Updated: Sunday, December 17, 2017
What To Do When Your Home Isnt Selling
When sellers start the home-selling process, no one wants to think "What would happen if my home doesnt sell?" But before you panic, recognize that there are many things that you can do so you dont wind up in that position.
Tip 1: Understanding the real estate market and the value of your home will help you avoid this dilemma. The first key point is to get educated about the market. Read your newspapers, online real estate sites, and consult with the best experts in real estate for your area to determine the sales price.
While all that may seem basic, youd be surprised how many sellers >Tip 2: Fix up your home. Most buyers dont want to purchase a big list of must-do fixes in order to live in the home they just bought. Yet, some sellers think that its a waste to spend money on a home that theyre moving out of soon. Thats quite a predicament. Both sides have valid points except one side-buyers-might be in a stronger position. The seller wants out and if the home is a mess, many buyers will simply move on to the next best house.
Yet, if a buyer wants it badly enough, he/she might agree to purchase your home but its guaranteed youll take a financial hit as the buyer will want to discount the price for the problems that need fixing. In the end, you might have to fix the issues before the sale anyway. So, starting with a house that is in >Tip 3: If you need to sell your home, dont pull it off the market because you think the season isnt right. Buyers who need to buy a home will keep hunting through all the seasons. There may be some slow times but if people need a house, theyll keep looking even in the unlikely times.
Tip 4: Consider incentives. Yes, you can make your home more appealing by tossing in some incentives. Its best to speak with your REALTORreg; about which incentives are best for you to offer. Even practical incentives can help get buyers to your home to view it. These incentives can help encourage the buyer to move forward, especially if other challenges arise.
Tip 5: Stage your home. This is not the same thing as fixing up your home. Fixing up your home includes daily maintenance and repairs. Staging your home involves using experts to make your home showroom-readylike a model home. I know you might say that all your friends tell you that you have fantastic taste but, trust me, if youre serious about selling your home, then its worth at least having a consultation with an expert in the industry.
Heres why: They are trained to stay on top of the trends that have mass appeal. They also offer a fresh set of eyes on your home. They might easily point out something that you never saw before because youve been living in your home for a long time. They will look at your home from an outsiders perspective and thats exactly what you need.
Taking the time to, at least consult with experts, allows you to gain knowledge and information about your home and the market place. What you do with that is up to you, but it may just be the difference between a For Sale sign and a Sold sign hanging outside your home.
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How to Keep Your Mortgage Approval Approved
You know how tough it is to qualify for a mortgage.
Proof youve got a long-term job with ample income. A credit score to the moon. Your lifes savings as a down payment. More cash stashed away. A debt-to-income ratio to die for. For some, tax returns for the last two years.
Youve been there, done that. For weeks now. Maybe a month or more.
Youve fought the good fight, youve run the gauntlet of mortgage qualifications and you have your signature-tired hands on that coveted home loan approval.
Now, all you have to do is not blow it.
For goodness sake, dont make any surprise financial moves that could cost you your home loan.
Your mortgage approval is primarily based on documenting your income and assets, your equity stake or down payment, your credit and the cash youll have left over after the deal is done.
Once you have a mortgage approval, if you change the profile of any one of those qualifiers, you could have to kiss your mortgage goodbye.
Lenders today dont just check your qualifying information once or even twice. Three, four or more checks, of one document or another, arent out of the question in todays tight lending market.
Avoid big purchases - If you buy a new car, change the lease, or acquire another large possession, it could show up on your credit report or bank statement.
The lender could think youve gone beyond the risk the lender is willing to accept on your mortgage - especially if you qualified by a hair.
If the new loan or purchase amount upsets the debt-to-income ratio the lender used to approve your home loan, your mortgage could go "poof."
No new credit - Likewise, dont open new credit cards, even for a zero interest rate. Those credit card offers will come streaming in after you close your mortgage. Just wait. The lender didnt approve you based on the additional card or extra loan.
