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Selling An Inherited House: What You Need To Know | Bankrate

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If you’ve inherited a house, you might want to move right in, or take the opportunity to become a landlord and earn some steady rental income. But what if you don’t actually want the house, and would rather get rid of it?

Selling a home is always complicated, but selling an inherited home can add even more complexity to the equation. Everything from the specific wording of the will to the presence of a mortgage can impact how you unload an unwanted property. Here’s what to consider and what you should know about how to sell an inherited house.

Selling an inherited house

The details of how you came to own the property, and the nature of your ownership, play a big role in how to sell an inherited house. And don’t forget that, as the seller, you will be responsible for a certain amount of closing costs before you get your profits.

If you are the sole owner

The process of selling is easier if the home was bequeathed to you and you alone, or if you and the decedent (ie, your deceased loved one) were both listed as owners on the property. If the two of you were tenants in common or joint tenants with right of survivorship, you do not have to worry about probate or other legal processes — you’ll simply become the full owner of the home and can proceed to sell it as you like.

If you co-own it with others

In some cases, you may inherit the home along with other family members, such as siblings or cousins. If this happens, all joint owners of the property are jointly responsible for making decisions about it.

Mixing family and money can be stressful, especially during an emotional time when you have all lost a loved one. If it was your childhood home, the emotional attachment can make things even more challenging. It’s essential that you work together with your family to make sure everyone is on the same page, and to prevent hurt feelings.

“If there are other heirs involved in selling your inherited home, you may want to consult an attorney about the best way to handle these relationships and responsibilities during this process,” says real estate investor Shaun Martin, of Denver house-buying firm Watson Buys. “You may also want to discuss whether or not they will be contributing financially toward any repairs or renovations required before selling the property.”

Another option, especially if none of you are interested in living in the property, is to buy out the other heirs. You can offer to pay them for their share so that you become the sole owner of the property, which will make your future sale simpler.

The probate process

Probate is a legal process through which an estate’s assets are used to pay its creditors. The remainder is then handed down to heirs according to the decedent’s will or, in the event there is no will, according to state law. It can be a long and convoluted process.

Each state has a different process for probate, but it typically involves appointing an executor for the decedent’s estate. That person is responsible for following the terms of the will, managing the estate’s assets and seeing that they’re distributed properly to the beneficiaries.

It’s important that you follow the full probate process closely and don’t take possession of the home or try to sell it before you’re legally permitted to do so. Of course, if you’re also the executor of the estate, that simplifies matters.

Once ownership of the home has legally been transferred to you, you can begin the sale process. However, you shouldn’t expect any of this to happen right away.

“Probate can be a lengthy and complex process, often taking several months to years, depending on the size and complexity of the estate,” says Steven Parangi, an attorney and loan originator with Alpine Mortgage Services in Rochelle Park, NJ. “It can also be costly, with fees for the court, attorneys and appraisers. However, probate ensures that the decedent’s wishes are honored and that the estate is settled in an orderly manner.”

Does the home still have a mortgage?

Whether the inherited home has a mortgage or is fully paid off also impacts how selling it works.

If there is a mortgage

If there’s a mortgage on the home and the decedent was the sole person on it, it is the responsibility of the estate to continue making loan payments. That means the executor of the estate has to determine how to continue making mortgage payments from the estate’s assets.

When you inherit a home with a mortgage, whether through the probate process or otherwise, you will also have to assume the mortgage. This means making the monthly payments yourself, whatever they may be. Reach out to the lender to determine the logistics of getting the property and loan under your own name — an important part of being able to dispose of it. Once you’ve done that, you can sell the home.

If there is no mortgage

If there’s no mortgage on the home, the process is simpler: No need to worry about loan repayments. However, as the home’s new owner, you will still need to pay property taxes and utilities. (The decedent’s estate may provide funds to cover these expenses, so be sure to check.)

As part of inheriting the home you’ll need to work with the local property records offices to get the deed to the home put in your name and to set up utility accounts in your name. Once that’s done, you can sell the home.

What condition is the home in?

If the home is in good condition, or in a desirable location, a traditional sale working with a local real estate agent will likely get you the best price. If you can find an agent with experience selling inherited homes, all the better — they can help you strategize the best selling approach and walk you through all your options.

For inherited properties, it can be smart to spend a few hundred dollars on a pre-listing home inspection. This will clue you in to any problems or necessary repairs that you might not know about, since it was not your home.

But if it’s in poor shape or extremely dated, the circumstances are different. in this case, you’ll need to either:

Invest in repairs and upgrades before lising it
Sell it as-is, effectively telling buyers that any work needed will be their responsibility
Sell to a cash-homebuying company that buys houses in any condition

Selling as-is or to a cash-homebuying firm won’t require as much effort, time or money as renovating would. But it does have a major downside: It will not earn you as high a price as you would likely get selling the traditional way.

Tax implications of selling an inherited house

Selling any property for a large profit has the potential to trigger real estate capital gains taxes. However, inherited properties are unique in that, while you now own the home, you are not the one who bought it. A lot depends on how much the decedent paid for the house in the first place, and how much the home’s value has appreciated since then.

To know if you will have to pay capital gains tax on your profits from selling an inherited home, you must calculate the profit: This is done by subtracting the cost basis (or original cost) of the home from the price you sold it at.

Typically, the cost basis for a property is the price paid to purchase it, plus any substantial sums spent to improve it. However, when you inherit property, the cost basis is typically “stepped up,” or adjusted, to be the fair market value of the property on the date of the decedent’s death. (In some cases it might also be the fair market value on an alternate valuation date, such as the date the executor filed an estate tax return.)

“When a person inherits property, they receive a ‘stepped-up’ basis, meaning the property’s tax basis is adjusted to its fair market value at the time of the previous owner’s death,” says Parangi. “This is significantly advantageous for the heir, as it can substantially reduce or eliminate capital gains taxes when the property is sold.” (There are some exceptions to the stepped-up basis, so it’s smart to consult a tax expert.)

Parangi offers this example: “If a parent purchased a home for $100,000 and it’s worth $500,000 at the time of their death, the heir’s basis becomes $500,000, not the original $100,000.” Thus, if you as your parent’s heir sell the home for $550,000, your taxable profit would be $50,000, not $450,000.

To determine a property’s value at the time of the decedent’s passing, you’ll need what’s known as a date of death appraisal (sometimes called a time of death appraisal). This “provides a clear and defensible valuation of the property, which can be beneficial in various scenarios, such as settling disputes among heirs or dealing with the IRS,” says Parangi.

FAQs

Should I sell or keep my inherited house?

It depends on your personal circumstances. If you want to live in the home or use it as a rental property, keeping it obviously makes sense. If you don’t want to do either — or if it needs significant work that you don’t want to commit to — selling it will make more sense. Take stock of your emotional attachment to the property, if any, and how you would feel if it were no longer in the family. If you think you want to sell, talk to a local real estate agent about how much the house is worth in today’s market.

Do I have to pay capital gains taxes on a property I inherited?

You may owe capital gains on inherited property — but only after you sell it. The gain is based on the difference between the final sale price and the cost basis of the property, typically the fair market value of the home on the day the decedent died. However, even if you sell for a profit, you may not owe capital gains tax. There are a lot of factors that depends on, including exactly how much money you earn on the sale and whether you file taxes individually or jointly with a spouse.

How fast can I sell a house I inherited?

Before you can sell you must have legal ownership, which can take quite a while if the inheritance must go through the probate process. Once you can legally sell, how long that takes depends on your local market conditions and how you choose to sell. Selling to a local cash-homebuying company can take just a couple weeks, or sometimes less. Using an agent will certainly take longer than that, but is likely to get you a higher price for the home.



This article was originally published by a www.bankrate.com . Read the Original article here. .

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How To Sell A House By Owner In Arizona | Bankrate

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Interested in selling your Arizona home without a real estate agent? It’s possible, as it is in any state, but be prepared for a complicated and time-consuming process. When you go it alone as a seller, you have to do all the work a licensed agent would do yourself. It’s a lot to take on: Tasks include pricing, staging and marketing your home, as well as coordinating showings and negotiating contract terms, all without the support of a pro. Read on to find out more about how to sell in Arizona without a Realtor.

How to sell by owner in Arizona

When you opt for a FSBO sale, you’re responsible for all steps of the home sale process, from beginning to end. Here are some basic steps to follow:

Create a listing

The first thing you’ll need to do is create a compelling description of your home to draw buyers in. Setting an appropriate asking price is crucial — check comps in your local market, which are the prices of recently sold homes that are nearby and similar to yours, to get an idea of how much it’s worth. You could also try checking a few online home-value estimators, but for the most accurate assessment of fair market value, hire a home appraiser.

Your listing should include all the basic information about the property, such as age, square footage and number of bedrooms and bathrooms. Don’t forget to highlight unique selling points, such as a swimming pool or unique view. Information about the neighborhood and school district is also helpful, and if it’s part of a homeowners association, include info on that too.

Finally, quality listing photos have never been more important. According to a recent National Association of Realtors report, 100 percent of prospective buyers look at online listings, and you want to be sure to catch their eye with professional-quality images.

Market your property

Next it’s time to get that listing seen by house-hunters. The most effective way to market your listing is to have it placed on your local market’s MLS (short for multiple listing service), which aggregates current for-sale listings. These are typically only available to real estate agents, but there are services that will list your FSBO home on the MLS for a fee: In Arizona, try sites like Houzeo, Listed Simply or AZ Flat Fee.

You might also try flyers, social media and platforms like Craigslist or Facebook Marketplace. Just be careful about what kind of information you disclose on sites like these, especially if you still live in the house.

Coordinating showings with prospective buyers requires care as well, not to mention organization. And while you’re fielding home visits, you’ll need to keep the home clean and tidy so that it always looks its best for buyers who drop by to take a look.

Close a deal

Hopefully, you’ll soon have an offer or two. You may need to negotiate the terms of the sale to come to an agreement, so it helps to be comfortable with back-and-forth haggling over price, seller concessions and other potential sticking points.

Finally, real estate closings involve a lot of red tape and paperwork, and stakes are high if things are not done properly. As a FSBO seller, with no licensed agent to walk you through the process, it’s smart to hire a real estate attorney to review everything — especially the purchase contract — to make sure it’s correct, legally sound and protects your interests.

Required disclosures for Arizona home sellers

The Arizona housing market can differ greatly depending on whether you’re in a major market like Phoenix, a remote desert town or somewhere in-between. But one thing that applies to every market is disclosure: The state of Arizona requires home sellers to provide buyers with a written disclosure outlining any issues that may affect the value and desirability of the property, including “material defects” and the presence of liens or encumbrances. The Arizona Association of Realtors provides an eight-page, downloadable disclosure form that can be useful here.

