Home Repair and Upgrades that Improve your “For Sale By Owner” Home Value

Inheriting a home from a loved one is not always ideal for the recipient.

Last Will Testament, Selling an Inherited Home in MN

 

But the chances of it happening are higher than ever.

 

In fact, according to Accenture, $30 trillion worth of wealth is expected to pass from older generations to younger generations over the next 30-40 years.  And you can expect that property will make up a large part of that transfer of wealth.

 

As a result, there’s a high probability that your parents or other close relatives will leave you their property when they pass.

 

Deciding what to do with an inherited home can be overwhelming, especially if you don’t want to move in or become the landlord of a rental property.

 

If you inherit your loved one’s home and are thinking about selling, here are some helpful tips to guide you through the process of selling an inherited home in MN for a profit, without all the headache you might expect to come from the process.

 

The Best Way to Sell an Inherited Home in MN

 

Selling Inherited Home in MN

1. Start Right Away

Grieving the loss of a loved one while trying to sell an inherited home, can be overwhelming to say the least.

 

But the truth is, the sooner you start, the better.

 

You have a lot of work ahead of you if you want to sell an inherited home in MN for a profit.

 

And, while we’ll explain the process in more depth in this article, you should also know that you’ll be responsible for:

 

 

And lastly, you’ll have to close on the deal before your inherited property is finally off your hands and you can move forward.

 

Just remember, an inherited property must go through probate before you’re allowed to sell it.

 

Most states will let you rush the probate process so that legal representation isn’t required, but only if the property in question is worth very little.

 

If your property is worth a lot, you’ll have to wait for the executor of the will to distribute your loved one’s assets and settle all the estate’s debts.  This only gets more complicated when siblings are involved, as you’ll need their permission to sell.

 

2. Get Some Tax Help

Selling an inherited home isn’t as easy as selling your primary residence.  In fact, there are many complicated factors that play into how selling an inherited home will affect you financially.

 

Understanding Inheritance Tax When Selling an Inherited Home in MN

 

When it comes to selling your inherited MN home, be aware of these tax implications:

 

  • Estate Tax. Minnesota has an estate tax for estates valued at $2 million or more. This tax falls on the estate of the person that passed away. Anything that’s left over is given to inheritors. The maximum estate tax in MN is 16%.
  • Inheritance Tax. There is no inheritance tax in MN. If there were, it would fall onto the heirs and beneficiaries, not the estate of the person who passed away.
  • Federal Estate Tax. This tax falls on the estate of the person that passed away. The exemptions are extremely lenient, though you should consult a tax specialist to make sure you don’t owe federal taxes.
  • Income Tax. Since MN doesn’t consider inherited property as “ordinary income,” you may not owe income tax on the property you inherit. You still have to report earnings to the IRS, though, which is important to know.

 

As you can see, there are many tax implications that play into selling an inherited home in MN.  Getting professional, legal advice is always going to be your best option.

 

3. Assess the Property

Depending on how your loved ones maintained and upgraded the property, you may have a lot of work ahead of you to make a profit from selling it.

 

You should first plan to clean out all personal belongings.  Keep what you want (or dole out belongings according to your loved one’s will), throw out what’s no good, and sell anything that’s leftover.

 

Then, evaluate the property’s condition to see where it stands as is.  Is it in good enough condition as it stands to generate a profit if you sell right away? Will it need extensive renovations?

 

If this is something you’re considering, contact Homestead Road.  We specialize in buying homes as is, for the biggest all-cash offer possible.  We make the process of selling an inherited home in MN painless, so you can move forward with your life.

 

If you don’t want to sell your home as is, talk to a real estate professional to help you decide things like:

 

  • What upgrades are needed to be competitive in the current housing market
  • How to stage the property for showings
  • What purchase price to set the home at (you may want to consult with a local appraiser)
  • How to advertise the property as available

 

In addition, a reliable real estate professional will help you through the process of paying off any existing mortgage or other debts associated with the property.  This way, you can avoid mortgage trouble and other financial setbacks.

 

And remember, just because you’re selling a home you’ve inherited doesn’t mean other expenses cease to exist.

 

For example, you’ll still be responsible for utility payments such as water, sewer, electric, trash services, gas, and more.  You’ll also need to make sure the landscaping is maintained so it’s ready to show to prospective buyers.

 

4. Get Insured

You never know how long the process of selling your home will take.  Unfortunately, most insurance companies don’t care about your individual circumstances.  As a result, they’ll stop insuring a property after 30 days of it being vacant.

 

While this may not seem like a big deal to you (after all, you cleared the house out and no one lives there), the truth is, vacant homes are more susceptible to damage, break-ins, theft, and even squatters.

 

Look into some affordable vacant home insurance to protect your newly inherited property and yourself, just in case.  This is especially true if you plan to invest in renovating the property so you can sell it for a higher profit.

 

In Closing

How to Sell an Inherited Home in MN

 

If you’ve inherited a home from a loved one, and are looking to sell it for a profit as fast as possible, contact Homestead Road.

 

You’ll receive a free, no-obligation assessment of your inherited home so you know what the best option for you is.

 

Losing a loved one is hard enough.  Don’t get stuck with an inherited home just because you don’t know what else to do.  You’ll find that selling an inherited in MN can be a quick and easy process if you educate yourself and get the right team of people helping you.

handing over of a model homeBuying a home is an exciting adventure – but it can also be a tedious, stressful process. You probably remember every form and every step you had to deal with just to get the house you’re living in right now. But, did you know that selling your home can be just as taxing?

In 2017, Zillow, an online real estate database company, surveyed recent sellers about what stressed them the most when they put up their house on the market. The survey found that the top three things the sellers worried about were:

  • Selling their house within their desired timeframe
  • Selling their home within the price range they set
  • Timing the sale to coincide with the purchase of their new home

Some participants even placed the stress of listing their house for sale on the same level as dealing with bankruptcy, divorce, and healthcare issues. Here’s good news, though: there are several strategies you can do to make home selling a less stressful experience.

1. Start the Process Early

Listing your home is, indeed, a process. You can jumpstart it by doing meticulous research and careful planning of the sale. This way, you’re more prepared to resolve any issue that may come your way. Plus, one thing sellers underestimate is the time they need to shift their perspective from that of a homeowner to that of a home seller — which is also why it is helpful and vital to begin the entire selling process early.

2. Depersonalize

Some sellers refuse to move their personal items out of the house even when it is already listed. But when your home is on the market, it becomes an item for buyers to purchase. As such, you need to help potential buyers picture themselves living in your house for sale. Start with removing family photos, mementos, and personal care products. Also, convert rooms back to their original purpose. For instance, if you turned a bedroom into a home office, revert it to fulfill the function for which it was intended, in the first place. Buyers may appreciate having an extra room over a home office, after all.

3. De-clutter

When moving to a new home, you will likely need to get rid of a few things. You might as well take care of those before putting your house on sale. This way, you have fewer things to clean and put away before house showings, especially on short notice.

4. Be Strategic If Selling and Buying at the Same Time

If you’re listing your present home to gain funds to buy a new one, the timing can be a serious stressor. Sit down and strategize to achieve the perfect timing. Make sure to consider your financial situation and the state of your local real estate market while coming up with a plan. Also, think about selling your home as is. This strategy ensures a stress-free home selling experience, as you don’t have to repair your house or even deal with the hassle of multiple showings.

With these tactics, you no longer need to ask, “How can I sell my home fast?” Keeping your house clean and presentable can attract potential buyers who can purchase your home at the price you want, within the timeframe you desire. And if you go to the alternative route of selling your house as is, you can even skip all the stressful steps of home selling.

Want to know more about smooth, flawless home selling experience? Give us a call today.

curb appeal of a home

There are many factors to consider when selling your home. You need to consider the local market conditions, find a reliable real estate broker, and set the right price for your home, among other things. Needing to sell your house fast for cash can make the process more challenging than usual.

