HOME SELLING INFORMATION - Archived
Below, you will find information on the following topics:
THE 3 BIGGEST PITFALLS OF SELLING YOUR OWN HOME
Show 175 Air date: 7/21/02 If only selling a home was as simple as putting a sign out on the lawn and waiting for the right person to come along. If you aren’t house smart, mistakes could cause you lots of unnecessary stress and expenses too. We welcome Rachel Torchia, owner of Gateway Title Agency. She’s a pro when it comes to helping folks sell their homes, problem-free.
Question: … Do people realize what they’re getting into when they stick a “For Sale by Owner” sign on their lawn? Answer: First of all, the state of Ohio does not recognize verbal agreements or handshakes. They require written documents. Escrow companies ONLY follow written instructions, with signatures. Answer: People hesitate because they don’t want to invade someone else’s privacy. But you have the RIGHT to know about how they plan to finance the purchase. Answer: People are often very emotional and excited about the sell/purchase, but it is extremely important to coordinate your dates. The title and money transfers CANNOT happen on the same day. Allow three days between each transaction.
Question: What is a closing?
Answer: The closing is where the title and money are exchanged. The money must come in at least 1 -3 days before closing. There are three important dates:
All these dates should be stated - - and not on the same day. Answer: Well, our role if you call Gateway Title is to educate the seller so that he/she knows what to expect.
---Rachel Torchia For more information on this topic, call Gateway Title Agency 1-800-357-0567 _____________________________________________________________
WHAT IS A TITLE COMPANY?
Show 179 Air date: 8/18/02 You put the “for sale” sign out on your front lawn. Now what do you do? You need a title company. But why? Here to explain what the right title company can and should do for you is Rachel Torchia, owner of Gateway Title Company.
Question: What is a title company? What is its function? Answer: In this area, title companies are involved in two phases of the real estate process. Question: What kinds of problems do you find when you do a title search?
Answer: For example, the home may have been owned by multiple owners at one time, one owner failed to sign off, so that person is still the owner. Or possibly the house was once sold on forgery Question: Who chooses the title company? Answer: In Northeast Ohio, traditionally the seller picks the title company. It is their responsibility to make sure that the title is good. Answer: Yes. Some companies specialize in commercial real estate, or work specifically with builders or lenders. Answer: We aim to deliver the best of customer service. Selling a house can be very stressful—sometimes the seller’s biggest fear is actually finding a buyer. We want to educate the seller and take the mystery out of selling a house. ---Rachel Torchia For more information on this topic, call Gateway Title Agency 1-800-357-0567 ___________________________________________________________
REFINANCING AND CLOSING COSTS: HOW TO SAVE MONEY
Show 184 Air date: 9/21/02 One bright spot in our sour economy is the low mortgage rates. Is now the time to refinance? If your home is paid off, is now a good time to pull out some of that equity? Here to answer these questions is Michael Torchia from Gateway Title Agency.
Answer: Yes, because the interest rates are lower than they have been in 40 years. An average 30-year mortgage with a fixed rate is currently 6.25%--that’s unheard of! Rates are usually around 8-9%. Answer: It depends. Now, I’m not a financial advisor, but I do have years in the real estate business, both as a mortgage originator and now in the title industry, so I can give information based on years of experience. Question: Are there costs to refinancing?
Answer: Yes. Generally $2,000 - $2,500. But shop around. Costs vary: lender costs (processing, origination fees) and title costs.
Answer: Most lenders offer a lock-in option. Be sure to check.
