Home Selling Tips

Some homeowners often wonder how this works, how can you possibly sell your home while there is still a mortgage on it. It can be fairly simple, just like selling a car that you haven’t paid off yet. However, there are some things you need to take into account before deciding to sell.

First, you need to factor in the 5 year rule. If you bought your house within the last few years you may not be able to sell your home without bringing money to the closing table. New homeowners need to stay in their house for at least 5 years to make sure they don’t lose money when it comes time to sell. We know this isn’t always possible, especially when you have to transfer to another city because of your occupation. If your job is the case be sure and ask your employer if they can possibly help offset the costs of selling your home without any equity in it. Maybe they will, maybe they won’t – it doesn’t hurt to ask.

Steps To Take To Sell Your Mortgaged House

If you have been in the property for a few years and have to move the next thing to do is lose your emotional attachment to the property. We understand this can be difficult, especially if you like your house and are having to move because of work or some other reason. Investopedia has some good advice about this:

Once you decide to sell your home, it can be helpful to start thinking of yourself as a businessperson and a home seller, rather than as the home’s owner. By looking at the transaction from a purely financial perspective, you’ll distance yourself from the emotional aspects of selling the property that you’ve undoubtedly created many memories in.

Also, try to remember how you felt when you were shopping for that home. Most buyers will also be in an emotional state. If you can remember that you are selling not just a piece of property but also an image, the American Dream and a lifestyle, you’ll be more likely to put in the extra effort of staging and perhaps some minor remodeling to get top dollar for your home. These changes in appearance will not only help the sales price but also help you create that emotional distance because the home will look less familiar.

Read The Full Article Here

We can’t stress enough how important it is to distance yourself from the property. If you can, pack up a lot of your personal belongings, especially pictures to make it easier for a buyer to see the home as their own.

Contact Your Mortgage Company

If you plan on listing your home with an agent you should contact your mortgage company first to learn what your pay off amount will be. This will help you when it comes time to calculate what the house will bring on the market. It will also help the agent to know at what price point you need to be if you have been in the home for a short amount of time.

Lauren Perez gives some more important info from her article on Smart Asset:

If you’re thinking about selling your home, it’s best to contact your mortgage lender and ask for your current mortgage payoff amount. The amount you receive is generally valid for 10 to 30 days, before more interest accrues and changes the amount. Why does this matter? Knowing your outstanding loan balance will help you come up with a selling price. What’s more, you’ll need to use the money from your home sale to pay off your mortgage loan.

It’s also important to review your mortgage loan paperwork and look for due-on-sale clauses. Due-on-sale clauses protect lenders by requiring homeowners to pay their mortgage loan in full after selling their home or transferring their deed to someone else.

Read The Full Article Here

The due-on-sale clause is almost always in the loan paperwork now days. The lenders started putting that clause in to help them make more money. Basically it’s there so that if interest rates were to rise sharply they can collect more in interest from a new home owner.

What If You Are “Upside Down” In Your Mortgage?

This isn’t as common as it was a few years ago, but it does happen. As we discussed earlier if you have only been in the house a couple of years you won’t necessarily be upside down, you just won’t have enough equity to cover closing costs. However, some homeowners have multiple mortgages or HELOC’s (Home Equity Line Of Credit) that is maxed out. These sales can be a bit more difficult, especially if you don’t have the cash to cover these loans. So what do you do? A short sale.

SFGate explains perfectly what a short sale is:

In a short sale, the lender agrees to take less than it is owed and still clear the mortgage off of the books. Short sales can be complicated to set up and very time-consuming. While a law passed in July 2011 generally prevents your lender from coming after you for the short sale deficiency, it’s still a good idea to make sure that you won’t be held personally liable after the fact.

Read The Full Article Here

It’s great that the law was passed in 2011. However we have seen that short sales can take a long time, if they happen at all. For what ever reason the lender decides not to complete the short sale. If this is the case, unfortunately you may have to consider a Chapter 7 or 13 bankruptcy.

