News By Tag
News By Location
Baltimore and DC home sellers sometimes have to shell out money to sell their home
There are many Baltimore and DC property owners wishing to sell their home but discovering they have to pay to close property deals.
“Many property owners don’t realize there are several factors when selling property,” said Eric Skeeter, Pillar Property Group.
Well, there can be a couple of explanations you should be aware of before throwing in the towel on selling your property. If you have had your property on the market for while wishing to sell, Pillar Property Group has some advice.
Why would you pay to sell your home?
1. Not enough established equity in your home. This means if you have owned your home less than two years and took out a mortgage greater than 90% of the purchase price most likely you do not have enough equity to pay closing costs associated with the sell of the property.
2. Declining real estate market. This point has been stressed in the media, but there are strong signs of turnaround in this regard. A point to remember to consider is that not every home appreciates in value every year.
3. Foreclosures and newly constructed subdivisions in your area of Baltimore will determine if you have to pay to sell your home. People will gravitate to newly constructed townhomes and this can decrease the value of homes for sale in the general area. Thus, owners are left selling their homes for less.
4. The dreaded unexpected repair after the buyer performs the home inspection. If you have owned the property for numerous years, a home inspection can turn up some undisclosed problems or home deficiencies that run into thousands of dollars to fix. This includes pest inspections.
How do you fund to sell your home?
1. Some sellers tap into their retirement accounts or borrow from family.
2. Some sellers take the hit and shell out hard cash to get out of the home or the neighborhood.
3. The latter two explanations are self explanatory. Some sellers ask for a short sale. With this alternative, you have to tell the lender your financial situation and request them to accept less than you owe. You have to be upfront with the lender with your current financial status.
“This option takes much effort and time for the homeowner. It is best to get someone to guide them through the process so it does not become too tiresome for the homeowner and they stop the process in midstream,” said Skeeter.
What does the short sale process involve?
1. You must contact the loan servicing center of your mortgage provider. Loan servicing centers are not banks. They are basically collectors of your payment on behalf of your mortgage provider.
2. To let you know, they will want documentation of current financial situation. This will involve you submitting a financial statement to the lender. Now, you are asking yourself “what is a financial statement?” Simply, it is the total of all your bills not excluding what you pay in groceries and gas.
3. Placing the home on the market, finding a buyer, and getting the offer that is needed.
4. Dot every ‘I’ and every ‘T’ in the paperwork involved because there is a good deal of it.
5. Finally, you wait for the approval process from the interested investor and lender.
“There are many people in the Baltimore region asking me for tips on how to sell their home that has been on the market for a bit,” said Skeeter. Pillar Property Group would like to address this issue for home owners wishing to sell their property.
How to get them look and then buy your property?
1. Research with realtors of type of buyers that are looking at homes in your neighborhood.
2. Address your minor repairs and any cosmetic issues you might have with the property. Buyers like to see things clean and smell fresh paint. Also, you should consider purchasing pieces that can help stage your property. The latter does not need to be an expensive endeavor. It can range from artwork to slipcovers over your furniture.
3. Network with mortgage agents. These individuals know all the programs available to buyers. Get their business cards if you are impressed with their wealth of knowledge. Your buyers will appreciate your inside knowledge and the mortgage agents will appreciate the business.
4. Set a date for an open house for the showing of your property. Be sure to serve refreshments. Make it fun by having some sort of raffle at a specific time for the attendees of the open house. People like free food and love prizes not too hard of a sell for buyers.
“I have seen time and time again many property owners are in a situation where they have to sell their home and offer this helpful tips every time. Many come back and thank me after the sell of their home,” said Skeeter.