When markets get hot, you need every advantage you can get when you are buying a home. Today we are going to look at one tool you can use: The Escalation Clause.

So what is an Escalation Clause?

Let’s look at our example: Brian and Susan really loved this home. The market has been so crazy, that we knew we needed to put our best offer forward. Susan really wanted the home but Brian was concerned about overpaying. This is where the escalation clause comes in.

An escalation clause lets you stipulate how much you are willing to raise your price if someone comes in with an offer higher than your own. You can also included a clause for your offer “not to exceed” a set maximum price you are comfortable paying.

In action this looks like this:

A home for sale for $225,000, and you LOVE IT!

You put in an offer at $225,000 with an escalation clause of $3,000 higher than the highest ascertainable, bone fide offer not to exceed $235,000.

So you are offering $225K but will agree to pay more if an offer comes in over your own – up to $235K.

If the owners’ other offers come in at $220,000 and $227,000. You are still in a great position to get the home you want. Your offer will now just move to $230,000. If a fourth offer had been made at $235,000, your escalation clause would protect you from paying more than you want. (Side note, you can make these offers without adding a “not to exceed” stipulation – you would just be offering to beat any competing offer by the amount you spell out in your offer.

Tips about the Escalation Clause 

1. Determine Your HIGHEST Price – what is the maximum this is worth to you.
2. Don’t go higher than you feel the property is worth.
3. Ask to see competing offers if you have to use your escalation clause.
4. Realize it might not guarantee an accepted offer – with all the other factors to each offer, things like cash offers, contingencies, too long of closing timelines can make your offer of a few thousands dollars seem less attractive.

Do you have questions for Kyle?

Have you ever gone into a store and immediately been swarmed by employees wanting to “help” you? Real estate open houses can sometimes feel the same way. Learn how to use open houses to your advantage whether you are buying or selling.

OPEN HOUSES for the Buyer

As a buyer, you should use open houses as a convenient way to see more houses. When you go in, be up front with the host about why you are there. We never try to pressure our guests, but there are times you might feel it. The agent hosting is there to help you answer questions about the house, not to get a new client. So please ask us questions! 

If you are working with an agent, let the host know who you are working with. This is let them know you are already well represented and just need to see the house. You can even ask your agent to come along to the open house if you the home is one you are serious about pursuing. 

But just don’t be afraid to stop in and see a home! Open houses are there for you. Enjoy yourself and see some great homes.

OPEN HOUSES for the Seller

This is a great opportunity to get people into your home with little to no pressure. The BUYERS we talked about above are who will be coming to see your home. Some will be more serious than others, but we put on open houses to give people an easy time and atmosphere to get serious about your home.

We build in a lot of marketing around your open house. We want to fill your home with potential buyers. We target our listings towards real buyers – and the first step is using our advertising to draw buyers to your open house. We run many of these on social media. 

Open House Tips

• DEEP clean your home.
• De-clutter and organize.
• Hide the presence of pets (make your home as welcoming to all as possible).
• Open the blinds – let natural light in!
• Open the windows to air out your home prior to the open house but make sure it’s a comfortable temp at the time of the open house.
• Be flexible with timing – we know some great times to host open houses. The more you can work with us, the more people we can get through your home!

When working with our clients, we always encourage them to get pre-approved for a mortgage. We want everyone we work with to have the best chance of getting the home of their dreams. We also want them to avoid any possible heartache or disappointment. Knowing what you can afford gives you the best chance to get that perfect home!

Starting with the basics: What is Mortgage Pre-Approval?

Mortgage pre-approval is when a bank or lender gives you written proof that you are able to borrow up to a certain amount of money to buy a home. This proves that you have the ability to buy the homes you want to put offers in on. They base this approval on your income, current assets, and employment. Normally, these pre-approval letters are good for 60 to 90 days.

4 Reasons You Should Get Pre-Approved

#1) They Show You Mean Business

Mortgage Pre Approvals are proof from the lender that you WILL be able to borrow X amount of money to buy a home. It’s not just an estimate! You will be able to get a loan for the pre-approval amount if you so choose. So it shows you mean business!

#2) You know exactly what you can afford.

No one wants to get in trouble on a new home and no one wants to find their dream home, only to realize they can’t afford it. A mortgage pre-approval lets you know what you can afford and allows us to have realistic expectations as we find that perfect place.

#3) Gives your offer POWER!

