How to Create a Market Research Plan

A market research plan is something that any business owner or marketing executive needs to create to make their company succeed. Without a sound marketing plan for your company, you could be throwing money into the wind.

The following article will discuss the best way to create a sound, effective market research plan for your organization.

Step 1: Complete Comprehensive Competitor Analysis

The very first thing you’ll need to do is conduct a thorough analysis of your competitors. You can use this information to create a plan that will have an advantage over the competition.

Consider their advertising, promotions, and marketing strategies. Think about what you like most about their business practices. Then put those to paper and see how they align with your current model.

Step 2: Set Clear Goals for Your Research

As soon as you begin the market research process, you should establish clearly defined goals for what your organization wants to achieve. Think about who your targeted audience is and how you want to reach them.

Step 3: Identify Your Target Audience

You should already have a pretty good idea of your targeted audience at this stage of the research process. Now you’ll need to put it into words and express it as clearly as possible. You want to show how your services and products will meet their specific needs and wants to improve their lifestyles.

Step 4: Set Your Pricing Structure

Don’t make the mistake of underpricing your products to go cheap in the market. Meager prices will only attract low-end clientele in that industry. You may end up doing more damage than good when it comes to your business reputation and profitability later on down the line.

Step 5: Choose Your Marketing Channels

Now that you have a more thorough understanding of your target audience, it’s time to start considering which marketing channels will work best for you and your business. It’s up to you to determine which channels are the most efficient, effective, and economical.

Once you have all this information in hand, you’ll be able to begin the advertising campaign more quickly than before. You will also know exactly what types of advertisements your target audience is most likely to respond to!

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6 Companies Like Opendoor: Here Are Your Alternatives

Predictions for the 2023 real estate market indicate that experts believe the number of days a house sits on the market will likely increase throughout the year. What does this mean for those eager to sell their homes? Getting an instant cash offer might be the best route.

Are you thinking of selling your home quickly? Companies like Opendoor are great options for those who want a convenient, efficient way to list their homes without having to go through the hassle of staging and making repairs.

If you’re considering listing with Opendoor or similar online appraisal technology then this guide is for you! Here, we’ll explore six different alternative real estate websites that make buying and selling simple.

Whether you’re ready now to sell or just need information in case the time comes later on down the line, read on for everything you need to know about alternatives like Opendoor and companies similar to Opendoor.

What is Opendoor?

Opendoor is a company designed to simplify the process of buying and selling homes. Their goal is to make it easy for customers to buy or sell homes quickly and with minimal hassle.

As a real estate platform, they offer various home buying and selling services, from providing home valuations to helping customers find the best mortgage rate. They are similar to competitors in this sense but lack the resources that some others offer (including iBuyer.com).

However, it’s important to note that, in all fairness, Opendoor does respond quickly to home valuation requests. In most cases, you can expect to receive a cash offer as fast as 24 hours.

Also, if your home needs repairs, Opendoor subtracts them from your offer price before reaching an agreement. All these aspects make selling a house with Opendoor fast, convenient and efficient. With that in mind, there are some drawbacks to using this platform.

Disadvantages of using Opendoor

Buying or selling a home can be stressful, and for many people, the online real estate platform Opendoor can seem like a great solution. However, it is important to be aware of the potential drawbacks of using this service before making your decision.

Sales price

One of the major drawbacks of using Opendoor when selling a home is that prices can be discounted. Opendoor buys homes below the fair market value and then increases the home’s sale price when sold.

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This means that the sellers might not be getting the best deal. They may feel their home is worth more than what was offered, whereas potential buyers could find themselves paying an inflated price for a property.

Hefty fees

Likewise, many homeowners complain about the fees involved with using Opendoor. While standard real estate agents typically only charge a commission fee of 6%, with Opendoor, that percentage can be much higher at 5% to 14%.

What affects the total price you’ll pay with Opendoor? It all comes down to how long it will take to sell your home, the comparable homes in your area, and your home’s features.

Rushed sales process

When using Opendoor to sell your home, you should be aware of the possible financial losses that you could incur. Due to the speed of the sales process, they might not accurately determine your home’s market rate.

This means that even though Opendoor offers easy cash for a quick sale, it may be much lower than what you could have gotten through traditional routes. Furthermore, Opendoor offers can include significant deductions due to potential repair costs.

This is a benefit for some homeowners not interested in making those repairs themselves. If your goal is speed then this is a huge plus for you. However, their pricing deductions are often more than what you’d pay by handling the repairs yourself.

Real estate experience

All in all, those unfamiliar with the real estate experience should tread carefully. Real estate websites and users recommend this service only to those with considerable experience buying and selling homes.

This is because you need to understand the market, real estate trends, and a bit of jargon when working with Opendoor. You can get less than fair-market pricing if you don’t know what kinds of questions to ask during the valuation process with this platform.

Opendoor competitors & alternatives

Opendoor isn’t the only online appraisal technology in town when it comes to buying and selling houses with ease and convenience. You’ll find that companies like Opendoor also provide services to homeowners looking to sell quickly without using an agent, have a simpler closing process, and get an offer almost immediately. Here are a few of the top alternatives to Opendoor to consider as you navigate the process of buying or selling a home.

1. Offerpad

Like Opendoor, Offerpad makes it easy to sell your home without all the hassle of listing it through a realtor or spending money on repairs.

All you have to do is provide Offerpad with information about your home’s condition and structure and they’ll generate an offer price for you within a few days. In this sense, Offerpad can be slower than Opendoor and other competitors.

Offerpad uses data from local experts as well as a data-driven algorithm to determine how much they’re willing to pay for your home. Then you need to pick a closing date that works for you.

The commission? A bit lower than Opendoor at around 6% to 10%. While that’s similar to Opendoor, there are other drawbacks to consider. Namely, online reviews from other users note that lowball offers and the lack of an experienced agent to help guide you through the process as two major drawbacks of this platform.

2. Keller Offers

Keller Offers is an iBuyer Program that allows homeowners to have access to non-traditional methods of selling their homes. You can receive an estimated cost of your home’s sale price, making it easier for you to understand the value of your offer before you make a decision.

Likewise, you can participate in other programs that can help you increase the value of your home before you sell it. This makes it a great alternative to Opendoor and Offerpad. For example, if your home valuation is too low due to costly repairs or other issues, you can work with Keller Offers to improve your home’s value before you sell it.

How does the process work with Keller Offers? When working with Keller Offers you’re able to connect with a Certified Keller Williams agent who will walk you through your various selling options. Typically, this results in you receiving a great cash offer to buy your home. However, there are other options available.

For example, Keller Offers has a Ready to Sell program for homeowners interested in optimizing their home’s value before putting it on the market. Or, the Ready to Stay program is a great option for those interested in making improvements to their home via flexible financing options.

3. Express Offers

ExpressOffers provides a great service to help simplify the process of selling your home. By pairing you with a real estate agent, ExpressOffers removes the worry and hassle of the traditional home selling process: no more repairs, staging, showings, or lengthy negotiations with buyers.

How does it work? Instead of purchasing your home directly, ExpressOffers serves as a middleman who helps guide and support you throughout the process. You’ll only have to pay 3% in listing fees, and ExpressOffers is available to homeowners nationwide. So wherever you move, you should be able to take advantage of their services.

While this means that their fees are lower than Opendoor’s, it does mean that you might not be able to sell your home as quickly. It also means that there is slightly more work involved than a quick cash offer.

4. EasyKnock

This New York City-based company, founded in 2016, offers the first commercialized residential sale-leaseback program in the United States, which allows people to access the value of their homes without having to relocate.

EasyKnock’s Sell & Stay and ReLease programs are quite different from traditional reverse mortgages and home equity lines of credit. EasyKnock will purchase your property at its full appraised value and give you up to 75% cash at closing with a simple 2.99% processing fee. You can then receive the remaining amount once your house is fully sold.

Their processing fees depend on which program you choose:

• Sell & Stay and ReLease: 3.75% of the house’s purchase price
• MoveAbility: 3.49% to 3.99%

All in all, this is a different option than Opendoor and Keller Offers, for example, but an interesting one for those interested in a sale-leaseback program.

