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Buying a New Home Vs Renovating the Existing One

If you live in an old-fashioned home or aren’t happy with the present condition of your home, you might be feeling hesitant between whether you should purchase a new home or renovate the existing one. While it might feel the best option to sell your old house with the help of a sell my house fast NJ company or to a company that says “we buy houses in NJ” and move in to a new, shiny home, in reality, both options come with their fair shares of pros and cons.

In this post, we’ve outlined the pros and cons of both buying a new home and renovating your present one to help you make an informed decision.

Buying a New Home

Pros

  • New start: The biggest advantage of buying a new home is you get to start everything afresh. It’s a fact that regardless of the amount you spend for renovating your existing home, it’d never become new. Additionally, when you purchase a new home, you get the option of customizing it according to your preferences.
  • New technologies: Usually, older homes don’t have energy-efficient amenities, which often lead to higher utility bills. Purchasing a new home with modern amenities powered by the latest technologies could be the best option to address this issue.

Cons

  • Additional expense: Buying a new home is usually a more expensive affair than renovating your existing one. Some of the essential costs you need to consider include legal fees, closing costs, moving expenses, selling costs, stamp duty costs, etc.
  • Hassle of relocation: If you can manage the cost aspect by selling your old house to a reputable we buy houses in NJ company, you cannot avoid the hassle of moving out and settling in the new house. Moreover, if you’ve got a strict timeline to follow, buying a new house may not be the best idea.

Renovating Your Existing Home

Pros

  • Customizability: When you renovate your existing home, you get full control over how things will be done. For instance, if you want to upgrade your old kitchen, you can do that either fully or partially. Of course, you’ll get a brand new kitchen with the new home, but you may not love everything in there.
  • Increased home value: By doing some thoughtful renovations, you’d be able to increase the overall value of your home. Some of these include kitchen upgrades, additional bathrooms, new flooring, garage and loft conversions, etc.

Cons

  • Complicated process: Renovations may turn out to be disruptive and messy. Not only you’d need to live through construction, but a temporary relocation might also be required if the projects cover the entire house.
  • You may still have issues: In case you don’t like your present neighborhood or want to live in a better school district or want a bigger lawn, it’s simply not possible to address these with renovations.

Final Words

The question of whether to purchase a new home or renovate your present home actually comes down to your personal requirements and preferences. So, thoroughly assess the pros and cons of both the options we discussed above before finalizing anything.

 

A Comprehensive Checklist for That Final Walk-Through

Whenever you’re buying a home, you’ve to make sure that the property is in the same condition as you last saw it and this is exactly where the importance of a final walk-through comes in. This step also lets you verify whether or not the improvements or repairs have been carried out by the seller if agreed. Whether you’re buying the home from a reputable “we buy houses in NJ” company or from a company that comes with the tagline “sell my house fast NJ”, you need to keep track of lots of things. Therefore, it’s greatly beneficial to maintain a checklist during a final walk-through.

Take a look at this comprehensive checklist we’ve created to ensure you never miss a thing.

Double-Check All Repair

It’s essential to take a thorough look at all final repairs before anything else. Make sure all repairs negotiated by the seller have been fully completed and that the receipts and warranties for those works are there. If anything goes wrong, you’ll be able to follow up with the company or person who did the job.

Inspect the Bathrooms

If you became overwhelmed by the outstanding features of the home and forgot to check the bathrooms in your earlier visits, this is your final chance to do so. Make sure the bathrooms are fully functioning and are free from water damage, mold, etc. Check the faucets and make sure they’ve hot water and don’t leak when you turn them off. Also, check to toilets out to ensure they aren’t running.

Make Sure Items Are There According To the Purchase Agreement

Your purchase agreement essentially mentions what items are included in the sale and what aren’t. If possible, bring the agreement along or a list of the items so you can check them out. Make sure that items that were to stay don’t go missing. Remember, items such as built-in furniture, light fixtures, doorknobs, etc usually stay unless otherwise stated in the contract.

Test the Appliances

Check all the appliances to make sure they’re in full working condition. Focus on things like ovens, dishwasher, washer and dryer, etc. Do this with the heating and air conditioning as well.

