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Tips For Picking The Best Offer While Selling Your Home as is.

Tips For Picking The Best Offer While Selling Your Home As Is

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Selling your home is an overwhelming and exciting process. As homeowners see great offers coming in, it could be quite confusing. While the journey is thrilling, it also comes with its own pros and cons. The situation intensifies when you see a lot of offers knocking on doors. You may get confused in concerns about what offer suits you the best. It is essential to get through with the know-how of the whole process. Choose the best deal which covers all your concerns.

Providing below are some tips for picking the best offer while selling your home. You can keep this in mind before you get tempted and wrap up deals.

1. Get Thorough With The Process

It could be the first time for many homeowners, and it is essential to know the fundamentals right, in the initial place. The formula to pick the best offer while you sell your home is to understand the process of sale thoroughly. You need to comprehend that, all proposals are not acceptable. The decision completely lies in your hand. You can either decline, negotiate or accept any offers that come in the process.

In some cases, offers can also be modified based on the requirements of both parties mutually. This particular process of making a deal is called a counteroffer.

2. Decide The Criteria For Sale

While you put your home in the market for sale, you would want to set criteria or baselines on which you’ll be proceeding. Set your zero’s top priorities. For example – if money is the point of inclination you could cut down on the selling duration to find the final offer, and so vice-versa. If time is your priority you could cut down the monetary expectations by selling your home fast for the least maximum gains.

3. Receive Comments Positively

As said in the very beginning home selling process is a very overwhelming process. As you are emotionally attached to the place you wouldn’t want to sell it. But nonetheless, it is just a deal that could favor you for life and would lead you to make wiser decisions.

Acceptance will lead you a long way. You would have to face a lot of criticism and welcome the negative comments of buyers. You would feel offended. For example – If your residence has exteriors that are aesthetically appealing but, as soon as you enter the house the view of the living area is shabby in such cases, buyers are likely to complain. Here, you do not need to lose your calm, this could be a sign, that the buyer is potential and has an interest in your property.

4. Opt For An All-Cash Offer

If you want to close the deal fast, it is highly advised to pick an all-cash offer. While walking on the track of an all-cash offer, the buyer would likely put a discounted price on the house. It gives the seller, an added advantage. It will remove hurdles like contingencies and waiting periods. Though it sounds all good and glittery, it is always essential to have your proof of funds letter accounting from the buyer’s bank or any legit lender.

Buyers propose a cash offer eventually to pay less for the seller’s property. They try to elude contingencies, prolong the time of sale, and pay hard cash immediately to close the deal. Also, remember the higher-priced offer may not always be the best one, you might want to think through the other terms as well. Accepting cash offers will let you be at peace, as the gains would be definite. If you want to sell your house fast for cash. You can get in touch with us, we buy houses within 3 days.

5. Net Proceeds

The amount that the seller is left with after cutting the expenses along with the closing cost is known as net proceeds. For example – If you receive an amount of 5,000,000 dollars as your closing cost, as a seller you would have to meet some terms of the agreement which will cost you dollars. If the cost of repair, inspection, appraisal, and some other terms cost you 500,000 dollars, the outstanding amount would be 4,500,000 dollars – this amount is known as net proceeds.

  • Seller concessions
  • Repair cost after home evaluation
  • Repair cost post appraisal etc.

Given above are some of the primary charges that you may find in the contract which are subject to change accordingly.

6. Assess Contingencies

Contingencies are clauses that are present in the purchase contract. There are a set of standard conditions which must be satisfied, in order to proceed with the sale. The clauses are likely to vary from contract to contract or buyer to buyer. There are some basic requirements that must be taken care of before progressing to an agreement.

The listing below are some of the common contingency clauses –

A. Appraisal Contingency

An appraisal contingency is a standard real estate contingency. It allows the buyer to decline the contract without paying the upfront penalty, this case is only applicable when the appraised value of the assessed property is comparatively less than the purchase price. In such circumstances, the seller can ask for a refund of the earnest money deposit.

B. Inspection Contingency

Buyers have the right to withdraw the contract before providing the earnest money deposit. Buyers also have the entitlement of inspecting the property within the specified time period. This term is also known as due diligence.

Here, the time is usually between 5-7 days. The objective of inspection contingency is that it covers the buyer which helps them to back out of the deal or negotiate for repairs. A home inspector will inspect the HVAC, electrical, and plumbing systems. If the report is disapproved by the buyer, he or she could terminate the contract or negotiate mutually.

C. Financing Contingency

If your funds are likely to fall through as a buyer, you can terminate the contract and reclaim the earnest money deposit. This can happen if you don’t secure any finances in the given term period (the financing contingency or also known as mortgage contingency states the specific number of days when the potential buyer has to apply or obtain financing).

In such cases, the buyer can request for an extension, or according to the norms, the buyer will have to purchase the property regardless he or she has their finances on track or not. Hence, as a seller, it is always necessary that you comprehend the difference between a pre-qualified buyer and a pre-approved buyer (these terms are used interchangeably, which could also differ from the seller’s requisitions). Although, a pre-approved buyer is always in favor as they have a high chance to achieve a loan on a first-place basis.

D. Home Sale Contingency

In-home sale contingency the buyer has to sell their existing property and settle the finances prior to buying the new one (or your home in specific) what it does is, it gives liberty to the buyer ensuring they have the gains from their existing property, further to buy yours inclusive of no hassles. You can also buy and sell the property at the same time all you have to do is get in touch with ‘we buy houses for cash’ companies like ‘Elite Properties’, they will help you in order to satiate your requirement and get the work done.

