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.
When selling a home, even tiny fixes can have a big impact. Here are 10 of the best low- (or no-) cost home improvement fixes to make your house stand above the competition:
1. Address the Heart of the Home
In real estate, the kitchen is a main selling feature and can be a make or break deal for potential home buyers. If a new kitchen just isn’t in the cards, consider replacing smaller ticket items and de-cluttering. Low- and no-cost fixes for the kitchen include:
- New cabinet hardware
- New faucets
- Installing a new backsplash
- Storing countertop appliances to create more work space
- Replacing dark valances with lighter fabric or removing them altogether
2. Update Switch Plate Covers
Switch plate and outlet covers are brittle, and can crack and yellow over time, resulting in a home that, no matter how well updated, still looks dated. New outlets and covers can be replaced in a snap for generally under five dollars, making it one of the lowest cost updates available. Consider flat switches that create a modern, streamlined silhouette and stick to white for a timeless look.
3. Beautify the Bathroom
An updated bathroom comes only second to kitchens in a buyer’s list of must-haves, so showing them a clean and uncluttered bathroom will score points with any potential buyer.
New flooring can give an otherwise tired bathroom a much needed facelift and create a newer looking bathroom overall. Coordinating linens, a new shower curtain, and thoroughly cleaned grout can top off this easy home improvement investment.
4. Address Storage
Storage is always a concern for buyers. Installing low-cost closet organizers to your existing space will increase storage and organization in your home. Add storage baskets to hide clutter and you will have beautiful storage spaces that will make any buyer envious.
5. Deep Clean for a Good Return
If your home contains wall to wall carpeting, clean carpets can make a world of difference to a buyer. Cleaning carpets can easily be completed in a weekend with a rental cleaning machine, and it creates a noticeably clean, odor free environment for buyers to tour.
6. Boost Curb Appeal
Nothing boosts curb appeal like a tidy yard. Trim and edge walkways, weed gardens, and trim shrubs for maximum impact. If you have a porch, consider potted, seasonal plants to bring the look together.
7. Improve the First Impression
As buyers approach your home, first impressions matter. Ensuring your entryway is clean and inviting with something as simple as a new mailbox or updated house numbers will make buyers feel welcome. Clean windows and doors for extra impact.
8. Add a Coat of Paint
Freshening up your living space with neutral colors will invite buyers to imagine their belongings in your home and will cover up any nicks, scratches, or dents your wall incurred over years of daily living.
9. Update Lighting
While not the lowest cost solution on our list, you will find that a new light fixture or two really breathes new life into key living spaces. If your budget is tight, look to kitchen, dining, and living rooms for the most bang for your buck.
10. Add Some Decor Pizzazz
Finally, a fresh look can be completed with nothing more than some colorful fabric. Inexpensive pillows and throws in a coordinating palette through your home will create a unified look that will have buyers hooked.
Lastly, don’t plan to tackle a home project DIY style until you read 5 Things You Need to Know Before DIY-ing A Home Improvement Project!
Source: CB Blue Matter Blog
Even though today is National No Housework Day (no, that’s not a belated April Fool’s Joke), spring cleaning season is in full swing. So, while you have permission to put off your honey do list until tomorrow, here’s a list of to do’s for your home this month.
1. April Showers Bring May Flowers – But, only if you prep the garden today! Lay mulch around shrubs and flower beds before the weeds take over next month. However, resist the urge to plant warm season annuals and vegetables until the last frost date has passed in your area.
2. Fresh Air, Fresh Paint – Planning to paint the exterior of your home, deck or front door? Start preparing exterior surfaces now by scraping and sanding so that when the warmer weather arrives, you’ll be ready to apply the first coat (without a coat on!)
3. Dust Off the Chaise Lounges – The days of lounging in the backyard are almost here! Take some time to clean and repair any outdoor furniture.
4. Get Rid of House Guests – While we all love having family and friends visit over the holidays, other unwelcome house guests can often make themselves at home in our roofs and walls during the winter. Follow this guide to inspect and repair damage from animals who took shelter in your home this winter season.
5. Organize the Garage or Shed – For most of the country, it’s finally time to stash the snow shovels and bust out the lawn mower. While you’re at it, consider Making Your Garage Smarter and More Energy Efficient
6. Spring Clean That Closet – Kick off your spring cleaning project by tackling one of the most cluttered spots of the home. Follow these three steps to a spring miracle: an organized closet.
Source: CB Blue Matter Blog
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
The Generation Blue Experience is the single greatest manifestation of what makes Coldwell Banker such an amazing place to hang your hat. That’s why we are so excited and proud to be debuting “Blue Matters” at Leadership Summit on 3.6.2018. Blue Matters is a documentary film that follows an experienced agent, newer agent and the corporate team before and during our blockbuster event in Las Vegas.
