Category Archives: Uncategorized

Are interest rates about to go up? (Hint: Yes)

You may have heard an ugly rumor that interest rates on new home mortgages are going up soon. If it’s true, then it’s bad news for pretty much everyone as it means that homebuyers will have to pay more over the lifetime of their loan, and those selling their homes will now have to account for buyers who can’t get financing as cheaply as they used to be able to.

Well, I’ve got bad news. Rates are going up, according to the Federal Reserve of the United States.

 

But there’s no need to panic right at this moment. The rates aren’t going to go from 4% to 8% overnight. The Fed plans to raise rates slowly.

However, two things should be kept in mind. First, waiting too long to sell your home may work against you. Even if the fed raises rates slowly, they are still raising the rates, which negatively impacts the market. This means there will be less people who can afford to buy a home and less fish in the pond to sell your home to.

Secondly, because other sellers may be concerned about the rates being raised, this could result in a bit of a home sell-off in the upcoming months. That could have the result of there being more homes on the market than there are buyers on the market, and everyone’s homes may be devalued as a result.

The bottom line is don’t panic but also don’t wait too long to sell if you have a home you would like to sell in the near future. If you do decide to sell you home, consider filling out this form to let Upstate House Buyers take a look at it.

What happens when no one wants to buy my house?

Upstate House Buyers is frequently contacted by people all over the Upstate (and sometimes elsewhere in SC) who are trying to sell their homes. Usually, however, we are not the first people they’ve tried to sell to. Oftentimes, when someone contacts Upstate House Buyers, we will do some quick research and find that their home is listed online, and oftentimes their list price is similar to what they’re asking for us to buy it for.

Is that a problem? Maybe. The question is, why isn’t anyone willing to buy the home now and what needs to be done in order to make the home attractive enough for someone to buy it?

If the home is ugly, run-down, falling apart, etc. and all it needs is some sweat equity, then Upstate House Buyers would love to purchase it. Those are the types of homes that get us most excited. However, if the home is already in perfect condition and no one wants it, that means there’s only one way to sell it – lower the price, even if you think the price is already low.

“But,” you say, “Aren’t you one of those ‘we buy houses’ people who buy anything and everything out there?” Well, yes, we are. But this is our job, and as such, we have to make money doing it. If your home is already fixed up and in good condition, but you can’t find anyone to purchase it for $75,000, then Upstate House Buyers would not be able to purchase it for $75,000, otherwise, we would not make any money when we try to resell the house.

So make sure that when you are trying to sell your home that you look at it from the perspective of the buyer and ask for a price that makes sense both to you and to them. There are no charity buyers out there who are going to buy the home off of you even though no one else wants it for that price. However, Upstate House Buyers will do our best to give you a fair offer on whatever home you send our way. Just fill out this form to get started.

Should I sell my home on Craigslist?

Craigslist is an easy, inexpensive way to sell a lot of things, from old furniture to used cars. But what about houses? There are four questions you need to ask yourself before deciding if selling on Craigslist is the way to go.

1. Am I willing to sell this home for less than I think it’s worth? Let’s face it – Craigslist is not the place that people go to when they’re looking to pay top dollar. These are bargain hunters. These are cheapskate investors. These are people who can’t get bank financing and are hoping to be able to purchase a dirt cheap home without a bank being involved. If you think you’re home is worth $50,000, then a person on Craigslist will offer you $30,000. That’s simply the nature of the people who use that site, and it’s important to know that ahead of time. Which leads me to the second question:

2. Who do I hope will buy this home? If you’re hoping a wealthy, cash-buyer investor will see your home on Craigslist, odds are you’re going to be waiting a while. Most investors don’t spend time on Craigslist because there are so few deals that really make good business sense for them on that website.

If you’re hoping a buyer with good credit who can get good financing to purchase your home will see it on Craigslist, again you need to rethink things. For starters, most buyers with good credit are using realtors and looking at homes on the MLS, not Craigslist. But the other issue is that if a home needs work done to it, a bank is not likely to provide financing for it. The banks don’t want to see holes in the walls, stains on carpet, or heating/air conditioning issues. If they do, they won’t provide financing – simple as that.

That means, your audience on Craigslist is everyone else besides the wealthy investor and the well-to-do homeowner who needs a mortgage. Most of these people are those who don’t have a lot of money and have poor credit – is that who you are looking to sell your home to?

3. Am I willing to provide seller financing? This may be the most important question of all. Why? Because the vast majority of those who are going to contact you on Craigslist: a) don’t have much money, b) can’t get bank financing (due to bad credit), and as a result c) can only buy a home if they can get seller financing of some sort.

So if the answer to the above question is Yes, then maybe Craigslist is a good option. But if you’re hoping to get paid in full right away, you aren’t likely to get anywhere advertising your home on Craigslist.

4. Am I willing to deal with the hassle of Craigslist? Anyone who has ever sold anything on Craigslist knows what I’m talking about. It’s a HASSLE. Lots of phone calls. Lots of emails. Lots of showings. And no showings (“Oh, sorry – I thought I told you I was no longer interested and didn’t actually want to see your home today”).

Everyone sounds like they’re going to buy right away, and then nobody does. Remember, if they’re contacting you, they’re probably contacting a lot of other people about their homes too.

So what is my suggestion? Deal with an investor, like Upstate House Buyers who has the ability to purchase your home painlessly and quickly. If you’re interested in learning more, go ahead and fill out our “Sell Your House” form, and we’ll be glad to get in touch with you.