When homeowners ask how to get a home sold, there is typically more to the question. For instance, some really want to know how to get it sold quickly, some are wondering how to sell a home to get more money out of it while others have a home languishing on the market and just want to know how to get the thing sold.
There’s no mystery to getting a home sold; it all starts with basic real estate principles and practices.
It’s important to know the current trends in your local real estate market before putting your home up for sale. Is it a buyer’s market – where there are more homes available than buyers? Or is it a seller’s market, with few homes available and lots of buyers?
Your local newspaper most likely covers your regional real estate market but this is also information you can obtain by asking your real estate agent.
This information is important for several reasons:
• If you can afford to wait to sell your home, the current market may be the deciding factor as to whether you sell it now or wait.
• It helps you price your home appropriately.
• It gives you an idea of what to expect during the time the home is on the market.
Another aspect of timing the sale of your home is the season. Home sales are seasonal and the ideal time to sell the home is in spring. This doesn’t mean, however, that homes don’t sell at other times during the year, even in the dead of winter.
In fact, although fewer homes are listed and sold in winter than in spring, the likelihood that you’ll sell your home is higher in the former than in the latter.
The number one reason a home sits on the market and doesn’t sell is price. To make matters worse, sellers of overpriced homes typically reject initial offers because they think they are too low, when, in reality, they are most likely close to the market value of the home.
In a buyer’s market, it’s even more important to price your home competitively. If you choose the right real estate agent, your list price should be very close to the home’s true market value. It’s up to you, then, to either lower it a bit to create more interest or to overprice the home and risk eventually having to drop the price.
It almost sounds trite in today’s real estate market to mention that a home needs to be cleaned and decluttered before putting it on the market. While the advice is common, it’s still very good. A clean home with maximum curb appeal will put your house above the competition.
Make repairs to anything that obviously needs it. This means dripping faucets, loose banisters, cracked windows – anything that a buyer will notice. These little things make it appear that the home hasn’t been maintained – something no buyer wants to take on.
We can discuss larger repairs and whether or not they should be tackled.
Your Realtor can make or break the deal. Keep that in mind when determining who to hire to assist you in the sale of your home. This is not the time to hire that friend of a friend or your Aunt Martha.
Choose your agent carefully and then work as a team, following up with one another frequently throughout the process.
Getting your home sold requires, overall, patience. Take your time with each step in the process, ensuring that nothing falls through the cracks. Listen to the advice of your real estate agent and you’ll soon be on your way to the next phase of your life.
Consider this: a mortgage program offers certain Americans a home loan with a zero down payment and no private mortgage insurance requirement. In addition, closing costs are limited and if the home is newly constructed, the builder must supply the buyer with a one-year home warranty.
Despite the obvious perks of the program, only 10.5 percent of the nation’s nearly 22 million veterans take advantage of this aspect of their Veterans Administration benefit offerings. When asked why, 33 percent of those who responded said they were completely unaware of the benefit, another group said that they went with the FHA loan because they assumed it was “easier” to obtain.
Obviously, the VA could be doing a better job informing (especially young) members of the military, veterans and surviving unmarried spouses about the VA loan and the mortgage industry could be doing a whole lot more to get the word out. So, today we’ll take a look at the program and learn why it may just be the best loan product on the market.
Remember, we aren’t VA, mortgage or financial experts, so consult with the appropriate professional should you have any questions regarding the VA home loan program and its benefits.
The basics of the VA home loan program
Like the Federal Housing Administration (FHA) program, the U.S. Department of Veterans Affairs doesn’t actually make loans, but offers lenders a guaranty, if the veteran defaults on the loan. Should this happen, the VA will pay from 40 to 50 percent of the balance of the loan (the percentage depends on the size of the loan).
As you can imagine, this promise enables lenders to relax when faced with a borrower who may have little or less-than-perfect credit and a lower-than-average income.
So, what can you do with the VA home loan program?
- Buy a home (a condo, too, if it’s in a VA-approved community)
- Build a home
- Simultaneously buy and rehab a home
- Buy a lot and/or manufactured home
Is the VA loan harder to qualify for than the FHA loan?
No-one quite understands why so many current members of the military and veterans assume that the FHA loan is easier to obtain. Although there are additional steps you’ll need to take when pursuing a VA loan, they are quick and somewhat easy (if you have the right lender).
To qualify, you’ll need to say “yes” to at least one of the following questions:
- Were you on active duty for at least 90 consecutive days during wartime?
- Have you served at least 181 days of active duty during peacetime?
- Have you served in the National Guard or Reserves for more than 6 years?
- Are you a widower or widow of a military service member who died either in the line of duty or as the result of an active-duty service-related injury or disability?
The biggest advantages of the VA loan
As previously mentioned, the biggest advantage of the VA loan is that you won’t have to put any money down. Now any conventional or FHA-backed loan for which a borrower submits a less-than 20 percent down payment will require the purchase of mortgage insurance (the Mortgage Insurance Premium in the FHA loan and private mortgage insurance, or PMI, with a conventional loan).
These policies cover the lender in the event the borrower defaults on the loan. This insurance, which benefits the lender should the borrower default on the loan, can add quite a chunk to your monthly mortgage payment. For instance, FHA’s annual mortgage insurance premium for a 30-year fixed-rate mortgage with 3.5 percent down payment is 0.85 percent annually.
The VA loan has no monthly mortgage insurance premiums, closing costs are limited and there is no prepayment penalty. With no monthly mortgage insurance premium, the veteran’s house payment each month will be less than if he or she had obtained an FHA loan.
The VA home loan process
Yes, there are a few more hoops to jump through when dealing with the VA. Eligibility requirements, however, are much like those for FHA and conventional loans:
- “Suitable credit.” The VA doesn’t really explain what they mean by “suitable.”
- You should be able to prove that you have the income to cover all your bills and the house payment.
- You must live in the home (you can’t rent it out).
- You must present a VA Certificate of Eligibility (COE). Most VA-approved lenders can access your COE online or you can access your COE on the eBenefits page of the VA website.
The biggest hurdle for vets is that these loans are provided by lenders and they all have their own guidelines. Shop around until you find one that you feel you can work with.
Rent control in L.A. primarily applies to multifamily buildings built before October 1978. When a new tenant moves in, a landlord can set the rent as high as someone is willing to pay, but rent increases in subsequent years would be capped — recently at 3%.
Tenants in rent-controlled buildings have strong protections against eviction to ensure landlords can’t kick them out to charge higher market rents.
But under the Ellis Act, passed in 1985, landlords are able to evict tenants if they intend to either take the housing off the rental market or demolish the building to put up new apartments.