| The problem is replacing the home will eat up all of the | | | | 3. What were your average days on the market? |
| money that they have received from the sale of their | | | | 4. What was the percentage of list price verses sale |
| home! Well it does not have to happen, there is a way | | | | price? |
| to keep most of your profits and live in a home of | | | | 5. What do you know about my home area? |
| your choice without having to pay cash. | | | | 6. What is your marketing program, and do you have a |
| First let's look at the options | | | | detailed plan? |
| If you purchased your home 30 years ago you most | | | | 7. Do you have any suggestions about my home that |
| likely paid a lot less then your neighbors in the area. So | | | | will make it sell faster? |
| lets say you purchased your home for $100,000 which | | | | 8. Do you promote my home online, real important the |
| 20 years ago would have been a higher end home. | | | | stats are 85% of all buyers are online looking for |
| Now we went through the years of tremendous | | | | homes! |
| appreciation and maybe you had the opportunity to sell | | | | 9. Do you have detailed report of the value of my |
| your home in 2005 for $750,000 but, you decided that | | | | home? |
| you would hold out for more. Then it hit; the devaluation | | | | 10. Do you negotiate your fee if my home does not sell |
| period that started in late 2006 and in some areas of | | | | for your suggested list price? |
| the country is still going on today. So now you are | | | | This is just the top ten things you should ask a Realtor |
| thinking you better sell before you lose any more | | | | when you are interviewing them for the job, and |
| money and not have any left to purchase a | | | | remember tell them you are interviewing them before |
| replacement home. | | | | they even come your home. At this point you have the |
| Determining today's value | | | | tools you need to get not only get a good agent to sell |
| You paid $100,000 for your home 20 years ago; now | | | | your home, you also have the home cost for repairs |
| take that 30k and calculate 4% per year compounded | | | | and you know about how much your home should sell |
| over 30 years this would be about what your home | | | | for today. Real important also think about financing |
| should be worth today. You have calculated the value | | | | options that you are willing to except from a buyer, do |
| you should be looking at a home worth around | | | | not limited the options, except almost everything that is |
| $220,000 in today's real numbers based on 4% | | | | available today. Your agent should have the |
| appreciation, or look at it this way 100% return on your | | | | knowledge of the different options, but what ever |
| home purchase. Remember forget about what you | | | | offers you want to entertain the buyer must have an |
| could have gotten back in the boom most if not all of | | | | approval in hand no exceptions. Do not except any |
| the value at that time was false or inflated. Now you | | | | offers where the buyer has a mortgage approval |
| have a value that you can realistically rely on receiving | | | | contingency it should only be contingent upon an |
| today if you sell! So now what do you do to replace | | | | appraisal, title, and a home inspection if you have not |
| your home. Well what are the choices and what is the | | | | offered the one that you had completed. One more |
| net that you will have to work with after all is said and | | | | thing always and I mean always offer a Home |
| done. | | | | Warranty from a good company on the home, piece |
| Time to Sell First you need to take a look at your | | | | of mind for a buyer is worth thousands to you. |
| home as if you were going to buy it today! Walk | | | | Now you have your price and you have determined |
| around your home inside and out as if you are seeing | | | | how much you will have in your pocket to purchase a |
| the home for the first time, one important thing take | | | | replacement home. You know what you need and |
| the emotions out of what you are looking at and think | | | | where you want to go. Now go out and look at |
| buyer not you. If you think you can't do this they get | | | | homes, do not put any offers on homes unless you |
| your friend or bring in a Real Estate agent and tell him | | | | have the money you need in hand. Now here is where |
| you want to hear the truth not just what they think you | | | | you can really make a great deal on a home, and |
| want to hear just to get the listing. Have them give you | | | | keep most of your money in your pocket. When you |
| a honest evaluation of the condition and make | | | | find that home that you want to purchase and you |
| suggestions that they think will improve your sell ability | | | | have determined the price that you are willing to pay |