In-home sale contingency a specified amount of time is provided to manage everything from selling and financing. But, it is not necessary that things would go on a definite path as there is a possibility of things might go according to the plan. In such a case, the buyer can back out if he or she does not achieve the desired amount of the existing property. Then, the buyer will not be questioned for terminating the deal.

The seller here furthermore has the privilege to drop the agreement if the purchaser’s house isn’t sold out within the specific time frame.

There is also an additional set of contingencies that are added based on the requirements of the buyer. Some of them are listed below –

  • A radon examination
  • Mold inspection
  • Evaluate the presence of lead paint
  • Radon in water
  • Well water inspection
  • Miscellaneous inspections or other contingencies

7. Be Interrogative

As money could be the leading aspect of selling a home. It is similarly significant to understand other related terms carefully before making a move. The real estate market is full of uncertainty hence it is advisable to be thorough with the know-how of the selling process.

Ask questions or make a checklist of terms that simplifies the home selling procedure. Check if the buyer is pre-qualified for a mortgage and has a pre-approval letter, this enables the seller to be at peace as the credit score, debts and available assets have been previously passed with an evaluation.

Provided below is a seller’s checklist that you might go through while selling your home –

1. What Type Of Mortgage Does The Buyer Avail?

Each mortgage has some terms of the agreement and prerequisites. There are mortgages that allow buyers that have a low credit score or even no money required for purchases. There are mortgages that will progress only when the buyer has a required or high credit score to make a down payment for the asset.

It does not matter on what grounds is the buyer obtaining his finances, as a seller it is only essential that the buyer has a fair amount of down payment that will provide certainty in the sale. Mortgages like FHA and VA loans have some requirements that need to be satisfied before sanctioning the loan. In an FHA mortgage if the requirements aren’t made the seller might find him or her in the chaos of making last-minute changes in the sale – the demands in a VA mortgage also stand the same.

 

2. Mortgage Commitment Date

A mortgage commitment date symbolizes the ultimate date of buying a home. As mentioned earlier the home selling process has contingencies throughout. The risks of a loan fall-through are unpredictable. Hence, it is necessary to have a mortgage commitment date. If the date lapses, the seller is entitled to keep the earnest money deposit.

 

3. Required Earnest Money Deposit

Earnest money deposit is the money that is held by a listing agent (escrow) until the sale closes. This money is kept in custody which ensures that the buyer satiates the conditions of the contract. If he or she fails to do so the money is given to the seller as liquidated damages. The typical escrow amount is 5% of the sale price.

 

4. Fix A Suitable Time

Home selling is a hyperactive-chaotic situation as everything is fast-paced. There is a spectrum of home selling bars where you need to fix a suitable time for each move from selling to moving further. It is advised to keep your plans settled as closing dates are usually the most critical aspect of the sale.

 

5. Mistakes in Contract

Mistakes in contracts show poor knowledge of a realtor and uncertainty of the buyer. Using white ink, re-writing, or over-writing on the contract is unacceptable. Dodging poor errors will provide you with an assured sale.

 

A Safe Conclusion For You

Covering many sub-topics, here is providing you with an effective method and tips to consider when you pick the best offer while selling your home. If you are living in New York City and require more assistance regarding the above or any other real estate crisis you can get in touch with a reputed real estate company like ‘Elite Properties’, we will provide you with thorough support and answer each query.

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Pros and Cons of Investing In Real Estate

Pros and Cons of Investing In Real Estate

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There are several reserves available in the market for all kinds of sectors. But, investing in a real estate market needs an accurate plan with prevailing methods of execution. One must have the best of both worlds that are, facts and capital that is required for purchase or investment. Most people spend in this market to receive hefty profits, while some of them invest to generate a passive revenue source. Investment in real estate has its peculiar flaws and strengths. Hence, it is highly essential to get them right.

Here are some points you may consider if you are thinking of making an investment in real estate – 

Stating Below Are Some Pros Of Investing In Real Estate

Pros:

1. Easy To Understand

While speaking of dealing or investing in properties, information that people conceive is almost equal on a primary level. You need to dig in deep to be proficient in this market, which requires a lot of study and hands-on research. Though as simple as it sounds and as complex as it can be – investing in real estate is less complicated as it involves purchasing the property and selling it (if the investor wants to do a house flipping).

If you are investing in funds, you must know the number game really well, if you are into trading bonds the principle halts the same. Investments could be of any kind but, in every way, you would require fundamental math skills that help you in understanding the notion well and painstakingly.

2. Always Has An Improvable Side

Several other investments could bind you to certain limitations which you might certainly control whereas, real estate investments are more pliable and improvable. As being one of the tangible assets, it is evident to increase a property’s worth in all degrees, by using some ‘elbow grease and ‘sweat equity.’ It does not matter how the process of upkeep is – it could be structural or just maintenance of the assets.

The above reason makes investments in real estate improvable. If you are confused about the methods of investing in it, and you are residing in New York City, you can get in touch with ‘Elite Properties‘ they buy a house in an all-cash offer and bid the best deal every time.

3. Shield Against Inflation

The yields on real estate are allied to the rents, received from the tenants. Real estate has the head to strike inflation extra consistently than any other reserves, as it reacts in respect of it. It proves to be a good hedge against inflation, as rental properties are released every year (every 11 months), and rents are attuned upwards in the inflationary periods. Therefore, you are less worried as an investor in concern to the profits on the property.

4. Offers Security

Investing in land and assets like property always proves to be a gravy train in the scenario, which also provides you with a sense of security and bequeaths a legacy of your name. Also, investing in other possessions like gold or platinum might leave you bound by stress whereas, a property can’t be theft, so you have a sigh of relief, leading you to a much more peaceful future.

Hence, adding an extra asset to your prized possession list never does any harm, but on the other hand, it is profoundly important for the investor to research precisely.