In addition, under federal law, sellers must disclose any known lead paint hazards if the home was built before 1978.

Do I need a lawyer to sell my house in Arizona?

You’re not required to hire an attorney to sell your house in Arizona. However, it’s probably smart to do so anyway, to ensure that your interests are protected. Real estate sales involve a lot of complex paperwork, and with a big financial transaction like this, a mistake can be costly. It’s worth the money to be sure your interests are legally covered.

Pros and cons of selling a house by owner in Arizona

Pros

Save money: FSBO sellers don’t have a listing agent, so they don’t have to pay a listing agent’s commission. This fee typically runs 2 to 3 percent of the home’s sale price, which can be significant. However, keep in mind that you’ll still have to pay the buyer’s agent’s commission.

Move faster: Not having to wait on a Realtor to call you back, reply to your emails or texts, or fit your showings into their schedule can accelerate your sale process. You work on your own timeline.

Be your own boss: Similarly, without an agent running the show, you run it yourself and can do everything your own way.

Cons

No professional guidance: Pricing, marketing and showing your home can be daunting tasks without a licensed pro by your side. Not having a seasoned local expert to guide you can be detrimental, especially if you’re not an experienced seller.

Fewer potential buyers: Realtors are professional marketers. Without one working to introduce your home to house-hunters and fellow agents, fewer people may see your listing, which means a smaller pool of potential buyers.

Potentially lower profits: If you’re not an expert negotiator or don’t understand your local market well, you might end up leaving money on the table. In fact, according to a National Association of Realtors analysis, FSBO listings typically sell for nearly $100,000 less than agent-assisted sales.

FAQs

Can you sell a house in Arizona without a Realtor?

Yes, it’s possible to sell a house in Arizona without a Realtor. “For sale by owner” listings are fairly common, but if you’re considering one, make sure you’re prepared for how much work you’ll have to put in. You’ll be responsible for everything from determining an appropriate sale price to creating a compelling listing to scheduling showings and negotiating the terms of the contract.

Do I need a lawyer to sell my house in Arizona?

No, Arizona law does not require you to hire a lawyer in order to sell your house. But it’s wise to do so anyway, to make sure your interests are protected in the transaction — especially if you’re going it alone with no real estate agent.



This article was originally published by a www.bankrate.com . Read the Original article here. .

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With Real Estate Commission Rules Changing, Should I Wait to Buy a House?

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“I want to buy a house soon, but I read that real estate commissions are going down. Should I wait until the new rules are in place?”

You’re right to step back and re-strategize your home purchase after the National Association of Realtors’ recent legal settlement. If it’s approved by the court, the real-estate industry is on the precipice of change that could impact the home buying process and what you pay for it. Whether it’s best to act now or to wait, though, will depend on your budget, how much work you want to put into the process and your need for certainty.

Here’s the gist of what’s happening: Lawsuits were filed against NAR, a trade group representing 1.5 million real-estate agents, questioning its cooperative-compensation rule. Under this rule, sellers cover the commissions for both their agent and the buyer’s, with the cut offered to buyer’s agents advertised in an agent-facing database known as a multiple listing service, or MLS. Critics say the practice reduces competition and inflates commissions and home prices.

In March, plaintiffs accepted a settlement proposed by NAR, which would remove offers of compensation from the MLS and require agents to sign contracts with buyers. The rules are expected to ultimately lower costs, however, buyers may need to pay agents out of pocket. If approved by the court, the changes are set to go into effect in August.

With this all in mind, there is no hard-and-fast answer as to whether you should buy now or wait until those changes roll around. There are, however, cases for both paths.

The case for buying now

If you want a full-service agent and assurance that the seller will foot the bill—then buying before July is probably best.

“The NAR settlement is creating lots of uncertainty, and if there’s anything people don’t like when making major life decisions and purchases, it’s that,” says Dana Bull, a real-estate agent and consultant in Massachusetts. “If you buy right now, you’ll have a greater sense of what to expect.”

By buying now, you’ll likely fall under the existing agent commission model where the seller pays. The total is usually 5% to 6% of the home price—with 2.5% to 3% going to each agent. In exchange for that cut, your agent will usually suggest listings, tour properties with you and negotiate on your behalf. Depending on what state you live in, they may also draw up contracts and attend your closing.

“The home buying journey will not be altered—at least for the next few months,” says Alyssa Brody, co-founder of Development Marketing Team, a real-estate brokerage with branches in New York City and Miami.

The case for waiting

If you’re comfortable negotiating and willing to handle some of the home-search process on your own, waiting to buy could pay off. “If you’re more focused on maximizing your investment and minimizing costs, waiting until the new rules come into play could be beneficial,” Brody says.

Starting in mid-August, buyers will sign a separate contract with their agent, opening the door for negotiation. Some agents may charge an hourly rate or offer a la carte services. This would allow buyers to choose which services they want to do themselves (browsing listings and touring homes, perhaps) and which they want to pay for (maybe negotiating and drawing up the contract).

Additional savings could come from lower home prices. With sellers no longer footing the bill for buyer agents, some experts believe they will sell their homes for less.

This all depends on market conditions, though, and agents broadly agree that prices are unlikely to drop much in the short-term. By summer, the Federal Reserve is expected to start cutting interest rates, which means lower mortgage rates and higher demand. “With our limited inventory, competition will be fierce,” says Bret Weinstein, founder of Guide Real Estate in Englewood, Colo.

If you choose to wait, be ready for a bumpy ride. “It will cause a shake-up, and no one knows exactly how the open market will react,” Bull says. “There will be lots of confusion, and as a buyer, you could be stuck in the crosshairs while the entire industry adjusts to the change.”

To sell or not to sell

The considerations are similar if you’re on the fence about selling. If you are comfortable with the existing model, sell now. For the lowest costs, you might want to wait until August.

Take note, though: Not everyone is convinced things will change once the new rules are in place. “I believe sellers will continue to pay buyer agents in big markets like Los Angeles, because it’s in their best interests,” says Michael Nourmand, president of real-estate firm Nourmand & Associates in Beverly Hills, Calif. “It’s best for buyer affordability, they don’t want to limit their buyer pool, and negotiating a commission is another variable that could derail the transaction.”

Talk to a few real-estate agents about the pros and cons of skipping the buyer-agent commission in your area. They can advise you on what it might mean for your sale, given current market conditions.



This article was originally published by a www.wsj.com . Read the Original article here. .

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Should I Buy A House Now Or Wait? Is It A Good Time? | Bankrate

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Key takeaways

The current housing market is causing many prospective buyers to wait for better conditions, but there’s no guarantee that it will improve considerably anytime soon.

If your credit score is strong, your employment is stable and you have enough savings to cover a down payment and closing costs, buying now might still be smart.

If your personal finances are not ideal at the moment, or if home values in your area are on the decline, it might be better to wait.

Buy now, or wait? That’s the question prospective homeowners have been struggling to answer in today’s housing market. Home prices have been skyrocketing recently, and the Federal Reserve’s work to tame inflation sent mortgage rates soaring, too.

The combination has led many would-be buyers to pick the “wait” side of the equation. The median sale price of an existing home in the U.S. hit its second all-time-high of the year in June 2024 — an astonishing $426,900 — according to the National Association of Realtors (NAR). And, according to the Fannie Mae Home Purchase Sentiment Index released in July 2024, 81 percent of consumers believe it’s a bad time to buy a house.

However, after being at a constant disadvantage for the past few years, things have actually started to look a bit better for buyers in some respects. For example, days-on-market figures are up, giving buyers more time to make an informed decision. NAR data shows that homes typically spent 22 days on the market before selling in June, up from 18 days a year ago. And available housing inventory, while still on the low side, is rising — up a healthy 23.4 percent year-over-year, per NAR.

June’s National Housing Report from RE/MAX, one of the biggest real estate brokerages in the country, also reported a sharp uptick in new listings, up 38.1 percent from June 2023. “It’s good to see inventory levels rising, as more listings represent more options for buyers,” said RE/MAX president Amy Lessinger in the report. However, she continued, “it’s evident that buyers are sensitive to interest rates, highlighting the need for lower rates to stimulate significant growth in market activity.”

So, is it a good time to buy a home? Or is it better to wait on the sidelines, in the hopes that either prices or rates see a significant drop soon? And are there still concerns about a possible recession? Here are some key considerations to help determine the way forward.

Is now a good time to buy a house?

Mortgage rates have backed off from the 8 percent highs hit in October, but they’re still close to 7 percent. And home prices are sky-high as well: June data showed the highest median price NAR has ever recorded, reflecting 12 consecutive months of year-over-year increases. Together, these factors might dissuade you from buying right now, and that’s understandable.

No matter which way the real estate market is leaning, though, buying now means you can start building equity immediately. It also means avoiding the potential for additional mortgage rate increases later: Rising rates can spell serious trouble for your monthly budget, and they also result in paying more in interest over the life of the loan.

“If a buyer finds a property they would like to call home, they should not delay,” says Stacey Froelich, a broker with Compass in New York City. “You cannot time the market, and a home should be a long-term investment.”

“Remember, you ‘marry the house and date the rate,’” Melissa Cohn, regional vice president of William Raveis Mortgage in Connecticut, recently told her newsletter subscribers.  To put it another way, if you find the right place, buy now — you can always refinance later.

In general, if you can answer yes to these three questions, now is a good time to buy.

Do you have excellent credit? Anytime you’re borrowing money, start by checking your credit score. The best deals on mortgages will be available to those with the best scores — in fact, the median credit score for mortgage borrowers in the first quarter of 2024 was a very high 770, according to the Federal Reserve Bank of New York. If you have demonstrated that you are a low-risk borrower with a history of on-time payments, you’ll be in line for the lowest mortgage rates a lender offers.

Have you saved enough for a down payment? In addition to paying your bills on time, you should be sitting on a sizable chunk of change for a down payment. The more you can pay upfront, the less you’ll have to borrow (and so the less interest you’ll have to pay). Make sure you’ll have plenty left over, too: Lenders like to see additional cash reserves that can provide a cushion if something unexpected happens.

Are you planning to stay in the home for a while? Beyond the purchase price, buying a home comes with closing costs that can run thousands more. So, to justify those one-time transaction costs, it’s wise to be reasonably certain that you won’t move again anytime soon — or that you’ll be financially stable enough to hold on to the property and rent it out. Selling a home very soon after buying can have serious tax implications.

Should I buy a house now or wait?

Ultimately, the decision of when to buy a home is up to you. Life goes on, whether the timing is perfect or not. If you’re anxious to become a homeowner, you’ve met the criteria above and you’re financially stable, go ahead and start house-hunting.