Answer: When you refinance, you have to make sure that the title is clear. If you still have the original title policy from when you bought your home, there are discounts per the state insurance laws. You will receive a re-issue rate—which is roughly a 30% savings on the refinance policy. (Based on new loan amounts and what the balance is from your old loan). ---Michael Torchia For more information on this topic, call Gateway Title Agency 1-800-357-0567 ___________________________________________________________ GETTING YOUR HOUSE READY FOR SALE ON THE SPRING MARKET
Air date: 1/19/03 It’s definitely winter outside. But if you’re considering selling your home this spring, now is the time to spring into action. Rachel Torchia, owner of Gateway Title Agency, will give us the inside scoop on what it takes to get your home ready for sale. And she’ll tell us about the one important step most people forget. Answer: We’ve found that most people start fixing up their house around the third week of January, so that they can start advertising at the end of February. Answer:
Question: What about outside the house? Answer: Make sure the yard is neat and up to code. Answer: Not yet. Most people forget the last, and very important step—making sure that the title is as clean as the house. Answer:
Don’t risk losing a sale due to last minute title problems. Give Gateway Title Agency a call to get a free closing kit and to register for a free “closing class.” Gateway will help you with all aspects of selling your home.
For more information on this topic, call Gateway Title Agency 1-800-357-0567 ___________________________________________________________ PITFALLS IN SELLING AND BUYING A HOME
Air date: 2/16/03 Home is where the heart is. But if you’re selling your home, it’s likely where the stress is too. That’s because home sellers don’t understand the process and make lots of mistakes. Here to make sure you sail through the sale process is Bridget Connor, Senior Title Consultant from Gateway Title Agency.
Question: People often make big mistakes when they put their home up for sale. Bridget, you’ve made a list of some of the common pitfalls for us today, so that we can be better prepared. Let’s start with the first one on your list: Sellers do not understand the process. Can you explain? Other confusion comes from: - Property Disclosure Form Pitfall #2: Title is Not in Order Unreleased liens/mortgages - unreleased leans from the prior owner - unknown tax leans - improperly executed deeds -even titles that are not fully conveyed. Human errors occur. You should have the title looked at before you put the sign out to sell your home. At Gateway, we have a program called “Smart Start.” For $125 off the normal cost of examining a title, we can begin the process before your house is bought. The money goes toward the fee you’d have in escrow—you don’t pay twice for the title examination. Pitfall #3: Not Understanding the Timing Example: Seller was buying new home. Didn’t understand dates, so didn’t have cash for purchase. Builder of new place demanded cash, so seller had to get bridge loan. Cost $2,000 extra. If dates coordinated, no cost/problems. Question: How do you, as a title company, help sellers avoid these problems? Answer: 1) Free kit with training material that goes through all steps. Tells you needed paperwork, has comparables for area, has property Disclosure Forms and even a sale contract.
For more information on this topic, call Gateway Title Agency 1-800-357-0567 ___________________________________________________________ CLOSING COSTS: WHO PAYS WHAT AND WHY?
Air date: 3/30/03 When you sign the agreement to sell your home, you probably expect to receive the full sale price, minus any agent’s commission. But there are lots of other costs that most sellers know nothing about. And sometimes sellers end up paying more than their fair share. Here to open our minds to closing costs is Rachel Torchia from Gateway Title Agency.
Answer: Title exams, title insurance, escrow fee, conveyance fee, preparation of the new deed, etc. Answer: Who pays for what is actually determined by the purchase agreement signed by the seller and buyer. So many people don’t know that, or don’t read the purchase agreement before they sign it, and the therefore surprised by the terms of closing. It’s important to read the purchase agreement and to learn what you should expect (we have classes). Question: What SHOULD a purchase agreement say when it comes to costs?
Answer: Who pays what is actually based on the customs of the area in which you live. Here in Northeast Ohio, most of the costs are split equitably.
But again, these are not set in stone. It’s really whatever the seller and buyer agree to put in the purchase agreement. Question: This sounds like it can be confusing. I know Gateway Title offers some help. Answer: Yes. We hold classes on Saturday morning where we’ll go through purchase agreements and make people aware of the customs. Also, our free closing kit has this information.
