The Chicken and the Egg of Real Estate

Should I buy first, or sell first? I don’t know what to do. A commonly asked question without a correct answer. Many people find themselves in this classic real estate predicament most associated with “which came first, the chicken or the egg?” Unfortunately, there is no right answer that covers the board. Circumstances, finances, and many other variables play a role in determining which best case scenario is for you.

If you buy first, you may find yourself in the quandary of owning two homes, paying two mortgages, and having to pay all of the other expenses that come along with home ownership. With any luck, your current home will sell quickly, and the problem is then solved. However, there are no guarantees that accompany this scenario. If your house does not sell quickly, you may be forced to close on your new home, and then you have become the proud owner of 2 homes, that you cannot afford. If you sell first, a whole different realm of possibilities opens up. In this scenario, you sell quickly and luck into finding an ideal home, and closing on it in a reasonable fashion. Otherwise, you sell your home, and are stuck with having to put your belongings in storage, and find yourself shacking up with friends, or family. Either scenario presents its own risks and uncertainties. There are too many conditions involved in determining a correct answer for the “Do I buy first, or sell first” question.

Generally speaking, there is less pressure, and less risk, involved in selling your current home first. Put your house on the market, while at the same time, be out house hunting. As your house is showing, you can be compiling a list of potential contenders in a new home. And speaking in financial terms, the majority of home buyers need the equity, and profit, of their current home in order to purchase their new home. Many people need to sell their current home in order to qualify for a loan, leaving them with no choice, but to sell first. Not all people, especially in the eyes of the bank, are in a financial position to carry two mortgages.

While your current home is on the market, you can feel free to write a contingency offer on any home you find while house hunting. But, bear in mind that you will be paying a premium with a contingency offer. That is, if the seller even gives it any thought. Also, you may deem it necessary to take less for your current home in an effort to get it sold more quickly. So, be cautious. You can have comfort in knowing that you do have an opportunity to write a contract if the perfect house arises, but don’t lose sight of your current home’s value.

Or...do I buy first? With the economy still on the rebound, and interest rates still low, many people are entertaining the thought of running out and buying first. The market, like the economy, is also in recovery mode, meaning home prices are still somewhat lower than they traditionally would be. The housing market is moving very quickly because of this, and dictates that homebuyers are more focused on buying, than on selling. Motivated buyers are being recommended to obtain a mortgage commitment that is not contingent upon selling their current home, in order to dive into this fast-paced buyer’s market. Homebuyers are realizing that even in a strong market, the selling end of a transaction can drag on, potentially leaving them in the dust when it comes to landing a good deal on the purchase of a new home.

Either way, the choice of buying, or selling first, is 100% circumstantial, and financially dependent on each individual. Circumstances may have you in a position where you have to sell first in order to obtain the money to buy. Or, they may have you in a position where you have to buy because of a job relocation.

In today’s market, there are benefits and perks to each version. Buy first, and plunge into the hot buyer’s market. Or, sell first, and have the relief of knowing that you will not be trapped into the potential payment of two mortgages. For most people, the stress level is much lower when selling their current home first, and buying second. Nonetheless, it is a decision only you can make, given your current circumstances and financial position. There is no universal right answer to “Should I buy, or sell first?”

Click here to listen to Patty discuss the latest trends in Northern California Real Estate including the communities of Carmel, Carmel by the Sea, Carmel Valley, Marina, Monterey, Pacific Grove, Pebble Beach and Seaside

Photo courtesy of: http://www.flickr.com/photos/the-wanderers-eye/

Quick Tips for Bathroom Renovations

Home owners considering putting their house on the market often know they have work to do to maximize the value of the property. Renovations that include new flooring and appliances can go a long way, but usually need to be done by professionals, are expensive and time consuming. But, there are things you can do yourself. Today, let’s talk about making the most of your bathrooms.

