Scrambled is how we feel when we can’t get the threads of all of our thoughts and questions to lay down orderly-like so that we can make sense of them. The purpose of this blog post is to unscramble some of the threads and thoughts about real estate that are misconceptions, myths, and the root of paralyzing indecision.
According to latest numbers only 33% of buyers at this moment are buying a home for the first time. 67% have a home to SELL. This means there ARE listings out there, people just aren’t listing them because they are in a cycle of paralytic thought where they think there’s nowhere to move so they don’t list their house. They think they can’t sell their house for a multitude of reasons. Here are some of them and the reasons why you CAN do it.
- “My current house isn’t worth that much. I won’t make enough money to buy a new house“. Have you run comps and done a market analysis? Do you know what your seller closing costs are? I’m guessing NO, so don’t jump to conclusions and stop yourself before you even start. Reach out to a Real Estate Agent and find out what your current house is worth. This costs you nothing at all. It doesn’t even cost you time. I’ll make it even easier for you. Here’s a link to a super simple way to get a general idea of your home’s worth AND a buyer heat map that shows you how many ACTUAL BUYERS in our system are looking for a house like yours. homevalue.howardhanna.com
- “I heard that I need 20% down to buy a house”. Yeah this one still shocks me every time I hear it. NO, YOU DO NOT NEED 20% down to buy a house. Hardly anyone even puts 20% down because it’s so cheap to borrow money right now! You can get Conventional loans as low as 3% down and FHA loans with 3.5 % down or a VA loan (if you are a veteran) with 0% down. There are options even beyond these to bring your cash needed down incredibly low. I have many mortgage friends who would be more than happy to talk to you about your specific options. Again, this costs you nothing and opens up a world of useful information to you. All you have to do is ask. Email me at [email protected] and I’ll send you a list of mortgage pros. You don’t even have to talk to a human being on the phone if you don’t want to. (I’m talking to you Millennials)
- “I can’t sell my house because I have nowhere to go because there’s no houses on the market and I don’t want to be homeless”. OK, so let’s break this down. First of all, do you want to move? If you do then there’s probably a way. Here are some facts:
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- Bridge loans are available such as the Howard Hanna Buy Before You Sell program. This program allows you to find a home to buy before you sell yours. Yes, that’s what I said. It’s easy, it works and it’s low risk. It’s the perfect option for many home sellers. Here is some more information. blog.howardhanna.com
- Do you want to sell now to take advantage of the higher price you’ll get because of the current seller’s market climate? OK, we can do that. Here’s how. If your house is in a high demand area you will quite likely get multiple offers with my help and expertise. You can tell buyers that you need a flexible closing date with the possibility of renting back from them. This gives you LOTS of time to find a house to buy!
- If your house is in REALLY high demand then you are truly the boss of what happens. You can list your house and only take an offer that offers you the closing period you need. Myth clarified: YOU DO NOT HAVE TO TAKE AN OFFER UNLESS YOU WANT TO. A lot of people think if you list your house and you get an offer you are obligated to take it. Not so.
- Bridge loans are available such as the Howard Hanna Buy Before You Sell program. This program allows you to find a home to buy before you sell yours. Yes, that’s what I said. It’s easy, it works and it’s low risk. It’s the perfect option for many home sellers. Here is some more information. blog.howardhanna.com
The bottom line is that if you WANT to move then you need FACTS in order to make a decision. You need to know the following answers:
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How much is my current house worth? What will my net profit be? I can help you find out this crucial answer.
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Based on that number how much house can I afford given today’s insanely low interest rates? What monthly payment do I want to keep to?
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Once we know (a) your target monthly payment and (b) the amount of cash you’ll have from your current house we can create a target price range. Without those two numbers you are wasting your time and spinning your wheels.
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Now, we know what your house is worth and what you can afford in a new house. We look and see the viability of it based on what location and home features you want. Do you have champagne dreams on a beer budget or are you right in line with reality? We can find out.
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NOW you can make a decision and choose to pull the trigger or stay put.
