The Pros & Cons of a Buyer’s Letter: Standing Out in a Busy Market

Imagine, after weeks of searching, that you’ve finally found your dream home. It’s in the perfect location with the right features and exactly the amount of space you need. But after requesting more information, your agent informs you that there are already several offers made on the house. How do you stand out in a busy market and snag your dream home?

When buyers are looking to make a lasting impression on sellers, they often opt to submit a letter to the seller. In fact, a recent study found that buyers who submitted letters were 9% more likely to have their offer accepted.

A Buyer’s Letter can work both with you and against you, so it’s important to understand what they are and when you should use one.

What is a Buyer’s Letter?

A man typing on a laptopA Buyer’s Letter is pretty much what it sounds like — a letter written by the buyer for the seller in order to stand out in a busy market. The letter is your chance to make a case for why you should get the home over other buyers.

Many people opt to write about how they envision their lives in the home, how well they would take care of it, how much owning this specific home would mean to them, and similar sentiments.

You might also use this space to talk yourself up, bringing up steady finances, your down payment, and job security — things geared towards making the seller confident in choosing you.

Advantages of a Buyer’s Letter

A man and a woman shaking handsA Buyer’s Letter sets you apart from the crowd and makes you more than just an offer on a sheet of paper — it allows you to connect with the seller on a personal level. In a constantly growing and changing market, being able to stand out or connect puts you a big step ahead of other buyers.

Is the home close to a golf course? Does the seller have bikes in their garage? Are there signs of pets in the home? If you notice you have common interests, including them in the Buyer’s Letter can elevate your standing.

When you choose to forgo a Buyer’s Letter, you miss out on the chance to advocate for yourself, which can go a long way in the seller’s final decision.

Disadvantages of a Buyer’s Letter

A woman writing in a notebook. While there are plenty of pros to using a Buyer’s Letter, there are also pitfalls to consider. Making your case is great, but it does give the seller leverage. If you really love the house as much as you say, then what’s to stop the seller from raising the asking price?

Maybe the seller accepts your offer, and you move to the home inspection stage. If issues turn up, then the seller might refuse to make costly repairs, assuming that you’ll buy the house no matter what.

Another unexpected con of a buyer’s letter? It can be tricky for sellers to navigate around discrimination issues. If a seller picks a buyer of a certain race, religion, gender, or family status instead of another, they could face backlash. Be aware of this when writing your letter so as to not put the seller in an uncomfortable position.

Need Help Standing Out?

If you’re kicking off the home-buying process and need help standing out, we’ve got you covered. Get in touch with us today, and we’ll help you secure your dream home, and answer any and all of your questions in the process.

New Year, New & Improved Home Value

Happy 2019! What do you want to accomplish in the New Year? If you’re thinking seriously about selling your home this year, or just want to add some value to your property, then it’s time to make a game plan for 2019.

You don’t have to break the bank to build your home equity; there are a number of small, easy projects you can do to increase your home’s value. And bonus: they’re indoor-only, so you can get started right away!

Here are three DIY, cost-effective ways to add value to your home.

Update Your Kitchen

Light-filled kitchen with hanging light fixture.Kitchens and bathrooms sell homes. It’s just a fact. If you’re aiming to add value to your entire home, start with these areas.

In the kitchen, refinish wooden cabinets or use a faux-wood finish on non-wood cabinets to give them an updated look. You can also replace your sink with a trendy single-basin fit and sprayer nozzle, and upgrade your appliances to stainless-steel.

With just a few small updates, you can have your whole kitchen feeling brand new!

Give Your Bathroom a Facelift

New construction bathroom with a soaking tub and granite countertop.Let’s head to the bathroom. With a few small upgrades, you can have your entire bathroom feeling like new.

Consider installing a low-flush toilet, updating your faucets, updating your flooring, re-caulking your bathtub, and even replacing the vanity. Strike the perfect balance between energy-efficient upgrades and aesthetic finishes to create a space that’s peaceful, luxurious, and comfortable.

Bring Some Light Into Your Home

Chandelier light fixture.Consider replacing all the lights (and light switches) in your home for a more modern aesthetic. Swap out traditional light switches with dimmers, install wall-mounted lights in your bathroom for a more luxurious feel, and be sure you’re using high-wattage bulbs in every room.

Adding light to your home will instantly make it appear more open and spacious.

Planning to Sell Your Home in the New Year?

We can help with that. Give us a call to begin exploring your real estate options. We’d love to share some additional tips on how to add even more value to your home!

Homestead Exemption

Homestead and Homestead Exemption.

Let me start by explaining what a homestead and a homestead exemption are in the State of Texas.

A homestead is defined in Texas as the place of residence for a family or individual.

Homestead Exemption

A homestead exemption allows you remove part of the value of the property from taxation, so you reduce your taxes liability.

Example:

If your home is worth $100,000 and you qualify, you will get a $25,000 exemption meaning that you will only pay taxes on $75,000.

To qualify for the exemption the property should be in the individual’s name (not a corporation or business), and be the primary residence by January 1st of the tax year (if you buy a home in July you must wait until the following year to claim it).

There are different kinds of homestead exemptions; all residents may get a tax exemption from school taxes of $25,000 from the home’s value. The other exemptions depend on age (over 65), disability, disability for veterans, extension of exemption for a surviving spouse, and exemption for manufactured (mobil) home. You must verify to see which you can qualify for.

For over 65 or disabled homestead exemptions, the Jan 1st deadline does not apply; it can be claimed as soon as you move in and can prove residence.

As of September 1st 2011, a new rule came into effect requiring a valid Texas Drivers license (the address should be that of the property you are applying for), or a Texas state-issued identification card; and a copy of a vehicle registration receipt to be submitted with the homestead application. If you do not own a vehicle, you must provide a utility bill with your name on it, and the same address, of course.

Note:

If you are married and have a homestead exemption on your home and you either get divorced or your husband or wife passes you will need to submit a new homestead exemption form. If you don’t the county might come back collect 50% of the exemption. Do not leave it up to the County, do it.

If you have any questions please refer to the following links where you will find a more detailed explanation about each of the exemptions available and the form to submit them. Do not forget the deadline is April 30th.

https://www.comptroller.texas.gov/taxes/property-tax/exemptions/index.php

To get the form:

https://www.comptroller.texas.gov/forms/50-114.pdf

For even more detailed information on homestead expeditions please follow this link below:

file:///Users/karlaarjona/Downloads/96-1740.pdf