There is always a debate amongst people about what is better? Buying house in cash or mortgage? In this blog, we will try to clear the picture and try to help you in the home selling process. A lot of finance experts say buying a house in cash can avoid drowning in debt. Although, the other half believe in getting a mortgage and repaying it over the 15/30 year mortgage. Every method of purchasing an asset has its pros and cons. We will share an overview of each method and how it varies in each situation.
Why One Must Buy House In Cash?
In simple terms buying your home in cash allows you to avoid foreclosures and you are free of debt. You have complete ownership of your asset as you buy the property in full cash. Although, every scenario has its pros and cons, scroll down below to know more.
Pros Of Buying House In Cash
Free Monthly Cash Flow
One of the big reasons to buy house in cash is free cash flow. If you buy house in cash you aren’t entitled to pay monthly mortgage instalments. It allows your income source in multiple bifurcations as per your convenience and needs. Although, you’d still be paying the homeowners association fees, property taxes and maintenance costs, homeowners insurance, etc. You will pay these extra costs even if you don’t get your house on mortgage. When you buy house on a mortgage, you pay a big chunk to the lender whereas in this case, you avoid it entirely.
Save A Lot On The Interest
If you purchase a house on cash, you can save a lot on the interest of the mortgage. When you take out a mortgage, the interest rates are bound to escalate over the tenure. Example: A mortgage of $170,000 having a 4.375% interest rate costs you around $135,000 as of the interest expense for 30 years. Furthermore, mortgage debts are one of the cheapest in the USA if calculated on the APR (Annual Percentage Rate) basis. So, buying your home in cash might save a big chunk on the repayment.
You Are A Preferred Prospect
Sellers always prefer cash buyers as the deal closes faster. When a seller sells the property to a cash buyer, it only requires the buyer’s due diligence and mutual closing date. Whereas, when a buyer applies for a mortgage, he/she has to work on a lot of things. Things like the verification process, legal documentation, the underwriting process, etc. The real estate market is big, but sellers usually pick cash offers as they are enticing and close faster. Also, cash offer allows negotiation in closing costs as you trade in hard cash. If you are a cash buyer you’ll be the preferred prospect instead of the one with a mortgage.
Faster Closings And Lower Closing Costs
When you buy a house in cash, you avoid paying the associated loan fees. Also, costs like the originating fee, mortgage insurance premium, credit card report fee, etc. A cash offer may help you get away with legal processes and verification. Remember, an all-cash offer is less than the traditional bidding price. Getting paid in hard cash eventually is better than the orthodox mortgage bid, which is time-consuming. Additionally, as stated above, you close a deal faster with flexible closing costs.
Cons Of Buying House In Cash
Tying a Lot of Money in One Asset
If your property is worth $150,000 and you are a cash buyer, it can be quite risky. If you invest a large amount of your savings in one asset, you are tying up a lot of money. Such transactions do not show a positive outcome on your credit score.
The real estate market or a house is an illiquid asset, which means it is difficult to sell it fast. Selling a home is time-consuming and a daunting task. Assets like bonds and stocks which have high liquidity are easy and quick to re-sell whereas, a house is not. Therefore, putting a lump sum amount in one asset is never ideal as it slumps access to the liquid assets.
Missing Out On Tax Benefits
The itemized taxes may help in putting the money back in your kitty. You can deduct a lot of amount on mortgage rates through itemized taxes. Itemized tax deductions levy on multiple assets; it is advisable to check the taxes before purchasing. If you are using cash as your primary payment source then you are definitely losing some good tax benefits.
You Are Left With No Savings
Buying a house in cash blocks your savings, and you have nothing, which means no emergency funds. It is always advisable to keep petty cash handy during an unexpected crisis.
Why You Must Consider Getting A Mortgage?
Buying a house on a mortgage allows in maintaining your savings and caters to the funding. Many people do not have enough savings to buy a house on cash. Prospects get a mortgage and keep building the equity over the tenure of repayment.
Pros Of Buying A House On Mortgage
When you get a mortgage, you have the flexibility to put your savings in other investments, which promises good returns. You can pick from innumerable liquid investments and grow your wealth and manage your monthly payments as well. Buying a house on a mortgage is always a better option as you have more flexibility to manage the money.
Low Mortgage Rates
Comprehending the pandemic and the current state of the market, it’s a better option to opt for a mortgage. The mortgage rates are low, and the inventory has houses sitting for potential buyers. Hence the above makes it an ideal situation for purchasing a home.
Improve Your Credit Score
If your credit report shows timely repayments, you will ultimately have a good credit score. Unlike buying a house with cash, it is essential to show the diversity of debts for a better credit profile. The credit reporting agencies prefer timely repayments of debts inclusive of the home loans. It improvises the borrower’s profile allowing them to get a faster mortgage and boosting the credit score.