Make Sure the House Is In Broom Clean Condition

The house has to be vacuumed, swept, and free of additional stuff or debris after the seller moved out. Thoroughly check cabinets, closets, basements, garages, etc to make sure you aren’t receiving any unwanted thing from the seller. If you observe any such thing, contact the seller to have them removed.

Final Words

Once you’re done checking the interior of the house, be sure to observe the outside too. If the landscaping seems to be as agreed by the seller, check out systems like gates, irrigation systems, etc. If you find anything has gone wrong, just let the seller know about it and ask him/her seller decently to fix it. Usually, sellers want to make the closing a smooth process so just flagging the issue should help you get the job done.

 

Key Advantages of Selling Your Home in Winter

While spring is generally considered to be the best time for selling a house, selling during the colder months could easily bring some significant benefits your way. In this post, we’ve outlined the key benefits of putting up your home on the market for sale or selling it to a company that says “we buy houses in NJ fast” in the winter.

Less Competition

Winter, being the least preferred home-selling season, experiences much less competition in the real estate than other seasons. So, competition over fewer numbers of homes for sale eventually increases your chances of selling your one quickly. However, you should understand that even if you’re selling the home in winter, it has to be in its best condition. Buyers would start lowering the offer price if they observe too many flaws. Make sure you employ the best staging practices to sell your home fast.

Only Serious Buyers

There’re always some casual lookers who tend to check out the homes on the market without any serious intention of buying. Since more houses are available on the market during spring, the number of these window shoppers is naturally high. But in winter months, only serious buyers can be found in the market. As a result, you need to deal with fewer numbers of serious purchasers.

Faster Process

Since fewer homes are available for sales in winter, the number of actual sales is also lower than in peak seasons. As a result, closing times on deals usually become shorter. Additionally, in the winter, home improvement contractors aren’t as busy as they typically remain in spring and fall. Therefore, if you need to make some renovations to give your home a fresh look before listing it on the market or selling it with the help of a company that aids people who’re troubled with the question “how to sell my house fast in NJ”, you can get them done quickly.

Availability of Corporate Employees

January and February are usually considered to be the biggest months when it comes to corporate relocation. And these employees typically have a tight timeline for relocation. So, if you sell your home in winter, these buyers can reach out to you and your home fulfills their requirements, they’ll be ready to close the deal quickly.

Minimum Effort on Landscaping

When you sell the house in spring and summer, you need to invest a good amount of effort, time, and money to maintain the landscape in an attractive condition. By putting your home up for sale in winter months, you can easily minimize this headache and focus more on upkeep of the interior of your house.

Conclusion

If you’re serious about selling your home in winter, avoid keeping the price too high as the market is usually a low-inventory one. If you list it too high, you’ll run the risk of having no or minimum numbers of prospective buyers. By keeping the price fair and maintaining your home properly, you should be able to sell your home quickly and profitably even in the winter months. You can also contact a reputable we buy houses in NJ company to make the selling process an effortless one.

 

Major Disadvantages of Selling Your House on Your Own

FSBO (for sale by owner) listings could be tempting to opt for, especially if you don’t want to spend on real estate commissions. However, selling your home on your own in New Jersey is a complex and lengthy process. It has its disadvantages too. Some of the key ones are listed below.

A Lengthy and Complex Process

If you take up the FSBO route to find an answer to your question – “how do I sell my house fast in NJ?” you’ll be up for disappointment. Selling on your own would mean doing all the legwork and associated tasks by yourself. From researching the market, setting a sales price, learning about the relevant financial and legal details, creating marketing materials for the home, and advertising the property to screening potential buyers, scheduling house showings for them, and negotiating contracts, you’ll have to do all these and more. That’s why FSBOs will take a lot of your energy, time, and patience but may still not sell fast. A faster alternative is to come to us as we buy houses in NJ for cash.