Summing It Up

Yes you can sell a house while there is still a mortgage on it. If you have been in the house for a long time – great, you shouldn’t have any problems. If you sell the traditional way with an agent you should have enough money for closing and might possibly walk away with some cash. If you have been in the home only a few years, or owe more than it is worth, it might be a little more difficult.

If you have a house and would like to sell it, we would love the opportunity to make you an offer. If you have only been in the house a few years, we probably won’t be able to make a deal. However, if you have been in it some time or the house needs some repairs – we probably can. Just reach out to us at (770) 756-8680 or visit our site to complete a brief form and we will get back to you soon.

Losing a loved one is a terrible thing. The grief can be overwhelming, especially when it’s a parent. Hopefully they have a last will and testament for how things will be handled after their passing It can make things much easier for you, especially if you have siblings.

There can be a lot of things that need to be addressed after their passing. Final expenses, credit cards, cars, pets, and a host of other things – including a house. In this article we will talk about your options when it comes to a property.

First, if you are reading this and have recently lost a family member, we are truly sorry. If you have inherited a property and want to sell it, we are here for you. We promise to make the entire selling process as easy as possible for you. You can reach us at (770) 756-8680 or visit our site to complete a brief form and we will be in touch shortly.

What Are Your Options?

Really, you pretty much have 3. If all of these are available to you or not are dependent on your individual situation:

1. You can move into it
2. You can rent it out
3. You can sell it

Moving Into The Property

If the house you inherited is nicer than yours, you may want to move into it. This does depend on whether or not you have siblings and you can all agree that it’s okay for you to take ownership of the property. It will also depend on whether or not there is an existing mortgage that will need to paid and you can make the payments.

Lisa Johnson Mandell from Realtor.com explains more:

In the best-case scenario, the property is paid off and comes to you, the sole heir, free and clear. In that case, you’ll be personally responsible only for property taxes moving forward, inheritance taxes (if any), and any repairs and improvements you choose to make.

However, if you’re not the sole heir and inherit the house with, say, your siblings, moving in will also mean compensating the other inheritors (and hoping they aren’t gung-ho to live there, too).

Whatever decision you make, try to base it on a balance of emotional and financial factors: While you may have always dreamed of keeping the place in your family for eternity, if that’s not possible, don’t beat yourself up. Remember, the deceased had meant this inheritance to be a gift rather than a miserable weight on your life. So do what makes sense for you.

Read The Full Article “So You Inherited Property—Now What?“

Lisa makes a good point about the deceased was passing on a gift. Time and time again we have seen siblings squabbling over who was getting what. We also like Lisa’s point of compensating the other heirs if you plan on living there. If you own another property and selling it consider giving you siblings a portion of those proceeds.

Renting It Out

This is also another possibility, especially if you are the sole heir. There are some things you need to ensure to be certain this is a feasible option. What kind of condition is the house in? If it’s newer then you won’t have to worry as much about repairs. If it’s older, than you may have to replace the roof, HVAC system or maybe even new appliances. If there is a mortgage on the property you will have to make sure that the rent covers that.

Then there is the whole aspect of dealing with tenants. They can be demanding. Who wants a call at 3 a.m. with them complaining about they can’t sleep from the noise of the faucet dripping , or they clogged a toilet and it’s over flowing?

There is an alternative to you dealing with them yourself – Property Management Companies.

Tim Jones recently wrote this on the Daily Republic on the subject:

Keeping it can be an investment. You can hire a property management company to manage the tenants, repairs, etc. associated with the house. Ultimately, it could turn out to be a good long-term investment, regardless of whether you ever move into it or not.

The advantage of a professional property management company is that you don’t need to be versed in landlord-tenant law, and don’t need to handle the day-to-day worries.

Read The Full Article “All Things Real Estate: 2 choices with inherited house: keep it or get rid of it“

Property management companies are a great option for taking care of your property and tenants. Some companies will even find and screen the tenants for you. It does come at a price though ranging usually between 6-10% of the monthly rental amount.

