Categories Inherited

Sell Your Inherited Home And Save Money

 

Have you inherited a home and begun looking for the best option as you move forward? Are you uncertain of the optimal financial decision for the home and for yourself?

Dealing with an inherited home can be emotional and stressful – we are here to help. In this article, we will outline the costs you may incur with an inherited home and the best options for avoiding what can be hefty fees.

#1 –  Inheritance Tax

Fortunately for anyone inheriting a home in the state of Texas, they do not need to pay any taxes. Texas has no estate tax; neither does it require individuals to pay income taxes on inherited properties. However, if the estate is large, then the individual may be required to pay federal taxes.

#2 – Repair Costs

Depending on the condition of the home, as the new homeowner of the inherited property, you may be looking at costly repairs. If you want to sell the home, you will need to complete the proper inspections to determine the status of the interior and structure of the home. This process secures the safety for the future homeowners. Hopefully, the home was well maintained over the years! However, it may be possible that you will be confronted with minor repairs or even expensive repairs to the foundation – these burdens can be unavoidable. As the new homeowner, you have incurred these costs whether you want them or not. Inherited property can be a financial burden on many families, especially those who do not have extra cash lying around.  

#3 – Agent Fees

Once the home has been repaired, it is time for the sale. If you decide to place the home on the market, it will be necessary to hire a realtor to market and sell the home. When determining which realtor to move forward with, it is imperative that you complete the necessary research on that realtor and their experience to ensure that you are choosing the best option. Selling a home can be an extremely long process, and if you pick the wrong realtor, you may find yourself dealing with months of unsuccessful marketing. Additionally, the realtor you select will also require a fee once the home is sold – they are typically 6%. Make sure you complete your due diligence because selling a home costs you money!

#4 – Attorney Fees

When selling the home, you may also want to to consult an attorney who will review closing statements and ensure that you are getting a fair deal on the home. Additionally, the attorney will review the escrow process to confirm that the transaction is being handled properly – the last thing you want at this emotional time is to lose money due to fraud! Attorney fees prices can vary depending on how extensive their work is.

#5 – Closing Costs

The final major fee that you must pay on your inherited home is the closing costs – this can average anywhere from 2 percent to 5 percent of the home’s value. These costs are generally unavoidable and required by the buyer’s lender.

How To Avoid 100% of These Fees on Your Inherited Home in Texas

Coping with a loss can be emotionally draining, and adding financial stress can really take a toll on an individual. The combination of responsibility, ongoing marketing, attempts to sell, and the mounds of fees that an individual must pay can make inheriting a home feel like a full-time job.

There is, however, one convenient option that allows you to avoid paying 100% of these fees…sell to a seasoned investor who is familiar with the market.

Selling to Gulf State Homebuyers can provide you with the peace of mind that you need when dealing with the sale of an inherited home. Not only are we understanding and compassionate home buying company, but we also cover all fees associated with the home sale; we sell the home as-is, so there’s no need for repairs. There’s also no need to hire an agent – we can assess and purchase the home straight from you; we have an attorney on staff who will ensure your security on the deal – we even cover closing costs!

We make the process quick and easy, allowing you to focus on your emotional stability and healing. Don’t waste your time. With our competitive offers, we provide the best option for anyone who is looking to sell. Contact us today and we can evaluate your home, free of charge.  Click here to get started with our quick, 1-2-3 buying process.

Categories divorce

Ugly Divorce? Sell Your Home With A Quick Close, Today!

It is unfortunate, but in today’s society, over 50% of Americans’ marriages end in divorce. With divorce, comes the splitting of assets. In this article, we will look at the process of selling your home in a divorce and how to save time and money in the process.

It is important to note that in the state of Texas, all assets in a marriage are considered “community property,” with few exceptions. If you owned the property prior to the marriage, or if you inherited or were provided a property as a gift during your marriage, the asset is considered separate property. However, if any funds were used from a shared bank account to make improvements on the home, then the home becomes community property. Any community property is essentially shared equally between you and your spouse. All in all, it can be challenging to prove that an asset is separate property.

Knowing that, we can assume that the home you are trying to sell in your divorce is actually the property of both you and your spouse. Now – let’s get started with your options on how to handle a home while getting a divorce.

