How to Sell Your Home When the Market is Down

When the market is down, the easiest way to sell your house fast is to lower the price. But lowering your asking price isn't the only solution. You can also attract buyers by adding new features that enhance the value of your home.

Here are a few tips to sell your house at the best price:

Differentiate your home from your neighbors

You can attract buyer attention by differentiating your home from your neighbor's. For example, custom additions such as a new roof, landscaping, or high grade windows can make your home stand out from the rest. These features not only make your house more attractive but also enhance its value.

 

While adding new features, it’s best to opt for designs and colors that will impress most people. Any new feature should complement your home. For example, building a patio next to your outdoor swimming pool is a great idea.

However, resist the temptation to overspend. Of course, enhancing the appearance of your home may attract buyers, but it is not always easy to recover all the costs while you sell it. There is absolutely no example to prove that the new shingles on your roof will substantially increase the value of your home. If you're planning to invest a lot of money in improving the appearance of your home, do some research and add features that are more likely to recover their costs.

If you have recently added some interesting custom features, don't forget to include them in your home's listing. 

Clean the clutter

Make sure that your home is free of clutter when potential buyers come to see it. Clutter turns off people immediately. You can make your rooms look larger by removing some furniture. Also put away personal items and family photos. And if your budget permits, you should consider hiring a stager. Be willing to shell out a few thousand dollars if you are planning to rent modern furniture for showing your house.

Sweeten the deal

You can attract more buyers by sweetening the deal. You can, for example, offer to pay the buyer's closing costs. These deal sweeteners will help you to attract more buyer interest. You can also consider offering a transferable home warranty.

Improve curb appeal

Don't overlook the need to enhance your home's curb appeal. When a buyer takes a look at your house, the first thing they see is its external appearance. So make the exterior as attractive as possible. Apply a new coat of paint before listing your home for sale. You also need to keep your garden and lawn in good condition. Appearance means a lot in real estate.

Make sure that your home is ready to move in

Make sure that your plumbing and electrical fixtures and appliances are in working order. They should also comply with existing building codes. When potential buyers visit your home, they should get the impression that the home is ready to move in.

Price it right

Your home should be priced appropriately. You should consult a real estate agent to know what comparable homes in your area are selling for.

Your home doesn't have to be the least expensive home on the street. That said; it must still be reasonably priced.

 

The bottom line

It is not exactly easy to sell your house when the market is down. However, by adding a few interesting features and keeping your home in great shape, you can improve your chances of finding a buyer.

Investors Beware: Don’t Fall for These Real Estate Blunders

At times, the real estate market appears truly hot and moves up really fast. Many people think it’s similar to a stock market, but the reality is different. For a successful real estate investment, a long-term approach is required.

Here’s a list of some common, but costly mistakes to avoid in the real estate field:

Selecting a house on the basis of current décor

Keep in mind that when you buy a home – the house is more important than the things within it. Look beyond decorative items and try to see how strong the bones are. Pay attention to things like the square footage and floor plan to figure out whether your belongings will fit appropriately.

Buying without research

Researching the neighborhood is of utmost importance before you select a property. You’re buying more than simply a house – you’re buying a piece of real estate with land around it. Find out details of the area and amenities. Also study the school system to ensure your address is in line with the appropriate school district. Try attending a community meeting if you can.

Buying without an expert inspection

Home inspection professionals can reveal many things about a property that might not be visible to you. Make sure you hire an expert with a good referral and sound experience in the field. Insist on a written report which includes photos. Photographs will help you see the condition of areas you might miss out in the normal course.

Not considering hidden costs

There’s more cost involved in buying a home than what you pay upfront. There’s a lot of spending beyond that. Find out the details regarding property taxes, water bills, and electricity bills.  You also need to consider investing in required furnishings before you move in.

Incorrect bidding at an auction

Though a starting bid for a property on auction might sound like a great deal; you can’t be sure that the same will hold true for the final price. Plan a strict budget in advance and make sure you don’t exceed this in the excitement resulting from a bidding war.

Also keep in mind that with an auctioned property, you will not get any warrantees and guarantees. You’ll not be able to get the home inspected too. Find out all associated liabilities like liens and taxes payable which might convert a good looking deal to a really bad one.

Not marketing your home correctly

When it comes to selling your home, you need to market it in different ways. Simply putting up a "for sale" board isn’t enough- you need to deploy other marketing tools too. Discuss marketing options with a real estate agent and what he can contribute.

Putting up photographs and having virtual tours online is a good idea. Include floor plans as well. These enable buyers to see the complete layout of a home and decide if it’s suitable for them.