Homeowners may forget to factor in the season when selling homes. Considering each season and how it can affect your property and target market can help facilitate a faster sale.

Peak Curb Appeal in Spring

Spring is one of the peak seasons for the real estate market. You’ll be able to price your house higher than any other season but also experience stricter competition. Spring sees more people looking to buy houses than any other season. You’ll have to work twice as hard in staging your home to stand out from the crowd and close the sale.

Leverage the inviting spring weather and the blooming plants to attract more potential buyers with your curb appeal. Apart from investing in colorful flowers and lush trees, highlight any outdoor social features your house may have, such as decks, patios, and pools.

Long Days of Summer

Summer is the second half of the real estate market’s peak season. You’ll still be able to price your home higher than average. Despite this, some experts advise against selling during summer. After all, more of your potential buyers will be out on holiday.

There is an exception to the rule. If the property you’re selling is a vacation home or one near beaches or tourist attractions, you may find yourself entertaining a higher number of interested buyers. The longer days of summer makes it possible for you to accommodate more showings in a day, as well.

Picturesque Fall Foliage

The beautiful colors of fall make it an ideal time to take appealing photos of your home. These can make your property stand out more on both online and traditional listings. The fall foliage doesn’t last long, however. So, if you’re looking to sell your house fast, it’s better to put in more effort towards the start of the season up to the middle, when the trees still have their leaves.

The end of the real estate peak season means you’ll have fewer sellers to contend with, making it easier to find serious buyers. Take note, though, that the same will be true regarding buyers; you’ll find your pool of prospective buyers a little wanting in the fall.

Show off Efficiency in Winter

The shorter and colder days of winter makes it harder to market your home to prospective buyers. Still, you can use the weather to show your home’s heating efficiency. Moreover, more people are job hunting and or starting new jobs during January and February, which may open your target pool to include relocating employees.

If you’re looking for a faster and easier way to sell your home, contact Homestead Road today. Our team will give you a free, no-obligation house assessment and help you sell your home “as is” for cash. You can skip the trouble of dealing with house staging, showings, and listings with Homestead Road.

Woman packing stuff

Depersonalization is one of the most important steps you need to do when preparing your house for sale. When you depersonalize your home, you eliminate your personal tastes and neutralize the space inside your home. This process is important, as it allows your potential home buyers to visualize your home as their new house.

If you’re planning to depersonalize your home for your buyers, keep these things in mind.

Take down Personal Photos

Remove all personal photographs, paintings, and other images set on the countertops or walls. Although these pictures may hold a special place in your heart, they serve as distractions for your homebuyers. If you need to keep a few pictures to prevent your walls from looking too bare, leave a couple of photos that are not inherently personal. Good examples include a close-up of an interesting architectural detail or beautiful landscape pictures you took on your last vacation.

Pack up Your Personal Collections

Most homes highlight some sort of personal collection. If you have a stuffed animal collection, a book collection, or any other type of collection, store them to prevent them from distracting the attention of your buyers.

Remove Prized Trophies and Other Awards

Although you may be proud of earning those trophies and awards, your potential buyers are not interested in your achievements. So, take them down and pack them along with your personal collections.

Clean Your Refrigerator

It’s important to clean both the inside and outside of your refrigerator. If you have magnetic stickers, birthday cards, sticky notes, and other personal items on the fridge, get rid of the clutter as soon as possible.

Take out Potentially Offensive Material

You may have materials inside your home that may not be off-putting to you, but could be offensive to a potential homebuyer. Remember that you’ll have a wide range of people and personalities who will check out your home for sale. Make sure you think about the things that could offend your guests and hide them immediately.

Depersonalize Your Bathroom

The bathroom is one of the areas in your home that is likely to have a lot of personal items. When depersonalizing your bathroom, the rule of thumb is to get rid of every personal item on the counter, shower, and bathtub. Don’t let your guests see your toothbrushes, bathrobe, makeup, and other personal care products. Instead, leave behind a few decorative items, such as bath salts and candles.

Paint over Funky Colors

If you’ve painted your home with funky colors, such as butter yellow and passion pink, it’s best to paint over these colors with something neutral. A few of the neutral colors you can go with are light gray, off-white, and beige. Going for neutral colors can help you present a blank canvas to your prospective buyers.

If you would like to sell your home fast, don’t hesitate to turn to Homestead Road. We purchase homes in the Minneapolis area as-is for cash. When you sell your home to us, you can expect to work with a trusted company that’s upfront in all of its transactions.

Get in touch with us today.

Getting divorced is not easy.

And unfortunately, one of the biggest issues facing people on the verge of divorce is what to do with their home.  This is likely the biggest asset you and your spouse own together.

Your marriage is ending and the last thing you want is the burden of financial problems during your divorce proceedings.  However, that does not mean the mortgage you and your spouse have together will go away any time soon.

Breaking Up Minnesota Family Can't Afford a Mortgage Due to Divorce

If you and your spouse are beginning divorce proceedings and have a mortgage together, there are some important financial decisions you’ll need to make about what to do with the family home.

This is especially true if keeping the property is not an option for you because it’s too expensive.

Luckily, we’re here to share some of the best options available for when you can’t afford your mortgage due to divorce.

 

Why Owning a Home and Getting Divorced Is Complicated

Owning a home and going through a divorce only complicates an already messy situation.

Can't Afford a Mortgage Due to Divorce in Minnesota - Decree

Currently, the divorce rate in America hovers around 40-50%.

As a result, many people are faced with making tough housing decisions.

It’s possible the home you bought when you got married might become a valuable asset during your divorce.

However, it is also possible it can be a major liability if you can’t afford the mortgage on your own.

Things like home equity, credit scores, employment statuses, and whether children are involved all play a role in who gets to keep the house.  However, the truth is, if the mortgage is too high for either party to afford, something must be done quickly to avoid a financial mess such as a foreclosure.

Here are the best options available to you if you can’t afford your mortgage due to divorce:

 

1. Negotiate with the Bank

There are some bank-related options available to you if you’re going through a divorce and find you can’t afford your mortgage:

  • Talk to Your Bank.  If your bank knows you are on the verge of losing your home, sometimes they’ll negotiate better rates and lower monthly payments to help.  After all, if you lose the house, they are on the hook for the loss, too. Banks don’t want to give in to everyone that needs help, but they don’t want to lose more money than they need to either.  Therefore, your bank may be able to offer options to make your mortgage more affordable for you.
  • Apply for an FHA Loan as a Second Mortgage.  If you know you can’t afford the mortgage on your home now, but want to in the future, you may be able to get an FHA loan as a second mortgage to help.  You could negotiate a 3-12 month respite from the bank in order to get back on track and keep your home.
  • Deed in Lieu of Foreclosure.  If you know keeping your home is unreasonable, try asking the bank to do a deed in lieu of foreclosure.  You give them the deed to your house to sell for whatever they feel it’s worth to satisfy the loan that is in default, and you walk away without having to undergo foreclosure proceedings.  This one will hurt your credit but is a quick solution when you need to free up extra cash fast and move on from a divorce.
  • File for Bankruptcy.  This is never something you want to> consider, but it can be a good idea if you’re stuck.  Bankruptcy not only frees you from any financial obligations related to your house but other debts as well.  Plus, as the process moves forward, you can live in your home mortgage-free until a foreclosure takes place. Of course, this will harm your credit for a long time, but sometimes there’s no other choice.

 

Short Sell the Home

If you’re stuck in your divorce proceedings and know that selling your home for a profit is not going to work, you might consider a “short sale.”

When you short sell your home, the mortgage lender agrees to let you sell the home for less than it’s worth. They then cancel any remaining debt you have on it.

As a result, you can be rid of your house and the mortgage, without having to come up with the rest of the loan amount.

The problem is, this will affect your credit for quite some time, and has the potential to cost you a lot when it comes to doing your taxes.  This is because the IRS sees debt cancellation (even in the case of a short sale) as added income that is taxable.