If you’re holding out for lower mortgage rates, a bit of patience might be in order. They have been volatile lately, topping 8 percent in October 2023 before falling back below 7 percent, then rising back above it, and lately just a hair under 7 percent again. That’s more than a full percentage point swing in just a few months.

While 1 percent might not sound like much, it can make a big difference in how much house you can afford over the long run. For example, Bankrate’s mortgage calculator shows that if you buy a $350,000 home with a 20 percent down payment, the monthly payment for principal and interest on a 30-year loan with a 7 percent interest rate is $1,862. The same loan at 8 percent brings those monthly payments up to $2,054 — $192 higher every month. That’s more than $2,300 each year, or $69,000 over the life of the loan.

Of course, it’s impossible to predict where rates will land eventually. But here are three instances in which it might make more sense to wait out the market for at least a while:

If home values in your area are dropping: The country’s overall median home price may have hit a record high in June, but some individual areas have still seen price declines. Take Austin, Texas, for example: Redfin data shows that the median price in Austin in June 2022 was $616,444. A year later, that figure was down to $600,000 even, and by June 2024, it had fallen to $564,000. Such declines may not be done yet, so it could pay to be patient for a bit longer.

If inventory in your area is increasing: When there are more properties on the market to choose from, buyers enjoy more bargaining power. Since many buyers have been sitting on the sidelines due to the interest rate environment, many areas have seen a jump in inventory. Even so, according to NAR, the country overall had 4.1 months worth of housing supply in June — an improvement over recent months, but still too low to meet demand.

If your personal finances could use some love: The biggest reason to wait is if your current financial situation is not ideal. For example, if you are expecting a sizable commission check or bonus, an inheritance or some other windfall that would make a big difference in your down payment, waiting until it arrives makes sense. And if your credit score is low, waiting is also smart. Take some time to improve your credit and pay down your debt so you can qualify for better loan terms.

Analyze your local market carefully

Deciding whether to buy a house now or wait depends a lot on where you want to call home. Regardless of national headlines, real estate is a local game and can vary greatly from one market to another, even within the same state.

Consider this June Redfin data from North Carolina’s Research Triangle cities of Raleigh and Chapel Hill, only about 30 miles away from each other: Raleigh homes cost a median of $450,000 and spend about 16 days on the market before selling. But in nearby Chapel Hill, the median home costs a much higher $667,500 and sells in less than half the time (just 6 days). That’s a notable difference.

In today’s homebuying market, it’s more important than ever to find a real estate agent who really knows your local area — down to your specific neighborhood — and can help you successfully navigate its unique quirks.

What if there’s a recession?

The odds of a recession within the next 12 months now stand at 32 percent, according to Bankrate’s most recent survey. And as you might imagine, recessions are a risky time to buy a home. If you lose your job, for example, a lender will be much less likely to approve your loan application.

Even if a recession doesn’t affect you directly, if your area is hard-hit, that could have a serious effect on the local real estate market. Fewer people with the means to buy means a lower chance of homes selling, which could keep homeowners from listing and decrease your options as a buyer.

There are some potential upsides to buying a home during a recession, though, if you’re financially able to do so. Notably, there will be less competition, which could help you find a great property that you otherwise couldn’t.

Next steps

Trying to buy a house right now might feel overwhelming, but waiting too long can present challenges as well. Review your finances in detail, and think about how much you’re able to pay upfront as a down payment. Be sure to take the pulse of the town in which you’re hoping to live. Then, talk with an experienced local real estate agent to figure out whether you should buy now or wait until the market is a bit more friendly to your bank account.

FAQs

Is now a good time to buy a house?

We’re in a volatile time for real estate. Prices are at record highs, mortgage rates reached 20-year highs last year, and some economic experts still believe we are heading for a recession. A high-interest-rate climate gives you less buying power, so buyers who opt to wait for lower rates may find themselves able to afford a higher-priced house, due to the lower mortgage payments. But there’s no guarantee that rates will actually go down. Ultimately, whether it’s a good time to buy depends on your personal circumstances. If you need to move now, then go for it: Shop around for the best deal possible, and remember, you can always refinance down the line if rates do decrease.

Can I buy and sell a house at the same time?

Yes — lots of people buy a new house while selling their old one at the same time. However, it does create some additional challenges, especially if you’re showing your home while still living in it. It’s important to work with an expert real estate agent who can help you find the right buyer and the right listings to look at. You’ll also want to stay close with your loan officer, to make sure the complexities of putting the proceeds from your sale toward your new down payment are as smooth as possible.

Is the housing market going to crash?

Housing experts do not think so. While there is certainly some economic uncertainty swirling right now, most experts believe that the housing market will not crash. Home prices may decline in some areas, but it won’t be catastrophic — think of it as more of a soft landing.



This article was originally published by a www.bankrate.com . Read the Original article here. .

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Selling A House As-Is: Our Writer’s Firsthand Guide | Bankrate

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When preparing to sell your home, getting the property into pristine show-ready shape can feel overwhelming — and cost a fair amount too. But instead of sinking more money into it when what you really want is to get rid of it, there’s another option to consider: selling the home as-is. This tells buyers that there will be no changes made, no concessions, no bargaining — what you see is what you get.

I speak from experience. When my father passed away, I decided to sell his house in as-is condition rather than put a lot of time, effort and money into fixing it up. This is my story — plus pros, cons and tips if you’re thinking of doing the same.

“As-is” is not, strictly speaking, a legal term — rather, it’s a contractual term. In real estate transactions, it means that the seller makes no guarantees or representations about the property’s condition or the working order of its features, and will do nothing to change the condition or features. And, crucially, it means that the buyer accepts these terms in purchasing the property.

I sold my father’s house as-is — here’s what I learned

The time had come to sell my old Kentucky home. My 90-year father had died, and I had no desire to move back to my birthplace. Built in the French Provincial style by my parents in 1963, the house was beautiful, with a pool and tennis court, surrounded by woods. But it hadn’t been updated in 15 years, since my mom’s death, and in his decline, my dad had let things go.

“Spare yourself the expense of renovating and the hassle of negotiating,” friends and real estate pros advised me. They thought people would want the property for the land, a three-acre lot, and the location, a peaceful suburb only 20 minutes from downtown Louisville. So I decided to sell the place in its existing state, as-is.

We listed it at $650,000. After some frivolous nibbles, a serious offer came in: $600,000. My broker said “take it,” but — feeling emboldened by experience in eBay bidding wars — I countered with $625,000. Sold! Well, that was easy, I thought.

Until the requests began.

I’d allowed the buyers a generous period of time to inspect the property and plan their renovations. But I wasn’t prepared for the pop quizzes that followed: Did the septic lines run under the tennis court? When was the oil tank last lined? Was the county ever going to run gas lines out to the neighborhood? Each one was accompanied by a follow-up question: If this turns out to be a big expense for us, can you adjust the asking price?

Each time, I furnished the requested info as best I could while ignoring the hints about the price. Then, just one week before the scheduled closing, the buyers suddenly got scared the house might have asbestos. Would I pay for a special inspection and removal if it were true? If not — basically a threat, not a hint this time — the sale was off.

I panicked: Could I afford, not just financially but emotionally, to put the house back on the market, especially since the prime summer selling season was nearly over?

But after a careful look at our purchase and sale agreement, sanity returned. “Remind these folks of the contractual facts of life,” I instructed my broker. They had agreed, in writing, to buy the home in its current state, with no repairs or concessions on my (the seller’s) part. That was the deal; that’s what “as-is” means. If they reneged now, I would sue them for breach of contract — and probably win, a real estate attorney who looked at the agreement told me.

After a tense few days, they finally backed down, and the closing went through as planned. I signed remotely, having canceled my flight during my moment of panic. After closing costs, the broker’s fee and paying off the mortgage, I netted a small profit.

Do I have regrets about selling the house as-is? To be honest, yes, a little. Not so much about the money — I was resigned to getting less — but because it didn’t save me as much hassle as I’d expected. Still, the as-is status did give me the grounds, and the guts, to stand firm at a crucial moment. I think Daddy, a lawyer and master negotiator, would have been proud.

Common reasons to sell a house as-is

Much of my decision to go the as-is route had to do with convenience. But people opt to sell homes in their current state for a variety of reasons, usually related to money, time or effort — or a combination of the three.

Finances: Home-improvement projects can be very expensive. There are already plenty of costs that add up when selling a house, and a home in disrepair can raise those costs even further. Selling a house as-is allows you to skip that expense.

Timeliness: The as-is status can also expedite your timeline. Let’s say you need to relocate for work and sell your home as quickly as possible. Undertaking a renovation project would seriously delay your listing. If there’s enough demand out there from buyers, selling as-is can help speed up the process.

Convenience: Sometimes, selling as-is just seems the most practical course. In cases where a home is inherited (like mine) or needs to be sold following a divorce, for example, the seller might opt for an as-is sale to avoid the hassle and responsibility of preparing the house for the market.

Does selling as-is lose you money?

Broadly speaking, properties listed as-is do tend to be priced lower: Buyers just aren’t going to offer as much if they know they’ll have to invest in repairs and renovations once they take possession.

It’s hard to set a specific percentage on how much less you will make selling as-is versus fixing the home up before listing it. Much depends on the condition of the property, its location and how competitive the local real estate market is. In a strong seller’s market, the price gap typically found between an as-is sale and a regular sale will be smaller.

And if a home is on a prime piece of property or in a highly desirable neighborhood — especially one that doesn’t see new listings often — its condition matters less because the location is paramount. That certainly characterized my situation. My family home was in a subdivision that had only 12 houses, all widely spaced throughout hilly terrain with river views. Lots as large as ours were getting rare in fast-growing Louisville, my broker noted.

Pros and cons of selling a house as-is

Just like any real estate transaction, an as-is home sale has upsides and downsides.

Pros

Fewer costs: Avoiding expensive repairs helps you avoid potential financial strain. Plus, selling a house as-is means there’s no pressure to make it look perfect — no need to pay for professional staging inside or enhanced curb appeal outside — which translates to less of a ding on your bank account.

Faster process: Rather than waiting weeks or even months for repairs and other projects to be completed, you can list your home on the market and start showing it immediately. The sooner you list it, the sooner it can sell — my own listing was up within weeks of signing the broker’s contract.

Smoother closing: The upfront knowledge that no repairs will be made means there’s less negotiation and no haggling back and forth over concession requests, which helps smooth the path toward a straightforward, uncomplicated closing (in theory, at least).

Cons

Reduced profit: Homes sold as-is generally fetch a lower price, due to the anticipated repair costs the buyers will have to shoulder. Skipping the repairs saves you money on the front end, but you can’t expect to price an as-is property the same way you would if it were in move-in-ready condition. If my father’s house had been thoroughly modernized and in tip-top shape, I might have listed it for $100,000 more, or even higher.

