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  • How to Sell Your Home Fast!

    How to Sell Your Home Fast!

    Selling your home is a big deal. You want to be able to sell your house quickly and find the right people who buy houses in your area. You want to get your home looking nice and sell it for the right price, but all of the work seems overwhelming and like it will take up too much of your time. The good news is with the right plan and the right real estate agents near you, you will be able to get that home on the market and sold in no time.

    Some of the steps to consider when you are ready to sell your house quickly include:

    The First Steps When You are Ready to Sell Your Home

    When you are ready to sell your home, there are a few steps that you must keep in mind. Knowing how these steps work and being prepared for them is one of the best ways to get the most out of the sale and ensure that you can get moved out quickly. Some of the steps to take to get the most out of your real estate investment includes:

    Working with a Real Estate Agent

    One of the first things that you should do when you are ready to sell your home is find real estate agents near you. Some people want to go the “for sale by owner” route, but this can take a lot more time and effort to complete than doing it with an agent. Be aware that it does cost a commission, or a percentage of the sales price, to hire a real estate agent. But considering they often take on all the work and can handle the showings, the legal documents, and more, they are often worth it to get results.

    How an Agent Can Help You

    There are a number of benefits to hiring a real estate agent rather than trying to do it all on your own. Some of these include:

    1. They help you list your home at the right price. This helps you to get the highest price possible, without your home sitting on the market forever.
    2. They can present your home in a way that makes it more appealing to potential buyers. You love your home and that is great, but a real estate agent knows how to make it shine to a buyer.
    3. They can bring in more potential buyers. Most buyers like to work with an agent. And many times your agent will already have a list of people who may have some interest in the home. This helps you to get the best offer possible.
    4. They handle all of the paperwork for you. This is one of the most difficult things to do when you try to sell your home on your own. With the help of a real estate agent, you will not have to worry about all of the paperwork and legal stuff because they will do it all.
    5. The agent can get the best offer from each buyer. When the home sells for more, the agent earns more. This incentivizes them to get a better offer on your home.
    6. Can negotiate after the inspection. While you most likely will need to get a few things done on your home after the inspection, an agent will make sure the work is kept to a minimum.
    7. Speeds your closing time. This helps you to get the home closed on and the money in your account so much faster than before.

    Typical Costs for a Real Estate Agent

    There are several factors that will come into play when you have to pay for your real estate agent. Some agents will charge more if the sale price is below a certain threshold and then will lower the rate if the price is higher. Some may have other deals and incentives to get sellers to work with them. The average commission for most real estate agents is 6%.

    Before you sign with an agent, take the time to ask about the commission they will earn. This helps you be prepared and can make it easier to factor in this cost when you finally get an offer on the home. You as the seller will be the one who will pay the commission to the real estate agent. This 6% is often split between the buyer’s and the seller’s agent, but the seller is still responsible for the whole amount.

    Picking a Good Sale Price

    The next thing that we need to take a look at is how to pick out a good sales price for your home. There are a lot of different things that go into determining a price for your home. While you want to get top dollar for your home, you do need to be realistic about what a buyer is willing to pay.

    To determine the price of your home and what to sell it for, you must consider its location, how big the home is, how many rooms and bathrooms, any upgrades, and even what other homes in the area are selling for as well. And since each home is a little different and very unique, this can be hard.

    One way to figure out a fair sales price on your home is to perform a “comps” analysis. This is when you and your agent will look at some of the recently sold comparable homes on the market. While it may be hard to find one exactly like your home, it can give you a better idea of how much similar homes in your area have sold for.

    This is also why it is important to work with that real estate agent we talked about earlier. They know how to handle the pricing of your home and will help explain it along the way. They can take in all of the factors for you and come up with a fair price that is likely to sell your home quickly.

    Staging Your Home

    If you have already moved out of your home and no longer live there, one way to sell it faster is to stage the home. This helps to give your potential buyer a look for how the home can be used and gives them a vision of all the potential in the home. Never leave the home completely empty because this slows down the process.

    List the Home and Start Showings

    When you are ready, your agent will come over and sign some paperwork with you. This helps both of you be on the same page the whole time and can avoid confusion later on. The agent will also take pictures of the inside and outside of the property so they can show potential buyers, both online and in person. It is then time for the agent to list the property and wait for the calls to come in.