Not getting an agent

It's important to have an expert at your side who understands all complexities. You cannot get included in the multiple listing service (MLS) without hiring an agent. Because of this, other agents will not know that you’ve put your property up for sale. Also, when prospective buyers come, you’ll have to show them around yourself.

5 Options to Consider if You Can’t Find a Buyer

Selling a house can be difficult if there are too many houses in the market. If you have a home for sale, you probably already know how difficult it is to find a serious buyer in the existing real estate market scenario. Now, in case your search for a buyer is taking longer than you expected, here are a few options you can consider:

Rent the house 

Renting allows you to generate some income from a property that has been in the market for a while. Of course, you can't make a lot of money by renting, but this is definitely an option you can consider if you feel that finding a home buyer is taking longer than usual. What's more, if you place it on rent for long enough, the market conditions in your locality may improve. People who hold on to their property during a slump will be able to sell it for a higher price when the economy recovers.

Not every seller will want to rent his house. They suspect that the renter will not take proper care of the property. What's more, renting your house to the wrong person can invite a lot of trouble. Evicting a problem renter may take many months and cost a few thousand dollars.

Lease the house

Leasing your home is another option you can consider. When you lease your house, you will receive an extra fee besides the standard monthly rent. Of course you will have to sell the house to the renter at a later time in the future for a pre-determined price. Now, in case the renter decides not to buy the house later, you can keep both the rent and the extra fee.

Rent the house for short periods

If your house is in the vicinity of a tourist spot, you can consider renting it for short periods. Some companies also rent homes to provide accommodation to their non-permanent employees. In popular tourist areas, you can find brokers specializing in short-term rentals.

Sell the house to a realtor 

Some big realtors buy homes and later sell them for a profit. Since they have huge cash reserves, they will have no trouble holding on to the property until they find a good buyer. However, you can't expect these buyers to offer a good price. You may consider this option only if you are desperate to sell or are willing to accept a lower price.

Short sale

This is the least attractive of the five options we discussed here. Lenders want to avoid foreclosures at any cost. So if you are unable to pay off your home loan, the lender might even consider selling your home for a price less than the actual value of your loan. This allows the bank to get a bad loan off their books. They also save the expenses involved in the foreclosure process.

The bottom line

Depending on the market conditions, finding the right buyer may take a year or more. None of the options discussed in this article are ideal; nonetheless they allow you to generate some income while you are still holding on to your property.

Remember, you can always rely on a free home valuation report from Neighborhood IQ to help you in the selling process. Also, the Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm, and match you with potential lenders.

10 Most Costly House Problems

Every homeowner experiences problems with their home sooner or later. The intensity of these problems depends on the level of maintenance the house has received over the years. Whether you are buying a home or selling your current house, you may want to check for certain problems that have been left unattended to. If you wait until after a home appraiser or inspector flags the issues, it could result in a lot more money out of your pocket. So, don’t wait until closing to fix the problems or address them with the owner.

Some of the following home problems are so common that many homeowners simply learn to live with them. However, the problems can be avoidable by providing proper maintenance and checking out the most common ones periodically.

Here are 10 of the most common problems that homeowners encounter while buying or living in a home:

1.       Problem roofs. The roof of your home is one of those things that you don’t pay much attention to. That is, until you see a leak. The roof can be one of the most costly things to fix, so use binoculars to check for warning signs. Also, get a professional roof inspection before putting your house on the market.

2.       Water in the basement. These problems should be solved as soon as possible to minimize damage that can include mold and mildew.

3.       Deferred maintenance. Keeping your home in top condition is an investment that will return the more you spend.

4.       Flaws in the foundation. Older homes and even newer ones can settle unevenly. Look for sloping floors and cracks in the foundation walls as well as above windows.

5.       Poor ventilation. The effects of poor ventilation on your health are huge, so make sure places like the attic are properly vented in order to avoid mold or roof rot.

6.       Faulty plumbing. It’s crucial to keep a close eye on the water supply system. Trace leaks to sources immediately, and replace corroding pipes.

7.       Defective HVAC systems. If you have just bought a home or you are thinking of selling your current home, it’s a good idea to contact a HVAC contractor for an inspection.

8.       Faulty gutters and downspouts. Constant checking is needed to properly maintain the gutters and downspouts in order to avoid water damage.

9.       Drainage problems. Homeowners often overlook landscaping issues which can which allow water to drain into the house’s basement or crawlspace. Water damage can be costly to repair and lessen the value of your home.

10.   Faulty wiring. Many electrical problems are caused by homeowners who try to do the work themselves or hire someone unlicensed. Look for dangling hotwires, open receptacle boxes, and aluminum wiring.

