Tuesday, August 14, 2018 / by Ann Marie Sharp
As my client contemplated the purchase of a property that required substantial rehabilitation, “money pit” lurked in the back of my mind. In today’s hot real estate market, you would think that just about any home for sale would bring top dollar “as is.”
The truth is, buyers will not make top offers on homes that need substantial updating or extensive repairs. Buyers are cautious about taking on an expense that might unexpectedly cost them even more in the near future.
Getting your desired offer:
Even in a seller’s market, you must take certain steps if you intend to get top dollar for your home. Here are four steps that will help a potential buyer submit your desired offer:
· Prior to listing, get a professional home inspection
Sellers who offer their home in the best possible condition get top dollar.
There are few buye ...
Tuesday, July 10, 2018 / by Ann Marie Sharp
Home equity is the difference between the home's fair market value and the outstanding balance of all liens on the property.
Put another way, home equity is the portion of your home that you truly “own.” Your lender doesn’t own any portion of the home – technically, you own everything – but the house is being used as collateral for your loan.
As an example, assume you purchased a house for $200,000, made a 20-percent down payment, and got a loan to cover the remaining $160,000. In this example, your home equity interest is 20 percent of the home’s value: The home is worth $200,000, and you contributed $40,000 – or 20 percent of the purchase price. You own the home, but you only “own” $40,000 worth of it.
Equity begins with the down payment you put on your home and grows slowly with each payment you make against your mortgage principal. Building equit ...