Vacant land can be a truly rewarding investment. Vacant land can also have hidden costs; maybe right away, maybe in the long run. There are annual taxes and potentially property owner’s association fees to consider, not as many tax benefits, cash flow, and property maintenance issues, and market conditions to consider. Call The Trusted Home Buyer at 866-488-9923 to discuss the hidden costs of owning vacant land.
Purchasing vacant land might not be as expensive as buying a house, but don’t forget about the annual taxes! Depending on the location and zoning of your land, the taxes might be a few hundred dollars or a few thousand dollars. If you hold onto your vacant land and don’t do anything with it, you might end up paying double or triple what you did for the land in annual taxes and have nothing to show for it but the same piece of vacant land.
Another potential annual fee is the property owner’s association fees. If you purchased land in a community with an association, these fees might also be a few hundred or a few thousand dollars a year, depending on the type of community and the services they provide and what amenities are available. Also, keep in mind that there might be public utility expansion or other special municipal projects that could be added to your annual tax bill that may or may not improve your land directly.
Owning vacant land is a nice investment asset, but it has fewer tax benefits than owning a single-family home or a commercial property. There is no depreciation to claim on your taxes, and vacant land does not usually qualify for any type of homestead exemption on your tax assessment.
Another hidden cost of owning vacant land is negative cash flow. You do not have a structure to rent out and collect monthly payments. Depending on the zoning of your vacant land, you might be able to recoup some of those annual tax fees by using your vacant lot as an extra rental space. You might want to consider purchasing property owner’s insurance if you do anything like this. If something happens to someone on your property while moving or occupying your vacant land, they might file a lawsuit against you. That would be a huge cost for you.
Owning vacant land can also become costly to maintain. If your property is in a municipality, they may require you to keep your property mowed. If you have a lot of trees, they may require you to clean up the brush to guard against fires. If your vacant land isn’t in the best of areas, some dumping might occur on the property, turning it into a miniature landfill! This trash and garbage might cause you to have code violations and can be costly to have it removed. There may also be unknown contaminants or toxic issues on this land that you are unaware of, but once discovered, this might also be costly to clean up.
Owning vacant land in Phoenix for too long can be a big mistake. If you buy your property while the market value is high and hold onto it for a long time, the value might decrease more than you expect. Depending on your purchase price, it might cost even more than your annual taxes to hold onto it year after year. You might also be losing hundreds of dollars of market value.
At The Trusted Home Buyer, we are taking every precaution possible for our customers and team. We genuinely care about your safety and have implemented the following changes.
Locally owned The Trusted Home Buyer remains open and all of our work is in full compliance with social distancing. We recognize that our services are necessary for people who want options that restrict or eliminate human interaction. We have implemented the following options for the safe purchase of your property:
We can buy your house without a single person coming inside. You tell us what works for you, and we will work out a solution that makes sense and feels safe to you.
We can close on any date of your choosing. You can pick a general date now, and we can update that date as the circumstances change. The close date is completely in your control, fast or slow. We will always agree to move the date at your request.
You can take pictures of your house and text/email them to us, or we can arrange to take interior pictures of your house for you (we need less than 15 minutes). For safety, you can open all the doors, turn on all the lights, and we literally will not touch a single thing in your house while we take the pictures.
The Trusted Home Buyer has been operating for over 10 years serving the Phoenix metro area, we are here to serve you today, and we will be here to serve you tomorrow.
Thank you,
Martin Boonzaayer & The Trusted Home Buyer Team
My name is Martin Boonzaayer, also known as THE TRUSTED Home buyer. Whether your property has lots of equity, is upside down, is in probate, or perhaps you are looking to sell because of job relocation, divorce, or bankruptcy, or you have a rental property you don’t want to deal with anymore, I want to help you make the right choice for selling your property.
