For many Americans, economic uncertainties and unexpected situations make short sales a necessary procedure. When a homeowner’s financial state suddenly becomes uncertain or diminished they may have the option to sell the home for less than is due on the mortgage, giving all the money to the lender.
Talk to your real estate attorney, and a real estate agent to clarify your options during the event of a short sale. Finding the right agent is key to making a short sale a success. The right real estate agent will have experience short selling homes, and will be knowledgeable in all the regulations in your specific area, and will also be able to get the most money from your sale as possible. Determine the true value of your home, and ask your real estate broker for an estimate to be sure you’re getting the most value. Negotiating with the bank will also help you get the most money from your sale. Overall, make sure your home is in great condition to sell, and be honest and forthright with your real estate agent, and your mortgage lender to make your short sale a successful one.
If you’re a homeowner looking to sell your home, understand that there are several things you can do to your home to increase the selling value. These simple renovations will entice homebuyers and make the selling process fast and profitable for you.
Firstly, it’s important to finish storage space in your home. Attics and basements can come alive and vamp up the overall value of your home with some simple flooring installation. If you have a large closet in your home, turn it into a home office to make use of the space in a more functional way. Simply add an electric outlet, install some shelves and place a small desk in the office. Replace the toilets in your home and clean the grout for a sparkling finish in your home. Many homebuyers are turned off by unsightly grout, and this issue is easily fixed with minimal efforts. Make sure the molding around your home is spotless as well. Updating lighting fixtures is inexpensive and can make your home look much more modern. These simple fixes can take your home to the next level, and allow it to be sold quickly, and for more of a profit.
When you’re in the market for a new home, it’s a scary time, but also a very exciting time. Enjoy the time you spend looking at all your enticing options, but be realistic about your wants and needs as a homeowner.
Some homes are just not the right size for you. If the home doesn’t have enough space, but you simply love the bathtub, be realistic and weigh the pros and cons of purchasing a small home. On the other hand, if you love an expansive piece of property, but it will only be you and your spouse occupying the home, you may be biting off more than you can chew. As is the case with finances, you must be willing to be honest with yourself (and your agent) about what you can and cannot afford. Do not purchase a home that is not within your budget because you simply cannot live without it. If the home needs a lot of work, and you don’t have the time or resources to repair it, then you may wish to reconsider whether it is a worthy investment. There are many homes available for purchase, and with a great real estate agent, you are guaranteed to find the perfect home for you.
It’s abundantly clear to a homeowner when their home is suddenly not adequate for their lifestyle, or their family. If you feel your home is too small, without enough space, it may be time to consider investing in a larger house.
Is your family growing? If you have several children, or have more children on the way, consider an “upgrade” in the size of your home. It’s important for many families to have enough room to accommodate a larger family, so if yours is growing, you may wish to have more room too. Similarly, if you’ve recently begun working at home, you may have taken up a spare room as an impromptu home office. If you work at home, and are raising a family at home, consider the benefits of moving into a larger living space. Having enough room for yourself, your business, and your family is essential to having a productive work life and healthy home life. Speak with a quality real estate professional, and be honest about your needs as you look for a larger home. Consider the benefits of more space as your family, and/or your business increase in size.
At the end of last week a new ruling took effect that directly affects renovators and re-modelers of homes that were built prior to 1978. That was the year lead paint was banned for residential use because of potential health risked for young children. Under this rule, at least one person per job site must complete the eight hour training course offered by private companies. Though there have been some complaints that the government has not provided enough trainers to help renovation companies meet the deadline and get people trained, the EPA (Environmental Protection Agency) has insisted the two year notice was adequate enough time for companies to prepare and thus they are sticking to their original timetable.
The main impact is on the economic recovery of the renovation and repair industry that has been negatively impacted by the home downturn. While many felt this industry was just beginning to recover, others feel this ruling will lead to and pro-longed downturn. How this will impact repairs of homeowner DIY projects is not known at the time but you may want to do some research and find out the implications of working in areas with potential lead paint risks before conducting the renovation or repair on your home.
When the economy goes down the toilet, everyone scrambles to save as much money as possible and one of the things that homeowners do is get rid of any type of insect treatments, including termite treatments. I would use extreme caution if this is one of the things you are thinking about terminating because once you place your house on the market, if it has termite damage, it could cost you the sale of the home.
Recently, I showed houses to a couple who were interested in putting a contract down on a house before they discovered an entire interior wall eaten up with termites, which had the immediate affect of them changing their minds. This particular house was valued by local taxes in the 200’s and ended up selling to an investor in the 60,000 range. Ouch! The owner of that house took a big hit due to the damage done by these little creatures that could have been avoided with proper treatment. Unfortunately, I am seeing way too many homes with preventable termite damage and it is affecting the sales price. The take away is simple; protect the value of your home by keeping the termites at bay with annual inspections and treatments if necessary.
Like most homeowners, I’ve had times where the toilet is running non-stop, a drawer is off track or a towel rack has come off the wall. When you rent, it’s an easy fix. Just call the landlord. However, homeowners don’t get that luxury. These are simple fixes, unless you’ve never had to do them before. Now the internet has made that lack of experience no big deal.
There are a plethora of articles and videos that allow you to learn at your own pace. Besides the money savings, doing it yourself is also quite empowering. Here is a sampling of sites that provide help with household projects:
- Diy.com – Here, you’ll find step by step guides on home projects and tool selections.
- ehow.com – This site isn’t geared toward just home improvement, but it does have a large home and garden section.
- Handymanclub.com – This is the official website for Handy Magazine, and offers many do it yourself guides.
- Lowes.com – You’ll find a bunch of helpful videos by following the how-to tab on the home page.
Doing it yourself has never been easier. All you have to do is look online, and you’ll get the answers you need.
Have you heard about the latest tax credit for first time homeowners? If you purchase a home between April 9, 2008 and June 30, 2009, you may be eligible for a tax credit. You will need to check with your accountant or tax preparer to find out if you qualify for this credit or not. Like all such tax issues, this will depend on a number of factors.
But before you jump up and down with delight, you need to know that this credit is more like an interest free, fifteen year loan. In other words, you have to pay it back over time (15 years). You will be able to claim the lesser of $7,500 or 10% of the price of your home. Basically, any home over the selling price of $75,000 can claim $7,500 and a purchase price under $75,000 will be eligible to claim up to 10% of the purchase price.
There are nuances about when you have to start paying the credit back, what happens if you sell your home before you get the credit paid back in full and what if you sell your home at a loss? These are all things you will need to go over with a tax preparer.
If you have used another government program like THDA to buy a home during this time frame, you cannot qualify for this tax credit. A family or person can use only one type of assistance to get into a home. Just like THDA, there is an income cap that must be met for qualifiers. For this tax credit, if you’re single, the credit is not available if you earn more than $75,000 per year, or $150,000 for joint filers. It is unavailable completely if you earn $95,000 individually or $170,000 jointly.
The government is attempting to boost the housing market and get the economy started with this tax credit. However, be very careful and make sure you qualify for it before you start making plans to buy because if you don’t qualify, it could be a tax nightmare. Again, check with the person or company that does your taxes and make sure this is a good move for you to make.
