FINDING THE RIGHT FINANCING

PRICE NEGOTIATIONS

Finding the right home for you is your primary goal, but enjoying it with a lower payment and better mortgage terms is a very important secondary goal. We’ve researched and worked with many mortgage brokers and lenders in the Afton real estate markets, and we’ll help you to contact those that are the best fit for you and your financial picture.

The normal mortgage for working families – Just because there’s nothing special about your income stream, and you’re getting a paycheck every week, that doesn’t mean that there won’t be differences in mortgages and lenders for your needs. Every mortgage broker and most lenders tend to work within their own requirements and procedures, and these may or may not be the friendliest terms for a salaried or hourly wage earner. We know which are going to treat you right and give you the best terms, and we’ll guide you to them.

The self–employed borrower – Since the mortgage and housing crisis that began in 2007, it’s become a grueling process for a business owner or self–employed person to get a mortgage. Documentation of income and expenses is much more detailed, and we’re up–to–date on all of it. We’ll steer you toward multiple sources for great mortgages for the self–employed.

Less than stellar credit – All types of lenders have become tougher in our new financial environment, and it’s easy to get a ding or two on your credit these days. It doesn’t even take a mistake or late payment, as credit scores are reduced for the amount and ratio of debt, as well as types of debt. Millions of people pay their bills on time and still don’t have those high end credit scores. We know the lenders in the Afton, Harrisonburg, Staunton, and Waynesboro real estate markets ready to provide good mortgages for less than high end credit scores, and we’ll tell you who they are.

ARMs and When They’re Appropriate –  Though most residential home buyers are buying a home they intend to occupy for a number of years, on average around the country at least eight, this isn’t always the case. Also, investors may be looking at a shorter ownership time frame. ARMs, Adjustable Rate Mortgages, are appropriate if the plan is to own a home seven or fewer years, particularly five or fewer. Because the lender is tying up their money for a shorter defined time period, they loan at lower interest rates. ARMs can result in hundreds of dollars a month in lower payments in some cases. They can also allow a buyer to qualify for a larger home. However, this isn’t generally a great practice, as once the ARMs fixed rate interest period is over, rates can escalate more than expected.

Financial Disclosure and Deal-To-Closing Considerations – Especially after the mortgage and housing problems that began in 2007, lenders and their underwriters are scrutinizing financial, income and expense information much more closely than ever before. Be prepared to dig out a lot of documentation, and it’s best to be forthcoming with any financial information that impacts your ability to pay the mortgage payment. Even if it’s not asked for early in the process, be prepared for questions and requests for documents throughout the process. Also, it’s highly recommended that you not add any credit card or other debt between the purchase contract and the closing. Just before closing, most lenders will do another credit check and a check for any liens or encumbrances.

Watch the Fees and Question Them –  There are a number of fees associated with getting a mortgage, and the total of origination and other fees is usually the highest closing cost aggregate item in the deal. Never hesitate to ask about all fees, why they’re charged and why they’re a certain amount and how they’re calculated. It’s your money, and you’re the customer.

We love helping Augusta County, Staunton, and Waynesboro real estate buyers to find the perfect property. But we love even more the ways in which we can help them to buy it at the very best price with the very best terms. Sometimes negotiations aren’t all price. A great contract can involve other seller concessions that create the right deal for our buyer clients.
 
Real estate market data –How can you be expected to make price offer decisions in a vacuum? Key Real Estate spends a great amount of time and effort in collecting market data to help our buyers in their price negotiations. This data involves not only sold property prices by neighborhood, but also current listing pricing to determine the competitive nature of the market.
 
This data is very thorough, and it’s call a Comparative (or Competitive) Market Analysis.  There are two parts, the comparison of the property you’re considering to similar properties recently sold in the nearby area.  This gives us a firm grip on what has happened in the near past, but by nature it is “past” data, thus possibly not accurate for the market as it is when you’re in negotiations.  We then do another CMA process on the currently listed properties most like the one under consideration and in the same neighborhood or nearby.  This gives us a current market snapshot so that we can adjust our valuation model and our offer to reflect the current market situation.
 
Thorough knowledge of your situation – Only through constant communication we can advise you properly in pricing negotiations. By understanding your motivations and financial capabilities, we can help you craft a price negotiation strategy with the highest probability of success.

Seller motivation research – While it’s not always legally possible to determine why someone is selling, there are things we can glean from their listing and price activity that will allow us to help you to negotiate from a position of strength.

It’s not all money – There are a lot of ways to negotiate a real estate deal, and they don’t always involve money. Perhaps the seller doesn’t have a lot of ability to work with you on price, but they can make other concessions that could result in a deal. We help you to take the best approach.

It’s not over till it’s over – Many real estate price negotiations involve multiple counter offers and a lot of back–and–forth. We’re with you with each counter offer to adjust your negotiation strategy accordingly. Because we can’t know the seller’s financial limitations in many deals, some buyers are elated when they cut a major low-priced deal on a home, but then after inspections they hit a brick wall in negotiations with the seller related to repairs.  The negotiation to purchase a home isn’t over with the price on the contract, and it’s best to know that a real deal at the front end could result in less flexibility after inspections in the repairs discussion.

 
The thing to remember is that Key Real Estate is right there with our Augusta County, Staunton, and Waynesboro real estate buyers throughout the negotiation process with the latest information and experienced advice.
Call or email us today. 540-221-2157  1key@comcast.net