It’s hard to resist the ‘sell your house’ ads in your mail and also the frustration of mortgage repayments. Keeping up with monthly mortgage repayments can be a tough task. If getting a new loan to cut down the expenses your next thought? You might want to reconsider your options.
The pandemic had a hard hit on everyone, with people losing jobs and it is tough to manage expenses. Refinancing your mortgage can shorten the life of your current mortgage and also provide lower interest rates. It can significantly lessen your monthly mortgage payment although, selling your home makes more sense if you’re unable to manage the monthly installments. If you are confused between to sell your house or to refinance? Choose what is best for you by reading the blog below.
Possible Reasons To Refinance House
Refinancing is a process where you replace your existing mortgage with a new loan. People usually refinance their mortgages to get a new one for lower interest rates and reduce monthly payments. There are many reasons for homeowners to refinance some of them are listed below.
To Lengthen Or Shorten The Mortgage Term
Refinancing can help you lengthen the mortgage term which allows you extra time to pay off your loan. It also lowers the amount you are entitled to pay every month. Refinancing also helps in shortening the mortgage term. When you increase your monthly payment you repay faster and save the running interest amount. This way you own your house faster and save thousands on interest.
To Change The Structure Of Your Loan
If you have an Adjustable Rate Mortgage (ARM) and you’re past the fixed period, your monthly interest rates may vary significantly. You can refinance the ARM to a fixed-rate loan which will make your monthly repayment and expenses predictable. Changing the structure of your loan gives you the control of your monthly expenses.
To Change The Type Of Loan
Homeowners refinance their government-backed loan to conventional loan as they build equity. If you pay 10% of the down payment for a Federal Housing Administration (FHA) loan, you are entitled to pay the mortgage insurance premium. Although, when you build a 20% equity on the conventional loan, you can get away with the private mortgage insurance.
To Cash Out Your Equity
In cash-out refinance you replace your old mortgage with a new one with a higher balance. The difference between the old and new mortgage is paid in cash to the homeowner at much favorable terms. As these mortgages have higher principal and low-interest rates it can be used for almost anything like paying off debt or getting new purchases.
Look For Available Options
Considering refinancing as an option but want to sell your house in the coming future. So why not look at some options? Before jumping to conclusions.
A Loan modification is less expensive than refinancing. When you choose to modify the loan your lender agrees to make changes on mutual terms. It consists of changing your monthly repayment amount, interest rates and your term. In rare cases, the lender might also reduce a chunk of principal from the amount. So, if you are facing financial difficulties this might be an ideal option for you.
No-Closing Cost Refinance
While applying for a refinance, lenders usually offer you a no-closing-cost refinance. By picking this option you merge your closing costs in the principal of the loan. In a no-closing-cost refinance you pay a higher interest rate and pay nothing while closing.
It may sound enticing although, you’d end up paying closing costs on the term of your loan anyway. However, if you are selling a house early you might only pay a few dollars. A no-closing-cost refinance may be beneficial when you cash out your equity. It provides financial aid if you are selling your distressed home.
Choose To Hold Off On Your Refinance
It is always better to skip a home refinance if you are not planning to stay in it for long. It makes sense to hold off on your refinance when circumstances aren’t much favorable. Calculate the time you’d be living in the house to earn the money back from closing.
Sell Your Home For Cash
Refinancing your home may be flexible but in some cases, it may not be an ideal option. If you are selling your distressed home, refinancing may not be worth it. Selling your home to a cash buyer is a better deal you can sell remodeled houses to Elite Properties New York and avoid the hassles of refinancing. Elite Properties is a ‘we buy houses for cash company’, which means we buy houses in any condition. You can sell your house fast for cash in NY and close the deal in less than a week. We buy property for cash and also pay the closing costs, which allows you to move faster with your plan. Call us today on 718-977-5462 to know more.