When a seller sees that you are pre-approved, they instantly know your offer is safe. When there are multiple offers, your offer will be secure, whereas someone without pre-approval will simply be an unknown and carry more risk. Also, your pre-approval gives a lower offer a better chance to be accepted. Eager sellers see that you are a sure thing and may even accept a lower offer because there is less risk.

#4) It saves you time.

Mortgages take time. When you are pre-approved for a mortgage the process speeds up. When we work through closing, you are steps ahead of the game and your mortgage will finalize much more quickly. This means easier and faster closings! You can get into your new home sooner and start making it your own.

If you are serious about buying a new home in Holland or West Michigan, get a pre-approval from your lender. Show your agent, the sellers, and everyone that you mean business! If you need recommendations for great lenders in West Michigan, please contact me. I can get you in touch with some of the best in the business who would love to get you pre-approved for a great loan.

Happy house hunting!
Kyle Geenen
(616) 403-0909

Whether you’ve verbalized it or not, when it comes to selling your home I know you’ve asked yourself if you really need an agent. When you hire a realtor, what do you expect them to do? I’m going to tell you something that some Realtors might not want to hear, but I need to be honest with you… If you’re going to hire a real estate agent to sell your home you need to read this.

THE TRUTH ABOUT SELLING WITH AN AGENT

Sadly, many Realtors’ only plan to market your home is to list it on the MLS and to put a sign in your yard. That’s it. Thankfully working for a great company like Coldwell Banker has surrounded me with agents that go above and beyond for their clients. BUT if that is all an agent will do for your home, why would you hire them?! As a seller, you have the responsibility to find an agent that has a real plan to market and sell your home.

When you start to look for a Realtor, you need to find an agent who has a command of marketing and especially online marketing. Take the time to interview agents and see what they can do for you and your home. Getting referrals is important, but don’t take the first agent you are referred to. Interview your options and find the agent that is going to hustle, invest, and has the skill set to market & sell your home.

WHAT TO LOOK FOR IN A Real Estate MARKETING PLAN

Facebook Presence and Advertising

Is your agent active and present on Facebook? Are their posts regular and engaging? Can you look at their business page and see that they have an audience to share with? Straight up ask them, do you invest in Facebook advertising for your listings? What does it look like?

Also, ask about HOW they market your home socially. Is it just reposting a picture? Do they showcase their listings with videos? What do they do to grab potential buyers’ attention? Are their pictures and videos professionally taken?

Online Real Estate Sites

Zillow, Realtor.com, Homes.com, etc. are where most people go to look for and find potential homes. As agents, we have the ability to invest in upgraded packages for our listings. This ensures that our homes get placed as better locations on the sites, are seen by more people, and your home’s online presence soars! You need to be asking your potential agent about their plan on Zillow and Realtor.com.

With as big of a draw as sites like Zillow and Realtor.com are, your agent is sending a pretty bad signal if they aren’t investing in marketing on those platforms.

Personal Website and Email Marketing

Most established agents have their own website. Ask how it is utilized for your home! Does your agent use it to spread the word about each and every listing? Do they have an email list and use email marketing to showcase new homes to potential buyers?

Get the whole Package

I hope this helped you see that as we go into 2017, you don’t need just a real estate agent, you need a real estate marketer. A great agent will drive higher levels of exposure for your home and will invest in each of their listings to make sure the right buyer sees your house.

Did you find this article helpful? If you think this article could help anyone else, please share it and help us get the word out. Click any of the social media icons at the bottom of the page!

What to look for when buying a home? That is a broad and big question! Although each individual will have their own specific needs, there are certain things to consider when looking for a home to buy.

What to Look for When Buying a Home

#1 – Know Your Budget – Every buyer needs to know how much they can safely afford before they even begin to look for homes. It doesn’t make sense to start searching for homes in the $350k when what you can afford is around $175k. This can easily lead to unrealistic expectations and some big let downs. Homes’ sizes, designs, features, construction qualities all vary significantly over that big of a price range. Know your budget and look at what you can afford.

#2 – In what community do you want to live? – We often start here as we being your home search. You want to have a good idea of what community and even a general part of a city you’d like to live in. My search will include a larger area, but if you are set on sending your kids to a particular school, we need to dial in our search within that district. Here are some of my first considerations:

• Schools – What is important to your family? Are you open to school of choice? You can check out school ratings here.
• Work – What is an OK travel time for your job? For example – A search radius of a 30-minute drive is much larger than wanting a 15-minute drive.
• Highways, Stores, Shopping – Do you need to be very close to grocery stores? Do you want easy access to the area highways?
• Neighborhood Types – Do you want families in a similar stage of life as your own? Do you like being in the city? Do you want more privacy?

