Zillow Looks to Become the “Amazon” In The Real Estate

Amazon has seemingly taken over the world retail market, infiltrating nearly every industry from books, kitchen supplies, entertainment to food. One area left uncharted by Amazon however, is real estate. Today there is a race to the top to see who will become the ‘Amazon of real estate.’ Two of the leading players in this race are Zillow, and Amazon itself. Traditionally, home sales were managed by realtors who, representing the seller, handle all the paperwork, the listing, and negotiate with the buyers. Upon sale, the seller pays the realtor a commission fee. Now however, Zillow is looking to fundamentally change the way homes are sold.

 

 

How Zillow Offers Works

With the launch of Zillow Offers, with just a few clicks, homeowners can sell their home directly to Zillow. Through this, sellers receive an offer on their property within two days. The idea behind this is that sellers can simply work directly with Zillow and be done with it rather than going down the traditional route which can take several months before a sale is finalized.

 

Zillow plans to use this service to buy and sell homes to generate revenues. With this, owners sell directly to Zillow for a service fee. That fee will vary based on the property. The appeal of this service is the simplicity. Zillow Offers gives you an immediate offer and will buy your home without delay or hassle. Sellers will not have to pay to stage their home, conduct open houses or spend time finding a listing agent. The site also offers a side by side comparison of estimates if sellers sold their home the traditional way.

 

Thus far, Zillow has purchased 2,300 homes through this service and has sold 1,200. While the company has largely lost money up to this point, the potential revenue is in the billions if they can work out some of the kinks. As it stands right now, the National Association of Realtors estimates that 5.4 million homes will be sold this year. At an average price of $270,000, managing to capture even 1% of those would yield over $14B in revenue.

 

Currently, Zillow is not making money off Zillow Offers as start-up costs are eating all their profits, but it expects to make 4-5% per property before interest going forward once the activity rises to expected levels.

 

 

Implications for the real estate market

How would this change the current real estate market? Ask traditional book sellers how Amazon disrupted their market. Right now there is a sizeable share of the market to gain. Home sales rack up over one trillion in value in a given year. That potential is similar to what online retailers saw in the 90’s that enabled Amazon to takeover the eternity to the retail shopping market.

 

Perfecting this service would revolutionize the real estate market by taking the entire process of buying and selling a home online. Similar half-steps have already begun. Quicken Loans transformed the buying process by taking the daunting task of getting a mortgage loan online. Hence the phrase, “Push button. Get mortgage.” This would have huge ramifications for the real estate industry all the way down to displacing real estate agents.What would become of real estate agents? How would brokerages compete with this service?

 

 

Amazon and Real-ogy partnership rivaling Zillow

Speaking of being the ‘Amazon of real estate,’ Amazon itself is making moves in this direction. This summer revealed that Amazon and Realogy are teaming up to take on Zillow. Realogy is the largest U.S. residential brokerage that matches homebuyers with real estate agents through a service called Turnkey. Once Turnkey matches buyers with Realogy’s agents, upon closing on said home, The Amazon Move-In benefits offers up to $5,000 worth of Amazon Home Service, courtesy of Realogy.

 

According to the Realogy CEO Ryan M. Schneider, “Realogy’s great affiliated agents serve their clients during one of the most important moments in their lives, and Amazon’s services and products can transform that moment to make it rewarding in a way no one ever has before.”

 

Services offered by Amazon Move-In include; deep cleaning, furniture assembly, picture hanging, shelving installation, TV mounting and more. Turnkey is currently available in 15 major US cities. By contrast, Zillow Offers is available in 21 markets.

 

 

Conclusion

While both Zillow Offers and Turnkey seek to greatly simplify the process of buying homes, the two are different in many ways. As it stands,Turnkey is solely about pairing buyers with agents, helping them purchase their home, and then helping them move in. Zillow Offers is strictly about buying and selling homes online. Though they have similar goals, their approach is different. However, it’s not beyond possibility that Amazon would venture into the buying and selling market eventually. For those are looking to sell their homes quickly and without hassle, Zillow Offers is likely the best fit. However, for those seeking to have the best home buying experience and get the most out of it with full move-in assistance, Turnkey is the place to go.

 

The digitization of the real estate industry has been slowly gaining momentum ever since Quicken Loans made getting a loan online possible. Now other names like Zillow and Amazon are diving into the housing market to become the new ‘Amazon of real estate. Although bigger companies can provide this service, smaller companies like National Cash Offer can provide you more cash for your home!

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source https://nationalcashoffer.com/zillow-looks-to-become-the-amazon-in-the-real-estate/

Top 10 Terms You’ll Likely Run Into In A Real Estate Purchase

When a person is looking to buy or sell a home or even if they have an interest in real estate some terms are specific to the market that a person needs to learn. These are some common terms to the real estate market that a person should be familiar with. If a person is familiar with these terms they will be able to understand the entire process and make it go smoother.

