Are you prepared for your home purchase?
Run Comps – People who are selling a home get fixated on what they need to net from the sale. What you need from the sale does not determine the current market value of your home. What determines that is the SALES price of homes like yours in your current neighborhood. If your home is dated and needs updating, it will be worth less than other homes of the same size in your neighborhood. If your home has top of the line everything, and all the other homes in your neighborhood do not, then you will get some credit for the nice finishes, but not as much as you would like. It’s always good to make your home comfortable for yourself, but don’t expect to get all of the money back.
Have your Listing Agent work up a Net Sheet– Just because your home has increased in value, that doesn’t mean you get all the cash in your pocket. There are costs incurred when you sell a home. There is the Broker’s Commission, Escrow and Title Insurance and a laundry list of other fees. Go over those carefully with whomever lists your property so that you have a clear understanding of what those fees are and what your net profit will be.
Get Preapproved for your next purchase – Before you go out and look at homes with a Realtor, it’s is very important you know how much of a loan you can qualify for. Then, it’s also important to remember that no matter if you qualify for a higher mortgage payment or not, you have to determine just what size of a monthly payment you are comfortable with. You may qualify for a $3,000 a month payment, but you may only be comfortable with paying $2,500. Work with your realtor and your Mortgage person to find homes that fit your wants and needs, but will also not make you house poor.
If you are thinking of purchasin or selling a home, give me a call, and either Nancy or I can help you.