5. Flyhomes

Similar to Opendoor, Flyhomes provides a real estate service that allows home buyers to avoid the hassle of closing a sequential sale and purchase transaction. Their innovative approach offers an all-cash purchase on your new home upfront, followed by listing your old home for sale after you have moved.

Why do some homeowners use Flyhomes instead of Opendoor or another Opendoor alternative? Flyhomes ensures that when your original home is sold, you can buy back your new one seamlessly without needing a temporary move between homes.

The real estate platform also assists those seeking housing in competitive neighborhoods; their all-cash offers give even the smallest bidder an edge in these situations.

Unfortunately, however, Flyhomes is also only available in certain parts of the country. Currently, it’s only available in certain cities in Washington, California, Oregon, Massachusetts, Texas, and Colorado.

6. Homeward

Homeward provides its users with a streamlined and simplified experience when it comes to the traditionally difficult process of home ownership. Homeward assist both buyers and sellers, offering services such as:

• Listing properties
• Helping clients find the perfect home
• Negotiating deals between buyers and sellers

All in all, Homeward is a better option than Opendoor if you’re buying and selling at the same time. They allow you to buy before you sell. You can then bundle your service packages together to have them help you find a home before you have to move out of your current one.

Why is it important to analyze Opendoor alternatives?

Selling your home is a huge decision that must be thought through carefully. Trying to sell your home on your own, without the help of an expert, can be overwhelming and stressful. That’s why researching Opendoor alternatives is so important; you owe it to yourself to ensure you get the best deal possible when selling your home.

From iBuyers to traditional real estate agents, there are multiple options with different benefits that could save or make you a lot of money in the long run. Looking at alternatives before selling with Opendoor will ensure you’ve done all due diligence to sell your home at top dollar in the least amount of time.

Find the best company like Opendoor with iBuyer.com

If you’re looking for cash offers when selling your home, iBuyer.com has you covered. While several companies like Opendoor offer similar valuation tools and services, with iBuyer.com, you only need to provide some basic info about your home and get an estimate of its value.

You will receive a fast cash offer from us that best meets your needs. Using our expert home valuation tool and cash offer potential allows you to confidently and safely make the right decision to move forward with the sale of your home. It’s what makes us one of the best Opendoor alternatives. Ready to get started?

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9 Red Flags Your Neighborhood is Lowering Your Property Value

Loud neighbors, lawns that look like jungles, and colors that are torture to look at. These are massive red flags when you’re in search of a home. But when you already live in a place like this, these could be early warning signs that your property value might diminish.

Property value is influenced by a wide range of factors, and those factors can ruin even a nice neighborhood. Plenty of upscale locations have turned rundown in just the course of a few decades, thanks to reasons like this.

Can I sue my neighbor for lowering my property value? What lowers property value in the first place?

Let’s look at nine common red flags to be on the lookout for in this property value guide. Then we’ll discuss whether or not you can sue your neighbor for them.

1. Excessive Noise

Noisy neighbors love to give everyone in their immediate vicinity a headache. They play loud music at odd hours and have parties late into the night. Despite any HOA restrictions on noise past a certain hour, they continue to flaunt these requirements.

These neighbors can also come in the form of those who have no consideration in the early morning. They mow their lawn at 4 am or play music in the early hours.

Whatever the case, these neighbors are a nuisance to everyone else. Studies have shown that loud noise has a strong correlation with declining property values. All it takes is one careless neighbor to cause this effect on a single street.

2. Aggressive Pets

The stereotype that you’re in a bad neighborhood is a vicious pitbull held back by a chainlink fence. While this trope is common in movies, it’s a reality you have to consider. Territorial aggression is a part of a dog’s nature, meaning your neighbor’s dog will be a problem until they move out.

Aggressive dogs are a risk to neighbors of all ages. They pose a significant threat to young children and the elderly. But even a healthy young adult could suffer serious wounds from a dog attack.

Further, dogs contribute to the aforementioned noise problem when they bark, and thus reduce property values.

3. Neglected Lawns and Excessive Weeds

Perhaps the most obvious on this list are the lawns that haven’t gotten landscaped.

It doesn’t matter if it’s been weeks, months, or even years. These homes are more than an eyesore. They can harbor pests or much worse.

Neglected lawns tend to be a perennial problem. If your neighbor doesn’t keep up with lawn work now, it’s highly unlikely they will change.

4. Too Much Trash

Like with the weeds, an excessive amount of trash isn’t just a bad look for the neighborhood. Food waste can attract animals, which may stick around to feast on your lawn or trash. This can include nasties like rats, skunks, and even raccoons.

5. Violating HOA Regulations

HOA regulations are often the last line of defense against neglectful neighbors. Fines are often steep, and the HOA has a reputation for aggressively pursuing violators.

However, that becomes more difficult as more and more neighbors defy them. Your local HOA can become overextended trying to curtail some of these issues. Repeated offenses can lead to continued weakening of the HOA’s power in intervening.

6. Dilapidated Exterior

It doesn’t take much for a home to start to look like a haunted house. Peeling paint, missing roof shingles, and old rotting fences. The neighbor who doesn’t keep up with his lawn likely won’t care for his home’s exterior, either.

Poorly-maintained homes, like unruly lawns, are the first thing prospective buyers will see. Even if the home is a foreclosure, it’s a really bad look for your neighborhood.

7. Zoning Violations

Zoning laws are very strict about what is allowed, and what is not. Homeowners must review the law before making significant changes or decisions with their property. But that doesn’t stop homeowners from running secret AirBnBs or worse.

Violating these zoning laws can only hurt homeowners. As more of your neighbors overstep their bounds, they exacerbate this problem.

8. Too Much Partying

Partying needs to be excessive before it becomes a problem. Parties multiple times a month that go late into the evening or night aren’t just loud. They crowd the street with vehicles belonging to strangers and may bring undesirable folk into your neighborhood.

9. Financial Issues

Some neighbors may simply be unable to afford to live in your neighborhood. They may be unable to comply with some of the changes that the HOA requires. Or they may have poor home maintenance, old vehicles, and unsavory friends.

Home prices often act as a barrier. They keep a certain class of people in the neighborhood, which keeps its value high. But values begin to drop as soon as one too many neighbors start to live with lower standards.

How To Handle The Situation: Can I Sue My Neighbor for Lowering My Property Value?

Now that we’ve covered the nine most common issues, how do you deal with them? If a suit is the first thought on your mind, take a few steps back. It’s important to seek all available avenues before going with the nuclear option.

Remember, you’re invested in this neighborhood. One negative interaction with your neighbor can put a bad taste in both parties’ mouths. Put your best foot forward to ensure peaceful transactions from here on out.

Talk To Them

Diplomacy is always the best policy. There’s a good chance your neighbor has different expectations than you do. The solution may require a simple conversation to help them understand how their decisions affect everyone else.

Keep in mind that people cannot read your mind. You may be utterly infuriated by the actions of your neighbor. Meanwhile, they are completely unaware of how they’ve affected you in the first place.

Approach them in a respectful and tactful manner. Avoid an outburst or any condescending language. Human psychology being what it is, you’re unlikely to reach an agreement if you’re aggressive or accusatory.

Further, your actions now will determine where a court case is viable later. If you skip this step and head straight for lawsuit territory, the judge may note your failure to make amends. Plus, it doesn’t hurt to try.

Being the mature, responsible party wins you points for a potential case, too. A judge is likely to look unfavorably on a case where you proved to be the unreasonable party.

Offer Help

Consider the fact that the neighbor may be aware that some of their actions are detrimental to the community. However, they may have a lot on their plate, forcing them to neglect important homeowner duties.

They may be suffering from health issues, or have had a tragedy like water damage from a huge leak. As a result of this situation, they may not have the means, time, or energy to fix things.

Be a good neighbor and offer what help you can. Mowing their lawn or helping to repaint only costs you some of your time. In return, you improve your property value.

Discuss It With the HOA

If push comes to shove, you always have that one last option: the HOA. The HOA thrives with cases where two neighbors were unable to come to an agreement. They can put pressure on someone who told you to shove it when you pointed out their poor behavior.