 

2. Have Your Ex Take over the Payments

If you determine that you can’t afford your mortgage after divorce, it might be worth having your spouse take over the payments.

In order for this to work, your ex must qualify to refinance the home under his or her own name.

If your spouse fails to make the payments, even after the divorce, and your name remains on the mortgage, you are both liable for the mortgage each month.

That means any missed payments fall on you, which obviously defeats the purpose of handing the house over to your ex in the first place.

Not to mention, if you ever want to buy another home under your name in the future, having that existing mortgage hurts your chances of qualifying for another loan.

It may even hurt your credit enough to prevent you from renting a place, which puts you in a bind.

No matter how trustworthy your ex-spouse is if you decide to hand your home over to them, make sure they refinance it in their name only.

 

Beware of the Quitclaim Deed

Can't Afford a Mortgage Due to Divorce Quitclaim Deed in Minnesota

It may sound appealing to sign a quitclaim deed in the midst of a divorce so you can get out of your mortgage quicker.

This is especially true if your spouse wants to take over the home but can’t qualify to refinance it on their own because they don’t have enough income, have a poor credit score, or there’s not enough equity built up in the home.

But there are some things to be aware of before you sign such a serious document.

Quitclaim deeds are written documents designed to transfer ownership of a property to another person. So, in the case of your divorce and your home, you would be signing over ownership of the house to your ex.

More importantly, just because you sign a quitclaim deed, doesn’t mean you’re off the hook when it comes to missed mortgage payments.

Plus, if you do sign one, you give up any right to sell your home or make any profit from it in the future.

In the end, a quitclaim deed doesn’t remove your name from the mortgage.  It only helps your ex take over the home on their own, leaving you with some responsibility.

Not to mention, it leaves them the option to refinance in the future if they qualify or sell the property at any time they want.  And they’ll pocket all the profit.

If you really want your name off the mortgage and want to be completely free of the financial obligations, you’ll want to have your spouse legally assume the loan, sell the property, or have the mortgage refinanced in only your spouse’s name.

 

Consider a Loan Assumption

Though rare these days, it is possible to have your spouse assume the current loan on your home if they don’t qualify (or don’t want to pay) for a refinance.

Sometimes your mortgage lender will let one spouse assume the entirety of the loan, freeing you from any legal or financial obligations.

Your ex would still have to prove they are able to make the monthly mortgage payments and show a history of good credit.  But it can be done.

Keep in mind, however, the interest rate on an assumed loan is typically high and your ex may not be okay with that.

 

3. Rent Your Home Out

Renting your home allows you to handle the more emotional side of getting divorced, get your other financial affairs in order, and let your home build up equity, should you decide to sell for a profit in the future.

That said, renting a property comes with a lot of added responsibility that you and your ex will have to agree to handle together:

  • Marketing of the vacant property
  • Tenant screening, placement, and lease drafting
  • Rent collection
  • Maintenance and repair issues
  • Routine property inspections
  • Legal proceedings
  • And much more

 

4. Co-own the Home

This may seem like a crazy solution to your divorce headaches, but sometimes co-owning the home you bought with your spouse is a good idea, especially if you have children.

It’s also a helpful solution for times when neither you nor your ex can afford the house on your own after the divorce.

That said, co-owning your home with your ex is most likely to happen when one person wants to offer a buyout of the property at some point, but can’t in that moment.

As a result, both parties agree to co-own the property, let equity build up, and deal with the transaction when things are better.

The key to this strategy involves work on both sides.  You must:

  • Know that you and your ex can live together in the home until a buyout occurs
  • Be ok with not living in a house you co-own (if you and your spouse can’t live together)
  • Have a set payment plan in place to push the buyout process forward and prevent it from stalling
  • Know that any missed payments will fall on you, even if you aren’t living in the property
  • Understand that your credit history will show the entire mortgage amount until the buyout is finalized, which can hurt you when it comes to renting or buying on your own
  • Understand your legal rights and obligations, as co-ownership is a way to legally own a house with someone else as business partners, rather than as a married couple

Keep in mind that co-owning your home will keep both you and your ex on the original lender agreement.  And despite what you and your ex have agreed to, if any missed payments occur, the lender will hold both of you responsible for those missed payments.

This is even true if you have a divorce decree stating the terms you and your ex have agreed to when it comes to house payments.

The bank only wants to get paid; they don’t care who is the one that’s supposed to do it or how it happens – they simply just care that the payments are made.

 

5. Sell Your Minnesota Home on the Market

Sometimes selling your Minnesota house is the best option when you realize you can’t afford the mortgage after divorce.

This is especially true if your house has equity in it.  If that’s the case, it can be sold for a profit and the profit can be split among you and your ex.

Take a look at these common scenarios and see if any of them sound like you:

  • Your house is more expensive than you thought, especially after calculating things like the mortgage payment, insurance, property taxes, alimony or child support you owe, utilities, and other living expenses
  • You don’t qualify to refinance the house because the divorce damaged your credit or you lack enough credit history because you’ve been relying on your spouse’s credit up until now
  • Neither you nor your soon-to-be ex can agree on who gets the house
  • You owe much more on your home than the home is worth and can’t cover (or don’t want to cover) the monthly payments
  • Both names are on the mortgage, but your spouse has stopped paying their half and you can’t keep up with the full payments

If any of these situations apply to you, it’s time to think about getting out of your mortgage as soon as possible by selling fast.

This way, the proceeds from the sale can cover the existing mortgage and each party can split what’s leftover in the divorce decree.

You can then move forward and deal with the emotional effects of your divorce, without having to worry about continuing financial hardships

 

6. Sell Your Minnesota Home As Is

Sometimes selling your house in the traditional way ‒ using a realtor and the existing market ‒ presents  hardships such as:

  • Having to hire an experienced real estate professional to market and sell your home fast
  • Needing to perform costly home improvements, renovations, and repairs
  • Getting behind on the mortgage during divorce proceedings
  • Trying to figure out a way to sell a home you owe more on than it’s worth

Can't Afford Minnesota Mortgage Due to a Divorce Refinance Sheet

Because of this, opting to sell your home as is, with the help of a caring and compassionate investor experienced in moving the process along as quickly and painlessly as possible, is often the best decision you can make.

A home buying company like Homestead Road can provide real results when it comes to selling your Minnesota home as is:

  • Receive an accurate home evaluation so you know what your house is worth if sold as is
  • Don’t fret over things like realtors, showings, banks, commissions, or fees
  • Never worry the home won’t sell ‒ we’ll buy your house as is for a competitive price, no questions asked
  • Don’t worry about having to short sell your home, which can harm your credit and net you far less than the home is worth
  • Hand your home over without having to make repairs, remodel, or even clean
  • Know that your family and divorce situation are at the forefront of the transaction

 

If you’re looking for a quick way out of your mortgage, but don’t want to deal with the hassle of selling yourself, contact Homestead Road today to sell your house as is fast.

We’ve helped many people navigate property during divorces and strive to always make the process as easy as possible so you don’t have to worry about a home that is on the verge of foreclosure.

 

Final Thoughts

Ending a marriage is a tough thing to do.  And unfortunately, dealing with the emotional and financial fallout of a divorce is not only stressful but also can have serious, long-term effects on the rest of your life.

If you and your soon-to-be ex-spouse own a home together, it won’t matter to your mortgage lender why you’re divorcing.  It also won’t matter why you can’t afford to keep paying for your house long after the divorce decree goes through.

There are plenty of unique ways to get out of a mortgage you can’t afford due to divorce.

However, for those seeking quick relief, cash upfront to move forward in life and a way to prevent a foreclosure, the best option is to sell your Minnesota home as is.

With a trusted company like Homestead Road ready to give you a fair cash offer on your house as is, you can get rid of your mortgage and pick up the pieces of your life after divorce.