For more information on this topic, call Gateway Title Agency 1-800-357-0567 ___________________________________________________________ SMART START
Air date: 4/27/03 You’ve decided to sell your home. You’ve cleaned it up, maybe put on a new coat of paint. But are you really ready? Our next guest, Rachel Torchia of Gateway Title Agency, says that if you don’t clean up your house title, you may run into problems that can cause you to lose a sale.
Question: What's a house title?
Answer: That’s the deed that shows your ownership.
Question: ’Tis the season for selling your home, isn’t it? Home sellers are starting to get everything ready: what’s the most important thing they can do to ensure that they are successful in selling their home?
Answer: Everyone starts cleaning up their home to get it ready for sale, but it’s important to clean up the title of your home as well. One in four titles need some kind of “clean-up” work done before a sale can be completed. That’s up from one in twenty, which was the norm several years back. Question: Why the change? What kinds of problems do you run into?
Answer: There are numerous things that could have gone wrong.
Question: Can you give us an example of a disaster story when something was wrong with the title?
Answer: A title had been “quit claimed” (transferred) so many times within a family that, when the title was finally looked at during escrow, it turns out that the “owners” only owned 75% of the house! And that’s not the time to find out something’s wrong with the title.
Question: How can you avoid that disaster?
Answer: Get the title looked at before you put your house on the market! At Gateway, we call that a “Smart Start” title exam. In a week, you will receive a report. Gateway can help review the report and explain how to straighten out any problems. Just as buyers are pre-approved, this is a way to “pre-approve” the selling of your home. Question: How much does it cost to review the title?
Answer: Normally $375. With Smart Start $275 because we have more time, no emergencies. Question: Do you have to pay again at closing?
Answer: No.
Answer:
Don’t wait until the last minute to find out if your title is okay. It’s smarter to start early. Call Gateway Title Agency to find out more about Smart Start. You can also get this very helpful, free kit that tells you all about selling your home. And you can even sign up for a free class on how to sell. My thanks to Rachel Torchia.
For more information on this topic, call Gateway Title Agency 1-800-357-0567 ___________________________________________________________ HOW TO BUILD A GOOD CREDIT SCORE
Air date: 5/4/03 You’ve always paid your bills on time. Your credit report should be spotless. So how come you’ve just been turned down for a loan? Your credit score may be low, without you even knowing it! Even if you did nothing wrong! Here to teach us how to improve our credit health is Cherie Dimmerling from the Mortgage-Doctors.com. Answer: All credit reports contain identifying information – basically, who is the subjects of the report. They can also contain public record information, which will show if you have ever been bankrupt or sued. The meat of the credit report is the information on your credit history. Answer: A credit score is essentially a summary of a person’s credit worthiness. It gives lenders a streamlined prediction of your credit risk. The credit score is based upon many items, including if you pay your bills on time, ever had a bankruptcy, ever been sued, and if you’ve used your credit wisely.
Answer:
Question: What is considered a “good” credit score? Answer: Scores range from the 300s to the 900s, but each extreme is rare. Most people fall into the 600s and 700s. Question: Is it true that any time your credit is checked your score goes down? Answer: I hear that all the time, and it is not true. When you are shopping around for credit, multiple inquiries within 30 days of opening an account are ignored because you used them to open an account successfully. If you do not open an account and have an excessive number of inquiries, it indicates that you are being turned down, so you score can drop a bit. If you get turned down after a few tries, stop shopping! In fact, if you are not sure if you qualify, call us. We are on line with over 200 lenders locally and nationwide. Question: What should you do if you've been turned down for credit?