Pay your bills - Also, pay your bills on time, even if theres a dispute. Stop paying a bill and the blotch on your credit report can block your mortgage.
Keep your job - Be kind to your boss and dont get fired. Also, dont go looking for new work right now, unless its a second job to make more money.
Certain job changes also can affect how the lender rates your creditworthiness.
That includes a job change between industries, a job change to start a new company and changing from a job with a salary to a job that pays by commission.
On the other hand, get a promotion and a raise and you should be fine.
Dont cash out - Leave your stashes of cash alone. Dont transfer large sums of money between bank accounts. Dont make random, undocumented deposits to or withdrawals from your bank account.
Dont be stupid It should go without saying, but criminal activity, trying to buy a second home and trying to add a co-signer or name to the loan, after approval, could all also get your mortgage canned.
Remember, stuff happens. There are events beyond your control that could cost you your mortgage. A pink slip. A divorce. Hospitalization. The co-signer bails.
However, once your mortgage is approved, do keep tight reigns on what you can control.
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Why The Next Two Weeks May Be The Best Time To Buy New Construction All Year
If youre looking to buy a home and you would really like to get something in escrow before the end of the year, you might be facing a "slim pickins" situation. Inventory issues have plagued the market for several years, and despite a positive real estate outlook, the lack of homes has kept many buyers out of the game.
Thats one of the reasons home buyers have been choosing new U.S. homes. They jumped last month to the highest level since October 2007, ldquo;a sign that Americans mdash; unable to find existing homes mdash; are turning to new construction,rdquo; said USA Today. ldquo;New home sales leapt 18.9 in September to a seasonally adjusted annual rate of 667,000, the most in a decade. Sales rose in all regions including the South, where they increased nearly 26.rdquo;
Existing home inventory isnt expected to get better until at least the last half of 2018. So, if a brand new home is something youd consider, think about this: the next two weeks could be the best time to buy all year.
Builders are especially motivated to move their homes this time of year so they can get them off the books. Be sure to ask in the sales office about "featured" plans or homes, which may mean the builder is willing to work with buyers to get these particular homes sold. While that may not mean a discount on the price, builders will often throw in upgrades that make them more attractive.
"A lot of the national builders are publicly traded companies. They need to meet sales goals and answer to the shareholders of that company," said Inman. "For that reason, toward the end of a quarter, builders tend to be more aggressive with their incentives in order to meet these sales goals. The December holiday season is another great time to buy. Most of the country is out shopping and traveling to see family. Very few people shop for homes this time of the year. For that reason, tis the season to find some great incentives to purchase a new home."
Many builders also offer thousands of dollars in incentives to buyers who choose to get their loan through the builders preferred lender. Those incentives mean "it actually may be less expensive to buy anbsp;new homenbsp;than a resale," Ron Sozio, builder client >
Those builder incentives can include closing costs and/or a buy-down of your interest rate, and can be as much as two or three percent of either the sales price or the loan amount - be sure to ask which one so you have a clear understanding of what youre paying.
Want more reasons to look at a new construction home? How about the fact that its brand new, never been lived in, and reflects your needs, taste, and >
If you are going to go look for new construction homes, make sure you bring your real estate agent to ensure you get the best deal. "Some buyers dont feel anbsp;real estate agentnbsp;is necessary whennbsp;building a new home. They think that because there is a sales agent on-site they dont need to bring in anyone else, right? Wrong," said The Goodhart Group.
"This mistake could cost you. That on-site person works for and represents the seller. A real estate agent will work on your behalf. A good one will know what questions to ask that can get you a sizable closing cost credit from the seller. Not to mention -- a seasoned agent will know how to negotiate the contract for upgrades and finishes that dont come standard with the home. Perhaps most important is the fact that you dont pay for the real estate agents service. "The builder pays YOUR agents commission so it costs you nothing to have someone represent you during the new construction process."
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