The HOA has contractual and legal power, meaning they’ll use more than words to get things done. They can give an ultimatum in no uncertain terms to oblige your neighbor to make changes. They’ll follow up with it, meaning you no longer have to deal with that neighbor.

The HOA pursues permanent solutions. A homeowner who fails to keep up with their lawn needs checkups to make sure they fell in line. A visit from the HOA is never a fun one, and most homeowners will change their attitude after such an interaction.

Take it to the Authorities

If the above has failed, it’s time to take it up with the law. There are a handful of ways you can do this before filing suit:

• Contact state or local departments and file a report
• Build a physical barrier to isolate yourself in the event of land disputes or other nuisances
• Install a “No Trespassing” sign
• Make a court case under nuisance laws if the neighbor is unreasonable
• Have an agent build a case for why your property value has declined

Filing a lawsuit is possible, but you will need strong proof that your neighbor truly lowered your property value. You may need to hire a realtor or other professional to provide adequate proof that the value went down. This may be a laborious and protracted affair, so do try to try other measures before you resort to this.

Need To Sell Your House Fast? iBuyer Can Help

Can I sue my neighbor for lowering my property value? In most cases, this should only be your last resort option. Find diplomatic solutions if possible, but don’t be afraid to get the HOA or the law involved.

iBuyer is your go-to source for real estate and home valuation. We’ll help you sell your home as a result of an emergency, or if you just don’t want to deal with the stress. Use our free home value estimator and find out how much you can get in cash for your property today.

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Crawl Space Issues: How They Affect Home Value

You might not think about it much, but your crawl space does, indeed, exist. What’s more, it requires attention from time to time to ensure that it’s thriving.

See, a damaged crawl space can affect real estate value, thus costing you money when you try to sell your home. To what extent can a crawl space issue affect value?

This article has you covered! Not only are we going to discuss crawl space moisture issues but also crawl space repair and more. Without further ado, here’s your ultimate guide for crawl space issues.

What Is a Crawl Space?

Let’s start by answering the simple question: what is a crawl space? A crawl space is a small unfinished area within the confines of a house. It’s generally tight and cramped and often requires that you crawl through it to navigate it physically.

Crawl spaces provide a barrier between a home and the damp ground outside. They help keep the finished parts of a home dry, allowing air to circulate below the home undisturbedly. This air circulation allows for greater insulation and moisture reduction.

Crawl spaces are also beneficial in that they provide space for ductwork, plumbing, and electrical wiring. They enable service providers to easily access these entities, providing as much convenience as possible.

Not all homes have crawl spaces. Some have basements. And others are built on top of a concrete slab.

But if you do have a crawl space, you need to take measures to maintain it. If you don’t, a number of problems can crop up. We’ll get into these problems in more detail below.

How Crawl Space Issues Affect Your Home Value

Crawl space issues run the gamut from mold growth to pest infestations to uneven floors and more. As you might expect, all of these problems have the potential to affect a home’s value negatively.

What would you do if your prospective home had a pest infestation in its crawl space? In all likelihood, you would be looking for a price reduction.

If the floors were uneven, you would expect an even bigger reduction. That’s not a cheap problem to fix, after all.

The fact of the matter is that a damaged crawl space is a liability. No one is going to pay the optimal price for a liability. In other words, as the seller of your home, if you have a damaged crawl space, you will miss out on money.

This is why, prior to putting your home on the market, you need to strongly consider repairing the problems in your crawl space. Depending on what those problems are, you could be saving thousands and maybe even tens of thousands of dollars.

How to Fix Crawl Space Issues

Now, you’re probably wondering how to fix crawl space foundation issues. Of course, this depends on the specifics of the problem. So, to get you started, let’s review several common problems below.

1. Uneven Floors

One of the most troubling crawl space issues you can come across is the issue of uneven floors. This generally presents itself as a floor that dips and sags.

What causes it? Deteriorated floor joints and columns, not to mention standard crawl space settling. What causes this? Moisture!

So, if you want to prevent this problem from happening, you have to get rid of the moisture that makes its way into your crawl space. This can be done through crawl space encapsulation.

Crawl space encapsulation entails placing a waterproof barrier around the edges of the crawl space. It also includes sealing vents and insulating the walls of the crawl space.

Of course, you’ll also need to repair the deteriorated columns and floor joints. Until these are repaired or replaced, your floors will continue to sag, and likely worsen over time.

2. Water in the Crawl Space

Crawl space moisture issues are extremely common. After all, the crawl space is right next to the soil, which holds tremendous amounts of groundwater. Crawl space water issues are almost an inevitability.

The issue is that water can wreak absolute havoc on a crawl space and the house that surrounds it. Not only can it result in mold growth and musty smells but structural damage as well.

Therefore, you must do everything you can to keep your crawl space moisture-free. This starts with the encapsulation of your crawl space. It’s then supplemented with things like dehumidifier installation and sump pump installation.

3. Mold Issues

Simply put, crawl spaces are hotbeds for mold. Because they take on water on a regular basis, and because they’re dark, they’re practically the perfect place for mold to thrive. Therefore, it’s almost certain that, at some point, you’re going to have mold growth in your crawl space.

Now, you might be thinking: so what? You can’t see it, so what difference does it make? But mold can have a number of negative effects outside of an unpleasant aesthetic.

For one, mold smells bad. Rest assured, that smell will make its way into your home.

For two, mold can cause crawl space health issues. Therefore, if it’s present in your crawl space, you could find yourself prone to fits of sneezing, coughing, sore throat, and more.

This is why we strongly advise removing mold from your crawl space. Even more, we recommend encapsulating your crawl space to prevent further mold growth in the future.

4. Rotten Smell

Does your home carry a rotten and musty odor? This is often referred to as the “old house smell”. Where does it come from? In most cases, the crawl space.

As was noted above, as a crawl space is exposed to more and more moisture, it attracts mold. The more this mold accumulates, the stronger and smellier the odor it releases.

As you might expect, the smell produced in the crawl space tends to waft up into the home’s first floor. So, if there’s mold in the crawl space, the home itself is going to smell old and musty.

The fix? First of all, you need to get rid of the mold. Then, you need to take measures to waterproof your crawlspace. This includes sealing vents, applying a vapor barrier, adding a sump pump, installing a dehumidifier, and more.

5. Pest Infestation

Crawl spaces are particularly prone to pest infestations. This stands to reason, as they’re cold, wet, and uninhabited places where insects can find refuge and feel comfortable.

But insects, unfortunately, can cause several problems after they’ve worked their way into a crawl space. Some of these insects will gnaw at the wooden support beams within your crawl space, causing structural damage and resulting in sagging floors. Other insects will spread disease, making your home a potentially dangerous place.

Therefore, they need to be done away with. First, call up a pest control company. Once they’ve eradicated the insects in your crawl space, consider encapsulating your crawl space.

Encapsulating your crawl space will make it much more difficult for insects to work their way into it. Plus, it will be less attractive to insects, so they’ll be less likely to go there anyway.

6. Cold Floors

Another problem that a crawl space can cause is the problem of cold floors. When a crawl space isn’t properly insulated, the air within it can travel upward. During the cold months of the year, this, of course, makes the floor cold.

The solution? Insulation! Make sure that your crawl space is adequately insulated and you’ll never have to worry about this problem ever again.

7. High Energy Bills

The last problem we’re going to discuss is the problem of high energy bills. Why might a crawl space cause energy bills to skyrocket? It all comes down to a lack of insulation.

As noted, the air in the crawl space will rise into the home above. Therefore, if you’re trying to, for example, heat your home to counteract cold outside, a non-insulated crawl space will negate some of your efforts.

To make up for this, your heating system will work even harder. This, of course, will result in greater energy usage and, therefore, higher energy bills.

The remedy is simple: insulate your crawl space.

Sell Your Home Today

As you can see, crawl space issues can have quite a negative effect on a home’s overall value. Therefore, before you put your house up for sale, you’re strongly advised to repair your crawl space.

Looking to sell your home today? iBuyer.com has you covered. Get started by requesting a home valuation!