Option #1: Sell the House During the Divorce

This option is best suited for those couples who are facing financial restraints and need the income from the house. If the divorce is ugly, this is also a good way to cut ties more quickly, providing spouses relief from the other; in this scenario, each person gains the opportunity for a fresh start.

On the other hand, selling a house during a divorce may not always be the best option. If it is not a seller’s market, the couple may lose money on the home. They will also need to agree on the selling price and pay the fees for an agent and attorney. Selling the home also removes the security from the children – they must start anew somewhere while dealing with their parents’ divorce. Also, if the couple opts to sell the home during the divorce, they must hope for a good market. The divorce will not be finalized until the home closes and profit is split accordingly.

Option #2: One Spouse Buys Out The Other Spouse

If one spouse can afford to buy the other spouse out, this may be a viable option. Sometimes, a parent will stay in the home to provide comfort for their children during the divorce. The pros that accompany this option are plentiful; however, most couples are not in a financial position to do this. Additionally, if the divorce is hostile, the agreed-upon price may be challenging to find.

Option #3: Postpone Sale until After The Divorce

If both parties are in a financially secure position, they could opt out of selling the home immediately and agree to sell it after the divorce is finalized. Both parties would have to agree, and, in the final decree of divorce, they would have to state the terms of selling the home, including time frame and price. This can speed up a process and provide an agent time to adequately market the home.

The downside: In a contentious situation, this option extends the relationship by requiring continued communication. Although documents may be signed, one spouse could change their mind and can bring the other spouse to court, creating more required legal action and additional fees to be paid. This can be harmful – not only to one spouse, but also to the children.

HIDDEN Option #4: Sell The Home to an All Cash Buyer

If the divorce is ugly and hostile, you may want to sell the home as quickly as possible. It may be better to cut ties now than to drag out a toxic relationship. To sell quickly and smoothly, it may be best to sell your home to an all cash investor who is educated in the industry.

We here at Gulf State Homebuyers purchase homes during divorces, helping our clients transition more quickly. As a company, we help our clients save time and money, allowing for them to move on and settle into that new life they are hoping for. Our services include:

  • We cover closing costs – we buy the home “as-is,” and we don’t ask for additional financial coverage. Also, there is no agent to pay on these transactions.
  • We have an attorney on staff that completes paperwork – we cover these attorney fees.
  • We close quickly – with our all cash offer, we can close in as quickly as five days, separating the hostile relationship sooner rather than later.

For more information, contact us today!

Categories vacant home

What To Do With A Vacant Home?

Owning a vacant home can be economically strenuous on the homeowner – whether they had to move due to a flood or other disaster, or if they had a tenant who moved out suddenly – the burden of a vacant home can be tiresome.

There is a considerable number of things to think about when dealing with a vacant home, including the risks, as well as your options. In this article we will assess both and then provide you with a simple solution to this headache.

Dangers Of Leaving Your Home Vacant

Beyond the financial burden of maintaining an empty home, a homeowner may also be confronted with additional dangers when leaving a home empty. Each day that the home spends vacant, it is at risk of:

● Undetected water, weather, or fire damage: Unexpected repairs may be required on the home due to water, weather, or fire damage. Unfortunately, if there is no one living at the home, it may incur additional damages, resulting in more expensive repairs.
● Trespassing: Leaving valuables in a vacant home is never a good idea. Experienced burglars are aware of which homes are vacant and often target them for trespassing.
● Squatting, which can lead to long legal disputes: Often times, homeless individuals may be seeking shelter, in your home; their presence may cause damage. The true risk in this scenario though is that over time, squatters actually gain legal rights at the property. In the state of Texas, a squatter who has been living on another’s land for three years can even file an adverse possession claim (restrictions apply).
● Vandalism: Without proper supervision, again, vacant homes attract criminals and can be susceptible to vandalism.

Therefore, it is important that the homeowner take the necessary steps to protect the home while it is empty and then fill it as quickly as possible. In order to protect the home, a homeowner can increase the home’s security system, check up on the home regularly, install deadbolts on the exterior doors, and maintain the exterior to display that your home is not neglected. Implementing these steps can reduce risk of damage to your vacant home.

Renting Out A Vacant Home

Depending on the cause of the vacancy, renting out a vacant home can be timely and costly. The first step is to always ensure the integrity of the home – if the home was vacant due to damages, get them fixed immediately.