We know businesses around the world faced a hard hit due to the COVID-19 pandemic, and the real estate market was not left behind. Initially, in 2020 the housing market in the United States started with a good strike. Although, amidst March the coronavirus outbreak came into play; everything including job losses, economic slowdown due to closed business, and uncertainty in home sales waved across the nation. With home-stay-orders still in the uplifting process, you can see the ‘Impact of COVID-19 on Real Estate Prices’.
Situations Post Covid-19 Pandemic
Stated in the first week of April, the statics showed one million-plus positive cases around the globe with constant additions. The crises have impacted the global economy, and the unemployment rates have risen. According to recent claims, the unemployment rate is approximately 30 million, which becomes the justified reason for the steep economy of the states.
Regarding the real estate sector, the existing home sales witnessed an approximate 7.2% increase from February 2019 to February 2020 (sources). Furthermore, according to the National Association of Realtors (NAR), the recorded static gain which was 6.5% in January and February 2020 combined. A joint report from new home sales from the U.S. Census Bureau and Department of Housing and Urban Development (HUD) stated; there was a mere drop in home sales by 4.4% since January 2020 (as per current post Covid-19 scenario).The home sales report on a year-on-year basis (2019-2020) shows a positive growth although; it started to tumble gradually starting from January 2020.
Housing Inventory Situation
The housing inventory has been quite low, as of February 2020 it went down approximately by 10% on a year-over-year basis. This apparently dropped the supply of the housing. As the stay-in-house orders are in the reliving process it is still not possible to choose a house showing or walkthrough service. Although, a great option available for new home buyers is virtual tours. Sources specify, the virtual tour requests in April made up one-third ofthe total requests as compared in the month of March.
A Complete Home Sales Analysis
As mentioned in the previous blogs, the best time to sell a house is from March to Mid-May. The reason being winters are gone and spring blooms, which accelerates the home selling process. The new listings, as per the pre-COVID scenario were increased by 5% on a year-over-year average. Although the current status of the newly listed properties post 29th March -5th April has decreased by 34% and 31% on a year-over-year basis (sources). The percentage stands to be amongst the biggest declinations of this year. If the situation prolongs, the bar may see a fall in inventory in the coming times.
There are two predominant scenarios in home sales namely V-shaped and U-shaped scenarios. The V-shaped scenario drops in the second quarter and recovers through the summer and the recovery stretches till the end of the year. Whereas, the U-shaped scenario shows the home sales to drop gradually with constant declinations extending through the end of the year 2020. Not leaving behind, the Coronavirus has Pushed Mortgage Rates Lower, which has also made a great impact in the housing market.
What To Expect From Home Selling Or Buying?
Home selling or buying includes multiple processes to reach the end goal including paperwork, verification process, walkthroughs, etc. As the pandemic is still stagnant in place there are many changes that one has to adapt in respect to the real estate.
- If you are looking to sell your house try pushing to the late summer or fall. As per buyers, the home prices usually drop in colder months, making it the best time to buy a house.
- The closing process might witness a slow down. Although, with digital walkthroughs and remote signings are still taking place. If you are a buyer or seller proceeding with transactions can be the best option.
- Use mortgage relief programs if you are a home seller and planning to pay off your mortgage. You may also qualify for mortgage forbearance if you’re unable to repay the monthly instalments.
Additionally, to elude the lengthy home selling process you can get in touch with Elite Properties they will help in easy home selling. Also we buy houses in as-is condition which avoids the hassles of upkeep and repair. In such tight circumstances the most feasible option is to sell home for cash with a cash buying company, call us today at 7189775462.
Selling a home is a daunting process, it is said to be a very exhausting period in a homeowner’s life. The home selling process involves a lot of legal procedures and paperwork, which causes havoc. The whole phase is a combination of financial, physical, and mental concerns which an individual goes through.
In this catastrophic situation, we would like you to find out the 5 do’s and don’ts of selling your house fast.
Significant Do’s and Don’ts
Scroll down below to see the top 5 important do’s and don’ts that will accelerate the home selling process.