Fewer buyers: While some folks love a fixer-upper, many house-hunters are looking for move-in-ready properties and don’t feel comfortable taking on a “project.” So,the number of interested buyers will likely be less for an as-is listing, and selling could take longer. In my case, it took four months before a serious offer came along.

Financing challenges: Potential buyers might face difficulties in securing a loan for a house in poor shape, which can prolong the selling timeframe. It might even lead to the deal falling through, particularly if the home appraisal comes in short of the agreed-upon price.

5 tips for how to sell a house as-is

These tips can help get you to a smooth and successful as-is sale:

1. Be upfront about the home’s condition

Make it clear from the get-go — in the listing and any other marketing materials — that the home is being offered in as-is condition and that you will not be making repairs or addressing problems. And put it in writing in your purchase and sale agreement as well.

Star

Keep in mind: Make it clear from the get-go that you will not be making repairs or addressing problems.

It may be useful to get a pre-listing home inspection so that you can be specific about exactly what work is needed and offer transparency to potential buyers. Providing inspection details upfront can instill trust, making the situation more appealing to a buyer and possibly accelerating the sale. The inspection report can also help you determine a fair list price.

2. Remember seller’s disclosures

Selling as-is doesn’t excuse you from disclosing known defects. For example, if you know there’s a mold problem or a crack in the foundation, you’re legally obligated to inform the buyer. If you misrepresent the condition of the property, you could potentially be held liable for any issues that arise.

Nearly all states across the country have laws in place outlining what home sellers must disclose. Many have specific disclosure forms that sellers are legally obligated to complete and supply to buyers. And in many places, real estate brokers and agents are also required to disclose any known defects.

Star

Keep in mind: You’re responsible for disclosing information that’s within your personal knowledge — you’re not required to go searching for problems.

“Known” is the operative word here, though: You’re responsible for disclosing information that’s within your personal knowledge — you’re not required to go searching for problems. I carefully read and signed Kentucky’s disclosure statement, attesting that there were no issues I was aware of.

3. Keep things as tidy as possible

You might not be investing in any major upgrades, but that doesn’t mean you should give up on presenting your home in its best light. You can still make sure the property is neat and tidy. Keep the yard mowed, surfaces clean, beds made and dishes put away, and minimize clutter as much as possible. Be ready for viewings at all times, as you would with any home sale.

Star

Keep in mind: Looking dated is one thing, looking derelict is another.

You might also invest in some small fixes beforehand, as I did at my broker’s recommendation: replaced broken window panes, smoothed over wall cracks and repainted several rooms. All told, it came to about $1,600 — a small price to pay to spruce things up. Looking dated is one thing, looking derelict is another.

4. Know how low you can go

Think about what your rock-bottom price would be — the lowest offer you’d be willing to accept — and be ready to make a quick counter-offer if someone bids lower. That’s what I did: I had a $600,000 threshold in my head. Anything above that, I figured, was gravy.

Speaking of compromises: Even with an as-is listing, some buyers will still try to negotiate based on home inspection results, as mine did. If a few hundred (or thousand) dollars is all that’s standing in the way of making a deal, you can always agree to make a repair. Or, trim your asking price accordingly.

Star

Keep in mind: If a few hundred dollars is all that’s standing in the way of making a deal, you can always agree to make a repair.

However, if they’re asking for major modifications, as mine were, stand firm. I provided paperwork that proved recent repairs or attested to the condition of the HVAC and plumbing systems and other infrastructure. But I drew the line at agreeing to finance special inspections or carry out expensive upgrades — that would negate the whole point of an as-is sale.

5. Find a trusted real estate agent

It might be tempting to try to sell your house on your own to avoid paying a Realtor’s commission fee, but it’s probably smarter to enlist a professional who has experience selling as-is homes. An experienced agent can help you set a price that accurately reflects the value of the home, and show it in a way that helps buyers see its potential.

Star

Keep in mind: An experienced agent can show the home in a way that helps buyers see its potential.

My broker and his team certainly aimed for “the fixer-upper folks,” as he dubbed them. And I will always greatly appreciate the professional way he drew up our contract, making the as-is clause watertight enough for me to rely on it when I had to.

I sold my father’s house as-is — here’s what I learned

The time had come to sell my old Kentucky home. My 90-year father had died, and I had no desire to move back to my birthplace. Built in the French Provincial style by my parents in 1963, the house was beautiful, with a pool and tennis court, surrounded by woods. But it hadn’t been updated in 15 years, since my mom’s death, and in his decline, my dad had let things go.

“Spare yourself the expense of renovating and the hassle of negotiating,” friends and real estate pros advised me. They thought people would want the property for the land, a three-acre lot, and the location, a peaceful suburb only 20 minutes from downtown Louisville. So I decided to sell the place in its existing state, as-is.

We listed it at $650,000. After some frivolous nibbles, a serious offer came in: $600,000. My broker said “take it,” but — feeling emboldened by experience in eBay bidding wars — I countered with $625,000. Sold! Well, that was easy, I thought.

Until the requests began.

I’d allowed the buyers a generous period of time to inspect the property and plan their renovations. But I wasn’t prepared for the pop quizzes that followed: Did the septic lines run under the tennis court? When was the oil tank last lined? Was the county ever going to run gas lines out to the neighborhood? Each one was accompanied by a follow-up question: If this turns out to be a big expense for us, can you adjust the asking price?

Each time, I furnished the requested info as best I could while ignoring the hints about the price. Then, just one week before the scheduled closing, the buyers suddenly got scared the house might have asbestos. Would I pay for a special inspection and removal if it were true? If not — basically a threat, not a hint this time — the sale was off.

I panicked: Could I afford, not just financially but emotionally, to put the house back on the market, especially since the prime summer selling season was nearly over?

But after a careful look at our purchase and sale agreement, sanity returned. “Remind these folks of the contractual facts of life,” I instructed my broker. They had agreed, in writing, to buy the home in its current state, with no repairs or concessions on my (the seller’s) part. That was the deal; that’s what “as-is” means. If they reneged now, I would sue them for breach of contract — and probably win, a real estate attorney who looked at the agreement told me.

After a tense few days, they finally backed down, and the closing went through as planned. I signed remotely, having canceled my flight during my moment of panic. After closing costs, the broker’s fee and paying off the mortgage, I netted a small profit.

Do I have regrets about selling the house as-is? To be honest, yes, a little. Not so much about the money — I was resigned to getting less — but because it didn’t save me as much hassle as I’d expected. Still, the as-is status did give me the grounds, and the guts, to stand firm at a crucial moment. I think Daddy, a lawyer and master negotiator, would have been proud.

Common reasons to sell a house as-is

People opt to sell homes in their current state for a variety of reasons, usually related to money, time or effort — or a combination of the three.

Finances: Home-improvement projects can be very expensive. There are already plenty of costs that add up when selling a house, and a home in disrepair can raise those costs even further. Selling a house as-is allows you to skip that expense.

Timeliness: The as-is status can also expedite your timeline. Let’s say you need to relocate for work and sell your home as quickly as possible. Undertaking a renovation project would seriously delay your listing. If there’s enough demand out there from buyers, selling as-is can help speed up the process.

Convenience: Sometimes, selling as-is just seems the most practical course. In cases where a home is inherited (like mine) or needs to be sold following a divorce, for example, the seller might opt for an as-is sale to avoid the hassle and responsibility of preparing the house for the market.

Does selling as-is lose you money?

Broadly speaking, properties listed as-is do tend to be priced lower: Buyers just aren’t going to offer as much if they know they’ll have to invest in repairs and renovations once they take possession.

It’s hard to set a specific percentage on how much less you will make selling as-is versus fixing the home up before listing it. Much depends on the condition of the property, its location and how competitive the local real estate market is. In a strong seller’s market, the price gap typically found between an as-is sale and a regular sale will be smaller.

And if a home is on a prime piece of property or in a highly desirable neighborhood — especially one that doesn’t see new listings often — its condition matters less because the location is paramount. That certainly characterized my situation. My family home was in a subdivision that had only 12 houses, all widely spaced throughout hilly terrain with river views. Lots as large as ours were getting rare in fast-growing Louisville, my broker noted.

Pros and cons of selling a house as-is

Just like any real estate transaction, an as-is home sale has upsides and downsides.

Pros

Fewer costs: Avoiding expensive repairs helps you avoid potential financial strain. Plus, selling a house as-is means there’s no pressure to make it look perfect — no need to pay for professional staging inside or enhanced curb appeal outside — which translates to less of a ding on your bank account.

Faster process: Rather than waiting weeks or even months for repairs and other projects to be completed, you can list your home on the market and start showing it immediately. The sooner you list it, the sooner it can sell — my own listing was up within weeks of signing the broker’s contract.

Smoother closing: The upfront knowledge that no repairs will be made means there’s less negotiation and no haggling back and forth over concession requests, which helps smooth the path toward a straightforward, uncomplicated closing (in theory, at least).

Cons

Reduced profit: Homes sold as-is generally fetch a lower price, due to the anticipated repair costs the buyers will have to shoulder. Skipping the repairs saves you money on the front end, but you can’t expect to price an as-is property the same way you would if it were in move-in-ready condition. If my father’s house had been thoroughly modernized and in tip-top shape, I might have listed it for $100,000 more, or even higher.

Fewer buyers: While some folks love a fixer-upper, many house-hunters are looking for move-in-ready properties and don’t feel comfortable taking on a “project.” So,the number of interested buyers will likely be less for an as-is listing, and selling could take longer. In my case, it took four months before a serious offer came along.

Financing challenges: Potential buyers might face difficulties in securing a loan for a house in poor shape, which can prolong the selling timeframe. It might even lead to the deal falling through, particularly if the home appraisal comes in short of the agreed-upon price.

5 tips for how to sell a house as-is

These tips can help get you to a smooth and successful as-is sale:

1. Be upfront about the home’s condition

Make it clear from the get-go — in the listing and any other marketing materials — that the home is being offered in as-is condition and that you will not be making repairs or addressing problems. And put it in writing in your purchase and sale agreement as well.

Star

Keep in mind: Make it clear from the get-go that you will not be making repairs or addressing problems.

It may be useful to get a pre-listing home inspection so that you can be specific about exactly what work is needed and offer transparency to potential buyers. Providing inspection details upfront can instill trust, making the situation more appealing to a buyer and possibly accelerating the sale. The inspection report can also help you determine a fair list price.

2. Remember seller’s disclosures

Selling as-is doesn’t excuse you from disclosing known defects. For example, if you know there’s a mold problem or a crack in the foundation, you’re legally obligated to inform the buyer. If you misrepresent the condition of the property, you could potentially be held liable for any issues that arise.