Don’t let a major life change like divorce get in the way of your financial freedom or peace of mind.

Request a no-obligation cash offer on your home from Homestead Road today, and move onto the next stage of your life without the stress of home owning problems to drag you down.

 

selling-minnesota-home-fast

Table Of Contents
The Status of the Real Estate Market Right Now
Top Reasons You May Need to Sell Your House in Minnesota Fast
When to Sell Your House
Factors Influencing Whether You’ll Sell Your House Fast in Minnesota
How to Prepare Your House to Sell Fast in Minnesota
The Best Ways to Sell Your Minnesota House

 

Needing to sell your home fast in Minnesota can be a challenge.

 
After all, you’ll have to whip your house into selling shape, find a reliable real estate agent to work with, market your house to the right target audience, and hope that someone becomes interested and actually buys your place.
 
However, because time is of the essence, you may find yourself having trouble finding a buyer willing to pay the asking price of your home. Not to mention, who knows what the market will be like at that very moment.
 
Seemingly changing every day, will it be a seller’s market? Or a buyer’s market?
 

Either way, if you need to sell right away, it won’t matter what the market is doing, you’ll just have to find a way to sell.

 
To help you figure out how to sell your Minnesota house fast, we are giving you the complete rundown with this guide. That way, no matter what situation you’re in, or what situations you run into, you’ll know exactly what to do to sell your home fast, and move forward with your life.
 

infographic-ultimate-guide-sell-mn-house-quickly

(Click to Enlarge)

 

The Status of the Real Estate Market Right Now

Although time is not always on your side when it comes to selling a house fast, it’s good to know that as of right now, it’s definitely a seller’s market.
 
Hard to believe, right?
 
Well believe it. Since the housing crash of 2008 when housing prices fell a record-dropping 12.4%, the market has jumped up an impressive 11.4%. This raised the median house price to $210,200 (up from $180,100 in 2008).
 
And that’s just the median house price for today. Who knows how high it will be in the months to come.
 
real-estate-trends-increasing-fast
 
Adding to this, the National Association of REALTORS® reports 5.51 million existing homes were sold in 2017. And, despite a small dip in those numbers during the first two months of 2018, statistics are showing that the market is on the rise again.
 
Even states in the Midwest (who saw a 2.4% decrease in home sales in the last 12 months) are seeing things turn around in favor of the seller.
 
Want to know more? Check out these recent housing market trends in the United States:

  • The Midwest is seeing a median home price of $179,400
  • First time buyers made up approximately 29% of all home sales in February
  • All-cash sales made up 24% of all sales in February
  • The average time a property stayed on the market was 37 days, down from 45 days in 2017

And to narrow it down to your particular region, check out these trends specifically related to Midwestern states such as Minnesota:

  • Millennials are expected to make up 42% of the buyer pool in cities such as Madison, Wisconsin; Columbus, Ohio; Des Moines, Iowa; and Minneapolis, Minnesota
  • Inventory is down nearly 11%, making it harder for people to buy, and easier for people to sell
  • Housing prices in Minneapolis are four times greater than median household incomes, making it harder for people to buy starter homes (though not stopping them from doing it)
  • The average home price in Minneapolis is now at a record-breaking high of $246,000, which is $16,000 higher than the previous record

However, many sellers think that because inventory is low and demand is high, that selling their Minnesota home fast is not going to be difficult to do. But that is far from the truth, especially if they have to sell right now.
 
There is much more to selling your home fast than knowing the current state of the housing market.
 
Selling a house, no matter what state the market is in, takes a lot of time, money, and effort. And sometimes when you are desperate to sell your house immediately, you don’t have the time, money, or desire to put in all that effort.
 
In fact, it’s times like these that you’ll find yourself needing more help than ever.

 

Top Reasons You May Need to Sell Your House in Minnesota Fast

There are many reasons why you might find yourself needing to sell your Minnesota house fast.
 
In fact, you might even consider selling your house as is, so that you can unload it as quickly as possible and move on.
 
Let’s look at the reasons that would force you to have to sell your Minnesota house fast, so you can identify your specific situation and make an appropriate plan going forward.

 

Financial Crisis

sell-home-fast-during-financial-crisis

It can happen to anyone.
 
Maybe you lost your job. Maybe you experienced a medical emergency that put you behind on your bills, including your mortgage. Maybe your less-than-great money management skills have finally caught up to you.
 
Regardless of the reason you’re in a financial crunch, what matters now is that you need to sell your home as quickly as possible so you can get into more affordable housing and decrease your debt.
 
Don’t let mortgage trouble get the best of you. Consult with professionals if you need help selling your home fast.

 

Relocation

Being promoted at your job, or simply getting a new job altogether comes with lots of excitement.
 
But you’ve got a big problem on your hands: timing.
 
It can be hard to sell your Minnesota house at the exact moment you need to relocate for your new job. In fact, it can be impossible at times, depending on when you are due to start your new job.
 
Rather than miss out on a great opportunity, or risk getting in trouble at your new job, get a fair cash offer on your house as soon as possible and move on to bigger and better things, hassle free.
 
This way, you won’t have to deal with finding a real estate agent, staging your home, and finding prospective buyers, all while preparing for your new job.

 

Lack of Resources

Selling a home often requires additional expenses for homeowners.
 
Many buyers today have high expectations for the homes they would consider making an offer on. As a result, turnkey properties attract the most interest.
 
However, like many sellers, you may not have the extra time or money needed to renovate your home – after all, you’re trying to save as much as you can to purchase your next home. Or perhaps you are concerned about investing in renovations that might not actually bring in the same return as what you spent on them.
 
In such situations, many homeowners struggle to decide whether to invest back in the house that they want to leave, or drastically reduce the asking price in order to get an offer.
 
Fortunately, there is another option that you may not have considered yet.
 
Selling your home to a professional real estate investor means that you’ll be able to get a fair offer on your house, without the hassle of having to renovate it first.
 
And, because most real estate investors already have the funds available to purchase your home, they are often able to close the deal quickly – making it a great reason to sell your house fast.

 

Lack of Buyers

sell-minnesota-home-fast-few-buyers

Has your house been on the market for some time, with no interest from homebuyers?  
 
If so, you might want to sell your house for cash fast so that you can at least get some money for it. After all, an empty house sitting on the market does you no good financially.
 
If you’ve been using a real estate agent to help you sell your house, and haven’t received any offers, it’s time to contact real estate investors, such as ours at Homestead Road, that will give you the highest cash offer possible and make getting out of your Minnesota home a breeze.
 
This way, you can get a fair offer on your house today, receive the cash in hand, and be done with the whole house selling process now.
 
 

You Can’t Pay For Two Houses At Once

Perhaps you’ve had your eye on a certain house that just became available.
 
Now imagine the headache that is going to come with trying to sell your current Minnesota home at the same time you’re trying to buy this new house.
 
If the house you’ve been eyeing has just been put on the market, chances are other people are going to be jumping on the listing as well.
 
But the truth is, there is really no way to perfectly time selling your current house and buying a new house at the exact same time.
 
And because of this, you face many problems:

  • Not having the money to put down on your new house because your current house is still for sale
  • Successfully buying the house you want, but having to pay two mortgages because your other house hasn’t sold yet
  • Not knowing how much money your current house will sell for, making it harder to budget for things like a down payment on your new house
  • Trouble getting a mortgage on your new home because your current home is still on the market
  • Having to consider renting your current home until it sells (especially if the market is down), which comes with a whole new set of struggles

Avoid all these hassles by requesting a free, no-obligation cash offer on your home today.
 
By doing this, you’ll know exactly how much money you have to work with when your current house sells, so you can concentrate on grabbing that new home without any worries.

 

Home Inheritance

If you’ve recently inherited a home from someone close to you, there’s a chance you might want to get rid of it as soon as possible.
 