5. Dual Income Source

Another added benefit of investing in a property is that you can receive profit every day, but how? Rental income – One of the good things about rental income is that you can earn profits out of it every day for a full year or as many years as you want, it also acts as a bonus if you have a full-time serving job as the rent supplements the income. While dividend stock yields won’t assure you big returns.

Investing in real estate aid in mounting equity as the flow of income is regular. You don’t have to pay extra charges for the upkeep of the property.

6. House Flipping

House Flipping is where you buy a property, rehabilitate it, and sell it to potential buyers. It helps you to ultimately attain a big profit edge on the amount you invested while buying. Buying a home, fixing it, and selling it could be too much. But, it could also help you receive big profits as the property you buy does not necessarily contain structural damage every time.

A smart investor will buy a house and do the cosmetic changes, repairs, and staging (if needed) to increase its worth in the market.

Don’t Oversee this while buying a property for a House Flipping..

There are also some points you can’t oversee while buying a property for house flipping –

  • Understand, what kind of house or property you wish to buy
  • Neighborhood / Locality plays an essential role
  • The property should be handsome and could curb appeal
  • It should have the least amount of fixations required
  • It does not contain any mortgage left or unpaid

Always keep in mind that you are not the homeowner but an investor. No investor will spend on an ugly house for cash.

Stating Below Are Some Cons Of Investing In Real Estate –

Cons:

1. Greater Transaction Costs

When we compare buying or investing in property with stocks, there is a high chance of property winning the comparison. The size of the property including the category decides the listing price. Whereas, the amount on stocks will fluctuate for a shorter term (inclusive of the transaction cost) and promise you measurable gains.

The transaction cost of real estate is comparatively high, which transpires due to opacity in the market. Therefore, investing in the real estate market can significantly affect the value of the investment made. Ultimately making it more difficult to earn profits, as it is also tangible and requires ongoing maintenance for sustenance.

2. Illiquidity

The first question appearing in your mind would be, what is illiquidity? As mentioned above, real estate is a big market and a preferable option for investment to many. But, it also has some setbacks, and one of them is illiquidity. Trades in the market can be pretty tough as you tend to get fastened with a big price on the property.

Here, the amount invested in the property is returned, with a substantial loss of capital. Such occurrences happen due to the massive gap in the bidding price. This price is provided by the buyer and the investment price is set by the investor or seller. It is often tough to meet the price of the seller which eventually leads them to back out from the offer.

3. Requires Management and Maintenance

If you want to invest in real estate markets, make sure you balance the books well. As soon as you make an investment in a property, your expenditure increases inevitably. It requires maintenance and other foundations for the upkeep and improvements, for any glitches in the property. Investing in properties is like a progressive ladder of ever-increasing expenses if the house sits vacant for a prolonged duration.

Investing in a property requires an ample amount of capital, for legal and structural improvements. Charges like financing payments and taxes add to the increasing cost that also consists of maintenance fees.

4. Clutches Significant Inefficiencies

Including all the above disadvantages real estate also clutches inefficiencies, why? As the investor and buyer both mutually decide the value of the property. Here, the investors would face an unseen dilemma of not knowing the property’s actual worth.

It is essential to not go with the flow and check everything before proceeding. As the amount of information perceived is solely based on clauses given before signing the deal.

Most investors agree to the listed price and make an offer without carrying out a hands-on inspection of the property. For example – An investor purchases a property worth $10,000 and its actual worth could be $10,500 (this could be the best scenario). But, if you purchase a property as same for $10,000 whereas the price of the property is $7,500 then, this is a blunder and a significant loss. Therefore it is highly advisable to carry out an inspection before you make an offer. You must visit the site to avoid a huge mistake in the coming time.

5. Creates Liabilities

Being the owner of a property laterally brings a lot of liabilities on your shoulder. And legal issues come into play. As you own a property you are legally responsible for the damages. For instance, if the fence falls off on someone and the person is injured, you are accountable for the medical care of that person. You may also face personal injury litigation and attorney fees.

Take Away

All investments have their own set of pros and cons. One must know the ropes while diving in the ocean of real estate. A wise investor will make most of both pros and cons to employ maximum profit out of the investment. Moreover, you can contact reputed real estate companies in NY like ‘Elite Properties’ to help you in understanding – buying – selling of properties in NYC.

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Real Estate Position in 2019 – Predictions and Forecast

Real Estate Position in 2019 – Predictions and Forecast

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As we have taken a step in 2019, there are a bunch of questions that jump in every individual’s mind. Similarly applied to the real estate sector as well, do we see innovative opportunities coming in the market or it will be a downfall in the economy? As 2018 was a year full of developments and technologies, let us have a look at some real estate forecasts and predictions for the year 2019.

New Constructions

The real estate market is broad and demanding, and it becomes difficult for the Government to meet the requirements of the civilians. As there is a massive rise in the allowance of building permits, it is highly possible for us to see new constructions gaining numbers in a majority.

A study from the experts reveals, that the percentage of single-family permits issued nationwide has progressed by 8.4% compared to the year 2017 till 2018. The housing market is a gradually retrieving, and the process of filing of permits till receiving the end product consumes time, the market will eventually go through the lack of supplies leading to less listed homes.

New Technology Usage

Use of technology entices buyers. How does this work? Things like virtual staging, walkthroughs, and adoption of VR headsets – where people soak in the 3D visualization and experience of being in their dream home, capturing top shots of the property and landscape through drones – provides a 360-degree view and easy listing on MLS, using Chabot’s on websites and web applications for real estate which aids in saving money and time.

