How does an escalation clause work?

What is an escalation clause?

An escalation clause is something in real estate that can come in handy at times. Especially when we are dealing with multiple offers and offers that are above asking price. These are used when you offer on a home for example at $100,000 but you’re willing to go up to $115,000. We put in the contract that we are offering $100,000 but are willing to pay $1000 over the highest offer up to $115,000. The listing agent will have to provide us with the highest offer to show us that, in fact, our escalation clause will come into play.

But what do I do if the agent/seller won’t accept an escalation clause? Well, at that point we have to bring our highest and best offer for what we can do. We have multiple tricks we can do to make our offers more appealing. We can help and make it happen!

Thank you,

L+ H Homes, ERA Great American Realty

“Your Realtors That Care!”

Visit our Website in a NEW, Easy Way

With the newest Apple iOS update, visiting our website is easier than ever. Follow these quick and easy steps to save our direct web address to your iPhone’s home page.

Start by visiting NectarRealEstate.com on your device’s browser.

Click on the arrow located in the middle of the bottom menu.

After clicking, you should see this menu:

Choose ‘Add to Home Screen’.

By choosing ‘Add to Home Screen’, you will open the option to save the link. Click ‘Add’.

Once this action is complete, NectarRealEstate.com will become available as an icon on your home screen. You can now easily search our listed homes, any day, any time.

Visit our Website in a NEW, Easy Way

With the newest Apple iOS update, visiting our website is easier than ever. Follow these quick and easy steps to save our direct web address to your iPhone’s home page.

Start by visiting NectarRealEstate.com on your device’s browser.

Click on the arrow located in the middle of the bottom menu.

After clicking, you should see this menu:

Choose ‘Add to Home Screen’.

By choosing ‘Add to Home Screen’, you will open the option to save the link. Click ‘Add’.

Once this action is complete, NectarRealEstate.com will become available as an icon on your home screen. You can now easily search our listed homes, any day, any time.

Ways the Modern Home is Evolving

To some extent, many houses look similar to ones built years ago. However, a lot is changing on the inside. We use our homes differently than we did 50 years ago, and building/remodeling trends are keeping up with these changes.

Trends can be broken down into two major interconnected subsets: ways that technology has changed how we live, and ways that how we live has changed our homes.

1. TECHNOLOGY

Many newer homes now feature a garage charging station for modern electric cars (or at least the underlying infrastructure to set one up easily). The same is true for solar power. More and more homes are being built either with solar capabilities installed or are solar ready for when the owners decide to add solar panels.

Home is no longer just a place you live but a place that lives with you. This takes many shapes, from the smart thermostats that keep your home at the perfect temperature, to webcams that let you peek in on the family cat while you are at work, to smart home networks that oversee much of your home’s functioning. Smartphones are now both communication devices and remote controls; letting us do everything from locking the door to turning up the heat with a few quick swipes.

Tribeca Luxury Loft

2. LIFESTYLE CHANGES

While home theatres and gaming rooms are still popular, home offices are becoming the new essential. As telecommuting and entrepreneurship continues to rise across Los Angeles, your best office might be the one down the hall. Home offices were once afterthoughts but now they are often positioned more prominently in the home.

Multi-generational living is an ongoing trend that continues to evolve. From co-housing in a single home to in-law suites and guest houses that do more than house temporary visitors, our housing reflects a shift away from the traditional nuclear family setup. With space at a premium, the basement, once a home’s foundational afterthought can now be an entertainment center, office, or family gathering spot.

Some trends are also fading. Stainless steel appliances are less popular. Granite countertops have given way to marble and quartz.

Styles change but what remains is the joy and value that the right home can bring.

Photos courtesy of LeverageRE.com

Article originally appeared on LeverageRE.com

Ways the Modern Home is Evolving

To some extent, many houses look similar to ones built years ago. However, a lot is changing on the inside. We use our homes differently than we did 50 years ago, and building/remodeling trends are keeping up with these changes.

Trends can be broken down into two major interconnected subsets: ways that technology has changed how we live, and ways that how we live has changed our homes.

1. TECHNOLOGY

Many newer homes now feature a garage charging station for modern electric cars (or at least the underlying infrastructure to set one up easily). The same is true for solar power. More and more homes are being built either with solar capabilities installed or are solar ready for when the owners decide to add solar panels.