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How Much Does a Home Appraisal Cost?

After climbing steeply for the last couple of years, the median sales price for houses in the US is finally leveling off. At the end of the third quarter of 2022, the median cost had reached $454,900. With house prices constantly fluctuating, you need a seasoned professional to help you gauge the value of your home.

Whether you’re applying for a mortgage, refinancing, or selling your home, you need a home appraisal. But that throws up more questions, including what is a home appraisal and how much does a home appraisal cost?

We’ve created a home appraisal cost guide to help you understand every part of this process. We’ll look at the home appraisal cost and what you can do to keep the cost of a home appraisal down.

How Does a Home Appraisal Work?

You may be wondering, How much do appraisals cost for homes? But before tackling that question, we need to understand how they work.

Home appraisals can only be conducted by state-licensed and certified professionals. Home appraisers are independent – they do not work for the lender.

They assess the value of your home by comparing it to other homes sold in the same area. They take into account factors like:

• Square footage
• Condition of the home
• Style of the house
• Age of the house
• Building materials used in construction

They will inspect your property inside and out, looking for features and faults that could affect its value. Next, they’ll research records about the property and what’s happening in terms of development in the local area. Finally, they’ll produce a report that includes their valuation and reasons for arriving at that figure.

What the Home Appraisal Includes

It’s important to remember that the appraisal does not just look at the value of the home. It also takes into account the land value and other permanent structures on the land.

Appraisers are impartial and experienced, and they can look beyond minor flaws. If the house is a little untidy and the lawn needs a trim, don’t worry. Minor factors like these will not affect the outcome of the appraisal.

There are some factors the appraiser will look at that you can do nothing about. This includes:

• Local amenities – shopping facilities and schools
• Access to transportation
• Road connections
• Vacant or condemned lots in the area

Why Do You Need a Home Appraisal?

A home appraisal is normally part of the lending process. For example, if you are buying a home with a mortgage, you will need a home appraisal. This is how the bank protects itself and assesses the level of risk involved with lending you the money you need.

You may also need a home appraisal if you want to refinance your current home. You may want to borrow more money for home improvements or other reasons. The mortgage lender will usually make a home appraisal a condition of the loan.

Important for Sellers, Too

Although buyers need home appraisals, they are of interest to sellers, too. If your home is in poor condition, the appraisal may be low. A low valuation may lead to the buyer being unable to borrow enough money to pay the price you have agreed on.

The buyer may come back to you and try to negotiate a lower price for the property. If you’re selling a home, you should never consider a deal to be set in stone until the buyer receives a favorable appraisal report. It can take time for the appraisal to be completed, which can be problematic if you want to sell quickly.

Not Just for Mortgages

If you’re buying a home for cash, you’re under no obligation to get a home appraisal. However, it may still be a wise move so that you do not pay too much for the property.

How Much Does a Home Appraisal Cost?

On average, the home appraisal cost for a single-family home is $300 to $500. However, costs vary from state to state and can depend on other factors, as discussed below.

While costs vary, appraisers may only charge customary and reasonable service fees. After the appraisal, you will receive a valuation and a report detailing how they arrived at the valuation.

Who Pays for the Home Appraisal?

Normally, the borrower pays the home appraisal cost. This could be the buyer or the homeowner if they are refinancing.

It’s a significant amount and crucial to obtaining the financing needed to complete the purchase. It’s a cost that the buyer must pay out of pocket, whether the deal completes or not.

Home appraisers may work for a flat fee or may be paid by the hour. But if an appraiser asks for a percentage of the home’s final value as payment, that’s a red flag. If an appraiser wants to work on that basis, find another one.

What Factors Influence the Home Appraisal Cost?

To answer, How much does it cost for a home appraisal? We need to bear in mind that there are several factors involved. Unfortunately, some of these are beyond your control. But there are some things you can do to keep the cost down.

Size of the Home

It makes sense that the bigger your home, the higher the cost of the appraisal of the house! The evaluator has more acreage to cover to assess the entire house accurately. This will take them longer, and consequently, they may charge more for it.

Condition of the Home

Poorly maintained homes throw up lots of red flags that make appraisers antsy. This may drive up the cost of your home appraisal, as they need to research the property’s condition.

On the other hand, well-maintained homes are easier to appraise. There are more locally available comparables, and the appraiser can have more confidence in their valuation.

Bear in mind that home appraisers will look at:

• Health and safety issues
• Structural integrity of the building
• Visible flaws

If they have concerns, an appraiser can request additional inspections. For example, they may notice a problem with the roof. The appraiser could refuse to complete their report until they have received a copy of the roof inspection report.

The takeaway? For an easier and less expensive appraisal, keep your home in tip-top condition.

Location of the Home

If you live in a big city or an affluent part of the country, the answer to how much home appraisals cost may be higher than elsewhere. Also, if you need a home appraisal for a property way out in the boonies, you should expect the cost of the home appraisal to be higher.

These appraisals cost more because:

• The appraiser has to travel further to view the property
• The appraisal will take more time to conduct
• There are fewer comparable properties, meaning more research for the appraiser

You can’t pick up your home and move it closer to an urban area! This is one that homeowners have to take on the chin.

Type of Mortgages

Some types of mortgages require special appraisals. This includes government-backed mortgages. The property must meet certain structural and safety requirements to gain approval for FHA loans.

There are also special requirements for VA Home Loans that are guaranteed by the U.S. Department of Veterans Affairs. These loans limit the fees that appraisers can charge for their services.

How Is a Home Appraisal Different from a Home Inspection?

It’s easy to confuse the terms home appraisal and home inspection. Both are very important when buying a house, but they’re very different things.

The purpose of a home appraisal is to ascertain the value of your home. As this home appraisal guide has shown, it is obligatory, and several factors influence the final valuation. But it is not the role of the home appraiser to inspect the home.

A home inspection is not mandatory but is always recommended when buying a home. It tells the buyer about the condition of the home. It looks at:

• Interior
• Exterior
• Structure, including the foundation
• Roof
• HVAC system
• Plumbing
• Electricals

You will receive a detailed report, which may include recommendations for work that needs to be completed urgently. Buyers may use the home inspection to negotiate the price down.

Sell Your House Without the Hassle

The process of getting a home appraisal can be time-consuming and expensive. Plus, the home appraisal cost is not cheap and can rise depending on the home and its location. What if there were a simpler way?

If you’re looking to sell your home without the complication of a home appraisal, talk to iBuyer.com. We connect you with trusted buyers who are looking to buy homes as-is. No appraisals, no renovations, no hassle.

Submit your home address for a free valuation and connect with motivated buyers today!

Wondering what your home’s worth in the current market?
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How Much Will An Investor Pay For My House?

Did you know that renters account for around 36% of all households in the United States?

The rental market has been booming worldwide, highlighting the benefits of owning property as an investment. While owning a home has pros and cons, real estate investors are willing to pay above market value to increase their portfolios.

This is why it’s important to ask yourself, how much will an investor pay for my house?

Here’s everything you need to know about selling your house to an investor.

What Is a Real Estate Investor?

A real estate investor is an individual or company dedicated to buying, selling, or holding property. Real estate investors come in various forms but ultimately deal directly in the property market. The most popular kind of real estate investors is property companies that hold rental property that they lease out.

This kind of business invests in real estate for the sole purpose of generating income from the property that it holds. However, there are other property investors, such as those who buy homes to flip them for a profit. These real estate investors buy an undervalued home, upgrade it, and sell it for an instant profit.

Real estate 101 outlines the benefit of investing and holding property over the long term. This is because real estate tends to increase in value with inflation, making it a great way to preserve your entire portfolio. Even if your home does not skyrocket, it’s a valuable asset to diversify your portfolio.

This is why most financial institutions, hedge funds, and investment companies hold some property within their portfolios. Besides the benefits of diversification, property is generally quite a safe investment. In this way, investing in property can help lower the overall risk profile of their portfolio.

Why Their Cash Offers Can Be Low

Real estate investors tend to make slightly lower offers than a property’s market value. This is because they are investors at the end of the day and want to profit from every property. However, these offers can differ depending on what kind of investor they are.