Added to these there is also a trend of Blockchain (is a stage where transactions or trades are carried, through digital currencies) which is growing immensely all over the globe, where people trade in Bitcoins and Ethereum (these are types of Cryptocurrencies that are operated on Blockchain). This platform is beneficial in many conducts as it offers smooth and transparent transactions and trades across the world digitally which involves less leg and paperwork. Here, you ultimately exempt the mediator and close deals directly with the third party.

Prefabricated Homes is the Future

Let us explain to you what are prefabricated homes in the first place – prefabricated houses resemble a 3D jigsaw puzzle, they are manufactured in parts offsite and then assembled onsite on the preferred location. Prefabrication is a construction technique which is fast and cost-effective compared to various other construction methods. Prefabricated homes are designed employing durable materials, offering high performance in concerns with the sustainability.

Facilitated entirely with amenities and luxuries prefabricated homes are a great choice to dwell for shorter terms.

Millennials, Above All the Generations

If your question is, which category of generation is flourishing as new buyers or investors in the real estate sector? The answer would be millennials. The millennials are currently the largest generation on the bar which has the maximum number of first-time home buyers in the real estate industry, calculated to be around 66%.

Millennials are smarter and much knowledgeable in comparison to the baby-boomers and Gen Xers when it comes to the home buying process. With the help of available technologies, IoT and apps millennials examine thoroughly to keep things streamlined before taking any step that might take them down in the pit of loss.

Substantial Increase in Mortgage Rates

A report from Mortgage Bankers Association states that the mortgage rates are currently around 4.9% (that is in the year 2018) and would stay the same in 2019 as well. The above-mentioned studies are based on the 30-year mortgage rates, as the rates would remain the same for a leading half of the year, they might also tend to jump thereby increasing from the current 4.9% to 5.1% as the year ends. According to the real estate market, it is a healthy growth but, as far as the buyer’s market is concerned, it would be an evident downfall.

According to a real estate forecast that was issued for the year 2018 (July) stated, the prices will continue to rise for the year 2019. As the past year experienced a rise of 8.1%, the experts foretold the rise will progress by 6.5% by the time summer arrives for the year 2019.

Sellers Over Buyers

As mentioned above, the increase in mortgage rates and a shortage of inventory recorded in the year 2017-2018 will generate a deficiency in the housing markets. All of the above will create an irregularity in trade, supply, and inversion of investing in real estate. Hence, the prices of properties will rise in 2019 affecting the affordability of buying homes.

In contrary, it is also a golden opportunity for those who are looking for an investment as there are many properties listed on the bar, you get hands on your dream property, which would eventually make you a smart buyer in the seller’s market. But the final word, 2019 is going to be a seller’s market and a gold mine for the ones who are listing their property.

Decide For Yourself

Addressed above were some real estate trends and real estate forecasts in 2019 that we might get to witness. The real estate market is very fragile and has a drift to fluctuate we will advise you to choose your purchases carefully, and not fall in the pothole of errors.

Else, if wish to buy or sell house in NY, you can reach a reliable real estate company like ‘Elite Properties‘ who will be happy to help you and sort your queries for the housing market.

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ways to deal with an inherited property

Ways To Deal With An Inherited Property

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What Is An Inherit Property?

Inherit means to receive, and an inherent property means receiving property from a deceased person or someone who willingly handovers the property to their successors through legal means. Inheriting something does not stop at home, it may include other possessions too.

Receiving property from a deceased person whom you loved once, can leave you emotionally muddled. It can drown you mentally and leave you blank as many thoughts flow through your mind at a single time. In such cases, it is necessary to figure out the options and choose one wisely as it is a huge responsibility and could also cost you a lot of time and money.

Challenges With An Inherited Property

Inheriting a property comes with responsibilities before you contemplate moving into it. After inheriting the home, you should check whether there is any outstanding debt. Another added point is the condition of the home – if you receive a property that is shabby and requires improvements, then it is misery in the name of blessing.

Lastly, comes the probate process, primarily this is an initial and crucial step in this scenario. The heir should make sure that he or she is the lawful successor of the descended. Many homeowners in the United States do not have a will because of which the property of the deceased has to go through probate valuation, for the legal transfer to the beneficiary. This step is usually skipped when the creditor (descended) has the name of the executor (heir) cited in the will.

More challenges come, when there are multiple siblings as beneficiaries, you are left with no option but, to sell the property and divide the amount received by the number of siblings equally. This process will ultimately increase the duration of selling the inherited home including the probate process.

Figure Out The Usage And Consider Your Options

Now, when you have the issues sorted, you might want to have a look at the utility of the property. You need to obtain a decision whether you want to keep the house and shift in it, rent it to tenants, or lodge a part of it.

  • Keeping The Property

The toughest and not so opted choice for people is keeping the property as nobody would like to live in a place that will remind you of past occurrences.  Also, renovating an inherited home according to your requirements could cost thousands of dollars.

  • Renting The Property

Renting is a great source to earn passively unless you have joint beneficiaries but, it has shortcomings too.  As a homeowner, you will have to get done with the improvements of the property, to make it rent-ready. This again will cost a lot as being a homeowner comes with liabilities.

  • Selling The Property

Selling an inherited property would leave you with great returns and fewer worries. When you sell the inherited property you cut down maintenance cost and upkeeps, you can also choose a reliable real estate company that pays you the closing costs of the property and exempt you from the crisis.

Ways To Sell An Inherited Property

By now, you might have sorted the options that you will opt for. If you have thought of selling the inherited house and want to use it as a skipping stone for buying a new one, consider seeing the points below –

  • Clear Legalities

After inheriting the property, make sure of all the paperwork and probate process. This process takes six months to two years to get complete. The time may differ according to the size of the estate and beneficiaries.

