If your listing expired and your house didn’t sell, it’s totally natural to feel a mix of frustration and disappointment. And as you’re working through that, you’re probably also wondering what went wrong and what you should do next.

If you still need to move and want to get it back on the market, here are some things to consider as you look back.

Was It Priced for Today’s Market?

Setting the right price from the start is key. While it might be tempting to try shooting high with your price, that can slow down the selling process big time. If your house was priced higher than others similar to it, it may have turned away buyers. And that’s likely why it sat on the market. As Rocket Mortgage explains:

“Buyer interest in your home is highest when it first comes on the market. That’s why it’s so important to start with the right price on day one. . . If you overprice your house, buyers may just raise an eyebrow and move on to the next listing without even coming for a showing. . . It can be easy to think your home is worth more but try not to let sentimental value color your judgment. Your home’s true value is whatever a buyer is willing to pay for it.”

Was It Easy for Buyers To Tour?

One of the biggest mistakes you can make when selling your house is overly restricting the days and times when potential buyers can tour it. Even though it might feel stressful to drop everything and leave when buyers want to see your house, being flexible with your schedule is important. After all, minimal access means minimal exposure to buyers. ShowingTime advises:

“. . . do your best to be as flexible as possible when granting access to your house for showings.”

Was It Set Up To Make the Best Impression on Buyers?

If buyers weren’t interested in your house, it’s worth taking another look at your home through their eyes. Are there outstanding repairs that may be distracting them? Even if it’s a small thing, some buyers may see it as a sign the maintenance on the home is falling behind.

Just remember, you don’t always need to make big upgrades. Selective small repairs or touch-ups go a long way. Things like tidying up your landscaping, a fresh coat of paint inside, or removing personal items and clutter can work wonders in sprucing up the house for potential buyers. You could also consider staging the home.

Were You Willing To Negotiate?

If there were offers coming in, but you weren’t ready to negotiate, that may be another reason why it didn’t sell. While you want to get top dollar for your house, you also need to be realistic about what your house can net in today’s market. The market is still tipped in a seller’s favor, but the supply of homes for sale is growing and buyers are feeling the sting of higher mortgage rates. So being willing to play ball can make closing a deal a whole lot easier. A skilled agent can help. As Ramsey Solutions explains:

“If you don’t have the money or time to fix home issues, consider offering some other form of incentive to buyers. . . An experienced real estate agent can help you arrange a deal where you and your buyer both come out on top.” 

Did You Listen To Your Agent?

If you want an expert’s advice on why it didn’t sell, rely on a trusted real estate agent. Whether that’s the agent you used previously or a new one once the listing has officially expired, a great agent will sit down and take the time to talk it over with you. They’ll want to hear your honest opinion on what worked and what didn’t, and where you want to go from here.

Then, they’ll offer their perspective. This includes tailored advice and effective strategies for re-listing your house to get it sold. As Better Homes & Gardens says, an agent should be your go-to resource in this situation:

“If you’re frustrated with the timeline of your sale, chat with your real estate agent. Agents want what is best for you and the sale of your home, and having open communication about any frustrations will be key.”

Bottom Line

It’s natural to feel disappointed when your listing has expired and your house didn’t sell. Connect with a reliable real estate agent to determine what happened, and what changes you should make to get your house back on the market.

Keeping Current Matters 7/1/24

Embarking on the journey to purchase your first home can introduce you to unfamiliar terms. Understanding the distinction between a home inspection and an appraisal is crucial for any homebuyer.

Home Inspection: A home inspection is vital once you’ve made an offer on a house. It assesses the property’s safety and condition, safeguarding your investment in this significant purchase. Should the inspection raise concerns—be it the roof’s condition or the HVAC system—you can negotiate with the seller on potential repairs before finalizing the sale. Your real estate agent will support you throughout this process, ensuring your interests are well-represented.

Home Appraisal: An appraisal, on the other hand, determines the home’s value, ensuring the price aligns with the market and protecting both the buyer from overpaying and the lender from overfunding. If the appraisal falls short of the sale price, your real estate professional will assist in resolving any discrepancies.

