Are you moving to a new home? Or simply wish to make profits from the property in which you have invested? You can then rent your home.

Well, if yes, we completely understand the debate you are having in your head about whether to rent or sell your home.

The choice for anyone depends on various factors such as financial situation, market conditions, costs, and so on. So, what would be the most appropriate decision for you?

Both renting and selling the home have their pros and cons. You need to figure out what suits best for you as per all the conditions and factors around you.

So, let’s understand some of these factors that will help you decide if you should rent your home instead of selling it or not.

When Should You Rent Your Home?

If you are looking to make some extra monthly income, renting your home is a go-to option. But you also need to ensure that after incurring the additional expenses and taxes, you are still making a profit.

Here are a few factors that may support your decision to rent your home.

You Are Temporarily Moving

If you are moving to a new home temporarily, you may later require to return to the place where you are currently residing.

The reason could be anything, a temporary job shift, or temporary shifting to a location for some specific purpose. Renting your home in such a scenario will give you relief. You’ll have a home to live in when you return.

Not only this but renting a home could be comparatively hassle-free and cheaper. It is easier than finding a new home when you return.

You Want To Invest The Rental Income

As renting your home will give you a regular income. If you are looking for some extra earnings by investing this income, renting could be better for you than selling your home.

You could try various methods of investing. It can be rental income such as fixed deposits for reaping interest, government schemes, and so on.

Alternatively, you could also use the rental income to pay the EMIs of your new home if you have purchased it on loan.

Your Cost Of Renting Is Low

You can gain money in both renting and selling. However, renting and selling both have some costs involved.

What majorly determines your decision of whether to rent or sell your home is the profit that you gain after incurring all these costs.

The costs of renting may include home repairs and maintenance, insurance, taxes, the cost of vacancies, and so on. If these costs are low for you and if you are able to make enough profits, then renting your home could be a good choice for you.

When Should You Sell Your Home?

If the above-mentioned factors are in your favor you should go for renting. If not, then below are some factors that will help you make more sense in selling your home.

You Need Cash To Pay For Buying A New Home

If you are moving to a new home and you require liquid cash for purchasing it, you could sell your current home and utilize the proceeds from the sale for buying your new home.

Also, you are not required to opt for any mortgage loan and undergo the long approval process if the equity of your current home is enough to buy a new home. As a result, it will help you to pay your new down payment.

In case, your current home is the only one you could rely on to pay for purchasing the new home. So, there is no point in thinking about renting your home.

You Aren’t Ready To Become A Landlord

Renting your home can help you generate a passive income, but becoming a landlord comes with a lot of responsibilities. You also need to be prepared to take the additional expenses such as home maintenance, repairs, taxes, and so on.

You are also responsible to find “good” tenants and take up the cost of vacancies if any.

You may also reach out to some property management company to look after all these things. But they would charge you a percentage of your rental income. This will cause a reduction in your profits.

If you aren’t ready to take up all these responsibilities and costs as a landlord, deciding to sell your home may sound good to you.

You Are Existing In A Seller’s Market

If you are in a seller’s market, where the number of buyers is more than the homes available for selling, then you should think about selling your home.

As the buyers in such a market have a limited number of options to select from. You can manage to get more attention to get your property sold.

You may also get an opportunity to increase the value of your property. You can also get genuine buyers that will pay the value that you desire.

If you think you will be able to incur the associated selling costs yet make enough profit by selling your property in such a market than the rental income that you could get, selling your home more would make more sense.

Final Thoughts

Deciding whether to rent or sell your home, requires you to analyze certain important factors as mentioned above such as costs, profits, responsibilities, market conditions, and so on.

It is also important for you to understand your goals and consider your financial situation and lifestyle choices while deciding whether to rent or sell your home.

In addition to conducting thorough research, you can also seek the opinion of a professional real estate agent or company. They may help you to make the most appropriate decision by providing you with information about the current real estate market conditions, the value of your home, or the rent charged in your area.

Get in touch for a more expert opinion!

Having a real estate broker by your side is exceedingly indispensable when trying to sell your home. You need several networks and the real estate market know-how to crack a good deal. You have to search for the Flat Fee Real Estate Broker.

However, it isn’t so favorable to pay hefty commissions to these real estate brokers to get your job done. Especially if the commission rates are too high.

Here’s where having a flat fee real estate broker can be your go-to strategy to sell your home. But how far is selling your home through a flat fee real estate broker beneficial for you?

