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In many markets, property values have taken off to levels not seen in well over a decade. It may be a great time to explore selling your home. Depending on the condition of your property, the buyer may be a cash buyer. While this is a typical practice, there are many nuances and slight differences when working with a cash buyer instead of a traditionally financed one.
In this article, 180 Homes explores the steps to consider when selling your home for cash, as well as some factors to keep in mind when accepting a cash offer. There are many benefits of selling a house for cash, and 180 Homes is here to help! The Process of Selling a House for Cash Selling a house for cash might be a rare circumstance, but you shouldn’t be overwhelmed by the process. Here are the steps for successfully selling a house for cash. Step 1: Quality Cash Buyers The first step in selling your home for cash is finding the RIGHT buyer. Most cash buyers are quick and responsive and are happy to submit a cash offer should you be interested in one. Cash buyers don’t need more than 24 hours to get you an offer. When selling a house for cash, it’s always best to get multiple offers if possible. When ready to decide, remember that price is not the only factor to consider. The right buyer should offer the ideal price, inspection period, timeline, and terms that put you in the best possible position to sell your home for cash. Questions to Ask Cash Buyers There are many factors to consider when contemplating a cash offer for your property. Here are some questions you should ask before moving forward in the process
Step 2: Compare Offer Terms Most buyers have specific offer terms to consider before moving forward, even when selling a house for cash. Offer terms protect all parties involved and usually consist of these key factors:
Common Red Flags Make sure you know every section of your contract before accepting an offer. Take a few minutes and review the common cash offer red flags that investors may include. Step 3: Accept and Offer and Open Escrow When accepting offers, you’ll either sign a hard copy version of the offer or use an online contract signing service like DocuSign to execute the contract. Once you and the buyer have signed, escrow and title companies enter the transaction to help research any questions with title and coordinate communication. If the seller is unsure or has no preference for who helps with escrow/title, the buyers might have contacts. Once the offer is accepted, the transaction timeline begins! Step 4: Monitor Major Deadlines/Complete Paperwork Sellers often avoid selling solo because of the paperwork associated with the process. The process is simple with an efficient escrow or Transaction Coordinating Company to help execute these documents. Disclosures are always required when selling your home or a piece of property (realtor or not) and give the buyer a clear picture of exactly what they are buying. Work with a local expert to fill out necessary disclosures for your property. Step 5: Closing Escrow There are several documents needed to complete the closing. It is always a good idea to enlist the services of a real estate attorney. Not only will they expedite the closing process, but they offer protection. Even experienced real estate investors are not versed in every contractual scenario. With thousands of dollars of EMD at stake as well as potential litigation, it makes financial sense to spend the money on a good real estate attorney. 180 Homes Can Help With the Process of Selling a House for Cash! There are many benefits of selling a house for cash but make sure you understand the process! It’s a great time to at least explore the option of selling a home for cash, but make sure you know what to expect. Contact 180 Homes to learn more about our Cash As-IS offer to expedite your real estate experience today!
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When buying or selling a home, the topic of closing costs is bound to come on the horizon. It takes a village to purchase or sell a home, with several different people playing a role in the real estate transaction. Buyers, sellers, real estate agents, and inspectors are just a few of the different people who dip their toes in the experience. Closing costs are the fees associated with the various services required to close the sale. But what do these closing costs include and how should buyers calculate them?