  • Clear Dues And Property Taxes

Clearing dues before selling the inherited property in the market will bequeath you with fewer concerns. As you are the legal owner of the property, you would have to list down the unpaid debts. Make sure you note down the due real estate taxes, ongoing maintenance fees, insurance, and HOA fee (community fees) and calculate the expenses carefully for further transactions.

The heir of the inherited property has to pay ‘inherited tax’. The tax rate is determined according to the value of the property and who inherits how much.

Spouses do not need to pay them (if they are the heirs), else, the tax rate is 4.5% to 18% which differs from state to state.

  • Assessment And Cost Evaluation Of The Property

It is necessary to carry out an inspection, as problems like – plumbing, insulation, fencing, compound/foundation walls, damaged doors, or broken windows, could affect your sale. Such minor problems are examined by a professional home inspector, who evaluates everything meticulously.

Cost evaluation of an inherited property has many factors that play a massive role. Attributes like age, condition, neighborhood, location, and area solely decide the worth of a property. Also, if you have to go through a probate process you would have to provide the fair market value of the estate on the day of the deceased death.

  • Trustworthy Real Estate Agent

Selling an inherited property in NY is not an easy job, and when you are trying to list it in the market, you might need professional assistance which also stands as a must. After the property has completed its inspection, the second step is hiring a trustworthy real estate agent who will guide you through the whole selling process.

Here, you need to authenticate that the agent you have hired is local, authorized, and has good knowledge. You should hire an experienced real estate agent who has the skills of a real estate stream. He should also specialize in inherited homes.

  • Sell Inherited Property Fast For Cash

Listing an inherited property in the market creates a lot of fuss and is more complicated. Hence, selling an inherited house for cash is the best option to avail, as you get cash in return without hassles. If you have multiple siblings or beneficiaries, the distribution stands to be fair play. Some Real Estate companies in NYC, like ‘Elite Properties’ buy houses for cash in any condition of any age, which eventually cuts down your time and money.

One of the best advantages of We Buy Houses for Cash Company is that they buy your inherited property. After that, they renovate it and sell it further for the biggest return.

Find A Reliable Real Estate Company

And, the last step is finding a reliable real estate company. Inquiring for a reputable real estate company is a tremendous problem as you don’t know whom to trust in this niche. If you are facing any financial crisis and are not able to afford the repairs of the property, you can sell your home for cash as is, cutting the expenses in a stress-free way.

The ones who are trying to sell the inherited property in New York City can get in touch with ‘Elite Properties’, they have solutions for all your real estate issues and will guide you in your stressful circumstances. Hope the summits above will help you in the easy sledding of selling your inherited home.

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Best Ways to Avoid Repossession of Your Home

Best Ways To Avoid Repossession of Your Home

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Homeownership is considered to be the priority goal when it comes to the vision slate of Americans. It has been contemplated as a sign of financial stability among the majority of American communities for ages.

This is why, the thought of losing a home can be draining, not just financially, but, emotionally as well. If you’re facing a daunting situation where you’re not able to pay the mortgage payment, or you’re already in arrears then, it’s time for you to take complete charge and identify reliable ways to get out of the labyrinth. Otherwise, it may lead to repossession of your home.

What Is Repossession?

Repossession is the stage just before foreclosure. Foreclosure occurs when you fail to pay three consecutive mortgage installments whereas, the process of repossession starts when you miss your first monthly installment. Your mortgage lender would ask you the reason but, allow you to pay the pending installment the next time. In real estate language, this stage is termed ‘arrears’.

However, if you still lose out on the due installment, you won’t be provided with a grace period. The lender will issue a warning letter against you declaring that you can be evicted from the house at any time and the lender would have the right to sell your house. To avoid such a scenario, you’ll have to repay the outstanding mortgage debts immediately.  If you cross this stage without taking suitable action, your house falls in the foreclosure category directly.

Here are the best ways to avoid repossession of your home…

Evaluate Your Budget

Understanding the bifurcation of expenditures and income holds extreme importance. Many families follow specific guidelines for their monthly expenses considering the single revenue source.

For example-

  • Housing – 35% (rent, mortgage, taxes, repairs, insurance, and utilities)
  • Transportation – 20% (gas, oil, repairs, insurance, parking, public transportation)
  • Debt – 15% (credit card, personal loan, student loan, and other debt payments)
  • Other Expenses – 20% (groceries, medical bills, prescriptions, clothing, and personal items)
  • Savings and Investments – 10% (monthly contributions to retirement, investment portfolios, or savings account)

Rendered percentages above are subject to change or are tentative as the needs and family size vary from house to house.

Mortgage Payment Protection

If your emergency funds are not apt to fulfill the payment then, the next step you can take is checking whether you’re entitled to any benefits such as mortgage insurance. Mortgage Payment Protection Insurance (MPPI) is designed to cover mortgage payments in events such as mishaps, sicknesses, or redundancy. These are some of the whys and wherefores which eventually halt your income source.

Communicate With Mortgage Lenders

The moment you fail to repay your mortgage installment you ultimately fall into arrears. In such cases, the lender will contact you through legal and private mediums which are calls and letters. If you miss subsequent repayment demands, the lender can rightfully start property repossession proceedings against you. It is advisory to respond to the calls and repossession notices regularly to evade such circumstances.

As a precautionary measure, you can ask your lender to modify the term or negotiate the mortgage installments to make the repayment more affordable. Also, do not pay any extra fees or monthly charges if you have already made an agreement of repaying arrears.

Rent Your Home

If you have an alternative place to your home to stay, you could move out of your home and rent it to tenants. Consider having a conversation with your lender prior to migrating out of the house as they may charge a higher interest rate on the mortgage if you no longer reside there. Make sure the amount you charge as rent to the tenants, should cover the mortgage payment inclusive of the extra costs of being the landlord.