Let’s try digging more into this.

How Does the Flat Fee Model of Real Estate Brokers Work?

When a real estate broker charges a fixed fee rather than a percentage of the sale, it’s a flat fee.

For instance, in a commission-based transaction, you may pay 5% as a commission on a sale amount of $200,000 to the broker. However, in a flat-fee transaction, you will pay a fixed amount for the above sale, which could be $3,500.

So basically, if you pay the broker a commission of 5% on the sale of $200,000 you would pay $10,000.

While, if you are paying a flat fee, you may pay the same amount which is $3,500 no matter if the house sells for $100,000 or $1,000,000.

Pros Of Using a Flat Fee Real Estate Broker

You can win a great deal for your home using a flat fee broker. Below are some pros of flat fee real estate brokers that you must consider.

1. Getting More Control:

At times having more control over the selling process can be advantageous for you. As a result, you could have the ability to make several decisions following your preferences and convenience.

By using a flat fee broker, you may get control over many important selling aspects such as deciding the home price, handling negotiations, or selecting options to market it.

You may also get control to decide if you want to have an open house and not be at the mercy of the broker’s schedule.

Not only this but with some flat fee brokers you may also get the authority to decide if you want to sell the home with the full support of an agent or with a limited one.

2. Saving More Money

As the flat fee charged by the broker does not depend upon the selling price, it can potentially be less and you may end up saving more money. In other words, you may save more of the proceeds from your final sale amount after paying a fixed fee.

In the above example, whether your sale amount is $100,000 or $1,000,000, you shall pay a fixed flat fee that is $3,500. If your sale amount is greater, you may save more under the flat fee model.

It is also observed that usually flat fees are lower than commissions. Hence, you may save money. However, it also depends on the terms that you agree upon with your broker.

3. Proper Budgeting:

Flat fees are mentioned in the listing agreement and usually do not vary as per the final sale amount of your home.

Hence, as a seller, this helps you to do proper budgeting to make things fall in place properly.

It’s especially helpful when your budget is tight. You know what fee exactly you will pay the broker and plan accordingly on your net proceeds.

If you are a seller who is tight on budget and prefers knowing promptly what you will have to pay the broker before your sale to avoid any kind of uncertainty, you should go for a flat fee real estate broker.

Cons Of Using a Flat Fee Real Estate Broker

Even if you may potentially pay less using a flat fee model, it has drawbacks too. Here’s what you need to consider.

1. Getting Limited Services:

Getting more while paying less is something very rare, as you usually get what you have paid for.

A flat fee broker may not provide all the services that he/she would have while working on a commission-based model.

You may get very limited services. The broker may also list your home only on the local MLS which is just not enough to get a good deal.

However, it is not bad to get a few services for paying less, but it still depends on your selling goals and the current situation that you might be in.

2. Earning Less Profit:

You may sacrifice your profit if you choose to use a flat fee real estate broker.

This is so because flat fee real estate brokers have less motivation (no incentive) to negotiate and get you the best deal with top dollar for your home.

Flat fee brokers usually consider volume to make it big and hence, they may not dedicate much time and effort to negotiating to increase your profit.

3. Paying for Additional Expenses:

You can save more money by paying a flat fee and not high commissions, but you may also have to incur some additional expenses.

You may require to spend on marketing, pricing, and other closing activities, which otherwise a commission-based agent would have done.

Your flat fee agreement may include only listing your home on MLS. For attracting more buyers, you are required to incur additional expenses. Hence, it is recommended to consider these expenses before you go for flat fee brokers.

Bottom Line

A flat fee model can help save money, but on the other hand, you also need to be ready to handle other activities associated with selling on your own.

So, depending on your goals you could thoroughly analyze both the pros and cons and decide as per your situation and objectives whether to go for a flat fee real estate broker or not.

For expert opinion contact Elite Properties today!

Pricing your home is the heavy lifting that you need to do when you make up your mind to sell it.

A home’s price is determined by several relatable factors that are unique and different in some way.

It could be that you are considering moving to another area or that you simply want to live in an upgraded house, but selling the existing house can be just as challenging as finding a new one.

There would have been many questions on your mind. This applies especially to the price of your home, such as whether to price according to market value or above or below it.

Figuring out the sale value of your property can be complex and tricky.

