You are preparing to list your property and you are facing the dilemma of making repairs or allowing the future homeowner to contend with the "fixing" themselves. For some homeowners, home repairs may not be an option, especially if they find themselves upside down in their investment and facing foreclosure. However, when considering listing the property, one of the biggest question you may face with potential homeowners is, "Do Home Buyers Want Fixers or Fixed Up Homes?"
As a Realtor, your worst nightmare is seeing your client lose their investment when purchasing a home (e.g., earnest deposit, inspection fees, etc.) because a seller is unable to deliver money to table. Yes, a SELLER. There are times when a seller must come to the table with money in hand, and not because they are offering closing cost assistance. In one of my recent closings, my buyer was ready to walk away because the seller stalled on having the essential money to close the deal.
Believe it or not, this is not an uncommon experience. Often times, a seller would have to bring money to the table if they do not have enough equity in a home, there is a decline in the market, or because the neighborhood values change such as foreclosures and new construction nearby. In addition, there could be some costly or unexpected repairs.
Fortunately, we were able to make the deal happen, but because of the bad transaction, I was prepared to help my buyer place a lien on the property because now the SELLER owed him money that he invested for the purchase. To avoid this pitfall as a seller, I want to share some tips and resources for you so that you don't find yourself upside down in a closing transaction.
Read more about how you sellers can end up paying to close the deal in Home Sellers Without Equity to Pay to Sell.
If you're in the process of buying a home, you've probably already met with a lender who advised you on what to do and what not to do during the escrow process. But if you're just getting ready to buy or plan on doing so in the near future, following a few financial tips can mean the difference between qualifying...and not, and also getting a decent rate. These are a few universal "don'ts" that will help you stay on track, even before you get a lender involved.
Don't take out more credit
If you're thinking you're going to buy a house in a matter of a few months, forget that new laptop on the Best Buy card, forget that new car, and forget that Old Navy card. Sure, it's only a $30 pair of pants. But, taking out more credit can harm your debt-to-income ratios, which can make you look like a credit risk. And that's not worth it, no matter how cute the pants are....
Read more of Financial Don'ts When Getting Ready To Buy A Home
Great tips, with lots of relevance for today's homeowners interested in selling their homes. Don’t just list it without any advance preparation. A few minor touch-ups can go a long way towards making a favorable impression on potential buyers — and perhaps cinching a deal.
Read more: 21 Ways to Prepare Your Home for Selling
Bad credit can happen to anyone. When you have a lower credit score, it can be much harder to get a home loan. You might also be subject to higher interest rates and fees than someone with better credit. There a good amount of options, and the federal and state level for mortgages can help even low-credit borrowers get the home of their dreams. Check out more at 3 Types of Loans to Go for if You're Credit Challenged.