The price you have listed for your New York State home will not be the number that ends up in your bank account. Between taxes and closing costs, the final profit from the sale of your home may be significantly lower than you expected.
Closing costs often catch first-time home sellers off-guard. They are surprising because of how expensive they often turn out to be.
Those closing costs should be important points of negotiation between the buyer and the seller. Continuing with the rest of this article, you can learn more about them and how they manage them during real estate transactions.
Defining Closing Costs
Before we discuss closing costs and who should pay them, let’s first define what they are.
Simply put, closing costs are the fees that must get paid before a real estate transaction can finalize. These costs are quite varied. They typically include taxes, insurance, professional fees, and other costs. Many of the closing costs involved in real estate transactions are also necessary to facilitate the sale, so the parties involved must settle them.
Closing costs may also vary a bit from one state to another. Even if you have experience selling a home, the experience of moving your New York State property will likely be different.
Who Pays Closing Costs in a New York State Real Estate Transaction?
Who will pay the closing costs for your sale? In most cases, the buyers and sellers will jointly cover the closing costs.
A buyer must pay the fees imposed by their lender and charges set by other agencies. In addition, if they hire someone to help them negotiate the purchase, professional fees will also be in their closing costs.
Meanwhile, the seller will take care of the property’s title fees. They will also deal with professional fees and taxes.
We will get more into the closing costs that sellers typically cover later in the article.
Can a Buyer Avoid Paying Closing Costs in New York State?
We have already established that both the buyer and the seller involved in a real estate transaction will need to cover the closing costs jointly. However, is that always necessary? Can a deal still be made even if only one side pays for the closing costs?
You may be surprised to learn that avoiding closing costs is possible or that both parties can minimize the closing expenses they must pay.
Let’s start with the buyers. If you are hoping to get out of paying closing costs as a buyer, there are a few things you can do.
Seek Sellers Looking to Move Their Home Quickly
First, you should look for sellers aiming to close a sale quickly. Some sellers do not have time on their side when making a deal. They may need the money for an emergency or already have plans elsewhere, so they would prefer to finish the sale as soon as possible.
After finding that type of seller, you can propose to meet their list price if they will cover your closing costs.
Look for Homes That Have Stagnated on the Market
Not every listing is going to generate a ton of interest. However, if a home you like has been on your local listings for a while, the person who owns it may strike a deal with anyone who presents a fair offer.
Use that as your cue to come to the table. Tell the seller you will make a deal if they cover your closing costs.
Complete the Purchase in a Timely Manner
The situations we have described thus far indicate that the seller is in a compromised position. As a result, they will be more receptive to covering your closing costs because you may be their best and only chance to make a deal.
So, what can you do if the seller has multiple interested buyers and you still want to avoid closing costs? Well, one option is to show the seller that you will close the deal quickly.
Make it known that you are their best option if they want to get something done as soon as possible. Even if they are not keen on the idea of paying your closing costs, they may consider it if you agree to finish the deal by a set date.
Sellers in New York State are lucky if they can close a sale in around 50 days. Promise to get close to that mark, and you may be able to avoid paying closing costs as the buyer.
Present a Strong Offer
There is one more way to avoid the buyers’ closing costs, which is fairly simple. Of course, it would help if you blew the seller away with your offer.
Present them with a deal they cannot refuse. Come up with something you know the other hopeful buyers cannot match.
The idea of paying a huge upfront cost may not seem good, but there is logic to it. If you know, you will have a hard time covering the cash payments necessary to complete the transaction; then you can make a better initial offer.
In a way, you are still paying for the closing costs by going about things in this manner. Still, this approach may be preferable because of its convenience.
Can a Seller Avoid Paying Closing Costs in New York State?
Did you know that sellers pay more in closing costs relative to buyers?
On average, the buyers closing costs will be 2-5% of the property’s purchase price. The sellers closing costs may go as high as 10% of the purchase price. Even on the low end, it settles at around 8%.
Zillow can offer some more context regarding those closing costs. Per Zillow, home sellers typically paid closing costs in the range of $19,000 to $24,000 on the properties they sold as of December 2019.
That is a big chunk of change, no matter how you look at it. Is there a way to avoid paying that if you are the seller?
Because you will owe taxes on your sale, you must still cover some costs no matter what. However, you can reduce the amount you owe.
If you have an in-demand property, you can let your interested buyers know that you will sell it to whoever agrees to cover your closing costs. Negotiating with your buyer could also lead to an agreement that allows you to avoid most of those payments. But, of course, you can also handle the sale on your own to avoid realtor fees.
An Option to Ponder for Sellers Who Want to Avoid Closing Costs
Did none of the options mentioned in the previous section appeal to you as a home seller? They may not even be options for you to consider because of how your property is perceived.
It is tough to be in that kind of position, but you still do not need to sign off on paying closing costs just yet. There is still one more option you must consider before you make a final decision.
Cash home-buying companies make it easier for sellers to complete that transaction. In addition, there is no need to involve agents since you are dealing with the business directly. You are also not required to administer repairs because the company will purchase your property as-is.
As we have already hinted at, that will remove closing costs from the equation. The company will cover any costs associated with the transaction, so you can let them handle things.
These companies also submit offers quickly. After they get a chance to walk through your property, they will typically present you with an offer right then and there. You can accept the offer if you like or continue negotiating.
Closing costs are among the many things that complicate finalizing a home sale. However, if you want to keep things simple and sell your home for a tidy profit, the option we detailed here is well worth considering.
How Should Closing Costs Be Handled during Negotiations?
At this point, we now know that you can handle closing costs with some degree of flexibility. Buyers can find ways to avoid them; the same holds true for sellers.
Regardless of how you and your buyer decide to handle the closing costs, you need to be on the same page. Furthermore, you need to get that agreement on paper via the purchase agreement.
The purchase agreement is a legally binding document that sets the terms of the sale. It will outline the deal’s key elements, such as the agreed-upon purchase price and contingencies, and it may also include options for the buyer to renegotiate or terminate the sale.
Purchase agreements will also detail the closing costs.
You and the buyer must determine how you will handle the closing costs before anyone signs the purchase agreement. The arrangement itself does not matter that much as long as both of you agree to it.
If you agree to allow your buyer to renegotiate the sale up to a certain point, you must be ready to cover the closing costs. The buyer may decide that they will only push through with the sale if you cover those costs, so you should prepare yourself for the possibility.
Check and double-check the terms of the purchase agreement until you find it completely agreeable. Get your lawyer involved if you want some guidance.
Failing to abide by the terms of a purchase agreement will have dire consequences. Instead of making money on the real estate market, you may end up paying damages. Settle the closing costs and everything else in the purchase agreement to complete the transaction without much issue.
What Are the Sellers Closing Costs?
We mentioned earlier that sellers may need to pay around $24,000 in closing costs to finish a sale. You may wonder why those costs are so high.