It could be difficult to decide what features of your home can help you get a higher value and what cannot. Additionally, how to do pricing concerning the market value of the house can also be tough.

However, if done right you are not far from cracking a good pricing deal for your home while selling.

So, let’s take a look at some expert suggestions and guidelines below on how you can determine an appropriate price for your home for sale.

How To Price Your Home Appropriately?

Use Online Home Value Estimator:

The internet is loaded with tools to estimate your home value for sale. Using an online home value estimator can be a good start for deciding the price of your home.

You need to enter certain details and answer a few questions. As a result of which, the online home value estimator shall provide you with an estimated range of valuation for your home.

It usually finds the available data such as the current value of your home by comparing your property and its features with some other similar listed properties that have a recent sales record.

Online home value estimators shall only provide you with a reasonable price. They do not give the exact data required to do proper pricing for your home. However, it can still help you to get a kickstart.

Connect With a Local Real Estate Agent:

An online home value estimator can just provide you with an approximate idea about the pricing of your home as these estimators use limited data.

Therefore, the next step that you need to take is to approach a well-experienced local real estate agent.

The agent may consider the factors that an online home value estimator may not, such as the recent advancements, the locality of your property, and local buyer opinions and beliefs in the region.

Not only this but the agent may also tend to have inner information about the ongoing sales of homes in your area. The agent can provide you with the best piece of advice on valuing your home at the fairest price.

Conduct Comparative Market Analysis (CMA):

As the housing market conditions change dynamically with time, it is important to stay updated and switch the recent updates and trends for pricing your home rightly.

Conducting a comparative market analysis (CMA) is one of the best ways to price your home for sale appropriately.

You could ask your real estate agent to do this analysis. He/she should review and compare the information about the most recently sold homes in your local market. These are called ‘comparables’ or ‘comps’.

In other words, comparables are homes that are similar to yours and are recently sold. They could be similar in terms of amenities, structure and size, location, and so on.

These comps can be a good consideration when pricing your home for sale.

Know Your Housing Market:

It is crucially important to understand the housing market you are in. The pricing strategy that you shall adopt will be greatly influenced by this.

Usually, there are three types of markets based on which you can decide the pricing of your home:

Seller’s Market:

In this market, the number of buyers is more than the number of homes for sale.

As a result, you can price your home slightly higher than the market value for your home, as the buyers here are contending for fewer homes.

Buyer’s Market:

In such a market, the number of homes to be sold is more than the number of buyers.

Hence, you are required to price your home slightly less than the market value for the house to attract buyers.

Neutral Market:

This type of market has a balance between the number of homes to be sold and the number of buyers for the same.

You need to make sure that you analyze your comparables and try to keep prices accordingly and compete to attract buyers.

Considerations When Setting Your Home’s Price:

While strategizing about the price of your home, you may fall for some common mistakes. That is why the below considerations should be viewed to specify the right price.

• Set aside your emotions to determine a realistic price for your home.
• Don’t overemphasize home improvements, as not all renovations and upgrades have higher ROI.
• Try to understand the buyer’s perspective while setting the price.
• Adjust the price or strategy as and when necessary.

To Sum Up

By applying the above guidelines for pricing your home, you are less likely to disappoint your potential buyers by quoting an overvalued price. You can be assured that you are not underselling your home.

Make sure that you are conducting a profound comparative market analysis and approaching a trusted real estate agent. The more data you collect, the higher the chances are that you will quote the right price for your home.

For more proficient recommendations, get in touch today!

Are you ready with your checklist for house hunting?

If yes, then ensure that you do avoid the most likely mistakes that may hinder you from buying your dream house. Whether you are house hunting for your first home or be it second, you may fail to commit these mistakes.

House hunting is not as easy as just visiting a few houses and choosing the best one. Along with following the best house-hunting practices, you also need to ascertain that you do not make mistakes that can cost you both time and effort.

Your house-hunting process can become more systematic if you are ready with the right pre-requisites.

So, let’s make your house-hunting process smarter and easier by diving deep into the four huge mistakes that you should avoid while house-hunting.

Not Getting Mortgage Pre-approval

You must have made up your mind about house hunting and may have also estimated how much you can spend. The next action step that you shouldn’t miss is meeting a lender and getting a mortgage pre-approval.

Get a mortgage pre-approval before involving an agent in your house search and starting the house-hunting process.