Selling The House

This option we run into a lot because, well, we buy houses. Over the years we have purchased multiple probate properties. Just like the other two options you still have to weigh your options. The condition of the property is going to make a difference on how and who you sell the property to. Where the deceased hoarders? Does the house need extensive repairs. Does the property need updating? Hopefully there isn’t more money owed on the property than it’s worth, although this isn’t as common as it was a few years ago.

If the home is in good shape and you have time you can probably list it with an agent. But check out what Christine Bartsch has to say about listing with an agent on Homelight’s blog:

When you’re lost in bereavement and the complexities of probate, it’s natural to look to the familiar—such as hiring your favorite real estate agent. But unless your favorite agent specifically handles probate properties, this is a mistake.

While most probate sales functions similarly to a traditional sale, there are some key differences that require specialized know-how. A probate real estate agent will know how to handle these differences, such as selling a property that requires court confirmation or drafting contracts when the probate property is still in the decedent’s name.

If you don’t live near your inherited property, you’ll need to hire a probate agent who’s local to the property rather than you. This ensures that your agent knows the laws and ordinances of the property’s home state, city and county that may impact your sale.

Read The Full Article “I Just Inherited Property in Probate, What Happens Now?“

Great advice from Christine – be sure your agent is familiar with the probate process in the state the property is located in.

Here is a video that explains even more indepth about some of the things you may face in selling a probate property;

Summing It Up

Having to deal with an inherited property or probate property is almost never easy. Go through all of your available options and choose which will be best for you. Probably one of the biggest things we can suggest is that you talk things over with your parents before they pass and make sure they have a will so that things won’t be as burdensome for you when they do pass, it’s the responsible thing to do.

Some people enjoy remodeling their home and making it their own. Others not so much. In this write up we will cover some of the things that you should do and mostly things you should avoid when planning and executing any remodeling in your home.

But first, if you think you have to remodel your house before selling it – think again. Here at Mandich Property Group we will buy your house in as is condition. Even if you have things you don’t want to take with you – it’s not a problem. Reach out to us at (770) 756-8680 or visit our website to complete a brief form and we will contact you shortly.

Now – on with some tips on Remodeling your home!

Create A Budget

This seems like a no brainer, but is often overlooked. Planning a budget is a must. If you have to go to an outlet store and start getting prices – do it! As investors we can tell you from experience that we almost always run over budget. We do try to stick to it, but in the end we want a product that we are proud of and that a new home owner will enjoy. The last thing you want to do is cut corners at the end of a project just to get it completed, only to not be satisfied with the end result.

Ayn-Monique Klahre from Real Simple goes on to explain even more about the importance of planning a budget:

Since the general rule of thumb is that it’s going to cost more and take longer than you think, make sure you have a big enough cushion in there that you’re not breaking the bank (adding an extra 10 to 20 percent more to the initial estimate is a good start). “If by some miracle you come in under your number, you’ll be happy to have a little extra for decorating!” says DiClerico.

As a general rule, you’ll want to spend more on things you interact with—like cabinets with doors you’ll open and close dozens of times a day—versus things you use less, like decorative tile.

Read The Full Article “The 7 Most Common Home Renovation Mistakes to Avoid“

The last sentence in that snippet is extremely important. If you are doing a kitchen remodel you don’t want to spend all of your money on marble tile and granite counter tops only to have to buy cheap appliances because you are out of money.

Know Your Limitations

Just like Clint Eastwood said in the movie Magnum Force – “A man has GOT to know his limitations”, the same holds true when it comes to remodeling your home. There have been countless times when we have gone to a property that someone wants to sell and it’s very obvious that

• they did the remodeling work and had no clue as to what they were doing or
• they hired a sub par contractor or may have took the lowest bid

In either case we knew that the work would have to be redone.

Donna Boyle Schwartz talks about this in her article from Bob Vila’s blog:

Be realistic about your DIY skills. You may be a wizard at painting, and you may even be fairly proficient with Sheetrock and decorative molding, but certain projects are best left to the pros. Indeed, many communities require that plumbing and electrical work be performed by a licensed contractor. The last thing you want to do is take on a project that is beyond your level of expertise and then have to pay a professional to come in and fix your mistakes. Figure out what you can and, more importantly, cannot do yourself before you start a project.