Sellers have fewer closing expenses to pay relative to buyers, but those items are more expensive. So let’s go over those expenses in this section of the article.
Real Estate Agent Fees
What is the biggest closing expense for a home seller in New York State? You may be surprised to learn that it is often the real estate agent’s commission.
According to Homelight, the national average for a real estate agent’s commission is 5.8%. However, in New York State, sellers often pay closer to 6%.
Now, there are some key things to remember regarding the real estate agent’s commission.
First off, the 6% fee you are likely to pay as a home seller in New York State already accounts for both your agent and the buyer’s agent. On top of that, the realtors’ rates are negotiable. Try talking to them in the hopes of landing a better deal.
Hiring a realtor is not required if you sell your home in New York State. That said, you may have a tougher time generating interest in your property since the realtors will obviously prioritize their listings. However, you can get around that issue by working with a home-buying company instead.
Real Estate Attorney Fees
The vast majority of real estate transactions conducted in New York State involve attorneys. Heading into a negotiation without a legal representative at your side will be detrimental to your goal of landing a good deal.
Real estate attorneys draw up the terms of the purchase agreement. Tell them about the items you want included in the deal and let them negotiate with the other side. When both sides agree to the framework of the purchase agreement, both attorneys can start putting together the official document.
As the seller, enlisting the services of an attorney will also make gathering certain documents easier. Your attorney can help you save plenty of valuable time that way.
Attorneys may charge you by the hour or offer a fixed rate. Decide which one works better for you before finalizing your hire.
Unlike realtors, it is customary for buyers and sellers to pay for their respective real estate attorneys. Of course, you can still negotiate with your buyer if you desire.
Real Estate Transfer Taxes
Taxes should also factor into your considerations if you are selling your home in New York State. You will specifically pay the real estate transfer tax.
The real estate transfer tax in New York State applies to the sale of any property with a value of more than $500. Sellers will pay a tax of $2 for every $500 they make due to the sale. They may also be obligated to pay a mansion tax that amounts to 1% of their property’s sales price. The mansion tax would come into play if your property sold for more than $1,000,000.
Consult with your attorney so you can get clarity regarding the taxes you owe.
By the way, the tax rate is different if you are selling a property in New York City. The modified tax rate that applies to your property will depend on its type and sale price.
The transfer tax rate for most residential properties in New York City that sell for $500,000 or lower is 1%. However, if your property sold for more than $500,000, then your tax rate will jump to 1.425%.
The seller is the one who must pay for the transfer tax, but you can change that as part of the negotiations. As for the mansion tax, the buyer is the one who will need to foot that bill unless a different arrangement is made.
Title Search Fees
If you are trying to sell your property, you want to be certain that no one can contest your claims of ownership. The buyer will also want that assurance before they put the money down for the purchase.
You will need to pay for a title search to ensure that no one can make any potential claims on your property.
A title search will reveal if there are any tax liens or judgments that are currently on your property. In addition, it will reveal important details regarding your home, and your buyer can use what they learn to decide if they want to continue with the purchase.
Companies typically conduct title searches. The cost of a title search may vary from $100 to $500. The property’s location is the factor that most heavily influences the cost.
Given the costs associated with executing a title search, you may think of conducting it yourself. New York State residents can conduct their own title searches but doing so is generally not recommended.
For one, title searches tend to take long. So the time you could have used to finish the sale may instead be going into your title search.
There is also no guarantee that you will do the title search properly. Companies already know the details to look for to provide accurate results.
Lastly, your buyer’s lender may not accept the results of your personal title search. As a result, all your effort into that search may go to waste.
Taking on the title search fee is not ideal, but it beats derailing your sale.
What Are Potential Closing Costs That Sellers Must Also Keep in Mind?
Realtor fees, real estate attorney fees, real estate transfer taxes, and title search fees are the closing costs that most home sellers will need to pay. However, they do not account for all the potential closing costs a seller may encounter.
Found in this section are additional closing costs that can significantly eat into your profits.
The Remainder of Your Mortgage
Is the mortgage still active on the property you want to sell? If so, that is another closing cost to handle before you can finalize the purchase.
The remainder of your mortgage could be the highest closing costs. Hopefully, you are not selling too early, so you can keep this particular cost down.
Repaying your mortgage before selling is a necessity, no matter what kind of loan you used to pay for it. You may also need to pay the prepayment penalty. The mortgage prepayment penalty comes into play when a homeowner decides to pay off their entire loan early.
Title Insurance Fees
Despite conducting a title search, your buyer may still want additional assurance that their investment in your property does not become jeopardized. They may want title insurance so they are granted some measure of protection in the unlikely event that false claims or clerical errors subject their ownership of your old property to legal scrutiny.
Title insurance protects new homeowners by reimbursing their legal fees. So if something unexpected occurs, your buyer can mount a legal battle knowing that they have protection with title insurance.
The cost of title insurance is usually on the property’s final price. It will be around 0.14% of that final number.
Buyers often foot the charges for title insurance, but you can offer to purchase it to close a deal. It may be the last thing you need to pay to push the sale over the finish line.
Selling your home and preparing for your move are already stressful enough tasks. Worrying about closing costs while still juggling those tasks will be difficult.
Make things easier by working with a cash home-buying company. Contact us at House Buyers LI if you want to sell your New York home without paying any closing costs!
Whenever you start to ponder the idea of selling your home, there may be something that holds you back. On the other hand, it may be the home closing process itself that is giving you pause.
Depending on how urgently you need the money, you may find that going through the closing process does not make sense for your timeline.
Before you abandon the idea of selling altogether, let’s first discuss the closing process in greater detail. We will also discuss potential ways for you to speed up the closing process on a home sale. Stay tuned so you can learn how to navigate this process better.
Breaking Down the Process of Selling Your Home
If you are looking to sell your home in New York State, you will first need to go through a multi-staged process.
Ideally, you should first conduct some research. Check out market trends and seasonal data to determine if now would be a good time for you to sell your home.
After that, you must let buyers know that your home is available. You can do that by hiring a real estate agent and asking them to list your property for sale. This is the more conventional process and getting offers from prospective buyers can take some time.
Alternatively, you can speak directly to reputable cash buyers and ask them if they are interested in your property. Opting for this method makes sense if you want to make selling your home as easy and profitable as possible.
From there, conversations will begin between you and your potential buyers. Negotiations will follow once certain buyers show genuine interest in purchasing your property.
The closing process begins once you and your buyer come to an agreement. You might have assumed that you would finish the closing process in a few days, but that is rarely the case.
How Long Does the Home Closing Process Take?
The home closing process can turn into a drawn-out affair.
Per this article from Homelight, the loan origination platform provider ICE Mortgage Technologies says that the average time to close a home sale involving a purchase loan is 51 days. That number is accurate as of October 2022.
If you go back to last year, you will find that the closing process takes longer now. Last September, ICE Mortgage Technologies reported that the average closing time on homes purchased via loans is 47 days.
