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Buying or Selling a Home With Pest Issues Buying a Home With Pest Issues Purchasing a home with pest issues can be a major concern, as pests can cause damage to the structure of the home and create health problems for the occupants. It is important to have a professional pest inspection completed before purchasing a home to identify any existing or potential pest issues. Pest infestations can have serious consequences for the integrity of a home and the health of its occupants. Termites, for example, can cause significant damage to the structural wood of a home if left unchecked. Other pests, such as mice and rats, can damage wiring and insulation, posing a fire hazard. They can also carry diseases, which can be transmitted to humans through bites or contact with contaminated surfaces. It is important to have a professional pest inspection completed before purchasing a home to identify any existing or potential pest issues. A pest inspector will look for signs of infestations, such as droppings, nests, and damage to wood and other building materials. They will also look for potential entry points and conditions that may attract pests, such as excess moisture or standing water. If the inspection reveals the presence of pests, you should consider negotiating with the seller to have the pests treated or for a credit towards the cost of treatment. You may also want to consult with a real estate lawyer to determine your rights and options as a buyer. In addition, you should consider the long-term cost of pest control and make sure it is factored into your budget for maintaining the home. Pest control can be expensive, and it is important to have a plan in place to address any future pest issues. Selling a Home With Pest Issues If you are selling a home that has pest issues, it is important to be proactive in addressing the problem and transparent with potential buyers. Pest infestations can be a major concern for buyers, as pests can cause damage to the structure of the home and create health problems for the occupants. The first step in selling a home with pest issues is to have the pests professionally treated. A pest control company can figure out how bad the problem is and suggest a plan for treatment. Make sure to do what they tell you to do and give the treatment enough time to work. It is also a good idea to have the home re-inspected  to ensure that the pests have been effectively eliminated. Next, it is important to disclose the pest issue to potential buyers. Most states require sellers to tell buyers about any major problems, like pest infestations, that they are aware of. This can be done through a property disclosure statement, which should be provided to potential buyers as part of the home sale process. It’s important to be honest and clear in your disclosure, because not telling the truth about known major flaws can cause legal problems in the future. It is also a good idea to provide documentation of the pest treatment, such as receipts or a certificate of treatment. This will show that you have taken steps to deal with the pest problem, which can help buyers feel less worried. Lastly, you might want to think about giving the buyer a credit toward the cost of future pest control. This can help ease their concerns and make the home more attractive to potential buyers. If you can’t offer credit, you might have to lower the price of the home to make up for the cost of pest control. It is important to be flexible and open to negotiation in order to make the sale. Final Thoughts In the end, whether or not you buy a home with pest problems will depend on your personal situation and how willing you are to take risks. If you are okay with how much it will cost and how much work it will take to get rid of the pests and are sure that the problem can be solved, you might want to think about making the purchase. However, if the pest issue is significant or the cost of treatment is prohibitive, it may be best to look for a home without pest issues.
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Can I Sell my House During Foreclosure Introduction For someone who is unable to keep up with mortgage payments or other liens on the home, the foreclosure process is frequently drawn out and difficult. For those who are currently going through this process, there may be ways to continue without losing everything. Because of this, the people who live in the house can stay there until the dispute is completely settled. The homeowner should stay in their home, talk to a real estate lawyer, and do research to avoid a situation in which debts may still be owed for different reasons. This might result in a better outcome. The house can still be sold for a profit while the foreclosure process is ongoing. The current owner may sell the property for more than what is owed in mortgage payments if the property has not yet been sold through an auction. This would then generate enough income to pay off the mortgage debt and leave money on the table to buy a new home or rent or lease an existing one. This has to be completed, though, before the property is sold at auction to fund the foreclosure process. This calls for prompt action and proper documentation Aspects to Consider with Foreclosure A bank agent who starts the foreclosure process may be contacted by someone who is unable to make the required mortgage or loan payments to keep the account open. The homeowner may have other options, though, as these processes can take months or even years, depending on a number of factors. In some circumstances, the financial lending company may look for an alternative to foreclosure. It’s possible that a payment extension will be given. It might be possible to refinance or make a new payment plan by adding to the original agreement. Before leaving the property to foreclosure, it is best to get in touch and talk with the company to discuss any potential alternate routes. Others look at the contract for the lending facility to see what might be possible based on the fine print. To make sure that the payments are made at a lower interest rate or payment amount, another company may be contacted, or there may be a grace period to get the needed funds. Before taking any other action, it is best to seek the advice of a real estate attorney if this is not possible. He or she might explain that the best course of action might be to sell the property. However, the homeowner might only have a limited amount of time to do so. This means that before continuing with a sale before an auction, he or she should make sure that all of that information is known. Hiring a Real Estate Lawyer or Agent While the home is going through the foreclosure process, a seasoned and knowledgeable real estate agent might be able to get in touch with the lending institution and try to negotiate so that the property has time to sell. This may be a good way for the agent in charge of the case to make sure the homeowner gets their money, even if the bank or another institution won’t work with them. Before the sale can happen, a realtor might need to conduct a market analysis on the property to determine its true value. Then, to bargain with