Buy a House Fast

When housing prices collapsed, may people– in fact at least 25% of Americans – suddenly found themselves with mortgages that exceeded the current value of their home. This has been especially true when people bought with little money down and have no equity in their home.  As noted in previous blogs, this has encouraged some homeowners to walk away from their homes because they couldn’t pay and for others to strategically default because they didn’t think it was fair they had to.  The underlying assumption is that people bought a home they couldn’t afford.

So other taxpayers griped, “Why should they get help?”

The fact is many people who bought homes with payments they could handle have been caught in a negative equity situation when things changed.  The Wall Street Journal recently published an interesting case study that illustrates the problem.

A New Jersey couple with some real estate savvy and limited resources bought a modest home in 2004 when interest rates were low.  To avoid having to pay PMI, they also took out a second loan to increase the down payment.  At closing, the couple was surprised to learn that the second mortgage was actually a balloon loan due in 14 years.  They were taken aback but anticipated that within 14 years, they would have refinanced, plus they would be a two-income family.

By 2010, their $328,000 home is worth $270,000.  They are happy in the home and have no plans to abandon it or sell it at the moment—but they do feel trapped.  If they wanted to accept a job elsewhere, they couldn’t sell it now unless they wanted to take a loss and live under a bridge in their new city.  They can’t take out a home equity loan to put on an addition or make improvements, as they have no credit left on their home equity line.

What they are caught up in is what many responsible homeowners face.  They did not expect their home to be like a car that loses a big chunk of value once they drive it off the dealer’s lot.  Because the man has a steady job, they consider themselves “technically underwater but not drowning.”  They have negative financial equity alongside great “sentimental equity.”  However, they wish they had waited to buy.  The one baby they expected when they bought the home turned out to be triplets, so they are painfully aware that their lost value could have paid for a good chunk of the college education bills they will face shortly after their balloon payment is made.

Irresponsible homeowners have dominated the news in the mortgage crisis, but people like those described here are caught up in this mess too.  If this describes your state of affairs and you need to move, Express Realty Services may be able to help you.  We can help you sell your home quickly if you need to sell. In fact, we guarantee to sell your home in 60 days or less, or we’ll buy it. Through our sister company Express Homebuyers, we also buy homes for cash.

When most people prepare sell their homes, they try to spruce it up to attract a new buyer.  This may mean a little painting, decluttering, and staging or could go into more major things like replacing the roof or the carpeting. Despite all the press about how competitive a seller must be in this market, some still cling to the idea of “why should I fix this up for someone else?”  They want to sell “as is.”

Ideally, sellers should have a game plan years in advance and schedule improvements that provide family enjoyment and good potential resale value.  Things like decks, modernized kitchens and baths, and finished attics offer a nearly dollar-for-dollar return at resale.  (This assumes they were not done 30 years ago and are now out of date!)  Additions and renovated offices may serve the seller’s needs but don’t translate into as high return at selling time.  Amenities like pools may even be deterrents to buyers.

But then…

Many people live in their homes without any plans of moving on, so undertake projects as time and money permits – or not.  Then, life happens. A job transfer, a divorce, an empty nest, a change in health, unplanned love of a home in a new development…  Suddenly, moving is a priority.  When they want to go, selling the house “as is” seems like a great idea.

It is true that new buyers come in with their own ideas of how they want to decorate.  Most potential buyers look at any home and think about what they would do in the future. This does not mean they want to pay top dollar for a home with” possibilities“ – and green shag carpeting, harvest gold appliances, and disco mirrors in the basement just won’t cut it.

What to do on a budget…

A good Realtor® will help the seller sort out what needs to be done.  If the sellers are on the verge of foreclosure or bankruptcy, major renovations are probably out of the question as they are too cost.  The seller still must still do the basics of cleaning and painting the house to give it fresh look and then work with his Realtor® to price it aggressively.  The Realtor should prep the seller for a low offer and more time on the market.

For people who need to sell, Express Realty Services can sell your house fast.  There is another answer. Our sister company Express Homebuyers can buy your home outright with no closing costs.