What Should I Do With My House

Posted on

May 10, 2012

Book/Edition

Colorado - Denver Metro , Colorado - Denver North Metro , Colorado - Denver South Metro

Share This
As the time comes to enjoy your retirement or assisted living community, one of the most common dilemmas for you or your kids is what to do with your house. Everything around you is changing; the last thing you should worry about is selling your house. The market may not even allow the sale of your home. The market has been declining over the last several years and days on the market can be long. You may not even have any equity in it and have to bring money to the table just to get it closed. Maybe the house is your only investment and you want to keep it. At some point in time, the market will surely rebound, but how long will that be? One of the best options may be to rent your home. If not for you, maybe for your kids.
Rental property vacancy rates are close to record lows!
The Denver and surrounding areas are experiencing record low vacancy levels and the housing rental market is as strong as it has been in years. In many cases, you can rent your home for more than your mortgage and actually make a little money. How nice would it feel to not have to sell your home and actually make money on it.
Relieve the stress and rent your home!
With all that is going on in your life, the last thing you want to do is be a landlord. This is why you hire a qualified property management company. Many people know this market is booming right now so everyone is getting into the business. Be careful and do your due diligence. You should look for an established company and someone that has rental experience. It doesn't hurt if they own some of their own rental properties. Make sure they are insured, do credit and background checks on all potential tenants, and have the ability to take care of all maintenance issues. They should be partnered with an attorney in case of evictions or keeping up with new laws. Ask how they handle the maintenance issues. Some companies up charge you for the services that are rendered. Make sure the property manager has to get your permission to do repairs over a certain dollar amount. Finally, make sure you have an agreement in writing. A good property manager can help you make the most out of your rental property. In this market, it may be good idea to rent your property, but make sure you hire the right property management company.
Renting your house is a great solution for the short and long term.
Editors Note: This article was submitted by Lance Becker and Tim Emery of Investment Strategies Property Management Services. They may be reached at 303-770-2409 or by email at lbecker@stixandstones.net . Visit their website at www.stixandstones.net

