Mortgage News, Homebuying Tips and Advice

Selling a home is an emotional process, not just for you but also for the buyers. When people make a decision to buy a particular home, a lot of factors come into play, including location, amenities and price. But it’s never these rational details that tip a buyer’s hand and make them decide to purchase a particular house; instead, it’s the emotional attachment or something very specific that lures buyers to a home. This is the hot button. Identify your home’s hot button and emphasize it in your marketing materials in order to draw the buyers who will really want your home.  

One hard and fast rule that many home buyers don’t always acknowledge is to sell your existing home before you buy your new home. It doesn’t matter if you have a great house in a highly desirable location at a fantastic price; you can never assume that someone will buy your home within a designated period of time. Wait until the ink is dry on your home sale before buying a new home, or you could find yourself in financial trouble with two house payments to make.  

Selling a home isn’t just a simple cut-and-dry process. Home sales come with costs, and if you don’t consider those costs, you could find yourself unprepared for the sale process. Make sure you know what it’s going to cost to sell your home before you start the process, and make sure your expenses will leave you with enough to put a downpayment on your new home.  

When it’s time to sell your home, it’s your job to prepare the home for sale. You want to make the home appealing to potential buyers who walk through it, which may involve just a little work or may become a serious project. If you’re ready to sell, it’s time to get your home ready, too. Consider having friends walk through your house and point out problem areas, and start with the basics.  

When you work with a real estate agent, you sign a listing agreement with the agent. What many sellers don’t realize is that a listing agreement isn’t a contract to sell your home; it’s a personal service contract. You agree to pay the real estate agent to find buyers who meet the terms in your listing agreement. This can be a double-edged sword, so here’s everything you should know about a listing agreement before you sign:  

Selling your home through a real estate agent involves paying a commission, which could be anywhere from thousands of dollars to tens of thousands of dollars. Some sellers consider the option of selling their own home to avoid paying the 5 to 7 percent commission. Selling your own home might not save you as much as you hope, and could cost you a lot of time and money up front.  

In most cases, when you buy a home, it isn’t forever. The average home mortgage is 30 years; a few keep their homes that long, but most homeowners sell and trade up or trade down at various points throughout their lives. Selling a home is a natural part of the home ownership cycle, but it is possible to make a poor decision to sell when you should keep your home. When the time comes to sell, carefully consider your reasons for selling before you go through with the sale.

When you decide to sell your home, one of the most challenging decisions is setting the right price. If you price your home too high, you won’t generate much interest and your home could sit on the market for months. Too low, and you could loose money. Consider your pricing strategy and make sure you have a realistic idea of what the home is worth.  

Selling a home to move up to a larger home – or a smaller home – is typical in the real estate industry. People move up to larger homes when they start a family, or when their income increases, and people downsize to smaller homes when the kids go off to college or when they separate or have other life changes. Before you decide to sell a home and move up or down, though, crunch the numbers and make sure it’s the right decision.  

Residential real estate is a great investment option for a variety of reasons. Real estate in general is a stable investment that historically always appreciates, and typically provides a better return on investment than any other low-risk investment option. They’re also easier to manage than other investment types. Beyond the hype, though, what are the real financial benefits of residential real estate investing?