 

1. Adjustable Rate Mortgage

When a person is applying for a mortgage they can get a fixed-rate loan or they can get a loan that has an adjustable rate. The interest rates on the adjustable-rate mortgages may change throughout the loan. It can change at five, seven, or even ten-year intervals. This loan may be risky over the long run. Depending on the condition of the economy the loans may increase and a person would have to pay a higher rate. If a person is going to stay in the home for the long run they may end up paying a higher rate. This may be good for those that are going to stay in the home for a shorter duration as it may save them money.

 

2. Appraisal

To get a loan from a bank or a mortgage company to purchase a home the home will need to be appraised. The appraiser will assess the home and determine the value of the home and if the lender will be lending the buyer the correct amount of money. There are several factors they will look at to determine the value of the home. They will look at the property and the size of the property and look at the prices that similar homes are sold for in the area.

 

3. Closing Costs

In addition to the price of the home, there are additional fees at closing which are called closing costs. This amount will be between two and five percent of the purpose price. This amount does not include the down payment. Closing costs include additional fees such as taxes, processing costs, and title insurance. A seller may be eligible to help with the closing costs.

 

4. Fixed Rate Mortgage

This is one of the other types of conventional loans. This mortgage has an interest rate that will stay the same throughout the loan. It will not change. This is good for people that want to stay in their homes over the long run.

 

5. Contingencies

This term refers to specific conditions and the terms of these conditions being met for the sale of the home to be completed and the sale to be finalized. For the loan to be approved certain conditions must be met. The appraised value of the home also needs to be near the final sale price that the home is going to sell for.

 

6. Equity

Equity is another term for ownership. When dealing with real estate equity is the amount of the home that a person owns at a specific time. This is based on the amount of the principal a person has paid off on their loan. It does not include the amount of interest that was paid. The more equity a person has in their home the more reliable they will have with refinancing. Equity can be considered the market value of the home and the difference between the amount of money that is still owed on the home. For example, if a person borrowed $100,000 to purchase their home and they still have a loan balance of $50,000, the equity that they have in their home is $50,000.

 

7. Private Mortgage Insurance

Private mortgage insurance is the cost of the insurance that the buyer pays to the lender. This insurance will protect the lender if the buyer defaults on the mortgage and they are not able to pay their bill. There may be a period for this insurance. Some lenders require that the buyer pays this insurance until they have built up equity in their home. They may need to pay 20 percent of the equity to drop this insurance. This insurance is for the protection of the lender.

 

8. Title Insurance

This is another type of insurance that is required at closing and is often part of the closing costs. When a person pays for the title insurance they are paying for research on the public records of the home. This will make sure that the title is clear and there are no liens against it that can slow down the sale process. If there is a lien on a home this can lead to big problems down the road. This search is well worth it before the sale is completed.

 

9. Real Estate Agent

This is the person that has a real estate license and can help a buyer find a home they want to live in. They can also help a seller purchase their home. They will assist with the entire process up to the closing. A realtor is an agent that is a member of the National Association of Realtors. This organization has specific standards and an ethical code that all members must follow. All those working as an agent need to have the proper education before they get hired by a firm.

 

10. Principal

This is the amount of money that a buyer needs to borrow to purchase the home. As they make payments and pay off the principal amount they will be able to build up equity in the home. The principal includes the interest rate on the loan. This figure is used the help determine the monthly payment that the buyer will make on the home.

 

These are some of the common terms used in the real estate industry. If a person is looking to buy or sell their home they need to understand all of the terms to make sure they are educated about the home purchase, selling, and closing process.

The post Top 10 Terms You’ll Likely Run Into In A Real Estate Purchase appeared first on National Cash Offer.

source https://nationalcashoffer.com/top-10-terms-youll-likely-run-into-in-a-real-estate-purchase/

How long does it take to buy a home?

How long does it takes to buy a home with a realtor

With many real estate agents, closing the first transaction takes longer. The process is not easy and the duration vary from one realtor to the other. Each realtor will have their story about their first closing and the timeline is never the same. Closing should normally take 50 days after accepting a deal. This is the average time that is needed for a deal to move from contract to closing.

 

When it comes to listing, the national average time on the market before listing turns into a contract is four weeks. Buyers may tour different houses before they find the one that fits their aesthetics. The process takes 10-12 weeks for an average home buyer.