You may be at risk if you are trying to buy a house beyond your budget without mortgage pre-approval. On the other hand, you might also lose the chance of buying your dream house due to a lack of insufficient financial proof.

Hence, it is highly advisable to get the mortgage pre-approval once you have made up your mind to go for a house hunt. This will be advantageous to you in two ways:

• It will give you a clear idea of what amount of money you will need to spend as well as the exact amount of loan you will be able to borrow.
• It will help you gain the seller’s confidence for closing the deal when you get the house you might be interested in.

When you meet your lender to obtain the mortgage pre-approval, he/ she might ask you for documentation such as proof of income or your credit score. He/she might also evaluate your debts if any that already exist.

Once the verification is done your lender shall issue a letter of mortgage pre-approval if you are eligible. This will take you a step closer to making a strong offer while buying the house.

You Are House Hunting Without an Agent

As online house listings are available, you may think of going on a house hunt all alone. Probably, you might intend to save up on the commission.

But sometimes house hunting without an agent might cost you more or you may even lose up on the house that you have always dreamt of.

Also, usually, the seller pays the commission to the agent. Hence, you don’t have to worry about spending extra on the commission charges.

You might also get access to new house listings that wouldn’t even be known in the local real estate market where you are trying to find a house if your agent has a strong network.

With his expertise and knowledge, a good real estate agent can help you select the best options for your house hunting.

So, if you wish to make your house-hunting process more efficient, you should get the help of a real estate agent.

Ignoring The Price, You Can Afford

Ignoring the price that you can afford can be a significant mistake that you may make which will leave you dissatisfied.

You may likely fall for houses that are beyond your spending limits while you go on a house hunt. It is absolutely essential to be self-aware of how much you can afford.

Some houses may make you feel very tempted because of their interior, spacious rooms, high-end appliances, or top-notch location.

However, it is good to buy a house that pleases you, but if it’s beyond the price that you can afford, you may go into a state of stretching your financial means.

You may try to arrange the extra amount that you cannot afford. But you should also realize that arranging the extra amount can increase your expenses as you may require to pay interest if you are buying the house with a mortgage.

Sometimes, you may also control your emotions and try to buy some other house than the one you like which is beyond your budget. This will leave you with deep dissatisfaction.

This is why it’s important to recognize and consider the price range that you can afford. Your best bet is to identify and explore the house listings within your budget.

Not Considering the Locality

Once you have decided on the housing options to be considered further for buying, try to assess the neighborhood of the selected options.

Look for various factors in the neighborhood, because it is as crucial as buying the right house.

It shall not be a good choice to purchase a suitable house in a locality you may never prefer.

Evaluate the surrounding area, community in the neighborhood, availability of public transportation and necessary infrastructure, and the time to commute to places that you visit daily like your office, gym, and so on.

Also, ensure the availability of vital amenities that are important to you.

Choosing an unsuitable locality may again lead you to hunt for another house in a good locality.

It’s wise that you effectively consider the locality and neighborhood while narrowing down your housing options.

Bottom Line

House-hunting is a challenging process but can be made effortless if you are aware of the problems that you may face and the mistakes that can cost you both time and effort. Buying a house is a big decision, so making rational and realistic choices without being impulsive can be immensely beneficial for you and your finances.

For making the right decision, get expert words of advice for your house-hunting need from Elite Properties. We buy houses in any condition and provide fast cash offers. Call us at 718-977-5462 today.

One of the most heartbreaking ways to lose your home is if you can’t make your mortgage payments or if you’ve fallen behind on them. For borrowers who are in a situation where their house is on the verge of foreclosure, there is still some hope. Introducing… Loan Modification.

In a nutshell, loan modifications can make your life stress free by ensuring you pay your current mortgage and save your home from foreclosure.

In this article, we will take a deeper look at what loan modification is all about.

Little More about Loan Modification

A loan modification occurs when the lender changes the loan terms. Loan Modification is an acceptable agreement between the lender and borrower. In it, the lender gets paid and the borrower keeps the house. The modification may be a decrease in the interest rate, extend of the payback period, or a new type of loan.

In most cases, loan modifications are only available in circumstances wherein the borrower is unable to make full payments and their credit is not sufficient to refinance the loan.

For such cases, the option of refinancing is the ideal solution.

Under What Circumstance Should A Borrower Choose The Loan Modification Route?

Loan Modification is a tool for people who are in a lot of trouble and have no other way to save their homes.  It is not for everyone, and it is important to speak with a professional to see if it is the best option for your particular situation.

