Is it time to Sell?

Is it time to sell my house?

The short answer is, it depends on what your goals are. Having said that … it’s ALWAYS time to sell your house.
The truth is that there is always a market - it’s just a matter of whether the current market is right for you to buy or to sell. So, how can you tell?
First, it’s important to know what you want to accomplish. Maybe you want to downsize. Maybe you want a bigger house. Maybe you have to move. Whatever it is, you must first determine what your motivation is.
Next, you have to find out how much you are likely to get for your current house (in today’s market), how much you are likely to pay for the house you want to move to (in today’s market) and how much you can afford to borrow and pay per month (in today’s market).
Notice how we keep talking about “today’s market”? That’s because it’s important to remember that the market that exists TODAY is the only one that matters RIGHT NOW. It doesn’t matter what your house was worth last year or what a house you like was selling for last year or what the interest rates were a month ago. Those are gone. Period. They don’t matter … so put them out of your mind.
Get a real estate professional to do a market analysis on your home (or even ask two or three to do it for you). What they come up with will reflect the market as it stands today. Deduct your current mortgage, anticipated real estate fee, any property transfer fees, the cost of unavoidable repairs and changes to the house and you have the funds that will be available to you (from the sale of this house) for any new purchase.
If you know which house you want, get the same type of market analysis done for that one. The result will tell you what you should reasonably pay. Most correctly priced homes will actually sell for 3% to 8% less than the asking price, depending on the location and the state of the market. In a strong sellers’ market, homes will often sell for more than the asking price as hungry buyers bid the price up. Likewise, in a strong buyers market the sale price might be driven down by a larger percent as buyers refuse to pay as much.
You’ll also have closing costs and other expenses of buying and these should be added to the anticipated purchase price.
Taking the proceeds of your sale, along with any other amount you expect to put toward the purchase, from the total purchase price will produce the amount you will need to borrow in order to get into the new home.
Now here’s the bottom line: If all of the numbers above work for you and you are comfortable with them, and if you want to have the other house instead of the one you now have, then it’s time to sell your house. If any of it does NOT work for you, then it’s NOT time to sell your house.

Mortgage Loans - Info from the RE Answer People.

Todays Blog topic is going to be Mortgage loans. Getting a home loan can be tricky business. Well, maybe not getting one, but getting one that you can afford can be tricky.


We suggest that taking on just any home loan can be like buying shoes without trying them on because “if you want to buy a home, there is a lender that will find you a loan…even if there is no way you can possibly afford it.” Since it’s your credit that’s at risk, it is your responsibility to fully understand the loan for which you’ve applied.

Make sure you do your research and find out what the worst case payment could be, adding in the property taxes and insurance. This should help predict what your mortgage will be for the next few years. Don't forget to factor in the mortgage insurance if you are not putting down 20% or more. Mortgage insurance is an insurance that the investor requires that reduces their risk when a smaller amount of down payment is put down. In the event you default the mortgage insurance will pay the investor the portion they are short to cover their costs. It is used primarily if they have to sell in a slow market or when the house has been damaged or market value has decreased.
If you have any questions don't hesitate to ask them in our comment section. We will respond in a timely manner. We love sharing our knowlege with you. The Solutions Team www.solutionsteam.biz

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Zoning

Hi everyone! Just wanted to talk about municipal zoning as part of your due diligence this week as we have had a transaction with a lot of problems because of a zoning oversight.

When you are purchasing a property, even if it is a straight forward sale, it always makes sense to check the zoning for that particular area. A good example of this is a buyer a few years back bought a fairly new home on a dead end street. They went to the city prior to closing and found out that on the master plan their quiet little street was a major thoroughfare. This could have been a horrible shock to them, but they did their homework. They decided that it was far enough down the road that they would go ahead and buy the house. They sold it about 8 years later, and the road came through a couple of years after they had sold it. It worked out fine for them, but not so good for other people.

We have a client who bought a bank from a bank. Banks always sell their properties AS IS. They also have the paperwork to cover their bottoms just gloriously. They don't need to disclose anything! Come to find out, the county had kicked out the previous owners prior to the bank owning it because of zoning violations and deemed the home inhabitable. That's was why he gave it back to the bank. This was unknown to the buyers. They lived in the property for several years. Now when they went to sell it, they couldn't get the necessary rebuild letter (A letter required by a lender saying that in the event the property burns down the county or city will allow the home to be rebuilt) from the county as they were occupying it illegally. We are hoping we can work this out, but it would have been so much easier to remedy prior to purchase, while the bank was holding the bag not the new owners. They would have most likely gotten a huge discount on the purchase price.

The caveat " Let the Buyer Beware" is always great advice. Cross your T's, dot your I's and check out the rest of the alphbet also. Zoning is one of those things that really needs to be verified by the buyer, don't trust anyone else for that job... don't trust your realtors word, don't trust anyone but the city official who is in charge, and then be sure and save his or her name and the date they gave you the zoning... Better yet, get it in writing. A residential zone can change, so can any other zoning. Ask to see the master plan.

If you have any questions concerning real estate you are welcome to call us during office hours. 435 884 9449.