Perhaps the inherited home is too far away, not the right size, or simply not your taste. Perhaps you already own your own home and simply aren’t in need of another home. Or perhaps you need the money from the sale of the house to go toward new expenses.
 
While Minnesota does not have an inheritance tax, an estate tax is levied on estates exceeding $1.6 million (though this is expected to increase to $2 million this year).
 
This tax falls onto the estate of the person that has passed, and the beneficiaries or heirs inherit whatever is left over. Many beneficiaries have a difficult time covering this tax on their own, without additional assets, like profits from an inherited home, to put towards the tax.
 
If you need to sell your inherited home fast, request a no-strings-attached cash offer on your home today.

 

Additional Reasons to Sell a House Fast

In addition to the above-mentioned reasons for needing to sell your Minnesota house as is, you might also need to move fast because:

  • You’ve outgrown your home and you want to purchase a new one before prices continue to creep up, or worse yet, before national interest rates do
  • Your personal relationships have seen a change – marriage, divorce, or the addition of a baby all make a difference
  • Neighborhood concerns such as an increase in crime may put pressure on you to move quickly
  • Retirement may be coming up and the appeal of moving into a retirement community may cause you to want to sell your house fast
  • A change in health, such as not being able to navigate stairs anymore, may create a sense of urgency to move

 

When to Sell Your House

Is now the right time to sell your home? Should you wait until a certain time of the year?
 
Here are the top considerations for knowing when to sell your home.

 

Timing Considerations

To start, you should determine whether it’s truly a good time to sell or not.
 
For example, Mortgage News Daily will tell you that house sales in the Midwest tend to peak between March and June of every year.
 
That’s because this is the best time for people who have children in school to buy, as the school year is wrapping up soon. To add to that, yards tend to look their best in the springtime, which helps to boost any home’s curb appeal.
 
That said, even if it’s the middle of winter when you find yourself needing to sell your house, remember, houses still sell year-round.
 
Maybe not as many will sell in the winter or during the holidays as the in the spring, but it is still possible to sell your house fast during the off-season with the right investors helping you.

 

4 Questions to Ask Yourself

considering-questions-before-selling-minnesota-home

Here’s a look at some of the best questions to ask yourself before deciding to sell your Minnesota home:

1. What does my financial situation look like?

Consider how much is left on your mortgage and whether selling is going to cover the loan costs.
 
If you’re in a bad financial situation, figure out the lowest selling price you’re willing to take. Make sure selling doesn’t put you in a worse financial situation than you are already in.
 

2. Is my house ready to show?

Make sure your house is clean, the yards are landscaped, and all repairs are handled before you decide to show your home to prospective buyers.
 
 

3. What are my actual time constraints to sell the house?

Figure out when you need to leave.
 
Is it urgent you leave immediately because you’re starting a new job? Are you drowning in debt and staying is making matters worse? Or, are you just interested in moving to a bigger house that you like more?
 
The answers to these questions will help you define a timeline and decide whether to use a real estate agent, or work with an experienced real estate investor whose main priority is to help you sell your house as fast as possible.

 

4. What time of the year is it?

It’s important to consider the time of year it is when you decide to sell your home.
 
That’s because in Minnesota, there is a limited timeframe you can reasonably expect to sell a house before the harsh winter cold comes and selling becomes more difficult.
 
Evaluating your individual situation will help determine if you can wait until spring or need to close the deal as quickly as possible.
 
Understanding general housing market trends and your level of urgency to sell your house will help you determine the perfect time to sell.

 

Factors Influencing Whether You’ll Sell Your House Fast in Minnesota

There are several additional factors that determine how fast you’ll actually be able to sell your house, regardless of what time of year it is.

 

1. National Economy

national-economy-increasing

As housing prices increase, it’s usually a sign that consumer spending is on the rise, meaning people will be able to buy your house for the asking price.
 
However, as housing prices continue to increase along with interest rates, people’s spending habits may start to change.
 
In fact, in recent years it has been more difficult for first-time buyers to secure mortgages and harder to save up large down payments, making people put home buying lower on their list of priorities.
 
Studies show that though some millennials want to buy a home this year, many face between 10-20 years of saving in order to have the traditional 20% down payment. And with the cost of rent continuing to increase, not to mention the general cost of living that includes the cost of education, healthcare, and retirement, saving for a down payment becomes less of a priority.
 
Adding to that, when it comes to securing a mortgage, not only will qualifying for the right amount be a struggle, finding an affordable interest rate is something that continues to plague those that want to buy right now.
 
This means that even though inventory is low and demand is high for housing right now, selling may become a problem if local buyers can’t afford your home.
 
 

2. Minnesota Economy

But the problem is, opportunity doesn’t always mean money in the bank to put a down payment on a home.
 
In fact, there are many things that are keeping interested buyers from purchasing a home in Minnesota. Here are the top ones:

  • Not having enough money for a down payment, the monthly mortgage, taxes, and maintenance
  • The cost of housing increasing faster than people’s incomes
  • A fear of investing in an expensive home after seeing what happened when the bubble burst in 2008
  • The rising costs of raw materials and labor to construct new homes are driving costs higher than expected

 

That said, if people’s incomes aren’t matching the rising costs of buying a home, they simply cannot, and will not buy.
 
And, even if people do have the funds to buy an expensive home, chances are they won’t because they don’t want to see the housing market crash again and bring them down with it.
 
This ultimately means that, despite the booming Minnesota economy, you will have more trouble than ever selling your home fast, no matter what condition it is in.

 

3. Interest Rates

As interest rates continue to rise, nearing the 5% mark, buyers are finding it more difficult to afford housing.
 
That’s because while purchase prices and interest rates are up, incomes are not rising alongside these two numbers, which is causing concern amongst those interested in buying. This crunch will make it more difficult for you to sell as fast as you want.

 

4. Neighborhood Trends

It’s important to know the general state of your home’s neighborhood before putting it on the market.
 
For instance, the demand for housing, how many houses are available for sale, the condition of the homes near yours, and the asking prices of similar houses all play a role in how fast you’ll be able to sell your Minnesota house.

 

5. Your Real Estate Agent

According to the Association of Real Estate License Law Officials (ARELLOS), there are about 2 million active real estate licensees in the United States.
 
However, with so many real estate professionals to choose from, it can be difficult to find an agent with the right experience, motivation, network, and resources to sell your house as fast as you want.

 

6. Your Ideal Buyer

couple-learning-how-sell-your-house-fast
 
How fast you will be able to sell your Minnesota house depends on the type of house you have and what kind of buyer is best suited for living there.
 
Is your house more suited to growing families? Would it be more appealing to older buyers?
 
What types of features would be most important to those buyers? 
 
Is your home close to local amenities such as dining, shopping, entertainment, or parks?
 
According to a survey conducted by the National Association of Realtors (NAR), 57% of people would trade a big yard for a small yard if it meant they could live in a community that had a shorter commute to work and could walk to places such as schools, stores, restaurants, parks, playgrounds, and recreational areas.
 
If your house doesn’t have what buyers are looking for, you’ll find your house sitting on the market for longer than you hope. And if this happens, you’re going to right away to get your house off the market.

 

How to Prepare Your House to Sell Fast in Minnesota

Preparing your home to sell is a big deal, especially if you’re looking to do it as fast as possible.
 
That’s why breaking down the most important tasks is the best way to make sure you cover all your bases and can sell your house as soon as possible, and for the right price.
 

1. Price Your House Wisely

If you price your house too low, you’ll lose money. If you price your house too high, it’ll never sell.
 
Find the sweet spot to not only sell your house, but sell it fast.
 
If you are unsure about how much to price your house for, consult an experienced real estate agent or real estate investor. They’ll know the market trends and can help you competitively price your home.
 
It’s important to remember, however, that if you need to sell your house fast, there’s a chance you won’t get the fair market price for it when selling it traditionally, especially if you decide sell it as is.
 
In those instances, selling your home to a real estate investor may be more beneficial.
 