In this article, 180 Homes will explore what closing costs include, how to calculate closing costs, as well as some helpful tips for buyers and sellers looking to close their real estate transactions seamlessly. With our helpful guide, you’ll approach your home buying experience with welcomed transparency. What Are Typical Closing Costs? Closing costs are the fees associated with finding a home, securing a mortgage, placing an offer, and closing the real estate transaction. Purchasing a home isn’t as simple as choosing the perfect property and grabbing the keys, there are numerous steps along the way that might have fees associated with them. Closing costs will vary widely based on the property type, perceived value, and manner of closing escrow. Let’s explore some of the most typical closing costs:
Does the Buyer or Seller Pay Closing Costs Some closing costs that sellers might be expected include:
How to Calculate Closing Costs: A Helpful Guide Understanding how to calculate closing costs is highly dependent on understanding where these closing costs originate. The closing costs we’ve reviewed are only a fraction of the potential fees that can accrue during the transaction. Employing the help of a real estate agent or attorney can vastly improve your ability to anticipate and calculate these costs. These professionals will have a strong working knowledge of the entire process, which can be very helpful down the line. While each property will vary, the average cost of closing costs is 3-6% of the home’s price. Here are some helpful tips for calculating closing costs so that you’re not blindsided at the end of your real estate transaction. Gather an Estimate for the Cost When getting approved for a mortgage, the lender will usually be able to provide an estimate of the anticipated closing costs based on the home’s value, estimated down payment, and mortgage interest rate. Since many closing costs are based on a percentage of the home’s value, an accurate estimate is crucial for securing those funds down the line. Gather a Full Breakdown of All Costs Now that you have an idea of the home’s price point, it’s much easier to break down the potential closing costs. These closing costs will include lender services, appraisal fees, and clerical items such as insurance, property taxes, and titles. We also explored numerous other charges that might be included based on the buyer’s experience. Gather a comprehensive breakdown of these services to calculate the anticipated fees. Research Potential Deductions While some closing costs are inevitable, such as the mortgage application fees or title insurance, some services can be worked around or potentially deducted. For example, some lenders might include closing costs within the mortgage itself, that way buyers can pay these fees off over time rather than making a lump sum payment. Refine and Prepare Based on Findings Once you have a final total for closing costs, make sure that all information you’ve gathered is based on local state requirements and price points. Add up each of the closing costs to determine what will be due at escrow. Another general rule is to always estimate high to avoid unnecessary curveballs. It’s always better to be prepared to pay something and later save cash than not save enough to cover these costs. Get an easy, no-nonsense cash offer from 180 Homes! Sell to us and we’ll pay your closing costs! Sell Your Home Fast with Help from 180 Homes! Whether you’re a first-time homebuyer or you’re simply looking to save money wherever possible, understanding how to calculate closing costs plays a substantial role in any real estate transaction. By anticipating these costs and negotiating when possible, buying a home becomes seamless. 180 Homes can help sellers list their property and have a care-free real estate experience. With cash offers that help sellers move on to the next great investment quickly, 180 Homes can expedite the process of selling your home. Contact 180 Homes today to learn more! When selling or buying a home, the topic of whether or not a home appraisal should be completed is bound to come up at some point or another. A home or residential property appraisal helps establish a home’s market value, or the likely sales price that the property would fetch if offered in a competitive real estate market. There is value in arranging for a home appraisal as both the buyer and seller – understanding the home’s value can tremendously influence the selling price one way or another. But what is a home appraisal, exactly?
In this article, 180 Homes explores what a home appraisal is and how much it costs, who you would hire to get your house appraised, and some of the benefits home appraisals provide for both buyers and sellers. With 180 Home’s helpful guide, you can approach your home appraisal like a real estate professional and properly anticipate what their results mean for your real estate transaction. What is a Home Appraisal? A home appraisal is a certified appraiser’s report of the estimated value of a home. Whenever someone uses a home or other type of real estate as security for a loan, the lender will order an appraisal to be conducted by a third party licensed real estate appraiser. Lenders will typically only lend to a borrower 65-80% of a home’s value on most standard loan products. In order to provide an accurate loan amount, the lender needs to have an accurate idea of the property’s worth. So, to determine the loan amount, the first step is determining the objective value of the property. This step is critical from the lender’s perspective because it reflects the likelihood the property will sell for at least the amount of their investment in it. A home appraisal is typically centered around the research of comparable home sales nearby. the appraiser’s analysis of the home, and the appraiser’s overall judgment of the property they are inspecting. The reason mortgage lenders will require a home appraisal is to gauge the risks of extending the loan. If the borrower defaults for any reason, the lender seeks to ensure they are still in a strong financial position to get their money back via the sale of the home. Home Much is a Home Appraisal? Some might wonder how much a home appraisal costs. A home appraisal’s cost is typically in the $300-400 range but can vary widely based on the home’s location. For example, in some metropolitan areas, the fees and quote for a home appraisal might span between $600-$1000 for a larger property. In terms of who pays for the home appraisal, that depends on if a mortgage is involved. In the case of there being a mortgage, the lender hires an appraiser, with the home buyer paying for the appraisal. Likewise, if a homeowner is refinancing a mortgage, they will front the bill for the appraisal as well. Once the physical inspection and sale analysis has been completed, the appraisal service will provide a home appraisal report. What is Included in a Home Appraisal Report? Appraisers are licensed by their respective states after completing coursework and/or a job internship that helps them become familiar with their local real estate markets. The appraisal process itself begins with a thorough inspection of the property being appraised to determine the true physical condition of the property. The time it takes to complete a home appraisal will vary based on the property size and complexity. The appraiser will look at features like the number of bedrooms and bathrooms to ensure that they really exist and are in good condition. Most important, the appraisal looks for any obvious features or defects as well as recent upgrades, updates, and improvements that would affect the value of the house. There are numerous factors that an appraiser will consider when completing a home appraisal. Some of the most common factors that will be reflected within the final calculation of a home appraisal include:
Why Would You Get Your House Appraised? Now that we understand what a home appraisal is and what goes into a home appraisal report, it’s time to explore why home appraisals are so important. We’ve covered that home appraisals are a necessity when buying or selling a home with a mortgage and when refinancing a mortgage because the amount a lender will lend is directly tied to the property’s value. While this is the most common scenario for ordering a home appraisal, there are a few other occasions when an appraisal is appropriate.