Repay Debts, Keep Legal Documents In Place
Firstly, it is important to keep your documents in order for the legal processes that will take place in the future. You will need documents like sale deed, mother deed, and other mandatory documents required for selling the home. Additionally, it is highly advised to repay the outstanding encumbrances, which will help in building trust with the potential buyer.
If you miss any important document while preparing to sell your house, you might be in big trouble. A missing document will prolong the sale and you won’t receive hefty profits on the property. If you misplace a deed the buyer will propose a lowballed price for your home, which is a big loss. Similarly, if you have any remaining debts, you must clear it off beforehand to obtain a decent credit score.
Preparing Your House For Sale
Shabby conditions are not acceptable, you must make the required improvements to convince buyers. There are multiple prerequisites which should be satisfied before you list your house for sale. Basic things like moving the furniture and spacing out the area will do the trick. Decluttering of unwanted items will make your home look voluminous and airy, which eventually entices buyers.
If you are carrying out improvements, you should keep in mind; overdoing the things will not help. As repairs need a substantial amount of money, it also requires an ample amount of time. It is suggested not to overdo unnecessary repairs or improvements, as it will cost you a handsome amount of money.
Market And List Your Home
Marketing can create wonders. If you market a product rightly, it could lead to the right audience. Similarly, is the case with real estate, if you do appropriate property marketing, it will reach to potential buyers. To market the property start clicking good pictures and write a realistic description of the house, neighborhood and nearby places. Furthermore, you can print flyers, post free advertisements online, print advertisements in newspapers, etc. By promoting your house, you are creating a community of buyers that would be interested in buying your property. Stress on promoting your property over the web, around 80% of home searches begin with surfing on the internet, so why not be a part of the digitalization.
Marketing is to promote a product’s feature and make people utilize it. While all this is true, people think fake assembly of descriptions and pictures would entice buyers. Absolutely not, by writing fake descriptions and staging your home, you are creating a fuss for the future. Fraudulent sales are subjected as crime, it is better to portrait what is actually yours and keep yourself safe.
While calculating the value of your home, it is essential to set a realistic price for listing. Overpricing your home will lead to a loss and also it won’t lure buyers. Furthermore, do not trust the myth that selling your home in spring is the only option to acquire bigger profits. A potential buyer will buy your house in any condition if he or she likes it.
Get In Touch With A Real Estate Agent
Hire a real estate agent who knows the tricks of the trade. Make sure he knows about the locality, neighborhood, recreational areas, comparable properties, etc. A real estate agent will help in evaluating the actual price of your home and make your ship sail smoothly.
A major mistake that most homeowners make is, they rely on the real estate agents very much. Although trusting isn’t wrong, but the blind trust that people put on them could be scary. It is indispensable to conduct simultaneous online research to verify your real estate agent’s evaluations.
A Checklist To Look At, Before Selling Your House
Apart from the given, there are many other aspects which are equally important as the do’s and don’ts. We would like to provide you with a checklist that will help you in selling your home fast.
- Take suggestions and feedback from the real estate agent positively
- Calculate the fair market value of your property and then calculate the property’s worth
- Provide walkthroughs for potential buyers
- Do not hand over the original documents before registration
- Consult with companies that buy houses for cash for faster and profitable deals
- Don’t keep on rescheduling appointment with buyers, they lose interest in the deal
- Repair sewage tanks and pipes
- Light scented candles and put flowers around the corners of your home, as curb appeal is important
- Take care of little things while providing a walkthrough, like keeping your pets out of sight from the buyers. Apparently, everyone is not a pet lover
- Put bright lights in your home so nothing goes unseen or unnoticed
- Don’t let the emotional roller coaster hamper your home sale
Our Concluding Words
While selling a property is a strenuous task, the above do’s and don’ts will make the process easier for you. Keep the mentioned points in mind, rest assured you will close the deal positively. If you are living in New York and suffering through the same problem, get in touch with ‘Elite Properties’. They moreover help you with other real estate crisis and provide with precise solutions. If you want to sell your house fast, inherit a home or get in touch with real estate agent, call on this number 718-977-5462 and get your queries sorted.