Answer: Check your credit report. Find out what’s wrong. If you need a loan, go to a mortgage broker. For example, we work with 200 lenders nationwide and often can hook people up with credit. And we can help people improve their credit rating so it’ll be easier to qualify for credit. What’s your credit score? Don’t wait to find out until you need a loan. Cherie and the Mortgage-Doctors have kindly offered a free credit report to Golden Opportunities viewers. They’ll even review it with you, and they can offer tips on how to raise your score if there are any problems. All for free! For more information on this topic, call Mortgage-Doctors.com 1-877-236-3034 ____________________________________________________________
HOME SELLING SCAMS
Air date: 5/18/03 When you sell or refinance your home, you’re supposed to get the money. But there are scam artists out there trying to trick you out of your money. Your best protection is knowledge, and here to alert us to home sale snares is Bridget Connor, Senior Title Consultant for Gateway Title Agency. Answer: Yes. This particular scam often occurs in urban areas when elderly people are selling a house. Question: That’s horrible. Now, you mentioned to me earlier that last year there was a scam involving “flips.” Can you explain what to watch out for regarding that? Answer: Say you are selling your home for $50,000. This scam involves a buyer who would purchase your home for that amount, and then turn around and immediately sell it for $75,000.
Answer: Sometimes a buyer can believe they are pre-approved—they even have documentation with those words on it!—but they really are not. The small print says, “subject to verification,” and the loan might not close. Question: If your buyer has cash, is that less susceptible to scams?
Answer: No. Sometimes cash buyers talk the sellers out of an “earnest money deposit.” In other words the seller is trusting that the buyer has the cash.
Question: One more scam - the re-finance scam. Tell us about that one.
Answer: Mortgage broker/home improvement contractor talk home owner into refinancing the home, then take the money for home improvements. The contractor disappears with money, you owe lender, no improvements made. Question: How can you avoid being a victim of such scams? Answer: Know who you are working with, especially your title company. At Gateway Title, we will NOT close a sale where the price of the house is raised for “home improvements” or the deed is being passed on to a third party. There are some nasty people out there. When it comes to scams, knowledge is power. Before signing any sale, loan or home improvement papers, check them out. Contact the Better Business Bureau. Talk to a reputable title company and ask for help. If something smells fishy, trust your nose. For more information on how to protect yourself from scams, attend one of Gateway’s free classes, and get Gateway Title’s free home sale kit. The number’s up next. My thanks to Bridget Connor. For more information on this topic, call Gateway Title Agency 1-800-357-0567 _______________________________________________________________________
DIFFERENT TYPES OF LOANS
Air date: 5/25/03 When it comes to mortgages and loans, most of us think our choices are basically chocolate or vanilla. But in the loan soda shoppe, your real options are more like the wide Baskin-Robbins variety. Making the right choice is like adding hot fudge, it can make your richer. The wrong selection can cause you to lose interest. Here to help explain the menu is Cherie Dimmerling from the Mortgage Doctors.
Answer: Conforming loans have some of the best rates available. To be eligible, you need a 620+ on your credit report and full income and asset documentations. A credit score of 600 or more is generally needed for stated income loans. The higher your credit score, the better the rate you will receive. Question: Next on your list is a LIBOR loan. What’s that? Answer: All US loans based on LIBOR (London Inner Bank Offer Rate). These are fixed for a point in time. The spread is specifically higher. Float with 30-day You generally need a credit score of 650+ for a LIBOR loan. These have interest-only payments. You only pay on what you owe. They have the lowest rates available and an adjustable, but stable index. This is unlike the US Prime rate (remember the 1970s). Question: There are fixed rates that don’t change and adjustable rates that do. How can you tell which is right for you?
Answer: Getting a fixed rate that doesn’t change is best if you plan on keeping your home at least half the life of the note. An adjustable rate (ARM) is fixed for a time, then it may adjust. If you maintain excellent credit, that will affect the adjustment. There are fixed terms in the lengths of 1, 2, 3, 5, 7, and 10 years. You get a better rate compared to a 30-year fixed loan. This is good for those who plan on keeping their home shorter than half the life of the note. Also good for those who expect their circumstances to change in the next few years. For instance, an ARM is appropriate for young couple with first home—they know in a few years their circumstances will be different. This is also appropriate for seniors who plan to downsize or move south in a few years. If you will be in the home for a fixed period of time, and ARM can let you enjoy a much lower rate. Question: You hear a lot about consolidating our debt to one payment. Is this a good idea? What does it entail? Answer: Revolving debt is converted to an installment. This lowers the total monthly payments if you have credit card debt. You gain tax advantages. You may raise your credit score by paying off credit cards.