Read The Full Article “The 7 Deadly Sins of Home Remodeling“

It’s extremely important to remember that if you are doing any kind of addition you should always hire a licensed contractor for plumbing and electrical work and get the proper permits.

Choose Your Contractors Carefully

So now you may know that you can’t or don’t want to do everything in your home remodel. Maybe you just don’t have the time, that’s totally fine, the last thing you want to do is get in over your head.

When it comes to hiring a contractor do yourself a favor and get quotes from at least 3, more preferably if it’s a larger project. Nationwide’s Blog (yes, the insurance company) has some great tips on choosing your contractor:

Don’t rush your decision on hiring a contractor. Interview multiple contractors and reach out to their references and previous clients. Make sure each contractor understands what you want. Don’t hesitate to ask them questions about materials, layout and the construction process. Don’t select your contractor based on price alone; compare price quotes and references, and make sure you can work easily with them.

Read The Full Article “The Biggest Home Renovation Mistakes to Avoid“

We would add that you should also research them on the web. Look at their Google listing and check out their reviews. If they have a lot of bad ones – well maybe you should think twice about using them.

Every homeowner (including investors) want the same thing from a contractor, Good, Cheap, Fast work. The problem is that really only two of those at a time is possible. Here is a diagram that helps explain:

For example, if you want good work cheap – then it won’t be fast. If you want cheap work fast – then the quality of the work will suffer and if you want high quality work done quickly – you guessed it – it won’t be cheap!

Doing Projects In The Correct Order

This is something else that is commonly overlooked. This can be really important if your storage is small. You don’t want your new appliances delivered before they are ready to be installed and you have no place to put them.

Tami Brehse from Business Insider explains more:

Budgeting is an obvious part of the planning process, but many homeowners neglect another important part that requires strategy: workflow. Poor planning here can result in delays and added costs.

“When remodeling, things need to occur in a certain order,” Helling said. “For example, you don’t want to refinish flooring and then paint.”

Paint — or a crew of painters and gear — can easily damage brand new floor coverings, so flooring should almost always be done last in a renovation project.

Another commonly overlooked part of the workflow is cleanup. Will your project require a dumpster? What about a truck to haul away debris? Think through your project from start to finish to ensure you’ve accounted for all the necessary steps in the process.

Read The Full Article “The 8 biggest mistakes people make when remodeling their homes, according to real estate agents“

Finally here is a quick video from News 5 out of Cleveland that gives some quick pointers:

Summing It Up

Remodeling can be a daunting task, but if you plan properly you shouldn’t have as much stress and will be able to save some of your hair 😉 . Create your budget, check out your contractors and in general – plan properly. Try and have fun and don’t yell at your spouse or significant other to much!

 

Almost everyone loves pets. According to Psychology Today 39% of Americans own a dog and 33% own a cat, so the chances of a potential buyer that visits your home owns a pet are pretty good. However, having a pet in your home that your are trying to sell can adversely affect how fast you are able to sell your property, as well as the price. Keep reading to find out why and what to do with your pets when trying to sell your house.

Pets And Trying To Sell Your House

We’ve covered in a previous article improving your curb appeal to help welcome, and be more inviting to potential buyers. However, if you have the outside pristine only to have them walk inside to smell a dirty litter box, you have a problem.

First, not all people are comfortable with pets. Ya, it’s hard to believe, but true. I mean what’s not to love? Most pets are very lovable and only require some food and water and are willing to give you all kinds of love in return. But some people are scared of dogs and cats, while others maybe allergic to them. The Balance has this to say about why some people don’t like pets:

Why Don’t Home Buyers Like Your Pet?

