My lovely niece has got real estate on her mind, as she wonders, "What is the first thing I should do if I want to buy a new house and sell the one I am in now?"
"Well Danielle - I would advise you to start by gathering information. This is a 2-part effort.
For one thing, you've got to know how much you could sell your house for, and how much you would net from the sale. The net is the sales price minus what you owe on the mortgages, taxes, real estate fees, closing costs, any needed repairs, title insurance, etc. The list will be different in different parts of the country.
The best way to find this out is to have some real estate agents do a Comparative Market Analysis (CMA).
At the same time, the agents can advise you on things you can do to
the house, to make it more appealing to buyers. This might be as simple as 'pre-packing' (also know as de-cluttering!), to smaller tasks such as painting, to more major tasks such as replacing carpeting. An experienced agent should be able to tell you which tasks will net you more $$$.
The other part of the puzzle, is how much can you qualify for on a new house. (I'm assuming you won't make enough on your old house to pay cash, but if you do - HUZZA!!)
So get references for good lenders, or go to your own bank or credit union, armed with the knowledge of how much you'll make from your house. They'll be able to tell you how much you can put down on a new house (after loan costs), what interest rates are, what your payments will be, and the price range you can start shopping in.
You can usually get this much info from a lender without going through a full application, so in other words without having to dig up past tax returns, bank statements, etc. And please know that you shouldn't have to pay for this. If your lender wants to charge you up front just to get an idea what you'll qualify for, walk away.
If you decide to go through with it, the lender you choose to work with will need to do a full application with you, which requires more documentation.
That's what I would consider the first stage of gathering information. If you get through all that and still want to go through with it, let the fun begin!"
Not everyone is lucky enough to be related to a real estate agent. (Or maybe you wouldn't want to get advice from the one you're related to!) So if you have questions about how to buy a house or how to sell a house, feel free to call or email me.
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I write posts on real estate issues and local events in the Denver metro area, especially those *communities between Denver and Boulder, as a public service. My hope is to give people an idea of the 'flavor' of our community, in case they're new or moving to the Denver area.
I am a residential real estate agent, happily helping folks buy a house or sell a house in the beautiful and friendly *suburbs northwest of Denver.
*Arvada, Broomfield, Lafayette, Louisville, Superior, Westminster; also Thornton, Golden, Wheat Ridge, Northglen, Lakewood
Read more about Arvada Colorado, a historic small town between Denver and Boulder.
Find Homes for Sale, no Matter Who Listed Them, at Dream House Hunting.
Copyright © 2011 Joetta Fort
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