The Risk of Overselling or Underselling

Since you have an emotional investment in your home, you may tend to oversell the features and amenities of your home. Attracted by these, when interested buyers come to check the place in person, they’ll find how exaggerated your claims and price have been. Thus, they’ll trust you less and may not be interested in buying. In case your house has been sitting on the market for long, you may end up selling it for a price much lower than what its fair price should have been (by failing to negotiate well) or sell it to the wrong buyer.

Lack of Experience and Access to Necessary Resources

Experienced realtors have their own networks, are adept in social media marketing, and have access to multiple listing services, websites, newspapers, etc. By using all these platforms, they can give your home the desired exposure to target the right buyers. But you won’t have access to most of these insider resources or may not know the right way to leverage them. Thus, you could end up attracting casual buyers who’re “just looking” and don’t really have any solid plans to buy a home. Even when clicking photos of your home or staging it, your lack of experience and access to the necessary resources could mean an amateurish listing that fails to impress and attract potential buyers.

Navigating the Complex Closing Process Is Tough

After you have found a buyer, you’ll need to negotiate with the buyer’s agent. Usually, you may also have to meet their attorney to sign the closing papers. Doing it on your own could make you miss some important documents like the final home inspection report, a written mortgage commitment, attorney-approved contracts, etc. If you had engaged an experienced realtor, you could have sailed through the closing process stress-free as your realtor would have competently dealt with the legal and financial aspects of the process.

Even if FSBOs sound lucrative, going with a realtor is a wiser decision when “I want to sell my house fast in NJ”is your goal.

 

Pros and Cons of Buyers and Sellers of Rent-To-Own Homes

If you don’t have your finances ready to buy a home right away from a “we buy houses in NJ” company, a rent-to-own home could open up an opportunity to gradually become a homeowner. And if you’re a seller, entering into a rent-to-own agreement might prove to be beneficial than joining hands with a “sell my house fast NJ” company.

In this post, we’re going to see the major pros and cons of rent-to-own homes from both buyers’ and sellers’ perspective.

Buyer’s Perspective

Even if you fulfill all criteria to qualify for rent-to-own, things may not be rosy always. Let’s take a look.

Pros

  • You can move into your preferred house instantly and get adequate time to prepare your credit and finances. Therefore, at the time of purchasing the house, you’ll be in a position to secure a mortgage loan easily.
  • You’ll be able to build equity in the house through your monthly rent payments, which will eventually lower the amount of down payment that you’ll need to pay at the end of the contract.
  • It’ll let you check out the home, as well as, the neighborhood. If any of these doesn’t suit you, you can cancel the purchase as long as your contract allows it.

Cons

  • You’ll probably responsible for doing maintenance and repairs on the house, which may become an additional burden during your stay. Additionally, if you cancel the purchase for any reason, all the money you spent on those jobs will be gone.
  • Also, if you decide to back out, your option fee and the percentage of rent that was set aside by your landlord for the purchase will be gone.

Seller’s Perspective

Here’re the pros and cons of a renting-to-own you need to consider if you’re a seller/landlord.

Pros

  • Entering into a rent-to-own agreement would help you get more potential buyers if you’re facing difficulties in getting ideal buyers.
  • During the lease period, you’ll have a steady source of regular rental income.
  • If your tenant decides to walk away, he/she will forfeit the extra money that was being paid toward the purchase of your home.

Cons

  • If your tenant decides to back out at the end of the contract, you’d need to go through the entire process of finding a potential buyer once again. Contacting a “sell my house fast NJ” company would be a smart move to avoid that hassle.
  • If the value of your home increases considerably during the lease period, you’ll lose the additional money when selling the home at the end of the contract. In that case, partnering with a “we buy houses in NJ” company could prove to be beneficial.

Conclusion

As you’ve understood from the above, rent-to-own home agreements come with a fair share of pros and cons for both buyers and sellers. Therefore, it’s absolutely important to assess both sides of the coin before making a final decision. However, from a seller’s perspective, contacting a “we buy houses in NJ” company seems to be the best option if you don’t want to take any chances.

 

Reviewing the True Importance of Home Inspection

Before buying a home, it’s important for you to spot major issues, if any, with the property prior to closing. A home inspection can help you with it. If you’re buying from a relative or friend, you may tend to give it a miss. You may even shy away from the additional expenditure associated with the home inspection. But as a buyer, a home inspection is worth the investment. If you want help with the process or need quick cash, you can come to us because we buy houses in NJ for cash.

