| |
| |
|
Real Estate Information |
|
|
|
Home Sellers Warning for Young Families
If you're thinking about selling your home and moving up, do your homework before offering your home for sale. Read the following story to see what can happen to home sellers who don't do their math. A young family sold their home in California, before they determined how to buy their next house. All they thought about was moving into a larger home for their growing family. Two years before, after this young couple purchased their first home, they bought a minivan with payments and increased their credit card debt with home furnishings purchases. Then, the wife quit working to stay home with their baby. The family still had sufficient money to make all payments on time. They fell in love with a larger new model home in a nearby tract home development. The sales agent convinced them the new home would only cost them another $200 per month. The family had no trouble selling their home. To qualify for the new home mortgage payment, they had to pay off the minivan, student loans, and the credit card debt. Out of their home sale proceeds, these payoffs left less than a 10% down payment for their new home. Because of their changed income and low down payment, they didn't qualify for the new home of their choice. With only 5% down, the couple had to pay higher interest rates on a second to avoid mortgage insurance. Without the wife's second income, the total payment meant that they only qualified for a new mortgage for a home which cost less than the one they sold! Before you put your home on the market, make sure you can buy the home you want. Consider the following financial concerns: Talk to a loan officer and check your credit. Don't get caught after selling your home, when it's too late, to repair any credit issues. Of course, you may have a great down payment from the sale of your home, but other bills like credit card debt, auto loans, and student loans may need to be paid off so you qualify for the new mortgage payments. Find out how much of a monthly payment and the down payment amount you'll need to buy the home of your choice. Do the math. How much can you expect to net from selling your home? 1. Do you have a mortgage prepayment penalty that could eat up a significant amount of your equity? 2. Determine selling commission expenses. Can you sell your home effectively on your own or do you need to pay 6% of your selling price for a real estate agent's expertise? 3. Estimate your closing costs. Ask a local closing or escrow company for an estimated closing cost amount for a home in your price range. 4. How much work does your home need to ready the property for a top-dollar sale? Which upgrades or redecorating expenses make sense financially? Consider all the expenses of selling, determine your actual profit, match that amount to your down payment, and see how much of a home you can buy with your qualified monthly payment amount. After you do your math homework, you'll be ready to think about selling your home. Don't get caught like this young family and be forced into a lesser home. Copyright © 2005 Jeanette J. Fisher - All Rights Reserved Worldwide. Jeanette Fisher helps home owners create homes for glorious living and top-dollar sales. She teaches Design Psychology and real estate investing. Jeanette is the author of many books including "Sell Your Home for Top Dollar--Fast!" and "Credit Help! Get the Credit You Need to Buy Real Estate." For more information on Design Psychology, see http://designpsych.com/ Free Design Psychology for Selling Houses report http://sellfast.info/ "Credit Tips for Mortgage Financing" http://recredithelp.com/
MORE RESOURCES:
Real-Estate - Google News |
|
|
|
RELATED ARTICLES
New Home Construction - The American Dream or The American Nightmare? Buying a new home is suppose to be the American Dream. Unfortunately, for many buyers of newly constructed homes it becomes the American Nightmare. How To Go About Selling Your Home On Your Own In days of booming real estate, you would think that selling a home shouldn't be too much of a task. And if it's going to be that easy then why not do it on your own and save yourself on thousands of dollars in commissions. Selling A Home - What Attachments Stay or Go? The home selling and buying process can be confusing. This is especially true when it is a FSBO (for sale by owner) operation. To Buy or Not to Buy Purchasing a home is a major emotional and financial decision. Often times, people want to buy a home; however, emotionally cannot afford to commit to the home-buying process. Real Estate Investing - Basis Explained Our complex IRS code requires that your, as a real estate investor, accurately calculate your "basis" in investment property when reporting a gain or loss on a tax return.Your monetary gain or loss when you sell investment property is determined by comparing the sale price to the adjusted basis in the property. How To Get More Money For Your House If you are thinking about selling your house, you should take a serious look at your home through objective eyes. You're probably used to all the little quirky things that need a bit of fixing up and