How To Price Your House For Sale
In Start Over Finish Rich, author David Bach details his 10 Steps to Get You Back On Track In 2010. Bach has written a number of books on financial topics and this book was written in 2009. It is an easy read with an abundance of good information. Here is a brief synopsis of the 10 steps.
To choose the best strategy for you, talk with your realtor, visit site attorney AND your tax professional. Clearly, I am NOT an attorney and I don’t pretend to be. I’ve sat through many (many) meeting with customers and their attorneys. In no way should you think there’s a one-size-fits-all solution for keeping or getting out from a house.
Our very first step was to partner with a realtor who would market the house and help us turn this very tiny home into somebody else’s very tiny home. Like most people, we put money into fixing a few things around the house, painting walls and replacing old carpet, really trying to give the place a fresh clean facelift. I felt at that point we had done all that we could do and now the fate of selling this house lay solely in the hands of our realtor.
You find a House for rent, on a rent-to-own program. The option to purchase price is 200,000. After 24 months this rent to own house appreciates in value by the industry average of 4% per year, making it worth 216,320. Now, let’s say your rent payment is $1,500 per month. At the end of two years you will have paid $36,000 in rent. But wait! You have a 20% rent credit of $7,200!
There are (2) ratios which serve as guidelines: Housing Expenses-This is your monthly mortgage payment along with property taxes and insurance and cannot exceed 28% of your monthly gross income. The second ratio is debt to income ration which should not exceed 36% of monthly gross income. These guidelines are somewhat flexible.
Budget – The amount of money you want to spend as rent determines a lot about the house. When you are looking for a house, make sure this is something which the agent is aware of.
His mission statement is that “the happier I can make myself, the happier I can make other people.” An enviable perspective to have there, Mr. Shmooze.