Informative Real Estate Tips
It’s been estimated that prices of single-family homes will go up in 2016 and the median sales cost can rise up to 3% to 5%. The mortgage rates will also rise considerably. All in all, the coming year seems like a great market for sellers. Under such circumstances, we’ve formulated a comprehensive guide for buyers and sellers of real estate in the year 2016.
Buyers: Don’t Get Too Enthusiastic
A bidding war may tempt the buyers to pay a highly inflated price, but reselling the property might become tough once the prices sink or stabilize. Always keep looking for more economical houses in the neighboring areas which offer similar comforts, such as easy access to your office and children’s school and so on. Overbidding for a property is always a foolish decision.
Sellers: Be Reasonable With Your Prices
Sellers are suggested to set a price which is 5% to 10% more than the market value. This reasonable approach will get you a profitable deal close to your house’s real market value. Don’t quote a price that is too high than the market value as it’s most likely to drive the buyers away. You can ask for an additional amount if your house features any additional qualities compared to the rest of the houses in the same area.
Buyers: Be On Your Toes
Buyers should always be ready with the money if they don’t want to lose the best houses in the market. Ask your property agent what you can do to crack the deal immediately. Some sellers really value a fast settlement of finances or rent-back, short-term conditions or lesser contingencies.
Sellers: Upgrade the Influential Rooms
Sellers must know that there are two rooms in the house that can get you a great deal or break it. These are the master bath and the kitchen. Give your kitchen the homey feel by redecorating it as a ‘new home’. Hide the toaster and the coffee makers. Add subtle decorative touches to the area around the sink.
If you really want to go further, get new hardware for the kitchen cabinets, new lighting fixtures and fresh wallpaper for your master bath. A new faucet and towel rack should also be in order. Finally, depersonalize, de-clutter, scrub and paint the rest of your house as well.
Buyers: Beware Of the Hidden Costs
Do you know when a $200,000 home is not a $200,000 home?
The answer is: Always! Consider the following extra costs while purchasing a house.
Origination Fee: On the mortgage of about $210,000 on a $250,000 house, assuming an interest rate of 3.5%, you would be paying the lender almost $1,800.
Home Inspection: Remember, even if your mortgage insurer doesn’t require it; always get the home inspection done for your own peace of mind.
Property Taxes: You are usually required to pay these taxes some months upfront.
Appraisal: Your bank will surely determine the real worth of the place.
The pre-occupancy expenses should include title insurance, home insurance, deed-closing fee, survey costs and credit report fees.
We hope the information is beneficial for you to crack the most suitable real estate deal.
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