Advantages Of The Tax Deduction
Mortgage debts are tax-deductible, which means more benefits for the person getting a mortgage. Married couples planning to buy a home can write off interest taxes up to $750,000 if filing together. If you are filing separately, you can write off tax interest up to $375,000. Post the tax reform in the year 2018 write-offs, were not as profitable. Although it still is beneficial for homeowners with outstanding mortgages.
Cons Of Buying A House On Mortgage
The Intricate Mortgage Process
It’s no hidden truth that getting a mortgage can be a really daunting and tiring process. You have to keep a track of all financial documents inclusive of your IDs, which can be frustrating at times. Lenders will ask you for every detail and if you miss even a single document, you won’t qualify for the loan.
Paying Mortgage Insurance Premiums
When you pay less than 20% on the property, having a mortgage insurance premium will be mandatory. A mortgage insurance premium is an addition to your monthly mortgage payments. Insurance is an added cost to secure the lenders in events if you miss out on paying the instalments.
Drawback Of Additional The Costs
When a mortgage has lenders involved, it always comes with extra costs. The buyers are liable to pay lender fees, closing costs, mortgage origination fees, and appraisal fees. These additional fees can add to the existing cost and make the purchase even more costly.
You Still Don’t Have The Ownership Of The Property
When you buy a house on a mortgage, the lender has ownership while you keep making the monthly payments. They are entitled to hold your property until the last instalment. If you fail to pay a consecutive number of instalments, there is a high risk of losing your home.
We know buying and selling a home is an overwhelming task. It can be a very confusing, lengthy, and mentally draining process. We tried to cover the pros and cons of buying a house in cash or by getting a mortgage. So choose wisely keeping in mind your monetary status and plan futuristically.
If you are planning to sell your house fast for cash in NY, get in touch with Elite Properties. It is a ‘We Buy Houses For Cash Company’ which means you can sell your house fast for cash. Give us a call on this number 718-977-5462 and we’ll help with fast home selling.
We know there are many reasons to enhance the curb appeal of your house and increase its resale value. Many homeowners, although, are not aware of the reasons which may reduce the house’s worth. Selling your house needs a lot of attention either with the upkeep or the functional aspects of the structure. A buyer on the other hand will check the aesthetical appearance as well as the condition of the house.
Factors like bad location, old construction and crime rates can potentially lower the value of a house. It is a well known fact that a good house will never sit in the inventory for long time. If you are a seller and want to sell properties online, you must check the ‘5 Reasons That May Reduce The Value Of A House’.
Following are the points which may reduce your home’s worth –
A Shabby Exterior Facade
If you want to sell home fast for cash, a good looking exterior is must. Potential buyers pay attention to the exterior surfaces as nobody wants the extra maintenance cost while buying a house. As wisely put, ‘The first impression is the last impression’ it applies in home sales as well. According to a survey, potential home buyers only take 10 seconds to like property, just by looking at its exteriors. Conclusively, it is always a good to maintain the home’s exterior beauty to sustain its value in the market. By adding a fresh coat of paint, mowing, and cleaning the lawn may make a huge visible difference.
Inefficient Energy Ratings
Since 2018 energy performance certificates were introduced in the market to comprehend the energy efficiency of a house. Energy efficiency is correspondent to the pricing of a home, higher the ratings higher the property prices will be. It is illegal to sell or put your house on rent if your energy-efficiency rating is below ‘E’ on the unit. Many buyers end up purchasing the property and paying huge electricity bills reason being the poor energy ratings. A good energy rating can shoot your home’s worth by approximately 14%, which is a great profit margin for home-sellers.
A locality is a compilation of good schools, hospitals, departmental stores, no crime rates and easy access to multiple places. To sell your house fast for cash in NY it becomes essential to have basic amenities accessible. A study shows how proximity to certain places can decrease your home’s worth by specific amount of percentage (sources).
- Bad school – 22%
- Strip clubs – 14.7%
- Homeless shelters 12.7%
- Cemetery – 12.3%
- Funeral homes – 6.5%
- Power plants – 5.3%
- Shooting ranges – 3.7%
If your home is around these places you’ll have to work more on the aesthetics so that no one walks past by your house. Additionally, foreclosures in the neighborhood make a bad impact on the home sale. While selling your house, appraisers look at the comparable selling price in the neighborhood. The comparable price plays an important role in estimating your property’s worth and foreclosed houses may turn down the appeal.