    At some point, you will need to show your home. The days of  an ‘Open House’ are gone for now, and most agents will hold private showings. The agent can handle this, but you must make sure the home is clean and ready to go. And you may have to be out of the way for a bit. Sometimes it only takes a few showings and sometimes you may need to deal with quite a few showings. But these are the best way to sell your home. All buyers will want a chance to look through the home and see if it is right for them.

    Accepting an Offer

    At some point, you will get an offer on your home. If the offer sounds good to you, you can accept it and move on with some of the inspections and other things that need to get done. You can also provide a counteroffer to better meet the needs you have if the buyer’s offer is close to your original offer. If the offer is way off, you can choose to decline the offer.

    The offer will often include information on what the buyer expects. They will say what they want to purchase the property for along with the preferred closing date, any inspections they want, and other contingencies. The most common contingencies including the buyers securing their financing and the buyers selling their other home.

    The Different Types of Inspections

    Your buyer may choose to do a few different inspections to make sure the home is safe and secure. If there are some major problems with the house and they are found during the inspection, then you will be responsible for them. Most home buyers choose to do a full home inspection that checks out quite a few different things, but they can also do a few other inspections based on their needs. The most common inspections include:

    1. Pest and rodent inspection
    2. Radon inspection
    3. Chimney inspection
    4. Roof inspection
    5. Lead-based paint inspection
    6. Flooding damage inspection
    7. HVAC inspection

    As we mentioned, the full-home inspection is the most common, though some may choose the others if these problems are common in your area. The buyer will usually put this in their offer so you can decide which inspections you want to participate in ahead of time. The cost of the inspection falls to the buyer. The cost to fix anything falls to you.

    If there are some repairs necessary on the home, you can typically negotiate these. When the buyer has some minimal repairs to do, you may consider doing them and finishing the process. Other options are to offer the home “as is” so you won’t do any repairs or offer a credit for the work to be done. The credit may work if there is a time crunch on the sale and you don’t have time to get it done. Homes sold “as is” often take a lot longer to sell.

    Closing On Your Home

    Once all the inspections are done and you have moved out of the home, and your home buyer has secured their financing, you can close on the home. These often happen at two different times. You will meet with the lender or a title company to sign off on the home and agree to the sale.

    Later, sometimes the same day and sometimes later depending on the schedules, the buyers will go in and complete their paperwork to buy the home. The funds will go to pay off the rest of your mortgage, your real estate agents fees, and any other closing costs that are necessary. Whatever is left will be deposited in your account and can be used for purchasing your new home, paying off debt, or other uses depending on your needs.

    Typical Closing Costs

    There are a few closing costs you will need to pay before you get any money from your home sale. Some of these include:

    1. Any attorney’s fees for writing up the documents.
    2. Credits towards the closing costs that you and the seller agreed on.
    3. Any HOA fees if applicable.
    4. The prorated property taxes.
    5. Any escrow that is agreed on and other closing fees.
    6. Title insurance
    7. Transfer tax
    8. Agent commission.

    There are some other fees that may be required based on the bank you work with and where you live. You and your agent can discuss these fees before closing so you aren’t caught by surprise.

    Are the Rules Different in Each State?

    There are a few things about selling a home that will vary based on the state you live in. In fact, depending on where you live in each state the rules may be slightly different as well. Knowing what these differences are in your local area can be tough, but this is another benefit of working with a real estate agent to get things done.

    First, the amount in taxes you pay will vary based on one state to the next. Some states will require the seller to pay taxes on the home up to a certain point and others will require the buyer to handle this. Some states, including California, have a special tax on any home sold that may add to the closing costs you must work with.

    Most states have requirements that the seller needs to include any information about the property that may deter the buyer from making the purchase. This is often presented to a potential buyer before they even put an offer in on the home. This could include any updates you did on the home, along with any potential problems that you know about.

    You may also need to work with an escrow account. The way that this is used will depend on the state you live in but allows a little protection on both sides. It ensures that both parties know where the money is and they can get it back if things go south during the deal. Talk with your real estate agent to find out if an escrow account is necessary for you.

    Where is Everyone Moving During the Covid-19 Pandemic?

    Due to Covid-19 pandemic many Americans are ready to live the cities and move somewhere more rural. This is great news if you have a home for sale in a rural area as you are more likely to attract a good buyer for a good price.

    In fact, six out of ten Americans have said that they would consider moving to a less populated area. Some may have been considering this before. Some may be tired of living with all of the health mandates. And some see these rural areas as safer areas to be because with fewer people there, it is a much safer place to be right now.