For instance, if you decide to go with real estate investors like Homestead Road, we offer a free, no obligation assessment of how much your house is worth and will make you a fair all cash offer and quick close.
 
 

2. Advertise Your Property

advertise-minnesota-home
 
The way to get word out that your house is available for sale is to promote it across many channels.
 
You can list your house in online ads, in the newspaper, on flyers, in the MLS listings, and even on your real estate agent’s website.
 
Be very descriptive in your home listing. Also use crisp, exciting images, and make your contact information clear so prospective buyers know exactly who to contact when interested.
 
You can also include information about the local neighborhoods, nearby schools, and crime statistics to ensure people that your house is located in a good neighborhood.

 

3. Be Ready for Home Showings

You want those who are interested in buying your home to have an easy way to view it.
 
After all, no one wants to blindly buy a house they’ve never seen before.
 
Schedule flexible open house times, be available for private showings, and always make sure your house is presentable before showing it to anyone.
 
For instance, remove all personal items, make sure the house is properly cleaned (even if you’re still living in it), and remove items such as children’s artwork or political items to avoid offending anyone or biasing them against buying from you.
 
When it comes to cleaning your house before a showing, pay close attention to:

  • Dust, dirt, and grime that has built up over years of living there
  • The kitchen and bathrooms, including sinks, faucets, toilets, and showers/tubs
  • The floors – include a sweep, vacuum, mop, and buffer, depending on the floor type
  • Garbage in the home, garage, and front and back yards
  • Pets so that no one gets hurt, those allergic aren’t affected, and it’s easier to show the house

As the housing market becomes more competitive thanks to low inventory, you might want to take it a step further and consider staging your home for potential buyers.
 
After all, 81% of buyers say staged homes make it easier for them to imagine the home as their own.
 
Adding to that, here are some more startling statistics you might not know about staged homes for sale:

  • A study by Coldwell Banker Real Estate Corp. found that staged homes stay on the market for half the time that non-staged homes do, and sell for 6% above asking price
  • Home staging is the number one thing you can do to sell your home faster, ahead of cleaning, carpeting, and painting both the interior and exterior of the home
  • Since 51% of people look to the internet first to find a new home to buy, it makes sense that a staged home will be more appealing in online photos
  • You’ll save approximately $2,122 in mortgage payments staging your home thanks to it selling faster, which is great for those in a financial crisis looking to release themselves from a mortgage they can’t pay
  • The most popular rooms to stage and the percentage of people staging them include the living room (83%), kitchen (76%), master bedroom (69%), and the dining room (66%

Staging your home for prospective buyers is one of the best things you can do to sell your house for the most money possible. But again, if you find yourself needing to sell your house fast, staging your home and holding showings can wreak havoc on your time and money and may not be an option.
 
Requesting a free, no-obligation cash offer on your house is an option, however, and one that can get your Minnesota house off your hands immediately.

 

4. Maintain Your Home’s Curb Appeal

curb-appeal-minnesota-home
 
First impressions are huge when it comes to selling your house. If someone drives up to your house and immediately doesn’t like what they see, you may never be able to secure a sale.
 
Plus, great curb appeal will help you sell your house for more money and quicker than ever because of its positive effect on prospective buyers.
 
In fact, some realtors state that exterior home improvements and freshly landscaped yards boost ROI up to 150%.
 
That’s why the following outdoor maintenance should all be done on a routine basis:

  • A fresh coat of paint
  • Fix any outdated or broken widows and window coverings
  • Repair the rain gutters
  • Trim the shrubs, hedges, and plants
  • Sweep the walkways
  • Clear out the trash
  • Pull weeds

You might even want to add some special touches, such as potted flowers, to enhance your house’s exterior a bit more.
 
Whatever you do, don’t forget about the backyard! It is sometimes easy to do this because it’s not something buyers see when they pull up to the house to attend a showing.
 
However, most homeowners like to spend a lot of time in a well-maintained backyard, which is why tending to the backyard is just as important as tending to the front yard.
 
Try washing the deck, and even staining it or painting it so it looks inviting.
 
Add backyard lawn furniture as a way to stage what it could look like once someone moves in. Even consider adding special outdoor lighting or extra storage areas to make your home stand out.
 
If you can’t handle this on your own, or just don’t want to, consider hiring a professional landscaper to take care of it for you.

 

The Best Ways to Sell Your Minnesota House

selling-minnesota-home
 
After understanding all the different factors that go into selling your Minnesota house fast, the final thing to do is determine exactly how you want to sell your house.
 
Your reason for wanting to sell fast, the amount of resources or extra cash you have on hand, and your individual financial situation will all play a role in how fast your house will sell.

 

1. Use a Real Estate Agent

There are plenty of reasons why using a real estate agent to sell your Minnesota house is a good idea:

  1. They know how to price your home competitively
  2. They can stage your home to appeal to a wider buyer base
  3. They can get you higher offers thanks to an increase in showings
  4. They can expose your home to a wider buyer pool using a variety of marketing channels
  5. They can help you find highly qualified buyers and negotiate the best terms
  6. They can represent you during home inspections to ensure everything stays on track

That said, not everyone wants to deal with the costs or hassles associated with hiring a real estate agent, nor does everyone have the time to deal with one, either.
 
That’s why our next option is often the best way to sell your Minnesota house fast.

 

2. Sell Directly to a Real Estate Investor

Whether you are looking to sell your Minnesota house fast, are wanting to sell your house as is – or both – consider selling directly to knowledgeable real estate investors, such as the ones at Homestead Road.
 
With fair cash offers that come obligation-free, Homestead Road makes selling your Minnesota home a breeze.

 

Benefits of Selling Your House to Our Real Estate Investors

  • Sell your house “as is” for up to 20% above any other offer you’d get using a real estate agent
  • Receive stellar customer service since the focus is on helping families get out of bad situations
  • Never worry about preparing your house to sell or staging the inside to convince buyers to make a purchase – Homestead Road takes care or fixing up your house using our own professional team
  • Save money by not having to hire a real estate agent, fix up your house, or stage it
  • Get help with moving costs to help alleviate the stress of moving
  • Avoid foreclosure by selling your house as is, right now
  • Rest assured your house will be restored using high quality materials and sold to a family who is also trying to find an affordable home to live in
  • Avoid typical closing costs associated with selling a house
  • Never worry that your house is too rundown or in need of repair, since all homes have the ability to be restored
  • Receive individualized advice for your situation that will lead to the best outcome possible, including a quick sell

 

If you want to sell your Minnesota house as fast as possible for the highest price, contact Homestead Road.
 
You’ll receive a free, no obligation assessment of your home situation and be able to talk to real estate experts who are experienced in buying houses as is for cash.
 
In the end, you will find that selling your Minnesota house for cash is a simple, hassle free, and financially sound process when you use Homestead Road.

 

 

 

Ways to Avoid Mortgage Trouble With Your Minnesota Home

Many investment property owners do not put much thought into whether they’ll be able to pay the mortgage on their investment property each month.

After all, that’s why you have tenants, right?

However, it’s not just tenants failing to pay their rent each month that can cause your rental property business to go under. In fact, not being able to cover the mortgage each month has the potential to do far worse damage than a few missed payments by your tenants.

At least with tenants that don’t pay their rent, there is a remedy for collecting those payments.

If you don’t pay your rental property’s mortgage, you are in trouble with not only the tenants that are leasing from you, but also the lender that gave you money to finance the property in the first place.

Today, we are going to look at some great mortgage payment tips so you can avoid running into trouble paying up each month.

 

What to Do if You Can’t Afford the Mortgage Payments on Your Investment Property

 

1. Secure the Right Financing

One of the biggest mortgage mistakes Minnesota property owners make when they get into the rental property business is not taking the purchasing of a property as seriously as they should.

You should make sure to reduce your debt, establish good credit, shop around for the right financing terms, and secure a good down payment before even thinking about investing.

