Category Archives: Cash Offer

 

The housing market has its ups and downs but lately it seems that the price of homes only has one direction: Up. This may sound like a good thing, and it is, but many professionals fear that this continuous rise in the price of housing is coming to an end. Over time the price of homes will certainly increase, but the trouble is that the market goes up and down along the way. If you get caught needing to sell your home during a dip in the market, then you could potentially lose hundreds of thousands in equity. So, how do you know when is the right time to sell?

The housing market is cyclical – historically, the price of homes rises and falls in a not so drastic five-year cycle. However, in 2008 the housing market took a dramatic dive due to a vast over extension and overvaluation in the value of homes. For some areas, this unprecedented crash in the housing market took almost a decade to recover from. The market hasn’t corrected again since that recession, so experts are having trouble pinpointing when the next dip in the price of homes will be.

That brings us to now. Industry professionals are beginning to look to 2020 or 2021 to be the start of the next recession. Although no one sees any signs of another catastrophe like the Great Recession, they do see indications in the economy that point to the coming years hurting the housing market. Instability in the stock market, political uncertainty, and a decline in consumer confidence are just a few of the critical signs pointing to a recession on the horizon. The value of homes is linked to the health of the economy, simple supply and demand dictates that if people can’t afford to buy homes then the price of housing will drop.

So, what does this mean for homeowners? If you don’t see a move in the near future and intend to stay put for at least a decade, your investment will be secure. However, selling when the market is at its peak could give you several options for growing true wealth. When the market is at or near its peak, the equity that you have in your home can be used to purchase a duplex, triplex, or several properties to rent. Rental properties generate passive income that can pay for your mortgage, even in a recession. If you wait too long and a recession settles in, the amount of leverage you have from the equity in your home will shrink, making the purchase of a rental property very difficult.

Another way to take advantage of the housing market right now is to sell high and rent for a while until the market takes a dip. If you intend to sell in the next 5-7 years, now might be the best time to get out of the housing market and use your equity to buy again when the time is right. This strategy works great for people with predictable changes in their housing needs, such as an upcoming retirement or a desire to downsize because the kids have left the house. In this situation the money you gain from selling while the market is strong will vastly outweigh the money you spend on rent for a couple of years.

The equity you have in your home doesn’t even have to be used to buy a new home; it can be used for any investment like starting your own business. You can even sell your home and not have to move. Clever homeowners who are trying to get the most out of their home before the next recession can sell to an all-cash buyer and simply rent the home back.

We are Gulf State Homebuyers and we purchase homes in the areas of Houston and Baytown, Texas. We buy homes in all conditions and at a very competitive price. By selling to us, you can skip all the cost and hassle associated with putting your home for sale on the open market. Plus, you can sell fast before the economy starts to slide. We can even rent your house back to you until the time is right to buy again. Now is a great time to sell and put the equity you have built in your home towards your next big investment. Contact us today for your free, no obligation appraisal.

 

Fall is officially here and that means winter isn’t far behind. Traditionally, the volume of home sales dips during this festive time of year, but does that mean it’s a bad time to sell? Fall and winter may not have the same volume of homes sold as spring and summer but they are actually great times to sell. This is because families have returned from summer vacations, the kids have gone back to school, and the holidays are just around the corner. For most people, fall and winter mean normalcy and that’s a good thing when it comes to selling homes. Let’s take a look at some of the ways getting back to normal can help you sell your home in fall or winter.

This time of year brings more serious buyers. It’s true that the spring and summer housing markets bring out more buyers, but many of them hold off on making offers. This is because the more homes they have to choose from the pickier they can be, resulting in buyers extending their timeline. However, in the fall and winter, serious buyers will be feeling the pressure to move before the end of the yea which puts you in the perfect position to sell.

Not only do serious home buyers begin to feel the pressure, but the limited number of homes on the market helps you out as well. When the number of options for home buyers shrinks it puts you in the driver’s seat. Competing in a smaller market is a powerful bargaining chip that can help you close fast and for a great price.

Additionally, fall and winter open up the opportunity to target other types of buyers. Since families are more likely to move in the spring, it’s important to cater to other demographics like millennials and empty-nesters who are most likely to purchase a home during this time of year. Employers are also likely to relocate workers in the fall to avoid the higher real estate rates of the spring and summer. This scenario is great since they are likely to want to close on the home quickly.

If we convinced you to sell, here are some tips to get ready for a fall or winter sale.

Work as quickly as possible to prepare your home for market. This way you can have it ready before the holidays are in full swing. First things first, check the homes heater and ventilation – you don’t want to find out the heater is broken on the first cold day of the year. It’s also important that the air inside your home smells fresh. We are not referring to scented candles here; instead, we are talking about the air filters. By having the system checked and the filters replaced you can avoid any embarrassing problems; plus, the buyer will have a home inspector double check your HVAC, so it’s great to have the maintenance up to date.

We can’t emphasize curb appeal enough and, in the fall and winter, maintaining your yard makes a big difference. Remember to rake up dead leaves, clear away summer vines and dead flowers, and trim overgrown vegetation from pathways and windows. Cutting back the bushes and tree limbs will not only showcase the exterior of the house, but will let valuable sunlight into the home as well. Once the yard is tidied up add some seasonal color like autumn flowers or poinsettias for the winter. Potted plants and flowers along walkways and in the entryway of the home work great for drawing attention to any homes entrance.

Light is important during this time of year and some subtle tricks can help to highlight your homes interior and give it the bright open feel buyers want. To start, clean up all the windows. You may not notice the water spots, dust, and smudges, but potential buyers will. Clean windows help all the light flood in and add to the overall feeling of the home. Another way to bring in the light when the days get shorter and the sun gets lower in the sky is to open up the blinds, shutters, and shades on every window in the house. Lastly, when showing the house, turn on all of the lights, even on appliances and in the closets. You can even place spotlights behind furniture to brighten up darker rooms.

If selling a home during the holiday season is beginning to sound like too much work, then there is another way. You can sell to an all cash buyer! We are Gulf State Homebuyers and we buy homes any time of the year. Skip the hassle of putting your home on the market and spend more time with your family and friends this year. Simply contact us for a free, no-obligation appraisal of your home. If you like our offer we can close in as little as five days, giving you the freedom to enjoy the holiday season.

 

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.