    This is a common trend no matter which state you live in. Rural homeowners who are looking to make a switch and get out of their home into a new one will find that is a sellers’ market and they will do well. In fact, it is likely that you will have a few offers to sweeten the pot.

    Selling your home is a big experience. You have to get the home prepared and looking nice while cleaning. You need to find a good realtor who will work with you and find the best deal. And you need to finish all of the inspections and other work after you accept an offer. But when you have things organized and ready to go, you will find that it is easy to sell your house quickly.


  • Is a Reverse Mortgage for You?

    Is a Reverse Mortgage for You?

    What is a Reverse Mortgage?

    If you are over the age of 62 and have most of your net worth tied up in your home, but you don’t feel like moving yet and want to stay put in your home, then a reverse mortgage may be the right option for you. It is a loan that allows you to borrow on the equity of your home, without having to sell the property or take out a risky home equity line of credit. Once you no longer live in the property, it can be sold to pay the loan balance off to the bank.

    A reverse mortgage is a great option to help you get money now without having to leave your home. But it isn’t the right choice for everyone. Let’s take a look at how a reverse mortgage works and why you may want to consider this for your needs.

    To keep it simple, a reverse mortgage is a line of credit. When a homeowner is 62 years old and has a lot of equity in their home, they can choose to borrow against the value of the home, receiving those funds either in a line of credit, a fixed monthly payment, or a lump sum. Unlike a forward mortgage, which is what you used to purchase the home to start with, the homeowner will never need to make loan payments for the loan.

    Instead of the homeowner making the payments, the entire loan balance becomes due and is payable when the borrower sells their home, moves away permanently, or when they die. When the home is sold, the amount of the reverse mortgage is paid over to the bank or financial institution that originally gave the money.

    There are some federal regulations assigned to a reverse mortgage. For example, all lenders must structure the transaction so that the amount of the loan will not exceed the value of the home. Also, the borrower and their estate will never be responsible for paying the difference if the balance of the loan becomes more than the value of the home. This requires banks to be careful about which homes they will do reverse mortgages are. If the market value goes down too much, then they may not get their money back from the loan.

    Reverse mortgages are nice because they will provide some cashflow to seniors who find most of their worth is tied up in their homes. They are complex and a little costly though so you may decide it is not worth your time. However, for those who qualify and decide to use this type of mortgage, they can get instant access to the equity of their home without the risks of a home equity loan and while still living in the home. Once they sell the home or pass on, the sale of the home will go to paying back the loan.

    The Benefits of Getting a Reverse Mortgage

    There are a lot of great benefits to working with a reverse mortgage, as long as you use it properly. Not everyone will choose to work with the option because it doesn’t work the best for them. But for others, it is a way to get rid of a traditional mortgage payment or get access to the equity of your home while you still live in and own the home. Some of the other benefits of working with a reverse mortgage include:

    Provides Flexibility

    This type of mortgage is flexible, allowing you several methods to choose from based on your home, the product you choose, and more. Households who have a specific financial need can choose the right product to help provide relief in their finances. You can use this type of mortgage even without financial issues because it can become a good financial planning tool for you.

    Stay In Your Home

    You could sell your home and tap into the equity that is there. But then you have to leave your home and find somewhere new to live. If you work with a reverse mortgage, you will be able to live in the home for as long as you want, without having mortgage payments. You can use the money, in most situations, for any purpose you want. This provides you a comfortable home without moving and with lots of additional financial resources.

    Low Risk of Default

    Unlike what happens when you work on a home equity loan, this reverse mortgage will not take your home away from you for non-payment. You do not need to put payments on the loan at all until you are ready to permanently ready to leave the home. Keep in mind that you will still be responsible for the insurance, taxes, and upkeep on the home. Outside of that, the lenders of these mortgages will never have a claim on your income or other assets.

    Tax-Free

    Since this type of mortgage is a loan, the money you receive from it is often tax-free. This is true whether you decide to turn this into a fixed-income that you earn a little bit each month or if you choose to take it as a lump sum all at once.

    No Restrictions

    It is possible to use the funds that you receive from the reverse mortgage in any way that you would like. You can choose to use it for a rainy day in case something happens later, to pay for your children’s education, to pay for insurance, to go traveling, or even for day to day cost of living. There are no restrictions on how you can use this money.

    Flexible Payment Options

    You get to choose the type of loan that the reverse mortgage turns into. You can either get all of the loan money from it in a lump sum, credit line, or an annuity. No matter which one you pick, all of the money comes to you at once. You can also choose to work with an option that sends you the money each month or every other month, so you receive another source of income for as long as you remain in the home.

