Category Archives: Cash Offer

 

If you currently own your home, it is important to understand the two primary ways in which you can play the housing market. What do we mean by this? We are talking about how you can take advantage of your position to better meet your goal of getting into the house of your dreams. If you are looking to make a move, then there are two ways in which you can maximize your position. Let’s review.

1. Refinance Your Home

Two weeks ago, the Federal Reserve lowed its benchmark on interest rates for the first time since 2008. Interest rates are now set to hoover between 2% and 2.25%. In some cases, this has had a major impact on homeowners looking to refinance.

The federal funds rate is the rate at which banks and other financial institutions lend money to one another overnight to meet mandated reserve levels. When the fed funds rate declines, it becomes cheaper for banks to borrow from other banks, providing them an opportunity to reduce mortgage rates for their clients. This is because they maintain the same spread (return between what they borrow money at versus what they lend money at). However, not all banks reduce their lending rates according to the fed fluctuation. In some cases, they leave their rates the same, making a higher return on their lending.

For homeowners to take advantage of the recent decline in federal funding rates, homeowners should seek out banks that have concurrently reduced their mortgage lending rates. Homeowners can refinance their home and ultimately reduce the amount the must pay back to the bank. They can refinance to 1) Reposition their debt, or 2) Refi and buy another property, say an investment asset of a vacation home!

2. Sell and Buy Using Tax Code 121

The other avenue homeowners can take is to sell their home and buy a new home (that one they have been dreaming of for years) using Tax Code §121. Section 121 Principal Residence Property allows homeowners to exchange their home and avoid paying taxes. If they qualify, homeowners can exchange and be excluded of $250,000 of gain for single filers and $500,000 of gain for married taxpayers filing jointly. In order to qualify, homeowners must use the property as a principal residence for two out of the last five years prior to the sale; the use of the principal residence however does not need to be in concurrent months. Additionally, the exclusion is only available every two years and second homes and vacation homes do not qualify.

Which Option is Right for You?

Taking advantage of the housing market can be financially advantageous. At the same time, it can be risky. For anyone interested in making a move, by either refinancing with these low interest rates or by selling and exchanging according to tax code §121, it is recommended that they speak to a qualified professional.

How Can We Help You?

We here at Gulf State Homebuyers are all cash investors. We purchase homes in the Baytown/Houston area for all cash. For those who are in your position and are interested in moving into the home of their dreams, we make the process a bit simpler. Instead of taking the property out to market and engaging in the hassle of working with a real estate broker, marketing, and negotiating on a closing price and terms, we provide clients the option to simply sell to us. We purchase homes as-is and cover all costs associated with the sale. Our process is simple as well – once a client calls us, we set up a time to view the property and make an offer on the home that same day. No inspections required. Our goal is to help our clients move forward to the next stage of their life – And, with the way the current housing market is, now is an optimal time to take that leap. To learn more about how we can assist you, or learn more about your options (which are outlined above), contact us today and speak with one of our qualified professionals.

 

Sometimes life comes at us fast and, for better or worse, you find yourself in the sticky situation of having to sell your home on very short notice. This happens more often than you think and its not always bad news. People do relocate to take care of sick relatives or to settle a divorce, but they also move to follow new opportunities, new careers, and new relationships.

Moving quickly however is not good for the bottom line when it comes to selling your home. This is because to get the most out of your property, there is a lot of time-consuming work and preparation that typically goes into a sale. So, if you find yourself having to move on short notice, here are some tips to ensure you still get a fare selling price in as little amount of time as possible.

CLEAN HOUSE…

As soon as the decision to move has been made it’s a good idea to take inventory of your things. To help your move go more smoothly and to begin clearing the house out for showing, start a weekend garage sale to clear out the clutter as soon as possible. It is also a good idea to take advantage of apps like Offer Up and Letgo to speed up the process of clearing out even if you have to give things away for free just to avoid the hassle later.

ORGANIZE…

The next important tip is to get a shipping container or storage pod. They give you several advantages for moving on short notice. For starters, they provide you with temporary storage for the things that are moving with you even if you haven’t found a new home yet. Plus, when you are ready, they show up at your new home ready to unload at your own pace. All of this comes in handy for a quick move and for helping you prep your home to sell in a short time frame.

UPGRADE…

Renovations are the next step to address, however without much time you won’t be able to take care of the large remodels that home buyers are looking for, such as new bathrooms and kitchens. But don’t throw in the towel, there are some quick and easy investments you can make to create a dramatic impact on both the final price of your home and the amount of time it sits on the market.

Take a weekend to tidy up the yard. Clearing out planters and adding flowers and potted plants can help with the homes curb appeal. First impressions are important; in fact, it may even be worth it to enlist the help of a professional to get the most bang for your buck on short notice.