Are you in need of some urgent cash and have to sell your house fast to meet the ends? Then, sell your house fast for cash to a real estate company that buys houses for all cash…
Most of you might have come across “we buy houses for all cash” ads in your day-to-day life. It could be in a flyer, or in a banner across the road or might even be in your inbox as well. Usually, we ignore these ads thinking these are scams and approaching them might be dangerous. But, what if unexpected financial troubles have caught up and now you are forced to sell your house or property? In these situations, you might be looking for a way to get fast cash, which in turn lead you to the doorstep of most of the “we buy houses for cash” companies. Well, the real question is “How much can you trust these companies and ads”?
Seeing flyers on electricity and telephone poles that read in all bold, “we buy houses for cash” won’t do much of a convincing but, believe-it-or-not these companies are legit and has a prominent role in real-estate business. These companies will buy houses slightly under market value, make the needed repairs and sell the property at a much higher price to get profit.
How To Find Out the Company You Chose is Legitimate
It isn’t necessary that every detail on the “we buy houses for cash” flyer is accurate. Before approaching the company to sell your house make sure you aren’t being framed. Here’s how you can find out whether the company you chose is legitimate or not:
A Company with Website: The first step you must take before ringing the company’s phone number is to surf their website. If the Company’s name and logo are displayed on the website, the firm might be legal and is working under the California online privacy protection act. This will ensure all the details you enter on the website at the time of the query isn’t leaked to the public or can be accessed by any third-party company. Make sure to omit the companies that hide their names from the website as it would be difficult to trace them at the time of an issue or conflict.
A Company Which Displays Contact Information:Contact information is pretty essential and only choose the company who aren’t ashamed to display their contact information. It would be great if you work along with a company which has a dedicated customer service sector. This will make sure you are well informed about the status of the services availed.
A company with listing on Multiple Business Listing Sites: Google the company up and check whether they are listed on Business listing sites like Yelp, LinkedIn, Hot Frog, Yellow Pages, and others. A company with listing on multiple platforms can be trusted to an extent.
Check For Positive Reviews: Checking for customer reviews regardless of it being positive or negative can tell you a lot about the company and its function. This will also let you know whether the company has any previous recorded issues or conflicts with customers and the market.
Checking all these before trusting or proceeding the company will ensure that you have a reliable buyer and hassle-free services. A trustworthy real-estate company can be the best solution for your fast cash needs if you have a house to sell.
Why You Should Sell Your Home to a “We Buy Houses for All Cash” Company
1. An Immediate Relief
If you are stuck up in some financial situation and need some urgent money and the only thing you can sell is a house, then these companies can be your immediate relief. Their professionals will be evaluating your house or property and will provide you with a no-obligation cash offer. Most of the times the amount they offer will be less than that of the current market value of the property but, they’ll make sure the offer is reasonable and digestible for you.
2. Sell Your Distressed Property
If you have a distressed property, then selling it can be one of the hectic and challenging scenarios you have to go through. Finding a proper buyer is easily said than implemented. This is where “we buy houses for cash” companies come in. You can sell your property to these companies, and since it is a distressed property, any offer they put forward can be approachable. But, this doesn’t mean you have no option to negotiate.
3. Save Yourself From a Foreclosure and Short Sales
If you are facing foreclosure, a real estate company that buys houses for cash can aid you. With proper consent from your mortgage dealer, you can sell your house on short sales to the companies mentioned above and save your some money for a temporary apartment.
4. Fast Closings
These companies can close a business deal in a span of time as less than seven days. Since, there are no approved financing, appraised values, inspections and other things that pop up at the time of selling a house, bypassing all these steps will help in closing a deal faster.
What would you choose, a “We Buy Houses” company or rather wait for a buyer? We buy houses companies are legitimate, and you could easily fill your pockets just in days. Since you have proper tools and resources now after reading this article, finding a professional company wouldn’t be that hard. But, always know that “We Buy Houses” companies aren’t for every seller.