#3 – The Home Itself: Interior – As we go through a home, here are common areas I direct our clients to explore.

• Flooring – Inspect the flooring to not only see if you like it but also check its condition. Would you want to replace any? Are there areas of concern?
• Windows – Are they in good condition? Are they new or old? Do they have storms on them? Screens?
• Walls – Paint? Wallpaper? Are they in good shape?
• Bathrooms – Do they fit your family? Are the plumbing fixtures stain-free, leak free? How much storage do they have? Vent fans?
• Kitchen – Does it fit your family? How much storage does it offer? Do you like the layout? Do you like the appliances? Do they work well?
• Rooms – Are there enough for your needs? How much natural light do they offer? Do you like how they feel?
• Mechanical Systems – Does the furnace, AC, etc. function well? Can we approximate their age? A home inspector will help a lot here if/when you are ready to buy the home!

Plenty of storage in this pantry!

#4 – The Exterior of the Home is important. It can hold a lot of what to look for when buying a home.

• Roof – Approximate the age and condition. When will it need to be replaced? No noticeable damage?
• Driveway – Is it safe and smooth? Is it easy to enter and exit with traffic?
• Foundation – Are there large visible cracks or gaps?
• Deck or Patio – Is it in good shape? On a wood deck, do the boards need just to be sealed or more extensive repairs?
• Garage – Is it large enough? Is it in good condition? Garage door openers?

#5 – Last but not least… how’s the home feel?

I put this last because it’s not very objective, but you should feel good about the home. I have had clients that just KNOW the moment they walk in. You want to be able to picture yourself in that home. If you can’t, let me keep working for you. We will find a house you will love to call home!

After we take these into consideration during our showings together, we will be in a great place to narrow down our choices. As we put in an offer, get it accepted, and move towards a completed sale, we will always make sure to get a great home inspection. Home inspections allow an expert and in-depth look into your future home. Great home inspectors are a true blessing and offer you peace of mind when buying a home.

Happy house hunting!

Kyle Geenen | (616) 403-0909

So you are selling your home? Congratulations! This is an exciting time. You may have outgrown your current home or just need to move for work or family. Selling your house is a time when it’s crucial to make sure you “do it right.”

Over and over I work with clients that have had trouble selling their home. “Why isn’t my house selling Kyle!?” Maybe they listed the house FSBO and couldn’t seem to get traction. Maybe they have tried with another agent recently and just didn’t get offers (or the right offers). And just maybe you are just thinking ahead and already know that there are definite things you can do to sell your home on the best timeline and for the most money. So let’s talk about why your house isn’t selling!

My House Isn’t Selling!

1.) Homes don’t sell when they are overpriced. – This is plain and simple. You can’t fool the market. You might love your home and have thousands of great memories, but you always have to be realistic when it comes to your home’s value.

A great agent and team will help you understand your home’s value in today’s market. This doesn’t mean I will tell you to slash your listing price, but I put in hours of market research and use my experience to know what homes like yours are able to sell for. On top of that, I know what together we can do to make your home reach its full potential. I just hate it when clients have been lied to and have to deal with the frustration of a stagnant listing due to having their home overpriced.

2.) Homes that are cluttered and messy don’t sell. – When someone sees your home online or comes through for a showing, it’s your one time to make a great first impression. You need your home to be welcoming and inviting. Take time to really clean and organize your home. I even recommend to some clients that they secure temporary storage if they are able, to make their home shine. Removing excess clutter and showing a home where everything has a place allows potential buyers to see themselves in your home.

3.) Homes that are completely empty can be trouble. – Many people have a hard time visualizing a space without furniture in it. You might think it’s a great blank canvas from them to see their belongings, but my listings have excelled through the use of professional staging.

If I may say so, the Geenen Group has BEST stagger in Holland, Zeeland, and all of west Michigan. The cost of staging is truly an investment that offers a huge return! Your home can look like it is straight out of a magazine. If you are doubtful that you could afford professional staging, please ask me. I would love to show you what it costs and how much more I can sell your home for. Take a look at this listing that was staged and sold with multiple offers in under a week (it was also a FSBO to Geenen Group success story).

Beautiful condo. Professional photos.