 

New real estate agents should not expect a commission for the first few months. However, if there is a home that is under contract for the first few weeks, there is an anomaly involved. The anomaly proves to be very rare. Many variables are involved to put an average on the time it takes for a realtor to close. The following are different factors that play part in a realtor making a close;

 

 

Cash vs. credit

Cash offers reduces the time taken to close. It may not always be an option for buyers. When buyers need a loan to buy a home, the process of buying can slow down. A mortgage pre-approval letter can be used to speed up the process. The letter proves to the seller that the buyer is a prospective party who is ready to buy. This helps the seller to get into contract with the buyer thus making it easier for the realtor to close.

 

 

Seasonality

There are factors that cannot be controlled, such as the tome of the year. Summer seasons record higher numbers of home ownership compared to winter. Real estate agents help to ease the process of home ownership to buyers. The process takes longer during winter and is fast during summer. The situation is better if the realtor wants to take chances and acquire experience instead of diving right into it.

 

 

Brokerage

The brokers that realtors work with may offer less or more lead generation opportunities. There are those who offer education opportunities that will help the realtor to improve their skills that will set and prepare them for their first sale. This goes hand in hand with finding a good mentor that the real estate agent can work well with them. A real estate mentor will guide the realtor in different aspects in the beginning stages of the career.

 

In real estate, it may take longer for an agent to make their first commission. However, once it is done, the realtor understands and appreciates every step of the process.

 

 

What realtors can do to speed up their closing

Waiting for a person to call you may take an eternity. Realtors can speed up this process by making lead generation a top priority. Here are a few ways realtors can use to market themselves and create lifetime connections with prospective buyers:

 

• Ask for jobs after finishing licensing exam. Putting yourself out there is the initial step of gaining new leads and getting clients

• Get high-quality business cards and hand them out. Potential clients are likely to remember you if you make a professional first impression.

• Hold open houses for other realtors at your brokerage. Being a team player is essential since you are being helpful and you are in a position where you can meet potential home buyers and sellers.

• Take advantage of every opportunity you get. Learning opportunities should be embraced as this increases knowledge and communication skills.

 

Here are pros and cons associated with realtors;

 

 

Advantages of real estate agents

• Direct access to listed properties

• Access to multiple listing service (MLS)

 

 

Disadvantages of real estate agents

• It is costly to get a license

• Payments are made through brokers first

 

 

How long does it takes to buy a home with a wholesaling buyer

Wholesaling is based on selling and buying of homes faster without making any repairs. Wholesalers get houses under contract, below the market value, and sells these houses or assigns the contract to other investors. Wholesalers sell the homes with cash offers of cash-like loans since there is limited time to acquire loans and there are no inspections or appraisals.

 

Every owner-occupied buyers are required to complete these items to get a loan, and this is the reason why properties are sold to other investors. The wholesaler does not need to use their finances since they use double close or an assignment of contract. Double closing ensures that the title company will utilize their money from the end investor to help the original seller. Therefore, the wholesaler does not have to take part in raising the case. The wholesaler only assigns the contract to the end investor, where the end investor becomes the buyer.

 

Here are pros and cons of wholesaling in real estate;

 

 

Advantages of wholesaling

• Eliminates need for formal education

• Ability to work with real estate deal scouts

• There are no membership fees

• There is an accessibility to unlisted properties

 

 

Disadvantages of wholesaling

• There are no associated benefits

• No direct access to real estate agents lock box codes

 

 

Take Away

Wholesaling real estate is an investment choice but being a realtor is a career path. The whole process of wholesaling takes longer than any traditional sale. Wholesalers indicate that you will get your money faster when you choose to sell through them. This is considered a marketing gimmick since the time takes longer from when you sign an assignment contract to the closing table. Wholesalers take longer to close than real estate agents. There are 30 more days in the process of wholesaling.

 

Showings are an inconvenience to all sellers. This is because people do not like when strangers are working in their homes looking at their stuff. However, going through a wholesaler should not mean that you will be saved from intrusion. People do not invest in homes that they have not seen. Showing should be done whether it is through a wholesaler or a real estate agent. This helps in the process of home ownership and increases the duration it takes to buy a house.

The post How long does it take to buy a home? appeared first on National Cash Offer.

source https://nationalcashoffer.com/how-long-does-it-take-to-buy-a-home/

What A Cash Offer Is In Real Estate and Why You Should Consider It

What is a cash offer in real estate?

It is an all-cash bid. This means that the home buyers want to purchase a home without taking a mortgage loan or any other financing. Cash offers are more attractive to sellers since there will be no buyer financing fail risk. There is a faster closing time when cash offers are provided.

Opendoor is one of the companies that uses cash offers by buying the home directly using a competitive offer. The only requirement is that the home ought to qualify as indicated in the website.

 

 

How widespread are cash offers?

They are prevalent in the modern world. Research from ATTOM Data Solutions indicate that cash sales accounted for over a quarter of all the condominium and single-family home sales in 2018 in the US. The data indicates that this was below the cash offer peak in 2011, which was 38%. However, it is higher that the pre-recession average from 2000 to 2007, which was at 19%.