The Escalating Mortgage Rates
The formula of home selling predominantly depends on the mortgage rate in the market. High mortgage rate means fewer buyers whereas; low mortgage rate means more buyers. Potential buyers usually start their hunt when mortgage rates are low as the monthly repayment fits in their budget.
Home affordability decreases for buyers when the rates are high as they pay extra over the life of a loan. As a seller, increased mortgage rates don’t help you to sell your house fast. Your home isn’t valuable for buyers because they pay extra on the home as well as the mortgage repayment.
Additional Points To Consider
We’ve spoken about the aesthetics or the curb appeal of a house, which plays a huge role in home selling. There are certain things which lower your house’s worth like installing a pool, doing excessive DIYs, cluttered rooms, poor HVAC systems, etc.
There are specific things to keep in mind before listing your home in the market –
- Take care of the plumbing and upkeep
- Remove the shabby wallpapers
- De-clutter your house; get rid of the extra things in your home
- Keep the decor to minimum
- Remove the carpets which covers the whole floor
- Mow and clean the lawn, whether it’s a front or a backyard
- Get rid of invasive plant species or climbers
- Keep your pets at pay (while walkthroughs)
We comprehend a house is not just a structure it also has many memories attached to it. Suicides or violent deaths in a home can be a big reason for people to back out from buying it. It is advised to disclose little details to build transparency with potential buyers to avoid hassles later.
Selling a house is a daunting task and there are multiple things which may add and reduce the value of your house. If you want to sell remodeled houses or you want to sell your house as-is, get in touch with Elite Properties. We buy houses for cash which allows you to employ the yields of the sale as per your preferences. Additionally, we buy houses in any condition that eludes the hassles of maintenance and legal processes.
If you have other queries related to the topic or you want to know more about home selling process call us today 718-977-5462.
COVID-19; A horrifying pandemic crisis that the world is facing right now. As the situation is affecting many sectors around the globe,real estate isn’t left behind.The raging effect of COVID-19 has created a major void in the market, resulting in a huge downfall with respect to the world market andeconomy.
Many services offered by the real estate market like walkthroughs, rentals, etc. had a hard hit by the virus. As these aren’t the only services that have been suffered, other facilities like foreclosures and short sales have also been adversely affected. In this blog we will tell you How COVID-19 has affected the Foreclosure and Short Sales Market.
The Imprint of Coronavirus on the Foreclosure Market
As everyone is witnessing the catastrophic situation of coronavirus, its effects are also visible in respect with the economy. The loss industries have been facing is immense and would take a while to make up forthe loss. Although, the foreclosure market is going through an uptick, according to the research by FTSE (Financial Times Stock Exchange) and REITs (Real Estate Investment Trusts) say there’s an evident index downfall approximately by 7.7 percent (noted on March 9, 2020).
If this prolongs, it would be difficult for homeowners to keep up with the monthly mortgage payments which will later result in increased foreclosure cases, although it is tough to predict the real estate market. As facts are stated, in some states the mortgage payments have been kept on hold for some time until the pandemic contains.
Coronavirus has Pushed Mortgage Rates Lower
The coronavirus outbreak has made the Federal Reserve to take two emergency rate cuts which apparently brought the bond yields to almost zero. The usual 30-year-fixed-rate-mortgage has been dropped to 3.29% (noted on 5 March). As stated in the records, previously the 30-year-fixed-rate-mortgage was lowest in the year 2012 amid the recession when it hit 3.31%. Additionally, the 15-year-fixed-rate-mortgage also fell by 16 basis point to 2.79% according to Freddie Mac.
The main cause of the mortgage rates to slump is because of the treasury market which has sunken with a lot of margin in the past months. Furthermore, the uncertainty of mortgage rates shall remain in the ditch for a long period.
Corona on Short Sales
When businesses are closed around the globe and many of them can’t go on their jobs, homeowners are forced to sell their houses for a living. Homeowners with no jobs are forced to sell their house for bare minimum profits to perform their regular routine and satiate their daily needs. As a short sale can cost less than the foreclosure to the lender, it always proves to be the most viable way for the lenders to minimize the loss and improve profits. Additionally, a short sale might not damage the credit score of a homeowner.
If you have a hefty amount of mortgage to repay then your only possible option to fulfil the amount is by selling your house to cash buying company. As there is a rapid increase in short sales it is evident that problems like unresponsive lenders, misplaced documents, erroneous or unrealistic home value assessments, and prolonging processes may make the whole process difficult. In such chaotic situation Elite Properties is one such company which will help you sell your home fast for cash on afair market value. We alsobuy your house as-is, we won’t ask for any lengthy documentation process, which automatically cuts the hassles of a troublesome sale.
