How an Escalation Clause Can Help You Win the Home You Want

An escalation clause might be just what you need to get the home you want in our market. Here’s why.

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If you haven’t had much luck getting offers accepted in our market, I recommend using a tactic the agents on our team are implementing with our buyer clients: an escalation clause.

How does it work? Let’s say you enter into a multiple offer situation and the listing agent tells you to make your highest and best offer, but you’re hesitant because you have no way of knowing if that offer will be high enough.

The escalation clause is a unique proposition, but it might be just what you need to get the home you want.
An escalation clause guarantees that you’ll offer more than the next highest bid up to a certain amount. If the house is listed for $170,099 and you’re willing to pay as much as $185,000 for it, your escalation clause will state that you’re willing to pay $1,000 more than the next highest verifiable offer. If another buyer makes an offer of $183,000 with no closing costs, your offer would automatically reset to $184,000.

The escalation clause is a unique proposition, but it might be just what you need to get the home you want.

If you have any more questions about how an escalation clause works or you have any other real estate needs, don’t hesitate to reach out to me. I’d be happy to help you.

5 Kinds of Smart Technology Your Home Needs

Smart home features can save you money on bills, ensure the security of your home, and make life easier for you. Here are five examples of smart tech that are popular today.

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Smart technology is becoming increasingly popular in the market. These high-tech items can attract buyers, boost your home’s value, and just make your home more convenient for you and your family. Today I’ll share five examples of smart home features you might consider installing in your own home.

1. Smart thermostats ($180 to $250). This is one of the most popular smart home features that people in the market are installing in their homes. When you leave the house, your smart thermostat will automatically adjust your temperature to your specifications, allowing you to be energy efficient in your practices and to keep your bill down. Popular brands of smart thermostats include Ecobee, Nest, and Honeywell. The cost is worth it, though; this technology can save you as much as $250 annually on your energy bill.

2. Smart door locks ($200 to $250). When you leave your house, a smart lock can automatically lock the door behind you, which can keep you from worrying about whether or not your house is secure. What’s more, if you have friends, family, or service workers coming to your house when you’re not there,  you can unlock the door remotely for them from your phone. We personally recommend the August Smart Lock brand.

Smart thermostats can save you as much as $250 annually on your energy bill.
3. Video doorbells ($199). With these, you can see whoever walks up to your door from your phone, wherever you are. Certain brands will alert you when someone even approaches your door; some have microphones that allow you to talk with whoever is there. It’s perfect for home security and general convenience. Ring is the most popular brand that we’d recommend.

4. Smart smoke detectors (Varies). A smart smoke detector can save you 5% on your insurance premium; like other smart technology, you can access it remotely so you’ll have an idea of what’s going on in your home when you’re not there. We recommend that you use either Birdi or Nest, which also have carbon monoxide detectors built in as well.

5. Smart irrigation ($200).
The Sky Drop smart irrigation system can track the local weather and water your yard or garden depending on the conditions. It will also track how much rain accumulates and adjusts the water use accordingly.

Depending on your lifestyle, any or all of these additions can add a lot to your home experience, and add value and appeal to it when it comes time to sell.

If you have any questions about smart home features or about real estate in general, reach out to us. We’d be glad to help you.

Learn From History Before You Miss Your Chance to Sell

2013 saw the housing market slow greatly because of increased interest rates. Are we following the same trends today?

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The 2018 housing market started off much like how the market started five years ago. In 2013, the Federal Reserve saw the real estate market booming and pushed interest rates up to slow down the economy.

Currently we are seeing the same inflation in terms of values and prices as we did in 2013. I believe that the federal government is going to once again slow down the economy and the real estate market by raising the rates again. In fact, they have already raised them twice.

What this means to you, if you are selling, is that you want to get your house on the market immediately.

In 2013, rates started the year at 3.75%. By September of that year, they had risen to almost 4.75%. We sold an incredible amount of homes and had record-breaking sales in the first half of the year, and then the market came to a stop.

You can expect to see the same results this year. So far, we have already seen a huge influx of buyers and sales in the first quarter of 2018. The housing market is booming right now, we’re seeing the best prices in years, and we are seeing interest rates increase.

Interest rates have already jumped by almost 0.5% within the last six months. For the second quarter, they will continue to go up probably 0.25%.

By July, most buyers who are looking will have bought a home. After that, there will be an increase in inventory for the second half of the year, which will slow down the housing market and bring prices down.

If you are looking to sell your house, put it on the market now because the values are up, buyers are out, and inventory is low.
So, if you are looking to sell your house, put it on the market now because the values are up, buyers are out, and inventory is low. You want to be on the market before the summer months when a huge increase in inventory comes on the market and values come down. 

If you have any questions about this or want to list your home, please don’t hesitate to contact me. I look forward to speaking with you soon.