Property investors that want to rent out the property for income will use the potential rental income to help value the property. However, house flippers may look at how much they can eventually sell the home for to see if it’s worth buying it. In this way, it’s important to understand who you’re selling to before finalizing the deal.

Even if you’re not selling to a real estate investor, all-cash offers tend to be slightly lower than homes purchased with a mortgage. This is because there’s less admin to go through to finalize the sale of the property. When you buy a home with a mortgage, there are tons of fees that the bank requests just to set everything up.

Banks and mortgage companies often require an appraisal before finalizing your mortgage, with the costs being added to your mortgage. This ends up making the entire home more expensive.

This is why sellers prefer cash offers when selling their homes. Most cash offers don’t go through real estate agents, making it even better for the seller. This is because you don’t have to give a percentage of your selling price to a real estate agent.

While you may think this is just 2% to 3% of your home’s value, this can be thousands of dollars. However, cash offers cut through all that, saving you money and simultaneously speeding up the entire process.

How Different Investors Price Homes

As mentioned above, different kinds of real estate investors value property differently. This is because they use property in different ways to generate income for their business. Here’s a quick look at how different property investors value property.

Flippers

House flippers are real estate investors that buy property for the sole purpose of selling it for a profit. These real estate investors tend to invest some capital in the property to help unlock more value. This helps increase the selling price of the house later on.

When valuing property, house flippers tend to use the 70% rule. This rule states that the flipper will not buy the home for more than 70% of its future market value after deducting renovation costs. In simple terms, if the flipper thinks that after investing $50,000 into the property, they can sell it for $250,000, they won’t buy it for more than $140,000.

Rental Property

Real estate investors buying property to rent it out tend to value it differently. This is because they compare the investment to the money they could have left in a savings account. In this way, they evaluate the rental market to see how much money they could generate from the property before making an offer.

Once they know how much they can make from renting the property, they work backward to see its worth. Since the average savings account gives you around 2% in interest every year, they use the rental income as 2% and work back to figure out what 100% is.

For example, if the property generated $24,000 a year in rent, the property would be worth roughly $1.2 million.

iBuyers

iBuyers rely on the latest market data to get accurate valuations for your property. This process considers tons of information, including comparable sales in the area. This way, you can rest assured that you’re getting the best possible deal every time.

While iBuyer.com does link you to property investors, it helps you by valuing your property for you. This means that investors won’t get to rip you off by offering you pennies on the dollar for your home. By working with iBuyer, you can sell your home to a trustworthy investor knowing you’re getting a great deal.

Pros of Selling to an Investors

Selling your home to investors comes with a ton of benefits. These benefits range from saving time to making your life easier when planning your move. Here’s a quick look at why you should consider selling your home to a trustworthy investor.

1. Sell Your Home As-Is

Investors don’t need you to repair or furnish before selling your home. This is because most investors have money to make the space their own after buying it. This way, you can sell your home as-is without worrying about leaving money on the table.

2. Investors Pay In Cash

Real estate investors tend to offer cash when buying a home. This can help save time during the closing process, making your life easier in the process.

3. Quick Closing

As mentioned above, cash offers close a lot quicker than finance sales. Since this is not the first property they may buy, investors tend to have the lawyers and paperwork ready. This means you don’t have to spend money on lawyers but it also speeds up the entire closing process.

Cons of Selling to an Investor

While there are benefits to selling to an investor, there are a few cons to consider as well. Here’s a quick look at the most notable cons of selling to an investor.

1. Foreign Investors Take Longer to Close

Investors close on a property in record time. However, this is not the case for investors out of the country. Since there are laws and regulations around foreign property investment, foreign investors take a bit more time to close a deal.

2. Slightly Lower Offers

Investors want to make a profit on every sale that they close. This means that they tend to make offers slightly below your home’s market value. While you will lose some value this way, you benefit from selling your home in a fraction of the time.

What About Foreclosures and Liens?

While you may think that investors won’t want to touch foreclosed homes, the truth is that investors love them. This is because foreclosed homes can often offer the best deals on the market. Since banks and financial institutions aren’t exactly looking to make a profit on the home, you can end up buying a property at a massive discount.

Many agree that investing in foreclosed homes is the best way to start a real estate portfolio. This is because you have the ability to unlock tons of value without having to spend as much money to get started. In this way, foreclosed homes are some of the best properties for investors to look out for.

Are There Closing Costs Associated with Investors?

Closing costs are the costs of buying a property that goes above the price of the property itself. In most cases, these costs can range from a few thousand dollars in Indiana to around $30,000 in the District of Columbia. While most of these costs are taxes and legal bills, the truth is that selling to an investor can add some commission fees to the mix.

This is true if you use a platform to find an investor, as the platform takes an added fee. However, this is worth every penny as the platform allows you to sell your home in a fraction of the time that it would have taken you on the open market.

However, there is the possibility to ask the investor to cover some of the closing costs. This is a great way to increase the price of your property to sweeten the deal for yourself.

If you hire a real estate agent to sell my home, there are fees to consider as well. This is why you should take some time to evaluate the various options before you make a final decision.

Find an Investor to Buy My House

As you can see, selling your home to an investor has many benefits. Besides closing the sale incredibly quickly, you can also save on fees with an all-cash offer. However, how do you find a trustworthy investor to sell your home to?

All-cash offers are great but often too good to be true. This is why it’s important to find a trustworthy buyer to sell your home to. While the open market can give you access to thousands of potential buyers, a few platforms can help you find the perfect buyer for your home.

Platforms like iBuyer.com come with valuable tools to help you determine your home’s value. The information you give them about your home can help them find the perfect investor for your home. This speeds up the entire process, allowing you to sell your home in a fraction of the time it would have taken on the general market.

However, the most beneficial part is that iBuyer.com verifies the investors on the platform. This way, you can rest assured that you are connected to qualified, trustworthy buyers to sell your home to.

Selling Your House with iBuyer.com

If you’ve ever asked yourself, how much will an investor pay for my house? The truth is that the property market is incredibly complicated and considers a ton of factors. The most important factor is the property’s market value derived from comparable sales.

While you can pay for a professional appraiser to come and take a closer look at every last detail of your home, this can take an incredibly long time. This is why it’s so beneficial to use platforms like iBuyer.com to help you find trustworthy investors in no time.

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9 Signs You’re Ready to Sell Your Home

Did you know there were 6.48 million existing home sales in the U.S. in 2020 compared to 5.34 million the year before?

The percentage of people who stay in one home for their entire lives is relatively small since most people move a bunch of times.

But how do you know when you’re ready to sell your home and move elsewhere?

Keep reading to learn bout nine signs you’re ready to sell your home. You’ll need to focus on getting ready to sell your home when the time comes.

1. You’re Financially Stable

When the signs in the real estate market suggest that it’s a seller’s market, you should weigh whether or not the time has come to sell. But before preparing to sell, ensure you’re financially stable.

Do you have loads of consumer debt you need to tackle before doing anything else? If you have credit card debt, consumer debt, car loan debt, or any other debt with a high-interest rate, slay that debt first.

Also, remember that there are costs associated with home selling. The last thing you’ll want is to be unprepared for these expenses.

Closing costs are typically in the range of 1% and 3%. These include:

• Closing fees
• Lawyer fees
• Transfer taxes
• Property taxes
• Recording fees

Another thing to remember is the need to check your credit score. The better it is, the better the interest rate on your mortgage will be.

Before pulling the trigger, ensure you can afford a good downpayment and set up an emergency fund so you don’t become house poor. Being unable to handle your affairs will bring more stress into your life than necessary.

2. You Have Equity in Your Home

You also need to consider how much equity you have in your home before deciding if you will sell it.

According to one source, the average amount of equity people in the U.S. have in their homes is $185,000. Remember that the more equity you have in your home, the more money you’ll have to table a reasonable down payment.

If you find that the amount of equity you have in your home is less than what you still owe on your home, now’s not the time to put your home up for sale.

One option is to contact a reputable realtor to ask for a market analysis. You’ll get an accurate valuation of your residence. It makes more sense to sell from a position of strength than from a position of weakness.