Nearly all states across the country have laws in place outlining what home sellers must disclose. Many have specific disclosure forms that sellers are legally obligated to complete and supply to buyers. And in many places, real estate brokers and agents are also required to disclose any known defects.

Star

Keep in mind: You’re responsible for disclosing information that’s within your personal knowledge — you’re not required to go searching for problems.

“Known” is the operative word here, though: You’re responsible for disclosing information that’s within your personal knowledge — you’re not required to go searching for problems. I carefully read and signed Kentucky’s disclosure statement, attesting that there were no issues I was aware of.

3. Keep things as tidy as possible

You might not be investing in any major upgrades, but that doesn’t mean you should give up on presenting your home in its best light. You can still make sure the property is neat and tidy. Keep the yard mowed, surfaces clean, beds made and dishes put away, and minimize clutter as much as possible. Be ready for viewings at all times, as you would with any home sale.

Star

Keep in mind: Looking dated is one thing, looking derelict is another.

You might also invest in some small fixes beforehand, as I did at my broker’s recommendation: replaced broken window panes, smoothed over wall cracks and repainted several rooms. All told, it came to about $1,600 — a small price to pay to spruce things up. Looking dated is one thing, looking derelict is another.

4. Know how low you can go

Think about what your rock-bottom price would be — the lowest offer you’d be willing to accept — and be ready to make a quick counter-offer if someone bids lower. That’s what I did: I had a $600,000 threshold in my head. Anything above that, I figured, was gravy.

Speaking of compromises: Even with an as-is listing, some buyers will still try to negotiate based on home inspection results, as mine did. If a few hundred (or thousand) dollars is all that’s standing in the way of making a deal, you can always agree to make a repair. Or, trim your asking price accordingly.

Star

Keep in mind: If a few hundred dollars is all that’s standing in the way of making a deal, you can always agree to make a repair.

However, if they’re asking for major modifications, as mine were, stand firm. I provided paperwork that proved recent repairs or attested to the condition of the HVAC and plumbing systems and other infrastructure. But I drew the line at agreeing to finance special inspections or carry out expensive upgrades — that would negate the whole point of an as-is sale.

5. Find a trusted real estate agent

It might be tempting to try to sell your house on your own to avoid paying a Realtor’s commission fee, but it’s probably smarter to enlist a professional who has experience selling as-is homes. An experienced agent can help you set a price that accurately reflects the value of the home, and show it in a way that helps buyers see its potential.

Star

Keep in mind: An experienced agent can show the home in a way that helps buyers see its potential.

My broker and his team certainly aimed for “the fixer-upper folks,” as he dubbed them. And I will always greatly appreciate the professional way he drew up our contract, making the as-is clause watertight enough for me to rely on it when I had to.



This article was originally published by a www.bankrate.com . Read the Original article here. .

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Should I Sell Or Rent My House In Today’s Market? | Bankrate

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FluxFactory/GettyImages; Illustration by Hunter Newton/Bankrate

Key takeaways

Deciding whether to sell your house or rent it out depends on personal circumstances, such as immediate cash needs and future housing plans.

Selling might be the better option if you need the proceeds to pay for your next home or stand to make a large profit.

Renting it out could be a good choice if you’re looking for additional income or if you’re moving temporarily and plan to come back.

There are many reasons why a homeowner might want to move. But whatever your reason, one question still applies: What should you do with your current home? Depending on your financial situation and your local housing market, you might consider renting it out rather than selling. If you’re caught in the sell versus rent debate, here are some factors to consider, including the costs.

Should I sell or rent my house?

A home is the biggest financial asset most people own, and deciding what to do with it shouldn’t be taken lightly. There are pros and cons to both options: For example, selling gets you a large windfall of cash all at once, while renting earns you smaller increments of steady monthly income from your tenants. If you have somewhere else to live and can afford to hang on to the house, renting it will also allow you to continue building equity as home values go up. Take a look at the following scenarios to determine which path is best for you.

When selling your home is a good choice
If you need the cash to pay for your next house

If your ability to buy a new home relies on accessing the money tied up in the current one, then selling is the best option. That way, you can take all your proceeds from the sale and put it toward your new down payment. Buying a new home while selling your current one can be a tricky balancing act, so be sure to work with an experienced real estate agent who can guide you through the process.

If you have no interest in being a landlord

Managing a rental property is time-consuming and often challenging. Are you handy and able to make some repairs yourself? If not, do you have a network of affordable contractors you can reach out to in a pinch? Consider whether you want to take on the added responsibility of being a landlord or paying for a third party to take care of things instead.

If you stand to make a significant profit

Property values have risen all over the country over the past few years, and home prices remain high. Depending on how long you’ve owned your home, how much you paid for it and how hot your local market is, selling could net you a significant windfall. Take a look at nearby real estate comps to see how much homes similar to yours have been selling for.

If you are eligible for capital gains tax exemptions

If you do sell your home for a profit, you may be able to exclude up to $250,000 of capital gains from the sale (or up to $500,000 for married couples filing jointly) from your taxes. For this to apply, the home must have been your primary residence for at least two out of the last five years, among other criteria.

When renting your home is a good choice
If your move is temporary

If your move is short-term and you plan on returning to your current city in the future, you may want to keep your home and rent it out in the meantime. Knowing there will be a place for you to live when you return provides peace of mind — and when you factor in closing costs, it may even cost less than selling and purchasing another home at a later date.

If you want the rental income

Extra income can be hard to turn down! But if you decide to rent your current home and want to buy another one with a mortgage, keep in mind that lenders will consider rental income when determining your financing. In some cases, a lender will only allow a portion of your rental income to be counted as an income source. In addition, you will be carrying two mortgages at once, so make sure this is something you are financially able to take on.

If rental demand in your area is high

Is your home in a hot neighborhood with lots of buzz? Is it in an extremely desirable school district, near a vacation destination like a beach, or close to the best amenities in town? Evaluate the rental demand in your area — renting is much less stressful when finding a tenant is fast and easy. Research the local housing market to determine what other similar properties are charging in rent. You can also speak to a local agent or property management company to learn more about the rental demand in your neighborhood.

If you expect home values to rise in your area

It’s impossible to foresee with 100 percent accuracy where the housing market is headed. That being said, you may be able to make an informed prediction. If you expect that your current home’s value will increase within a few years or less, you might want to consider renting it out now and selling later, to take advantage of the price appreciation.

Selling vs. renting your home: Costs to consider

Both renting and selling a home will incur costs. One of the most important things to think about is whether the rental income you’d receive will be enough to cover the property’s mortgage and upkeep.

To determine how much rental income you can reasonably expect to earn, take a look at what other similar properties are charging and weigh that against the costs of owning and maintaining the property. From there, you can gauge whether you’ll be able to recoup your expenses, and maybe even turn a profit.

Costs of renting out a home

Mortgage: Even though you’ll be earning rental income, you’re still responsible for paying the mortgage, which may or may not be fully covered by the rent you bring in. The same goes for property taxes.

Insurance: Landlord insurance can cover certain costs, such as damage to the home or someone getting injured on the property. You can expect this to cost roughly 25 percent more than the typical homeowners insurance policy — which you’ll also still have to pay for.

Maintenance and repairs: You’ll need to keep up with routine maintenance to ensure the home is fit for tenants. As a rule of thumb, budget at least 1 percent of the home’s value every year (more if it’s an older property) to pay for maintenance.

Finding a tenant: To find a tenant, you’ll have to get the word out. Consider any marketing costs you may incur, such as taking out an advertisement. You may also need to pay for background and credit checks of potential renters — though you might be able to pass this nominal expense on to the tenant.

Vacancies: Consider, too, the cost of vacancies between tenants. If a tenant moves out and you don’t have a replacement, that’s income you’re losing out on.

Property management fees: Hiring a property manager makes being a landlord less onerous, but it will eat into your profits as well. These companies tend to charge a percentage of the rent price, typically around 10 percent.

HOA fees: If your home belongs to a homeowners association, you’ll also be responsible for HOA fees, which vary considerably depending on what type of amenities are offered.

Costs of selling a home

Agent commissions: For ages, the typical real estate commission has been between 5 and 6 percent of a home’s sale price, split evenly between the seller’s agent and the buyer’s agent and paid entirely by the seller. That is about to change, however, as a result of a legal battle recently settled by the National Association of Realtors. Beginning this summer, depending on the deal, buyers may be responsible for paying their agent’s commission directly. That said, a single agent’s fee is still a significant expense: On a $400,000 sale, for example, 2.5 percent comes to $10,000.

Home improvements: To get your home in shape to sell, you’ll likely have a few services to pay for. These might include sprucing up the landscaping, a thorough deep cleaning and making any necessary repairs. And paying a pro to stage your home can increase its desirability, potentially bringing in a higher price.

Closing costs: Sellers typically incur some closing costs beyond Realtor commissions, too, such as attorney fees, transfer taxes and title insurance.

Mortgage payoff: If you still have a mortgage on the home, once you’ve sold it, some of the proceeds will go toward paying off the remainder of your loan.

What if there’s a recession?

Some economists still predict a recession in the country’s near future. According to Bankrate’s most recent Economic Indicator Poll, the odds of a recession over the next 12 months are 33 percent. Before you make a final decision on whether to sell your house or rent it out, ask yourself how a serious economic downturn might affect your finances. Is your job stable? Is your savings strong? Would you still be able to manage two mortgages during a recession, or the possibility of less rental income than expected? If the answer to any of these questions is no, selling may be the safer option.

Bottom line

The question “should I sell or rent my house?” requires careful consideration of your financial situation, lifestyle and local housing market. To help guide your decision, consider the costs of both options, whether you’ll return to your current location anytime soon and if you’re interested in being a landlord.



This article was originally published by a www.bankrate.com . Read the Original article here. .

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How To Sell Your House In Oregon Fast | Bankrate

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David Gn Photography/Getty Images

The Oregon real estate market is hot, with strong demand for homes and buyers competing for limited inventory. Home prices are well above the national averages and are steadily increasing, with the current statewide median price at $513,100, up 3.6 percent from last year, according to April Redfin data.

Even amid such favorable market conditions, though, it typically takes a month for homes to go into contract. But the good news is, there are ways to speed up the process. Here’s a primer on how to sell your house in Oregon — fast.

How fast can you sell a house in Oregon?

As of April 2024, the median number of days a home spent on the market in Oregon was 28, per Redfin. That’s two days longer than the previous year, and it means it could be a month before your home even goes into contract. (Then, you’ll have to wait even longer for your buyer’s financing to be approved.)

Need to sell faster?

If you list during the window of Oregon’s best time to sell a home, which tends to be between May and July, things will likely move a bit faster. But if you need to speed things up considerably — say, if you’re relocating ASAP for a new job or you need the cash urgently — you have several options to consider.