You can call us at 7189775462 or visit us at Elite Properties NY to learn more about the home selling process with us. Where everyone around the world is going through the pandemic crisis we’ll help you be at ease with the home selling or short sale process.
If your house isn’t selling, it can be a big problem and a matter of extreme stress to homeowners. If it has been sitting for a long time in the market, it will ultimately lose its value. Simply tweaking your marketing skills and changing your home selling process can favor you a lot. If you think you’ve tried everything, then think again or scroll down below and go through the 7 Tips On How To Sell An Unsellable Home.
Postpone The Home Selling Dates
Setting the right time to sell in the market is extremely essential as the price you may achieve certainly relies on it. It is a known fact that real estate is majorly a seller’s market and you’d need to know about the pattern of selling homes. There is a certain time of the year where the sales are highest, spring is the ideal time to sell your house or put it on the market. Whereas, winter is the time when the sales are comparatively low. If you’re not up for the seasonal sale pattern then there’s another way where you can wait for the inventory to drop and then put your home on the list.
Try Selling Your House Under The Market Price
Mispricing your home can be the easiest mistake you can make while listing your home, so the ideal way to entice buyers is by selling your property for a lower market value. Buyers or real estate investors are always on a hunt to find houses that are priced for less than their fair market value, this kind of sale is also known as ‘fire sale’ according to the real estate lingo.
This might not be your ideal choice but in this state of utter despair this might be the most enticing option for you. As investors are constantly looking for such deals, some companies might actually surprise you by buying your property in as-is condition for a fair price. Try selling your house to ‘we buy house for cash’ company; Elite Properties New York they will buy your house in any condition and additionally offer you a no-obligation offer.
Consider Deep Cleaning, Improvements And Curb Appeal
A clean house will always sell for a huge profit, keeping in mind the functional aspects of it. Fixing serious issues like your electrical and HVAC system will work wonders if they were in a rough condition. Plumbing, windows and checking for leakages from roof or sewage pipes are important points to remember. Make sure all the functional aspects of the house are covered before selling. If you’re not able to cover the improvement’s expense then include it as an incentive with the house.
The next important thing to focus on is the curb appeal of your house. If a home isn’t good-looking from the outside it’s never going to sell. You can counter the easy and less pricey things first and then move on to the costly improvements as and where needed. Just by cleaning the sidewalks, mowing the lawn and cleaning the exteriors of your house can make a visible difference.
Up Your Marketing Game
It’s all about the virtual world these days; the easiest way to list your home on the market is by putting it online for people to take a view. Adding to the rest, the results will only show if you market your home right. MLS or Multiple Listing Service can be extremely handy once you choose to put your home online, this particular service enables you to find the right buyers on a wider platform.
Good marketing is equivalent to profitable sales so while listing your home make sure you’re putting out precise information for prospective buyers. Click sharp images of your complete house and also try making a video from the entrance to each room for a better perspective to buyers. A buyer would possibly skip pictures but not a video; make sure the quality of your video is clear, crisp and shot in bright light.
Documentation Of Property Is Essential
If you’re putting your home in the market it is important for you to keep complete written information about your property and the changes made or required in the coming future. Keeping an updated information about your property will help you in an easier sale and would promise better profits. No matter your house is in whatever condition it will always be sold for a fair price if you’ve been transparent with the potential buyer.
Think Through A Short Sale
This might be your last option to reach the final results and achieve a fair price on your property. In most cases statistically quoting; people end up owing more than the property’s worth which is practically impossible to remunerate. There are cases where most of the lenders (in case you have an outstanding mortgage) may or may not agree for a short sale additionally, not every seller will qualify for a short sale. In such circumstances it is best to opt for a short sale although it is important to do your research before diving in.
Sell Your Home For Cash To Elite Properties
Going through a mortgage, debts, improvements and top of it selling an unsellable house can be a lot to bear. In such an unfortunate condition your first option should be selling your home for cash to cash buying companies in New York like us. Selling your home for cash to us might be a boon in an ugly situation. We buy houses as-is which means you are saved from the hassles of making repairs. We close the deal in as less as 3 days which means you can take your money and repay your debts in no time.
We guarantee a fair all-cash offer with an additional no-obligation offer where you can terminate the proposal and you won’t have to pay any commission. If the deal is finalized we’ll also pay the closing and associated fees, so what is stopping you? Sell your house for cash to us and we’ll promise you a profitable all-cash sale. Call us on 718-977-5462 or visit us at Elite Properties to sell your house today.
Losing your job is a very tensed and stressful situation after which selling your house becomes the only feasible option. The burden of covering insurance and mortgage stands to be the need of the hour. In such circumstances, you wouldn’t want to wait for the traditional home selling process which can take months or even years. If you want to learn about the topic on ‘How do I sell my house fast after job loss?’ scroll down below to get the insights.