Benefits Of Home Appraisal for Sellers If you’re on the selling side, a home appraisal shows you how much you can realistically ask for your house. The appraised value should not be confused with the asking price, offer price, or sales price. Asking price is what a seller indicates as a fair and reasonable offer for his/her home. A seller is free to set whatever asking price he/she chooses. An offer price is based on the buyer’s discretion and the sales price is the final transaction price. From the seller’s standpoint, a low home appraisal indicates that the asking price needs to be lowered to realistically sell the property in a timely manner. Gathering information about comparable homes nearby and understanding the details of your home that you might not notice or even know, like a larger lot size or nearby schools. If the neighborhood’s nearby homes are also not selling, speaking to an appraiser may be able to increase the appraised value by their inspection of other attractive features that might drive the value up. Benefits of Home Appraisals for Buyers If on the buying side, a home appraisal shows the home buyer a black and white picture of the home’s value. By understanding the home’s appraised value based on the factors we’ve covered above, as a buyer, you can ensure that the price you’re paying is indeed in line with what the banks consider a fair market value. By having a clear picture of a market value, buyers can make an educated call on their offer price. An offer price, on the other hand, is a number that the buyer feels he/she is willing to pay after an appraisal has been completed. A home appraisal may be an accurate reflection of the true market value of a home, or an attempt by the buyer to purchase the property at a considerable discount. As a buyer, you should always look out for sellers that are asking for a price much higher than the home’s value, because this tremendously impacts the bank’s loan amount. The sales price is what the buyer and seller actually agree upon through negotiations; it generally lies somewhere between the asking price and the offer price. Contact 180 Homes for All Your Real Estate Needs As a home seller, you may wonder if there is a way to skip a home appraisal for your home. We have good news! Here at 180 Homes, performing a home inspection or home appraisal is NOT a contingency of our cash-as-is offer! Since we’re paying cash, a third-party appraisal isn’t needed the same way a typical financed buyer would require. If you’re interested in a less stressful real estate transaction, 180 Homes is the trusted resource. Learn more about 180 Homes' simple as-is cash offers TODAY! If you’re selling your home and wish to forego the home appraisal process, your best bet is to find a cash buyer for the home. 180 Homes can help you skip the home appraisal, with our cash as-if offers on Long Island homes. We can help home sellers achieve their real estate goals and avoid the pesky back-n-forth process of finding a seller and getting to escrow. Contact 180 Homes' today to learn more! Dealing with an inherited property or a property in probate can be a difficult and time-consuming process. Because of the many laws associated, an inherited property can take months before the title changes hands. When it finally does, you can be left with a property that hasn’t been updated in years and is in dire need of maintenance.
