10 Questions to Find Out if You're Qualified to Sell Your House

Most people think that being qualified is for home buyers and that it means being pre-approved for a mortgage. Being qualified is not just for buyers, sellers also need to be qualified!

Sure, anyone who owns a property can sell it (assuming there are
no legal restrictions) but owning a property does not make for a “qualified” seller. In real estate, the definition of qualified is “ready, willing, and able.” Buyers and sellers both need to be ready, willing, and able; that means financially, logistically and emotionally.
Here are some questions to answer to determine if you are qualified to sell:

1.   Do you have enough equity in your house to cover closing and moving costs or else have enough cash to bring to the closing table?

2.   Are you and everyone involved committed to selling? Do your spouse and/or children want to move? Do you have adult children who have their own ideas about the house and what you should be doing?

3.    Is your house ready to go on the market? Has it been de-cluttered with everything in working condition, fixed or replaced, fresh paint, refinished floors, lighting, landscaping, etc., with updates that will appeal to today’s buyers?

4.   If you plan to sell “as is” and are you willing to reflect that in your list price?

5.   Do you have a place to go when you sell?

6.    Do you have the money/financing to buy a new property before you close on your current home?

7.   If you need to sell before you can buy, is temporary housing a realistic option for you, your family, pets…until you can find the right home? Inventory is extremely low right now, it could take a while.

8.    Are you willing and able to make some compromises/trade-offs?

9.      Do you have a realistic understanding of the current market and will you listen to feedback? 

10.   Are you ready to detach yourself from the memories you made in the house?
Selling your home is a lot of work and can certainly be stressful. Making sure you are qualified/ready, willing and able will make the process easier and result in a better outcome for everyone involved!

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Marilyn Messenger is a licensed real estate broker, Certified Residential Specialist, Accredited Buyer Representative, and Certified Luxury Homes Marketing Specialist/Million Dollar Guild Member associated with Andrew Mitchell and Company, Concord. With 25+ years of experience in Concord, Sudbury, Wayland, Maynard, Stow and the towns west of Boston, Marilyn will make the selling and/or buying process efficient and cost effective for you. Visit http://www.MarilynMessenger.com for more.

Will the "Good Life" Be Ready When You Are?

The Life of Riley was a TV show from the 50’s starring William Bendix but the title’s origin came from an expression meaning that a person was living the “good life.” Most people envision themselves living the good life by retirement but don’t really have a plan to get there.

There’s a rough rule of thumb used to estimate how much net worth a person would need by the time they retire to generate a certain income. The target annual income is divided by a safe, conservative yield to determine the investable assets needed.

A person who wanted $100,000 annual income generated from a 5% investment would need investable assets of $2,000,000. If a person had $500,000 now, they would need to accumulate $1.5 million more by the time they retire. If it was estimated to be 15 years away, they would need to save about $100,000 a year, each year until retirement.
It is a sobering example that could be depressing without a plan. It might be easy to say, “I should have started sooner” which may be true but there is still hope.

Gradually, over the next several years, accumulate rental property and allow the tenant to retire the debt for you. The equity in each property will grow from the amortization of the loan each time a payment is made. It also grows as the property increases in value due to appreciation.

Single family homes as rentals offer the investor an opportunity to meet their retirement and financial goals for the following reasons:

• The ability to borrow large loan-to-value mortgages
• At fixed interest rates
• For long terms (easily up to 30 years)
• On appreciating assets
• With significant tax advantages
• And reasonable control not offered by alternative investments.

How's the Sudbury Real Estate Market?

As in most places, the number of homes sold and median and average sale prices for single family homes in Sudbury during the first quarter of 2011 were down from the same period in 2010. There were 18 single family homes sold between 1/1 and 3/31/2011 compared with 22 in 2010. The 2011 first quarter median price was $556,000 and the average was $584,889. During Q1 2010 the median price was $646,250 and the average $710,000.

While that may sound discouraging for sellers and give buyers the idea that they can take their time and then make low offers, March and April have been substantially more active and there are 26 single family homes with offers accepted and 17 with sales pending. Sellers who priced their properties to position themselves in the marketplace as "good deals" or as Jordan's Furniture calls it "under-pricing", are getting offers pretty quickly. Others who want to use the price to show that their house is "better" are staying on longer.

Current list prices for single family homes range from $174,000 to $2,795,000; the median price is $849,900; last year at this time it was $876,750. The average list price is $965,531 compared with $1,020,914. The average time on the market is 168 days, last year at this time it was 176 days.

After this past winter, it's no wonder that a lot of people are thinking about owning a condominium. There are currently 25 luxury townhouses for sale in Sudbury with prices ranging from $459,900 to $699,000. Recent activity shows there are 5 with accepted offers and 4 with sales pending. First quarter sales for townhouses in Sudbury up slightly from first quarter last year; median and average prices were also higher.

If you are thinking about renting a property in Sudbury, there are only 5 available. Rents in Sudbury range from $1400 per month for a 2 bedroom, 1 bath unit, to $7,000 per month for an 18 room luxury home. When adding up the cost of a first, last, and one month security deposit plus the rental agent's fee, buying may be a better option.

Interest rates are still the lowest in decades, so it's a great time for buyers and sellers to make a move. Visit http://www.marilynmessenger.com/  for the latest local market condition reports for Sudbury, Wayland, Weston, Maynard and Stow MA, complete MLS home search, news and information to help you plan your next move.