Selling your house to ‘we buy houses for cash’ company will help you in many ways especially when financial crisis come into play. Many foreclosures occur due to job loss and unemployment or homeowners lack cash, which becomes a problem while you pay mortgage or insurances. As a fact, foreclosures can lead you to bankruptcy and you won’t be given any loan further as your credit score is affected.
Avoid the Hassles of Clean Up and Repairs
In such tight constraints, it is almost impossible to give an aesthetical change to your house. Making physical changes or cleaning your house can be time – consuming whereas, staging your home can be extremely costly. Furthermore, it is difficult to find buyers who would buy your house in a traditional way. Here, you can get in touch with ‘we buy house as-is’ companies and they will take care of the rest. There is no need to spend a dime on de-cluttering of your house, staging or improving the curb appeal, once you get in touch with them.
No Need of Listing Your House in the Market
Listing your home in the market requires a lot of time, the process can last up to many months until you have found a serious buyer. People end up hiring a real estate agent which again is an additional cost while they have naught budget. An Agent will always end up advising to stage your home and make it presentable before you list the home in the market. Not forgetting, you will have to pay around 6% commission for the services they provide adding to the rest, closing costs and tax fees are the left out aspects that round up the deal while closing.
You can also chuck the process of walkthrough, as it typifies in energy, money and time consumption. It is a long process that doesn’t elude the havoc created by inviting strangers to have a look around your place. Showings additionally can hamper your timeline as well, instead of finding ways to achieve an income source you end up showing your house to strangers who’d hardly care to buy.
Sell Your House Fast For Cash
Lastly, all you can do is sell your house fast for cash and save yourself from the frustration of home selling process. Selling your house to Elite Properties can save a lot of your time and money altogether in one, how? We are a cash buying company which means we buy your house as-is without any commissions lying in the middle of the road. We propose you a no obligation offer and buy your house at the current market value which means; only profit and no loss. We also pay the legal fees and closing costs. It also advised to do some research around the neighborhood and get insights of selling your house.
The most feasible option is to sell your house as-is to us, rest assured we’ll help you in this tough situation. Call us today at 718-977-5462 or visit us at Elite Properties.
Selling a home is an arduous task, it requires a lot of time, effort and money. As easy as it looks, it becomes more challenging with each progressing step. Some homemakers make home selling process seem like finding a needle in the haystack, whereas it is a laid-back method if you avoid these 7 home selling mistakes for a profitable sale.
There are innumerable home selling mistakes that homeowners make, and very often they are common with every house and house owners. If these mistakes can be prevented there is a possibility of a homeowner to increase the yields of the sale by raising the profits by half or more. You must be thinking what are these mistakes? And how to avoid them? The answer is; we will brief you with all the home selling mistakes, so you have a guaranteed sale. If you are a first time home seller then scroll down below for the insights.
Incorrect or High Pricing of Home
Incorrect pricing is the topmost reason for home sale fall through. No matter how emotionally connected you are with your property, the truth is; a home will never be sold if priced incorrectly or high in that case. For you, your property might be the best one, although for others it may be just a functional piece with less or more amenities. It is important for you to detach the emotional ride and adapt a perspective of a potential buyer, and look for improvisations.
A competitive price will always attract potential buyers, this does not mean you have to set a lowballed or a high offer. A high price will drive away buyers whereas a low offer will make them lose interest in the house, thinking the property may have defects.
The Mistake of an Unprepared Sale
Another mistake home sellers make is neglecting necessary repairs; you can’t sell a home that has sewage issues or a leaking ceiling. Remember the first impression is the last impression and the same applies in real estate as well. A buyer can and will pay a high price if your home looks beautiful and is fully functional.
- The first thing to keep in mind before you proceed with the walkthroughs is to make repairs wherever necessary.
- Second, enhance the curb appeal of your house; mowing the lawn, painting the walls, cutting excess growth of plants, little things like these will go a long way.
- The third thing is to do optimum staging, staging your home can make anyone fall in love with your house. Light scented candles, paint neutral colors to the wall, put DIY handicrafts, keep pets away don’t let clutter dominate the beauty of your residence.
It is very easy to negate such issues, but a little or so these concerns might blatantly cause a fall through of sale. Not preparing your home according to the prerequisites of a walkthrough might be your last mistake. While you are letting others in, make sure you show them each corner of your home.
De-cluttering your home, vacating the congested spaces and staging are some pro tips for a successful walkthrough. By doing so you are improvising the sale proceeds as well as making a good impression of yourself and the home in the eyes of the buyer. Make sure you show each niche of your house so that no stones are left unturned. Highlight the dead spaces so that they can create something of their own and design the place according to their taste.