Other Articles You May Like

How To Find a Trusted Home Buying Company

Being up front with you, for the first 10 years (of the now more than 25) of being "in business" as a home buyer, I really didn't know why a home seller would sell to my company.  Although I looked at houses, made offers, and bought houses, I also had the question in the back of my mind... "why doesn't this person just list their house with an agent?"Then the real estate market, along with the rest of the economy "corrected" in 2008.  In the several years after that, I had more seniors and their families calling me that wanted to sell a house.  Because they typically had no or very little debt, they actually could sell their house if they wanted to.The way the market was back then, I would talk to numerous sellers who had listed their house with an agent (some more than once), and when the house didn't sell, would call me.  We are in a much different market now, but the reasons that a seller would sell to a home buyer haven't changed all that much.Sellers would typically tell me that they had spoken to one or more real estate agents, were told they needed to do this, fix that, etc, to list their house, but they didn't want to do those things.  They just wanted to sell their house.For years, one of the first things I ask a seller is, "why wouldn't you just list your house with an agent?"  And, they typically always have or had a reason or reasons why they didn't.A common item that I heard and continue to hear from sellers is, "I'm sure I could get more for my house if I listed it, but I like and value the benefits your company offers, so I would prefer to just sell the house to you."These were the hundreds of sellers that "taught me" why they would choose to sell their house to me.Not needing to get "top dollar" or finding value in home buyer company non-financial benefits are something that seems impossible to grasp for most real estate agents.Are Home Buying Companies A Scam?In my view, some certainly are.  As I've discussed in other articles and videos, beware of "wholesalers."  Wholesalers are individuals or companies that state that they buy houses, advertise that they buy houses, but actually have no intent or financial ability to do so.  Once they get a contract to purchase a house, they look for a "real" buyer to sell the contract to and close on the transaction.Because they have no financial risk, they can often overpromise what they can pay for the house.  And, if they cannot find an end buyer, it leaves the seller in a very precarious position, or the wholesaler tries to reduce the purchase price.Another problem is when a home buyer doesn't actually look at your house before making an offer.  When they make an offer without looking at a house, and the seller signs an agreement with them, and they do finally inspect the property, the price will likely be reduced based on some unknown item the buyer states that they weren't aware of.A real home buyer should be able to "close" and purchase a property as soon as a title company can check title and prepare closing paperwork.  With Home Downsizing Solutions, in less than 7 days, or when the seller wants.  We've even purchased a house within 24 hours of having an agreement signed!Characteristics Of A Good Home Buying CompanyI will provide several characteristics of what I think you should look for in a good home buying company, as these are items that I have done to ensure we are "one of the good guys."Have a Real Estate License.  I think its beneficial for a member of a home buying company to have a real estate license.  In an effort to serve sellers I work with as well as possible, I have a real estate license as well as an SRES (Senior Real Estate Specialist) designation.This allows me to provide information on the positives and negatives of listing a house as well as selling to a home buying company.  Have The Financial Ability To Actually Buy Houses.  As mentioned above, there are companies that state that they buy houses, but actually don't or can't.  In my company's case, we actually buy houses.  I encourage sellers to call the title/closing company that the home buyer says will close the transaction to confirm that they can actually buy the house, and not just act as a middleman to sell the contract to the end buyer.I also encourage sellers that I work with to call the title/closing company to ensure the purchase agreement contains the specific information that the seller is agreeing to or understands about the agreement, so that there are no misunderstandings before closing.No Pressure Sales Tactics.  I would warn sellers to beware of companies that pressure a seller to sign immediately, or before they were comfortable with signing a purchase agreement.For a similar reason, I would also beware of agents that just want to disparage home buying companies and not acknowledge at least some of the benefits sellers find of value and choose to work with them.Transparency.  I think a legitimate home buying company should share market information with a seller so they can be as educated as possible.  In my case, we typically always show sellers comparable information for their area.  I want them to see the gross selling price that houses have sold for and the condition of those houses.  I also want to provide a realistic explanation of all the transaction costs to sell a house.Realize that when an agent says they can sell a house for $200,000, for example, that is a "gross" number and not the "net" amount that a seller will put in their pocket.  The total amount of transaction costs and what a seller will "net" from the sale of a house will vary and is dependent upon a number of factors.  In average markets, transaction costs will typically amount to 10% to 15% of the gross selling price.Credible and Trustworthy.  Home Downsizing Solutions and their predecessor entity have had an A+ rating with the Better Business Bureau for more than 25 years.  They also have numerous testimonials and 5 start Google reviews from those 25+ years.As mentioned above, I have a real estate license with an SRES designation.I've written books, articles, and provide other information to educate homeowners about selling a house and downsizing or moving to senior living.Home Downsizing Solutions is also an Industry Partner with the NASMM (National Association of Senior Move Managers).Why Would Someone Want To Sell A House To A Home Buying Company?What I tell every homeowner I meet with is, that if the benefits that Home Downsizing Solutions offers are of enough value, we can be a great solution.  