Preparing You For Your Home Search or Sale

Don’t forget the furniture and fixtures when getting rid of clutter – most of us put too much in too little space, making a buying prospect think your home is too small. If you can’t bear to part with some possessions, store them in the attic or another spot out of sight.

You should even check behind your washer and dryer in the laundry room, polish the furniture, scour out the cabinets, wash the windows and coverings, and spiff up the ceiling fans and kitchen appliances. In short, you should ensure everything is spotless.

Don’t forget to water the lawn and landscape beds, and take the time to trim, mow, and edge. A good agent will advise you on what needs to be done. An “as-is” sale keeps you from doing all this work, but a buyer assesses about twice the price you would have paid for repairs.

In addition, make sure to remove all your pet’s litter pan and clean it so the home smells clean and fresh, not like an air freshener. Remember, you need to make sure your home is available to be seen by prospective buyers with as little notice as possible. That means less than an hour or even five minutes.

Remember, after the location, the most essential item to a buyer is a well-maintained home. Potential buyers can overlook many flaws if they know they can move in without a lot of trouble and expense. Elevate your home to get the most out of your sale.

30-Year, Fixed-Rate Mortgage: The Practical Choice
Lower monthly payments: A longer loan term results in lower monthly payments, which are more affordable in the short term, especially with rates in the high sixes.

More financial flexibility: Lower payments allow you to allocate funds toward savings, investments, or home improvements.

Higher interest over time: The trade-off is that you will pay significantly more in interest over the 30-year period.

15-Year, Fixed-Rate Mortgage: When It Makes Sense
A 15-year mortgage could be a great option if:

You can afford the higher payment: The monthly cost is significantly higher, but it allows you to pay off your home much faster.

You want to build equity quickly: A larger portion of your payment goes toward the principal from the start.

You’re focused on long-term savings: You may pay tens of thousands less in interest compared to a 30-year loan.

You plan to refinance later: If rates drop, you could refinance into a lower-rate, 30-year loan to reduce your payments.

Flexibility for the Future: Refinancing and Recasting
Refinancing: If rates decrease, you can refinance from a 30-year mortgage to a 15-year mortgage to pay off your home faster, or from a 15-year to a 30-year to lower your payments.

Recasting: Some lenders allow recasting if you make a large lump-sum payment toward the loan balance. This method recalculates your payment based on the remaining balance without changing your interest rate.

If you buy with an eye towards improvement, you can customize the home to fit your needs. The saying, “make money buying a home, not selling one,” should keep you focused on the long-term importance of the purchasing price.

Establishing “your criteria” early on will save time shopping for inappropriate homes and may keep you from buying a home on a whim. Your top reason for buying a home should be the value you are getting. You should logically sacrifice some of your top 10 amenities.

Fixed-rate mortgages allow buyers to take out a long-term loan without worrying about changing interest rates or monthly payments, and most fixed-rate loans are offered in either 15 or 30-year terms.
A fixed-rate loan will well serve most buyers, but each situation is unique.

Whichever loan you choose, make sure to scrutinize all the closing costs. If you are required to have a mortgage escrow account and private mortgage insurance, make sure you understand the terms and cancellation procedures (your real estate agent has publications to assist you).

Paying for a qualified home inspection before you buy a home isn’t just spending “a little extra” for peace of mind; it’s absolutely essential for anyone who doesn’t want to spend thousands of dollars on repairs. We can miss things that an experienced home inspector won’t.

This warranty can save the new homeowner lots of headaches and put the seller’s fears to rest. For example, if a water heater bursts and destroys a wall in your home, the warranty would repair the water heater, and your insurance would pay to fix the wall.

Cooperative compensation is a term used when the listing broker shares a portion of the listing broker’s commission with a buyer’s broker in exchange for bringing a buyer who ultimately buys the home.

No. Listing brokers are not required to share their commission with the buyer’s broker.  The seller and listing broker work together to decide if cooperative compensation will be offered and how much that compensation will be.

Most lenders do not allow commissions to be added to home loans, and many buyers do not have the financial ability to pay real estate compensation out-of-pocket on top of down payment and other closing costs.  When the listing broker pays the buyer’s broker, more homebuyers can afford a home.  Sellers benefit because their property will be more attractive to a wider pool of potential buyers, often resulting in the seller’s home being sold for a higher price.

Gain Leverage to Negotiate Repairs or Adjustments: A detailed inspection report gives buyers a strong basis for requesting repairs or price adjustments. Sellers can also use the report to proactively address issues, which can enhance the property’s value and appeal.

Protect Your Long-Term Investment: A home is a significant financial commitment. An inspection helps ensure you are making an informed decision, avoiding costly repairs, and ensuring safety for years to come.