4.) Your listing photos stink. – Ok that was kind of harsh, but I see thousands of listing photos and I am amazed at how bad some listing look online! Gone are the days when you would call your agent and they would set up showings of homes that fit X number of beds/baths, this many sqft, and this town. We can make our first showing online just through our listing photos!

That is why I have made it my personal mission to take and produce amazing and beautiful photography for every home I list. I put the same care and effort into each home. My photos are a representation of me. I could never stand to have your home “showcased” with 15 phones taken from an iPhone.

The Geenen Group has also led the way in West Michigan with showcasing our listings with stunning hype videos. We take potential buyers into your home and professionally produce marketing videos that WOW.

5.) Your agent doesn’t market aggressively. – Getting your home in front of the right buyers, at the right time, it critical! You need an agent that is going to invest in the sale of your home. I only succeed when I make the sale of my clients’ homes successful. So I am invested in each and every listing I am trusted with.

I use every avenue of marketing I can to ensure that BUZZ is built around your home. I take this very seriously and do it personally. Ask your agent, “What are YOU going to specifically do to sell my home?” If they can’t clearly articulate their marketing strategy, we need to talk.

Let’s get your home SOLD!

When you combine all these pieces of the puzzle with an agent who’s driven for your success, you are ready for the best home selling experience! You can reach me (Kyle Geenen) anytime at 616-403-0909. That is my direct line, call or text. 

I would love to talk about what I could do for your home and how the Geenen Group can get your home SOLD.

Know the facts on buying vs. renting!

Ever heard someone who is renting mention one of the following “facts” about purchasing a home? It seems like I have heard them all.

MYTH 1: Mortgage payments are just too expensive.

In many cases, mortgage payments can be the same or less than equivalent rental properties monthly rates. On top of that, your payments are now building equity for you. When you rent you pay for the sole purpose of living in that home – and that is ok. But when you own your home, your payments build into your net worth as you own more and more of your home. It stays your money! Finally, the tax savings from your mortgage interest only makes it even more affordable.

MYTH 2: Buying a home is really complex.

Buying a home can be complex, but that’s why the Geenen Group is here to help. We expertly guide our buyers through the entire process and make sure you get the best home at the best price. You want a strong buyer’s agent in your corner to be your advocate and work for your interests. At the Geenen Group, we have an extensive network that we use to show our clients the best listings before they are off the market and even have access to listings before they come to market.

MYTH 3: You need a huge down payment to buy a home.

There are many financing options available to make the down payment required for you to buy your first home very manageable. By working with a Holland real estate professional, we can help you find the best financing for your exact needs.

For example, there are options with an FHA loan with down payments as low at 3.5%, and there are programs for conventional loans with down payments as low as 5%.

Do you know someone still stuck in the rental trap? Would you share this post them? The Geenen Group would love to show them the full benefits of homeownership and how they can realize their dream home.

You can always call me (Kyle Geenen) at (616) 403-0909

A large part of selling your home quickly, and for its highest price, is the first feeling that a buyer gets from the space. Making your home feel inviting, spacious, and move-in ready always helps increase your advantage over the rest of the market. These are some of my top HOW TO tips on getting your home ready for the best, quick sale.

SIMPLICITY SELLS when listing your home

Remove excess clutter and knick-knacks from the room. Potential buyers feel uncomfortable and cramped when surrounded by an abundance of belongings that are not their own.

This could be as straight forward as tackling an accumulation of shoes by the front door. This road block can be uninviting to new comers.  Gather up your family’s footwear and store it out of the way. Walkways to and from the front door should always be clear and welcoming.

For closets, you don’t wear it – it’s not worth the space. Take a look at your closets and pull out old clothes you know you’ll never wear again. Give them away and take a tax deduction. Get rid of extra hangers and plastic from the dry cleaners.

Fresh air wins

Opening the windows for at least 20 minutes a day lets fresh air in, and reduces odor, plus it brings a feeling of fresh energy to the place. As the home owner, it is easy to get used to certain odors. So ask me for my opinion or get the advice of a trusted friend.

This can especially be true for pets. Their odor can really be noticeable to people without pets. Always remove pets from home for showing, remove their beds or crates, and also store their food and water out of sight. I wish everyone would love your Fido or Fluffy, but trust me on this one, you want to play it safe.

KEEP IT LIGHT

Natural sunlight creates a feeling of warmth and happiness. Make use of all windows that bring in sunlight by pulling back the heavy drapes and raising the blinds. When you know of an upcoming showing, keep all lights on as this will welcome the potential buyers in and help create an awesome first impression.