And if you’re wondering when and where we’re having the next Gen Blue – you’re in luck! We’ll be unveiling the date and location very soon! But if you want to hear it first, it will be revealed first at the CB Leadership Summit from March 5-7 in Plano, TX!
If you would like to know what Coldwell Banker agents have access to, head to coldwellbanker.com/join and explore the possibilities of moving your business to Coldwell Banker.
Source: CB Blue Matter Blog
You have decided to sell your home, and you are eager to sell it ASAP! You need to move or want those proceeds immediately, but how? Let’s go through the best ways to efficiently and effectively improve your home for a speedy sale.
First, curbside appeal. This is the first thing every potential buyer sees so make it stand out! Some suggestions:
- Hire a gardener to clean and spruce up the entrance
- Remove superfluous items from the front of your home, i.e. garbage cans, strollers, etc.
- Put a fresh coat of paint on your home’s exterior
Second, this is the time to clean and eliminate all clutter inside your home. Here’s how:
- Give away extra toys, clothes, and anything else that makes it look crowded or disorganized
- Organize the kitchen countertops and closets
- Place bulky items in storage
Third, landscaping matters. A large yard cannot shine if the plants, grass and trees are in bad shape. Try the following ideas:
- Artificial grass-this always looks amazing and eliminates the need for maintenance
- Tie orchids around the trees, plant fresh flowers and maintain the grass and trees
Fourth, look under the hood. Make the inside of your home look as good as possible.
- This is the time to do some of the minor repairs you have been putting off. This will make your home look better and may eliminate certain issues during the Inspection Period.
- Yes, it seems expensive or time-consuming. However, if you hire a professional company, this can truly make the difference and get you more money in less time.
Finally, hire a professional, licensed realtor. A realtor with experience and expertise can help sell your home quickly for the best price.
Best of luck!
Source: CB Blue Matter Blog
With the early spring selling season kicking off shortly after the new year, it’s time to give your home the boost it needs to meet today’s buyers’ expectations. Take advantage of being inside during the cold winter months with these quick fixes that will help your property stand out from the competition, boost its value and sell quickly.
Declutter & Organize
Start tackling one room at a time by packing up anything that will distract buyers from seeing the unique features of your property such as personal collections, family photos, newspapers, books and magazines. Rearrange and remove excessive furniture to simplify and make the room appear larger.
Make Basic Repairs & Updates
Make sure everything is in good working condition. Repair and replace broken light switches, bulbs, ceiling fans, door knobs, leaky faucets, shower heads, windows, thermostats, etc. Update lighting fixtures with contemporary styles and consider replacing older kitchen appliances with sleek, eco-friendly models to capture young buyer interest.
Refresh and Brighten With Paint
Remove wallpaper and cover bold wall colors with a fresh coat of neutral paint to set the perfect backdrop for simple, updated styling. Give older style kitchen cabinets or wood vanities an instant facelift by covering with bright white or dark espresso paint. Then pair with knobs and drawer handles in brushed nickel or satin brass for an elegant finishing touch.
There is nothing that dates a room more that worn, soiled carpeting. Remove and/or replace carpeting to reveal hardwood flooring underneath to instantly brighten and make the room feel more spacious. There are also many budget-friendly, easy to install options on the market now for replacing damaged flooring such as laminate and vinyl that look and feel just like wood.
Add Storage Options
Today’s buyers are looking for plenty of storage. Added storage solutions such as built-in bookshelves, window seats with storage underneath, entry storage units, and extra closet hooks and rods are a practical way to attract immediate buyer attention.
Partner With a Pro
Consult with a professional stager who will have an objective eye and knowledge of what appeals to today’s sophisticated buyers. They will provide a range of solutions for enhancing your home showings by recommending everything from furniture placement to wall color to complementary modern accessories to add clean, welcoming style.
For more examples of interior decorating and home staging, visit www.pjstagingdecorating.com.
Patti Stern, principal, interior decorator and professional stager of PJ & Company Staging and Interior Decorating, has been decorating and staging homes since 2005. She and her team provide turnkey, full service home staging and interior decorating to clients across Connecticut, New York and Massachusetts. Her company has received Houzz 2015, 2016 and 2017 Awards for Customer Service.
Patti has been featured in Connecticut Magazine, the Hartford Courant, Danbury News-Times and on NBC Connecticut and FOX TV. She is a regular contributor to the National Association of Realtor’s Blog, “Style, Staged and Sold.”
For more information, contact Patti Stern at 203-640-3762 or email@example.com