Sellers too should opt for pre-inspection before they put their home for sale in the market. This can highlight their home’s selling points, build buyers’ trust, and even help them save money by giving a fair idea of the problems and repairs needed. In case the question “how do I sell my house fast in NJ?” troubles you, you can come to us to get the entire process done speedily and in a hassle-free manner.

Home Inspections – What’s In It for Buyers?

According to a poll conducted by the ASHI (American Society of Home Inspectors), 90% of homeowners consider home inspections to be a necessity, not a luxury. Even when you’re buying from someone you know (a friend, colleague, neighbor, or relative), you shouldn’t waive the inspection. Wondering why? That’s because even if the seller isn’t hiding something intentionally, the home could still have some maintenance issues that remain hidden to your untrained eyes.

You should remember that a home inspection would be favorable for the buyer’s interest. Though some homebuyers may shy away from the added cost of an inspection or think that home inspectors are trying to make a commission, you shouldn’t think or act like them. Imagine what would happen if you find the home you just bought has a leaking roof or a sinking foundation. Or that you’ll need to shell out a considerable amount to fix the HVAC system. In case you find the home’s major appliances aren’t working properly or the property has extensive mold damage, you would need to invest an additional amount to get the issues fixed/repaired. You already know what an expensive investment buying a home is. Would you be ready to pay an additional couple of hundreds and thousands? We guess not. But you’re likely to be forced to walk down that dreaded path if you skip the home inspection. 

In case home inspection identifies expensive problems with your chosen home, you can negotiate a lower price, ask the seller to get the problems fixed or repaired, or give you a credit at closing to let you fix/repair what’s needed. In case some serious problems come to light due to the home inspection, you won’t lose your earnest money if you simply cancel the sale.

Home inspections – What’s In It for Sellers?

By opting for a pre-inspection, you could get a heads-up about the repairs or problems that need to be fixed. Getting them done before listing your home would improve your chances to sell it faster. This will allay your worries if you often ask “how to sell my house fast in NJ?” Knowing that you’ve already got the home inspection done would also show how upfront you are about the property. This would instill confidence in potential buyers.

So, whether you’re a buyer or seller, choose to get the home inspection done for your property.

 

Top Home Renovations to Sell Your Property Fast

Are you planning to put your home on the market? Or, thinking of selling it to a company that says we buy houses in NJ for the best price? In both cases, making some renovations could easily increase the value of your home and expedite the selling process. Unfortunately, not all renovation projects increase the value of your property. There are some select few that could do the trick. If you’re selling, focus on doing these renovations.

Key Renovations to Increase the Value of Your Home

Remodel the Kitchen

Based on the value of your home, improve damaged or outdated features with appropriately priced upgrades. These may include improving cabinets, sink and fixtures, countertops, cooktop, etc. The key here is to consider the materials carefully so they can match the present aesthetic of your home.

Refresh Your Bathrooms

Old-fashioned bathrooms may act as major deterrents not only to many potential buyers but also to some companies that come with the tagline “sell my house fast NJ”. But you don’t need to go for a major overhaul. Instead, focus on simple, affordable updates to give the bathrooms a fresh look. For instance, updating things like drawer knobs, door handles, installing a wall-mounted mirror, etc. could help you rejuvenate the bathrooms.

Update the Windows

These days, ENERGY STAR qualified windows are getting high preference among lots of homebuyers looking to increase their home’s energy efficiency. If you’ve single-pane, old windows, replace them with energy-efficient windows to increase your home’s value and attract more potential buyers quickly.

Focus On the Landscape

An attractive, well-maintained landscape can do wonders in drawing potential buyers’ interest. Simple things like mowing the lawn, trimming the trees, etc are enough to give your home a fresh look. You can also add flowering plants, pressure-wash walkways, reseed grass to improve the curb appeal. To improve the backyard, remember to clear the overgrown jungle and apply a fresh coat of paint to the deck, if possible.