Not Being Flexible With Showings
The fact is undeniable that walkthroughs or showings do require time and effort. Potential prospects must feel warm and welcomed as soon as they enter your house, no visitor would want to see a shabby house with stuff scattered everywhere. If you can’t schedule your timings according to the prospects, you’re in a big loss. There are going to be tough and rigid timelines but being flexible is the only way out, a little time can turn into a big profit someday. Plan your day according to the visitor’s timeline so that the process of walkthrough can be easy and stress-free.
Not Maintaining Transparency with Potential Buyers
Another home selling mistake is being dishonest with buyers. This is the main cause of fall through of sales, evidently because homeowners hide about the conditions of their house. There are a lot of aspects that fall into a good sale unfortunately being opaque is not of them. To avoid this mistake you can create a complete documentation of done repairs, repairs required and money spent altogether inclusive of insurances and taxes so that the buyer is convinced that there are no issues lurking beneath the surface.
Proper disclosures are really important while selling your home; in some states being dishonest with buyer can fail your sale and lead you to a lawsuit which means a trouble forever. It is advisable to talk to the prospects and guide them through the nook and corner of even the ugliest areas.
Avoiding Flexibility with Negotiations
It’s always good to have an open mindset while you put your home in the market. Negotiating terms before selling your home might give you a profitable sale. Try melting the terms mutually, being stubborn and asking for higher price might lead to a major loss.
You’re Probably Listing at the Wrong Time of Year
While home selling is carried throughout the year, there are still some perks of selling it at the right time of the year. The question is, what is the appropriate time for selling your house? The answer, late February to Mid-May. Listing your home in colder months would come with many cons like, improper or naught walkthrough requests, no space for necessary improvements, house look drab and covered in snow. Your home might sit back in the market for longer than expected due to the lack of home buying interest. Listing your home at the right time will give you better chances of selling quicker.
Do Not Avoid We Buy House for Cash Offers
We comprehend selling your home needs a lot of time, money and energy. If you are in a situation where selling your home is taking a toll on your head then sell it to us at Elite Properties. Selling your house to ‘companies that buy houses for cash’ guarantees you a profitable sale, as a bonus ‘we buy houses in any condition’ which means; selling home as per your convenience.
If you find yourself stuck in a rut and want to make a faster sale then contact us at 718-977-5462 or reach out at Elite Properties. Sell your house fast for cash and make the home selling process easy, we won’t request for any documents or any efforts to stage your home.
The housing market is ever – evolving and constantly fluctuating. As 2019 is coming to an end and 2020 is making its way, the real estate market seems to be a lot more fragile. There are a lot of real estate predictions and trends that will be witnessed in the coming year. The past decade had multiple changes in retrospect with the laws, technology and economy. We’ll have a detailed look at what part of the demography will be affected the most. Questions like what chunk will fall in home buyers and sellers? Will the market favor mortgage rates or no? All these queries will be countered as we read further.
Check These Prediction by Experts before Investing In Real Estate
Home Sales to Rise Gradually
The very first prediction by real estate gurus has been stated about the gradual growth of home sales. It is predicted that the home sales nationwide might touch around 6 million by year end and rise by point one percent higher by 2020. The chief causes for the rapid growth are the fiscal vagueness where home sellers hold on to their houses until the market booms in their favor.
Managing Inventory Will Be a Challenge
As home sales are going to rise gradually, the upkeep of inventory will face challenges too. If there would be a high demand of home sales across the nation then inventories in 2020 would be made more available. The housing market has been facing a lack of home sales since the year 2015 due to which there are few to nothing number of homes for sale, which is making it difficult to cope with the demands of home buyers. Although, there is an understatement that home inventories might escalate in Nashville, Seattle and San Jose.
Mortgage Rates Can Be a Debatable Talk
The year 2020 will definitely raise talks as far as mortgage rates are concerned. Some say it may stay stagnant while some predicted it may rise for steeper rates. According to Freddie Mac, there won’t be any major increase in the mortgage rates. As predicted in the year 2019 the rates for 30-year fixed-rate will be 3.7% and for the year 2020 it may rise by 3.8%, while the 15-year fixed-rate rate will be 4.4%.
Refinancing Will Be a Continuous Affair
As the current mortgage rates are below 4% the home prices have risen steadily, which made refinancing pick pace during 2019’s fall. This trend would be practiced a lot in the coming year as well. According to the Mortgage Bankers Association a study showed the ‘Refinance Index’ has been increased by over 134% in 2019 which made homeowners make use of the low rates and surging equity.