There’s a loan out there that can fit your needs. If you need help figuring out which option is best for you, or if you already have debt and would like to know if you’re paying too much, give the Mortgage Doctors a call. Or log onto Mortgage Doctors.Com. They’ll provide to Golden Opportunities viewers a free mortgage or debt analysis. For more information on this topic, call Mortgage-Doctors.com 1-877-236-3034 __________________________________________________________________________
HOW TO PREPARE FOR A SUCCESSFUL REAL ESTATE CLOSING
Air date: 6/22/03 It ain’t over til it’s over. You may have found a buyer, agreed on a price, and signed a contract, but you haven’t bought or sold your home until the deal is closed. Lots of problems can happen at closing if you’re not prepared. Rachel Torchia, owner of Gateway Title, is here to help us open the doors to ensure a smooth closing.
Question: We’ve talked a lot about the various aspects of selling a home. But today we’re going to focus in on one particular part of the home-selling/home-buying experience: the real estate closing. Rachel, you’ve made a list of some tips that buyers and sellers should follow to ensure a smooth closing. Would you go over them with us?
Answer: Sure. First, both the buyers and sellers should bring photo identification to the closing with them. Schedule the signing of the closing during business hours at the title company; therefore, if there are problems with the closing, you will be able to get hold of the appropriate people. And schedule ENOUGH time. The buyer will need 45 minutes to an hour. The seller will need 15 to 30 minutes. If needed, get a babysitter so that the escrow officer has your whole attention. Take the time to read, review, and understand what is written in the purchase agreement. That is the instruction sheet for the closing! Sign your signature the same way throughout all the documents. Buyers and sellers should make decisions about the utilities themselves by this time. Question: Is there anything specifically important for the buyer to be aware of?
Answer: Read and understand the loan papers and the terms of their mortgage. Provide a Homeowner’s Insurance Policy and a one-year paid receipt. We suggest bringing the truth in lending and any good faith agreements to compare how they compare to the lender’s fees on the settlement sheet. Make sure that the funds they bring are certified—that’s a MUST in Ohio. Private checks are not accepted. Occupancy permits should be taken care of before the closing, or we can’t transfer the title. Question: What about the seller?
Answer: Call the escrow officer ahead of time and ask for a copy of the HUD (settlement statement). Look it over. If you have an equity line of credit or a bridge loan, get all the account numbers to your escrow officers. Many don’t know that these are liens on the house. Be aware that you will NOT receive funds the day you sign the papers. They become available 24 hours after the papers are filed with the county. If you want the funds wire transferred, have the deposit slip or instructions with you. The point of sale inspection, if required by the municipality, is the seller’s responsibility.
Coming “close” to a successful closing isn’t good enough. Rachel’s tips will help assure that your purchase or sale comes to a painless conclusion. To attend a free class that covers closings, or to receive a free home sale closing kit, call Gateway Title Agency. My thanks to Rachel Torchia. For more information on this topic, call Gateway Title Agency 1-800-357-0567 _________________________________________________________________
SHOULD YOU "FOR SALE BY OWNER"?
Air date: 7/20/03 Summertime is prime time for garage sales. It’s also prime time for folks who want to sell their whole house. If you’re planning to plant a for sale sign on your lawn, are you prepared? Here to give us some tips for home sale success is Bridget Connor of Gateway title Agency.
Answer: There are many reasons why people decide to sell their home themselves. Some of them include:
Question: But selling your home isn’t a simple process. What duties should sellers be willing to do? Answer: First, sellers should have patience. It can take 80-100 days on the market before a buyer is found. Sellers should be willing to have Open Houses and to screen calls/make appointments to show the house. Question: What tips should people selling by owner follow?
