If you’ve been thinking about selling your home for a while but hesitate to list it, you may have many reasons giving you pause. Despite a rapidly rising housing market in Orange County, you may worry about getting what you want from your home or even finding a new place to live. Here are some of the most common concerns that prevent homeowners from listing their Irvine townhomes, condos, and single-family homes, as well as some tips on how to get past your apprehensions.
Where Will You Live?
Many homeowners hesitate to list their homes out of concern for where they will live. This is a valid concern. After all, the housing inventory in Irvine remains low. When homes come on the market, they tend to sell fast. However, there are a few ways around this dilemma. One solution is renting after your home sells to give you time to find a new dream home, choose the ideal neighborhood, and check off as many items on your wish list as possible. Another solution is using a bridge loan or HELOC to buy a new home once you accept an offer on your current home.
Will You Be Able to Get a New Mortgage?
A common worry among homeowners is not being able to qualify for a new home loan if they sell. The credit crunch after the housing market collapse of 2008 made it difficult to get a mortgage for many years. However, mortgage availability has dramatically improved in 2017. Today, you can even get a mortgage with a low down payment or no down payment at all. In fact, even conventional loans are available with down payments as low as 3 percent. In general, you should have a credit score of at least 620 to get a mortgage. If you don’t know whether or not you qualify for a new mortgage, find out. Request free copies of your credit reports and check for red flags that lenders will see. You can even get preapproved for a mortgage before you list your home for sale.
Should You Just Remodel?
Home renovations can offer a good return on investment and make your home better suited to your changing needs. However, remodeling requires a large investment that isn’t guaranteed to pay off. If size is an issue, renovations are unlikely to help. Room additions can be very expensive and rarely offer much return on investment. Before you make big renovations to your home, make sure you aren’t improving beyond your neighborhood. You should know the highest price point in your area because remodeling won’t pay off if your home is already similar to the pricier homes in your community.
Will You Get What You Want from the Sale?
If you’re concerned you are still underwater on your loan, you may be in for a pleasant surprise. According to a new report, the average Orange County homeowner with a loan gained $238,000 in equity from 2012 to 2017, beating out the rest of Southern California as a whole. Less than 9,000 mortgaged homes in Orange County are now underwater compared to over 130,000 homes in 2009. Low inventory and high demand are pushing up the prices of homes for sale in Irvine, especially when compared with low unemployment and low mortgage rates.
A real estate agent can help you determine how much your home is worth to see if you’re at a comfortable place to sell. If you need to find a real estate agent in Irvine, get in touch with OC Residential today. Call 714-454-6304 to speak with one of our trusted realtors.