Home is no longer just a place you live but a place that lives with you. This takes many shapes, from the smart thermostats that keep your home at the perfect temperature, to webcams that let you peek in on the family cat while you are at work, to smart home networks that oversee much of your home’s functioning. Smartphones are now both communication devices and remote controls; letting us do everything from locking the door to turning up the heat with a few quick swipes.

Tribeca Luxury Loft

2. LIFESTYLE CHANGES

While home theatres and gaming rooms are still popular, home offices are becoming the new essential. As telecommuting and entrepreneurship continues to rise across Los Angeles, your best office might be the one down the hall. Home offices were once afterthoughts but now they are often positioned more prominently in the home.

Multi-generational living is an ongoing trend that continues to evolve. From co-housing in a single home to in-law suites and guest houses that do more than house temporary visitors, our housing reflects a shift away from the traditional nuclear family setup. With space at a premium, the basement, once a home’s foundational afterthought can now be an entertainment center, office, or family gathering spot.

Some trends are also fading. Stainless steel appliances are less popular. Granite countertops have given way to marble and quartz.

Styles change but what remains is the joy and value that the right home can bring.

Photos courtesy of LeverageRE.com

Article originally appeared on LeverageRE.com

The Matterport Pro 3D Camera in Real Estate

The Matterport Pro 3D Camera is one of our greatest tools for listing a home online. With its innovative technology, the Matterport can offer buyers a 3-Dimensional environment with the click of a button— giving so much more depth than an average photo.

The camera should be placed in evenly spaced positions throughout the home. The Matterport Capture iPad app allows the user to have control over the camera as it automatically rotates 360 degrees on its tripod. Each scan generally takes about one minute. Once the scan is complete, you can see an instant preview on your iPad. Once all of the scans are complete, you can process your final product to create an unbelievable real estate tool.

The Matterport creates a meaningful, emotional and visual way to experience a home online. It’s a fabulous source for both realtors and buyers as they virtually ‘walk’ through a home.

By clicking the following link, you can see an example of one of our homes. This rare Beechcrest floor plan in Celebration, Florida offers a large porch, first floor master suite, screened in pool, three car garage and a one bedroom guest apartment.

https://my.matterport.com/show/?m=WHoKxg3uC9Dmatterport-3d-camera1

Don’t Forget to File Your Homestead Exemption

PropertyTaxThe deadline to file for your Osceola County Homestead Exemption is March 2nd, 2015. The homestead exemption could save you thousands of dollars on your tax bill.  The Osceola County Government Center gets pretty busy this time of year with filings, so don’t wait until the last minute.  Better yet, take advantage of the ability to file online.

For those of you unfamiliar with this Florida Law, you NEED to read this. The Homestead Property Tax Exemption Law entitles every person who has legal title to a property in Florida as of January 1st of the current year and maintains it as a primary residence to apply for a $50,000 homestead property tax exemption.  Many people from other states are unfamiliar with this tax benefit since most states have age requirements on this kind of exemption.  Not in Florida!  If it’s your primary residence, you’re eligible.

Can you see the benefits yet? Here’s an example. Let’s say you own a property that is valued/assessed at $200,000 and your millage rate (tax rate) is 1.7%. Your tax bill for the year would be roughly $3400 for the year . If you file for your Homestead Exemption on time and with all of your information, then your assessed value is reduced to $150,000, which makes your annual tax bill go down to $2550.

That is a savings of $850 in just one year!

The application is easy to fill out and does not take more than few minutes.

Here is what you need:

*A copy of the deed to your property or a current tax bill if you have owned your property for more than one year.

*Your Florida driver’s license or a Florida ID if you are a non-driver.

*Your Social Security Number

*If filing on a mobile home, you mobile home title or registration.

*Application, which can be found here.

Here is the address to apply:

Osceola County Government Center
2505 East Irlo Bronson Memorial Hwy
Kissimmee, Florida
8:00 am -5:00 pm, M – F

You can also apply online at: https://ira.property-appraiser.org/Homestead/

Check this off of your “To Do” list today!

 

How Legit is a Pre-Approval???