the bank, third-party authorization forms are typically required. In general, it is preferable to sell the house for a profit as opposed to a short sale or auction, where the owner receives nothing after the house is bought by the buyer. Due to the foreclosure process costing the company money and not always recovering all of the money owed, lending institutions believe working with the sale is a better alternative than going through with the foreclosure. It might take 90 to 120 days to complete a short sale in which the owner receives no money. During this time, the homeowner may still be making mortgage payments. Depending on the state in which the house is located, the foreclosure process can take weeks or months to complete. The completion of all paperwork can occasionally take up to or even longer than a year. Depending on the state, the owner usually has up to 90 days to fix a late payment so that the problem can be fixed and business can go on as usual. A realtor or real estate agent should be hired to help sell the house if this is not possible. A real estate lawyer should be hired to handle these things from start to finish to make sure that everything is valid, legal, and done the right way.
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Closing Costs – What to Expect When you sell your house, there are many hidden closing costs that can eat into your profits. This article highlights what those common closing costs are. From agent commissions to transfer taxes, it’s important to be aware of all the potential expenses. One of the biggest costs you can expect is the real estate commission. This is a fee paid to the agent who represents the buyer. The commission is typically a percentage of the sale price, so it can add up to a significant amount of money. Fortunately, many closing costs are tax-deductible, and they can be offset against the proceeds of the sale. However, it’s important to be aware of all the potential costs involved so you can budget accordingly. Below are some of the most common closing costs and how you can budget accordingly: Agent commissions: Realtor commissions are the fees real estate agents charge for their services. The fee is typically a percentage of the total sale price of the home, and it is paid at closing. While realtor commissions can vary depending on the agent and the market, they are typically around 5-6% of the sale price. For example, on a $200,000 home, the realtor commission would be $10,000-$12,000. Realtor commissions are negotiable, and some sellers may negotiate a lower rate. However, it is important to remember that the real estate agent is providing a valuable service and is entitled to fair compensation. It is important to understand realtor commissions so you can factor it into your budget. Appraisal fee:  A home appraisal is an important part of the closing process on your home purchase. The appraiser will visit the property and assess the value of the home, taking into account factors such as the location, condition of the property, and recent comparable sales in the area. This appraisal will be used to determine the amount of closing costs that the buyer will need to pay. In some cases, the appraised value of the home may be lower than the purchase price, in which case the buyer may need to negotiate with the seller to bring the price down to match the appraisal. In other cases, the appraised value may be higher than the asking price, giving the buyer some negotiating power when it comes to closing costs. Either way, it is important to have a clear understanding of your home’s value before heading into closing. Legal fees: You may need to hire a lawyer to handle the legal aspects of your sale, or if you are selling directly to a buyer.. Their fees will vary depending on the complexity of the transaction and the location of the property. In some cases, the seller is responsible for paying all the legal fees associated with the sale, this includes any fees associated with the transfer of ownership of the property. Title insurance: This is a type of insurance that protects the seller against any claims made on the title to your property. It is typically required by the lender if you have a mortgage. The exact amount you will pay as a seller will depend on the specifics of your title insurance policy. However, knowing the typical closing costs can help make sure you’re not caught off guard. Mortgage discharge fee: If you have a mortgage on the property, you will need to pay a fee to have it discharged. This fee is typically around $200-$300. These fees are a common closing cost associated with refinancing your home. Discharge fees are paid to the lender to cancel an existing mortgage and create a new one. The fee is typically a percentage of the total loan amount but can vary depending on the lender. Be sure to ask about the fee and get an estimate from your lender before making any decisions about refinancing. Property taxes: One often forgotten potential closing cost is property taxes. Depending on the location of the property and the value of the home, property taxes can be quite expensive. In some cases, they can even exceed the mortgage payments! As a result, it’s important to be aware of the property tax situation before you purchase a property because they must be paid in full before the sale can be completed. Credit report: One cost that is often overlooked is the cost of ordering a credit report. A credit report is necessary because lenders use credit report scores to determine if buyers qualify for a loan and what interest rate they receive. While the cost of ordering a credit report may seem insignificant, it can add up – especially if you’re closing on multiple properties. For example, if you’re closing on a home and an investment property, you’ll need to order two credit reports. The cost of ordering two credit reports can range from $30-$50, depending on the provider. Pest inspection: A pest inspection can help identify any potential problem areas like termites and dry rot from pests, which could lead to costly repairs down the road. This will help uncover any hidden issues and help you with negotiating repairs or treatment prior to closing. Recording fees: To finalize the sale, you will need to pay recording fees. This amount is charged by your local government for registering the deed to your new home. Utility bills: Any outstanding utility bills will need to be paid before the property changes hands. These are the fees associated with finalizing the purchase, and they can add up quickly. utility bills are one of the most common closing costs. If you’re buying a home that is already occupied, you’ll need to pay for the utilities that have been used, through the date of closing. This can include things like electricity, gas, water, and trash service. In some cases, you may also be responsible for paying the seller’s utility bills if they haven’t been paid up to date to ensure you can have services turned on in your name. As you can see, there are a number of different closing costs that can add up when selling your house. It’s important to be aware of all of them so that you can budget accordingly and avoid any nasty surprises at the end of the process.

