seller concessions/contingencies
    • Seller repairs or credits
    • Excluding certain items from the sale
    • Property transfer deadline, also called the seller move out date

Once both parties find terms agreeable to them, a purchase agreement will be drafted for both to sign. Then the buyer can move forward with purchasing the property.

If you need help navigating this fast-paced seller’s market, contact me today! I’d love to help you find the home of your dreams this year. Reach out to TALK Property Management–we are here to help: (512) 721-1094 or dbrown@talkpropertymanagement.com.

Mortgage Rates and Investing in 2020

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Austin area investors have incredible mortgage rates to take advantage of, and even lower rates may be headed our way for home-loans. The Federal Reserve recently pledged to buy bonds and treasuries in an effort to stabilize the market this spring and, as a side-effect, will push mortgage rates downward.

In a time when rates are already historically low, how much lower can they go? It is possible that homebuyers could see a 30-year fixed rate of 2.75%, according to President of Naroff Economics, Joel Naroff, who recognizes patterns from previous years. The Fed launched similar efforts in 2008, which in-turn pushed rates down below 5% for the first time in U.S. history.

Mortgage rates are likely to either drop slightly or at least remain the same while the Fed keeps any sudden increases at bay. The reserve institution lifted its cap of $200 billion on spending for mortgage-backed securities (MBS). That move creates the additional buying power of the bonds and treasuries as noted above, and the market for these MBS’s is what impacts the current mortgage rates. 

For now, only time can tell the future, and what is current is that rates are low, staying low, and consumers should watch headlines closely to prepare for any changes in the market.

If you are considering buying a home or investment property, now is a great time to make a move and take advantage of the all-time low rates. The money you save on a mortgage can easily be pushed into renovations, flipping, and a property management company that will set you up for long-term success and sustainability. 

Are you in need of a recommendation for a reputable lender to answer your toughest mortgage questions? Contact Dona Brown; she has a vast network and years of experience to point you in the right direction. 512-721-1094. 

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