You should also never buy a property you can’t actually afford, no matter what the market is projecting you can collect in rent each month.

Do your research and make sure that the property you are looking to buy is within your budget and can command the rent rates you expect. Consider how you will handle various situations, such as potential vacancies or tenants who are behind on rent payments. Will you still have enough money to cover your mortgage payments, regardless of tenant income?

Remember, you are ultimately responsible for paying the mortgage each month.

Your lender will not care that your tenant skipped town, rent rates took a dive, or that you didn’t understand the financing terms.

Lenders expect their money each month and you need to be able to provide that, regardless of what’s happening with your rental property business.

 

2. Properly Screen Tenants

Properly Screen Tenants to Avoid Mortgage Trouble With Your Minnesota Home

Once you secure the right financing for your Minnesota rental property, and you have finalized your purchase, it’s time to focus on avoiding the mortgage mistakes many property owners make while their properties are being leased.

As a property owner, it is tempting to want to keep your rental leased at all times, regardless of what kind of tenant is living there. However, this can cause you a lot of problems deep into the lease term if you didn’t properly screen your tenant.

Although we mentioned above that there is a remedy for handling tenants that don’t pay their rent, do not be tricked into thinking this works every time. Also, don’t be tricked into thinking that collecting missed rent payments is a fast process.

True, if your tenants fail to pay their rent, you or your property management company can evict the tenant and keep their security deposit to make up for lost rent payments. You might even be able to take them to court for the money they owe you for the remainder of the lease.

However, if your tenant decides to move out unexpectedly, and disappears without a trace, you are going to have trouble recovering that loss in rent, not to mention any damages you may have to take care of before moving another tenant in.

Meanwhile, you will still have to cover the mortgage payment each month until you get new tenants in place.

While you can never fully avoid a situation like this, the key to preventing it is thoroughly screening your tenants before choosing one to move into your rental. Make sure your potential tenant has enough income to cover the rent each month, that their references are legitimate, and that they have no prior evictions on their record.

You want to place tenants in your rental that will pay their rent each month, without fail, as well as care for your property so that you never have to worry about covering the mortgage in the middle of a nasty eviction proceeding.

 

3. Avoid Vacancies

Proper tenant screening can help you prevent placing tenants in your property that won’t pay their rent on time each month. However, the other half of the equation − and the key to being able to cover your mortgage each month − is to avoid vacancies.

After all, zero tenants mean you’ll be receiving zero rent payments, which means you have to cover your mortgage on your own.

If you find out your current tenants will not be renewing their lease come the end of their term, start advertising your rental as available well before they move out to minimize the time your property is vacant.

Begin the tenant screening process, get your maintenance crew on board to fix anything that may need fixing or replacing, and start working with your property manager to tweak your lease agreement if there is anything you want to change, such as the rent rate.

In addition, if your tenants don’t have a need to move elsewhere anytime soon, take it upon yourself to make sure they are happy with their stay during the entire lease term.

It is far easier to secure a lease renewal than it is to place a brand new tenant in your vacant property. And by renewing your tenant’s lease for another term, you are guaranteed that steady income that is covering your property’s mortgage.

Staying proactive and making sure your current tenants are happy and don’t want to leave, while also filling vacancies as soon as they happen, will help reduce the strain of having to cover the mortgage in between tenants.

 

4. Maintain the Property

Maintain The Property to Avoid Mortgage Trouble With Your Minnesota Home

This may seem counterintuitive, but putting some money into your rental property can actually help you save money in the long run.

Tenants want a beautiful place they can call home. They want their appliances to work, their yards to be well maintained, and if they run into any issues during their tenancy, they expect you or your property manager to handle maintenance and repairs efficiently.

Keeping your rental property maintained does a few things:

  • It allows you to command higher rent rates from the start that more than cover the mortgage each month
  • It appeals to a higher quality tenant pool that is not only willing to pay higher rent rates, but also pay on time every month and care for your well-maintained property
  • It satisfies current tenants when they have a maintenance or repair issue, which leads to continued rent payment each month and possible lease renewals at the end of the lease term
  • It solidifies your reputation in the rental property industry as being a person that cares for tenants and not just someone looking to make a profit, which can lead to fewer vacancies

The more effort you put into caring for your tenants and the rental property they lease from you, the more inclined they will be to pay their rent on time each month and care for your property as though it was their own.

 

What to Do If You Are Having Mortgage Trouble

If you find yourself having trouble covering the mortgage on your Minnesota rental property, and are looking for a way out, how we can help.

Homestead Road is dedicated to helping people in trouble with their homes avoid foreclosure.

We pay for properties as is, meaning you won’t have to invest any money into your rental, even if your previous tenants did some damage, in order to sell it to Homestead Road.

You won’t have to invest in a real estate agent, and all the fees that come with selling a piece of real estate, which can make your financial troubles worse when you are seeking a way out of trouble.

With Homestead Road, you can receive up to 20% more for your property, no matter the condition it’s in, thanks to our unique business model. This means bailing yourself out of mortgage trouble becomes a reality, and you can move forward with the minimal amount of damage to your finances and credit.

 

In Closing

Buying a rental property and covering the monthly mortgage is much like buying a home for yourself and paying the mortgage each month. It has to be done.

It doesn’t matter whether the property has tenants, what the monthly rent rate is, or whether the property has been sitting empty for months. It’s your responsibility to pay your mortgage, just like your tenants pay their rent.

Unfortunately, there are instances where your intentions were good, but the timing was off, and you find yourself in some financial hot water with your mortgage.

If you need help unloading your Minnesota rental property because you’re having mortgage trouble, and are looking for a fair cash offer, contact Homestead Road today and see how we can help.

 

 


Watch this video to understand your options when you inherit your parents’ house so that you can be better prepared should the time come that you find yourself with a new home on your hands.


Though there is some speculation amongst experts as to how much people can expect to inherit from their parents in the coming years, there is no denying that a chance exists you’ll inherit your parents’ house when they pass.

And, while you may not receive a check for the expected average inheritance of $69,000, $177,000, or even $285,000 (depending on you who you ask), it’s important you take a home inheritance seriously.

Things to Consider When Inheriting Your Parents' House

In fact, there are three major options to consider when you find out that you have been given the keys to your parents’ house after they are gone.

Figuring out what to do when you’ve inherited your parents’ house poses many financial and emotional challenges – especially if you are not sure how to handle the responsibilities that come with a property inheritance.

 

Option #1: Sell Your Parents’ House As-Is

Option 1 Is To Sell My Inherited House

If you have no interest in keeping your inherited property, whether to live in it or rent it out, your best bet is to sell your inherited house.

This is especially true if you have siblings and there is no legal documentation of what to do with the property.

Rather than fight it out with your siblings during a time of grieving, make plans to sell the property and split the profits evenly.

That said, Mitchell Kraus, a certified financial planner and partner with Capital Intelligence Associates in Santa Monica, California, recommends waiting to sell if you can afford to do so.

This is because inheriting a home during an emotional time can lead to irrational or hasty decisions, whereas waiting a few months for things to settle offers room for more rational ideas of what to do with the home. After all, if you sell right away, there is no taking it back.

If you do decide to sell your parents’ house, however, keep in mind the following:

 

Tax Benefits

Tax Benefits of Selling an Inherited House

Whether you sell the property right away, or wait a few years to do so, the IRS will treat your inheritance as though you’ve inherited stock, meaning you will receive tax benefits from it.

For example, the value of the home will be based on the market value of the property at the time of your parents’ death, not the original purchase price. This is called the stepped-up value, and it affords those inheriting property the luxury of not having to pay capital gains taxes up to a certain percentage. And, depending on how much annual income you make and which tax bracket you fall into, you may enjoy rates as high as 20% on those gains.

That does not necessarily mean, however, that you are free from paying any taxes.