Digging deeper into the numbers reveals more interesting tidbits regarding the closing process.
This year, there is no discernible difference between conventional and Federal Housing Administration (FHA) loan closing times. However, it was a different story last year. The average closing time for transactions that involved conventional loans was 46 days. Meanwhile, closing times for homes purchased using FHA loans dragged out to 52 days.
How Long Does the Home Closing Process Take in New York State?
Property owners in New York State should consider themselves lucky if they can close a sale in around 50 days or so. In New York State, deals made using loans will often be handed over to lawyers once they enter the closing stages.
The closing stage going well beyond 60 days is normal in New York State. However, the closing process may last about three or even four months if issues arise.
You should be aware of how long closing on a home in New York State may take before you proceed with any plans to sell your property. The extended delay between finalizing the deal and the day it is officially closed may be too long for you.
Explore all your available options before accepting any offer. By doing so, you can be certain that you are getting the best deal in terms of dollars and convenience.
What Are the Steps Involved in the Home Closing Process?
Learning that the closing process for a home sale often drags out for months may surprise you. However, that fact becomes considerably less surprising once you understand the many steps involved in closing a home sale.
Many steps in closing a home sale also involve the lender and the buyer. Let’s go over those steps in this section of the article.
Sign the Purchase Agreement
The closing process officially begins after you and the buyer sign the purchase agreement.
The purchase agreement details the selling price and other aspects of the deal you struck with the buyer. For instance, the purchase agreement could indicate your deadline to complete the sale. If the buyer wants to take ownership of your property, they must fulfill the terms of the purchase agreement.
Typically, signing the purchase agreement only takes three days at most.
The Buyer Secures Their Financing
With the purchase agreement signed, the buyer can now work on securing their financing. This is the part of the process where the buyer gets the loan terms. The buyer will also need to supply all the necessary documentation to their chosen lender to secure the financing they need to purchase your home.
Buyers often need about one to two weeks to finish securing their loan. You can tell the buyer to work on securing mortgage pre-approval while you are still negotiating with them to reduce the amount of time that will have to be devoted to this step.
Your Home Is Appraised
Since home inspections are usually before the purchase agreement is signed, you will not need to go through that again during closing. Instead of an inspection, your buyer will hire someone to appraise your property.
The appraisal process is critical because it will tell the lender how much money they should hand over to the buyer.
Issues can also arise during the appraisal, especially if the appraiser’s valuation is well below what you expected. You may need to negotiate the deal again or get a second opinion if you believe the first appraiser made a mistake.
From start to finish, the appraisal process often takes one to two weeks.
The Loan Is Underwritten
The next step of the process involves the mortgage underwriter evaluating your buyer’s loan. Before the underwriter approves your buyer’s loan, they will first examine their assets and financial status.
Underwriters conduct a thorough review before making a final decision. That is why this part of the process can last for over a month.
Final Clearance to Close Is Handed Down
If everything goes according to plan, your buyer should receive the final clearance to close at this point. Once they get to this point, they will review their loan terms and decide if they want to proceed.
The mortgage lender typically gives their customers three days to study the loan agreement before they request a decision. After the three-day waiting period, your buyer can sign the loan agreement to receive the funds they will use to purchase your property.
Complete the Sale of Your Home
As soon as your buyer receives the money, the two of you can work on finalizing the sale. This is where you sign all the documents and pay the closing costs. You must also transfer the title to your buyer’s name to seal the deal officially.
How Can You Speed Up the Closing Process on a Home Sale?
Going through the closing process to sell your home is a lot of work. If you have a full-time job and kids to take care of, it is an undertaking that you may simply not have enough time for.
So, what are your other options if you do not wish to go through the conventional closing process? You should strongly consider partnering with a cash-buying company in that scenario.
Cash-buying companies make selling a home easier and faster.
The closing process changes because a lender no longer has to be involved. In the previous section, you may have noticed that the reasons why the closing process may drag on often come from the buyer’s side.
Because the lender has to be involved in nearly every step of closing the deal, the process inevitably takes longer. In addition, since different people need to get involved in the deal, they also contribute to extending the closing timeline.
You do not need to worry about that if you are selling your New York State home to a cash-buying company. The only parties you deal with on the other side are the cash buyers.
Deals involving cash buyers can be completed quickly. However, once you accept the offer from the cash buyer, the closing process will take around two weeks. Given that the conventional closing route takes thrice as long, it is clear that working with a cash buyer is in your best interests if you wish to move your New York State property as soon as possible.
What Are the Steps Involved in Selling Your Home to a Cash-Buying Company?
Selling your home to a cash buying company is significantly simpler than selling it to a typical buyer. To illustrate the difference between those two processes, we will also detail the steps involved in closing a sale to a cash-buying company.
Solicit an Offer from the Cash-Buying Company
Once a cash buyer shows interest in your property, you can ask them to put in a formal offer. This probably will not be the final offer for your property, but you should ask for it anyway to get a reference point moving forward.
Refer to the initial offer later to check if the buyer is still negotiating in good faith.
Examine Their Offer for Your Property
After receiving the offer, take the time to examine it carefully with your real estate agent.
The offer should detail exactly how much the cash buyer is willing to pay as well as any other terms pertinent to the deal. Make sure your real estate agent gets their eyes on the offer so they can tell you if it is in line with what other sellers have received.
Request Proof That the Cash Buyer Can Complete the Purchase
It is nice to see a cash offer, but you must first confirm that the buyer has the funds to complete the purchase. Ask the company to provide evidence that they can pay for your home. They do not need to provide specific documents, but you should ask them to present as much evidence as they can.
This time, you may want to get a lawyer involved so they can verify that the company you are negotiating with is legitimate. Do not worry about the process getting delayed. Even if you enlist outside help to confirm the legitimacy of your buyer, the entire process should only take a few days at most.
Allow the Cash-Buying Company to Conduct Their Inspection and Appraisal
The cash-buying company will not simply hand over the money after sending you their offer. They will also want to look closely at the property they are purchasing.
Allow them to conduct an inspection and appraisal to present a more informed offer. You will likely get their final offer once they can complete these parts of the closing process.
Expect this stage to take the longest if you decide to sell your home to a cash buyer.
Review the Final Offer
With the appraisal and inspection completed, you should now get the final offer from the company. Again, like with the earlier offer, review the contract with your realtor before agreeing to it.
Finalize the Sale
All that is left now is to finalize the sale. Sign the documents and transfer the title to the cash-buying company so you can put a bow on the deal.
Contact us at House Buyers LI if you are looking for a reputable cash buyer in New York State. Allow us to make the process of selling your home less stressful and more convenient.
Many home sellers rely on online services to conduct their business these days. So, if you are gauging the current value of your home, there is a good chance you have checked its Zillow Zestimate at some point.
