Most people won’t live in the same home for 30 years, the typical life of a mortgage loan. So, when it comes time to sell, many homeowners still have mortgage debt to deal with. Is this a problem? What happens to your mortgage when you sell your home?
Once you sign your name on a mortgage loan, you are responsible for the money—no one else. This means that you must pay it back, which you can do with the money you gain from selling your home.
The truth of the matter is that selling a house with a mortgage is a common occurrence. It’s not something you need to be embarrassed or worried about. However, there are a few things you should be aware of and a few steps you should take before you try selling a home that you still owe money on.
Check Your Mortgage
The first step to selling a house with a mortgage is to contact your mortgage lender and ask about your current mortgage. You want to know:
- Your current mortgage payoff amount
- Your due-on-sale clauses
Your mortgage payoff amount is the exact amount of money, including accrued interest that you owe to the bank. This amount is typically good for 10-30 days and represents the outstanding loan balance that you must pay. The last thing you want to do is default on your mortgage.
The due-on-sale clauses reveal the exact rules of how to sell a house you still owe money on. It covers such information as when the paid-in-full loan is due and what the process is, including any fees. The clauses won’t tell you who you can or can’t sell your home to, but they may need some additional information about the buyer’s mortgage lender. Be sure to ask any questions you might have about these clauses, so you have a full understanding before you take the plunge and start your sale.
Selling Your Home
Once you know the ins and outs of your loan terms, it’s time to get to selling a house with a mortgage, which can get slightly complicated. First, you’ll want to work with a title company.
If your current lender doesn’t set you up with a title company, you can hire an agent on your own. This agent will be responsible for ensuring that there are no issues with your property’s title, and act as the intermediary throughout the entire purchase and sale process.
Here’s what happens to your mortgage when you sell your home and use a title company:
- The title agent holds the money from the new buyer during the sale
- After you sign all the documents at the closing table, the title agent uses the sale money to pay your current mortgage holder
- Once the amount has been paid, the title transfers to the buyer and you, as the seller, are given the leftover money (minus various fees)
If the sale covers the full cost of the current loan, it’s a fairly smooth process. However, if you owe more than your home is actually worth—negative equity—there could be some trouble. In that case, you’ll have to work out a deal with your lender for a reduced payoff amount, or you may need to refinance and stay in your home for longer than you planned.
In the end, selling a home with a mortgage shouldn’t be a problem. The most important thing is to know your options, so that you can make the right decisions.
For help throughout the entire selling process, visit www.coldwellbanker.com and find a real estate agent near you.
Thinking of selling your condo? Whether you live in the condo or own it as an investment property, if you’re ready to sell your home, it’s time to talk to a qualified real estate agent in your area. By evaluating several criteria, including regional markets, time of year, features of your condo unit, as well as your specific needs as the seller, he or she can create a customized marketing plan for your condo. Here are five important topics to discuss with your real estate agent if you want to sell your home:
1. Best Time of Year to Sell Your Condo
The specifics of your area do more to determine the best time to put your home on the market than whether you’re selling a condo or a house. While the conventional wisdom is that spring is the best time for selling a home, this belief simply doesn’t ring true in every locale. In recent years the historic patterns have eased, and in some cases, totally disappeared. Still, different parts of the country have periods when sellers can be more aggressive with their pricing. And your real estate agent may suggest a distinct timing strategy for condominium sales, especially if your condo is in a resort destination.
2. Open House Strategy and How to De-Clutter
A condo that shows well will sell faster and bring a higher price. Small cosmetic touch-ups can make a big difference. Buyers often suspect that more serious problems may exist if they notice the need for minor repairs. If you want to sell your home, it’s important to make sure your condo is clean, tidy and free of personal clutter. Clear sinks and counters of dishes and toiletries. Neatly stack office supplies and organize storage areas. Replace dim light bulbs and clean windows. Even though your garden area may be commonly owned, do your best to create curb appeal by cleaning front steps and porches, and clearing lawns of toys or equipment.
