Real Estate Blog

What is an Escalation Clause?

What is an Escalation Clause?

Today’s market is definitely seller-oriented. That means that oftentimes buyers are finding out that they have to compete when buying a home. On of the ways to be competitive is to write an escalation clause.

An escalation clause  is simply a clause that states that your offer is “x” amount, but you will increase your offer by a certain increment up to a maximum amount. For instance let’s say the property is  listed $250,000. We make a full price offer,  but then put a clause that says “I'll pay a thousand dollars above any other offer up to a maximum of $275,000.” 

Should the seller receive multiple offers, they can take the highest one (they must show you proof of the offer!) and you can purchase the…

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What Is a Back Up Offer?

What is a back up offer? 

So,  what is a backup offer and how do you write one? A back up offer is exactly what it says-it’s an offer that “backs up” a current contract that’s already in place. 

Say you find the PERFECT property but someone else has already made and offer on it, and the seller has already accepted the offer. You may still be able to place a back up offer on the property. This means that if something happens and the first offer falls through, you are next in line. If the original buyer backs out because of an inspection, or if their loan falls through, or any other contingency is not satisfied and that prevents them from following through on the purchase, you get your shot. When working with a back up offer, we negotiate…

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How I Got Started in Real Estate

Recently someone asked me, “Hey Alan! How did you get into Real Estate?”

Well, bottom line, I was having a mid life crisis. I had was turning 40 and kind of struggling with my job.  I used to be a sales rep in the audio video business. I sold high-end home theater/audio systems. For over a decade I had been traveling the southeast meeting with clients that were integrating high-end home theaters audio systems video systems into their homes.  I really enjoyed that work but actually what happened was this thing called the great recession. People basically stopped building homes in 2007 and 2008. People certainly stopped spending $80 to $100,000 on home theater equipment! As that business kind of dwindled down and everything was a struggle.…

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How is Square Footage Calculated?

How is Square Footage Calculated in Real Estate

So, how is square footage calculated? First of all, it’s important to note the difference in “Heated Square Footage” and “Total Square Footage.”  Heated square footage is the total of the living areas. Total square footage is everything under the roof-including garages, covered porches-everything. 

An appraiser is concerned with heated square footage. The part of the house that is heated and cooled-where you LIVE. 

As Realtors, we use this information to pull comps to help us determine the best listing price for your home. We’ll pull sales comps in the area of similar properties and then we just take that average price per square foot for all the recent sold, multiply that by…

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Property Survey?

 Do I Need a Property Survey When Buying a Property? Quick Look at When & When Not…

Let’s talk about surveys! A lot of people are relocating here from other states and they're asking questions about surveys. Are they required in Tennessee? No, they are not! In some states a survey is not an optional item, but here it is. 

With that in mind, let’s talk about when you do and do not need to get a survey. 

If you're buying a property like a large track of land out in the country in a rural setting that may not have transferred ownership in decades, been in a family forever and nobody really knows exactly where the property line is, or is the line is described as “the tree line over here the creek bed over yonder and the ditch line to…

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Fannie Mae Forecast

Good Morning!

I ran across this Fannie Mae forecast report(s) this morning. Historically these Fannie Mae forecasts have been very accurate, and this set is very encouraging!

Both the economic and housing reports run through 2024. Looking at the CPI & GDP forecast numbers form the economic report, they are predicting inflation to fall into check early in 2024. As you can see, we are already in a falling pattern and heading to the target of a 2% range as recommended by the Federal Reserve.

Looking at the housing forecast, Fannie Mae predicts that mortgage rates should settle in the 5%’s range in 2024. This is GREAT NEWS for buyers and sellers! 

In reviewing these two reports together we can see that it looks promising that…

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Your Guide to Virtual Showings

Your Guide to Virtual Showings

Today we’re going to talk about Virtual Showings. 

In Jackson, we have a lot of industry, which leads to a lot of people moving in from other areas. This means that you might not be in town, or be able to quickly come to town, when a great property hits the market. Thanks to technology, you can now see that home virtually! 

Basically, I go to the home and walk you around using Skype or Zoom or FaceTime or something like that. Or, I can make a video of the home and send it for you to watch. 

Either way, you can “walk” the property with out being there. As we go around, you can ask questions about what you see and I can make observations as I see the property in person. 

In a market…

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Real Estate Inspections Explained

Real Estate Inspections Explained 

So, unless you’re a contractor or a handyman (or handywoman!), you may be wondering how you’ll determine if the home you’re buying is in good condition. 

As Realtors, we include an inspection period in your contract. Typically, this is a seven to ten day period where you're allowed to hire a contractor or an inspector to inspect the property. You can actually inspect it yourself if you’re comfortable with that, or you can hire a state licensed inspector to come in and do a thorough inspection. That's really the most common method, though some do choose to hire a general contractor. If you know something specific that you're interested in knowing more about, for example the the roof or the hvac system, you…

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Six steps to buying a home

Six steps to buying a home

So, what are the steps to purchase a home? Today I’m going to guide you through the six basic steps. 

Step number one -Get Qualified. The first thing you need to determine in your home buying process is your budget . The best way to do this is by consulting an expert. Those online calculators don’t know everything. There is more to consider in a monthly payment than just the price of the home! Also, an online calculator can’t tell you all the ins and outs of a FHA loan vs. a conventional, or USDA loan. Some mortgage companies even have special programs for medical professionals that you may qualify for. A mortgage broker can sit down with you an analyze YOUR situation and determine what is best for YOU. And you…

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Getting prepared to buy

So, are you ready to buy a house? Let’s talk today about what you need to know and do to be prepared to buy when you find your dream home. There’s more to buying than falling in love with a home, and I’m here to guide you through every step of the process. 

Step one is to get pre qualified. You’ll want a reputable lender, preferably a local one. Listing agents like to see a pre qualification from a lender that they are familiar with. This letter says that you have done all your pre-home buying home work, and that your loan is looking good. You know your price range and your required downpayment. You are a Qualified Buyer.  

Just a quick side note here- with interest rates changing make sure that you know what your budget is according to…

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