Once the home is ready to rent, it is time to start marketing the home and interviewing tenants. The marketing process is to ensure reputable tenants apply for the home while the interview process can ensure your comfort with the potential tenants. Approving the wrong tenants can cause severe long term damage to your investment – both financially and legally. Always complete the necessary steps to ensure the credit and safety of your investment.

Selling A Vacant Home

Although it may seem like a good idea to sell your vacant home, potential buyers may be wary of such a purchase. A vacant home can suggest that there is something wrong with the home – otherwise, why wouldn’t there be a tenant living in the unit? Additionally, selling a home may take time, and this time is costing you, the seller, money. For example, homeowners insurance for a vacant home can cost up to three times more than homeowners insurance compared to an occupied home. If a buyer is looking for a 90-day escrow period, and requires financing, the cost to the homeowner can become quite large.

How To Sell A Vacant Home Quickly

Due to the above mentioned issues with a vacant home, selling the home quickly can save thousands for the homeowner. Finding an all cash, knowledgeable investor can provide the seller this opportunity. The all cash option can remove the risks associated with leaving a home vacant and can improve the position of the seller.

We here at Gulf State Homebuyers frequently buy vacant homes – and the best part is that we buy them “as-is.” No need to hassle with contractors or marketing. We can get the property off your hands within one week and help put thousands of dollars in your pocket. We understand the market and make competitive offers, making it easier for you to transition into your next investment opportunity.

Additionally, not only do we purchase vacant homes, but we also provide financial payment for referrals. So if you know someone sitting on a vacant home who is lost about what to do next, send them to us and we can help you both!

Categories Cash Offer

We Cover Closing Costs. What Does This Mean?

[vc_row][vc_column][vc_column_text]When individuals sell their homes, they are not typically aware of the expenses they are going to incur in the process. Yes, they often understand that they will be responsible for paying an agent, but generally speaking, home sellers are surprised when their homes enter into escrow, and they learn about the additional expenses their buyer is asking them to cover related to closing costs.

To get started, let’s address the question, “What Are Closing Costs?”

Closing costs are fees associated with selling/buying a home – they are generally paid at the closing of a real estate transaction. Closing costs are primarily fees that must be paid to third parties in order to complete the to-do list of the lender; however, the closing costs can vary depending on the lender an individual party is working with.

The most common closing costs include an application fee, escrow fee, credit report, appraisal, and additional inspections; inspections required by the lender can include flood determination, home inspection, lead based paint inspection, and pest inspection. Escrow fees can additionally extend to recording and survey fees, courier fees, and transfer fees. Additional costs outside of those required by a lender can also be incurred, including attorney fees to cover the costs of an attorney reviewing all documents associated with the sale.

Needless to say, closing costs can add up – they typically fall between 2% – 5% of the home’s purchase price. Therefore, if a seller is selling his or her home for $1,000,000, closing fees would typically be between $20,000 – $50,000.

Who Covers Closing Costs?

There is no clear answer to this question. The buyer and seller are both looking to save money and therefore hoping that the other will cover the costs. Although the fees are assigned to the buyer, this does not mean that the buyer must necessarily always cover the fees. For example, if the buyer is on a budget or looking for a discounted rate, they will generally propose terms that require the seller to assist with the closing costs – usually at 50%. The seller always has the ability to opt out of assisting with these costs, but they are running the risk of losing a buyer and extending the sale process.

The seller also has the option of requesting that the buyer negotiate the closing costs with their lender, but this can’t happen without willingness on the buyer’s behalf.

So, let’s take a closer look at the numbers… the closing costs plus the agent fees will equal, on average, 9% of the home’s selling price. Therefore, if a home sells for $1,000,000, there will be $90,000 in accrued fees – this equation estimates that the seller will be responsible for $45,000 at close.

A major factor that affects who pays these fees is the current state of the market – is it a buyer’s market or a seller’s market? If the seller has multiple offers and can afford to decline any potential buyers who ask for assistance covering the closing costs, the seller has an advantage. However, in many markets, buyers are limited – therefore, the seller must consider the option of covering the costs in order to facilitate a swift close.

Tips to The Seller

If a seller is questioning how they should proceed with covering closing costs, they should ask themselves the following questions:

● Do I need to sell quickly?
● Am I selling my home below, at, or above my listed price?
● What is my market like?
● Can I afford to say no to assisting in covering the fees?
● Do I want to invest the time to allow for all inspections to be completed for the lender?