Renting your home or lodging a part of it would help in increasing your income which aids you in faster repayment of the mortgage.

Sell Your House

Selling a property in the market might not assure inevitability, but it might be the only way to stop repossession. If you are not able to keep up with the repayments or due to some financial crisis you should act quickly and sell your house.

There are several companies that make a proposal based on the current value of the property. Such companies have the cash and infrastructure organized to expedite a purchase. It gives you certainty concerning price and timescale, ultimately providing you with a higher value of the property. Companies like ‘Elite Properties buy houses within 3 days in all-cash offers.

‘Elite Properties’ is one of the companies that offer you, we buy houses for cash service in New York in your crucial time.

Final Word

Mentioned above are the tips to avoid repossession of your home that would surely help in your crucial times. Furthermore, you can contact reputed real estate companies in NY like ‘Elite Properties’ for smooth sailing of circumventing the repossession of your home.

Being one of the renowned facilitators of real-estate services in NYC, they assist their customers in every step. Therefore, keep patience, and connect with Elite Properties.

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Plan Of Action To Invest In A Second Home

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Purchasing a second home takes plenty of financial and mental planning. Beginning with the organization of your budget, assessment of your savings and finally investing in the property of your choice. Whether you are looking for some profitable investment returns or a second home, we have a few tips to keep in mind while buying.

Understand Your Needs

The investor must understand his or her needs while buying a second home – a good investment only suffices on proper planning. Asking questions like, Why do you need a second home? Where do you want it (in terms of the location concerned)? Are you looking for profits from this investment? What type of home do you want to buy? – will help in understanding the requirements better.

Factually, there is a thin line between investments and expenses. No buyer would like to exceed the limit of expenditure while thinking of investment. Further, needs can differ from an individual buyer or a family – considering who the buyer is. Inclusive of factors such as cost, location, and maintenance of the home relies on the amount spent.

Plan A Budget

One of the most useful tips to invest in a second home is planning on the budget. While many expenditures depend on a single income source, it is essential for a person to get the stats right.

Now, you might want to tally your budget by calculating all the foreseen expenses, which are basic home utilities, repairs, plumbing, maintenance, property taxes, and also mortgage rates. The cost of repair also depends on the type of home you are currently living in, whether it is a condo, a duplex, a bungalow, a townhouse, etc.

Assess Your Savings

If you are planning to buy a second home, it essentially becomes a point to optimize your savings. The savings in the bank helps in making the down payment of the second home, giving an idea of how many EMIs you might obtain in the coming future with added interest rates.

The capital in your bank saved could be assessed by considering the mentioned points below:

Clearing Debts

The lenders will have a look at your past purchases like car loans, student loans, etc. including credit card statements to make sure you have no debts to repay. To qualify for a second home mortgage, the buyer should not surpass the limit of a certain percentage of the pretax income.

Online Calculations

While doing research always have a look at the markets online, there are smart money and budget calculators that help in deriving the approximate debt. Such online platforms show how much money one can afford for the down payment of a second home.

Long-Term Financing

Unlike others, you might also want to make a down payment on your second home in a combination of savings and a loan. The higher the down payment, the lesser would be the loan’s repayment amount, the least amount is 20% which has to be paid by the buyer in regard to the purchasing price of the home.

As the percentage might be on the higher side for some people, channelizing your payments according to the ratio is important. Following points like, borrowing an amount against the life insurance policy, refinancing your car, and using the equity in your primary home are some of the best options available.

Apply For A Mortgage Loan

It is always very strenuous while apply for a second mortgage loan as the verification processes are much strict. As you are applying for it for the second time, credit score requirements are slightly higher for the second home than for the primary one. A buyer’s debt-to-income requirements are based on the size of the down payment and credit score.

Determining an affordable mortgage, inclusive of the hidden costs is also a point to be stressed. Other options like FHA, VA USDA, HELOCs, and conventional mortgages are also available for you to make the right decision in the first place.

Hiring A Real Estate Agent

Investing in a second home is quite tricky, an experienced realtor will always help you understand the market better. The advantage of hiring a real estate agent in NYC provides you with a wide range of properties in your location.

There are many benefits of having a real estate consultant at your side. After you have hired a consultant, you won’t be doing the research on your own. Less is more – as you cut down the burden of paperwork and legalities, everything becomes fair play. One must read the clauses carefully prior to approval and further proceedings.

Bottom Line

If you are thinking of buying your second home and looking for assistance, you can get in touch with a reputed real estate company in NY like ‘Elite Properties’. They will definitely help you find an apt solution for real estate-related issues.

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Tips to determine house value

Tips To Determine Your House Value

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Property values have levitated and tumbled over the past decade, but one thing will always remain the same, the value of your home will be associated with the value of other homes in your market. Many homeowners know the amount they have invested in their property including monthly mortgage, but not everyone knows what the current value of their property holds. So, how does it matter? If you are intended to continue living in your current house for the foreseeable future and repaying your mortgage then why would you care about its current market value?

There are a whole lot of reasons to know your home’s current market value such as – Insurance purposes, financial future planning, property tax, relocation, downsizing, or trading up, the possibilities are so many.

Online Research

In recent years, a proliferation of online resources has emerged to provide you with an answer before you actually consult any person in the specialized field. There are many websites at your service which offer an online home value evaluation. Such platforms help in examining the data for an estimate.

You would be asked to enter information about the property. Such as detailed measurement of the carpet area, super built-up area (in square feet), date of construction – completion, and the number of rooms, etc. After you have entered all the information given above, the online estimator will evaluate the property’s market value.

Other public records like property transfers, deeds of ownership along with tax assessments could predict your home’s value based on recent sales and listing prices.