Before you make any decisions regarding the Zestimate you received, it is worth asking some important questions. For instance, how much should you trust that estimate? Does it accurately reflect the true value of your home at the moment?
Selling your home will be one of the most important transactions you will ever take part in. However, you must rely only on accurate data to make that decision. Find out if your property’s Zillow Zestimate is a reliable data point by continuing with the rest of this article.
What Is a Zillow Zestimate?
Learning your home’s true value is not always a convenient process. For example, you may need to pay someone to learn the value of your home, and they may not provide the information you need right away.
If you only want to kick the tires on the idea of selling your home, going through the conventional methods of determining property value may seem like too much work.
Zillow appeals to many home buyers and sellers because it gives them the information they need instantly. But do you want to know how much your home is worth? The mentioned website can give you a valuation.
The valuation they provide is known as a Zillow Zestimate. Zillow Zestimates produces its estimates by using the company’s proprietary formula.
As the name suggests, a Zestimate is still an estimate of your home’s worth. Zillow clearly states that it is not an appraisal, and you cannot use it in place of one.
Consider the Zestimate as a reference point. Treating it as anything more than that could be a risky move on your part.
How Are Zillow Zestimates Calculated?
Now that we know what Zillow Zestimates are, let’s take a closer look at how they are calculated.
Zillow keeps its formula close to the vest, so we do not know exactly how they are coming up with their valuations. However, we do know about the data they are using in their calculations.
In terms of public data, Zillow leans heavily on tax assessor and county records. They also utilize the information they gather from brokerages and multiple listing services. Finally, they use the direct feeds provided by those sources to get the most recent information available.
They also integrate seasonal market trends into their calculations. So if any homes sold recently in your neighborhood, you could expect Zillow to take note of those transactions too.
To get a more accurate read on a particular property’s value, Zillow will use on-market bits of data such as the description of your home and the valuations of similar properties in the area. They will also account for how long a home like yours stays on the market to produce a Zestimate.
Zillow will consider additional information, including the square footage of your home and its standout features, before they come up with their valuation.
We do not know if Zillow uses other pieces of information. However, we know that the data points are all considered when Zillow produces your home’s Zestimate.
How Accurate Are Zillow Zestimates?
Zillow Zestimates are handy if you want to get a ballpark figure for your home’s value, but how accurate are those numbers? Zillow does not claim their estimates are super accurate for what it is worth.
They note that the nationwide median error rate for their on-market home Zestimates is currently at 3.2%. Meanwhile, Zillow says that the nationwide median error rate for their off-market home Zestimates is 7.52%.
Let’s take a closer look at data relevant to New York State so you can make a more informed decision regarding your property there.
Zillow Zestimates Accuracy for On-Market Homes in New York State
If you are trying to sell your New York home, you should know that the median error rate for on-market home Zestimates in the state is currently 4.09%.
Zillow notes that 57.25% of their estimates for on-market homes in New York State are within 5% of the actual sales price. Maine is the only other state where Zillow was less accurate when providing estimates within 5% of the final sales price.
Lower the bar to within 10% of the sales price, and Zillow’s success rate goes up to 81.77%. Zillow also provided estimates for on-market New York homes that were within 20% of the sales price 96.38% of the time.
Zillow Zestimates Accuracy for Off-Market Homes in New York State
It should be no surprise that Zillow’s accuracy drops significantly when it comes to off-market data.
Their median error rate for off-market homes in New York State is 9.61%. That is more than twice their error rate for on-market homes in the Empire State.
Zillow only gets within 5% of the actual sales price for off-market homes in New York State 28.59% of the time. That is a low number, and it is hardly dependable if you are serious about selling.
Setting the threshold to within 10% of the sales price raises Zillow’s accuracy rate to 51.52%. They also get to within 20% of the actual sales price for off-market homes 77.17% of the time.
The numbers indicate that Zillow has difficulty coming up with accurate Zestimates for homes in New York State. The only other state where they seem to struggle more is Maine.
Given Zillow’s struggles to gauge the housing market in New York, you should avoid relying on them to come up with your numbers. Instead, offer that same advice to other people you know trying to sell their homes in the state.
What Is the Impact of Having an Inaccurate Zestimate Attached to Your Property?
It would be one thing if the inaccurate Zillow Zestimate attached to your property were only known to you. However, since Zillow offers information to the public, which is obviously not the case.
Inaccurate bits of information that are widely available to the public can be problematic. This section highlights why they could get in the way of you selling your home.
Disputes between Buyers and Sellers May Emerge
When a buyer makes you an offer with an incorrect Zillow estimate in mind, the number may be well below what you expect. Of course, you may attempt to correct their incorrect assessment of your property’s value, which may only worsen the dispute.
Resolving the matter may either involve abandoning the deal or getting a third party to mediate it.
Your Reputation as a Real Estate Investor May Suffer
While trying to sell your home in New York State, you may constantly encounter buyers using data they gathered from Zillow to present offers. As you continue to decline offers well below market value, some buyers may think you are taking advantage of them. They may think you are not basing your numbers on accurate data because they are far apart from what Zillow provided.
Your reputation as a real estate investor could suffer because of that. Buyers may think of you as someone who jacks up their prices without real reason, and they may decline to work with you moving forward.
You May Make a Bad Deal
Arguably the worst consequence of having an inaccurate Zestimate attached to your property is that you may make a bad deal.
If you do not know how inaccurate Zestimates can be, you may believe that the low number assigned to your property is correct. After someone presents you with an offer close to that number, you may agree to sell your property.
You may only find out later that you lost substantial profits. Prevent that from happening by using other resources alongside Zillow Zestimates. Also, consider working with reputable home buyers if you wish to get a good deal on your New York State property.
What Can You Do if Your Zillow Zestimate Is Inaccurate?
You cannot ignore the potentially negative effects of having an inaccurate Zillow estimate. As we discussed in the previous section, they can have genuine consequences when you decide to sell.
Thankfully, there are steps you can take to correct the inaccurate Zestimate.
Claim Your Home on Zillow
To correct the inaccurate estimate for your home on Zillow, you must first claim it.
The process of claiming a home on Zillow starts with you providing your home address. After typing your address, you must provide other information to claim the home. Those bits of information may include your name and phone number.
Disputing ownership of your property may be necessary if someone has claimed it before you.
Add Information About Your Property
Next, you can now add information about your property to create a more accurate Zestimate. Note any new additions that may not be in your Zillow listing. Aim to provide as many accurate details about the additions as you can so your Zestimate can better reflect the true value of your New York State property.
Correct Inaccurate Details About Your Property
Lastly, you may need to correct inaccurate details about your property if it has been listed on Zillow for a while. For example, some of the details about the number of available rooms may no longer be accurate, so go ahead and correct them.
The old Zestimate for your property may also be counting its issues before your remodeling project. Discuss the repairs you made since the last time you updated the listing so Zillow can produce a more accurate estimate next time.
Why Is the Zillow Zestimate Changing Without Any Input from You?
