Archive for February, 2015

do I buy or sell first ?

Wednesday, February 18th, 2015

that is the century old question. Like many things in life, you need to do your homework, be prepared and fully understand your options. What are the current market conditions? Is it a hot buyers market or a soft sellers market? What can you expect to net out of your current home and is it ready to be put on the market? If your current house sells fast, but you have not closed on the new one, where do you live? Can you afford two house payments? Here are some thoughts and suggestions:

- get several opinions of the value of your current home via appraisers, agents, Internet and your own search

- meet with your mortgage broker (more then one is a good idea). Find out your options regarding mortgage approvals for two properties, temporary (home equity, bridge) loans, locking in interest rates, and get any suggestions from your mortgage person regarding current market conditions

- go inside and take a look at as many properties as possible. This will give you a good idea of the new home you will be buying. Plus it gives you a good idea of how your current property needs to look to sell fast

- consider all options. If you sell first, do I have a temporary place to live. If I buy first, can I afford two mortgage payments.

It is very rare to buy the new home at a low price, then sell your current one at a high price. I usually prefer to buy first. This way you get the house you want and at the best price. Put in as many offers as it takes to get the best price. Once you get a good deal, now you can price your home just below the competition and it should sell fast.  If you sell first, then you are under a lot of pressure to pay top dollar and it may not be the perfect property you were looking for. Remember, the three most pressured moments of your life will be dealing with    1. a family death 2. a divorce 3. buying a new home

Know your competition

Monday, February 9th, 2015

You only need one buyer, but you have multiple competitors. You need to know them so you can convince the buyer yours is the best one for them. First, there is the Investor resale property. The investors with deep pockets either flip or wait for their tenant to move out. Then put their property on the market with newly finished hardwood floors, new interior and exterior paint, new carpet, upgraded fixtures and more. Their property is vacant and in move in condition. Plus they will pay the buyers closing cost. Second, is the builder of new homes. Their properties are brand new, with new roof, appliances, move in condition and never lived in. They offer  Home Warranty’s between 1 - 10 years. They also will pay the buyers closing costs. Third, is the owner occupied resale property down the street from yours. They know your property is for sale and they watch your asking price very closely.

We strongly suggest you view the inside of each of the competitors property. As stated in the Godfather movie: ‘keep your friends close and your enemies closer’. The buyer for your property will do their research online, then quickly try to view all properties in their price range and location desired. Be ready to answer all questions and give out extra information based on anticipated questions that may come up.