• Nervousness. Pets make some people very uncomfortable. Not everybody grew up with a family pet or enjoys outings at the zoo. Fur and four legs does not a human make.
• Fear. Real and irrational. It’s not only dogs that instill fear in people. All kinds of silly wives’ tales and superstitions involve cats.
• Inexperience. Pets are not always predictable.
• Your pets aren’t their pets. They imagine yours bite, jump, vomit, claw, spit-up hairballs or are just plain hyper and bad — which is not all like their pets. Their pets are perfect.

Read The Full Article “Selling a House with Pets at Home” Here

The last point is pretty good, your pets aren’t their pets and everyone thinks their pets are perfect, kind of like children 🙂

Pets Can Adversely Affect Your Selling Price

If a buyer walks in and notices a dog or cat, more than likely they are going to start looking for pet damage. This can really affect how much you are able to sell the house for. How Stuff Works has this to say about how pets can adversely affect your sale:

If you want to ensure you get the highest final sale price, you’ll have to properly stage your home to create the illusion you are not a pet owner — or at least eliminate any signs that your animals were destructive. How? By fixing any major damage your pets caused that will catch the eyes (and noses) of potential buyers. In some cases, a quick fix will do. But larger problems may require more significant repairs — or may need to be replaced altogether.

Even if your house is in excellent condition, and you’ve done your best to keep it clean, owning pets could take up to $30,000 off of its value if potential buyers notice odors or other pet issues [source: Tuttle].

Read The Full Article “5 Pet Problems to Fix Before You Sell Your House” Here

30k is a lot of money to lose just because a potential buyer notices a smell of pets or urine in your house! So get rid of all of those odors and pet stains before even thinking about trying to sell your house. Now on to the last thing, which can be hard to do for a lot of pet owners –

Remove Your Pets When Trying To Sell Your House

Yes, removing your pets is the best thing you can do. This way you can clean the house and not have them make a mess right behind you. There are also legal reasons why you may want to relocate your pets when selling:

When selling a home with pets, at the very least, you should remove your them from your home when you are showing the property for sale. All the cute things your dog does will not help you sell your home, and will only remind the potential buyer that the house has contained pets previously.

Ideally you should have your real estate agent showing the home, preferably while you are away. Having a pet in the house or yard can create complications for your agent while trying to show the house, and puts your pet at risk of accidentally getting out during the process. There are also liability issues to deal with as well. While your dog or cat may be ultra friendly, it is certainly possible they can have a bad day just like you and I.

When you leave your pet home during showings you are asking for trouble especially if a buyer brings a young child and they are curious. The last thing you want is Fido taking a chunk out of a buyers child’s arm. Remember we live is a lawsuit happy society! You are taking a big risk when your pet is allowed to roam freely during showings.

Read The Full Article “7 Tips to Sell a Home with Pets” Here

Your dog may have never bitten anyone before, but if you bring in a stranger your dog is probably going to be a little on edge. Add in a small child that may be a little to rough with the dog and before you know it you have a problem. Something else to mention that if you are not at home when your house is being shown and your pet is and it gets out – it can be hard for an agent to wrangle your pet, your pet may get lost or worse – injured.

Summing It Up

We all love our pets, but they can make it difficult when trying to sell your home. It is best that if it is possible for you to relocate them while the house is on the market, it will be best for your wallet as well as your pet. If you aren’t able to relocate them be sure and crate them or possibly put them in a doggy daycare on days when you are showing the property.

If you are in the Metro Atlanta area and are trying to sell your house fast and have pets – we love animals! We would love the opportunity to make you a fair, all cash offer for your property and we don’t mind if your pets are at home when we visit. In fact, we would like to meet them! You can learn more on our site at www.MandichPropertyGroup.com

You are ready to sell your house. You possibly are ready for an upgrade or maybe have a new job in another city. Whatever the case may be, getting your house ready to sell is at the top of your list. First impressions to a potential buyer are extremely important. What’s the first thing they notice? Your yard. If the yard is trashed and hasn’t been maintained, a buyer may leave and not even want to come in. No matter how nice the inside of your house is, if you have overgrown shrubs and bald spots in the yard, buyers are going to form an opinion about your house before stepping foot inside. Don’t know how to make your yard immaculate? Then keep reading.