If the capital gains exceed the percentage category you fall into based on your income, you’ll owe. On top of that, some states levy additional taxes on property valued over a certain amount (e.g. $1 million), and some states even go so far as to charge inheritance taxes on those selling inherited property.

 

Extra Payments

Just because you decide to sell the home, and possibly make a profit, does not mean you are free and clear from owing money.

For instance, you’ll want to make sure all homeowners insurance is paid up to date before you sell, just in case something happens to the property between the time you inherit it and the time you sell it.

In addition, you’ll want to make sure all mortgage payments, property taxes, and utility bills are paid as well so that you don’t run into any issues with bill collectors and find yourself unable to sell.

Lastly, once the property does sell, keep in mind that if you don’t make a profit, you’ll owe the remaining mortgage balance, along with any realtor commissions, taxes, and closing costs associated with the sale.

If you do not want the property, selling your inherited home is always a good option. Just make sure to weigh the pros and cons, and prepare yourself financially for any surprises.

 

Option #2: Live in the Property

There is also the option of living in the property your parents have left to you.

If this is the case, and you have siblings, make sure your parents’ wishes to have you move into the home (not your siblings) are in writing and clearly outlined, to avoid lengthy court disputes.

If you are thinking about moving into the property you’ve inherited from your parents, consider the following:

  • You’ll now have plenty of time to sort through personal belongings so you can hand out what belongs to others, get rid of things that are not needed, and sell what you feel might be valuable.
  • You may be able to move into a home that is mortgage free, which many young people do not have the luxury of doing.
  • If the value of the home you’re moving to has a sizable stepped-up value, you may be responsible for hefty property taxes once you move in because you are no longer receiving the senior tax break your parents enjoyed.
  • The cost of living in a bigger home may be more than what you bargained for – utilities, property taxes, homeowners insurance, liability insurance, and more can wreak havoc on your finances if you’re not careful.
  • If you live in the property for a while, and plan to sell down the road when the value has increased, you’ll still receive the major tax breaks explained above regarding the stepped up value of the property (single tax filers can profit a maximum of $250,000, while married filing jointly couples can profit $500,000 maximum without having to pay capital gains taxes).

 

As you can see, while there are some downsides to moving into your parents’ home, so long as you balance the finances and know what you’re getting into, it can end up being a good option.

 

Option #3: Rent the Property

Rent Inherited House

The last option you have when you’ve inherited your parents’ house is to rent it out.

This eliminates the need to sell right away, and prevents you from having to move in as well. But it also lets you keep the property that you may have grown up in, that has value, or that you’re just not quite sure what to do with.

Renting an inherited property is good for generating some monthly income, which is especially helpful if there is still a mortgage that needs to be paid each month.

However, there are always challenges that come with becoming an instant landlord. For instance, there is the upkeep and maintenance of the property, rent collecting procedures, tenant screening and placement, lease drafting, and so much more.

You may not have the spare time on your hands to handle everything that comes with being a landlord. And, while there is always the option of enlisting the help of a property management company, that does not come without a cost as well.

Worse yet, you may feel your inexperience in the real estate world will prevent you from becoming a successful property owner.

 

Final Thoughts

If you have recently inherited a home or are helping your parents sell their home that needs a lot of work, selling it as-is can be very beneficial.

With the help of Homestead Road you get everything you need to handle the property and receive expert guidance throughout the entire process.

Contact Homestead Road today to learn more about your options.

Home Selling 101 – Why a Home Seller Should Consider Having a Home Inspection Home Selling 101 - Why a Home Seller Should Consider Having a Home Inspection

Selling home to an investor directly without having home inspected? There are a lot of essential factors which a home seller must keep in mind before selling their home. For having a profitable deal it is essential to get the home inspection service by experts.

A home inspection will help you to make relevant changes in your home, which will help you to sell a house to cash house buyer with a good deal. Home inspection experts will tell you how much to spend on which specific areas of home for attracting clients.

Here below are some of the most essential reasons which will give you information about the necessity of having a home inspected-

1. It will help you to save your money

Renovating a home is quite a daunting task and may require a large amount, but renovation will help you to save you in the long run.

If issues will be shown in the buyer’s inspection report then he will ask you to reduce the price.

Depending on the buyer’s willingness to negotiate and severity of issues, it may also sink the original offer amount.

2. Help you to sell your home faster

Having home inspection early will help you to get a profitable deal faster. If you proactively make repairs which are necessary then you will get safe from long negotiation process. Selling a house to cash buyer will help you to get safe from money which you have to pay to real estate agent for a long time.

3. Home inspection will give you a competitive edge

A pre-listing home inspection give a signal to potential buyers that you have completed the diligence on their future home.

By doing this, you can build a confidence between you and your buyer. They will become confident that you are an honest seller who is selling a house of good quality.

4. Fix the deal breakers

There are some of the most important areas of the home, which you must focus to repair. These repairing areas can either make or break your deal with a potential house buyer. Therefore, make sure to not forget to make repairs of these below mentioned home areas-

  • Foundation issues

  • Outdated electrical system

  • Mold

  • Water damage

  • Rotted fascia or trim

  • Roof problems

  • Leaky pipes/dated plumbing

5. What should you do if you won’t be able to fix the major problems?

If you cannot afford to make major improvements, you can still spruce up the house before you list it by-

  • Install decorative arbor or sconce lighting or on the street-facing garage doors.

  • Power wash the vinyl siding, driveway, the front walkway, patio furniture, and deck mildew.

  • You can also repaint your house and maintain your garden area which will help you to attract potential buyers before investing too much.

Having an inspection for your home will give you a better chance for a fast and easy close. Making repairs by your own without taking advice from a home inspector will not help you in selling home to investor as soon as possible.

Home Repair and Upgrades that Improve your “For Sale By Owner” Home Value

You can’t sell a house in “as is” condition. Some Home Repair and Upgrades pay off at a much better rate. It makes sense to start with the outside of your home since that is what potential buyers will notice first. Shoot for nice landscaping, a freshly cleaned exterior, a driveway and walking path good repair, a well-lit porch, and an eye-catching front. home repair

If you are selling a house to the cash buyer, keep it well maintained and repair necessary things. Make a list of all of the repairs your home needs, from the tiny (change a light bulb) to the major (new roof) before deciding what to get done. The fact is that the cost of most repairs and upgrades will not be recouped in the sale price, so focus on taking care of the minor repairs and tackle bigger projects only if you feel your must.

Paint is one of the low cost, easiest ways to update the look of your home. And you don’t need to hire a professional painter to make this work for you, just hire a cheaply available man for the job and pick your colors.

Brighter colors are preferred when selling because they tend to appeal to most people. Eventually, helps you attract more buyers for your home. You never know who will walk through the door to buy the house, so it makes complete sense to maintain the house. You don’t have to paint every room, just those that certainly need it. Rooms with dark paint chipped, or dirty paint is the ones that will serve better.

If you have wallpaper, then it is always a good idea to remove it to sell your home for the money. Wallpaper dates a home. Buyers have a hard time selling past wallpaper. Some sellers assume a buyer should just be able to “look past it.” They will say to their agent we will give the buyer an allowance to remove the wallpaper. It is a mistake as it defeats the purpose. Getting rid of wallpaper is all about first impressions and making a home more appealing to a buyer. Removing the wallpaper is what puts more money in a sellers pocket.

Take good care of the exterior as it is the first thing buyers will see, so start with replacing missing fence boards, add grass if the yard is looking the worse for wear, and clean up any trash that may have stored in the yard or on the outside of any storage shelters. Make sure the grass properly mowed and that plants are taken care of before someone comes to view the home. You can also plant some beautiful flowers in the yard to make the place feel delightful.

We live with our family and loved ones at home, and a home is supposed to be perfect. We buy houses by considering the fact whether it is suitable for our family and us.

Make sure mosses growing on the roof, and problems with the siding are properly taken care because these are the things that buyers will notice. Try to get all these things repaired now, so you don’t have to answer questions about it later.

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