How Much Does It Cost To Sell My House?

How Much Does It Cost To Sell My House?

Home sellers on the central coast of California are curious on how much it costs to sell their house and what fees are associated with selling their house.  This will give you a good estimate on what to expect when you list your home for sale. The fees in selling your home are approximately 1%-3% of the sale price of the home to cover the closing cost fees, including title and escrow fees. 5-6% for Realtor Commissions and some small Additional Fees that would be  based on exactly when you close escrow.

The Escrow Fees covered are the following:
1. County Transfer Fees
2. Title Insurance
3. Half the Escrow Fee - (Typically it's a fee shared with the buyer)
4. Natural Hazard Disclosure Report - NHD
5. HOA Transfer Fees - (If you are in a Condo, PUD or Association)
6. 1-Year Home Warranty
7. Termite Inspection
8. Drawing of Deeds
9. Misc. Fees

Realtor Commission
Depending on the negotiated realtor commission you will be paying 5-6% of the purchase price. You as the seller typically pay all of this fee. Depending on the your state, these fees may vary. Don't skimp on these fees. Remember 1/2 the Realtor Commission goes to the buyers agent. A listing with low commission rates may give the buyers agent an impression you aren't easy to work with or the agent may not show your home to prospective buyers. Starting off on a good foot with the right impression is a winning strategy to start with.

Additional Fees to consider:
1. Property Taxes Owed
2. Mortgage Loan Balances
3. Interest Owed on Loans
4. HOA Dues Owed (If you are in a Condo, PUD or Association)
5. Costs for Repairs - Termite, Home Inspection results

If you are considering selling your home, ask your realtor to get you a Sellers Net Sheet from a Title & Escrow company. This sheet will give you actual costs associated with each of the itemized fees I have in this Blog.  Once you get the numbers together you will have a better understanding of what your bottom line will be. When you are ready to put your home on the Central Coast Market, give me a call to discuss getting a Net Sheet and starting the process. I'm here to help!

Please leave a comment if you feel this was helpful. Or share this with friends and family. I always appreciate your referral business.

"I'm Your Central Coast Listing Agent!" Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Savvy Buyers are looking for High-Impact Homes For Sale!

Savvy Buyers are looking for High-Impact Homes For Sale!

Even in low-inventory markets like San Luis Obispo, today's buyers are looking for High-Impact amenities in homes.
Here's how can you catch the eye of savvy buyers with these additions to your home that are affordable and have maximum impact.

• Add USB outlets in areas of the home that don't typically have USB ports. Many people use their computer all over the house. Adding outlets in the kitchen, bathrooms and bedrooms are convenient will also appeal to the younger tech savvy buyer.

• Update wiring for a flat screen TV and internet on a wall of the living room. Most buyers have flat screens that will be mounted on the wall. Give them the ease of moving in without having to do this part themselves.

• Make a small kitchen look bigger by adding mirrors at the back splash area to bounce light and dimension. Or add some additional prep space by adding an island or island on wheels. You only need 30" in between the counter and an island. Having this option is always appealing to buyers.

• Replace door knobs and front door hardware to give the house a fresh and newer look. Choose a style that is in keeping with the style of your home and replace them. This fix can be done by you in under a couple of hours. It's money well spent!

I hope these suggestions were helpful and add to your ideas of how to get your home ready to sell with the highest impact.

Please leave a comment if you feel this was helpful. Or share this with friends and family. I always appreciate your referral business.

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

How To Determine the Price of Your Home

How To Determine the Price of Your Home

When your home is on the market you have one chance to make a first impression with your listing price. Make your best effort to price it to sell!

When choosing the final listing price number,  lean on your realtor to help you on the market is for your type of home. Is the market going up or down and why. Your realtor will help with establishing unique amenities your home has to market the property to get the best price. Your realtor can also give you comparable property reports (CMA) to show you recent sales activity.  Properties that sold in your area that are similar to your home are the best indication of where your home should be priced.

In the end you determine what you want to list your home for. Your realtor is your professional advisor to the current market. Taking their advice will get your home sold quickly and for top dollar. If you over price your home your home may become stale and people may think there's something wrong with your home. Not the impression you need to sell your home for top dollar.

Start out strong and you will be happier with the results and better off financially.

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Mortgage Impound Accounts - Q&A

Mortgage Impound Accounts - Q&A

I recently got a question from my buyers Alison & Matt who are the process of getting their first home in Atascadero.  She asked me:

Hi Traci!!  I had a quick question for you.  So I've been talking to a few people and we are questioning whether we really want to build our property taxes into our monthly mortgage payment.  I'm wondering if it's better for us to just budget that amount and move it into our savings (which earns interest) and just deal with paying it twice a year (I don't remember what it was).  I guess I would be more concerned about paying it if we didn't have a lot in savings.  My thought's are that it would make our monthly payment a lot more manageable and we could earn a little interest on the money as opposed to paying it with our mortgage. What do you think?    - Thanks!  Alison

My advice to Alison is if your lender is giving you the option to add it to your mortgage payment or not, do what you feel most comfortable doing. Some lenders don't always give you this option especially if you are putting  less than 20% as your down payment.  Adding your property taxes to your mortgage payment is called a Mortgage Impound Account.