In this article, we’ll describe the process of selling inherited property to better understand how to navigate the real estate market once this situation occurs. With 180 Homes’ help, you’ll be able to sell an inherited property much easier. Common Challenges When Selling An Inherited Property If you are faced with this type of situation, it is important to focus on the high-priority hurdles first. Here are the four biggest challenges to selling an inherited property with deferred maintenance:
Limited Capital to Fix Up When inheriting property, your money may be tied up in other properties, credit may be maxed, or you not have the capital to do the work the property requires. Buyers almost universally want to buy a turn-key property unless they get a discount. If you don’t make improvements, your buyer pool will be limited and it will be reflected in your sales price. You can try finding capital through credit cards, private lenders, or short-term partnerships, but each option has drawbacks. High Carrying Costs The biggest issue with not selling inherited property is the carrying costs. Every month you own the property, you cover property taxes, insurance, utilities, and many other expenses. By not selling inherited property quickly, you can fall behind, forcing more desperation and prompting you to make decisions with the property you normally wouldn’t. Selling A Property That Needs Work Without the capital to make improvements, the sale of the inherited property might be in an as-is condition. You essentially defer the responsibility of the improvements to the buyer. Many buyers lack the desire or financial wherewithal to throw money into a new home purchase. Buyers can struggle coming up with a down payment, let alone money for improvements. This leaves you with a buyer pool of investors and buyers looking for a discount. Lack Of Local Market Knowledge An inherited property might not come from your immediate family, it could be from an extended family member. This requires a different strategy, regardless of what you want to do with the property. Make the right improvements for the market to maximize the profit and expedite the sale. The Sale of Inherited Property FAQ Lets Answer some of the most commonly asked questions about Inherited Properties:
What is the Timeframe for Selling an Inherited Property? Going through probate can be a long and grueling process, even with a will. By the time you take ownership, you can feel drained and beaten down. The last thing you want to do is wait another extended period to complete your improvements and wait for a buyer. If there is an extensive amount of work needed in the property, you have two choices.
Can Siblings Force the Sale of Inherited Property? If a will/trust exists, one of the heirs will be the executor. The executor is the decision-maker and has the power to sell the property without permission from other heirs. But sometimes, no executor is chosen, which is a challenging situation for the heirs. Three things can happen:
How Does Selling Inherited Property Affect Taxes? When selling inherited property, you may have to pay capital gains tax if you earn a net profit from the sale. The federal government will tax a portion of the amount you profited. The current capital gains tax rates are 0%, 15%, or 20%, depending on tax brackets. When you sell a home normally, you would pay capital gains tax on what you earned from the sale compared against the original price. Inherited properties work differently. With inherited properties, the home is appraised after the death and given a market value. Let’s assume that an owner dies and the house is given a value of $400,000. If the house sold for $450,000, the tax basis would be $50,000. This is a stepped-up tax basis, the home’s original value is not a factor. 180 Homes & Properties, LLC is not a tax expert. If you're seeking tax advice, be sure to consult with a certified tax professional. Contact 180 Homes Today to learn more! When buying a home, the question of what type of mortgage you’d like to select is bound to come up if you’re not planning on purchasing the home with cash. This is when an adjustable-rate mortgage (commonly known as an ARM) or a fixed-rate mortgage comes in. Which type of mortgage is the right one for you? It’s always smart to go into any real estate transaction with a clear idea of what you’re signing up for, and by knowing what an adjustable-rate mortgage is, you can choose the best mortgage for your needs.
In this article, 180 Homes explores what an adjustable-rate mortgage is, some of the pros and cons of adjustable-rate mortgages, and how to determine whether or not an ARM mortgage is a good idea for your real estate needs. What is an Adjustable-Rate Mortgage? An adjustable-rate mortgage is a home loan that features an adjusted interest rate over time, influenced by the latest market trends. An adjustable-rate mortgage usually begins with a lower interest rate than a fixed-rate mortgage, which makes an ARM a preferred option for home buyers that are seeking the lowest possible mortgage rate when first owning their home. The main difference between a fixed-rate and adjustable-rate mortgage is that there is more certainty in a fixed-rate mortgage. In a fixed-rate mortgage, the interest rate stays the same for the loan’s lifespan, creating consistent monthly mortgage payments. Adjustable Rate Mortgages, however, start with a period of a fixed interest rate and then adjust to whatever the market interest rate is at the end of that time period. The duration of this fixed time period is unique to each ARM. For example, some borrowers will see a fixed period of 5 to10 years. Once the introductory fixed period has ended, the monthly payments will begin to fluctuate periodically to be aligned with the market interest rate at the time. It’s important to factor that in before moving forward with an ARM because budgeting for payments is influenced by market trends. Pros & Cons of Adjustable Rate Mortgages So now that we understand what an adjustable-rate