Upgrade the HVAC

The HVAC (heating, ventilation, and air conditioning) of a home are the systems that keep it operating. If you’ve got an old air conditioner, heater, etc or they’re in poor condition, these may leave a negative impression on prospective buyers. Upgrading these systems would not help you attract more buyers but you’d be able to recover a major percentage of the replacement as well.

Upgrade the Lighting

Thoughtfully placed light fixtures can easily transform a dull home into a user-friendly and inviting one. Replace your old-fashioned light fixtures with modern ones to add a definite wow factor to your home it’d lack otherwise.

Closing Thoughts

When you’re renovating the home with the objective of selling it, either to a “we buy houses in NJ” company or with the help of a “sell my house fast NJ” company, you should focus on renovations that could draw the attractions of potential buyers quickly. You should go for things that buyers are looking for instead of doing renovations according to your own preferences in order to maximize your return on investment.

 

Things You Should Know At an Open House to Make an Informed Decision

If you’ve shortlisted a home among the ones offered by a company with the tagline “we buy houses in NJ fast”, attending the open house would bring a perfect opportunity your way to make an informed decision. You should leave the open house understanding whether or not the property would be the best option for you. To help you accomplish this goal, we’ve jotted down the key questions you should ask at the open house to get a clear picture.

Essential Things to Know At an Open House

Time on Market

This is one of the most important factors that would help you understand the flexibility on price. If the home is on the market for a while without much interest, the individual seller or the sell my house fast NJ company that’s selling the home might be more flexible to negotiate. On the contrary, if it was put up just a few days ago, sellers would typically wait for some more time to get something better. However, if the home is staying on the market for a considerable amount of time, try to identify the reason.

Fluctuation in the Price

If the seller is a reputable we buy houses in NJ company, you can easily find out whether or not the price has shifted after the home was listed first. If yes, check the reason out. It could be the seller needed to move on a strict timeline but it’d help you understand if the price is flexible.

Total Number of Offers

If you’re truly interested in buying the home and there’re multiple offers on the home, you may need to act fast and come up with the possibly strongest offer. And when there’re multiple offers, making a low-ball offer wouldn’t be a good idea as the seller would likely pass it over for something better.

Issues with the House

The seller’s property disclosure statement would help you get a clear picture of the major problems, major renovations, and the systems of the home (along with their ages). Get a copy from your agent and read it thoroughly. If you need any clarification, ask your agent or the sell my house fast NJ company that’s handling the process.

Ask About the Neighborhood

Getting a clear idea of the neighborhood would not only guide your decision but impact your ability to sell the house if you want to in the future. For instance, many people want to live near good schools so having the house positioned in those areas would eventually increase its value.

Wrapping Up

An open house gives you the important chance to know the condition of your shortlisted house along with other crucial factors that would guide your decision. Also, remember to do your own research on the home and the locality instead of depending solely on the information you received from the open house. And if you need more in-depth information on the house, it’d be prudent to consult a reputable we buy houses in NJ company operating in the area.

 

Why It Is a Good Idea to Rent out Your First Home When You’ve Bought Another

Despite the rise in the overall home prices, there are many real estate markets that present a huge opportunity for potential buyers in terms of wealth building. This becomes especially true when you buy a second home. Undeniably, selling your first vacant home to a “we buy houses in NJ” company would be the best and most profitable idea. But if you don’t want to sell it right away, renting the house out could prove to be highly beneficial.

Let’s take a look at the reasons why you should take this route instead of keeping the home vacant.

You’ll Have an Additional Income

The rent you can charge for the first home depends on various factors such as locality, condition of the house. However, by doing the required renovation, it’s possible to charge a decent rental that would help you cover your insurance, taxes, mortgage, and usual maintenance costs.

You Can Get a Better Home Value Later

In case you aren’t satisfied with the current value of your home, renting it out can bring some additional income your way while you wait for the price to appreciate. This would be especially beneficial if homes in the area are appreciating rapidly.

Tips To Make the Most Out Of Your Rental Property

Now that you know why it’s a smart move to rent your first home out, let’s see some strategies that would help you maximize its rental potential.