don't look quite right, but to a prospective buyer, these things can be a real turn off. Sellers, Are You Having A Hard Time Selling Your Home? Sue and Chuck DeFiore have the perfect solution for you - Lease Purchasing your home!What is Lease Purchasing?A Lease Purchase is a process that combines a basic rental lease with an agreement to purchase, or with an option to purchase the property. The Buyer (or Lease-Purchaser) pays to the seller a monthly payment that usually approximates a rental amount or a typical mortgage payment on the home. As a Realtor, How Do I Attract Listings? Have you ever noticed that despite the massive number of Realtors in your area, only a hand full are making a fortune selling real estate? Regardless of who these realtors work for; GMAC, Century 21, REMax, they are extremely successful where others in their office are barely scraping by. What is the secret to their success? First and foremost, it is their approach to marketing themselves and their customers. Why is Now the Time to Buy in Turkey? Turkey is a paradise of sun, sea, mountains, and lakes that offers the vacationer a complete change from the stress and routine of everyday life. From April to October, most places in Turkey have an ideal climate that is perfect for relaxing on sandy beaches or enjoying the tranquility of mountains and lakes. Lock In Big Profits By Offering Rent To Own Deals Why would anyone accept a lease option, rent to own deal? Why would you, as a seller/investor look to find rent to own tenants? How can you use this technique to LOCK IN profits that are much greater than would be found in a straight sale?Basically, the advantages depend on which of two end results occur: either the rent to own tenant completes on the property, or they don't. You make money either way!There are MANY people who have less than sterling credit, might not have a long time on the job, or not have a ton of money for down payment, closing, etc. Property Types A, B, C And D One of the biggest problems individuals just starting out have is the type of property they look for, and working outside their immediate area. One of the constants around the country and for every state, is that there are the most desirable areas to live and the least desirable; and then those that fall in between. Victorian. Modern. Colonial. What's Your Architectural Style? You are attracted to a home for more than its number of bedrooms and square footage. Whether consciously or subconsciously, you are drawn to the individual character of a home. Branded Email in the Real Estate Industry Branded Email in the Real Estate IndustryYou're in the real estate industry, and that means you've got a brand. Chances are, you've spent quite a bit of money to build that brand, whether it's through franchising fees, marketing, websites, business cards, other print materials, advertising, yard signs, and/or through other means. How to Find the Sweet Spot in Real Estate Investing Psssssssssst, Want to know a great way to make FAST money in real estate? Listen closely now because this tip is definitely cashable.. Real Estate Bubble: Fact or Fiction? The real estate market buzz across the country these days revolves around the anticipated and much feared "bubble". The implication is that once burst, prices will spiral downward taking with them the major assets of those foolish enough to buy at a time when disaster looms large. Home Not Selling In Todays Hot Market? Tips and Ideas to Help You Sell So, your selling your home. Prepare yourself both physically and mentally for the agony of the endless phone calls and interruptions to your daily schedule. Decorating to Sell a House by Meeting Three Key Needs Specific marketing campaigns are no longer just for automobiles and designer clothes. Targeted marketing techniques are now applied to houses that are for sale. 6 REASONS for Investing in Florida Real Estate Investment Property NOW I invite you to take the next few minutes to learn the truth about the real estate market, how it compares to other methods of building assets and why it is such a lucrative form of investing. Many potential investors will say, 'I need to get into the Florida Investment Property market', especially taking into account current stock market fluctuations and the HOT market for investment properties, but simply don't know the facts about Orlando property investing and how to use sale and leaseback method of property management. Real Estate Marketing, Do You Use Direct Mail? Prospecting for leads is by far the most difficult part of being a Realtor or small business professional. In fact, lead development is by far the most expensive and time consuming aspect of your job. Selling Your Property Without An Estate Agent It is possible to save £1,000s selling your home privately and cutting out the estate agent, but what are the issues that you need to consider?Pricing the propertyPrice your property too low and you could short-change yourself from the true market value, price your property too high and you will simply put off potential buyers.Before you put your property on the market, you need to do some market research.
|
| home | site map |
| © 2006 |
