Selling My House in Virginia: 3 Things Homebuyers Will Not Overlook

Marketers of any kind of product know how important it is to understand the needs of their clients. The needs could be generic or specific depending on the type of product. Looking at a home as a product, you’ll understand that buyers of different age groups seek different things in a home.

For example, millenials do not really consider size of rooms when buying a home, but multi-functionality, while boomers prefer size. However, there are some common things that all buyers, no matter the age bracket want. Hence, to sell my house in Virginia, I’ll not overlook the following:

  1. Storage. When looking to avoid under-marketing, keep this at heart: showcasing your home in its best light is not simply about what you like about it. You may currently have outgrown the area, and began to see its imperfections more than its finer items: that is why you’re moving. However the goal of good marketing is to focus on things that allows your home to glow in the eye of your buyers and against your competition and one of this is a large storage space.
  2. Energy. Many buyers are drawn to the budget-friendliness of energy-efficient features of the less extreme variety. So, if your property is a fairly no-frills property but has a tankless hot water heater, dual-paned house windows and new insulation, talk about it! If you have got your energy charges down way below what’s normal locally, this is a feature you do not want to forget about; your agent can help you understand how to pass this information to buyers.
  3. Proximity. You may think the right buyers for your home will find it online just because of where it is located, so it is ridiculous to advertise the proximity of the property to amenities and attractions. Not the case. All buyers want a house that’s close to amenities and also easily accessible, but not everyone will have the time or know-how to do a zip-code search.

Your house may be a gem in this respect, but your buyer wouldn’t know this if you didn’t mention it. Also, your prospective buyer could look at all the houses in the city in their price range, but the fact that yours is off by an employer or a major university could push yours on top of the list.

Is Your Adjustable Rate Mortgage Giving You a Rough Ride?

Mortgage uncertainties are currently the order of the day for homeowners as speculations have arisen that mortgage rates are likely going up while others believe they’re coming even lower. For many defaulting homeowners, 2009 offered the saving grace with base rates which many homeowners found favorable. But this is changing with recent base rate increases. How does this concern adjustable rate mortgages?

Some years back, adjustable rate mortgages were even more common than fixed rate mortgages and this was easy to understand as they came with lower interest rates. Hence many people got the big houses, spurred on by the low interest rates offered by adjustable rate mortgages. It was a sweet deal, you could even take more cash out of your home.

But then there was the recession which stopped many homeowners dead in their tracks, as home values plummeted and many who couldn’t afford their mortgages tried to refinance but couldn’t. There was no way for them to refinance with the decreasing value of their real estate. During this time, many people lost their homes to foreclosure.

ARMs

Originally, the ARM was designed to help people with short term needs. It was a loan designed for anyone who wanted a mortgage just for the short term. The low interest rates spurred on a refinance boom in the 90s that saw many homeowners applying for adjustable rate mortgages.

ARMs will not profit an average American in the long run. In fact the main reason for most mortgage companies pushing these loans is that they are a sure way to get the business of its customers once the fixed rate expires in a few years.

After the introductory period, the interest is set in line with the market index. When the index falls, your interest does too. And a lesser rate means less payment, which is very good news for you. However, as the market index rises, so does your interest rate. And this could increment your monthly payment, making the adjustable-rate loan higher risk than other alternatives.

Interest Rates & Inflation

Interest rates are determined by many factors. But one of the most important is inflation. Inflation determines how high or low your mortgage payments become. The value of the dollar determines how much you pay on your mortgage.

It is proximately infeasible to estimate inflation in advance since it responds to many market factors. However, in the long run, inflation tends to go up over time. Variable rate loans will see higher interest levels when inflation is higher. Unfortunately, interest levels almost never drops when inflation goes down.

A wise thing you can do to safeguard yourself when chosing an ARM is to set how high your interest rate can go. You are able to set the limit on your interest rate increases. You can set the limit at a certain amount over your initial rate or use the prime lending rate, which adjusts itself with inflation to set the limit on your interest rate.

People who apply for ARMs often do so in hopes that the following will occur:

  • They’ll sell the house before the reset of the loan.
  • Their income will increase before the reset of the loan.
  • They will be able to refinance before the reset of the loan.
  • Interest rates will remain stable or decline, giving them a similar rate to the rate of introduction when resetting the loan.

But the market is simply not predictable and things can turn out not as expected. For many homeowners who took these types of loans during the market crash, the ten year locks are expiring and there is no way out, except refinancing or doing a short sale.