    How Do I Qualify for a Reverse Mortgage?

    Before you apply for a reverse mortgage, it is important to learn whether you qualify for this type of mortgage or not. Each bank may add additional qualifications based on what they like to see before approving the mortgage. The basic requirements for qualifying on this type of mortgage include:

    1. The youngest borrower on the title needs to be a minimum of 62 years old.
    2. The owners must use the home as their primary residence. If you use the property for rental income, you will not qualify.
    3. There must be enough equity in the home. The exact amount of equity will vary from one bank to another. The bank wants to make sure they will get their money back. And you will need to pay off your mortgage plus have some to live off later. The more equity that you have in the home, the better for you.
    4. All borrowers must meet financial criteria. These rules are established through the HUD.

    If you do not meet all of these requirements, do not apply for the loan. Most banks will not work with you and this will just be a waste of your time. Instead, spend some time getting things in order and prepared so you can apply for a reverse mortgage later on.

    What to Expect When Applying for a Reverse Mortgage?

    When you are ready to apply for a reverse mortgage, there are a few steps that you need to undertake. First, you need to choose which financial company you would like to work with. Each one will have their special requirements you need to follow so take some time to do your research and pick out the right one for you.

    Once you have narrowed down your choices, it is time to apply. You will need to feel out an application that will provide the bank with your name, contact information, information on your finances, information on the home you would like to do the reverse mortgage on, and your credit history.

    Fill out the application completely, putting your best foot forward so the bank is more likely to offer you the reverse mortgage. You will likely need to provide proof and documentation of all statements you make about the property and your financial history. If the financial institution asks you for additional materials, submitting them promptly will help the process go smoothly.

    Hopefully, you looked to see what qualifications you needed to meet before you start. This will help the process go well and can prevent any heartache later on because you don’t meet the minimum requirements. While there are other reasons the bank may choose to deny your application, if you do not meet their minimum requirements, they will deny it before you get any further in the process.

    Which Banks and Institutions Specialize in Reverse Mortgages?

    When you are ready to apply for a reverse mortgage, it is best to choose a bank or other financial institution with the right experience to get this done. They can walk you through the process and ensure that you receive the care and attention necessary. Some of the best banks and institutions to consider for your reverse mortgage includes:

    • FirstBank
    • Quontic Bank
    • M&T Bank
    • The Federal Savings Bank
    • Townebank
    • Goldwater Bank
    • Resolute Bank

    In the past, Wells Fargo and Bank of America were two of the big names in reverse mortgages. In 2011, both of these banks announced that they would no longer offer reverse mortgages to potential customers in the future. You can also check with your local bank to see whether they offer some reverse mortgage options to help you.

    Are There Any Downfalls to Reverse Mortgages?

    There are a lot of benefits to choosing a reverse mortgage. However, there are times when you may want to hold off and not get this kind of mortgage at all. Some of the downfalls that come with a reverse mortgage include:

    1. High upfront costs: Lenders can make money on a reverse mortgage in the same way they do with a conventional mortgage. They do this by charging a lot of fees upfront for interest, points, origination, and more. You need to weigh the costs of doing this before jumping right in and see if it makes sense for your financial situation.
    2. Mortgage Insurance: Even though there is no worry about defaulting with a reverse mortgage, many banks will require mortgage insurance to help mitigate some of the risks the lender takes on, such as the home losing value.
    3. Other fees: The borrower of a reverse mortgage will still be responsible for all of the repair and maintenance costs on the home, the upkeep, the homeowner’s insurance, and taxes. These costs will not go away when you get a reverse mortgage.
    4. Need to have a high amount of equity: To even qualify for this mortgage, there needs to be a substantial amount of equity in your home. While applying, a lender will offer a percentage of the value of the home, based on your age and the program. When you do this mortgage, it needs to pay off any existing mortgage that is on the property. If your home doesn’t have enough equity, you may not qualify.
    5. Products are complex: A reverse mortgage may sound simple, but it is not always a suitable option for every homeowner. You need to look through the paperwork carefully to help make informed decisions. Learn how payments are made, how costs are charged, and all the other rules you will need to follow.

    There are a lot of benefits to getting a reverse mortgage and many homeowners decide that it is the right choice for them. It is important to understand how these reverse mortgages work and do your research to see if they work well for your needs or not. They can be wonderful financial tools for many, but this doesn’t make them the right choice for everyone. Talk with a lender and explore your options so you are well informed if a reverse mortgage will work for you.