If you find the equity you have in your home exceeds how much you still owe on the mortgage, you’ll next want to consider your budget for a new home. You’ll then want to determine if you own enough equity to move forward.

3. It’s a Seller’s Market

If you want to sell your home, the best time is when the proverbial pendulum swings in favor of sellers over buyers.

Are homes put up for sale in your neighborhood selling like hotcakes? In a seller’s market, homes are often purchased within a few days of going up for sale. It’s a great time to list your home if you’re interested in relocating.

When there’s a seller’s market, you’ll want to look at things like which homes in your area have sold, how much the homes have sold for, the rate at which homes are sold, if the homes are selling for or above asking prices, and more.

You can research to find out about the state of the real estate market in your area. Another option is to get an expert’s assessment of the market and what your home might net you if sold.

You must gather as much data as you can before selling your residence. That’ll help you decide if the time is right to move forward or if market dynamics suggest another time that might be in your best interests.

4. You Don’t Have to Pay a Lot of Capital Gains Tax

Yet another reason to consider selling your home and planning a move is if you don’t have to pay a lot of capital gains tax.

First things first: the capital gains exclusion amount is set at so high a level that most homeowners won’t ever reach, let alone exceed, the maximum.

However, let’s say you and your spouse have lived in your home long enough to accumulate half a million dollars in capital gains. It’s a good idea to consider selling your residence before more property-value appreciation occurs.

Selling before getting to the maximum exclusion will better allow you to generate wealth over time.

If you have any questions about capital gains tax and how to use it to your advantage, you can speak with your accountant or a real estate agent.

5. You’re Prepared for the Tasks That Come With Home Selling

Are you up to the challenge when it comes to selling your home? Here are some things you can do ahead of selling your house:

• Declutter your home
• Hire a handy-person to make quick fixes that can make your home more appealing
• Consider painting your home since a few coats of fresh paint can do wonders
• Increase curb appeal by cutting your grass, trimming the branches, and doing other things to beautify the exterior of your home
• Hire a professional photographer to take high-quality images that will appeal to people looking to buy homes

While selling a home is hard work, you can make things easier on yourself if you get the right help. That’s where iBuyer.com comes into the picture.

You can get instant cash offers on your home from top iBuyers. When you work with us, you’ll get the following:

1. You get an accurate estimate
2. You get a quick cash offer
3. You get to decide if and when you sell your home

If you’d like to sell your home fast and hassle-free, iBuyer offers a simple process to sell your home as is for cash. It’s the perfect way to sell a house fast — without having to pay a realtor a sizeable chunk of the sale price.

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6. You Need to Downsize

What should you do if you outgrew your home? One option is to relocate. Perhaps your children have all grown up and left the family home, or maybe you’re facing the prospect of a divorce and need to divvy up assets.

If you find that the time has come to downsize and get a home that’s more suitable for where you are in life, it might be time to pull the trigger. Looking into how to sell a home and get a more appropriate one makes sense.

Downsizing is also a good option if you’re struggling with a larger residence’s expenses. Selling it and getting something smaller and less expensive might make things much more affordable.

Take some time to explore new opportunities for a more affordable home elsewhere. Getting a cash offer with no conditions for your home will make it easier to get a new home.

You won’t have to wait for the buyer to come through since a cash buyer will typically have the financial wherewithal to pay right away without a mortgage. A cash offer means the transaction can close relatively fast.

7. You Need to Upgrade

While downsizing is one good reason to sell your home, so is upgrading. Maybe you currently live in a starter home. You might have bought it because of the lower price, even if it lacked the sort of space you wanted.

If you have a lot of equity in your current home and want to upgrade, it may be the right time to sell and buy a more suitable home. That’s especially the case if you’re starting a family and need more space.

Another reason you might want to upgrade is if you don’t like the direction your neighborhood is headed. You might want to explore buying your dream home someplace else rather than pursue a home renovation project where you are.

You might also find that moving to a new home will be cheaper than staying put and remodeling your current home. So, you’ll want to weigh upgrading your present home or upgrading by buying a new home instead.

There are times when the only way to upgrade is to move. Do you want to start a home office but don’t have space where you are? Do you want a pool on your property but lack the space right now? It might be time to relocate.

8. You’re Not Emotionally Attached to Your Home Anymore

Some people become emotionally attached to their homes. Maybe it’s because it’s their first-ever home. It might also be the place where they started their families.

So, they get attached to the memories they’ve had with loved ones over holidays, birthdays, and more.

Another reason people might become emotionally attached to their homes is if they experienced any landmark events in their lives while living there. It might be difficult to put such a home up for sale.

If you have precious memories in the family home, it might be hard to leave a place where you saw your kids grow up. Emotional attachment can be a hard thing to set aside.

But if you see your home as an investment, and aren’t emotionally attached to it, consider selling to monetize your investment.

Take the emotion out of the equation since it’s better to make selling decisions free from feeling so that you make the right choices.

9. You Have to Sell Fast

What should you do if you need to sell your home in a hurry? There are various scenarios that might call for packing up, selling your home, and moving quickly.

Whether you are relocating for a new job, are separating from a spouse, are dealing with a family emergency, or for some other reason, you might find yourself having to sell your home fast.

In such instances, you’ll want to get as much as possible. If you need to relocate sooner rather than later, a cash deal is in your best interests. When someone pays in cash, they don’t have to go through a bank for financing.

So, you won’t have to wait around and hope the buyer gets their ducks in a row. You’ll be back to square one if a buyer fails to secure a mortgage or is unable to meet other conditions necessary for a sale.

A cash offer means you won’t have to play the waiting game or worry needlessly about whether or not the deal will proceed to completion.

It also means you can sell your home as is, so you won’t need to spend a lot of money fixing up odds and ends before selling.

Are You Ready to Sell Your Home?

As you can see, there are many reasons why you should put your residence up for sale. But when you’re ready to sell your home, you also need to know what options you have to make the most money with the least hassle.

That’s where iBuyer.com comes in handy. If you’re ready to sell your home, you’ll want to consider the iBuyer advantage. You can sell your home as is for cash.

There are iBuyers across the U.S. waiting to make a fast cash offer for your home as is. You won’t have to find a real estate agent.

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Appraisal Value vs Market Value: What’s the Difference?

Did you know that you’re required by law to have your home appraised if you want to accept an all-cash offer over $400,000?

This is because an appraisal is a trustworthy, regulated process that helps you determine the fair value of your property. People often grow attached to their home and think it’s worth a lot more than it is. This is why independent evaluations are beneficial before listing your home on the market.

However, the appraised value vs market value debate offers two distinct options for you to get an accurate valuation of your home. This is because these two approaches are slightly different and can end up giving you two different prices.

Interested in learning about the appraisal vs. market value of a home? You’re in the right place. Here’s everything you need to know.

What Is Appraised Value?

In simple terms, an appraisal is a professional opinion of your home’s value. This opinion does give your home a price but results from an unbiased inspection of your entire property. This inspection differs from a traditional home inspection as it also considers external factors that could contribute to the value of your home.

While this process does consider external factors, it does stick to the facts. This means that the basic features of your home play a big role in determining its value. For example, a home with more bathrooms and bedrooms will have a material advantage over a home with less square footage.

Appraisals are formal processes and are conducted by industry professionals. This process is based on strict regulations, allowing financial institutions to trust the final report. This is incredibly important in the financial industry as the appraisal is often used as proof that the home is worth the amount of money you want to borrow against it.

This report proves that if you fail to pay back the loan, the bank can sell the home and recoup the borrowed money. While an appraisal is typically done before a mortgage is secured, it’s not required if the homes are sold in an all-cash purchase or if you’re refinancing with USDA, VA, or FHA loans.

Factors That Influence an Appraisal

The appraisal process is regulated to help gives institutions an accurate opinion of the property value. As mentioned above, the internal features of the home are important, but there are a few external factors to take into consideration as well. Here’s a quick look at the factors influencing a final appraisal.

1. Location

The location of your home plays a massive role in how much its worth. This is the obvious place to start and is generally based on the demand for property in that area. For example, a home in New York City will be more expensive than a home in the middle of the country as there are more people and demand for housing in the city.