If you’re stuck with an ARM loan with increasing obligations, your lender recognizes it’s a matter of the time before you default. This costs them money and income and keeping you at home can help them and also you at the same time.

When you have been a good paying customer it’s likely that they will modify your loan to a fixed rate mortgage loan and renegotiate your interest with you to be able to help you stay put in your home. If you are still struggling to refinance your loan and you’re struggling to pay up, then you might need to do a short sale.

Why You Should Take Action Now If You Want To Sell Your Home

Action makes results possible. It’s the one thing the differentiates those who get what they want and people that hope to get what they want. Every action starts with a small step, which results in bigger actions and then momentum is created. Amusing how some day slips into the next before you hardly notice it. So, you might be considering taking a short sale and even learning so much about it but as long as you’re not taking action, you’ll not get results. The short sale process is a long process and acting fast is essential. What should you expect in the short sale process?

A short sale requires negotiations between several people, so it’s best to have an expert on your side throughout the process. One negotiation take place between you and your listing agent and the buyer and their agent, just like in any other house sale. In addition, your lender must either accept or reject the buyer’s offer too.

When you have private home loan insurance (PMI) or another loan, like a home collateral loan, on your premises, the PMI company or second lender could also have to approve the short sale. Most lenders have investors who likewise have a say where loans get approved. The probability of a short sale offer being accepted depends partly on how much of a gap there is between your buyer’s offer and your mortgage balance.

To be able to have a short sale contract accepted by your lender, you’ll need to give a hardship letter describing why you cannot make your mortgage repayments. The letter must be supplemented with a financial worksheet with complete information regarding your present circumstances, taxation statements and pay stubs.

Your REALTOR will also have to provide documents, including a listing agreement for your home. Once you’ve an offer, your REALTOR should submit the offer along with an estimated HUD-1 Settlement Sheet that will show the possible proceeds from the sale.

Given the complexity of paperwork and negotiations with a number of different parties, it’s necessary to make use of a REALTOR with experience as a short sale listing agent. Some REALTORs focus on short sales and work with lawyers who can be consulted to represent your interests. Whilst not all practiced short sale agents earn the designation, several become a Certified Distressed Property Expert (CPDE), which means they have fulfilled educational coursework regarding short sales and foreclosures and they have had working experience as well. If you’re in the Virginia or DC region, you can call to work with an experienced short sales agent …

Now, let’s review some of the reasons it seems sensible to sell your home now.

  1. Mortgage rates are likely heading higher

The Federal Reserve has made it clear that interest fees will be moving higher. Fed Chief Janet Yellen as of late said that rates will move higher this year following seven years of national bank easing that helped the battered real estate market skip back after the subprime loaning crisis.

Subsequent to bottoming out at 3.77 percent in April 2015, rates for 30-year mortgages have crawled up to 4.26 percent, as indicated by rate monitor Bankrate (RATE).

This means that housing affordability is actually becoming an issue and many buyers would be looking to get more value for their borrowed buck. This poses opportunity for short sale sellers as buyers are beginning to think short sales could offer them this value.

  1. You should get out while the getting is great

Last year was great for sellers. Existing homes sold at the speediest pace since mid 2007. The National Association of Realtors is reporting that home sales climbed 3.2 percent in June 2015, pushing the regularly balanced yearly rate to 5.49 million homes changing keys. And this year could be better, NVAR already reports that a total of 1,108 homes sold in February 2016, an increase of 3.07 percent more than February 2015 home sales of 1,075.

  1. Locking in some currently low rates

One common gripe through the real estate boom is the fact that if someone sells a home, they still need to find a new home to live. This may be a perfect time to consider trading down, moving to a far more affordable housing market, or even renting. However, if selling now demands buying now, if you search around, you’ll still be able to find some currently low mortgage rates out there.

Sitting tight for rates to change may bring about better prices as a purchaser, yet is that a risk you want to take? You wouldn’t want to be priced out of your next home.

  1. Mortgage Debt Relief Act spread through 2016

The Mortgage Forgiveness and Debt Relief Act of 2007 provides a tax exemption for home owners for “income” resulting from debt forgiveness related to foreclosures, short sales and basic forgiveness of loans. Under the Mortgage Forgiveness Debt Relief Act of 2007, taxpayers can usually exclude income resulting from the discharge of debt on their major residence.

This latest extension will continue this tax coverage for homeowners through the 2016 tax year. This implies that if you do a short sale, you could be able to benefit from the latest extension of the act. However, as with most IRS rules, there are exceptions and constraints which can be a “gotcha” for an unsuspecting home owner. But if you do in fact qualify, this is great news for underwater homeowners!