Once you have become aware of your property’s Zestimate, you may develop a habit of checking it regularly. While doing so, you may notice your property’s estimated value change from time to time.
The changes may catch you by surprise because you are not doing anything on your end.
Although they may be concerning the first time you see them, those changes are nothing to worry about. Zillow says that Zestimates change due to market trends and seasonal demand. Therefore, the listing for your property likely changed to reflect the current condition of the housing market in your area.
What Are the Other Ways to Determine a Property’s Value?
Until you have adjusted the Zillow Zestimate for your property, the number it displays may not be completely accurate. If you are looking to sell your home without depending on the Zestimate, you need to explore alternative methods to determine a fair list price.
Check out the options below if you want to get an accurate price point for your property.
Hire an Appraiser
Hiring an appraiser to evaluate your home can help you determine its value. Appraisers research housing data, examine market trends, and inspect houses to determine their unbiased valuations.
Make sure you work closely with an appraiser, so they have a good grasp of what your property offers. Take them through a guided tour of your property if you think that will help them with their evaluation.
Consult with a Real Estate Agent
Whether you are buying or selling your home, you will likely need to work with a real estate agent at some point. Consulting with one early on in the process is not a bad idea if you want to get some information regarding your property’s true value.
A realtor can also show you what prices are like for other homes in the area. You can then use that information to determine whether your home’s valuation is accurate.
Zillow Zestimates can adversely affect your plans to sell your home because they may convince buyers that you are asking for an unreasonably high price. If you wish to receive fair offers for your property, consider working with us at House Buyers LI. Reach out to us today and sell your home without any difficulties!
When is it too late to stop foreclosure? You never want to find yourself in a position where you are asking that question, but it helps to know the answer regardless. If you encounter financial difficulties that could affect your ability to pay your mortgage, you need to understand how that situation could potentially unfold.
The idea of losing your New York home due to foreclosure is terrifying. In this article, you will learn about what you can do to avoid or delay foreclosure on your home. We will also lay out the potential timeline for stopping foreclosure so you can act in time.
Continue below to learn more about how foreclosure works in New York State.
When Is the Latest Time You Can Stop a Foreclosure in New York State?
In New York State, homeowners can end the foreclosure process at any time before their home is sold to another party. That is made possible by the Right of Redemption.
As long as you settle matters with your lender before the sale of your home is officially completed, you can still take back ownership of it.
Reclaiming your home after it sells at auction is no longer possible. Although some states provide a final redemption period that gives homeowners a final opportunity to reclaim their home after an auction, New York State does not offer that option.
You must get everything in order before then to avoid losing your home.
How Can You Stop the Foreclosure Process in New York State?
Homeowners in New York State have time to save their properties from foreclosure if they cannot make their mortgage payments on schedule.
So, what exactly can you do during that time? How should you go about stopping foreclosure on your New York home?
Let’s go over the different ways you can stop the foreclosure process in this section of the article.
Pay Your Loan
The simplest way to end your home’s foreclosure is to pay off your loan. You can go about doing this in one of two ways.
As the homeowner, you can pay your outstanding debt by reinstating your mortgage or pay off the entirety of your loan. No matter your choice, you should be prepared to pay more than what is currently on your mortgage.
Remember that you accrued interest and other charges when you failed to pay your mortgage on time. Those fees will now catch up to you.
Discuss Alternative Payment Plans with Your Lender
Continuing with your mortgage terms may not be a realistic option for you at the moment. You may need some relief. You should discuss alternative payment plans with your lender to secure that relief.
Hire an attorney and develop an alternative payment plan that can work for you and your lender. Then, present it to your lender and see if they find your plan to be agreeable.
Sell Your Home
If you cannot come up with the money to pay the remaining debt you owe on your home, you can try to sell it instead. By selling your home, you can secure the money you need to pay off your debt. You may even get some extra money you can use while searching for a new place if your home is in high demand.
Work with a home-buying company if you want to sell as quickly as possible while still snagging a good deal.
You never want to be in a position where you must sell your home to avoid foreclosure. That said, it could still prove to be your most sensible move.
Fight the Foreclosure Lawsuit
Once your lender files a foreclosure lawsuit, you will have an opportunity to contest their claim. Head to court with a lawyer by your side and start mounting your defense.
Homeowners can use various defenses in foreclosure cases.
If you long suspected that the terms of your mortgage were unfair, you can bring that up in court. You and your lawyer can argue that you failed to make payments because the terms of the deal were never reasonable to begin with.
You can also base your defense on the plaintiff’s mistakes while initiating the foreclosure process. Highlight that they failed to send the pre-foreclosure notice or the summons at the appropriate times. Defendants in foreclosure cases can also argue that the plaintiffs did not include the proper documentation when they sent the pre-foreclosure notice.
These technical errors can have a major impact on the outcome of a case. By drawing attention to these mistakes, you can convince the court to favor you.
It is also possible that the plaintiff is basing their case on a mistaken premise. For example, they may claim that you owe more money than you do because they failed to account for a previous payment. You can also win your case by pointing out that mistake on the part of your lender.
Ask the Court to Vacate the Default Judgment
The court may issue a default judgment if you do not respond to the summons in your foreclosure case. Therefore, to stop the foreclosure process, you need to give the court a good reason to vacate that initial judgment.
Many of the defenses that work in foreclosure cases are usable if you are trying to get the court to vacate a default judgment against you. In addition to those defenses, there are other reasons you can point to as valid grounds for vacating the judgment.
For instance, you can tell the court that you were ill or incarcerated on the trial date. You can also say that you had other commitments, such as a trip out of town or work.
The court may also vacate the judgment if you can prove that the other side gave you false information regarding the trial.
A defendant in a foreclosure case may also ask the court to vacate a judgment by showing that they are taking action to pay their debt. You can accomplish that by showing the court that you are in the process of selling your home or refinancing a mortgage.
Regardless of what reason you want to cite as you seek to get the judgment vacated, you will need to file an Order to Show Cause with the court. Speak to the court clerk if you need that form. You should also work with an attorney if you want to file the Order to Show Cause properly.
The Order to Show Cause could grant you another day in court. Make sure to attend that hearing if they granted it to you.
Lastly, you can also declare bankruptcy if you want to shield your home from foreclosure. Declaring bankruptcy allows you to reorganize your debt. It gives you a way out of your likely chaotic predicament.
Depending on the type of bankruptcy you file for, you may hold on to your home or at least stave off foreclosure for a couple of months. No matter your choice, you will have more time to develop a plan. That additional time can come in handy if you have some money soon.
Of course, declaring bankruptcy does come with significant downsides. Going through that filing means significantly lowering your credit, consenting to your name being published in certain public records, and potentially losing some of your prized possessions. Then again, enduring all of that may be worth it if you can hang on to your home.
Before we discuss how to stop foreclosure, let’s first take the time to detail what it is.