Alison is right, she can save the money and build a small amount of interest on the money before she makes her payment. That interest is taxable money, so some may argue it's not worth the hassle of saving in a separate account accruing interest because you're taxed on it anyways.

By having an impound account many people enjoy the peace of mind knowing there is one less bill to worry about and that it's paid automatically. That's the no hassle situation.

Choose what makes the most sense for your situation, is my advice to Alison and to you.

Let me know if you have any questions about anything real estate related. I'm here to help!

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

The Future Of San Luis Obispo Housing

The Future Of San Luis Obispo Housing

There will be a Central Coast housing Market Shift in the next coming 20 years. As baby boomers and their echo boomer children become homeowners, they will significantly effect the housing market. Echo Boomer children will make up approximately 65 million people born between 1981-1995. This will create a demographic challenge and opportunity.

The aging baby boomer population will swell the nation's senior population by 30 Million over the next 20 years. Typically people over the age of 65 are releasing more housing than they are absorbing, this demographic shift will help to increase the supply of housing. Currently we have a lack of affordable housing available for them to buy. With the economic downturn home construction was halted for over 7 years, creating a deficit in housing currently. With interest rates at record lows and banks wanting to lend money, buyers are competing for purchases on available homes on the market.

Generation Y, the Millennial Generation, Generation Next, Millennials, Net Generation or Echo Boomers. Whatever you want to call the world’s largest collection of twenty and thirty-somethings, they are coming to a town near you.

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

How Much Home Can I Afford?... So Play House

How Much Home Can I Afford?... Play House

I am a very big fan of Money Queen Suze Orman. On one of her recent shows, she had a wonderful idea about figuring out how much home can a new buyer afford. Today I'm going to give you the tools to figure that out by "Playing House."

Step #1
* Choose how much home you want to buy.
* Only start this process if you have 20% down on this home of your choice.
* Go online and use a mortgage calculator and online resources to figure out the following monthly expenses:
       1. 30-year fixed rate monthly mortgage payment
       2. Monthly Property taxes
       3. Monthly Association Fees, (If it's a Condo, Mobile Home or PUD)
       4. Monthly Home Owners Insurance
       5. Monthly Home Maintenance (Yard, Periodic Painting, Termite Repairs, Roof, etc.)
*Total up all the costs for items 1-5, under step #1, and this will give you the total monthly cost of owning the home.

Step #2
* Use your total at the end of Step #1 and subtract it from the monthly rent you currently pay. This will give you the additional amount you currently would have to pay for a home of this price.

Step #3
* Start saving the additional amount you figured out at in Step #2 for 6 months.
* This will help you see what it feels like to own your own home.
* If this amount is too difficult, then you are purchasing too much house.
* If it's easy, you now have 6 months of saving to use towards your closing costs and down payment and you should call your favorite realtor, me, to begin your home search.

I hope this was helpful! This will also help you see if renting is comparable to the monthly cost of buying a home in this current market. Please comment below to give me feedback on this blog post.

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082

Refinancing to a Shorter Loan Time Frame

Refinancing to a Shorter Loan Time Frame

Changing the length of your mortgage time frame can save you big money. Interests rates are still very low and if you haven't reaped the benefits of Refinancing your home to a 3.5-4.5% interest rate, Do it! Many people refinance their home with another 30 year loan. But while you are talking to your lender, see if choosing a shorter time frame on your loan may save you money and possibly keep your payments close to where they are now.

 
I know you like examples like I do and I think this paints a vivid picture:
A current loan on your home of:
$400K at 5.75% interest for 30 years is $2,334.29 monthly

Refinancing the same amount for a lower interest rate and shorter terms looks like this:
$400K at 3.75% interest for 20 years is $2,371.55 monthly.

By adjusting the interest rate and the length of your mortgage you are paying almost exactly the same amount monthly, but the 10 years you took off the loan time frame has saved you over $271,172.13 in interest payments. $ 97,713.67 was saved in interest by doing a 20 year loan and $173,458.46 was saved by refinancing to a lower interest rate.  Isn't that Incredible!

Use my mortgage calculator to see what your monthly payment could be with a shorter time frame. Talk to your lender today to see if you qualify to do a refinance and if you can lower your length of the loan. Contact me if you need a lender referral. You will save yourself Mucho Dinero!

Remember, I'm always available for any of your referrals. Contact me today!

"A Realtor that knows homes." Traci Ferguson 805-235-6396 traci@traciferguson.com http://www.traciferguson.com License #01875751, ecoBroker #16082