Make the investment to get a new matching set of kitchen appliances…it will pay for itself and then some. For potential homebuyers’ new appliances are a must and it requires almost no work on your part, plus it can be delivered and installed in a matter of days.

GET READY FOR THE MARKET…

We suggested cleaning all your stuff out of the house for a reason. Potential buyers need to picture their stuff in a new home so your home needs to be like a blank canvas. Once your personal items and furniture have been paired down to a minimum, give the home new paint inside and out. Choose neutral colors and shades of white for the interior. This way, no matter what the style the next owner has, they will be able to picture themselves living in the space.

If it’s in your budget, hire a professional stager. They will meticulously prepare the house room by room to maximize its selling potential. The finished product is a home that will sell more quickly and for a higher price, so it’s not unlikely that investing in a stager will also pay for itself.

SELL TO AN INVESTOR…

If all of this sounds difficult, or you just want to get out now, there is still a good option. Sell to an all-cash buyer! We are Gulf State Homebuyers and we buy homes in as-is condition for a very competitive price. We simply conduct an appraisal of your property and make you an offer the same day. Plus, talk about selling your house quick, we can close in as little as five days. So, don’t let buyers put you in a corner with low ball offers simply because you have to move in a hurry, contact us today.

 

When you take on the task of selling your home, you will be confronted with quite a few challenges. Dozens of homeowners just like you are looking to sell their homes quickly and at a competitive price. However, not every homeowner is able to achieve this goal – and the primary reason they are unable to do this is because they are not aware of what buyers are looking for. Understanding your clients is key to any sale – so adopting the latest home buyers’ trends is essential to beating your competition when trying to sell your home. Let’s take a look at some of the characteristic’s home buyers are looking for this season.

What types of homes are home buyers buying?

Depending on the area that you live, this characteristic can vary. However, in a community such as Baytown we tend to follow the natural trend of the US market. According to 2019 data, 82% of US home buyers in 2019 are seeking detached single-family homes, with only 8% purchasing townhouses. A mere 10% are purchasing homes in apartment complexes, duplexes, and other mixed housing situations.

Where are home buyers interested in buying?

You may think with employment opportunities primarily moving into major cities, home buyers are seeking homes in these neighborhoods. However, families are still largely interested in living in suburban communities. In fact, it is estimated that only 14% of individuals purchasing homes this year have settled into an urban area or city center. Communities like Baytown are desired because it allows families to reside in a close-knit community while having the ability to commute to major cities.

How much are home buyers buying for?

This question varies greatly depending on your home’s location. On a national level, the majority of houses that buyers are pursuing range between $200,000 to $300,000. However, in Baytown the medium price of homes sold this year is slightly below the average – coming in at $189,000. This means that people interested in selling their home will find more success by selling to an out-of-towner.

Does my home need to be eco-friendly?

The honest truth – YES. The majority of home buyers currently include millennials, a generation that is focused on improving the environment around them. They are recognized for spending more on purchases to ensure that they are using their buying power to promote an eco-friendly world. This means that homeowners need to focus on improving the environmentally friendly features in their homes by installing solar panels, updated HVAC systems, energy efficient appliances, double pane windows and doors, energy efficient lighting, and landscaping for energy conservation.

What other factors do home buyers consider?

Although we cannot breakdown every characteristic of this year’s home buyers, we can educate you on some additional aspects of your home that you can assess on your own. You can conduct research to determine how your home compares to that of the community you live in. When assessing take a look at your homes stats compared to those that have recently sold, such as: size of the home, lot size, style of the home, quality of the neighborhood and schools, and crime rate.

How do I find the perfect home buyer for my house?

With the diversity in home buyer’s characteristics, finding the right home buyer for you can be difficult. You will need to be flexible in your closing terms to ensure that you maximize your return. For example, if you are selling a fixer upper, you need to be prepared to pay for necessary inspections to close on the finance contingency. If you are selling a condo, you need to be prepared to negotiate the price if your HOA fees are high.

However, selling does not need to be so complicated. Selling to an all-cash buyer can provide you the perfect buyer without the hassles of preparing the home for the sale.

What do we mean?

Sell to us! We are Gulf State Homebuyers – we are all cash investors interested in buying homes in the Baytown and Houston area. We purchase homes at competitive prices, providing ease to sellers looking to transition to their next chapter in life. If you want to forego the stress of trying to accommodate your home to the buyer’s in the market, then contact us today for your free home evaluation. We can purchase your home within days, cover all costs associated with the sale, and even help pay for your moving costs. Don’t wait – get your free appraisal today.