You Get One Chance At First Impressions When Selling Your House

Like it or not, your yard is the first thing people notice when they arrive. How does the grass look? Do you have sod with weeds in it? Are there bald spots? How about the shrubs. Are they overgrown and maybe touching the house? Surprisingly enough, Popular Mechanics has this to say about your front yard when selling:

It doesn’t matter how attractive your home is if no one can see it. Trees, branches, and shrubs can obscure your home’s features and make it seem dark and uninviting. Plus, trees that rub against your house can damage your siding, limit the amount of direct sunlight you receive, and offer a bridge to squirrels, mice, and other critters that want to get onto your roof or under your siding.

Rent or buy a chain saw to trim back tree branches, and use a hedge trimmer to tame your bushes. Cut away anything covering a window or touching your house. Well-manicured trees and shrubs complement a healthy, green lawn.

Read The Full Article “10 Ways to Improve Your Home’s Curb Appeal” Here

Even if you aren’t moving, keeping shrubs, overgrown bushes and trees from touching your house is a good idea. The thing that we notice most here in Georgia by overgrown shrubs touching the house is that it is a gateway for bugs to enter your house.

Look At Your Property From A Buyer’s Point Of View

This is pretty easy to do. You can walk across the street and just look at your property and see what needs to be done or what “jumps out” at you. An important thing to do is to park where a potential buyer would and evaluate the property from there, which was pointed out in an article from The Balance:

Curb Appeal Exercise

The next time you drive up to your house, make note of the following:

1. Your first impression of the house and yard.
2. The best exterior features of the house or lot.
3. The worst exterior features of the house or lot.

Park where a potential buyer would and walk towards the house, looking around you as if it were your first visit. Is the approach clean and tidy? What could you do to make it more attractive?

Take photos of the house’s exterior. If you have a digital camera, view the color versions first, then remove the color and look at it in black and white. It’s easier to see problems when color isn’t around to affect our senses.

Make a list of the problem areas you discovered. Tackle clean up and repair chores first, then put some time into projects that make the grounds more attractive.

Read The Full Article “How to Improve Curb Appeal” Here

We like the tip of taking photos and removing the color and looking at them at black and white. That’s a great idea to gain another perspective of your property. It’s also a great idea to make a list of everything that needs to be done even before starting. The list will help you make sure you get things done as well as give you a sense of accomplishment checking things off the list.

Tackling Large Shrubs And Flowering Trees

While everyone that owns a house knows how to mow a lawn ( or at least you should 🙂 ), not everyone knows how to maintain larger shrubs and flowering trees. One flowering tree that is popular in Georgia is a Dogwood. Believe it or not, there are proper times of the year to trim up these trees without damaging them, which was covered in a recent article by Houzz:

Flowering dogwood forms flowers on older growth and should be pruned shortly after flowering has ceased.

Flowering trees. Early blooming trees, such as dogwood, should be pruned in summer, once the flowers have faded. These trees, which bloom in spring into early summer, produce their blooms on growth from the previous year. Trees that bloom in summer develop flowers on new growth that has occurred in the same year, and they can be pruned in late fall through early spring.

Read The Full Article “When Should You Prune Your Trees and Shrubs?” Here

Hopefully you have been keeping up with trimming your flowering trees. If you are selling your house and you need to trim a tree outside it’s recommended time frame, hopefully you won’t damage or injure the tree to bad. You may want to seek the advice of a professional arborist to properly guide you.

Conclusion

Like we stated above, you only get one chance to make a first impression. When selling your house that first impression is made when a buyer first arrives at your property and looks at the front yard. If you can afford it, you may want to hire a professional landscaper to help up your game. If not, you may have to spend an entire weekend or longer making your property more presentable.

If you don’t have the time or money to make your landscaping look immaculate, let us remind you that we buy houses as is. We don’t care if the yard or house itself hasn’t been kept up. We buy houses fast in any condition – you can learn more at MandichPropertyGroup.com