| and appeal. Again take the emotions out of this it | | | | and your home is under agreement to close then |
| should not be taken personally this is a real business | | | | make your move to buy. Never get yourself caught in |
| decision. | | | | position that you have to sell your home just to get out |
| Now that you know what you someone else thinks | | | | because you have to settle on your new home, this is |
| about your home and what it may need to improve its | | | | to stressful and it gives you a bad position with buyers |
| market ability make a list with cost. Once you have the | | | | of your home. |
| list with the cost associated with the changes | | | | Here is where you get to keep most of the money |
| determine what you are willing to do and what you are | | | | you receive from the sale of your home. |
| not. Remember there are a lot of things you can do to | | | | In the past most people who were purchasing a new |
| your home that does not require a lot of capital to fix, | | | | home had basically two options they either paid cash |
| cosmetic surgery can go a long way. If you really | | | | for the home, or they put enough down and took out |
| want to go one step ahead of the rest of the homes | | | | another mortgage with payments and as a senior |
| on the market hire a reputable home inspector to | | | | neither of these options are viable for someone who is |
| come into your home and do a complete inspection. | | | | going or is in retirement. So what can you do! Think in |
| This is going to be done by the buyer so get a jump | | | | Reverse today seniors are the only ones that have a |
| on it and have it done first. This way you can | | | | third option that is really the only way to keep the |
| advertise the home as an inspected home or you will | | | | money in their pocket. The US Government has a |
| have a tool in your hand when it comes to negotiating | | | | program that will allow you to purchase a home and |
| the sale. Now with your repairs some will have to be | | | | never make another payment for the rest of your life |
| down if they are important functionally or cosmetically | | | | and keep a larger portion of the proceeds that you |
| to improve the value for sale. The important thing is | | | | receive from the sale of you home tax free. That's |
| realize what you are willing to spend and get these | | | | right the proceed or the appreciation of the value of |
| things done before you list your home. Also you want | | | | your home up to $500,000 for a couple is your to |
| to think what you are not going to do and remember if | | | | keep tax free. Now here is where you can really |
| they are big expensive items then determine if you are | | | | capitalize on your purchase and keep more of your |
| will to credit the buyer for these items. | | | | money for you're retirement! Think Reverse Mortgage |
| Now that you have gone through the list and | | | | purchase mortgage, you can use this program and |
| completed the items that you are willing to do and | | | | make your offer to purchase as an approved buyer |
| determined how much you have not done and if there | | | | ready to buy. Under this program you just have to |
| will be a cost associated with those items, now is the | | | | have a down payment on the average at age 62 of |
| time to list your home. If you have not yet found a | | | | around 40% of the purchase price or the appraised |
| Realtor or if you are going to try and sell it yourself, | | | | value which ever is less and finance the balance with |
| which is not really a good idea unless you are | | | | a Reverse Mortgage and never make a mortgage |
| experience and are ready to be a marketing person. | | | | payment for the rest of your life. The best part is you |
| So lets say you do not want to do it yourself and you | | | | get to keep the balance of your money that you |
| want to hire a professional. I use this word loosely I | | | | receive from the sale of your home tax free for your |
| mean professional! | | | | retirement. So when you decide to sell and buy a |
| Top Ten Questions to Ask | | | | replacement home think in Reverse of what you did |
| If you are going to use a Realtor then you need to | | | | when you purchase your home 20 year ago and go |
| hold interviews with several agents and brokers to | | | | and enjoy the rest of your life and truly make them |
| determine who can get the job done in today's | | | | the golden years. Oh one thing I forgot to mention this |
| markets. | | | | mortgage has not income, credit to qualify all you have |
| Here is list of things to ask! | | | | to have is the money for the down payment and be |
| 1. How many years have you been in the business? | | | | at least 62 years of age, how easy it that to buy your |
| 2. How many sales have you completed in the last | | | | new home. |
| year? | | | | |