3. Features to Accentuate
One of the best features to accentuate when selling a condo is the lifestyle of ease that comes with condominium ownership. Many buyers are looking for the hassle-free living experience that they can’t find with a single-family detached house. Another important attribute of any condo is the amenities of the association, which can include a hot tub, fitness center, owner’s lounge, covered parking and even concierge services. If you’re considering selling your condo, take the time to walk through it methodically with your real estate agent. Together you can point out which features of the actual condo unit should be accentuated. Does your unit have a wonderful view? Perhaps the location of your condominium is unique and desirable. Your real estate agent can help accentuate these features in sales and marketing materials.
4. Desired Price and Bottom Line Price
When setting the home price for your condo, it’s important to identify your desired price and your bottom line price. By assessing recent condo sale and listing statistics in your area, your real estate agent and a licensed appraiser can estimate your house value and recommend an appropriate target price range. Working with your agent, you can set an initial asking price, as well the absolute lowest home price you would comfortably accept. One advantage of selling a condo is that by assessing the prices of other units in your association that have recently sold or are currently listed, your real estate agent and the appraiser can determine a very accurate house value.
When selling your condo, you may be obligated to disclose problems that could affect the property’s value or desirability, as well as to disclose HOA minutes and costs of common insurance and utilities. In most states, it is illegal to fraudulently conceal major physical defects in your property, such as a water heater that leaks severely. And many states now require sellers to take a proactive role by making written disclosures on the condition of the condo unit. Ask your real estate agent for the particular laws of your state.
After reading this article, read more tips on selling a home and make sure you get the best value on your property on Coldwell Banker’s Seller Resources.
Source: CB Blue Matter Blog
Coldwell Banker Real Estate professionals weigh in on what you need to know when navigating the real estate process.
Get your game on with a traditional Thanksgiving Dinner! Thanksgiving dinner in Northern California can be more traditional than typical, as many locals will have wild game on their tables on November 23.
Target Your Turkey
Turkey hunting is not just a sport for people who live in the great Nor-Cal area. Once turkey season is open, the forests and ranges are alive with hunters looking for their Thanksgiving turkey. Turkey season is open November 11 to December 10.
Open Range to the Oven Range
Wild turkey is very different from a bird purchased at the grocery store. The breast is much smaller and the legs are longer. The taste is much the same, but if the turkey is old, it can be tough and gamy. Picking the right bird for your traditional Thanksgiving dinner is determined by your experience. Recognizing the difference between a young turkey and an old one is learned from trying to chew the wrong choice a few seasons. Hunters who are true sportsmen always eat the game they take; this is a standing rule here in the North State.
The Call of the Wild
Turkey hunters all have their favorite “call.” Some hunters can imitate a turkey with a certain whistle they do with their tongue. Most hunters prefer a store-bought turkey call. Once tested and found to be irresistible to turkeys, the call goes into the hunters gear and used for years after.
A Healthy Experience
Hunting for a turkey for the traditional Thanksgiving dinner table is for many people preferable to choosing one in the grocery store meat department. Wild turkeys have free range, they have had no hormones to plump them up, and unlike store bought turkeys, there are no additives. Yes, the ones at the store are guaranteed and there are hundreds to choose from. There’s no need to go out in the cold, sitting and calling for hours unless you truly do want a traditional Thanksgiving dinner.
This year, it is estimated that over 20,000 hunters will try to bag their bird, but only 10,000 will be successful. There will still be lots of sales at the super market.
If you think you’d like the experience of going out in the woods, trying your talents on a turkey call, and choosing the right bird, make sure to get your hunting license first. You will also need an upland game bird stamp. Both can be purchased from the California Department of Fish and Wildlife.
Source: CB Blue Matter Blog
Save time, energy and frustration by using smart home tech the next time you host family and friends for a holiday meal!
Guest post by June Lawrence
Whether your holiday entertaining features casual cocktail parties, full-fare, sit-down meals, or an open house for friends and neighbors – you can save time, energy and frustration with the latest home tech solutions that make holiday hosting easy. Smart home automation trends have made steady inroads in domestic consumer goods, home automation, and wireless entertainment market sectors, with expectations to surge beyond $3 billion in 2017.