Real EstateLike any aspect of life, the more you do it, the savvier you get. My real estate business is no different. Over the years I have absorbed tips from others as well as through my experiences and sometimes even mishaps.

In the past year, my business has grown greatly as the inventory has shrunk and buyers have come back into the market with a fervor that I have not seen these last several years. With renewed market activity comes new players in all facets of the process. Everyone loves to back a winning horse, and the real industry certainly attracts those with a penchant for risk, but often they are looking for a quick buck. Those of us who have weathered the market ups and downs know that survival, and especially real success, come from realizing that this business is not a short sprint to the finish line but more a slow steady marathon.

Several times this year, I have had listings garner multiple offers with only a few days on the market. My first thought as a agent is to pat myself on the back. I work hard. Maybe I have finally earned an easy one, as if there is such a thing. So I sat down to look over all the offers for this one particular listing to make sure I had all the specifics down before calling my client. Of course, my client is going to want the one with the highest price; however, there are so many other factors that weigh in and must be considered. The most important one is how well qualified are the buyers really. Yes, they submitted a pre-approval letter with their offer, but do we know what they had to give the lender to determine what they are qualified for? I mean sure I could get the house under contract for a record breaking price, but if the buyers truly can’t afford it, I will waste weeks of my and my clients’ time.

So here is what I have learned to take as a first step in this situation. First of all, I googled the mortgage broker/lender if I didn’t know them. Next I actually called the number on the pre-approval letter. I had one that was an invalid number. Well that doesn’t bode well for those buyers or my seller. More than likely they just used an automated website to give them a pre-approval letter, and they were not required to submit any corresponding documentation. For the other mortgage brokers, I was able to speak to in person, I just asked them to walk me through their process for acquiring information and then subsequently issuing a pre-approval letter. This was a bit time-consuming, but I would rather spend that time upfront then waste weeks of time that the property is “under contract” and not being shown only to find out that the buyers ultimately don’t qualify for the loan. Plus by doing this due diligence, my client felt more secure moving forward.

There are lots of great mortgage brokers and lenders out there. I should know since I refer clients to them all of the time. This is not to say anything bad about that aspect of the industry as a whole. It is my job to protect my seller and ultimately myself as well from losing time and money, and this is one way that I have found effective to do so.

If you are looking to refinance your current mortgage or start the buying process with a pre-approval, contact me and I can give you some great mortgage contacts.

A Home as a Gift: Good or Bad Idea???

Gift-Wrapped House With Red BowThe Wall Street Journal recently posted an article regarding husbands purchasing homes as a surprise for their spouses. I was floored! Who does this???

Admittedly, the agents who reported these incidents work in highly affluent markets where the properties being purchased are often second or even third homes, not primary residences. I could not imagine being left out of the decision-making process for such a large investment, and it was interesting to note that my opinion was reportedly shared by many others. The real estate agents in this article confirmed that the gesture was often not well-received and often had costly consequences. Many high-end markets have substantial transfer taxes included in their closing fees, so turning the property around for a quick profit is high unlikely.

I think the take away from this story is to stick to a gift that is returnable just in case, and always get a gift receipt! With the holiday season upon us, this seems like good advice for everyone.

How would you feel if your significant other purchased a property as a surprise for you?

Market Heating Up Along With The Weather

hotweatherIt has been a while since I have blogged and that has been solely due to the amount of business we have been doing lately.  March and April of this year have been the busiest 2 months I have had since getting my license 8 years ago!

The Celebration, FL real estate market has become quite competitive and the demand is very high. It is so good to see such positive things going on for my sellers. It has been harder for buyers, of course, as many of them are kicking themselves for not purchasing in 2008 and 2009 when prices were way down and inventory was high.  Hope is not lost though if you still want to buy.  You just have to be on top of the market and have an agent looking out for you.  Properties move almost as soon as they come on the market, so having someone watching out for you is key.

Right now the supply of available properties is pretty low, and I have had to resort to calling homes that aren’t even on the market to see if they are willing to sell in order to find something for buyers. With the Summer season upon us, many families will be looking to move in order to be settled before the start of the school year in late August. If you have considered putting your home on the market, now is the time.

I can do a home valuation and market analysis at your earliest convenience. Please feel free to call or email me any time, 321-698-8230 or jana@homesbynectar.com.