Answer:
Question: Should you ask a buyer's ability to pay?
Answer: Yes. Ask for pre-approvals/pre-qualifications. You don’t want to learn months later that the buyer can’t get the loan. Question: How long can you expect it to take?
Answer: 80 - 100 days. For more information on this topic, call Gateway Title Agency 1-800-357-0567 __________________________________________________________________
BANK VS. BROKER
Air date: 7/20/03 Home loans come in many flavors. Most banks offer chocolate, vanilla, and maybe strawberry. But a mortgage broker can offer 200 low rate flavors. Here to give us the scoop on how to save money on a home loan is Cherie Dimmerling, from the Baskin Robbins of mortgage brokers, the Mortgage Doctors.
Question: What's a mortgage broker?
Answer: A broker finds the best loans for customers by working with 200 lenders across the country.
Question: Why do people go to brokers rather than to a bank?
Answer: Banks have a limited variety of loan products and therefore try to fit you around their available loans. Brokers have almost unlimited loan products and will fit the loan around you. Answer: Most banks will say no to someone with less than perfect credit. A broker will work to find options for such an individual.
Question: What about someone with GOOD credit who happens to be self-employed? Answer: These are the number one customers of brokers. Brokers have many programs available for “exceptional customers who need exceptions.”
Question: Are there any differences in the rate and cost of loans that come from a bank versus a broker? Answer: The bank may have a lower cost up-front, but the rate will be higher and the loan will cost you more in the long run. Question: Can you give us an example? Answer: Sure. Suppose you are looking for a $250,000 loan over 30 years. Question: Will you get as much service, counseling and attention with a broker as with a bank?
Answer: More. Brokers only handle mortgages. That’s our job. Banks are involved in lots of things. We’ll consider whole situation and recommend loan package that fits (e.g., maybe 15 instead of 30 years).
Question: Can you use a broke for refinancing as well as for an original loan?
Answer: Yes. Question: How long does it take to get a loan completed from a bank vs. a broker? Answer: Bank 60 days, broker 2 weeks. For more information on this topic, call Mortgage-Doctors.com 1-877-236-3034 ___________________________________________________________________________ WHEN TO PAY OFF A MORTGAGE AND WHEN TO KEEP IT
Air date: 8/17/03
Getting to burn those mortgage papers is wonderful, right? It’s certainly a relief. But some financial experts say having a mortgage in your golden years may add more silver to your pocketbook. Here with some pearls of wisdom is the minder of the mortgage treasure chest, Cherie Dimmerling, from the Mortgage Doctors.
Answer: Depends. If your investments are doing well, you may not want to liquidate them to pay for a home. And there are tax benefits: points and interest are tax deductions. Question: Do these tax breaks apply only to a mortgage on your personal residence?
Answer: No. There are also tax breaks on second home and investment properties.
Question: Is there any advantage to actually having a mortgage instead of having it paid off, with respect to taxes?
Answer: If you have a finance, refinance, or purchase of a home, the points that you pay as well as the interest paid during the year are a tax deduction. This applies to your primary residence, second home, and investment properties. Please remember to consult your tax advisor. Question: One has lots of equity in his/her home. Would I want to touch that equity?
Answer: Let me start off by saying when I would NOT utilize your equity.
I would, however, utilize equity in my home for some other reasons. Question: What are some of those reasons?
Answer: Paying off other, higher rate debt such as credit cards, car loans, or personal loans. These are called debt consolidations. They normally save the borrower hundreds of dollars per month. However, you do have to be careful: you must not run those debts up again or you will be in a worse position.
Question: Can you give an example?
Answer: Yes. Current: Question: Any other reason to use the equity in your home?