The figures are different in every city. Research also indicates that metropolitan statistical areas with the highest share of cash offers in 2018 were Montgomery in Alabama, Naples in Florida, and Macon in Georgia with 54%, 53%, and 51% respectively. The collected data was among a set of 200 with at least a population of 200,000 and sufficient cash sales data.

 

The following instances render cash offers more common;

• When an investor is interested in the property

• When the buyer has sold their current homes and has sale proceeds to pull from to purchase their next home

• When the seller has approached an iBuyer about purchasing a home

• When the level of competition is higher and the buyer want to win and stand out when it comes to the purchase of the house

• When the property requires renovations and is attractive as a fix-and-flip home

 

However, it is worth noting that cash offers can come up in any transaction. If you are planning to purchase of sell a home, be aware of these offers and how they work.

 

 

How cash offers change the process of buying homes

Cash offers is different in buying and selling process as compared to mortgage. First, the process of using cash offers is faster since there is no need of applying for mortgage, documentation, or underwriting. In such as case, the buyer does not require an appraisal. However, buyers need to take care of the title policy and insurance, provide proof of funds, and sign closing documents. Experts say that closing can be done in as little as 14 days while using cash offers.

 

 

Other ways of how cash offers is different from other ways.

 

 

Contingencies

Cash sales do not require more contingencies as other forms such as mortgage. There is no need for financing contingencies as well as sale contingencies. However, buyers may require an inspection contingency because this will indicate that the home is safe and no extra cash will be required for repairs or renovations.

 

 

Appraisal

Appraisals are normally a requirement from the lenders. Therefore, since are no lenders in cash offers, a buyer will not have to worry about appraisals. There are instances when the buyer may want an appraisal especially if it is an investor who is interested in ascertaining guarantee returns.

 

 

Closing

The simplicity of the closing process in cash offers is evident. Buyers will need to sign title deed and settlement statement, hand over the money, and receive the keys to the new home. Paperwork reduces significantly when there is no financing drag. Additionally, the costs of closing are lower because of the lack of lender fees that are attached in the process of buying.

 

 

Escrow and title

Buyers will require title and escrow companies to handle the transaction. But, buyers tend to have more leeway in choosing the parties without involving lenders. Looking at different companies helps buyers to compare fees and decide on which company to settle for to handle the transaction.

 

 

Considering cash offers when buying a home

Just because the buyer has the ability to purchase a home using cash offers does not mean that the move is right. Cash offers has both advantages and disadvantages.

Here are some of the advantages and disadvantages that should be kept in mind as you decide;

 

 

Advantages of making cash offers

• Sellers have more confident

• Faster closing period

• Credit score is not a factor

• No need for home appraisal

• No interest payment and thus buyers can save money over time

• Reduced paperwork and documentation

 

 

Disadvantages of making cash offers

• A significant amount of money is needed

• It limits liquidity

• Buyers will not have the ability to utilize mortgage-related tax deductions

 

Buyers ought to consider the general competitiveness of the market. Cash offers may increase when there are more buyers interested in buying. Buyers should also not mistake the cash offer as all the money that will be required. There are additional charges required such as cover property taxes and expenses for moving.

 

 

Considering cash offers when selling a home

Sellers who are in an affluent market or locations that attract investors may encounter cash offers along the way. Cash offers are offered by iBuyers, investors, retirees, previous home owners, and wealthy buyers. The following are the advantages and disadvantages associated with cash offers that sellers should keep in mind;

 

 

Advantages of accepting cash offers

• No risk of buyer financing fail

• Faster closing process

• No need for an appraisal

• The seller can avoid some contingencies

 

Disadvantages of accepting cash offers

• Might be lower than other offers

• Buyers are not vetted

 

 

Conclusion

Cash offers provide massive advantages for buyers and sellers. However, they may not be the right choice. When selling a home, it is important to be aware of the advantages and disadvantages that come along with accepting cash offers. It is also important to understand the people who are making these offers. This ascertains that the buyer is doing business with reputable parties that have the funds to purchase the home.

 

When purchasing a home, think hard about putting all your finances into one asset. It is important to talk to an accountant or a financial advisor and ensure that you understand all the details before moving forward with making a cash offer.

The post What A Cash Offer Is In Real Estate and Why You Should Consider It appeared first on National Cash Offer.

source https://nationalcashoffer.com/what-a-cash-offer-is-in-real-estate-and-why-you-should-consider-it/

How Opendoor Works and Does It Really Work?