As the TRUSTED home buyer, I have made it my mission to provide the most value for people just like you, to make the right decisions for their property. The home owners biggest weapon, is simply education, and having the ability to make the best decisions with complete confidence that make you the most money and the best deals. So, to avoid doing the same mistakes home sellers make over and over, I wanted to give you a FREE Webinar to go over some of those solutions.
Even if you want to do it yourself, you will learn the tips and tricks to get it done right!
You will learn about people like Mary, who had a property on the market for over 300 days. After two weeks, she was able to close with a full retail buyer after working and learning from me!
So stop making the same mistakes home sellers make and start moving forward with your property!
iBuyers are a relatively new option when it comes to selling your home. They provide a quick option if you need to sell as soon as possible, but they are not the only option. There are still traditional local home buyers in Phoenix, AZ that are financed and able to purchase your home. How does the iBuyer compare to a local Home Buyer in Phoenix?
iBuyers are companies that buy and sell real estate through technologies. They felt the need to simplify and streamline the real estate transaction process, basically eliminating the real estate licensee. The iBuyers provide a platform to buy directly from homeowners and sell to buyers directly. These companies are looking for properties in very good condition with very minimal or no repairs to make. If the property does need repair, they will often offer less for the house, or require the seller to make the repairs themselves before closing. iBuyers are focused on higher volume and less profit per unit. As of right now, iBuyers are not active in all areas; they tend to focus on very active areas with property values around $250,000.
As a property owner, you need to know how an iBuyer compares to a local home buyer in Phoenix, [markey_city] when you decide it’s time to sell your property.
Through an iBuyers platform, property owners can request an offer from the company. The owner fills out information about the property and will disclose any known issues or recent upgrades. If the property meets the company’s initial criteria, the platform then runs an evaluation on the subject property. The iBuyer will typically provide a cash offer within 24 – 48 hours of the request. After the owner accepts the offer, the iBuyer will usually send out an inspector to verify the status of the property. If any repairs need to be made, they will either request the seller to fix them or deduct the repair cost from the offer. When the repairs are settled, the owner then picks the close date.
A local home buyer in Phoenix will generally be using a real estate agent. This means the local home buyer will be most likely to find your property through the multiple listing service, or MLS of the area. The buyer’s agent would then present the offer contract to the selling agent, or seller directly if they are not using an agent. If the seller accepts the offer, the buyer will usually hire an inspector to make sure there are not any hidden surprises. If you’re lucky, the buyer will purchase in all-cash; however, the typical home buyer will need financing which can take 30-90 days, depending on the lender. This point in the process is where some buyers are forced to withdraw their offer because of financing issues. If they make it past this point and the inspection comes back agreeable, then the closing occurs according to the contract.
Local home buyers that do not use real estate agents are usually investors. Working with these buyers will have aspects of iBuyers and buyers with real estate agents as well. They tend to make all-cash offers with quick acceptance time frames but have inspection tendencies like local home buyers that work with real estate agents. They will most likely hire an inspector and request a price reduction for repairs needed. Some investors may need some time to inspect the property or to secure financing. The cash local home buyers will tend to close quickly since they are not waiting for financing.
A very popular item that is inherited and frequently unwanted is real estate property. When family members or close friends pass on, they will their property holdings to their next of kin or people who meant a lot to them. This leaves you, the recipient, responsible for property upkeep, possible landlord duties, property taxes and possible homeowner’s or property owner’s association fees. What now?
First of all, the property will most likely have to go through a probate process depending on how it is currently deeded. Check into the local and state laws regarding the inherited property. If you have already completed probate, you may have to do an additional probate in the county or state the property is located, especially if it differs from where you live in order to have full legal rights to the property. For more information regarding these laws, contact The Trusted Home Buyer at 866-488-9923 to discuss potential probate for your unwanted inherited property in Phoenix, AZ.