Sell for cash: One of the quickest ways to sell a home is by working with one of the many companies that buy houses for cash in Oregon. Cash sales means there’s no need to wait on financing, and businesses of this type specialize in speed. Often you’ll have a cash offer within 24 hours and close in a matter of weeks, or even days. But there’s a caveat: You are not likely to get as much money for your home as you would selling the traditional way.

Use an iBuyer: Working on a similar model, iBuyers are known for providing instant offers on homes. However, they also don’t pay top dollar, and they may charge steep fees to boot. One of the largest iBuyers, Opendoor, buys homes in the Portland area.

Price aggressively: Pricing your home to sell is another tactic to consider. This involves studying the market and listing your home to undercut area prices — something that should be done with the guidance of a real estate agent who knows your local market very well.

Sell as-is: If you list your house as-is, you’re telling buyers “what you see is what you get.” As-is listings mean you aren’t willing to negotiate back and forth about repairs with potential buyers, which saves time.

Selling your home in Oregon

If you decide to sell the traditional way, with the assistance of a local Realtor, here are some of the factors to consider and discuss before you list the home.

How should you price your listing?

Getting the pricing right is one of the biggest challenges for home sellers. If you aim too high, you might turn off prospective buyers. And if you aim too low, you might leave money on the table. Pricing your home competitively usually involves your agent pulling and analyzing comps, or similar homes in the neighborhood that have recently sold. This helps you figure out how much your house is worth by giving you a sense of what local buyers have paid for other properties similar to yours,

What should you fix before selling your home in Oregon?

Put yourself in the buyer’s shoes to figure out what you need to repair before listing your home. Obvious issues, like a leaky shower, cracked kitchen tiles or carpeting that’s been ripped up by your dog, should be addressed before they turn off prospective buyers. But you don’t need to go crazy — ask your agent what’s worth doing and what’s not.

Is it worth upgrading your home before you sell?

Probably not. Major upgrades, like full kitchen remodels, rarely recoup their costs. Plus, supply chain issues and labor challenges may delay your sale. Look into faster (and cheaper) ways to increase your home’s value, such as adding an energy-efficient thermostat or repainting the front door.

Should you pay to stage your home?

First impressions are everything, and home staging is one way to make sure your house impresses everyone who sees it. From virtual staging that can make the property pop in online photos to in-person staging with furniture rentals and more, the costs of home staging can vary widely, so consult with your Realtor to see if your home could benefit from this service.

What do you need to disclose to a buyer?

As an Oregon home seller, you will need to complete the state’s seller’s disclosure form, a lengthy document that outlines any defects that could impact the value of the home. The buyer has five business days to revoke their offer after reviewing this disclosure statement. Additionally, if your property is part of a homeowners association, be prepared to hand over documents that share the association’s financials, bylaws and more.

The closing

Selling a home isn’t free, in Oregon or anywhere. Home sellers should be prepared to direct a portion of their proceeds to cover a range of closing costs and other expenses.

Costs of selling a home in Oregon

Realtor commissions: One of the biggest costs associated with selling a home is the money owed to the real estate agent(s) involved in the transaction. A listing agent typically receives between 2.5 and 3 percent of the home’s sale price — on a median-priced $513,100 Oregon home, 2.5 percent comes to more than $12,800. Depending on the deal you strike, you may or may not have to pay your buyer’s agent’s fee as well.

Title insurance: This expense is your responsibility as the seller, and the cost depends on the purchase price of your home. For example, a standard Oregon title policy on a $400,000 home is $1,150, while the price jumps to $1,500 for a $600,000 property.

Transfer taxes: While sellers in many states must pay real estate transfer taxes to shift ownership to the buyer, most counties in Oregon don’t charge this common tax. One exception is Washington County (home to Beaverton, where Nike’s corporate headquarters are based): For sellers here, it’s standard practice to split this fee with the buyer.

Escrow fees: You will likely need to pay a fee for the escrow account that manages funds for the transaction; this cost may be able to be split with the buyer.

Attorney fees: Home sellers in Oregon are not required to hire an attorney. But it’s smart to consider adding one to your team anyway, to oversee the legal details and make sure the paperwork is in order.

Capital gains taxes: Because property values have skyrocketed in many parts of Oregon, there may be tax implications from your home sale. Whether you will be subject to capital gains taxes depends on several factors, including how much of a profit you make on the sale.

Next steps

Ready to get moving on selling your house in Oregon? Your next step will depend on what’s more important to you: speed or price. If you need to sell quickly, and are willing to sacrifice a bit of profit to make that happen, reach out to an iBuyer or cash-homebuying company in your area. They will be able to close a deal fastest. If time is not a pressing factor and you’d rather hold out for the best price possible, start looking for local Realtors who can help you bring in top dollar for your Oregon home.

FAQs

Is it a good time to sell a home in Oregon?

Yes. Oregon is currently experiencing a seller’s market, with high prices and not enough inventory to meet demand. April 2024 data from Redfin shows that the state has only a two-month supply of available homes for sale — it typically takes a five- or six-month supply for a balanced market that doesn’t favor either buyers or sellers.

Do you need an attorney to sell your house in Oregon?

No, Oregon law does not require sellers to hire a lawyer for the transaction. However, hiring legal expertise is usually a good decision. Selling a home is complex, with lengthy contracts, legal disclosures and a lot of money at stake. A real estate attorney can make sure your interests are protected and that any issues are resolved properly.

Who pays for the title policy in Oregon?

The seller is usually responsible for paying for the title insurance policy in Oregon. The cost varies based on the price of the home: The more expensive a home is, the more expensive the title policy will be.



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How To Sell Your House In 2024: A Step-By-Step Guide | Bankrate

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Key takeaways

Selling a house can take several months from start to finish, so it’s crucial to plan ahead and stay organized.

Start by setting a timeline to stick to and hiring a local real estate agent who knows your market well.

Be sure to get professional-quality listing photos taken — National Association of Realtors data shows that 100 percent of homebuyers look at listings online.

Most home sellers dream of a stress-free sale in which they simply list their house, quickly find a qualified buyer, collect the cash and hand over the keys. If only it were that simple! In reality, selling a home involves many moving parts — some that you can control, and some that are out of your hands.

For example, geography might influence how long your house lingers on the market or how high of a list price you can get away with. In locations where competition is hot and inventory is low, odds are you’ll sell faster and command a higher price. Conversely, in places where home sales have cooled, you will likely have to work harder to attract the right buyer.

The real estate market has shifted significantly since the frenzied heights of the pandemic. Today, high prices are combining with high interest rates to create serious affordability challenges: The median price for a home is more than $400,000, and mortgage rates hit a 22-year high in 2023. It’s no wonder many buyers have little choice but to stay on the sidelines until either rates or prices (or both) come down.

So, as a seller, it’s smart to be prepared and control whatever factors you’re able to. Things like hiring a great real estate agent and maximizing your home’s online appeal can translate into a smoother sale — and more money in the bank. Here’s a nine-step guide to how to sell your house successfully.

Set a timeline: Start prepping your home well before you plan to list.

Hire an agent: An experienced agent who knows the market well can best position your home for local buyers.

Determine upgrades: Take on only projects your house really needs — you don’t have to upgrade everything.

Set a realistic price: Your agent can help you find the sweet spot.

List with pro photos: Buyers look at homes online first, so be sure you have a solid digital presence.

Review offers: Consider all factors, not just the highest dollar amount.

Weigh closing costs: Keep track of how much more you’ll need to pay at the closing table.

Consider an attorney: Legal expertise can help protect this significant financial transaction.

Close: Make sure you have all your documentation ready.

1. Set a timeline for selling your home

Selling a house is a major undertaking that can take several months from start to finish — or much longer, depending on local market conditions. So it makes sense to plan ahead and stay organized.

At least two or three months before you plan to list, consider getting a pre-sale home inspection. This isn’t mandatory, but it can be wise, especially in an older home. For a few hundred dollars, you’ll get a detailed inspection report that identifies any major problems. This alerts you in advance to issues that buyers will likely flag when they do their own inspection later. By being a couple steps ahead, you might be able to speed up the selling process by doing needed repairs in tandem with other home-prep work. Then, by the time your house hits the market, it should be ready to sell, drama-free and quickly.

About a month before listing your house, start working on deep cleaning in preparation for taking listing photos. Keep clutter to a minimum, and consider moving excess items to a storage unit to show your home in its best light.

2. Hire an agent who knows the market

The internet makes it easy to delve into a real estate agent’s experience, helping you choose the right person to work with. Look up agents’ online profiles to learn how long they’ve been in the industry, how many sales they’ve closed and what professional designations they may have earned. Pay attention to how and where they market their listings, and how professional their listings’ photos look.

“Any designation they’ve earned is a huge plus, because it’s a sign they’ve taken the time to learn about a particular niche,” says Jorge Guerra, president and CEO of Real Estate Sales Force in Florida.

Some homeowners might be tempted to save on paying a commission and instead sell their home themselves, without an agent. This is known as “for sale by owner,” or FSBO. The amount sellers stand to save on that fee can be significant, usually 2.5 percent or 3 percent of the total sale price. On a $400,000 home sale, for example, 3 percent comes to $12,000.

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Keep in mind: Real estate commissions are often negotiable.

However, a listing agent does a lot to earn their fee. For example, they can expose your house to the broadest audience and negotiate on your behalf to garner the best offers possible. If you go it alone, you’ll have to personally manage prepping your home, marketing it, reviewing buyers’ offers and handling all the negotiations and closing details.

When working with an agent, keep in mind too that real estate commissions are often negotiable. As a result, you might be able to get a break at the closing table. But, depending on the deal, you may still have to pay your buyer’s agent’s fee.

3. Determine what to upgrade — and what not to

Before you spend money on costly upgrades, be sure the changes you make will have a high return on investment. It doesn’t make sense to install new granite countertops, for example, if you only stand to break even on them, or even lose money. Plus, these improvements may not be necessary, particularly if inventory levels are low in your area (which they are in most areas these days). A good real estate agent will know what local buyers expect and can help you decide what needs doing and what doesn’t.

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Keep in mind: Inexpensive DIY projects can also go a long way. A fresh coat of neutral paint and spruced-up landscaping are low-cost ways to make a great first impression.

Updates to the kitchen and bathrooms often provide the highest return on investment. But inexpensive DIY projects can also go a long way: A fresh coat of neutral paint and spruced-up landscaping are low-cost ways to make a great first impression.

