Categories Cash Offer

Questions to Ask Before You Sell Your Home

 

Many individuals think selling their home will be a simple and speedy process – you hire a listing agent, market your home, and then get a check. However, there are many other factors that can greatly influence the process, including your own readiness to sell.

Reflecting on your personal motivations and goals regarding selling your home is key to a smooth transition. Below we outlined some questions you should ask yourself before entering the selling process, and we identified how an honest assessment of your answers affects the sale of your home.

What is my motivation to sell?

Why are you selling your home? Are you getting a divorce and looking to split ways with your ex? Did you lose a loved one and you are selling an inherited home? Are you taking advantage of the market? Are you looking to transition into a home better suited for your family size?

Assessing your motivation to sell can provide you with insight on whether or not you will sell your home. If you do not have a clear understanding of WHY you are selling your home, you may be hesitant to close. We have found that many buyers are resistant to offers that are below their expectations (even if they meet market comparisons) or get cold-feet when closing time arrives if they do not have a clear reason for selling. Ensuring that you are indeed ready to sell your home is the first step to selling successfully.

How much time and energy to do I want to put into preparing and showing my home?

Is your home ready to sell or does it need some improvements? Many realtors will suggest that you make minor repairs and upgrades before listing your home to maximize your return. There are buyers that are looking for move in ready homes and who don’t want the hassle of fixing the home – therefore, they are typically willing to pay more if the home is ready at move in.

So, it comes down what you are truly prepared and willing to do in order to sell your home for the best value – are you ready to commit the time and energy into fixing your home, then showing it to potential buyers? Additionally, are you financially prepared to invest in the renovations? If the answer is no, just remember that it may limit your buyers pool or reduce your profit. However, it is still possible to sell.

How much is my home worth?

Get your home assessed and understand what the true value of your home is – not your estimated value.

We have found that multiple sellers tend to believe that their home is worth more than the market supports, which is typically due to their emotional connection to the home. However, an individual’s emotional connection has no impact on the home’s value. What determines the home’s value is the market, the quality of the home, the amenities that the home has to offer, the neighborhood, and other comparable qualities.  Therefore, it is necessary to have your home valued before you put it on the market. This way, you can determine what your needed price is to sell, and decide whether or not you will be able to obtain an offer that will meet your expectations.

What is my ideal closing time frame?

Let’s circle back to – what is your motivation to sell? Do you need to sell quickly, or do you have time to market the home to get the highest offer? Allowing enough time for renovations and marketing can offer you a larger buying pool; however, if you are looking to sell quickly, this may affect your selling point.

Thinking About Selling?

These are just the first questions we recommend you reflect on to help determine if you are ready to sell. There are alternative options that can help expedite the process as well, reducing your need for investing financially and spending the time while the home is marketed.

What is this alternative? Selling to an all cash buyer. If you are considering selling, you should contact us. To get started, we will discuss with you your motivation and help you understand if and why this it is a good time to sell. From a market perspective, it is – however, we always want to ensure that before we buy from a client, they are ready to make the move. If we both agree that this is the time, we can provide you with a home evaluation, offer a quick close, and buy as-is, removing all hassle in the process for you.

Author gulfstatehome
Categories Cash Offer

We Cover Closing Costs. What Does This Mean?

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.

Author gulfstatehome
Categories Cash Offer

What To Do With A Damaged Home?

Whether it is a flood, fire, or hurricane, a damaged home is never a convenient asset to manage. If you are living in the home, not only may you be out a place to reside, but you may also be in an economic downfall.

Depending on the severity of the damage, there are a couple of options to move forward with your home. In this article we will outline the basic first steps to take immediately following the disaster or accident, then provide options for what to do next.

After the initial incident, it is imperative that you take these first steps to ensure your safety and protect your finances.

  1. Use caution when returning to the home – unexpected damages can cause harm.
  2. File with your insurance company and determine if the house is covered. It is also recommended that you document your losses with photographs.
  3. File with FEMA – Federal Emergency Management Agency.
  4. Determine if your home is in a Special Flood Hazard area.

Once you have completed these four steps, it is time to determine the future of your home. Essentially, you have three options: to sell, to fix it up then sell, or to fix it up then move back in.  Each option has an array of variables that could impact your decision. Here are questions to consider to help you determine your best plan of action.

How Bad Is The Damage?

 You can take a look at the outside and see the superficial damage of the home, but the truth of the destruction comes within looking at the foundation and interior of the home. To get started, you will need to hire an inspector to assess the house – they will be able to complete a full evaluation of the damages.