Foreclosure is a legal process that involves a lender assuming control of a property after a borrower fails to make their mortgage payments. Upon assuming control of the property, the lender can now sell it to the highest bidder to recoup their losses.
A foreclosure can either be considered a judicial or non-judicial process. As you have probably guessed, judicial foreclosures involve the court, while non-judicial foreclosures do not.
Interestingly, both types of foreclosures do take place in New York State. However, non-judicial foreclosures typically do not involve residential properties.
We will focus mainly on judicial foreclosures in this article because that is the issue that most homeowners in New York State are more likely to face.
How Does Foreclosure Unfold in New York State?
Foreclosures in New York State unfold over several stages. We discuss that process in greater detail below.
The Pre-Foreclosure Stage
The foreclosure in New York State typically begins when a homeowner falls behind on their mortgage payment by 90 days. At this time, you enter what is known as the pre-foreclosure stage.
During the pre-foreclosure stage, your lender can start charging you fees related to your delinquency. The exact fees charged may vary from one foreclosure to the next. This is also when the lender is legally obligated to send a pre-foreclosure notice.
The pre-foreclosure notice should detail some of the things you can do to remedy your loan that has gone into default. It should also include a list of housing counseling agencies that the government approves in your area.
During this process, you must pay close attention and note if your lender sent a proper pre-foreclosure notice at the right time. We will detail why that is important a bit later in the article.
The borrower can settle their debt with the lender at any point during the pre-foreclosure stage. Doing so will stop the foreclosure process dead in its tracks.
Filing the Foreclosure Lawsuit and Seeking the Judgment of Foreclosure and Sale
A lender can file a foreclosure lawsuit if at least 120 days have passed since the borrower made their last mortgage payment. After that, the lender can head to court to secure a judgment of foreclosure and sale.
At this time, the lender will send you a notice that includes the summons and complaint related to your case. They will also share the details of the foreclosure process using that notice.
You will have the option to file an answer to the notice and fight the notice in court. If they receive the summons in person, borrowers will have 20 days to file an answer. They will have 30 days to respond if they receive the summons in any other way.
In the state of New York, a judge will issue that judgment of foreclosure and sale if the defendant does not answer the summons and complaint, the lender wins the trial, or if the lender wins a summary judgment motion.
Before the judge can issue a judgment of any kind, they will first sign an order of reference they will bring to a referee. The referee then tallies the total amount that the borrower owes. The final amount will include any interest and fees the borrower has accrued.
If nothing changes during this time, the judge will sign the judgment of foreclosure and sale.
The Lead-Up to the Auction
Now that the judge has signed the judgment of foreclosure and sale, the referee will initiate the process of selling your home. How this part of the foreclosure process unfolds will depend on how you acted in the earlier stages.
If you respond to the notice sent by your lender, they must put a notice about the auction in the newspaper at least 30 days before it takes place. However, if you fail to respond, your lender is not obligated to provide notice before selling the home.
You can still do something to halt the foreclosure at this stage. Use your time before the auction to remedy this situation and regain control of your home.
Contact us at House Buyers LI if you want to avoid foreclosure by selling your Long Island home. We will present you with a great offer and get the cash in your hands quickly so you can put this whole ordeal behind you.
With your children purchasing their own homes and starting their own families, you may finally decide that the time is right for you to sell your Long Island home. However, you should consider how the NYS capital gains tax could affect your sale before you proceed with any purchase.
The capital gains tax does not get discussed often. That is a big part of why it tends to catch sellers off guard.
Learning more about the capital gains tax is crucial if you want to make the best decision regarding your Long Island property. Continue with this article so you can gain a better grasp of that complex topic.
What Is the Capital Gains Tax?
The capital gains tax is a payment the government collects from individuals after they sell certain investments. They regard the investments in question as capital assets. Only the most valuable possessions are capital assets. Examples of capital assets include stocks, bonds, cars, collectibles, and real estate properties.
For this article, we will focus on the capital gains taxes that are levied on the sales of real estate properties. To find out how much you owe the government after you complete the sale of one of your properties, you need to consider the amount you paid for a property and the price you eventually sold it at.
Let’s put forth a potential scenario so we can understand the capital gains tax even better.
If you bought a home years ago for $200,000 and sold it recently for $1,000,000, the government will not take their share from that complete amount. Instead, they will only tax your gain from that particular transaction. Even then, there are still exceptions that will come into play that can lower your tax bill.
Exemptions from the Capital Gains Tax
The government grants certain exemptions from the capital gains tax. The type of exemption you get will depend on your civil status.
According to the IRS, sellers may exclude a portion of their entire capital gain from a transaction. If you are single and the capital gain from selling your home is no greater than $250,000, it excludes you from paying the capital gains tax. They will only tax your capital gain that exceeds that $250,000 threshold in that scenario.
The $250,000 threshold only applies to taxpayers who report sales as individuals. The government will exclude married couples who reap capital gains from paying the tax as long as their profit does not exceed $500,000.
Qualifying for the Capital Gains Tax Exemptions
The exemptions from the capital gains taxes probably sound appealing. They may encourage you to push through with the sale of your property. Before you make any final decisions, you need to know that not everyone is qualified for those exemptions.
The IRS requires taxpayers to pass both the ownership and the use test before they can take advantage of the exemptions we discussed previously.
If the property you recently sold was not your main place of residence, then that means you cannot pass the ownership test. In all likelihood, you will not qualify for the exemptions if you sold a home that you only inherited recently.
To pass the use test, you must prove that you were living in that home for at least two out of the five years before the date you sold it. Notably, you do not need to spend those two years consecutively inside that property. You can tally up the days you spent living in that home when you file for the exemption.
So, what are your options if you do not qualify for the exemptions based on the ownership and use tests? Well, you can check if they can grant you an exemption based on other factors.
Members of the Foreign Service, the Intelligence community, and the Uniformed Services may receive the exemption. You may also qualify for the exemptions if you were recently divorced or if your spouse passed away.
There are additional factors that could make you eligible for one of the exemptions. If you do not qualify based on the ownership and use tests, consult with a realtor or a home buying company in your area to check if you may snag an exemption differently.
Situations Where You Must Pay the Capital Gains Tax
Taking advantage of exemptions could help you avoid hefty tax payments if you recently sold your home. However, as mentioned above, we already know that exemptions do not always apply.
What are the situations where individuals must pay the capital gains tax? Let’s go through them below.
You Failed the Ownership and Use Tests
We already touched on this above, but you cannot cite any exemptions if you do not pass the ownership and use tests. Prepare for a substantial tax payment if you find yourself in that situation.
You Used the Exemption within the Last Two Years
Property owners will also be disqualified from using a capital gains tax exemption if they used it recently. To be more specific, the law dictates that property owners cannot use that exemption within a period of two years.
Make sure you keep that rule in mind when planning to sell your home. Carefully time your transactions to take full advantage of the exemptions granted to taxpayers.
