FHA Homeowners Armed with Knowledge Program

FHA Homeowners Armed with Knowledge Program

The government is offering first-time home buyers a discount on their mortgage for completing required classes.

The HAWK or Homeowners Armed with Knowledge Program is an FHA program where first-time home buyers receive a discount on their mortgage insurance premiums in exchange for completing education.

The counseling and education covers how to evaluate housing affordability and mortgage alternatives, finance management and rights and responsibilities of homeownership.

The HAWK for New Homebuyers program provides FHA insurance pricing incentives to first-time homebuyers who participate in housing counseling.

For more information about the HAWK program, please visit www.hud.gov.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

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Buyer Negotiation Strategies

Buyer Negotiation Strategies

Sellers spend their time, energy and money to get their home ready for the market. When the home goes into the multiple listing service, they are excited because they are moving. However, it’s just the beginning of the negotiations.

Buyers are using different strategies to ensure their offer is accepted by the seller when there are multiple offers on a property. For example, one of the strategies is to offer over the asking price and hope that necessary repairs will be discovered during the inspection period or the appraisal will be less than the sales price. Buyers will ask for a substantial credit as an opportunity to re-negotiate the price with the seller.

To help our sellers combat this tactic, we suggest that when they receive multiple offers, is to accept a second offer in the back-up position. This provides the seller with leverage. When the buyer’s inspection negotiation strategy comes up, the seller can move on to the buyer who is in the back-up position if they aren’t able to come to terms. With advance planning, the buyer negotiation strategies can be avoided.

Some transactions can die because of last minute demands from buyer. Recently, we had a transaction where the buyer offered over the asking price and during the inspection period, they asked for a huge chunk off the price. Luckily, we had an accepted offer in the back-up position and my client declined the buyer’s request. The seller moved on with the buyer that was initially in the second position and the transaction closed.

Tune in to KXL‘s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

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Seller Strategies For Buying & Selling

Seller’s Strategies For Buying & Selling

Some sellers who want to sell their home are feeling stuck. They are worried about finding a new home in this market.

I spoke with a seller yesterday with that exact fear. She wants to sell but she’s worried that she won’t be able to purchase a replacement property.

For example, let’s say a seller accepts an offer that they cannot refuse, what would happen if they cannot find a new home?

Planning in advance is essential.

A couple of options is to negotiate a long closing or a rent back period. A seller could rent their property from the new homeowner for a specific period of time after closing.

If you don’t plan in advance, you could have a problem. If the seller fails to follow through with the agreement to sell their home, they can be sued for specific performance.

For example, we had a seller who quit his job and decided to move out of state. We put his home on the market, he accepted an offer, inspections and an appraisal was completed etc. Toward the end of closing, he was offered a new job in Portland and accepted. We asked the buyer if they would let our seller out of the transaction. They wouldn’t as they wanted to proceed with the purchase per the agreement. My seller was forced to choose between being sued or proceed with the sale. He close to sell and purchase another home in the neighborhood.

In an effort to make the sale & purchase as easy as possible, plan in advance.

Tune in to KXL’s “Experts on the 19′s” every Monday morning at 6:49AM and 8:49AM and listen to real estate advice from Portland’s Real Estate Advisor, Rick Sadle.

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