mortgage is and how they vary from a fixed-rate mortgage, it’s time to go over some of the benefits and drawbacks of an ARM. Naturally, every buyer is different when considering their budget and preferences for making timely mortgage payments. Thankfully, by taking the time to understand how ARM loans work, buyers can better understand how to prepare for fluctuating monthly payments. Advantages of Adjustable Rate Mortgages The first and most obvious advantage of an ARM: they are typically LOWER than their fixed rate counterparts. ARMs provide predictable and comparatively low payments for the introductory period. This allows new homeowners to build up their savings, and properly budget for payments that may increase down the line. An ARM also allows for some wiggle room for those who wish to move in a fairly soon time frame, such as for those with a starter home. An ARM’s low monthly payments are great for homeowners that need to move to a new area shortly after buying their property. By moving away before the introductory period ends, they are relatively unaffected by the increase in interest payments down the line. Suppose the homeowner wishes to sell the home before the interest rates adjust. In that case, the adjustable interest rates won’t complicate their budget because the mortgage will shift to the new homeowner. Lastly, one of the most attractive features of an ARM is its ability to provide increased financial flexibility. If you have other financial goals outside of your home, like investments in other properties, the low monthly payments can help you build savings during the introductory period. While a price jump might occur once the fixed period ends, the time you spend saving during the low-interest period can protect your finances from being negatively impacted down the line. Disadvantages of an Adjustable-Rate Mortgage Now that we’ve explored some of the advantages of an ARM, let’s go over some of the potential downsides of this mortgage type. The biggest risk when choosing an adjustable-rate mortgage is the inability to predict what the interest rate will be after the introductory period. This is most important in a RISING interest rate climate. The risk of abrupt and/or unexpected increases in interest rates that are inherent with ARMs could lead to a sudden increase in mortgage payments to the borrower. This of course could lead to financial stress and/or an inability to continue to make payments on the mortgage. Having a confident idea of your financial position might become difficult with fluctuating payments, and that instability might keep some home buyers away from choosing an ARM. Deciding whether or not an adjustable-rate mortgage is the best move for you will depend highly on what you’re looking for out of your future mortgage payments. If you anticipate that you will not be living in the home for longer than five years, there are relatively no risks to choosing the lowest interest rate on the mortgage, because you can save money for future real estate ventures more easily. But if you’re planning on living in the home for longer than the introductory period, it might be smarter to choose a fixed-rate mortgage if you don’t think you’ll be able to save up money for increased monthly payments. Everyone’s mortgage needs are different, but an adjustable-rate mortgage is a valuable option for first-time home buyers that are looking for affordable monthly payments. Are you wanting to sell your home on Long Island? 180 Homes can expedite the real estate transactions by extending cash as-is offers, allowing homeowners to move forward in their real estate goals. Contact 180 Homes Today to learn more! More often than not, real estate transactions can get tricky, especially if you’re inheriting a property where the previous owner has passed away. Whether a property has fallen into your hands or you’re dealing with the death of a loved one, conveying ownership can tack on several months to the real estate process and become a cumbersome experience. Understanding how real estate is conveyed upon death can help new property owners navigate the real estate experience and help them protect a personal asset they are now holding.
What does Conveyance Mean in Real Estate? To understand what conveyance in real estate means, let’s begin with its simplest definition. Conveyance is the transfer of ownership of property between the seller/conveyor and the buyer/conveyee. Real estate conveyance is accomplished by using a tool for conveyance, like a lease, contract, or deed. The legal title is transferred to a new owner by executing the document, effectively finalizing the property lien. Conveyance in real estate is a very important step in any substantial real estate negotiation and is why so many new home buyers will purchase title insurance. Depending on which state you reside in, it may be expected for home buyers to pay a conveyance tax or real estate transfer tax. If you’re buying a home or a property falls into your hands, the conveyance process is the only way to obtain legal verification of the property’s true ownership. Conveyance in real estate clarifies that if one party wishes to break the contract used to transfer ownership, the other party can take legal action to enforce conveyance. In 180 Homes’ helpful guide, we’ll explore what conveyance in real estate is so that future property owners can know what to expect. Here are some scenarios to help determine how a piece of real estate is conveyed upon death.
Transfer Property Fast with 180 Homes! Buying, owning, or selling a property after an unexpected death can certainly have its challenges. Within these challenges, there can be many steps to be followed before a descendant can have the legal standing to sell an inherited property. Luckily by understanding what conveyance in real estate means, navigating challenges can be simplified. If you’ve inherited a property and are considering selling it, Contact 180 Homes to get a Cash Offer. |
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