Otherwise, one of the Total Solutions Agents we work with could be a better option to list and sell their house in a traditional manner.What Are Home Buying Company Benefits?No Need To Do Repairs or Updates to A House.  If your house is in great condition, this item is most likely not very important.  But to a person who has owned a house for 20, 30, or more years and has deferred maintenance or updates to be competitive with potential buyers, this may be a very valuable benefit.Contacting multiple contractors, getting bids, ensuring the work is done well, and living in a construction zone is not something that every homeowner wants to deal with.  I've also had numerous sellers say, "If I do all that work and put a bunch of money into my house, I just as well stay."No Need To Get Rid Of The Stuff.  With Home Downsizing Solutions, I always tell sellers to take what you want, sell what you want, and leave the rest...  we'll take care of it.  Unlike a traditional sale, where you want the house to show as well as possible, we don't care what the house looks like or the amount of stuff.  We purchase hoarder houses, so whatever stuff a seller has is not an issue.  This eliminates the need of getting a dumpster and the time and effort to go through stuff that a seller just doesn't care about.No Showings.  A lot of sellers we've worked with just don't want to get and keep their house in a show ready condition.  They don't want strangers in their house.  They don't want to have to leave their house every time an agent wants to show the house.  Maybe someone in the household has health issues that does not allow them to leave the house, or at least not without a great deal of effort and planning.No Whole House Inspections or Appraisal Surprises.  Most traditional buyers will, understandably, always want a whole house inspection.  And since most buyers need to get a loan from a traditional lender, they will need an appraisal.  In almost all but the very "hot" markets, these items notoriously will turn up "deficiencies" that give the buyer opportunities to renegotiate the purchase price.  In my company's case, we buy the house completely "as is."  Unless a structural issue has been discussed with a seller during the initial walkthrough or signing a purchase agreement, the price doesn't change.Move When You Want.  With Home Downsizing Solutions, we can close and buy a house, but let the seller remain in the house for up to 90 days or more.We have worked with many situations where the seller had a "catch 22" where they could either move into a new living arrangement right away but didn't want to leave a vacant house, or they wanted to sell but their new home or apartment wasn't ready for them to move into.  By buying their house and letting them transition to their new home or apartment on their schedule, we eliminated those issues.By being able to buy a house before having to move, sellers are also able to eliminate the need of a bridge loan, if they needed funds from the sale of their house to move into a new living arrangement.We have also worked with situations where we purchased a house, and let the seller keep possession until they were able to have a local resource have an estate sale so they could monetize whatever "stuff" they could.  Then we took care of any of the stuff that didn't sell, so the seller or estate sale company didn't have the time or expense to dispose of the items.Sell Your House And Stay As Long As You Want.  If you love your home but don't want to worry about maintenance or repairs, we now provide an option for that.  We can buy a house and allow the seller to rent the property as long as they want.  We can even come in, make updates or repairs to "age in place," and create the home environment you want.Provide Concierge Services.  A good home buying company, like Home Downsizing Solutions, will learn and understand the logistical needs of the seller.  We have provided or introduced sellers to services such as senior placement agents, senior move managers, moving companies, or other resources that made the transition to a new home less stressful.What Do Home Buying Companies Actually Pay For HousesOne of the first questions I typically am asked is, "what do you pay for houses," or "what percentage of market value do you pay for houses?"  It is common for real estate investing "gurus" to teach their new students to make offers of 70% to 75% of market value, minus repairs.  However, for a good home buying company, this is not all that accurate, and is a very simplistic way to look at this.  It would be comparable to say, "all real estate agents charge 7% to sell a house."With Home Downsizing Solutions, it depends... it depends on what time of year (holding costs are higher in the winter).  It depends on the comparables we can find to determine values or potential values of an area or subdivision.  It depends if there are just cosmetic and "stuff" issues to deal with or if there are structural or potential structural issues.  Another way to state the above is, it depends on risk.  If we perceive more risk to buying a house, our offer is going to be lower than if we perceive less risk.When a real estate agent lists a house, they have no financial risk.  When a wholesaler makes an offer on a house, they have no financial risk.  When my company buys a house, we have a lot of financial risk.  If our calculations are wrong, or there are issues with a house that we were not able to determine before purchasing a house, we can't go back to a seller and renegotiate.  We have all the risk.I know that when we speak to a seller, we have to be competitive with our offers, because they have multiple other options to choose from.  If we were not competitive or provide value to potential sellers, we would not be in business after 25+ years.Home Downsizing Solutions home buyers provides multiple types of offers for sellers.  One example of an offer, other than an all-cash offer, is if a seller doesn't need all of the funds from the sale of a house immediately, we can pay a much higher than retail price by making payments to the seller and turning the equity in the house into an income stream.  Another way to look at this type of option is, the easier it is to buy a house, the more we can pay.Is A Cash Home Buying Company A Good Option To Sell A House?Everyone's situation is unique, and one size does not fit all.  If you're considering selling your house, we can provide a free consultation to discuss the positives and negatives of the multiple options you have to get your house sold.  We want to provide the information you need to make an informed decision of the best path forward for your real estate needs.For additional information, just go to www.HomeDownsiziing.com or call us at (855)-433-5854.

