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The Pros And Cons of Using ‘We Buy Houses’ Companies

house buyingIf you decided to sell your home today, what would you do first?

Chances are you would find a reliable real estate agent in your area to help you find a good buyer and advise on the process.

That’s pretty much what many people do, but as the average time homes remain in the market keeps increasing, more and more are turning to we buy houses companies.

They are basically called cash home buyers, and they can close a house deal even at short notice.

So, if you are months overdue with your mortgage repayment, are facing foreclosure, have a huge pile of debts or just need to raise a significant amount of cash quickly, then the best way out is be selling to these companies.

These buyers do not depend on banks or any other type of lending institution for funding. They have cash on hand that enables them to make a quick purchase to any given property.

They can close a sale in just a few days and so, if you are facing repossession for instance, then it is the best option you may have.

Also, if you are buried in massive debt, the only way out is to make a bold move. In this situation, you may be losing your home, but what really matters is you taking back control of your life and starting fresh.

However, if you are really bent on staying in your home, you can find a real estate investor who offers the option to sell and rent back.

Another appealing thing about dealing with we buy houses companies is that there’s no real estate agent involved in the deal.

That means you will be able to save thousands of dollars on commissions. process of house buying

Cash home buyers ideally purchase homes, regardless of their current condition and that means you don’t have to bother with repairs if your home needs a makeover.

Most people say that the downside of selling to cash home buyers is that you do not get the fair value of your house. But try selling to anyone today, and it’s highly unlikely that you will get an offer with an asking price that’s based on what you think the house is worth.

In a market with few buyers and many sellers, the buyers have the power to dictate the price and the only way you will be able to sell quickly is by dropping the asking price.

However, in my opinion, there’s no reason to be afraid of listing your home at a low price. It might even work to your advantage.

Lowering the asking price can get you multiple offers, which in turn should drive up the price of your home a little bit, and giving your back the negotiating power.

There’s very little danger in pricing low, particularly in this slow housing market.

The danger lies in overpricing and picking a real estate agent solely based on a high valuation.

More Information:

US Gov – Mortgages

Foreclosure Law in the USA

Foreclosure Law – BricksandClicks.net

Selling Your Inherited Home For Cash – Is It A Good Idea?

sell home for cash

Before we dive in, we are going to be completely honest with you:

Selling your house for cash may not be an excellent option.
This goes for your own home or even an inherited one

 

Yes, that’s right, if you own a home that’s in perfect condition and have plenty of time, selling it for cash may not be the best option.

You will probably get a better deal by selling with a real estate agent and waiting however long it takes to sell on the market.

However, if you do not meet the requirements mentioned above and need to sell fast, there are numerous benefits to selling to cash buyers. Since your time is valuable, we will begin with the most important advantage.

Cash home buyers buy fast!

Do not underestimate the value of this.

Time is money, and that rule is no exception in real estate. So selling your inherited home for cash may just be a good idea!

The personal time that gets gobbled up when trying to sell is nothing compared to just owning the property.

The taxes, insurance, maintenance, and utilities can easily set you back thousands of dollars over the many months it takes to sell a home in a regular manner.

All that money, however, could stay in your pocket if you use a real estate investor.

Avoiding frustrations is yet another benefit of selling to cash home buyers; especially if the house in inherited.

We could literally list dozens of ways selling a home could be frustrating, but we are going to mention some of the most common.

Fixing your house, staging it, keeping it in a show-ready condition, dealing with picky buyers, having to leave the house on short notice for a showing, window shoppers, paying for a home you don’t live in, nosy neighbors, negotiating with potential buyers, worrying whether the home will ever sell, people backing out of contracts, real estate agents commissions and the uncertainty of it all are some of the reasons why most find it stressful to sell a home the conventional way.

Last but not least, cash is king!

Seriously what would you rather have? A property that is worth $400,000 or money in the bank? This is even more so with an inherited home – this is surplus! & it may not be local to you.

Of course, you would rather have the latter as you would do anything you wish with it. If you have a home, you need to sell first to get the money.

The most, however, you could hope to get after selling a $400,000 home through a real estate agent is $360,000, and that is if you did not have to make any house improvements and sold for full price.selling house for cash

Just do the math, the agent’s commissions and the closing costs add to $40,000. Also, chances are you will have a couple of thousands in repairs and forced to negotiate down a few more and pay the home buyer’s closing costs.

That means you will likely get around $350,000 for your $400,000 home.

As mentioned, Cash is Kings and so, grabbing a quick cash offer from the real estate investor is most likely going to be your best option.

The time and money saved plus the frustrations you avoid by selling to a cash home buyer certainly make it worth it to sell for cash. Selling an inherited home for cash could just be the right thing to do!

Further Reading & Information:

https://www.loc.gov/law/help/inheritance-laws/unitedstates.php

https://www.loc.gov/law/help/inheritance-laws/unitedstates.php

https://www.usa.gov/auctions-and-sales

https://www.treasury.gov/services/Pages/auctions_index.aspx

https://www.treasury.gov/auctions/treasury/rp/

https://www.govsales.gov/govsales/govsales/

http://bricksandclicks.net/pros-cons-using-buy-houses-companies/

What is Staging a House?

staging a home

Staging a home became a common trend in the world of real estate.