BPO or CMA

In real estate broker price opinion is often associated with short sales and foreclosure, but many homeowners and companies like relocation firms call for them. While collaborating with buyers and sellers for listing price or examination value before acquisitions, real estate agents do a comparative market analysis.

A BPO or CMA is another method of estimating your home’s worth. Such evaluation methods rely on the recent sale value of similar properties in the local area or vicinity.

FHFA Index Calculator

Homeowners that are wary of AVMs could opt for the FHFAs House Index Price calculator. The Federal Housing Finance Agency’s House Price Index (HPI) is a broad measure of the movement of single-family house prices. The HPI calculator gives you an idea of how much your house is worth, and how its value of it has changed over the past years. The calculator is designed to help you understand the estimated value of your house.

Hire A Professional Appraiser

An appraisal is mandatory for any lender prior to approving a mortgage and carrying out an estimate. Hiring an appraiser is essential for a proficient outlook.  He will assess the condition of your home and provide an expert opinion on its estimated market value.

Things an appraiser will consider before evaluating the property are-

  • Verification of property’s existence, acknowledging the location and address in detail
  • Examination of the outdoors
  • A 360-degree evaluation of the exteriors of the home or the respective property
  • Listing down pros like – lakes, shopping centers, parks, etc. will add up to the seen desirability of the home
  • Verification of the area in square footage for accuracy in the database
  • Evaluation of the prevailing room numbers
  • Current conditions of the attic, basement, and garage including their measurements
  • Checking for damages (if any) in the property
  • Testing functionality and appearance of permanent features such as built-in appliances
  • Testing workability of the HVAC systems
  • Comparing recently sold homes in your area with your property to determine your home’s market value

Why It Is Important To Know Your Home’s Value?

If you are on the seller’s board then it is incredibly beneficial for knowing the property’s worth, as it helps to derive the estimate or listing price. Even if you are not planning to sell the house, it still stands useful for many reasons.

The benefits of finding a home’s value don’t end with a purchase or sale: Refinances, home equity lines of credit, insurance premiums, and annual property taxes are all based on home value

Determining a property’s worth would allow for evaluating affordability for things in the future.

How To Increase Your Home’s Value?

Little alterations make a big difference! There are many low-cost ways to add value to the home. Homeowners that can afford renovations can opt for it. Given below are some points you can consider to increase your property’s worth –

  • Spacing up and removing excess or unwanted furniture
  • Upgrading your kitchen, repairing breakages and polishing helps grab the attention of a buyer
  • Beautify and keep the bathroom clean
  • Painting dead walls and adding beautiful pieces that add to the beautification of the place
  • Replacing upholstery, rugs, and carpets
  • Hire a certified home inspector

Final Word

The tips for the assessment of your house’s worth given above would surely help you. Whether you want to sell it or just for an idea about the investment you have made to date in your property.

Furthermore, you can contact reputed real estate companies in NY like ‘Elite Properties’ to keep you safe from real estate crises and help in the smooth sailing of your plan of action for the coming times.

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Hidden costs of selling home in NY

Hidden Costs of Selling a Home in NY

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Selling a house is way more complicated than it seems to be. You have to take care of every in and out for ensuring a profitable deal. Of course, you’ll decide the price to sell your home but, still, you may fall in the pitfall of hidden costs and lose a handsome amount of money. Therefore, before you proceed to put your home for sale, you must be familiar with basic home selling issues and legal ramifications.

Here is a detailed list of hidden costs of selling a home in NY…

Pay Off Mortgage

If you have had taken a mortgage loan for buying a home then, it is crucial for you to pay it off prior thinking of selling the property. Legally, you can’t sell your home without paying your pending mortgage payments. The buyer might sue you for a fraud deal in future. To avoid such complications, we suggest you first complete your loan and then only think of the other way around.

Property Taxes

There are so many cases filed against homeowners in NY who didn’t settle the property charges and sold the home linearly.  However, the law states that you can’t enforce the buyer to pay the property taxes on your behalf. Once you sell your house then only he/she would be responsible for paying property taxes. Similar to the mortgage loan, you must clear out any outstanding property taxes.

Deed Transfer Tax

Since you want to sell the property in NY, you will be subjected to deed transfer tax or realty transfer fee. Most people get confused and consider it as property tax. Whereas, it is altogether a different entity that the government levies upon the seller as a part of the home selling process. When the buyer and seller agree on a fair market value of the home, they need to contribute some percentage of it to the government. Its value varies according to the states. For instance, you’re selling the home at $500,000. The government may ask you to pay 1% of the total amount. In another state, they may ask for a 2% share.

Estoppel Letter for HOA

If you are a member of Homeowner’s Association (HOA) then, you will require an estoppel letter or certificate from their end mentioning you’ve cleared all the pending dues or payments. The letter should include the name of the homeowner, their address, a brief description of the property, and the date of clearance of pending fee along with the authorized signature of HOA board member. Here, both the seller as well as the buyer is liable to pay the default fee. Therefore, speak to the buyer before finalizing the price of your property.

Home Inspection Charges

Sometimes, what happens is, people, ask for too much money while selling the property and end up disappointed. The reason is quite simple – Nobody will pay according to your expectations. Parameters like your neighborhood, condition of your house, and amenities it hold play a pivotal role in determining the fair market value of the property. Therefore, for deciding a fair market value of your house, you should hire a home inspector.

Attorney Counsel Fees

If you don’t have much knowledge about what legalities needs to be done while selling a home, it becomes imperative to contact an attorney counselor. They can help you understand the legal matters involved in selling a house in NY in details. Don’t be stressed about the fees because it is a plus point for you. An experienced attorney will ensure your documents are processed in the correct way. Furthermore, you can impart the perspicacity to your friends and relatives whenever they face a similar situation in the future.