2. Square Footage

The basic information about your home is considered during an appraisal. This includes the square footage of your home but also how that square footage is used. In simple terms, the number of bedrooms and bathrooms are listed along with other rooms that you may have.

3. Home Age, Renovations, and Improvements

While your home isn’t inspected for defects, the home’s general state is considered. This includes basic information such as when the home was built and renovated and any notable improvements you may have made. This helps give an accurate view of the quality of the home itself.

What Is Market Value?

The current property market determines the market value of your home at that time. This means that the market value is what a potential buyer is willing to pay for your home. While this can end up being more than the appraised value, it can also be lower.

Just like an appraisal, the market value of your home does consider a few factors. However, the biggest influence is the general property market. This is because the final market value takes the appraisal and comparable sales into consideration.

However, just because the appraisal says that the home is worth $1 million does not force anyone to buy it at that price. If the only offer on that home is $800,000 and it eventually gets sold at that price, the home’s market value ends up being $800,000. If there’s an identical home next door on the market, they would use that $800,000 sale to derive their market value.

Factors That Influence the Market Value

As mentioned above, the market value of a property considers the appraisal along with comparable sales. However, there are a few other factors that go into determining the market value of a home. Here’s a quick look at these factors.

1. Comparable Sales

The most influential factor for the market value of a home is comparable sales. This means that the final sales price of other homes in the area can indicate how much your home is worth. This is a helpful metric as it indicates how much potential buyers are willing to pay for a home that looks like yours.

2. Neighborhood and the Local Market

As with the appraisal, the location of the property is considered. However, the local property market is also a factor, as the market value of a property can be an incredibly volatile price. All it takes is one home selling under market value to drop the value of everyone’s property.

3. Home Size

The home size is taken into account, but not in the same way as an appraisal. This is because the size and features of your home are used to help find comparable sales in the area. In this way, the major influential factor remains comparable sales.

Difference Between Market Value and Appraised Value of a Home

As you can see, the main difference between the market value and the appraised value of a home is the fact that the appraisal is determined by an industry professional. In contrast to this, the market value of a home can shift overnight dependent on comparable sales in the area. In a nutshell, the appraisal is calculated by a professional while the buyers in that market determine the market value.

Which Is More Important?

If you plan to put your home on the market, you will want to get the most accurate valuation of your property. While you may think that this means hiring a professional to appraise your home, the truth is that the market value is often the more accurate figure. This is because the entire property market is influenced heavily by comparable sales.

Both valuations have their pros and cons. While the market value of a property can have massive upside potential, the appraisal is a more strict, factual way of determining your home’s value. This is why banks and financial institutions prefer it.

However, the market value of your home is the better option for those who want to sell their homes fast. This is because you won’t have to wait for a professional to come and make a report for you before listing your home on the market. In addition to this, the market value is often more accurate for buyers, allowing you to sell your home a lot faster.

What To Do If These Values Are Different

As you can see, both of these methods share a ton of influences. Both methods include factors such as the neighborhood and size of the home and take the local property market into account. However, the two methods can produce different prices if the market takes an unexpected turn.

In this case, the market value method is the more accurate option if you’re trying to sell your home. This is because if the appraisal is higher than the market value, you may find it difficult to find a buyer for your home.

Get an Online Valuation

When it comes to the appraised value vs. market value debate, it’s important to understand how both of these figures are calculated. While an appraisal is conducted by an unbiased professional, market value can fluctuate depending on what people are willing to pay for the property. This is why the appraisal value is trusted by financial institutions around the world.

This is why selling your property with iBuyer.com is so easy, as you can get an accurate estimation directly from our website. This gives you an instant valuation, allowing you to sell your home in a fraction of the time.

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Does it Make Sense to Remodel My House Before Selling?

Did you know that the average cost to renovate a home in the United States is $46,748?

While the house-flipping industry can be incredibly profitable at times, making massive home improvements before selling your home is a massive undertaking. This does not just cost money but can also take up much of your time and add stress to your daily life.

This is why it’s so important to do the math to see if you can get a decent return on your investment before investing anything in the home.

Should I remodel my home before selling it? You’ve found the right article. Here’s everything you need to know about home improvement before selling your home.

Factors To Consider Before Deciding

Since your home is an asset, renovations should always be considered an investment. This is because renovations and upgrades can have a positive impact on the value of your home. However, the question is if the impact is worth the time, money, and effort that goes into remodeling your home in the first place.

Before you decide on investing in your home, it’s important to consider a few important factors. These factors range from personal finances to the general property market. To help you make your decision, here’s a quick look at these factors.

Housing Market Conditions

The housing market is the single most important factor to keep in mind. This is because the market value of your home is heavily dependent on comparable sales in the area. If you know the market value of your home, you can also look at the estimated market value of your home after the renovations are complete.

This is a great indicator to see if the renovations are worth the investment in the first place. However, this will also let you know if there is a demand for the upgrades that you’re proposing.

Buyer Needs

When looking at the current market conditions, it’s important to look closely at what buyers are looking for. This will let you know if your home has what they’re looking for or if you can benefit from upgrading your home to meet the needs of the market. Since you will be renovating your home for potential buyers, this can help you find out what they want in a home.

Your Financial Situation

Renovating your home before selling it costs money. In most cases, these renovations will have to be in cash. This is why it’s important to see what upgrades can give you the best return, but also consider your current financial situation to see if you can afford it.

Investing in your home is still risky, so you should keep that in mind when spending money on these renovations. While you can command a higher price, there is no guarantee that you will actually get it after everything is complete.

How Fast You Want to Sell

Renovations take time to complete. While this is dependent on the kinds of renovations you want to do around the house, the truth is that valuable renovations tend to take a lot longer. You will have to wait longer before listing your home on the property market.

This adds to the risk of renovating your home as the property market could shift by the time you list your home on the market. In this way, there is no guarantee that the market value of your home today will be the same as the market value of your home after you’re done.

Selling your home as-is can be done in the blink of an eye. This means renovating your home before selling will add time to the entire process. If you’re waiting to move to another city, this may delay your entire move.

In some cases, waiting can cost you more money than you can make after the renovations are complete.

The Best Home Improvements Before Selling for the Highest Return

As mentioned above, investing in the right places to maximize your return is important. This is why you should take your time to see the current housing market demands. However, a few safe bets are worth considering when upgrading your home for a profit.

1. Replace Windows

If you’re looking for an affordable way to improve the look of your home, consider replacing your windows. This cost-effective option can go a long way to improving your home’s curb appeal. You can see a decent return when you sell your home by investing in new windows and a new front door.

2. Solar Panels

Investing in solar panels is a great way to improve the value of your home. Solar panels have decreased in price over the last decade, making them a great investment. Homes with solar panels benefit from lower maintenance costs, allowing you to claim a higher price for the home when you put it on the market.

3. The Kitchen

The kitchen is the heart of the home and is often the most important room to consider remodeling. Every investment in the kitchen, from built-in appliances to premium countertops, can help you command a higher price for your home. Since the appliances are comparable, it’s easy to secure a decent return on your investment.

How To Calculate If It’s Worth Repairing

Investing in your home for the sole purpose of selling it for a higher price is a risk. This is the business model for house flippers trying to bring an older home to life for a profit. While the house-flipping industry proves that it can be done, the question is if it’s worth it for you to do.

The simplest way to find out if it’s worth it is to estimate the return you can get from your investment. This starts by calculating how much it would cost to do the renovations you want. These prices will increase depending on how much work you want to be done around your home.

If you want to replace the flooring, it will cost you less than if you were to extend the house to add a few more bedrooms. However, adding bedrooms may impact your home’s value more than modern flooring. This is where you need to do your research and see what investments are best to prioritize.

Once you finalize what renovations you want, you need to estimate how much these upgrades will cost you. You can approach a construction company or contractor for an accurate quotation. After you have this quotation, you can compare it to how much you estimate your home can sell after the upgrades are completed.

For example, if your home is currently valued at $300,000 but would be valued at $400,000 after the renovations, you will be able to calculate that the renovations add $100,000 to your home’s value. If your renovation costs are more than $100,000, then it’s clear that they are not worth it.

