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  • Writer's pictureJamie Koehler

How To Get "Un-Stuck" From Your Current Home

Updated: May 18, 2023

You CAN move! How to quickly generate cash to get a lower monthly mortgage for your dream home. We’re in a strong sellers’ market. Sellers are anxious to sell for top dollar, but are ultimately staying put for fear of a higher mortgage interest rate and thus a higher monthly mortgage payment when they move. This month I’m explaining exactly how you can use the current market to your advantage to increase your current home’s sales price, put more cash in your pocket, and use that excess cash to reduce the monthly mortgage payment on your new home. As always, I’ll lead the charge and be with you every step of the way.


I've been in the Baltimore real estate industry since 2008. Before I became a full-time realtor in 2018, I spent eight years operating a large rental portfolio consisting of more than 700 single-family homes in the Baltimore Area. During this time, I learned what it really meant to operate real estate. I developed a passion for figuring out how to boost income and limit expenses to realize the most profit possible. I channel this same passion when I meet home sellers in the Baltimore Area today. My goal is to generate the most profit possible for you on settlement day. And in this current market, to show you how to use that profit to reduce your loan amount and interest rate on the new home you intend to buy.


It's A Sellers' Market, But In Reality - How Can I Move At A Time Like This?

It’s the question I’m hearing time and time again from sellers who need to move. They are excited about the strong seller’s market but immobilized by the idea of buying when the market is competitive and the mortgage interest rate is hovering at 6.5%. This article is for sellers like you who want, or need to move, but don’t know how to make it work financially. You are not alone. There are many sellers in your position.


It's A Strong Sellers' Market; You Could Sell For More Than You Realize

The May 10, 2023 Bright MLS housing report confirmed that the median days on market for homes in the Baltimore Metro Area is 7. I have seen this first-hand. In the last three weeks, I have listed three properties in the Baltimore Metro Area. All were priced appropriately based on recent comps. Each one had steady showing activity, a well-attended open house, and received multiple offers which drove them all to go under contract for above the list price. Not only that, buyers offered to meet settlement dates that were desired by the sellers, and some waived the opportunity to negotiate for repairs.


Use This Market To Your Advantage : Generate More Cash From Your Sale & Make Your New Home Purchase Less Stressful

A clean, well-maintained home, with a sensible layout, appropriate price, and strong marketing efforts will sell. But why not use the strong sellers' market to your advantage? Instead of selling your home as it is today, make value-adding improvements now to sell for a higher price, earn more profit when you sell, and then use those additional proceeds strategically to make a competitive offer and reduce your monthly mortgage payment on your impending home purchase? That might be a lot to digest. Let’s break it down.


The Roadmap To Generating More Cash From Your Sale & Using It To Reduce Your New Monthly Mortgage Payment

  1. Evaluate value-adding projects. Let’s meet. I can do a sales analysis on what your home will sell for today. I’ll also look at similar homes that are selling in your area for significantly more. We will identify exactly what those homes have that your home currently doesn’t – it could be fresh, neutral paint, an outdoor space, more renovated kitchen, or more renovated bathrooms. We will only look at value-adding projects that have a high return on investment.

  2. Get quotes on the projects. You might work full time or be raising a family, or both. I work in real estate all day every day. I have the resources and can help you get quotes for the projects.

  3. Evaluate the quotes. We’ll look at the cost of repairs and the expected increase in sales price to be sure that the improvements are going to pay you back and earn you significantly more.

  4. Do the work. How? - Pay cash for the updates - Pay by way of credit card and then pay off the balance using some of the proceeds when your home sells - Take out a home equity line of credit - Use a company like Curbio who will do the projects and does not require any form of payment (and does not charge any interest on the balance owed) until after your home sells

  5. De-clutter and/or stage. I’ll talk to you about how to de-clutter your home and if necessary, we will bring in a stager to help position your furniture appropriately and add décor.

  6. I’ll list your home at a new, higher price that accurately reflects the improvements you have made. I’ll use a professional photographer and cover the cost, write a compelling description, create an appealing flyer (again at my expense) showcasing all of your home’s attributes, work to generate showing activity, and drive traffic to the open house. I’ll make every effort to get you multiple offers on the home, which will ultimately get you the best price and overall terms for your home sale. We can negotiate a rent-back if needed so that you can stay in your home after settlement while we look for your next home.

  7. We’ll use your increased proceeds to ease your transition financially into your new home. With more money in your pocket, you can put more money towards your downpayment, which means you will have a lower loan amount. You can also use the excess money to permanently buy down your interest rate, which usually costs 1% of the home’s total loan to buy down .25% of the mortgage interest rate. So, if you are buying a home that will require a $600,000 loan, it will cost about $6,000 to reduce the mortgage interest rate from 6.5% to 6.25%. You can buy the rate down further depending on the proceeds that you can allocate. A larger down payment and lower mortgage interest rate on the loan will both reduce the monthly mortgage payment.

You're Not Stuck

So many would-be sellers in the Baltimore Area market today feel ‘stuck’ in their current home because they believe a move will be more expensive than staying put. That’s not always the case. I will guide you through this process, help you invest in money-generating improvements that you may not have to pay for until after your home sells, and show you how to use that new found money to assist with your new home purchase.

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