4. Set a realistic price

Even in competitive markets, buyers don’t want to pay more than they have to, so it’s crucial to get the pricing right. Going too high can backfire, while underestimating a home’s value might leave money on the table. To price your home perfectly from the start, consult local real estate comps. This information about recently sold properties in your neighborhood gives you an idea of what comparable homes around you are selling for, thus helping you decide how much you might reasonably ask.

“A frequent mistake sellers make is pricing a home too high and then lowering it periodically,” says Grant Lopez, a Realtor at Keller Williams Heritage in Texas and the former chairman of the San Antonio Board of Realtors. “Some sellers think this practice will yield the highest return. But in reality, the opposite is often true: Homes that are priced too high will turn off potential buyers, who may not even consider looking at the property.”

In addition, homes with multiple price reductions may give buyers the impression there’s something wrong with it. So it’s best to eliminate the need for multiple reductions by pricing your home to attract the widest pool of buyers from the start.

5. Include professional listing photos

This step will likely involve your real estate agent hiring a photographer to take marketing photos of your home, and registering the listing with the local MLS (multiple listing service). Here are some tips to get your home market-ready:

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Keep in mind: You’ve probably heard of curb appeal, but pros say online appeal is now even more important.

Take professional photos: With the ubiquity of online house-hunting these days, high-quality photos are critical. A pro photographer knows how to make rooms appear bigger, brighter and more attractive. The same goes for the property’s exterior and outdoor areas.

Focus on online appeal: You’ve probably heard of curb appeal, but professionals say online appeal is now even more important. In fact, 100 percent of homebuyers use the internet to search for a home, according to the National Association of Realtors, so online listings are crucial. “Your home’s first showing is online,” Guerra says. “The quality of your web presentation will determine whether someone calls and makes an appointment or clicks on the next listing.”

Stage it and keep it clean: Staging a home entails removing excess furniture, personal belongings and unsightly items from the home and arranging rooms for optimal flow and purpose. If you’re in a slower market or selling a luxury home, investing in a professional stager could help you stand out. Nationally, professional home staging costs an average of around $1,808, according to HomeAdvisor, but prices range between $792 and $2,840.

Clear out for showings: Make yourself scarce when potential buyers come to view your home. Let them imagine themselves in the space, free from distraction. “Seeing the current homeowner lurking can cause buyers to be hesitant to express their opinions,” says Lopez. “It could keep them from really considering your home as an option.” Generally, buyers are accompanied by their real estate agent to view your home. You can also ask your own agent to be present at showings.

6. Review and negotiate offers

Once buyers have seen your home, offers will ideally start rolling in. (Keep in mind, though, that with mortgage rates currently high, the number of buyers who can still afford to buy might be smaller than you’d like.) This is where a real estate agent is your best advocate and go-to source for advice. If your local market favors sellers, buyers will likely offer close to asking price, or possibly even above. On the other hand, if sales are slow in your area, you may have to be open to negotiating.

When you do receive an offer, you’ll have a few choices: accept it, make a counter-offer or reject the offer. A counter-offer is a response to an offer in which you negotiate on terms and/or price. You can offer a credit for fresh paint and carpet, for example, but insist on keeping your original asking price in place. Counters should always be made in writing and provide a short time frame (ideally 48 hours or less) for the buyer to respond.

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Keep in mind: You might be tempted to simply go with the highest bid, but look closely at other aspects of the offer, too.

If you’re lucky enough to get multiple offers, you might be tempted to simply go with the highest bid. But look closely at other aspects of the offer, too, such as:

Form of payment (cash versus financing)
Type of financing
Down payment amount
Contingencies
Concession requests
Proposed closing date

Be mindful that if a buyer is relying on lender financing, the property will have to be appraised. If there’s any shortfall between the purchase price and appraised value, that gap will have to be made up somehow, or the deal could fall apart.

7. Weigh closing costs and tax implications

In any real estate transaction, both parties must pay at least some closing costs. It has long been the custom that the seller pays the real estate agents’ commissions, which usually total between 5 and 6 percent of the home’s sale price. This can be a big chunk of change: For example, on a $400,000 home, 5 percent comes to $20,000. However, that may soon change due to a federal lawsuit, and as of late summer, homebuyers may pay their own agent’s commission.

Some other closing costs commonly paid by the seller include transfer taxes and recording fees. Additionally, if the buyer has negotiated any credits to be paid at closing — to cover repairs, for example — the seller will pay those, too. Your real estate agent or the closing agent should provide you with a complete list of costs you’ll be responsible for at the closing table.

The good news is that you may not owe the IRS taxes on your profits from the sale. It depends on whether it was your primary residence, how long you lived there and how much you make on the sale. If you’ve owned and lived in your home for at least two out of the previous five years before selling it, then you will not have to pay taxes on any profit up to $250,000. For married couples, the amount you can exclude from taxes increases to $500,000. If your profit from the home sale is greater than that, though, you’ll need to report it to the IRS as a capital gain.

8. Consider hiring a real estate attorney

Some states require sellers to have a real estate attorney to close on a home sale, but many don’t. Regardless of your state’s laws, the expense is worth it to protect such a large financial transaction. It may cost you a couple thousand dollars, but there’s a lot more money than that at stake, and it’s always smart to have a legal expert give everything the OK.

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Keep in mind: Even if your state doesn’t require you to hire a real estate attorney, it’s worth the expense to protect such a large financial transaction.

In addition, an attorney can help fill out paperwork correctly, review contracts and documents, identify potential issues and ensure the sale goes as smoothly as possible. If you’re not sure where to find one, your real estate agent can probably recommend someone.

9. Gather paperwork and close

Lots of paperwork is needed to properly document a home sale, so keep it organized all in one place to help things go more quickly. Your agent can help you make sure you’ve got everything you need. Some of the main documents you’ll need to compile include:

Original purchase contract
Property survey, certificate of occupancy and certificates of compliance with local codes
Mortgage documents
Tax records
Appraisal from your home purchase
Homeowners insurance
Home inspection report, if you had one
Seller’s disclosure statement

Finally, bring all that paperwork — plus payment of any fees and the keys to give the new owners — to the closing. Once everything is signed and handed over, your house is sold!

FAQs

What should I do first when selling my house?

Putting your home on the market is a major step, and like most big life decisions, it’s best to get organized before you dive in. The process can take several months, so once you decide you want to sell, the best thing to do first is to consider your timeline. When do you need to move? What date do you hope to be closed by? Make sure you give yourself enough time to prep the property for showings and find a real estate agent you trust before actually putting the home on the market.

What is the fastest way to sell my house?

If you’re wondering how to sell your house in a hurry, consider foregoing a traditional agent-assisted sale in favor of selling to a cash homebuyer or iBuyer. These companies make quick cash offers and close home sales very quickly — in a matter of a few weeks, or even less. But you likely won’t get as high of an offer as you’d get if you sold on the open market.

Do I need a lawyer to sell my house?

That depends on what state you live in. Some states require a real estate attorney to manage any sale transaction, some don’t. Even if it’s not a legal requirement, though, consider hiring one anyway — real estate contracts can be very complicated, and there is a lot of paperwork involved and a lot of money at stake. It’s worth the cost to have legal expertise looking out for your interests.

Do I need a Realtor to sell my house?

No. It’s perfectly possible to sell a home on your own with what’s called a for sale by owner (FSBO) listing. However, going without a real estate agent means all the work an agent would normally do — researching comps, determining the best list price, coordinating showings, negotiating with potential buyers — is up to you to do yourself. It’s a lot of work, and a big time commitment.



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How To Sell Your House In Tennessee Fast | Bankrate

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If you want to sell your home fast in Tennessee, you may find yourself facing some headwinds. The supply of homes jumped by more than 20 percent in April, according to data from Tennessee Realtors, and homes typically spend nearly two months on the market before going into contract.

If time is not on your side, don’t worry: There are ways to speed up a sale in the Tennessee housing market. Read on for everything you need to know about how to sell your house in Tennessee fast.

How fast can you typically sell your home in Tennessee?

It takes a long time for the typical home to sell in Tennessee: 53 days in April, according to Redfin data. That’s almost two months just to go into contract; after that you’ll probably need to wait several more weeks for the buyer’s financing to be approved. That might move a bit faster in late spring and early summer, which are historically the best times of year to sell, and it also varies from one market to the next. In Memphis, for example, that metric is 42 days — much faster than 53, but still a long time.

Need to sell faster?

If you can’t wait that long, or can’t afford to, there are ways to get a deal done on a tighter timeline.

Sell to an iBuyer: Depending on where in Tennessee you live, you might be able to get a quick cash offer in from an iBuyer. Offerpad buys properties throughout the Nashville metro area, for example, and Opendoor buys homes in the Chattanooga, Nashville and Knoxville markets. Be aware that you’ll pay for the convenience of speed, though: iBuyers typically offer below-market-value prices, and they may charge fees.

Sell to a cash homebuyer: There are many other companies that buy houses for cash in Tennessee, too, all of which work on a similarly speedy timeline (and offer similarly low prices). These companies usually buy homes in any condition, no matter how rough, which can make them good options for homes in serious disrepair.

Sell as-is: Another option is to list your house on the open market, but with an “as-is” disclaimer. As-is listings indicate that the seller isn’t going to negotiate with a buyer about repairs, which speeds up the process by eliminating the back-and-forth bargaining that can often hold things up.

Sell with an agent: You can also take the traditional route to selling your home, listing it with a local real estate agent — just be upfront that speed is your number-one concern. An experienced agent will be able to market your home with that in mind, which may include pricing aggressively to motivate potential buyers.

Selling your home in Tennessee

If you’re selling the traditional way, here are some topics to discuss with your agent before you list.

How should you price your listing?

How much is your house worth? Your agent will be an invaluable resource in helping you determine the right asking price for your home. By reviewing local comps, you’ll get a sense of what buyers have been willing to pay for nearby homes with similar characteristics to yours. You’ll want to put a finger on the pulse of the local market, too. For example, while prices have jumped by more than 18 percent in Morristown over the past year, according to Redfin, they declined by more than 3 percent in Memphis.

What should you fix before selling your home in Tennessee?

To fix or not to fix? That is the question that so many homeowners have as they get ready to list properties for sale. While visible issues, like water damage from a leak, should be addressed, there are some repairs you don’t need to bother making. It’s smart to ask your agent what can stay as-is, and what might turn off prospective buyers.

Is it worth upgrading your Tennessee home before you sell?

It’s tempting to think that a major renovation — a new kitchen, for example — will dramatically increase the sale price of your home. But the reality is that most big projects don’t recoup their full costs at resale. And waiting on contractors will only delay your sale further. Instead of investing a large chunk of cash in a remodel that may or may not pay off, consider cheaper ways to boost your property value.

Should you pay to stage your home?