If you are planning to sell your home, in most locations, just having the for sale sign up and hoping for the best is not enough.

The real estate market has been sluggish, and homeowners need to do a couple of things to make the sale.

For sellers trying to create a good impression, home staging has become a good way of increasing the selling price of the home while reducing the selling time. Some of the things done by stagers include:

Advising removal of personal items that can make your home look crowded or cause a distraction to buyers.

Having personal photos on the walls of the home will mean the prospective buyers commenting about them etc… instead of the kitchen.

The furnishings of the home will be rearranged during staging to enhance the look of the room and make it look bigger.

If you have too much furniture, you should consider renting a storage building to store them in.

For rooms that are not occupied, rental furniture is used, and they must fit the style of the room, making it look more livable.

Having large open floor space can look big, but it makes it hard for the buyer to envision their furniture in the home and have a rough idea of what will fit where.

Home staging will focus on arranging the furniture and décor with the intention of showcasing the home.

The process can sometimes cost little to no money.

There are some cases when you have to make a financial investment, like painting, improving landscaping, and adding plants and furniture.

Real-estate professionals don’t see staging as decorating, but depersonalizing the home so as to make it easier for the potential buyer to imagine themselves living in it.

There are two options when it comes to staging a home. Doing it on your own and hiring a professional to do it for you.

One benefit of hiring a home staging service is that they have their own supplies of furniture, art, and rugs etc which means you will not have to spend a lot of time looking for the right items.

They bring a lot of experience.

You can expect to spend a couple hundred dollars on this service for a simple home staging. The pricing will depend on the size of your home and the work that needs to be done on it.

You can decide to do it on your own, but this can sometimes mean investing time and effort in researching and finding the right items to use.

staging a homeThe mistake you should avoid making is being too personally connected and makes it hard to be objective.

But you should remember that this is no longer your home but a product of the market.

Staging will involve working on both the interior and exterior of your home.

Exterior appeal is important because it will be responsible for the first impression.

If you have no idea on what to do, consider getting a professional to help you out.

Further Reading:

Top House Staging Tips

21 House Staging Tips – Houzz

House Staging Tips – Top Posts on Pinterest

Other Articles of Interest:

Foreclosure Law in the USA

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What Is The Foreclosure Law In The USA?

forclosure law USA

Foreclosure law offers the way for the mortgage lenders to take back possession and then sell homes when borrowers have defaulted on their loans.

Money collected from such a sale is then used in order to pay the balance owing on the loan, and a buyer that buys this home will be freed from the mortgage.

When the proceeds are insufficient in order to pay back the balance of what is owed on the loan, the original borrower will be held accountable for this shortfall.

They will also be forced to vacate the home.

However, from the viewpoint of most lenders, foreclosures are regarded as costly and slow. For this reason, lenders are as equally motivated as a borrower to make sure that the loans are paid before foreclosure becomes necessary.

For this reason, lenders are as equally motivated as a borrower to make sure that the loans are paid before foreclosure becomes necessary.

In order to gain an understanding of foreclosures laws in the U.S., the nature of the mortgage needs to be considered.

A mortgage is utilized when a potential home buyer needs to borrow the purchase amount, or when a homeowner has equity in the property and would like to borrow a specific amount in order to conduct home improvements.

In each case, the bank will lend the money which is accompanied by the borrower signing the mortgage document that provides the bank with a security interest in regards to the house.

To explain this further, the home is regarded as collateral for this type of loan. If the borrower stops or is unable to keep up with the loan payments, then the bank will take back possession of the “collateral” through a process known as foreclosure.

 

The Process Of Foreclosure

 

The process of foreclosure will be initiated when a person with a loan or mortgage on their house is unable to pay the due amount.

After a set amount of time, a lending agency will begin a procedure that involves seizing the property.

This is followed by auctioning the home to try and recoup the amount that is needed.

This process is in most cases costly and lengthy for financial institutions but is a way to provide some or all of the income required. When a default on payments occur, the lending agency or bank will typically give the borrower a specific period of time in order to catch up the amount owing and to ensure all payments are up to date.

Once defaulted payments, extend past the time limit, the home will then be placed into a foreclosure process. This generally starts off with a publicized notice of this default, so that the procedure is able to progress onto the following stage.

If in this time, the borrower finds a way in which to reinstate their loan by paying the lender the defaulted amounts in the grace period of the state laws, the borrower is able to stop foreclosure from progressing further.forclosure law

The homeowner will be permitted to sell their home to another buyer within this period and the income can then be used to settle the loan amount.

If none of these steps are followed through, the home will then be sold at an auction under normal circumstances.

The bank or the lending agency may decide to take back ownership of the home and then resell the house through the housing markets.

Reference & Further Reading:

Wikipedia & Forclosure – https://en.wikipedia.org/wiki/Foreclosure

NOLO – Various States & the Law – https://www.nolo.com/legal-encyclopedia/state-foreclosure-laws

Legal Dictionary – http://legal-dictionary.thefreedictionary.com/foreclosure

Different Types of Mortgages – http://www.homebuyinginstitute.com/mortgagetypes.php

 

Other Articles:

Staging a house –http://bricksandclicks.net/what-is-staging-a-house/

 

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