The best time to sell your house is traditionally after the children get out of school and before they go back to school – the Summer. But changes in your life or finances also play a big role.
The most recorded transactions for iBuyers happen during the months of March through June according to Attom data.
Yes. You’ll use the money you get from the house to pay off the mortgage. That’s why pricing your house correctly is so important.
Absolutely. You can do it by yourself (FSBO) or with an iBuyer.
There are 5 ways to find the right price for your home.
- Request a Comparative Market Analysis (CMA)
- Have an appraisal done
- Look at Comparable Sales in your neighborhood
- Use an iBuyer source to get a market estimate
- Find out what iBuyers will pay for your home at iBuyer.com
It’s likely the profit you make on your house is tax free but there are caps to that. If you’ve lived in the home 2 to 5 years before selling it then $250,000 of the profit is tax free. If you are married and file a joint return that doubles to $500,000.
If the market is a sellers’ market and there’s not many homes like yours for sale you can get away with less fixing up. If it’s a buyers’ market and there are more houses like yours for sale, then you’ll need to do more to make it look move in ready to get the price you want.
If you use an iBuyer to buy your house they’ll often do the minor repairs and cosmetic upgrades for you and subtract those costs from the purchase price.
There are fees associated with selling any house. If you use a realtor you’ll have an average 6% commission on the total house price plus home concessions and rent if you need to get out of the house quickly and possibly closing fees. With an iBuyer you’ll have a 6 to 13% service fee with the average being 7.9% but you’ll have no concessions to pay for and you’ll have up to 60 days to move which means no additional rent fees.
Yes, you can pocket list your house if you’re not in a hurry to sell it. That works best in a hot seller’s market. You can FSBO (For Sale by Owner) it and sell it yourself. Or you can sell your house to an iBuyer who will give you an offer online and if you accept it then your house is sold.
No. When you sell your house you must contact the bank and the sales proceeds will be used to pay off the mortgage on that house. Any money above that payoff will be your net profit on the house sale. There are rare cases of an assumed mortgage where your mortgage lender will allow your mortgage to be assumed by the buyer. This is appealing to buyers if you have locked in a lower mortgage rate than the current market rate for mortgages.
Absolutely. You can sell you house by yourself (FSBO) or with an iBuyer.
Yes, and it’s a good idea to purchase a home warranty whether you’ve been in the house a short or long time. Generally, a home warranty covers major appliances and other expenses which becomes even more important when buying an older home.
Yes. Look for a low-cost mortgage company who specialises in FHA loans. To get a FHA loan you must have a minimum credit score of 500 with a 10% down payment. If you have a 580-credit score or higher your down payment is reduced to 3.5%.
Yes, if you’re eligible for a USDA loan. USDA loans are for rural areas, but they often include suburbs so check the USDA eligibility map to see if your home location qualifies.
If you are a veteran, you may qualify for a VA loan where you get 100% financing with no money down. You will not pay mortgage insurance, but you will pay a VA Funding fee of 2.5% which will be rolled into the mortgage.
There are many options to buy a home with low income. The first is to look for lowest priced homes by looking at foreclosures and short sales where homes are deeply discounted for a quick sale.
- HomeReady is a Fannie Mae home mortgage program with low down payments and low credit requirements.
- Home Possible is another Fannie Mae low income home program.
- Good Neighbor Next Door will give you up to 50% of the home purchase
- Habitat for Humanity builds houses for low income people.
- Dollar Homes are FHA owned houses because owners defaulted on their mortgages are available at deeply discounted prices.
FHA loans, VA loans for veterans and Eagle Home Loans give home buyers with student debt up to $13,000 to pay off their student loans.
Yes. There are homeowners that sell their house on their own without a real estate agent. They are known as FSBO or For Sale by Owner homes.
Yes, unless you’re paying all cash you’ll need to get approved for a mortgage. The best way to do that is to get pre-approved before you look for homes.
That way you’ll have your financing in place and know your price range before you fall in love with a house you may not be able to get a mortgage for.
Buying or renting a home depends upon your life situation. Rents are getting more expensive, so home buying is a good option.
If you buy well, you can often pay less for a monthly home mortgage than you'll pay if you rent.
With buying a home you're also building equity because you'll own that home outright someday if you stay there long enough.
If you have all the documents prepared, then closing on your home is simply a legal step where you review the closing documents and sign them with the home seller present. This makes the transaction complete.
In the negotiations the move in date will be determined so that’s your time to let the seller know when you would like to move into the home. You cannot move in until the sale is recorded with the county which happens after the day of funding. Funding is when your lender sends the money you’ve borrowed to your title or escrow company to pay for the home you’re buying.
It’s simple, really. Go to an iBuyer website. Answer some questions about your home including location, age, square footage, if you have granite countertops and new appliances.
The iBuyer will review it and if your home qualifies, they give you an all cash offer within 24 hours.
The iBuyer will review the offer and fees with you. If you accept the offer they will send out someone to look at the house.
Next you’ll pick your closing date and some iBuyers will even help you move.
If you want to save yourself the trouble of going to several websites then let iBuyer.com give you an estimate range of what iBuyers will offer for your house.
That way you’ll know your selling range before you talk to the iBuyer and know a lot more about the process ahead of time.
An iBuyer program buys your house outright and gives you an all cash offer if it meets their eligibility requirements (which vary by iBuyer)
That means there’s no realtor, no house showings, no house prep by you and a very quick sale.
An iBuyer sale is quick and very efficient in that it saves you time in the transaction and you don’t have to show or prep your home to sell.
It’s your option to do repairs on your house yourself or have the iBuyer do those and take those expenses out of the sale price.
The iBuyer will then quickly put your home on the market but you’ve already sold it, so they’ll sell it as their inventory.
Because you’re getting instant liquidity on your house, there’s generally a premium and you may not get as much as you could on the open market.
iBuyer costs can add up to more than 10% of the fair market value of a house compared to the 5-6% commissions with a traditional agent.
These fees vary so it’s best to do your research. iBuyer.com is a research tool to get the information you need in either selling or buying your home.
You can either go to each iBuyer website, read through the website and fill out a survey for each or you make it easy on yourself and go to iBuyer.com.
Fill out one survey and you’ll receive an estimate price range from several iBuyers. This saves you time and iBuyer.com does the research for you.
Each iBuyer will pair you with a home advisor. If you feel that they’ve missed something in evaluating your house which would increase the price you absolutely can talk to them about it.
They make offers based on valuation models which they follow because they are taking the risk in buying and selling your house.