Opendoor sells your home without listing on the market and moves according to the client’s timeline. That means there are no listings, no showing, and no time for uncertainty about the location and time for the client’s move to the next home. Opendoor makes the process of buying and selling of homes simpler and less stressful. The process as that used in Opendoor is known as iBuying in the industry of real estate. Here is how Opendoor works;

 

 

Request an offer

Buyers and sellers are required to provide the address of the home on the Opendoor website and also give details and descriptions about the home. There is a competitive offer, which is backed by the local real estate expertise as well as the current data of the market that is received. The offer provided will include the offer price, service charge, and estimated closing costs. Additionally, Opendoor provides the net proceeds that the buyer or seller can expect after closing. The offer is provided without any charges or obligations.

 

 

Schedule for a free home assessment

After the seller is happy with the offer, there is an online purchase agreement that the seller can e-sign. A Home Advisor is then suggested, and the seller is expected to schedule a free home condition assessment. The objective of the assessment is to verify the condition of the home and assess if there is a need for repairs.

If there are any required repairs, Opendoor will ask for a credit and deduct the costs from the net proceeds. The amount asked is equivalent to what will be spent to ensure that the home is safe, well structured, and its functionality is maintained. The goal is to charge only what is needed for the completion of repairs and pass any discounts that will be received from vendors to the seller.

 

The seller will have an opportunity to review the net proceeds, that is, the amount that will be received after the sale. The reviews are made face-to-face with the Home Advisor. If the seller does not agree to the repair request, the contract with Opendoors can be canceled without penalty any time before closing.

 

 

Close when ready

The closing process will be explained in detail by the company. You will choose your closing date as per your convenience since the timeline is up to you and not Opendoor. After closing, the company ensures that you are paid within a few days.

The process is made easier for buyers and sellers. Buyers can get quality homes that will not require extra costs for repairs. On the other hand, sellers are given all the details for free and they will not need to incur additional costs looking for experienced real estate agents. The services offered by the company are free, that is, providing a free home inspection that is provided by Home Advisors.

 

 

Does Opendoor work?

Opendoor makes its mark as an innovative way to sell your home, combines competitive offers, and fast sales without the need for listing and showing. Opendoor works and here are the reasons why;

 

 

It is convenient

Opendoor adopts to the world where there is a need for things to be easy and quick. The process is made quick, easy, and user-friendly for the sellers. The sellers are only required to give the details of the home, receive an offer, close when they are ready, and receive the payment quickly. The company ensures that it eliminates the need for open houses and allowing strangers into the home who may look through personal stuff.

 

 

Opendoor is a tool for real estate

Opendoor is good for two types of sellers. One, sellers who have experience and are aware of the ins and outs of a home sale. These sellers know the kind of questions to ask and the red flag to pay attention to during a sale. Two, sellers who want to sell their home quickly since sellers in the platform receive an offer within 2-48 hours.

 

The sellers are required to live within the service areas of Opendoor. These areas include; Portland, Los Angeles, Orlando, Denver, Phoenix, Raleigh-Durham, Minneapolis-St Paul, Riverside, Houston, Austin, Sacramento, Salt Lake City, Jacksonville, Charlotte, Atlanta, Tampa, Portland, Las Vegas, Dallas-Fort Worth, Tucson, and San Antonio.

 

 

Opendoor makes selling and buying of homes simple

Opendoor ensures that there is no need to send people out for an inspection since a Home Advisor is all that is required for free home condition assessment. Also, Opendoor offers convenient options when it comes to maintenance and repairs. The Home Advisors quote what may need to be repaired and quotes the amount of money that will be needed for the repair. The seller is not coerced to agree to the repairs but rather they are given an option to agree or not prior to closing.

 

Opendoor ensures that sellers are given the liberty to choose their timelines for closing. This provides the seller ample time to see if the deal offered is good, or they can choose to cancel it at no charge. Additionally, Opendoor provides an opportunity to rent the home back from the company two weeks after closing. This helps the seller to pack their things as they will remain in the house before moving.

 

 

The disadvantage of Opendoor: Numbers

The overall purchase price of the home and fees is fifteen thousand less compared to the open market. This may not be a problem for all sellers. However, some sellers prefer higher offers and they may be willing to wait longer for the market.

 

The quick and easy process of buying and selling homes comes with a cost since there is an average of 7% for the services offered. The website indicates that there are instances that it can be as high as 13%. The fee is based on the duration anticipated by Opendoor to sell the home based on the information that sellers provide. Also, the comparables in the area play an important part in determining the rate. Experts say that higher amounts can be paid to Opendoor compared to hiring experienced personnel.

 

 

Take Away

Opendoor is an innovator in the real estate industry. It forces the industry to find other means rather than stick to outdated and time-consuming practices when it comes to buying and selling of homes. In conclusion, Opendoor works and is convenient for buyers and sellers.