In the midst of checking your home or home-to-be for common problems, consider the advantages of knowing the true value of the property. Be sure to obtain a free home valuation report from Neighborhood IQ to find out how much a home is worth before you ultimately buy or sell! Also keep n mind that Home Loan Advisor can analyze your property, current market conditions, local market comps, and other variables in our proprietary algorithm as well as match you with potential lenders who have products that may help you and provide you with a sense of stability.

The Pros and Cons of Selling Your Own Home

If you are selling your home, will you get an agent or are you thinking about going at it alone? The answer depends on many different aspects. The obvious reason to sell your home yourself is to save the realtor commission fee, which can be a big chunk of change. However, in most cases, a realtor can get a higher selling price than what you can get yourself.
But the question is: Do you have what it takes to successfully sell your own home? You should really weigh the pros and cons to decide if you can take on the task by yourself:

Pros:

·         You can save money. You could potentially save thousands of dollars in real estate commission fees. The extra money can help if you still owe on the house you are selling. You won’t know if you can be successful concerning “For Sale by Owner” unless you try.

·         You know the house and neighborhood. You will likely be more educated about the strengths and weaknesses about the house. You will also know your neighbors and the surrounding area pretty well, so you can talk about how great they are when showing your house. Plus, you can let prospective buyers know personally about all of the home improvements you’ve done.

·         You may already have a ready buyer. In this case, you can save the real estate agent’s full commission because much of the work is already done. Or, you can hire an agent for a reduced fee to complete the transaction.

·         You are in control. Some people simply prefer to be in charge, especially when it comes to such a big financial decision.

Cons:

·         Selling is very time-consuming. Do you have the time to sell your house? It may be difficult to schedule appointments and show prospective buyers your home if you work full-time.

·         You have to take care of all the paperwork. There is a multitude of forms and paperwork to fill out, and an agent can seamlessly keep track of all signed documents. In order to be organized, you must be willing to do the same.

·         You have to prepare your home yourself. You may be blind to some of the flaws in your house, and a fresh pair of eyes can help get your house in selling shape.

·         You might not know how to market your home. You need to do some research to learn how to use useful forms of advertising such as the internet and classified ads. You also need to hone some important marketing skills to be successful in your sale.

As stated earlier, selling your own home means that you are the boss. You won’t have to succumb to overbearing agents or deal with unprofessionalism of any kind. You can call the shots, but it also means that any mistakes that are made rest solely on you.

If you decide to sell your own home, one of the most important pieces of information for you to know is the value of your home. You can rely on a free home value report from Neighborhood IQ to learn what your home is worth in order to ask for an appropriate price.

Renting Your Home vs. Selling

For years, you wanted to sell your home. You have even purchased a new home already. Perhaps you’ve had difficulty selling the property for various reasons. Or, maybe you have simply changed your mind about selling. Whatever the situation, you have ultimately decided not to sell your house. What will you do instead? You can rent it!

Renting your home ensures that you keep your home as an investment. You can use the money from the rent to put towards retirement, college tuition, or home improvements for your current home. It is a smart financial move for your starter home, and time is on your side to turn a possible lemon into lemonade.

Why rent your home?

Renting your house can be a good financial investment for many reasons, including:

·         The value of your home will go up, especially over the long term.

·         You control your investment.

·         There are tax breaks when you own your home and also when you sell it.

·         You can keep your investment in good condition.

·         You can develop landlord skills.

Advantages of renting your home

You can keep your first starter home and let tenants pay off the mortgage. Meanwhile, its value will increase. This is when you have a great investment. Other advantages to renting your home vs. selling it include:

·         You can get tax breaks from mortgage interest, landlord costs, and property taxes by deducting them at tax time.

·         You can accumulate equity. You can do this in two ways: Paying off your investment from rents, and the value of real estate goes up along with your investment.

·         You can save money for retirement, college, vacations, or home improvements.

Disadvantages of renting your home

Unfortunately, there is a flip side to turning your home into a rental. Before you make the decision to become a landlord of your rental property, you should consider the following:

·         Real estate is a long-term investment. It will take you at least five years to build a good level of equity. In order to reap the benefits you must be patient and stick with it.

·         Not everyone is cut out to be a landlord.

·         You might decide to move in a few years and not have time to build equity.

Selling after your home has been a rental

If you decide to sell your house after you have rented it, you should know that usually you can sell your home as a primary residence if you live in it for two of the last five years. This rule is tailored for those who have a hard time selling and have to wait for the market to change.

Whenever you do decide to sell, you will definitely need to know the value of your home so that it can be priced accordingly. In fact, you should know your home's value while you're renting it as well. Find out the worth of your home with a free home valuation report from Neighborhood IQ!