Why You Should and Shouldn’t Sell Your Home in 2022

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Why You Should and Shouldn’t Sell Your Home in 2022
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Why You Should and Shouldn’t  Sell Your Home in 2022

Introduction

Analyze your financial status, including your equity in your property, your capacity to purchase a new home, and any closing fees, before deciding whether or not to sell your home. Additionally, you should know the regional housing market and how changing seasons may affect your objectives.

Here are some crucial inquiries to make if you’re considering selling your house:

1. How Much is My Home Worth?

Most real estate experts examine recently sold properties in your neighborhood that are comparable to yours to estimate the value of your property. “Comps” are a common term used to describe these comparable houses. You may obtain an idea of the price range that buyers may be willing to pay for your house by comparing the selling prices of several comparable properties.

You should take into account factors like the home’s square size, number of bedrooms and bathrooms, and any distinctive characteristics while looking for comparable properties. Since no two houses are exactly the same, you’ll need to modify each unique feature; it’s really difficult to accomplish this properly for each comp.

2. Do I Have Enough Equity to Sell my Home?

A general rule of thumb is that you should have enough equity in your house to cover your mortgage, the costs of selling, and the costs of relocating. Additionally, a lot of people hold off on selling until they have enough equity to use as a down payment on their next house.

Recent statistics from Bankrate show that most homeowners need an average of five years to accumulate enough equity in their property to cover the costs of purchasing, closing, and relocating.

3. How Much Will it Cost to Sell my Home?

Many individuals focus on the 5–6% that is normally paid in agent commissions when selling a house. However, the overall expenses associated with selling a house might be closer to 10% of the sale price. If you are unable to coordinate the sale of your current house with the purchase of your subsequent one, some of these additional expenditures include seller concessions, closing charges, repair costs, and housing overlap costs. Don’t forget the value of your time and sanity, either, of course.

4. How Long Will It Take to Sell my Home?

Consider your moving schedule and how it can affect your goals when deciding whether or not to sell. Financial consequences may result from a sale taking longer than anticipated. It may prevent you from pursuing a career opportunity, compel you to pay for temporary accommodation or storage, and, of course, selling a property requires upkeep.

5. Should I Make Repairs?

You must inform potential purchasers of any known problems with your house as a seller. Despite the fact that you are not compelled to make repairs, you will probably need to price your house according to the expenses of these repairs, or you may need to make a concession to the buyer so they may do the repairs themselves. For purchasers searching for a move-in-ready house, pricey repairs like replacing an HVAC unit or repairing a pool, for instance, might be a deal breaker.

Although it may be tempting to start expensive renovations before selling, not all improvements will add considerably to the value of your property.

