If you read "The Millionaire Next Door", you see that, when measured solely in terms of its investment value, the house you live in is a liability. If it were valued as a true investment, you'd see that you are getting virtually no return for paying interest, principle, taxes, insurance, and maintenance every month. If you had a rental property that consumed this much cash, wouldn't you sell it? Then why not sell your house?
Continue reading “How Free and Clear Homes Can Make You Broke”
What spawned the housing bubble?
Who pays less for housing: investors or regular homebuyers?
Does emotion influence sales price?
How do short sales affect the market?
I suggest you read Bill Effros’s book, How to Sell Your House In 5 Days for a basic understanding of the process.
There are a few things I do a little differently that what is described in the book which I have found to be much more successful. Here goes:
A lot of people have bought houses for resale that they now can’t sell. As a result, they are making payments on their own homes plus the home the bought. It’s only a matter of time before they run out of money and patience, and stop making payments. In California, about all that happens is that they bruise their credit and disappoint their lenders when the home goes into foreclosure.
The lesson in this epistle is that, rather than ruining your credit and along with it your future prospects by letting a house go back to the lender, consider a number of alternatives:
Continue reading “Sell Your House and Move into Your Spec House”
