Sell Your Home Quickly With These 5 Helpful Tips

HouseMany homes sit on the market for months and even years. Owners think that lowering the asking price will entice buyers but it only sends red flags and creates the idea that there is something wrong with the house that is causing it to not sell. Owners become frustrated and not sure what to do. If you follow the 5 tips below, you won’t have to worry as these tips will help your home sell quickly.

1.   Price it Low:   Many owners are hesitant to set an asking price lower than the estimated value of their home but it helps sell the house quickly. Most want to ask more than the value to give room to drop the price during negotiations but by asking a lower price, more buyers become interested and compete for the home which often results in a selling price that is higher than the value of the home and a much shorter time spent on the market. A real estate agent in Northern California listed a house for $535,000 even though it had been appraised at $560,000. The house had multiple bidders and sold for $575,000 within weeks.

2.   Try a New Sales Approach:   If your house is not selling and nobody is looking, try a new approach to advertising your home. Put out a larger ad that gives little, but important, information. The info should catch the buyer’s interest and lure them in. Use a photo that shows nice curb appeal and descriptive words. Be sure to keep the house clean so that buyers will be intrigued with what they see.

3.   Do Not Try to Fight the Market:   If in general houses are just not selling, don’t try too hard to get exactly what you want for your home. In a not-so-great market, many people have a hard time getting financed or can’t buy a new home until theirs sells. You may not get the price you hoped for but by accepting a lower offer you will be done with the deal and less stressed.

4.   Renovations Don’t Guarantee a Sale:   Although a new coat of paint or new carpet may make your home look nicer and allow the asking price to go up a little, spending a ton of money on renovations will not necessarily sell your home or at least not for the price you would hope for. A lot of sellers spend thousands of dollars making changes hoping that they can sell their home for a higher price and earn their money back that was spent on the renovations. Some changes are good but for the most part the price is based on appraisals of the surrounding houses. If you ask $100,000 more than what the houses in your neighborhood are worth because you remodeled the kitchen and put in new floors, buyers will find your home to be over priced and walk away.

5.   Advertise Your Home Online:   In this day and age everyone is doing everything online. There are more people searching for homes online than there are circling ads in the paper. Post an ad online using attractive and good quality pictures to advertise your home. Use social media to get the word out that you are selling. People aren’t walking into real estate offices asking “find me something” as often as they used to. They are now coming in with a list of homes they found advertised online.

Bonus Tip:   Find a good realtor. Interview at least 3 real estate agents before choosing one. Be sure to trust them and their methods. Selling houses is what they do for a living and they know what they are doing.

Home Buying Credit Options

homeBuying a home is exciting and stressful especially if you are a first time home buyer. Finding the right home can be challenging but the biggest challenge is financing it. You need to have enough money in the bank to convince the lender you can make monthly payments on top of having enough to cover the costs of closing the loan in order to obtain a mortgage loan. Some home buyers search for available home buyer credits to help fund the purchasing process. Here are a few options available:

Mortgage Credit Certificate: MCC is available for first time home buyers in certain states and provides up to $8,000 in tax credits for those who have not owned a home in the previous three years, meet certain income criteria and will be using the new home as their permanent residence.

Good Neighbor Next Door Program: This program makes homes available for up to 50 percent off the listing price as long as the buyer agrees to live in the home for at least three years. HUD offers credits to school teachers, law enforcement officers, firefighters and emergency medical technicians who purchase single-family homes in areas targeted for revitalization.

Credits for Native American Buyers: HUD provides two programs for Native Americans who wish to buy a home. Native Americans are given access to sources to private mortgage financing to buy homes in Indian or Alaskan Native areas through the Indian Home Loan Guarantee Program. Members of Indian tribes who cannot qualify for mortgages through other sources can be guaranteed a loan through The Tribal Housing Activities Loan Guarantee Program.

The Federal Housing Authority has several other options to help reduce the burden of financing a home for first time home buyers, single parents, minorities and people with moderate-low income.

Short sales having same effect as foreclosures

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Many people who sold their home in a short sale are having problems getting back in the market due to the fact that their credit reports and scores indicate that they had been foreclosed on. This is preventing many from being able to qualify for a home loan and mortgage even though they may have cleaned up their credit and have twenty percent cash aside for a down payment. How and why is this happening?

The current credit reporting system does not have a code that distinguishes a short sale from a foreclosure. The code only shows that a home was foreclosed on and not sold in a short sale. This doesn’t seem quite fair and is being investigated by the Federal Trade Commission and the Consumer Financial Protection Bureau. Sen. Bill Nelson, D-Fla, requested that the FTC and CFPB investigate the issue and penalize any responsible parties if they do not fix the coding issue within 90 days.