A borrower who is experiencing a temporary setback is eligible to request help from the lender with their mortgage. In some instances, a lower payment could help the borrower get through the difficult patch and prevent foreclosure on their home.

Generally, loan modifications occur when one is unable to repay the original loan. The attorney or workout company will help you negotiate modification procedures.

How Do Loan Modifications Work?

Although loan modifications can be requested for any type of loan, the most typical loans for which they are requested are secured loans such as mortgages. In the event of possible foreclosure, the lender may be open to modifying the terms of the loan after he/she has concluded that a foreclosure would be a more expensive route than a loan modification which is beneficial to both parties in the long run.

Are You Qualified For A Loan Modification?

It’s not possible to get a loan modification for everyone who’s having a hard time paying their mortgage. To be eligible, homeowners must either be behind on their mortgage payments or be delinquent— they are paying now but there is a risk that they will delay.

Some of the eligibility criteria for a loan modification include job loss, spouse death, and permanent physical or mental issues/injuries that render you disabled and unable to repay the mortgage.

What Are The Benefits of modifying your Loan?

One of the main benefits of an extended term is that it directly affects your annual interest rate. Your 30-year mortgage can become a 40-year mortgage. In exchange for this, you will receive the following benefits:

• A reduced fee makes it possible to provide the borrower with some respite to make it through.

• The opportunity to keep the house as banks would choose to avoid going through the costly process of foreclosure whenever possible.

Loan modifications allow the homeowner to continue making payments.  While at the same time keeping the house is the most beneficial resolution for both concerned parties.

What Are Some of the Drawbacks Of Getting a Loan Modification?

A modification to an existing loan may be a costly but necessary lifeline. The following are the drawback of choosing this path:

• Your loan will most likely end up costing you more money in the long run. This indicates that the greater the number of years added, the more interest you will pay throughout the course of the loan.

• Loan modification is a time-consuming process. We need to get all the necessary documentation such as pay stubs, bank statements, and tax returns. Also, you have to fill out a spreadsheet that compares your income to your expenses. It is mandatory for loans to get modified. You will need to submit a hardship statement explaining why you need a loan modification.

• Depending on how serious your situation is, your loan modification will not approve. You need to provide evidence that you are capable of repaying the loan to win the lender’s trust. If you are actually unable to afford the home, the bank may decide to deny your request for loan modifications. Bank may leave you with the option to short-sell your house.

Loan Modification Programs for You.

• 1. Conventional loan modification (Flex Modification Program) – If you want conventional mortgages, you have the option to go through FMP. FMP will help you reduce monthly payments by 20%. Also, you can extend the term up to 40 years and lower the interest rate.
  
• FHA loan modification – FHA loans include various strategies for borrowers. It gives them the option to reduce payments with an interest-free loan for 30% of the borrower’s balance. The borrowers will only have to pay the remaining part of the loan. After that, he can pay an interest-free loan when the home is about to sell. In this Pandemic, the borrowers also have the option to get a lower rate and also a 25% cut on the monthly payments. FHA borrowers have the option to extend loan terms up to 40 years.
• VA Loan modification –Borrowers with VA Loan can add their missed payments back to their loan balance. Borrowers will work with lenders for a new manageable repayment schedule. They also have an option o extend their loan.
• USDA loan modification – Borrowers backed with USDA loans have the option of modifying the mortgage. It gives an option for you to extend the term for 4o years, lowered the interest rate, and get a “mortgage recovery advance”.    All these programs in the end increase the loan balance due and the total interest paid.  If you have a permanent loss of income your best bet might be selling and moving to a less expensive home or renting.

How to apply for Loan Modification?

1. Collect data about your financial position.

2. Make a plan for your case.

3. Contact your servicer

What Happens to Your Credit Score When You Get a Loan Modification?

If you are considering going for a loan modification, chances are your credit score has already slipped. The majority of the borrowers involved in the procedure are already past due on their payments.

While you’re going ahead with the loan modification process, the “paying by modified terms” remark is on your credit report.

While you’re paying your loan on time, there may be a chance to have a positive impact on your credit score. This positive impact in turn makes up for the previous negative impact.

If you are not sure about this, there is an option for refinancing the loan at a later date as well if necessary.

To know more about the options available to you, contact Elite Properties NYC, one of the companies that buy houses for cash in any condition.