The post How Opendoor Works and Does It Really Work? appeared first on National Cash Offer.

source https://nationalcashoffer.com/how-opendoor-works-and-does-it-really-work/

Tips on how to sell your home and buy a home in 2020

Top 10 tips of how to move houses in 2020. How to sell your home and buy a home

Selling a house while buying your next can be hectic especially if your closings do not align or if the process takes longer than anticipated.

Buying and selling simultaneously is stressful particularly if you need the funds from the current sale of your home to facilitate the purchase of the new house. Patience is key, however, planning and working with savvy real estate agents can help to make the process smooth.

There are tips that can help you manage the process and at the same time keep your sanity intact. Here are top ten tips of how to sell your home and buy a home

 

 

Have a Team

Buying and selling a house involves many steps and paperwork. Hiring experienced professionals is important as they will provide guidance all through the process. Skilled real estate agents provides a realistic estimate of the prices in the area and takes you through on how you should price your current home. With that figure, it is easier to calculate equity and the net proceeds making it easy to apply the money toward the down payment and closing costs of the new home.

Using the same real estate agents and attorneys, if required, for both the sale and purchase, makes the process run smoothly.

 

 

Evaluate your financial position

If it were for your plans, you would prefer selling your house in the morning and close on your purchase in the afternoon or within a couple of days. However, things may not go as planned. The process might lack the necessary funds to close on your next home, end up paying two mortgages for a longer period, or be unable to finalize the approval of mortgage and prospectively lose the next home.

 

A contingency plan is important in this case since it offers an escape route if the sale of the current home fall through. A financial contingency should also be considered in case loan approval hinges on the sale of the current home.

 

 

Fix your home before selling

It is important to ensure that repairs are made before seeking new buyers. Inability to fix the home increases the chance of the house to sit on the market for longer periods than expected. Consequently, the value of your home can significantly drop.

 

 

Consider the market

Timing for both selling and buying a home should be right. Getting the right timing will depend on the condition of the local housing market. In the buyers’ market, the process might be longer to sell the home. Therefore, there is need to wait on making offers on the next place until there is a contract signed by a potential buyer. Another tip is you have the upper hand to put in place a contingency that will not validate or legally bind the deal if the sale of your current home fails. This helps in giving you peace of mind.

 

In the sellers’ market, make sure that your home is staged and ready for market. Also, ensure that finances are in order to help in making an offer on a home quickly. When conditions are inclined towards the seller, there will be less flexibility to factor in contingencies or bump out closing date, especially if the seller needs to move faster. Nonetheless, if the current home is priced right and staged well, the sale should be faster. It also helps in providing room to be more selective on what offers to make and at the same time what to consider and limit with less contingencies.

 

 

Learn the market

Selling your current home and purchasing a new home is a major decision. It is important to understand why you want to sell your current home and buy your next home. If you are not clear on why you want to purchase a new home, you could be easily regret the decision. Therefore, understand the new qualities you want and go for open houses to see what the market offers. Start with the elimination process, where you will state what your next home must have and the deal breakers.

 

 

Negotiate both the timeline and the finances

Ensure that you get the best possible prices on the sale of your home as well as the closing process when negotiating for the two deals. The goal is for the buyer of the current home and the seller of your next home to have an agreement to adjacent closings or any important contingency. Many buyers only negotiate the finances and forget the timeline, which is equally important.

 

 

List your current home when you are ready

List your property towards the higher end of its value range when you’re actively in the market. This helps you to buy time while you look for your next home. The process can be beneficial to you as there are chances of getting more money from the sale of your current home.

 

 

Have plan B

Even if you carefully plan to purchase and sell your homes at the same time, the transaction may not be as scheduled. One of them might fail completely. Closings should be rescheduled as per the minimal financial pain if the contract have contingencies.

 

If not, a plan B is essential. Here are the options;

• Rent for a short period if the sale has been finalized and you have not found your next home.

• Ask buyers to agree to rent-back as this will help you to remain in your current home after closing. The period of your stay should be short and you should pay rent to the new owners.

• Cover your finances for buying a home with savings, home equity or a bridge loan over short-term.

• Rent your current home and use the money to offset the expense of owning two homes until it can be sold.

 

 

Start packing

Pack the things that you do not require as often. Packing should be made in boxes and should be labelled. Get rid of all the things that you may not also require when moving to the next home. This will help to make the home show better and at the same time it will make the packing process easier. There are instances when renting a storage unit may be necessary if the buying process takes longer.

 

 

Check if your furniture can fit through doors

The size of entrances and turning room can be a problem after buying your next home. Therefore, you should ensure that the furniture will be able to fit in the new house to avoid the inconvenience.