You Are Obligated to Pay the Expatriation Tax
Per the IRS, citizens of the United States who have renounced their citizenship and long-term residents who ended their resident status due to tax-related reasons are obligated to pay the expatriation tax. Your expatriation tax obligations will change based on when you became an expat. In addition to the expatriation tax, you will also need to pay the capital gains tax if you sell properties you have in the United States.
What Are the Capital Gains Tax Rates in New York State?
Next up, let’s discuss the capital gains tax rates. Similar to how the exemptions work, the capital gains tax that you owe the government will change based on how long you owned the property before you sold it.
Short-Term Capital Gains Tax Rate
The short-term capital gains tax rate applies if you sold a property that you owned for less than a year. The tax rate for short-term capital gains is more variable. It will vary based on which tax bracket you fall under.
Some taxpayers may have a short-term capital gains tax rate of up to 37%. Given how onerous the short-term capital gains tax rate is, you may be well-served to hold up on selling your property.
Long-Term Capital Gains Tax Rate
Compared to the short-term capital gains tax rate, the long-term capital gains tax rate is often more affordable and predictable. The New York State capital gains tax rate for long-term properties typically settles at around 15%.
You may need to pay more than a 15% tax on your long-term capital gains based on where you live. Residents who live near New York City may pay close to 25% once they account for all factors.
How to Avoid NYS Capital Gains Tax
If you are truly looking to avoid paying capital gains tax when selling your home, the best option would be to hold the note when you sell. Holding the note is also known as seller financing, owner financing, or purchase-money mortgage. What happens, in this case, is the seller becomes the “bank.” A real estate investor or person enters a real estate agreement with the seller, but the seller holds the mortgage in their name.
Some benefits to seller financing are:
You can receive top dollar for your home (sometimes even well over the asking price).
You can receive monthly cash flow without worrying about property maintenance, tenants, turnovers, etc.
You avoid NYS capital gains tax from selling outright.
You avoid paying closing costs (the national average cost to sell a home is 10% of the purchase price when you factor in broker fees and closing costs).
You are released from paying property taxes as this is the buyers’ responsibility now.
The banks don’t make the money. The seller and the buyer (if they’re going to rent it out) are the only ones who will make money from this transaction.
The terms are negotiable (i.e. down payments, interest rates, years until the balloon payment must be paid off, etc)
The main reasons why some will not seller finance:
They do not understand the process and don’t care to learn it.
They need a large lump sum of money for relocation or a major life event.
They are worried the buyer will not make the payments.
This can be easily remedied by having specific clauses in the agreement, such as no foreclosures, no evictions (as they can take years to process), after X amount of months without payment they must forfeit the home, etc.
How Can You Reduce Your Capital Gains Tax Payments?
Many property owners are hesitant to sell their homes out of fear that the capital gains tax will eat into their profits too much. Thanks to exemptions and other loopholes, you may not owe any tax payments, or it could be smaller than you thought it would be.
Of course, some property owners still need to make substantial capital gains tax payments. If you fall into that group, you may be wondering if there are things you can do to lessen your obligations.
You will be glad to know that reducing your capital gains tax payments is possible. Check out the tips detailed below and see which ones you can use to reduce your tax payments.
Offset Your Capital Gains with Capital Losses
Not all capital assets that you eventually sell are guaranteed to yield profits.
Some of them may have depreciated while you owned them. You may end up selling an asset for a price lower than what you originally paid. In that scenario, you have incurred something known as a capital loss.
Sustaining a capital loss is obviously not ideal, but it could be a useful tool for you later. If you manage to realize capital gains from the sale of a property, you can use your earlier losses to offset your tax bill. Your once hefty tax bill may look significantly lighter because of those previous losses.
Move to a Different Part of New York State
Earlier, we mentioned that you may pay additional taxes depending on which part of the state you call home. If you live in an area with an elevated tax rate, you can expect your capital gains tax to be on the high side as well.
You may not be too keen on paying a higher tax simply because of your address. In that case, moving to a different city could help you lower your taxes. Partner with a direct home buying company so you can sell your property and move to a different part of the state within a relatively short time.
Avoid Entering a Higher Tax Bracket
Income tax rates will affect your capital gains tax. New Yorkers who earn a lot of money are obligated to make substantial capital gains tax payments.
Right now, your income level may put you in a tax bracket that does not need to deal with sky-high taxes. That may change if you receive a promotion to a higher-paying position. Whatever additional income you make may be offset by your tax payments. You may be affected even more than the average taxpayer if you also have plans to sell a property sometime soon.
Time your sale to avoid entering a higher tax bracket before finalizing the transaction.
Prove That You Paid for Home Improvements
The cost basis factors into the calculation of the capital gains tax, so you want that to be accurate. The cost basis for the property you are looking to sell may be inaccurate. The cost basis may be inaccurate because you had to pay for numerous repairs shortly after originally purchasing that property.
You can point to those repairs as to why your capital gains tax should be lower. Hopefully, you have all the receipts and transaction records for those repairs on hand. They will prove useful as you attempt to reduce your tax obligations.
Use a Trust to Reduce Your Tax Obligations
Reducing your capital gains tax payments is also possible through careful estate planning. By setting up a trust, you can effectively shield your assets from different taxes.
The key here is to create the right type of trust. Work closely with an estate planning attorney and let them help you create a trust that will work best for your assets.
Utilize 1031 Exchanges
Using a 1031 exchange also gives property owners another way to avoid substantial capital gains tax payments. In 1031 exchanges, you basically swap one property for another. You can do that by using the proceeds from your sale to buy a similar property.
These exchanges can be tricky, and they are also limited in scope since they are only allowed for business and investment properties. Even so, you can defer tax payments if you can pull off this exchange properly. You may need to pay the capital gains tax eventually, but you can push that obligation farther into the future by using a 1031 exchange.
Sell your Long Island property without much issue by partnering with a direct home buying company. Reach out to us at House Buyers LI so you can move your property without getting bogged down by the often troublesome selling process.
Should I sell my house? That question may be bouncing around your head, and you may not know how to answer it. Selling your home is a major decision. If you do not time your sale properly, you could end up costing yourself a big chunk of change. But how can you tell if selling right now or waiting a bit longer is the right move? In this article, we will detail the numerous factors that matter when determining the right time to sell a home. Consider them carefully so you can make the right decision with your property.
The Factors That Determine the Right Time to Sell a House
It probably will not surprise you that several factors come into play when choosing the best time to sell a house. Some of these factors are ones you likely could have guessed, but others may not spring to mind immediately. In any case, you should account for all of them as you deliberate your decision.