MVP Realty's Diamond Group: Elevating Real Estate Services with Personalized Excellence

Buying or selling a home is a significant milestone in anyone's life, and securing the right real estate partner can make all the difference in ensuring a smooth and successful transaction. MVP Realty's Diamond Group stands as a paragon of excellence in the real estate market, offering unparalleled services in Naples, FL, and various other locations. With a dedication to personalized professionalism, superior service, and individual integrity, the Diamond Group at MVP Realty has become a trusted name in the industry. Your Trusted Real Estate PartnerMVP Realty's Diamond Group is more than just a real estate brokerage; it's a team of dedicated professionals committed to understanding and fulfilling the unique needs of each client. Whether you're looking to buy or sell a property, the Diamond Group offers a comprehensive suite of real estate services designed to cater to clients' diverse requirements. Full-Service Realty ExpertiseAs a licensed real estate brokerage business, MVP Realty's Diamond Group is equipped to handle a wide spectrum of real estate needs. Their full-service approach encompasses assistance with buying, selling, leasing, and investing in residential and commercial properties. No matter the scope or complexity of your real estate aspirations, the Diamond Group is ready to provide expert guidance and support. Personalized Approach to Real EstateAt MVP Realty's Diamond Group, the core belief is that real estate services should revolve around the individual and their property. Led by April M. Keating, the team is dedicated to delivering personalized professionalism, tailoring their services to suit the unique needs and preferences of each client. Their commitment extends beyond transactions; it's about fostering meaningful relationships built on trust and reliability. Uncompromising Integrity and Superior ServiceThe Diamond Group upholds the highest standards of integrity and service excellence in every interaction. Their commitment to honesty, transparency, and ethical conduct ensures that clients receive not only expert advice but also a seamless and stress-free real estate experience. Expertise and Industry KnowledgeBacked by a team of seasoned professionals, MVP Realty's Diamond Group possesses extensive industry knowledge and expertise. Their in-depth understanding of local markets, trends, and negotiation strategies empowers clients to make informed decisions, maximizing their opportunities in the real estate market. April M. Keating: Leading with Vision and ValuesApril M. Keating, the driving force behind MVP Realty's Diamond Group, believes in a client-centric approach to real estate. Her vision revolves around putting clients first, ensuring their needs are met with personalized attention and dedication. April's leadership embodies the values of integrity, professionalism, and a commitment to excellence. Contact MVP Realty's Diamond GroupWhether you're considering buying or selling a property, MVP Realty's Diamond Group is ready to assist you. Contact them today at (239) 384-4663 to explore how their personalized, professional, and integrity-driven approach can help you achieve your real estate goals. Conclusion: MVP Realty's Diamond Group - Your Path to Real Estate Success MVP Realty's Diamond Group stands as a beacon of excellence in the real estate landscape, offering a unique blend of expertise, personalized service, and unwavering integrity. With a focus on individualized attention and a commitment to fulfilling clients' real estate needs, the Diamond Group at MVP Realty sets the standard for exceptional real estate services in Naples, FL, and beyond. For more information visit https://www.fldiamondrealtygroup.com/ 

Basics of Reverse Home Mortgage

Basics of Reverse Home MortgageA reverse home mortgage is a type of loan that allows homeowners to access a portion of their home equity without having to sell their home or make monthly mortgage payments. Unlike a traditional mortgage, the loan balance of a reverse mortgage increases over time and is typically only repaid when the homeowner sells the home or passes away.Differences from Traditional Mortgage Reverse mortgages do not require monthly mortgage payments, while traditional mortgages do. The loan balance of a reverse mortgage increases over time, while the loan balance of a traditional mortgage decreases over time as payments are made. Reverse mortgages are typically only repaid when the homeowner sells the home or passes away, while traditional mortgages are repaid over a set term. A Financial Solution for Seniors       For seniors, a reverse mortgage can be a great financial solution. It allows them to access the       equity in their homes without selling or giving up ownership.      Reverse mortgages are also a great way to supplement retirement income. They provide a steady stream of funds that can be used to cover living expenses.   With a reverse mortgage, seniors can enjoy their retirement years and have peace of mind knowing they have a reliable source of income.Reverse mortgages are also a great way to pass on wealth to heirs. The loan is paid off from the sale of the home, and the remaining equity is passed on to the heirs.Eligible homeowners obtain reverse mortgages for many reasons including:          Repairing or modifying the home to meet the physical needs of getting older         Supplementing retirement income to meet expenses         Managing the costs of in-home care         Paying off an existing mortgage         Paying increased bills due to inflation and economy         Paying property Taxes         Delaying Social Security         Providing a source of funds for living expenses in lieu of liquidating financial investments during     times of market downturn or disruption         Helping retirement savings last longer         Purchasing a retirement home  Recent ClientsA retired couple in their late 60s, John and Susan, were struggling to make ends meet on a fixed income, due to inflation and the cost of living increasing. They had significant equity in their home but were hesitant to sell it and downsize because of the current real estate market.  They decided to explore a reverse mortgage as an option to access their home's equity without having to sell it. The reverse mortgage allowed John and Susan to access their home's equity and use the funds to pay off their existing mortgage and cover their increased living expenses. They were able to stay in their home and maintain their quality of life, without having to worry about making monthly mortgage payments. Mary Anne, a retired infusion nurse, suffered some medical challenges and her insurance did not cover all of her additional expenses.  She decided a reverse mortgage was her best option. It allowed her funds to seek non-traditonal treatment and was able to eliminate the financial stress in her life, allowing her body to heal.A retired widow in his late 70s, James wants to stay in his home as long as possible. His home was mortgage free and he intends to leave it to his two children who live out of state. The reverse mortgage allowed him to access his home's equity and use the funds to make the modifications to continue staying in the home unassisted.It allows him the peace of mind knowing the has additional money to pay an in-home care giver if and when he needs one.He is able to stay in his own home and now worry about being a burden on his out of state children.  He expressed to me that feeling of relief is priceless.This article was submitted by Nicole Cramer with Anchor Funding, Inc.  Contact Nicole at 251-349-9891 or email her at nicole@cramergrp.com for more information about whether a reverse mortgage can work for you.