 What Is the Financial Burden? Overhead and Profit Analysis

 Once you have had the home assessed, you will need to create a budget that will allow you to identify the most responsible financial option for your future. Consider the following expenses when creating your budget:

  • Contractor Fees: Have all aspects of your home inspected and solicit quotes for repairs. Seek multiple quotes to determine the most affordable option. When calculating these expenses, be sure to include the taxes!
  • Tree and Shrubbery Removal, if applicable: Insurance companies typically cap their coverage.
  • Temporary Living Expenses
  • Transportation Costs: Consider costs of driving from your temporary home to your damaged home to meet with contractors. Also include additional costs if your temporary home is further from your daily activities.

When developing your financial assessment, be sure to have an in-depth understanding of what your insurance company will cover. All companies are different and will outline different restrictions depending on the damages and causes.

Should You Sell Your Home Damaged?

After constructing the cost analysis of fixing your home, you are now in a better position to make an educated decision on how to proceed.

Option 1: Fix up your home and move back

Pros:

  • You get to move back into your home.

Cons:

  • You will have to go through the full process of working with contractors and rehabbing the home, creating both a financial and mental burden.
  • If your home is still habitable, you will be living in a damaged home temporarily.

Option 2: Fix up your home then sell it

Pros:

  • Potential to utilize insurance returns to fix up the basics of the home, then sell it as a “fixer-upper,” creating more value for the home than if you were to sell it as-is after the damages.
  • Possibility to make a profit if the insurance claims cover all costs of the home.

Cons:

  • Once again, you will need to complete the rehabbing of your home, which takes both time and energy.
  • The housing market could transition away from your favor, forcing you to move back into your home.

 Option 3: Sell the home as-is

Pros:

  • Remove the hassle of working with contractors and getting your home back to the place it was – complete the legal aspects then sell as-is.
  • With an influx of all-cash buyers seeking damaged homes, you have the potential to make more from selling as-is compared to rehabbing.

Cons:

  • No opportunity to move back into the home once the damages are repaired.
  • Loss of money, depending on the offer you were delivered.

 There is no quiz you can take to get an easy answer on what to do. Our best advice is to follow the first steps then consult with an expert. Have the benefit of a professional walking you through your options so that you can fully understand your potential gains and losses.

We here at Gulf State Homebuyers would be honored to get started with you. We are educated and empathetic agents who are seeking the opportunity to help those in our community. We can provide a free assessment of your home’s value and discuss what the future holds for you.

Author gulfstatehome
Categories Cash Offer

Top 4 reasons to sell your home TODAY!

Top 4 Reasons To Sell Your Home TODAY

Some people wait for specific events to occur until they are forced out to sell their home.  Whether it be a natural disaster, divorce, or another unforeseen circumstance. However, we are here to help inform you that selling your home in a state of panic can be a very emotional and challenging experience. Sadly, the market may not be supportive of your decision at that specific time. That is why we want to share with you why NOW is a good time to sell your home.

1. It Is Currently a Seller’s Market

First and foremost, let’s address the current market for people selling their homes: IT IS A SELLER’S MARKET. What does this mean? This indicates low inventory, high selling prices, low interest rates, and motivated buyers. With all of these factors in play, it makes it the perfect equation for a potential seller. If you are thinking about selling your home, do it now before the market shifts.

Let’s take a look at the Baytown Market to better understand HOW and what factors make it a seller’s market.

Low Inventory. Compared to July 2017, there are 10% LESS available homes on the market in July 2018.

High selling prices. Over the last five years, there has been a consistent upwards trend in home values in Baytown, TX. Average annual increase ranges from 5% – 10%. Recent economic reports identify an anticipated downshift in this trend however.

Motivated buyers. Millennials are HERE and ready to buy a home. FORBES estimates that 80% of millennials are seeking the opportunity to own a home because there is a sense of freedom in investing in real estate. A trend that is leading them out of their parents basements and into the home buying market.

Low Interest Rates. This is not unique to Baytown, but well addressed in the media nationwide. Interest rates are rising! Currently lingering at 4%, if interest rates rise, the buyer pool will decline. This means less buyers for you and a lower selling price!

2. Get Out of Debt

Sell your home, get the cash, and get out of debt! It is time to stop playing the mouse and cat game with your finances. Selling your home can provide capital to assist in paying off those pending debts. Americans have $3.898 trillion in debt currently, according to the Federal Reserve. This debt is a combination of credit card debt, auto loans, and school loans.

Accruing continuous debt can have significant impacts on your credit score and your potential for a secure financial future. Selling your asset can provide you with the capital to get out of debt and invest in a lower cost opportunity at reduced interest rates.

Once you get out of debt, the next most important thing you can do is reduce your expenses. Selling your home can provide the opportunity to:

● Downsize: Find a home that requires less maintenance costs and less time.

● Reduce property taxes: Research surrounding areas to see if you can save on your annual tax bill.

● Find a property that better suits your needs!