In Summary: Both inspection and appraisal are essential, yet distinct, parts of the homebuying process. You’re not alone in this; a real estate agent can provide expert guidance every step of the way.

Purchasing a fixer-upper property can be an exciting and rewarding experience. HGTV is filled with programs of amateurs knocking down walls and tiling bathroom floors. The fact is that this is much harder than it looks and before diving headfirst into this kind of project, it’s critical to consider whether you are prepared for the venture.

5 Important Things to Consider Before Buying a Fixer-Upper Home

1. Financial Planning – The first step in buying a fixer-upper home is to establish a realistic budget. Include the purchase price, repairs costs, and any expected expenses for renovation or restoration. Once you have created a “known” list, then add extra for unexpected issues that will arise.   
2. Time and Effort – Renovating a fixer-upper takes time and effort, even if you hire a general contractor to oversee the project. Consider the overall scope of the project and evaluate your skills and level of time commitment.
3. Structural Condition – Before making an offer, thoroughly inspect the property’s structure and foundation. Recognize the impact of any issues uncovered and make sure to budget for the proper corrections. 
4. Real Estate Market and Location – Even a beautiful home in a terrible area is a bad investment. Consider such factors as property values, market trends and the potential for future appreciation. Work with a financial planner to make sure the investment fits your long-term goals. 
5. Legal Considerations – Before writing the offer, familiarize yourself with local building codes, permit requirements, and zoning regulations. Ensure the changes you anticipate align with local requirements.

Purchasing a fixer-upper home can be a wonderful investment and worthwhile project. By evaluating your budget, time commitment, property condition, and potential appreciation, you can be sure to choose the right situation for your goals and experience.

Before working in real estate, I didn't understand all the lingo. Things like “debt-to-income ratio (DTI)” would rattle around in my head. But let me tell you, now I know that understanding your DTI is like having a secret weapon in your home-owning journey. 

Simply put, your DTI is the percentage of your gross monthly income that goes to paying your monthly debt payments. It's a tool that lenders use to evaluate how much additional debt you can handle.

Understandably, calculating your own DTI might sound like a daunting task. That's why I encourage you to check out my comprehensive 90 Days to Homeowner guide. You'll find a handy DTI calculator to take the guesswork out of your calculation.

For now, here are a few DTI thresholds to know:
• Over 50%: You have a high level of debt. Consequently, lenders might hesitate to approve a mortgage loan because adding more debt to your plate is risky.
• 43% to 50%: This is also a high debt level, but you may be able to make it work. You should, however, strive for a lower ratio for better rates and financial security.
• 36% to 41%: Now you're on your way. With a DTI in this range, you've got a good balance between debt and income, and lenders are more likely to give you a thumbs-up for a loan.
• Below 36%: Congrats! You're in the gold standard zone. With debt levels hovering here, you'll have access to new loans or lines of credit.

If you have any questions or want a copy of my 90 Days to Homeowner (with DTI calc), comment below or message me. I’m here to help however I can.

Last year, the average U.S. homeowner held roughly $199,000 in equity. Not bad, huh?

If you’re sitting in a similar spot this year, you might wonder how to access your funds. 

Let's break down two popular options: the Home Equity Loan and HELOC.

Home Equity Loan • Similar to a second mortgage. • You receive a lump sum using your equity as collateral. • Fixed interest rates mean predictable monthly payments. • Ideal if you need a specific amount all at once.

Home Equity Line of Credit (HELOC) • Works like a credit card but with your home as security. • Allows flexible borrowing up to a set limit during the draw period. • Initially, you only pay interest on the amount you borrow. • After the draw period, you start repaying the principal and interest. • Comes with variable interest rates so that payments can vary.

The bottom line? • Need a large sum immediately? Consider a Home Equity Loan. • Prefer flexible access to funds? A HELOC might be your answer.

If you're thinking about how to tap into your home equity, feel free to DM me. Let me help you find the strategy that aligns with your financial goals.

Source: HELOC Vs. Home Equity Loan: A Comparison | Rocket Mortgage