Need Assistance?

Many sellers either do not want the hassle of meeting requirements for closing with a buyer’s lender, or they do not want the responsibility of covering the fees. One way they can avoid this hassle is by selling to a qualified investor who is willing to pay all cash – specifically one who is willing to cover all closing costs on the home.

We here at Gulf State Homebuyers have provided that solution for you. We purchase homes as-is with all cash offers. What does this mean for you? No additional fees must be paid to agents or on closing costs. No additional time is spent on the home – we buy the home “as-is.” Finally, you can count on a quick close – we can close in as quickly as five days.

If you are interested in learning more about what closing costs are or are interested in selling your home quickly with no inconvenience to you, just contact us and we can help you make that next step towards your future.[/vc_column_text][/vc_column][/vc_row]

Categories Tips

5 Reasons Why Investors Make Good Buyers

As a homeowner, you may be in the market to sell. But the question remains: to whom do you sell? There are two major categories for potential buyers:

1. Another home buyer looking to purchase their first home or move, or
2. An investor. Although you may be inclined to sell to a peer – such as another homebuyer – we are here to tell you that learning about the benefits of selling to an investor may change your mind. Below, we will outline the 5 reasons an investor may be the best choice in your home selling decision.

1 – Investors Can Save You Money – No Commission Fees or Closing Costs

Selling your home can be costly; typically, around 6% of your home’s value is dedicated just to the real estate agent. This is known as the agent fee – the costs to cover the work of both the buyer’s and seller’s agents. What does this mean for you? If your home is valued at $1,000,000, this means you will be paying $60,000 in agent fees alone. Then, as a seller, you will be responsible for 50% – 100% of the closing costs, which can average around 2% – 5% of the home’s value (according to HAR). Closing costs can include home inspections, escrow fees, title company, title search fees, transfer taxes, underwriting fees, and much more.

When selling to an investor, however, you can avoid this loss in profit and be provided full compensation for the true value of your home! The investor will often waive the commission fees and cover the closing costs, providing you, the buyer, with the highest possible return on your property.

2 – Investors Buy Damaged Homes

Whether the home has average wear and tear or has been drastically damaged by a fire or hurricane, an investor can buy your home “as-is.”

If you hire a real estate agent to represent you in the sale of your home, they will often recommend that you have an inspector check the house and then suggest you hire a contractor, who might make certain repairs that can increase the value of your home.

On the other hand, an investor understands the hassle of dealing with hiring a contractor and committing the time and money required for repairing a home. Therefore, they offer a simple solution: purchasing the home “as-is.” This means no extra money forked out by you and no extra time spent fixing up your home. The investor will purchase your home exactly as it is!

3 – Investors Can Provide A Quick Close

When a home is placed under contract, it enters into what is known as the escrow period. The escrow period is the time allotted to the buyer to complete all due diligence necessary for the close. This can include the buyer completing additional inspections and getting to know the neighborhood. The risk associated with the escrow period is that it provides the buyer a longer time to pull out of the deal. Essentially, the longer the escrow, the longer the buyer has to change their mind about the purchase.

An investor, on the other hand, is well-versed in real estate due diligence processes and has frequently completed all the required due diligence even before going under contract. These are professionals looking to provide a quick and easy close – both for you and for themselves. Fortunately for you, with this knowledge and motivation, investors are able to provide a quick close – sometimes in as few as 5 days!

4 – Investors Provide All Cash Offers

One contingency that often extends escrow to 60 – 90 days is the finance contingency. That is, the time allotted to the buyer to get all aspects of the purchase completed for the lender so that the lender can provide the funds to the seller to close. This can create the need for additional inspections and can provide another avenue for the buyer to potentially pull out of the deal.

Investors, on the other hand, can provide sellers with all cash offers – this means no extended escrow and no hassle with a finance contingency.

5 – Investors Won’t Play Games: No Additional Costs

Getting down to the nitty gritty – at the end of the day, investors don’t play games; their education and professionalism are transparent in every real estate transaction. They do not nickel and dime sellers, do not ask for unreasonable requests, and do not make offers they are not serious about.

If you are looking for an accredited investor to purchase your home, contact us at Gulf State Homebuyers. Not only can we guarantee the above mentioned hassle free closing on your home, but we can provide additional services that can make your move even easier.