The Way You Are Handling Housing Costs
Should I sell my house now? Many ask that question to find the right time to sell to maximize their profits. . For some homeowners, profitability is not the main reason why they are looking to sell. You may currently be in a situation where simply making ends meets is proving to be a real challenge due to the housing-related costs you need to pay regularly. Between your mortgage payments, taxes, and utilities, you may be barely scraping by. An inexperienced home buyer may not realize they are biting off more than they can chew. Now they are drowning in debt, and their only way out may be to sell, even if it comes at a loss. Some homeowners may prove stubborn and refuse to sell even if they cannot afford to stay in their current situation. It is easy to understand why they are reacting that way, but you should not follow suit if you ever end up in a similar predicament. Keep going in that direction, and you could lose your home altogether. Selling at a loss is not an easy pill to swallow, but it beats losing your property for nothing.
The Length of Time You Have Spent in Your Home
When you purchase a home, your expenses go beyond the list price. First off, you pay for closing costs. Closing costs typically include the appraisal fee, the application fee for your loan, insurance fees, and several other expenses. According to Nerdwallet, the expenses typically cost around 2 to 5% of the loan amount. In addition to the closing costs, you also pay your real estate agent’s fees. The interest you pay on your mortgage will also hike up your expenses further. Given all the expenses associated with buying a home, you may find yourself in a hole early on. Your new home may not be an asset yet. Most experts agree that a buyer should live in their new home for at least five years before selling to recoup their purchasing expenses. You do not need to wait that long if you do not want to but being patient will allow you to extract a greater profit from that transaction.
The Current State of Interest Rates
Homeowners should also account for interest rates when deciding whether to sell now or wait. There is a case to be made that you can sell your home whether interest rates are trending down or up. If the interest rates are trending down, you can sell your home now and purchase a new house for a relatively affordable price. If interest rates are soaring, you can capitalize on buyers looking to purchase as soon as possible so they can avoid sky-high list prices and mortgage payments. Remember, you will also deal with the conditions affecting your home buyers if you intend to go into the real estate market soon after selling. You can bide your time until interest rates go way up if you do not need to purchase a replacement home right away.
The Trends Affecting the Real Estate Market in Your Area
Keeping up with trends is always important when it comes to real estate. If you have kept your pulse on the market, you should know which specific cities have become more popular living destinations. In recent years, cities like Austin, TX, Boulder, CO, and Portland, ME, have become more appealing to people on the move. You should also check if your city has become a more popular destination for people looking to settle down. If it has developed that kind of status, there is a good chance the value of your home has increased significantly. Selling your home in that trendy city could become one of the best financial decisions you ever make. Time your sale right, and you could secure a purchase while your home’s value is at its peak. Of course, securing a sale at peak value is easier said than done. If the transaction goes slower than expected, you may not fully capitalize on the existing trends. You can avoid that potential problem by working with a direct home buying company. Direct home buying companies work quickly to close sales. They also give you cash for your home and ensure you can extract fair value from your asset. Simplifying the home selling process is possible if you work with a direct home buying company.
The Needs of Your Growing Family
Not too long ago, a two-story home with two bedrooms seemed big enough for your family. You and your spouse used one room while your toddler stayed in the other. It was a comfortable setup that worked for everyone. Right now, two stories and two bedrooms may not seem sufficient for your growing family. That could be the case if you had more kids. Your kids need their own rooms. Building an addition can provide extra space, but rules in your area may prohibit you from constructing what you truly need. Instead of trying to squeeze into your current home or making modifications that are temporary solutions at best, you may want to consider selling your current home and buying something bigger. If this is the current predicament you are in, you may be able to wait a while. Remember, your children are not getting any smaller. Moving into that bigger home will become a necessity sooner rather than later.
The Desire to Downsize
Selling your home so you can immediately move into a new home is justifiable, not only if you need more room for your growing family. It is also a move worth considering if you are downsizing. Downsizing becomes an option for older homeowners who no longer have children living with them. An older couple may find a massive four-bedroom to be excessive. Instead of letting all that extra space go to waste, they can sell their home and look for a replacement that suits them better. Opting to downsize also makes sense for older couples if they want a home that accommodates them more effectively. Getting around a smaller home is undoubtedly easier than navigating a massive property. You should also consider downsizing if you are retired and could use the extra money. The profits you realize from selling your larger home can allow you to live more comfortably during your golden years.
The Season for Selling Has Arrived
As we have touched on at various points throughout this article, timing plays an important role in determining the value of your property. There are good times to sell throughout the year. However, selling may be particularly profitable during certain months. According to this article from Forbes, the spring season is the best time for selling homes. Spring is the best period for selling because more energized and motivated buyers are in the market during that time. They likely waited out the winter to proceed with their plans, so they may be chomping at the bit to complete a purchase. March has emerged as the best month for selling, but you are still in good shape even if you wait until April or May. Selling during the summer season is also not a terrible idea. You could run into buyers eager to finish their move before the start of the new school year, and they may be willing to pay a premium for your property. Buyers are harder to come by during the summer months, but you could still get a good deal in a less crowded seller’s market. If it is already fall season, you should probably wait to make your move. You can keep your home on the market if you want but do not expect to be blown away by the offers you receive.
The Demands of Your Job
Moving is a necessity for many of us because of our jobs. You may have finally snagged that promotion you have been eyeing for a year, but you will need to move to a new city to lock down that position. Living in a new city may not have been part of your plans originally, but the whims of your workplace can change that in a hurry. The potential issue with selling your home in that situation is that you feel pressed into making a less than optimal deal. If you need to move to a new city in a hurry, you may not receive the best offer. The only saving grace is that the extra income you are getting from your promotion can help you pay for your new home faster.
The Home You Are Selling Is Part of Your Inheritance
Recently, you may have become the owner of a new home that was passed down to you by your parents or other older relatives. So, what should you do with that inherited home? Moving into that new home is always an option, particularly if it is a property that means a great deal to your family. Renting out an inherited home is also worth considering if the property in question does not possess a lot of sentimental value. You can also sell an inherited home if you are so inclined. Coming into possession of an inherited home provides you with a unique opportunity. In a situation like that, selling immediately or waiting are both viable options. That is because you can still stay in your current home as you figure out what to do next with your inherited home. Consult other factors when deciding what to do with your inherited property. Check out market trends and interest rates to find out if right now is the best time to sell that new acquisition of yours.
The Current Condition of Your Home
Even the best-designed homes will start to show their age at some point. Once they do, you will have a decision to make. You can either pay for renovations and stay in your home or pay for renovations before selling your home. Selling your aging home without fixing it first is a big no-no. The moment potential buyers drop by to check out your home, they will likely notice those serious issues and turn their attention to a different property. Whatever offers you get for your aging home may be well below market value. You would be doing yourself a great disservice by selling your home at such a discounted price. Unless you are in a desperate position financially that paying for repairs is no longer an option, you should wait until your home is in better shape before selling. You may even get a better deal than expected if you opt to wait until they finish those renovations. Selling your Long Island home can be a troublesome affair. You can make it easier by working with a direct home buying company. Contact us at Home Buyers LI if you want to receive the best deal on your property!