Professional staging can bring some star power to your property. Think of it as dressing up for a big date: You want to turn that special someone’s head. Staging your home might be as simple as decluttering and organizing, or it might mean renting furniture to make an empty room come to life. Your agent will be able to tell you if your home could benefit from some extra love.

What do you need to disclose to a buyer?

Like many states, Tennessee requires home sellers to complete a residential property disclosure form. This lists any defects that could impact the value of the property, including any past history of flooding and whether the new owner will need to pay for flood insurance. It’s a standard form, and you simply need to be honest about what you know. You may also need to update it just before closing to verify that nothing has changed in the interim. In addition, if your property is part of a homeowners association, be ready to hand over documentation about the HOA’s finances and bylaws.

The closing

Closing is the final step in the sale process — you’re almost there! But first, there are closing costs to consider. Closing costs in Tennessee are some of the cheapest anywhere in the U.S., but it’s still smart to budget for the amount you’ll have to shoulder.

The biggest line item for sellers has historically been real estate commissions, which usually means handing over 2.5 or 3 percent of the sale price to your agent. Traditionally, the seller has paid the buyer’s agent’s commission fee as well — but that may change at the end of the summer as a result of a major lawsuit settlement. Here are a few of the other closing costs Tennessee sellers typically pay.

Title insurance: There isn’t a set standard for which party covers the cost of title insurance in Tennessee. It can be costly — more than $2,500 on a $500,000 property — but your agent can try to negotiate for the buyer to split the cost with you.

Attorney fees: The state of Tennessee does not require that you hire an attorney to sell your house. However, it’s wise to hire one to represent your interests in the deal. You’ll need to pay for their time, but the peace of mind you’ll get knowing that the contract is buttoned up is priceless.

Seller concessions: If the buyer’s home inspection unearths any problems with the property, they may ask you to help cover part of their closing costs. It’s up to you whether to agree with the concessions, but this is not unusual.

Mortgage payoff: If there is still an outstanding balance on your home’s mortgage, that will be paid off from the proceeds of your sale. Again, this is not unusual.

Next steps

It’s time to figure out what matters more to you: Do you want to sell your house in Tennessee as fast as possible? Or do you want to make as much money as possible? Typically, you’ll need to sacrifice one part of that equation. If speed is crucial, reach out to a cash-homebuying company or iBuyer in your area. If maximizing your profit is more important, reach out to a local real estate agent.

FAQs

How long does it take to sell your home in Tennessee?

Homes spent a median of 53 days on the market before selling in April 2024, according to Redfin data. After that, you typically have to wait a few more weeks for the buyer’s financing to come through before you can close. If you want to move faster, iBuyers and cash-homebuying companies can close an entire deal within a few weeks, and sometimes a few days — but they won’t pay you as much as you’ll make on the open market.

How much do homes sell for in Tennessee?

As of April 2024, the median sale price for homes in Tennessee was $387,500, according to Redfin. Location makes a big difference here, though — for example, the median price in Nashville was a much higher $485,000, while in Jackson it was just $263,500.

How much are closing costs in Tennessee for the seller?

You’ll need to pay your real estate agent his or her commission fee when you sell your home in Tennessee, and depending on the details of your deal, you may have to pay your seller’s agent as well. Beyond that, closing costs for sellers here will likely add up to a few thousand dollars. According to a recent study from Assurance, the average closing costs for a home sale in the Volunteer State come to $3,090.



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Is It a Good Time to Sell a House or Should I Wait in 2024?

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Selling a house is a big decision that requires careful consideration, especially in today’s uncertain economic climate. Given the dramatic rise in mortgage rates over the past year, this is a question on the minds of many sellers who are considering selling their homes.

The latest survey reveals that the percentage of respondents who believe it is a good time to sell a house has increased while those considering it a bad time to sell have decreased. Let’s take a closer look at the factors that can influence whether it’s a good time to sell your house.

Is It a Good Time to Sell a House in 2024?

So, let’s unpack the current trends to see if selling your house right now is a smart move for you.

Sellers Hold the Cards (For Now)

There’s a clear trend emerging: sellers are currently in a sweet spot. The Fannie Mae Home Purchase Sentiment Index® indicates a significant 67% of consumers believe it’s a good time to sell a house. That’s a substantial increase since the end of 2023, even though mortgage rates have been steadily climbing.

This suggests two key things. First, there are plenty of potential buyers out there, fueled by factors like job security and continued income growth (though at a slower pace). Second, with a limited number of houses available on the market, sellers have the upper hand in negotiations.

So, if you’ve been considering selling, this could be a golden opportunity to get top dollar for your property. Here’s the thing: while bidding wars may not be as common as they once were, a well-maintained house in a desirable location is likely to attract multiple offers, giving you the leverage to negotiate a favorable sale price.

A Market with Nuances

However, the market isn’t without its complexities. While home prices are expected to continue rising, the pace of that increase is likely to slow down compared to the rapid acceleration seen in recent years. Additionally, mortgage rates have been on the rise, making affordability a challenge for some buyers. This means that while there are still plenty of buyers out there, they may be more cautious about overspending. As a seller, this translates to the need to price your house competitively to attract serious offers. Don’t expect bidding wars to be the norm anymore.

Making a Strategic Decision

So, should you sell your house now? The answer depends on your individual circumstances. Here are some factors to consider that go beyond national trends:

Your Timeline: Are you flexible on your move-out date? If you can afford to wait, you might benefit from a period of mortgage rate stabilization. But if you have a pressing need to sell, the current market conditions could still be favorable.
Local Market Dynamics: National trends provide a helpful backdrop, but your local market can be quite different. Research what’s happening in your area to get a better understanding of buyer demand and listing prices. Talk to a local real estate agent to get a feel for the specific inventory levels and competition you’ll face.
Your Financial Picture: Are you carrying a high mortgage balance? If so, selling now could help you free up some cash and potentially reduce your monthly housing costs. However, factor in any selling costs and potential moving expenses to ensure the sale makes financial sense for you.

Beyond the Data: Considering the Human Factor

Remember, the decision to sell your house is also a personal one. Consider your emotional attachment to the property and how ready you are for a change. If you’re unsure, don’t feel pressured to jump on the bandwagon.

The Takeaway

The housing market is constantly evolving, but right now, the data suggests that sellers have the upper hand. If you’ve been thinking about selling your house, there’s no reason to wait. However, carefully consider your individual needs and the state of your local market before making a final decision. Consulting with a qualified real estate agent who is familiar with your area can be a valuable step to ensure you get the most out of your sale. They can help you with pricing strategies, navigating negotiations, and ensuring a smooth transaction.

Source: Fannie Mae
Should I Sell My House Now or Wait?

So, the question remains, should you sell your house in 2024 or wait until 2025? The answer is not straightforward, as it depends on a number of factors specific to your personal situation. Some of the key considerations are discussed below. Selling a house is a major decision that requires careful consideration of various factors, including market conditions, personal circumstances, and financial goals.

Assess Current Market Conditions

The first step in deciding whether to sell your house now or wait is to evaluate the current state of the real estate market in your area. Consider the following:

Local Housing Market: Research recent sales data for homes similar to yours in your neighborhood. Are properties selling quickly or languishing on the market? A seller’s market, characterized by high demand and low inventory, might be favorable for selling now.
Home Prices: Monitor trends in home prices in your area. If prices have been steadily increasing, it could be an advantageous time to sell.
Interest Rates: Keep an eye on mortgage interest rates. Lower rates might attract more buyers to the market, potentially leading to a quicker sale.

Evaluate Your Financial Goals

Your personal financial goals and needs play a significant role in the decision-making process:

Profit Margin: Consider how much equity you have in your current home. If you’ve built substantial equity and can sell at a profit, it might be a good time to capitalize on your investment.
Downsizing or Upsizing: Are you planning to downsize or upsize? Your plans for your next home can influence the timing of your sale. If you’re downsizing, the current market conditions might align well with your goals.

Life Circumstances

Your personal circumstances should also be factored in:

Job Relocation: If you’re moving for a new job or career opportunity, the timing of your move might be determined by external factors.
Family Changes: Life events like marriage, divorce, or growing families can impact your housing needs. Consider how your changing family circumstances play into your decision.

Market Trends and Projections

While it’s impossible to predict the future with certainty, researching market trends and projections can provide insights into potential market shifts. Consult with real estate professionals who can offer expert opinions on where the market might be headed.

Real estate professionals, including real estate agents and financial advisors, can offer invaluable guidance. An experienced real estate agent can provide a Comparative Market Analysis (CMA) to help you understand your home’s value in the current market. Financial advisors can help you evaluate the financial implications of selling now versus waiting.

Examining the current housing market trends and data provided by Realtor.com, it’s essential to evaluate whether it’s an opportune moment to sell a house or if waiting might be a strategic move. Let’s delve into the key findings to make an informed decision:

Current Market Trends

The past week’s housing trends offer insights into the dynamics at play. Mortgage rates, which had been steadily increasing for five weeks, finally stabilized but remained above 7%. This stability, however, did little to boost seller confidence, as high mortgage rates have dampened enthusiasm among sellers in recent years.

Buyers, on the other hand, are facing a competitive market characterized by higher down payments compared to previous years. This trend is likely driven by increased competition over limited inventory and buyers with more disposable income, either from recent home sales or higher earnings.

Furthermore, the Consumer Price Index (CPI) inflation data showed improvement, indicating progress in the economic landscape. This positive development can potentially influence mortgage rates in the near future, offering hope for both buyers and sellers.

Key Findings

The median listing price: It remained steady year-over-year for the second consecutive week. Despite this stability, the median listing price per square foot was 3.8% higher than the previous year, suggesting a shift in the types of homes available on the market.
New listings: There was a 6.6% increase compared to one year ago. While seller activity has been on the rise, the rate of growth slowed down, indicating a potential slowdown in new listings.
Active inventory: Homes listed for sale were 35.0% higher than the previous year, giving buyers more options. This abundance of inventory varies geographically, with the South experiencing the highest growth.
Days on the market: Homes spent one day more on the market compared to the previous year. Despite this slight increase, homes continue to sell relatively quickly, driven by competition among buyers.

Given the current market conditions, the decision to sell your house hinges on various factors, including your financial situation, housing needs, and long-term goals. While high mortgage rates may deter some sellers, improving economic indicators offer hope for a more favorable market environment in the future.

If you’re considering selling, it’s essential to weigh the pros and cons carefully. Selling now could mean facing less competition from other sellers, but waiting might allow you to capitalize on potentially lower mortgage rates and increased buyer demand.

Ultimately, the right timing depends on your individual circumstances and risk tolerance. Consulting with a real estate professional can provide valuable insights tailored to your specific situation, helping you make a well-informed decision.

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This article was originally published by a www.noradarealestate.com . Read the Original article here. .

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