Should I Remodel Before Selling?

While this may sound like a simple question, the answer depends entirely on your situation. If you’re thinking of renovating the home you currently live in, you will have to suffer through weeks of renovations. This can be incredibly frustrating for everyone at home.

As mentioned above, the entire renovation process is costly. However, renovating your home costs you more than just money, as it’s often time-consuming. In this way, selling your home as-is can save you time and take the stress off your shoulders.

When remodeling your home, it’s true that you may increase your home’s appraisal value. However, the market value fluctuates, and there’s no guarantee that you’ll get more money for your home later on. In this case, it may be better to sell your home as-is at the current market rates.

Consider Selling Your Home As-Is

If you’re thinking about investing in a few home improvements before selling, it’s important to take your time to consider if it’s worth it. This is because you may not always be able to get a decent return on your investment when you eventually list your home on the market.

In addition, there are easy ways to sell your home as-is to save yourself the headache. Platforms like iBuyer.com make it incredibly easy to sell your home as they can give you an accurate valuation of your home directly from their site.

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What Happens to Your Mortgage When You Sell Your Home?

If you’re a homeowner, the idea of selling your home is both exciting and scary. You know how much time and energy went into buying your first home. You’ve likely lived in it for years and grown attached to it.

But as you know a house is more than that. It’s a financial asset. So you may wonder what happens to your mortgage when you sell your house 

This guide will help you understand what happens when you sell a house with a mortgage. This way , you can make an informed decision about whether this is the right time for you.

Let’s dive in. 

What Happens To Your Mortgage When You Sell Your House?

The biggest point to remember when considering what happens to your mortgage when you sell your house is that the debt doesn’t disappear when you sell the home. You’ll still owe the money, even if you’re planning on using the proceeds from the sale of your home to pay off the mortgage.

The biggest point to remember is that the debt remains when you sell the home. You’ll still owe the money, even if you’re planning on using the proceeds from the sale of your home to pay off the mortgage.

If you sell your existing property and buy a new one with its sales proceeds, it will be the same as if you had used cash or a line of credit instead: The debt doesn’t go away.

Instead, it’s transferred over so that it’s attached to your new property; this is called refinancing or re-mortgaging. If all goes well (and there aren’t complications), this can result in lower monthly payments on both properties. This is because there’s more equity in each one now thanks to appreciation over time, and interest rate decreases during shorter periods since initial mortgages were taken out but beware!

Mortgages in the Era of Inflation in 2022

In the years following 2022, inflation will likely wreak havoc on the economy and financial institutions.

The dollar value is likely to drop, so paying off your mortgage as soon as possible is advisable if you want to avoid accumulating more debt.

If you’re a homeowner and haven’t paid off your mortgage yet, now is the time to do so. You can save a lot of money by using your savings or taking out an equity loan instead of paying interest on a mortgage.

See Your House With a Mortgage

Think about it this way: two mortgages are happening here. The mortgage on your current home is paid off by selling it and using the proceeds to pay down a new mortgage on your next home.

The mortgage on your current home is paid off by selling it and using the proceeds to pay down a new mortgage on your next home. The old mortgage will still be there, but you’ll have paid down that debt with the money from selling your old home.

You can also consider taking out a cash-out refinance to have some extra cash in hand after closing. This way, if you need a big repair or other unexpected expense before moving into your new house (or even during), it won’t be a problem because you have cash reserves available!

Contact Your Lender

Try contacting your lender directly. They may have further information about the status of the loan.

Remember they can help you get things sorted out. If they don’t give you the information, you need be persistent. 

What is Equity? 

Equity is a financial term that describes the difference between the value of something (like a house or a car) and what it costs to buy. Your equity in your home is the difference between how much you owe on your mortgage and how much your home would sell for.

If you can’t make your regular mortgage payments, you may be able to give up part of your home equity by refinancing or taking out a home equity loan. Generally speaking, owning equity in a home provides some protection from financial hardship.

Can You Sell a Home With Negative Equity?

You can sell a home with negative equity, but you might have to do a little more work. More so than an owner whose home is valued at more than what’s owed on it.

If a bank forecloses on your home and the total debt (mortgage, taxes, and other fees) exceeds the value of your home, you’ll have negative equity. If you’re underwater, putting your house up for sale will be an uphill battle because fewer buyers are interested in homes they can’t afford.

What if You Don’t Have Enough Equity?

Many banks are hesitant to lend money to homeowners who don’t have positive equity and will likely never be able to repay a new mortgage.

Homeowners who don’t qualify for a mortgage because they do not have enough money to put down on the home are considered “cash-strapped.” This might be the case if you were in financial hardship, inherited the house and have no equity, or had your home foreclosed in the past.

What Happens To Equity When You Sell Your Home?

When you sell your home, there are two categories of equity. These are seller’s equity and buyer’s equity.

Seller’s equity is the money the seller keeps from the sale, while buyer’s equity is how much the buyer owes on the property after closing.

You have two options. First, take the money you get from the equity of your old home and invest it in a new product. For example, if you have already paid off 80% of your mortgage, you’ll get 80% back. You then take out a new mortgage when you purchase a new home. 

Alternatively, you can have the equity from your old home roll over into your new mortgage. If you’re downsizing, you could have a smaller mortgage on your new home that you’ll pay off quicker. 

How Much is Left On Your Mortgage?

A basic rule of thumb is that you want to try to sell your home when you have at least 20% equity in your home. That means you’ve built up at least 20% of its value through paying down your mortgage and/or through market appreciation.

So there is 80% left on your mortgage. When selling a home with little or no equity, there are some options for the seller, but your choices are much more limited. 

Understanding How Deficiency Works

If there’s any remaining balance owed after the sale, it’s called a “deficiency.” This might happen if you owe more than your home is worth after repairs, and other costs are deducted from the sale price.

The IRS says that if you don’t pay off your mortgage before selling, you’ll be taxed on any remaining balance. 

If your lender forgives part or all of what is owed (called “canceling” or “forgiving” the mortgage), then this may be considered taxable income. For example, if you have $100,000 left on your 30-year fixed-rate $200,000 mortgage when it gets foreclosed, and your bank cancels half of it, you owe only $100K.

Then they will send you a 1099-C form indicating how much they canceled ($50K).

That amount would be reported as income on Line 21 Other Income section on Form 1040 (or Form 1040A), where anyone can see how much profit comes from cashing in their house!

Sell Your House With a Mortgage

The traditional way to sell your home is to list it with an agent, and wait for a buyer to come forward. But there’s a faster and easier way to sell your home with a mortgage. When you take out a new mortgage loan and use your home as collateral, you have just given yourself more flexibility.

An alternative option to selling your house with a mortgage is to rent it out until the next owner moves in the only risk here is that you might need more money back on rent.

Find the Estimated Value Of Your Home

When selling your home, there is no better way to find its estimated value than with a home inspection. A professional home inspection is a high-quality, detailed inspection by a local member of the real estate industry who will meticulously evaluate every aspect of the house and property.

This will give you the knowledge needed to determine if your house is worth more or if it needs some extra work done.

Find the Selling Solution That Fits Your Needs

If you’re looking for a solution to selling your home, consider iBuyer.com. We can help you sell your house fast.

Their process is done entirely online. This can be a lot more efficient than hiring a real estate agent. You’d also be surprised at the prices on offer as they are competitive. Closing costs are also minimal compared to traditional real estate agents.

Pay Off The Mortgage 

If you’re wondering what happens to your mortgage when you sell your home, the best solution is to pay off the mortgage before you sell your home. 

If you already have 80% equity in your home, it can be worth trying to find a way to raise funds to pay down the last 20%. To do this, consider taking a second job for a short period of time or tightening your monthly expenses to make bigger mortgage payments to get over that line. 

Conclusion

Hopefully, now you know what happens to your mortgage when you sell your house, you feel more prepared to go through the selling process.

If you’re looking for more information on how selling your home works and what steps need to happen before you can move on with life after moving out of your current house, we can help. Start by finding out how much your house is worth and getting a no-obligation offer.

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