Doing Improvements

Doing necessary improvements almost always helps to get the maximum value out of your rental property. Focus on doing inexpensive yet important things like mowing the lawn, planting flowers on it, adding new hardware on cabinets, adding a new coat of paint on them, cleaning the property thoroughly by professionals, etc.

Hiring a Real Estate Agent

If you want to eliminate the hassles associated with advertising, showing potential tenants the home, running their background checks, etc, hiring a real estate agent could be your best option. This would be also especially beneficial if your rental home is in a different locality. Of course, it’d be an added expense but it’d make the process much easier for you. However, it’s important to understand that it’s quite an uphill task to hire the right real estate agent. There are two ways through which you can get this right – talk to a reputable “sell my house fast NJ” company to get some references or follow these simple yet highly effective methods.

Parting Thoughts

If you’re thinking of building wealth utilizing the real estate market, renting your first home out would be a highly effective idea. If the rents continue to increase in the area and you plan to keep the home rented, your return on investment should be good enough along with the gradual appreciation in the home value. Usually, the hardest part seems to be finding good tenants and dealing with bad ones. But joining hands with a top-tier “we buy houses in NJ” company should help you sail through difficult situations effortlessly.

 

An exclusive right to sell – Is it good for you?

https://www.rockethomes.com/blog/home-selling/exclusive-right-to-sell

Once you’re ready to sell your house, you’ll have to consider the different types of listing options when working with a real estate agent. A popular option to consider is the exclusive right to sell. This type of listing is essentially an agreement between a real estate agent or broker and a seller that gives the former exclusive rights to market and sell your home. For the seller, this means he/she can’t hire another agent or broker while the agreement is in effect. Such an agreement also requires the seller to pay a commission to the real estate agent, irrespective of who finally sells the property, as long as the agreement is in place.

When selling your home, you should almost always have the property listed on the MLS (multiple listing service) as you’ll find most of your potential buyers there. Since an exclusive right to sell listing is permissible on the MLS, you won’t have to worry about missing potential customers via such listings.

Exclusive right to sell vs. exclusive agency – what’s the difference?

While the former gives the agent/broker an assurance of getting a commission, no matter whether they or the owners end up selling the property, no such guarantee is there with an exclusive agency agreement. When you have an exclusive agency agreement in place, the broker/agent won’t get a commission if the seller finds a buyer for his/her property and completes the process of closing the deal. However, a lot of monitoring is needed from the agents’/brokers’ end when there’s an exclusive agency listing. This involves managing things like contact with other brokers/agents and buyers to ensure with clarity that the sale of the home occurred with their help. There’s a lot of financial risk for the agents/brokers who have an exclusive agency because despite investing a lot of resources, time, and effort to sell a home, they could end up not getting paid even a dime for it. This alone is the reason why a majority of agents disagree to sign an exclusive agency agreement.

Important details to focus upon

Before signing the exclusive right to sell agreement with your real estate agent/broker, you need to discuss certain things featuring in your contract.

  1. The agreement’s duration

Know for sure how long the exclusive right to sell agreement will last. That’s because if the agreement is in place and you sell your own home (without any help from the agent/broker), you’ll still have to pay their commission.

  1. Other financial obligations

Apart from the agent’s/broker’s commission, remember to consider other potential costs too like repairs/renovations you’ve made before listing your house, closing costs, payments for property tax/transfer tax/capital gains tax, or even expenses incurred for fulfilling any elements of a conditional offer. Being guided by an experienced agent would surely speed up the process and help you bargain better on contractual contingencies.

  1. Cancellation rights of the contract

Understand the situations clearly under which your contract could be canceled. Get answers to what happens if your potential buyer fails to get financing, or if there’re problems with the home during its title search/inspection/appraisal and the buyer cancels the contract, etc. Know what your recourse, if any, would be if the buyer just decides to quit.

Other listing agreements to consider

In case an exclusive agency listing or an exclusive right to sell doesn’t fit your requirements, you don’t need to worry as there’re some other options that you may consider. These include open listing, net listing, and multiple listing service (MLS).

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