6. How Should I Sell My Home?

There are several strategies for selling a house. If you want to know if you’re ready to sell, think about how much time, money, and effort you can devote to the process. Do you have the freedom to organize and show your home? If necessary, are you able to make adjustments and repairs? How long are you prepared to wait before accepting an offer, and how flexible are you with terms?

Working with a real estate professional if you’re selling conventionally offers help throughout the process. A real estate agent can also manage the sale’s paperwork, work with the buyer’s agent to sell the house, and promote it.

You Should Sell:

1. If  High-Interest Rates Don’t Scare You

Mortgage interest rates are significantly higher than they have been recent as 2022 draws to a conclusion. That is sufficient for many homeowners to decide to remain in their present home. Others don’t give the interest rate as much thought.

Greater down payments are possible by higher equity at the moment of sale, which effectively lowers the monthly payment of a new mortgage.

2. If You’re OK Waiting for the Right Buyer

There is a lot of debate about buyer demand declining as affordability in the U.S. is strained by high property prices and high mortgage rates. The U.S. is still witnessing a strong housing price rise, though. The typical house selling price in August was $406,890, a 7.1% rise over August 2021.

The length of time a house remains on the market is one area where sellers will see a difference. A year ago, it was typical for a property to get numerous bids on the day it went on the market. Less offers are being made today, and the pace is slower. According to Redfin, the typical time a house spent on the market in August was 26 days, nine more days than in August 2021.

3. If You Need to Move

It’s still possible to sell your house and get a new one if you need to move for whatever reason. If you lost your work, you might be concerned about how you’ll be able to keep up with your mortgage payments. Selling can be a possibility in this situation. However, a large number of people are choosing a life shift that entails relocating to a different state, needing more space for a growing family, or needing a larger footprint for a permanent work-from-home area.

It is still feasible to sell your house for a profit and buy a new one, but the key is to be well-prepared and to have reasonable expectations.

Do NOT sell your house:

1. If You Just Bought or Refinanced

There is no reason to think about selling your house anytime soon if you are one of the numerous homeowners who have just relocated or refinanced. With its low monthly payments, your mortgage should have alleviated any financial hardships.

Many homeowners could lock in mortgage rates below 3% before 2022, making selling anytime soon much less appealing. Enjoy the low-interest rate you have locked in and continue to increase the value of your house till other circumstances make a relocation unavoidable.

Plan to stay put if your present mortgage is what you find most comfortable for a while, as mortgage interest rates aren’t expected to significantly decline in the upcoming few months.

2. If You’re Worried About Affording Your Next Purchase

Concerns regarding your ability to afford your future home purchase during the past couple of years have been linked to the property market’s rapidly increasing costs and the scarcity of newly built homes for sale. There seems to be no financial advantage to purchasing a new house while loan rates are over 6%. If you believe the timing isn’t right, don’t be scared to put off selling your house.

3. If You’re Worried About Finding Your Next Home

Even while the housing inventory is still low, the market is better balanced now than it was at the beginning of the year. Houses stay on the market a little longer now that prospective buyers have chosen to back off.

While it’s less likely that you’ll have to contend with multiple offers and bids significantly above the asking price when looking for a new home than it was in 2021, reports show that there were more than 18% fewer home sales in August 2022 than there were in August 2021, and this isn’t solely due to a decline in demand. You could have trouble finding the appropriate amount of bedrooms, ideal location, or general vibe you’re looking for because there are fewer properties on the market to pick from.

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Greg Bilbro

Greg Bilbro

Greg Bilbro is the CEO and co-founder of GeoFlip. After a decade of successfully flipping hundreds of distressed residential properties himself, Bilbro founded GeoFlip. His single focus is to deliver in-bound leads and build 7-figure results for REI's nationwide. His history of 20+ years as principal buyer, 10+ years generating leads and 2,600 Conversion Coaching hours makes him an authority in the lead gen space. Prior to entering the real estate space, Bilbro was a Series 7 and 63 securities and registered investment advisor with New York Life and NYLife Securities. Soon after being named “Rookie of the Year”, he was promoted to become the youngest Partner nationwide at New York Life at just 25 years old. Bilbro is a native of Texas and holds a Bachelor of Science degree in Biochemistry from the University of New Mexico. He currently hangs his hat in Scottsdale, Arizona with his sidekick Frenchie, “Bity.”

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