Home Preparation Costs

In most cases, home sellers expect that the buyers would pay for the repairing and maintenance costs. To be honest, there’s nothing wrong in that. But, when it comes to negotiating the price of the home for sale, homeowners demand a high amount. This practice is not right. Homeowners should understand that the closing costs are directly proportional to the home selling price. So, as a home seller, if you’re asking for basic repairs, you’ll have to deduct its prices from the final market value of your home.

Closing Costs

All the above-discussed points fall under the closing costs. One needs to go through the entire process for closing a fair deal. However, if you feel that this procedure is exhausting and byzantine, you can simply contact an experienced real estate agent in NY. From handling the paperwork to listing your property for sale to closing the deal with 100% profitability, they assist you through and through.

Real Estate Company in NY

There are thousands of real estate companies in NY who claim to close the deal within a few days. Howbeit, that’s just an advertising gimmick. Don’t fall in the honey trap of fraudster real estate firms and choose a reliable and trustworthy real estate company like ‘Elite Properties’. After serving in New York for almost a decade, ‘Elite Properties’ is counted among the top-notch real estate facilitators in New York. Transparency is the main feature that drives their business. Therefore, you can approach their team for a hassle-free home selling experience in NYC.

The Bottom Line

A crystal-clear communication with the buyer and maintaining a fair practice in terms of fulfilling necessary legalities is the key to getting a favorable home selling deal. Furthermore, the guidance of an experienced real estate company such as ‘Elite Properties’ can also prove fruitful. Take your time and decide your plan of action. We wish you all the success.

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mortgage-loan

When you’ve lost the Job and Can’t Pay the Mortgage Loan

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A steady job is the most important parameter to keep up with the mortgage loan. If your boss has fired you or you have left the job due to the frustrating work environment, and you don’t have any other source of income to pay the mortgage then, we have some tips that can help sail your ship smoothly.

Stay calm and read the mortgage loan payment tips to understand what practical options are available for paying the mortgage loan when you’ve lost your job.

Calculate Your Money and Start Saving

First things first, try avoiding the stress as much as you can. Keep a positive attitude that everything is going to be fine. Without a stable mental state, you won’t be able to cope with the situation. Once you settle down, calculate the total money you have. By ‘total money’ we mean your savings and emergency funds. Once you know the total amount, outline your basic monthly budget and utilize the rest of the money for the mortgage payment. In the meanwhile, start searching for a new job. You will surely get one.

If this option is not feasible, you can try the next one.

Sell the Unnecessary Items

There are many household items such as furniture or kitchen accessories and even clothes which we don’t use on a daily basis. You can collect such items and sell them right away. A garage sale might seem an insignificant thing to do in such a stressful situation but, it could help you arrange mortgage loan payments. If you are worried about the buyers then, you can try placing free ads over various portals and holding an online auction. Otherwise, you can opt for a traditional way of selling.

Rent a Room

To be honest, there are thousands of people in NY who are looking for a suitable place to live. So, if you have an ‘extra’ room in your home then, you can try renting it out. Let’s say your family is small and you have got enough space to accommodate more people. In such cases, you can permit people to stay in your guest room or the room which is spare. It will not only arrange mortgage payments but also, give you the satisfaction of helping a needy person.

Contact Your Lender

Most people make the mistake of hiding from their lenders when they know they are short of money. Therefore, we want to specially tell you that it’s not a wise thing to do. Maintaining transparency is the key to convincing the lender. Please, make sure you talk to your lender at the earliest. Understanding your situation, your lender might offer you another plan on a temporary basis. For instance, your lender can ask you to go for the forbearance unemployment agreement. It allows you to repay the pending payments after a certain time interval. For the time being, you can pay less money. This will save you from losing your house. Once you get a job, you can fill the gap by repaying the mortgage amount.

Sell the House Before it falls under Foreclosure

‘Foreclosure’ means your property can be taken legally by your lender if you fail to pay three consecutive mortgage payments. If the foreclosure occurs, you won’t have any choice but to lose your home forever. Thus, foreclosure is extremely risky. You should do whatever it takes to avoid foreclosure. If you’ve tried other authentic ways and still you aren’t able to find a staunch solution, selling your home in NY is the last resort. Selling your property before foreclosure or a short sale will at least ensure you get some money back. This money can be helpful during a crisis until you have a decent job in hand.

Contact ‘We Buy Houses for Cash’ Companies in NY

Selling your house in NYC as soon as possible could be a hard nut to crack. The easiest way to approach the situation is to find a ‘we buy houses for cash company in NY. Such real estate companies help you throughout the transition right from listing your house for sale to speaking to potential buyers about the important paperwork. You don’t need to go deep into the legalities once you hire an experienced real estate agent. Just make sure to get in touch with a trustworthy and reliable real estate firm in NY.

Fraudster Alert

While we are advising you to take assistance from a real estate company in NYC, you must take care of a few things. To be honest, there are many fraudsters who will promise to sell your house fast but, when the time comes they won’t fulfill their commitments. Such companies ask you to pay in advance and then, don’t answer your calls/emails. Beware of sugar talkers and research thoroughly about the company’s past projects and clients on the internet. You can also take guidance from your relatives and friends who have relevant knowledge or experience associated with the real estate sector.

Final Word

Try to get a new job and meanwhile follow these tips to deal with the mortgage payment failure issue. Remember that every dark cloud has a silver lining. If you need assistance, you can contact ‘Elite Properties’, one of the highly reputed real estate firms in New York. The real estate agents at Elite Properties are known for being transparent and faithful to their customers. Most importantly, don’t lose hope and stay positive. It can work wonders for you.

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