3. Change Your Investment Strategy

If you have owned your home for some time, you may be comfortable where you are and lack the motivation to move. However, ignoring the opportunities could be losing you money. Since it is a seller’s market, and you are sitting on equity, there may be an opportunity to improve your financial situation by changing your investment strategy.

Selling your home and transitioning into a duplex could provide you with the opportunity to become an investor and a homeowner. Many individuals are transitioning their capital to an income producing property. This option means that you can live in one unit and rent out the other, possibly providing coverage for your mortgage payment.

4. Follow Your Dreams

Owning a home and staying in one place was considered the “1950’s dream.” However, is it your dream? Thousands of Americans are taking the leap and moving abroad in hopes to learn about cultures around the world and try something new.

Although your dream may not be as drastic as moving to another country, obtaining the cash may provide you with the opportunity to get out of your rut and make a move towards a life you dreamt of living.

We here at Gulf State Homebuyers are supportive of all of our clients no matter what reason they having for deciding to sell their home. We provide honest assessments of their homes values and make offers that are comparable to on the market deals. If you are seeking a change, whether it is to improve your financial position or follow your dreams, we are here to help.

Just contact us and we can share with you stories about how we helped our clients make the change they were fearful to do. We can also provide a FREE consultation on whether this is the right time for you to make a move.

Author gulfstatehome
Categories Cash Offer

Go For The All Cash Offer Today!

Go For the All Cash Offer Today

Selling a house can be a daunting task, especially in today’s market. The steps of finding a realtor, marketing and showing the home, searching for the right buyer, waiting for the buyer to complete all their due diligence, and then finally, closing all the paperwork, can be overwhelming. However, many of the challenges associated with selling a home can easily be avoided by selling your home to an all cash buyer.

We do not mean an all cash buyer found via marketing your property and waiting for them to come to you – we mean sell your property to the established, well known, investor, who is motivated and has the capital to close on every deal. Our tip: avoid the hassle and get out quick.

Save Time and Money

Many realtors will tell you that you risk losing money if you go straight for an all cash offer; however, what they forget to mention is that taking a property to market does not necessarily create a higher price for your property, but it does create an opportunity for the realtor to get a payout. The hidden fees in escrow and closing costs can often outweigh the potential increase in price you may get on the house. For example, a commission payout for a seller is on average 5% to the buyer and sellers broker, combined, plus up to another 5% paid for closing costs. Many of these charges can be avoided by just going for the all cash offer.

An additional factor to consider is that taking your home out to the market does not guarantee a sale! Imagine watching your property sit on the market for six months or one year, when the economy takes a downward shift. All of a sudden you have lost your time, and you have lost the original all cash offer you were originally given on the property. Now you have spent valuable time trying to get that extra dollar, while realistically losing thousands. You can avoid this mistake by selling all cash.

This is just a few benefits of selling your home all cash. Let’s take a look at some more.

No Loan Contingency

A loan can be a time waster and deal breaker in a real estate transaction. It is the due diligence aspect that creates an extended timeline on the escrow, typically four to seven weeks, which provides the lender enough time to appraise the asset and approve the loan. Throughout this time, you as the seller may be losing additional potential buyers. Then if the loan is not approved, you must restart the selling process.

An all cash offer removes this contingency, as there is no lender involved in the transaction. This can permit a deal to close in under 30 days, if needed.

Sell Your Home As-Is

With an all cash buyer you can also remove the appraisal contingency, which is deemed necessary if you are getting a loan. However, when you find an investor looking to buy a home all cash, they are typically finding a property to rehab and resell – therefore they are available to purchase the property as-is.

What does this mean for the seller? There is no need to worry about fixing piping and upgrading the kitchen – the all cash buyer is looking for this value add opportunities. In retrospect, the more aesthetical fix ups they have, the more of a profit they can return for themselves. Our recommendation is to remind the buyer of this when you sell – it is an easy go to negotiation that could get you that lost dollar.

Shorter Close

With fewer contingencies, there is opportunity for a quick close – sometimes as quick as five to seven days. This can be extremely beneficial for those looking to get out of a financial pinch, such as paying off back taxes or avoiding foreclosure.

Additionally, quick cash offers benefits to a multitude of other motivated sellers – individuals seeking an equity cash out, someone following a job transfer, or individuals who inherited a property or who went through a recent divorce. No matter the reason, an all cash offer can help sellers avoid the complications associated with selling.

Is It Right For You?

Selling your home all cash can speed up the home selling process, make the transaction quick and convenient, and allow for unnecessary and unexpected complications to be avoided. Although you are gambling losing a buck or two, it can without a doubt, save you a headache in the end.

If you are interested in assessing your home, and are considering pursuing an all cash buyer, Gulf State Homebuyers is here to help. Contact us today and we would be happy to get you started on changing your future.

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Author gulfstatehome
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