 

 

Conclusion

Selling your house and finding a new place at the same time can be challenging. Hiring experienced professionals makes the transition smooth and ensures that there is effective and consistent communication with all those involved. Keep tabs on the finances and credit score before and during the process. This helps one to act quickly when you find your next home.

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How much to budget for expenses after closing

Investing in home ownership is a big step. There are additional costs that are involved, which are linked to getting a mortgage and monthly payments. Closing costs is one of the additional expenses involved in home ownership.

Closing costs need to be paid before closing on your home and add things such as ownership insurance, property taxation, appraisal fee, and title search fee. Closing costs also helps in providing payment to the people who have offered their services throughout the process of loan, such as real estate agents and appraiser.

It is essential to note that even though the name is closing costs, there are instances where you may be required to pay some of them as the action takes place. For instance, home inspection needs to be paid after the inspection.

All the closing costs are provided at closing. It may be prudent to ask the mortgage agent or banker to offer clarifications when things are not as clear as you would want.

 

 

What Is Closing Costs?

Closing costs are one-time fees that are linked to the sale of a home. The closing costs are provided to the buyer for payment, three days before finalizing home purchase. There is an agreed percentage of 3% from most experts, who advice home buyers to set this percentage aside to cover for the home’s closing costs.

Examples of closing costs are down payment and mortgage default insurance. However, this ought not to be included in the 3% calculation. It is also worth noting that mortgage default insurance is needed when the down payment is less than 20%. The mortgage default insurance is factored in mortgage payment to avoid the owner having to pay upfront.

 

 

Who Caters for the Closing Costs?

Homebuyers have the liberty to negotiate with the seller on who will cover for closing costs. Sellers may choose to cover overall closing costs, however, every loan has a different guideline about the amount that the seller can pay. Mortgage bankers can help you learn and understand the different options.

 

 

The Cost of Owning a Home

After moving in your new home, owners learn that there are things that need to be bought. There are purchases that may be need on the first day and others may take months after moving in the house.

 

Budget for Closing Costs

Experts in mortgaging and real estate recommend putting up a different account that will help in ease of managing funds for closing costs. If some or all of the closing costs options need to be catered by the buyer, it is important to ensure that the sum is included in the budget.

The budget should be realistic. It should be created in advance and there is need to stick to it. It helps the buyer to be more confident at the closing and minimizes the risks of unexpected surprises. The ability to map out and narrow down the expenses and payments increases the effectiveness of managing the overall costs. There is need to know how much you can afford before putting together an accurate budget.

 

 

Estimate the Closing Costs

Generally, the percentage for closing costs is between 2% and 6%. Therefore, the amount for closing costs is dependent on the budget of the buyer. Mortgage bankers will provide a document after applying for a loan. The document breaks down the interest rate, monthly payment, taxation, insurance, and closing costs. The list of closing costs is a subject of change throughout the process. The indicated closing costs on the document provides a rough idea of what you should expect.

 

 

Managing All the Costs

Working with professionals, such as lawyers, estate agents or movers, may require you to get a detailed estimation prior to avoid surprises. This helps in finding out the amount that the outside services will incur ahead of time. Therefore, the buyer will be in a position to set aside finances for the additional costs. Being aware of and closely tracking the different expenses from different sources is a good start to creating a realistic budget. This is because it helps in accounting for and meeting all the financial obligations.

It is important to seek help and clearance from a mortgage specialist as this helps in identification and sorting out different costs that are associated with closing costs.

 

 

Save Monthly

Saving for the down payment of a house may seem obvious, but there is need to set aside some cash for different expenses that are linked to home ownership. This is inclusive of closing costs as well as other unexpected expenses, such as emergency repairs.

 

 

Tips and Tricks for Saving

In any budget, looking at the current expenditure habit and deciding what requires to be cut down is very essential. This will help in pinpointing where less important budget can be cut and the money to be used in saving. The little savings will eventually be a lot of money and can be used in home ownership.

Another tip is setting aside bonuses or tax returns. Saving can prove to be hard, but putting aside extra or unexpected money that you receive directly in a savings account is necessary. The money saved in a savings account will not be used in irrelevant courses.

 

Cut the cable cord. There is need to choose a subscription service rather than streaming online. You will be able to still watch your favorite shows and save the extra money that caters for streaming. Eating at home. Eating out is very expensive. Therefore, meal planning and packing food to work will help in saving money. Cutting down consumption of energy. Leaving the lights on while you are not in the room consumes too much energy. The utility bill can be saved from the simple actions such as lowering the thermostat.

 

 

Conclusion

Although the buyer may not be required to pay closing costs for each loan, it is prudent to pay for hidden costs that are associated with home ownership. Making small but necessary changes can help in starting a saving culture each month. This ensures that there is little money saved in cases of any emergency related to home ownership.