According to their forecast, the bar might rise by 789 billion dollars to 785 billion dollars with respect to single family refinance mortgage instigations.
Real Estate Trends That Will Take Place In 2020
Tech Updated Real Estate Market
The latter half of 2018 and 2019 have been full of ibuyers, VR (Virtual Reality) and AI (Artificial Intelligence). 2020 again is going to be filled with technological inventions similarly, online selling will gain traction. Real estate market has been booming with full power and most of it is due to the use of technology, things like AI aids in better planning whether it is a commercial, public or private property. While artificial intelligence helps a lot with better planning, virtual reality aids in offering a better vision of your dream home, nowadays architects employ VR to help a clear idea of your property, explaining every nook and corners of your home as you walkthrough without moving an inch physically. As an eminent fact, about 50% of homes were found over the internet meaning; 50% of the population has been fallen in the chunk of ibuyers.
Millennials Remain To Be the Major Chunk of Home Buyers
After the Gen X generation, the biggest cohort of home buyers have been the millennials; they occupied 37% in the house buying arena which led them as the highest unit on home buyers. Millennials have been stated as the most tech savvy and smart people when investing or buying properties come into play. According to the research most of the millennials belong to the middle and upper-middle class which account for the 45% of the market, this automatically led the market and mortgage fluctuations. While millenials rule the 45% in the demographic distribution of home buyers share according to the year 2019 the Gen Xers stand on 37% while Baby Boomer occupy the 17%.
Offering Multiple Amenities to Gain Buyers
This has been the latest real estate trend which 2019 witnessed in the latter half of the year, offering multiple amenities to attract buyers has become the need of the hour. Smart homes are making a gushing entry in 2020, plush amenities like parking facilities, gyms, walking tracks and swimming pools are no more basic. Tenants require these as mandatory facilities these days, real estate investors on the other hand made sure the requisites are fulfilled.
Guide To Sell Your House Fast In 2020
As we have told above the real estate forecasts and trends that we will see in the coming year, home selling still becomes tough most of the times. Finding the right buyer might possibly take a toll on your head and make the home selling process difficult and time consuming hence, we have a guide that helps you sell your house in 2020 without any glitches.
You can opt for the traditional home selling process but we’d suggest you not to do so. Selling your property with cash buying companies will help in a faster and efficient sale. Elite Properties is one such cash buying company that buys and sells home without the hassles of getting into paperwork. The company will sell your house for cash which means they offer hard cash; also the company offers ‘sell house as-is’ service and additionally proposes a no-obligation offer.
Elite properties will buy house in any condition and any location keeping in mind the Fair Market Value of your house which means there’s only profit and no loss. So call us right away on 718-977-5462 or visit us at Elite Properties and rest assured home buying or selling is as easy as snapping fingers.
What is probate? In simple translation, probate means; a judicial process where a will is reviewed and proved to the court. The will states that the heir/heirs are entitled to oversee the estate and the specified assets. An heir is a person who is chosen by the decedent to manage the assets post his/her death. The will defines instructions on how it can be administered.
Why avoid probate? More of a bane less of a boon. Probate can be an expensive and lengthy process for you and the successors (heirs) both. It can end up lasting for months or even years in the worst-case scenario. The process involves a lawyer and a probate attorney, which means additional costs like hiring fees. In such an instance, you would want to end up eluding probate and carry on with the passing or distributing of the assets to the heirs.
We comprehend you work hard to earn a single penny, and you wouldn’t want to let a big chunk of it flow to the government in the name of probate. You must have proper planning on how probate can be avoided, under what circumstances. There are multiple situations where you can let go probate, and in some, it is a must. If you’re a married couple and wish to set up a trust for your children, you will have to pass through probate. A couple who has joint assets may avoid probate as under further conditions the surviving spouse receives everything without going through any legal process. If you wish to stay away from the hassles of being stuck in probate, you can know how to avoid the probate process below.
Crafting a Living Trust (Revocable Trust)
Creating a living trust is the simplest way to avoid probate. A living trust is similar to a will that is created when an individual is alive. You will have to add a name (any relative, friend, or guardian) in the trust to take over as the trustee after your death, also known as successor trustee. Here, you will have to transfer ownership of your property to yourself as the trustee of the assets. Post registering the estate (or assets in this case), will be controlled by the trust. After your death, the successor trustee is entitled to transfer the assets to the trust heirs without any probate process.
Joint Ownership Transfers with Rights of Survivorship
If you’re a couple, joint ownership transfer with the rights of survivorship works well to avoid probate, as all the assets or estate is passed on to the surviving spouse. This particular law is recognized in two facets;
- Joint Tenancy
- Tenancy By The Entirety
The couples who own equal shares valuable possessions like homes, commercial sectors, businesses, and vehicles can transfer them to the surviving spouse without being stuck in the probate process.