The first step is to do a maximum cleaning job on the bathroom. It’s going to be easier to identify the biggest problem if everything is a spotlessly clean as possible. I’m talking about the old-fashioned, Momma’s watching you type of clean. Wash the sides of the cabinets and make sure that the area behind the toilet shines!

With that out of the way, what you see is the best of what you’ve got. Now you can start to prioritize ways to give the space a quick renovation.

Some things are almost mandatory if you’re looking ahead toward selling. The walls, for example, should be spotless and a simple, neutral light color, preferably white. Any other choice you make is a potential problem for possible buyers, who will be looking for things they’ll have to do after buying. Strip that wallpaper! Prime and paint. A fresh coat of paint is an amazing start on a great renovation. And it’s easy enough that just about anyone can do it themselves.

Got grout? You need to make sure it’s as white as possible. The Do-it-Yourself Life website has an excellent article on cleaning tile grout quickly and inexpensively. And don’t overlook the shower or tub.

Make sure your light fixtures are clean and the lights bright. Fixtures are easy to overlook when cleaning, but clean fixtures keep the look bright. Make sure the bulbs are fresh and match, and don’t even try to hide imperfections with dim light.

Add decorative touches, but keep them simple. Again, a buyer is going to do their own thing in the room, and it’s hard to imagine that when your own stuff is cluttering up the space. Make sure you coordinate colors, and avoid garish artwork.

At this point, you may want to replace a fixture or alter the flooring. But, you’ve already got a good start on improving your home and making some potential buyer a little more interested in your home.

Click here to listen to Patty discuss the latest trends in Northern California Real Estate including the communities of Carmel, Carmel by the Sea, Carmel Valley, Marina, Monterey, Pacific Grove, Pebble Beach and Seaside

Patty Ross
Your Carmel Real Estate Connection

Sotheby's International Realty
www.pattyrosscarmel.com
http://www.pattyrosscarmel.com/

Photo courtesy b4ssm4st3r/flickr.com

Prepare Your Home for Winter with These Fall Maintenance Tips

Prepare Your Home for Winter with These Fall Maintenance Tips

Fall is in the air and the weather is beginning to change. You will soon notice crisper days and cooler nights. With summer ending, it’s time to start preparing for winter. Just like you need to take your sweaters out of storage to be ready for cooler months ahead, you also need to get your home ready for the change in seasons.

There are a few things every homeowner should take care of in the fall to prepare for the upcoming cooler months. Use this checklist to help you plan your fall home maintenance, and your home will be ready for the winter months ahead.

Outside Your Home

•  Check your gutters and make sure they are still securely fastened. Clean out any debris that has accumulated so they can drain.
•   Visually inspect your roof, and fix any small issues like broken shingles or leaks before they become big problems.
•   Check the siding on your home, and caulk any visible cracks. This helps prevent further deterioration.
•  Clean your patio furniture and barbecue grill, and store them in your garage or a shed, so they won’t be damaged by cold and moisture.
• Seal your wood railings and deck, to protect them from the cold weather.
• Clean up leaves in the yard and trim trees and bushes away from the house, so they won’t damage siding.

Inside Your Home

•  Check the weather stripping around doors and windows and replace as necessary. By sealing these areas, you can save up to 20% on heating costs over the winter.
•  Replace the batteries in your smoke and carbon monoxide detectors. This should be done at least once a year to keep them functioning properly.
•  Have your heater inspected by a professional, before it turns cold.
•  If you have a wood burning stove, have the chimney cleaned and checked for damage.

Your home is your biggest investment, and you want to protect it. By taking care of these basic home maintenance tasks, you can make sure your home stays safe and comfortable throughout the winter.

Click here to listen to Patty discuss the latest trends in Northern California Real Estate including the communities of Carmel, Carmel by the Sea, Carmel Valley, Marina, Monterey, Pacific Grove, Pebble Beach and Seaside

 
Photo courtesy Julia Freeman-Woolpert, Stock.XCHNG