Answer: Home improvements are also an appropriate use of your home’s equity as some can increase the value of your home. However, do not assume that all home improvement WILL increase your home’s value. We will discuss that subject further at a later date. For more information on this topic, call Mortgage-Doctors.com 1-877-236-3034 __________________________________________________________________ DEMYSTIFYING YOUR REAL ESTATE CLOSING
Air date: 8/24/03 In a good novel, everything comes together at the end of the book. In a good real estate deal, everything comes neatly together at the closing. But a closing ends up being more like a bad mystery novel with unsolved problems, if you’re not prepared. Here to help assure your home sale closing has a happy ending is Rachel Torchia from Gateway Title Agency.
Question: A real estate closing can be confusing to those not familiar with the process. What is the first thing you should learn to demystify the process?
Answer: The first thing to understand is what “escrow” is and what will be expected of you in the closing process. Escrow makes sure that all requirements of the purchase agreement and the lender’s instructions are met. The escrow officer is a disinterested third party who cannot take sides or relay information from the buyer to the seller or vice versa. He/she also collects all funds and documents. Any verbal agreements do NOT exist in escrow. Everything must be written down. Question: What happens when you meet with escrow? Should you bring anything? When should you meet with the escrow officer?
Answer: Buyers and sellers do not meet with the escrow officer at the same time. When you come to sign papers, have your picture I.D. with you. If you are the buyer, have your new insurance in place before closing. Appointment scheduling can’t happen for the buyer until the lender gives the escrow officer the complete loan information. The seller can make his/her appointment after the deed is prepared unless the buyer is going through a program where the seller gives credits. Then we again must wait for the lender to send the loan information.
Question: Does the seller get the money immediately following the closing?
Answer: The seller will not get the proceeds for 24-48 hours after the transfer of the title takes place.
Question: So your real estate closing doesn’t have to be stressful? Answer: No, it doesn't have to be stressful if you do your homework. Ask your title company questions to keep things clear before the transfer of title. The escrow officer must remain a disinterested 3rd party and follow only written instructions signed by all parties involved.
When it’s time to bring your home sale to a storybook ending, be prepared. Gateway Title “wrote the book” on successful home sales. And they’re making it available to our viewers, for free. For more information on this topic, call Gateway Title Agency 1-800-357-0567 _________________________________________________________________
REMODELING PROJECTS THAT PAY BACK...AND THOSE THAT DON'T
Air date: 9/14/03 Remodeling the kitchen, or adding a bath, can improve your comfort. But the costs can be significant. Will you get your money back when you sell the home? Sometimes yes, sometimes no. Here to tell us which renovations will pay off, and which will just make you pay up, is an expert whose advice always pays off, Cherie Dimmerling from The Mortgage Doctors.
Question: If you make the investment to remodel your home, can you expect to get repaid if/when you sell your house?
Answer: Recouping your remodeling investment may be your goal when you sell your house, but when it comes to resale value, all home improvements are not created equal. Kitchen remodeling projects and bathroom additions almost always pay back 90 percent or more of their costs. However, finishing a basement usually pays back less than 15 percent. Other improvements fall somewhere in between. Question: Can you give us some examples of remodeling projects or additions and whether or not they would pay off during a home sale? Question: What determines the payback value you’ll receive?
Answer: Payback value depends heavily upon the real estate market and the prevailing property values. Also, consider your neighborhood. If you remodel your house to twice the size of the other homes on the block, it is unlikely that you will be able to sell at double the price. Large improvements involving adding or upgrading space usually add a good deal of value. And a lot of the payback value depends on the cost of the remodeling project. If you can do the job yourself for less than the going rate of construction, you may be able to benefit a great deal. Or, if you are financing your home improvements, the best time to apply for a loan is when interest rates are low. The less you pay to borrow money for the job, the less the total cost of the renovation. Kitchen renovations, $3,000. A new bathroom, $6,000. For more information on this topic, call Mortgage-Doctors.com 1-877-236-3034 ___________________________________________________________________________
|
|