Tenancy By The Entirety
Tenancy by the entirety is exclusively applied to real estate and strictly stands for married couples. The particular category is beneficial to guard your estate against creditors in case of catastrophes.
Registering Transfer-on-Death for Security (TOD)
Registering transfer-on-death registration is an important aspect of saving yourself from the probate process. You can register your stocks, bonds, and security assets in the transfer-on-death (TOD) form. The specified beneficiary receives the brokerage accounts and assets automatically at the time of a decedent’s death without any probate proceedings.
Payable-on-Death Designations for Bank Accounts (POD)
The payable-on-death account entails a beneficiary’s name, which is decided by the person opening a brokerage or a bank account. The law states that the decedent preserves all rights to an account until his or her death. A beneficiary can claim the account straight from the bank without going through the probate evaluation by the court.
Life Insurance at Your Bay
If you have signed up for life insurance with an optimum level of coverage, it is probably the best decision of your life. If you have life insurance, post your death, the beneficiary will receive the profits from the company free from the hassles of probate. Not forgetting, the inheritance is not subjected to the regular income taxes, which is a bonus.
We Buy Probate Houses for Cash
If you want to sell your probate house for cash in New York, you can contact us at Elite Properties or call us on 718-977-5462. At Elite Properties we propose you with an all-cash offer on your probate house. We are a ‘we buy houses for cash company’ which means we buy houses in any condition, any location for all cash, and offer you a no obligation offer. The above literally typifies that there’s no pressure to say ‘no’ for an offer so call us today and we’ll handle the burden of your unwanted property.
We know selling a home is challenging, but selling a home in a bad neighborhood can be much more difficult. If you’re residing in an undesirable location, you can still increase the chances of selling your home for a profit. There are multiple ways to sell your house in a bad neighborhood, the easiest way is to highlight the features of your home. We would like to share ‘6 potential tips to sell your house in a bad neighborhood’ which will ensure a guaranteed sale.
Pick Shortest Routes and Stress on Features
While conducting walkthroughs or open house, you’ll have to update potential prospects with the best route to your house. Make sure you bypass routes that possess heavy traffic. Provide them with directions that have supermarkets, parks, or any public places on the way. Additionally, you can brief the visitors to the nearby subways or bus stations to help them connect to the nearby areas. You can ask your neighbors to mow the lawns and clean the overgrown yards to impress buyers. Your ultimate goal should be to make the buyers love your property before they start judging the neighborhood.
Talk to first time home buyers
Talking to first time home buyers can be easy to deal with as they can be open to various offers. If first-timers are a couple, they are probably not looking for a desirable neighborhood but a decent house. If a house fits in their budget, they’re more inclined to purchase it.
Price carefully and Offer discounts
Pricing your home requires a lot of research. Setting a high price of your house might not even qualify for a sale. You’ll have to extract home selling prices from your neighborhood to get a better understanding of a price range. You can also put repair discounts or just offer a discounted price of your home to entice buyers. Avoid spending a lot on repairs as you’ll be selling your home to people with a tight budget. If you have already made repairs then make sure you highlight those features as the USP of the sale.
Enhance Curb Appeal and Stage Your Home
When you know you are residing in a bad location, you’ll have to make slight modifications. Enhancing the curb appeal always works as magic in the home selling process. You can clean the porch, power wash the outdoors, put a fresh coat of paint and remove the unwanted items that make your exteriors look shabby. The buyer should feel welcomed as soon as he or she glances at the house. A buyer will never want a drab looking house as by the saying goes; first impression is the last impression.
Hold an Open House
Hosting an open house can be a great way of uniting buyers and offering them to have a closer look at the home. It pushes buyers to purchase the property as they know they’re not the only buyers around. You can show around the good areas around the neighborhood and give assurance of a quiet surrounding.
Consider Selling To Cash Buying Companies
Finding a potential buyer for selling a house in a bad neighborhood is difficult. Buyers won’t be satisfied unless you possess some positive points to sell the house in a bad location. We at Elite Properties comprise a team of qualified and skilled agents who assist you in your difficult times. They purchase your house in any condition and any location for cash, post which the house is sold to potential clients.
‘Sell your house for cash’ is the safest pick when none of the options work out for you. Cash buying companies buy your houses in as-is condition which means; it saves a lot of time and money. If you are considering selling your house to cash buying companies then you can visit at ‘Elite Properties’ or call us on 718-977-5462 we’ll give you the best solution for your real estate crisis.