Basic smart home tech starts with voice-controlled devices, wireless sensors, and semi-artificial intelligence platforms changing the way we entertain, work, and interact. These can reduce and help with chores that eat up your time and energy when hosting during the holidays. Whether you are menu planning, grocery shopping, stocking the bar, notifying attendees, or cleaning, there’s an app – or smart gadget to the rescue.
Holiday Shopping Helpers
Holiday menu shopping has never been simpler with The Shopping Button. As you scrutinize the pantry, use the voice recognition and recording features to create your holiday grocery list on-the-go. If this year’s holiday feast and lavish delicacies are a budget-buster, use this gadget to save money by scanning barcodes at your local, premium marketplace. Then connect and download your selections online for price comparisons and fast order placement.
New low-profile robotic vacuum cleaners include many updated features. Precise control directly from your smartphone takes care of last-minute clean-up or tidying between guest functions. Not only can you clean low-pile carpet or hardwood floors with a preprogrammed, recurring schedule, these labor-saving vacuums also dock and clean themselves.
Preparing the Kitchen
Smart home and kitchen automation systems are possibly the greatest application of smart technology for worry-free holiday hosting. Kitchen appliances that mate with a wide array of on-demand applications monitor and provide continuous feedback while preparing holiday dishes and desserts.
Smart kitchen appliances equipped with on-board intelligence, high-powered thermometers, and digital sensors tell you when to stir, flip, or add ingredients – like the pantelligent. Cook fast or slow, but cook smart with pressure cookers and crock pots monitored and controlled via smartphone.
For those with a bigger budget, consider swapping outdated kitchen appliances for new, connected cooking versions. A smart home hub provides seamless connectivity for multiple appliances; such as refrigerators that automatically send restock messages and smart ovens for perfect holiday pies. According to HomeAdvisor, the national average cost for a home automation system is about $1,200.
Cooking the Main Dish
Presenting the perfect Thanksgiving turkey or a succulent Christmas ham can be worrisome. Consider a smart thermometer with presets for all types of meats and weights to take the anxiety out of over or undercooking the holiday bird. You’ll always know the temperature of your food and exactly when it’s done. The key is a Bluetooth connection to your phone and easy-to-use, icon-based apps.
Large parties, especially those held at an off-site venue, often require the same planning and coordination as small corporate events. Consider party planning appsthat feature automated email invitations; interactive, step-by-step mixology videos, and helpful reminders at every stage of your event planning timeline.
And not to worry, you can always keep the holiday cheer pouring with an Internet-connected wine cooler. Within 30 seconds, internal cameras will scan wine labels to correctly identify and chill each bottle independently and at the perfect temperature.
Even sensor-driven kitchen fixtures lend a helping hand with liquid refreshments. Taps that deliver steaming hot water on command or touchless faucets that turn off and on with hand gestures are quick plumbing installations that cost between $90 – $500.
For the perfect finishing touch to a great holiday party complete the holiday ambiance with lighting. Consider installing the Phillips Smart Hue line of wireless and smart lightbulbs. Go from warm white exposure for casual conversation to a holiday-inspired scene for singing, dancing, and drinks. Smart lighting is also a great way to establish different moods throughout the home for an array of holiday entertaining or age groups.
Why spend the holidays frantically keeping up with all there is to do when smart home tech can lend an extra set of eyes, ears, and hands for trouble-free holiday hosting!
Source: CB Blue Matter Blog
The keys are yours, now what?
Congratulations! You’re a new homeowner. While you may not be able to wait to move in, there are a few things you should consider tackling before hanging those family photos on the walls.
1. Change the locks – For peace of mind, it’s a good idea to change out the locks on your exterior doors to ensure that anyone the previous owners may have given a key to can no longer access the property. According to Home Advisor, the average homeowner spends between $100-$300 hiring a locksmith.
2. Paint – Don’t love the lemon yellow the previous homeowners chose for the master bedroom? Painting your new home will be infinitely easier if you can do so before moving furniture into the space. Head to your local paint store to pick up a few samples to test before committing. Take your time and be sure to view the color swatches in different lights before committing. There are also handy online visualization tool like the Benjamin Moore Personal Color Viewer.