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source https://nationalcashoffer.com/how-much-to-budget-for-expenses-after-closing/

Interior Remodeling Vs. Exterior Remodeling

According to Webster, the definition of remodeling is to ”alter the structure of,” and, in this case, we are specifically interested in the altering of a home; the interior and exterior, to make it more exciting and aesthetically pleasing. The ”Remodel” word is much misunderstood, especially when it comes to real estate and homes. Remodel is commonly mistaken with the name ‘‘renovate’’, which according to the Dictionary, is to ”restore to good condition; make new again; repair”. Since we have already defined, remodel, which is to alter the structure of something, in this case, a home, you can see why the two can be used interchangeably. According to Sleeping Dog Properties, remodeling is the entire process of completely altering the layout, structure, and style of a home.

 

A homeowner for many different reasons may want or need to alter either the interior or the exterior of their home. In this article, we are going to focus on distinguishing between Interior remodeling and Exterior remodeling and which of the two would make the owner happier. First, we need to ask an important question; why would someone want to remodel their home in the first place?

 

 

Reasons to remodel your home

 

1. Improve the state of the house.

You need maximum comfort in your own home, and that is a good enough reason to invest in making your home the best according to your liking. Having a home that reflects your personality and sense of style will make you happier, and in return, you enjoy being at home more.

 

2. Improve the value of your home.

People often plan to move, and sometimes they don’t, but circumstances force them to relocate, and they find they need to sell their home or rent it out. In this case, you would want to get the best value for your home, and the best way to do it would to enhance sectors you feel would make the house better, like changing the furniture, painting, or replacing old doors.

 

3. Make your home safer

Safety comes first in life, and when you find that your home is a hazard, you need to find ways to keep your house safe from dangers like electricity or leaks. You may even find that you keep hitting your head because the doors are too low. For whatever risk that you may have in your home, it is better to rectify it by remodeling your home to make it safer.

 

4. Keep up with Technology.

You might find that you live in a home that was built decades ago, but new, better technological advancements have been made. For example, there are better lights you can fix that reserve energy. Technology is improving many aspects of a home every day, and you would like to keep up with the changing times to make your home better.

 

 

Distinguishing Interior and Exterior Remodeling

 

Interior Remodeling

Interior Remodeling, according to NYSID, is about ”how we experience spaces”. Just like the name suggests, it is all about the inside of a home. Remodeling the interior of a house would entail enhancing and improving different aspects and rooms of the home. You can get your bedrooms repaired like HW Construction. There two ways you can Remodel your home. One, you could hire Interior designers. These are professionals who are paid to make your house an embodiment of your ideas. You tell them what you want to be altered, and they give you options on how to efficiently do it.

 

The second way to Remodel your interior is to do it on your own. This can be difficult if you do not possess the technical capabilities required. The beneficiaries of Interior Remodel are mostly you and the dwellers of your home. You can learn how to remodel on your own here AC Architects, or you could browse different ideas on the topic on Elle Decor.

 

Exterior Remodeling

With exterior Remodeling, the outside is significant and should be considered first. Why? Might you ask? Well, the reason is simple. Such websites as Greenworks Construction believe first impressions matter, and we are taught that from a young age. When it comes to Remodeling your house, the same concept applies because you have to remember that when people visit your home, the first part they see is the outside. The exterior remodeling includes paving, painting, roofing, and gutters. The main difference with Interior is that the exterior would be seen and appreciated by strangers and neighbors while the dwellers of the home would appreciate interior.

 

Does Interior Remodeling make Homeowners happier than Exterior Remodeling

Remodeling is quite therapeutic because of the bliss it brings in seeing a project through and, of course, improving your own home. Make sure not to do the renovation wrong by visiting a website that help with remodeling.Otherwise they will find no happiness after.

The two kinds of remodeling are different but still have the same idea, and that is to alter the appearance of the home.

 

Happiness comes in many forms, and I think one of them would be getting a sense of pride and joy once you finally remodeled your home. In both, you will get the feeling of accomplishment. The question of what will make you happier is will have very subjective answers. Some people will focus on the interior, and some will focus on the exterior, it depends on how satisfactory the Remodeling was whether Interior or Exterior. My opinion would be that more happiness would be derived from the exterior remodeling since more people are affected like strangers, neighbors, and passersby.

 

The only way to counter these hidden costs is to plan ahead when purchasing a house. You can do this by researching extensively on what will be needed and budget appropriately. You can stumble upon a relatively affordable home, but its hidden costs might be too high and this could lead to a financial crisis. Be sure to be in close contact with your real estate agent since they’ll give you all the information you need to know pertaining the house you are buying. For many people, buying a house is stressful, but you can ease it by knowing what to expect during the whole process.

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