3. Take care of your floors – Like with painting, treating and refinishing floors is much easier without furniture in the way. Costs for this project will vary depending on the size of the job, but you can estimate roughly $200 for supplies and equipment. Check out this useful guide to refinishing wood floors from This Old House before heading to the hardware store.
4. Make any necessary repairs – Does the bathtub need to be re-caulked or the tile re-grouted? Do the floor boards creak? Make a list of priority repairs and tackle them one by one. You’ll be happy you did a few months from now when other projects crop up on the honey do list.
5. Clean from top to bottom – The only thing better than a new home is a clean new home. Now is the best time to give every nook and cranny of your home a deep clean. Scrub the inside of appliances like the refrigerator, oven, dishwasher and microwave. Wipe down walls and baseboards with a damp cloth. Looking for clever ways to banish grease and grime? Check out our Home Tip of the Day video series.
6. Set up your utilities – Call your electric, gas, cable and water utility providers to make sure service is transferred to you after closing. You’ll also want to research when trash and recycling pick-up are scheduled for your zone.
7. Change your Address – While you may want those mortgage bills to be sent elsewhere, it’s important to file a change of address with the US Postal Service to ensure that all mail is forwarded to your new address following your move. Also be sure to alert friends and family of your new address. They’ll need to know where to send that housewarming gift!
Now, the only thing left to do is celebrate! Looking for great housewarming party ideas? Try one of these backyard flings!
As a homeowner, security and privacy can be an important priority. Learn about how to secure your home without always keeping a watchful eye.
Guest post by Eric Murrell
It’s never been easier to secure your home, thanks to an abundance of new gadgets on the market. Setups that once required professional installation and thousands of dollars in highly technical equipment are now easy to put together with off-the-shelf products and a few inexpensive apps. It’s a great time to be a consumer, and frankly, a bad time to be a criminal.
All of these new gadgets and services are great, but what if you’re worried about your privacy? Hacks and security breaches in the news—or simply the fear of loss of privacy between family members—have made some people uncomfortable with a camera-based security system inside their home. Thankfully, you can still make high-tech upgrades to your home to keep you safe without always keeping a watchful eye.
The first option to consider is a modern twist on a classic home security setup: motion sensors. Whether it’s a motion-sensitive light on your front porch or a few sensors placed around the home, motion-activated lights and alarms can be a surprisingly effective deterrent to the average thief.
Using today’s smart home technology, it’s easier than ever to add battery-operated sensors to strategic spots around your home. Both inexpensive and easy-to-install, these new sensors can trip lights and alarms like the old ones, but can also pair with a smart home hub to send instant alerts to your smartphone the moment an intruder is detected. Take a close look at your new thermostat or other smart devices; many include motion sensors that are already built-in.
To add an additional layer of security, purchase smart door and window sensors that serve as a first line of defense from the outside world. Like the motion sensors, inexpensive models are available that integrate with most smart home platforms. It’s simple to configure open and closed alerts, but you might find it even more helpful as a passive form of home security. Worried that you forgot to close the garage door after letting the dog out? By taking a quick glance at an app while you work, you can know for sure.
Even if you rule out in-home smart cameras, do consider having smart cameras outside your home so you can see if packages are delivered and if there are any trespassers in your yard. The most well-regarded systems now include location-based privacy features that use your smartphone to automatically adjust their settings, offering an unprecedented combination of privacy and security. Using the GPS signal from your phone, it’s easy to activate your full security network when you leave the house, and have the cameras automatically turn a blind eye the second you pull in the garage.
Security is personal for every family. Explore your device options, and even ask your internet service provider if they offer a home security solution, as bundling services often results in additional savings. Likewise, your ISP may offer the ability to control all of your existing home security gadgets from a centralized app. Whether you install array of sneaky sensors or smart locks, there are a wealth of connected home devices that can help keep your family safe without betraying their privacy. A good night’s sleep is only an app away.
Source: Coldwell Banker Blue Matter Blog