If you inherit a single-family or multi-family residential home, and you don’t want to live there, consider renting out the property. This could be a nice addition to your bottom line. You might have to make a few repairs or upgrades to make it marketable, but over a short amount of time, it will be a really good investment since you didn’t have to make a large purchase to have this extra income stream. You might have inherited this home or multi-family property with renters in place; even better! This will save you the trouble of fixing it up and finding tenants.
If you inherit commercial property and you don’t own a business or don’t plan on starting a business, you could also rent this property out! There are plenty of business owners in Phoenix looking for a new place to run their business, especially if the property is in a prime location with plenty of traffic. These properties tend to have a pretty nice return.
Of course, being a landlord isn’t everyone’s cup of tea. There is a lot of responsibility that falls on the landlord’s shoulders; broken major appliances, roof repairs, cracking driveways, potential structural issues, annual taxes, homeowner or property owner’s association fees, finding new tenants… the list goes on.
If you do not want to live in or occupy the property in any way, then selling would be another option of what to do with your unwanted inherited property. Please call us at 866-488-9923 to discuss the market value of the property and the possible options of selling your unwanted inherited property. Do a little research to see what similar properties to yours are selling for before calling any real estate buyer or real estate agent. Get a good idea of what fair market value is, that way you’re not shocked when you hear the price. Keep in mind, cash buyers with quick closings will probably offer you a bit less than average market value because they save you a lot of real estate fees and commissions in the long run, and will often pay for the closing costs.
Since you didn’t buy it and you don’t want it, you could give the property to a charity or the municipality in which it lies. Contact the future recipient for their donation process. You could also give the property to one of your family members or friends, or children. You may still have to go through probate locally in order to take full ownership to donate or give the property as a gift.
There’s no doubt about it – real estate is a great investment. There is huge money-making potential when you own real estate. But how do you know if you’ve held a property too long?
One of the reasons why people hold onto a property too long in Phoenix, AZ is that they are waiting for the prices of the real estate market to double, or triple! The real estate bubble of 2004-2005 is not bound to happen again any time soon. Some real estate owners are watching the market regularly and aren’t seeing the huge price increase they were hoping for. They watch it increase for a few years, then it corrects itself and goes back to where they bought it. They have a plan to make a certain percentage on their investment, but taking into account the annual taxes and the original investment, it is starting to become more money invested than they will ever see come back through a sale without the real estate peak market.
Another reason why people hold onto a property too long is that they inherited it from a really close family member, possibly their parents or grandparents. They want to hold onto that property forever to keep a piece of them in their lives, even though they never plan to live in it, rent it out, or build on a piece of vacant land. It might not even be in the same state! The annual taxes or homeowner’s association fees might even be a little too much for their budget, but they don’t care. They want to hold onto the property as long as possible.
A more practical reason why people hold onto a property too long is that they plan to build on it. Maybe they’ve done a ton of research on the neighborhood and it’s a perfect fit for them and their family, but they can’t afford to build. Or maybe they can’t settle on the perfect floorplan for their dream home. They hang on to the dream of building, but never actually build. They do, however, pay taxes and maybe even homeowner’s association fees, but they hold on to the property with hopes that one day they will actually build their house.
A very common reason why people hold onto a property too long in Phoenix, AZ is very simple: they want too much money. They have an unrealistic idea of what they’re property is worth, and are not interested in selling for less than their ideal number. The sellers that have their house listed way over market value probably really don’t want to sell and will be insulted at anything less than their unrealistic price tag.
Another reason why people hold onto a property too long is that they might have really fond memories. Emotions are hard to deny. Maybe their grandmother lived there and they grew up in the kitchen making pumpkin pies for Thanksgiving with her, or learning how to make pistachio thumbprint cookies in the dining nook. Maybe it was their first house as a married couple and have lots of happy memories cuddling in the den watching movies. Maybe it’s the house their children grew up in and they made notches in the door frame marking their growth. These are all extremely strong emotions to override and they are understandable reasons why people hold onto a property too long in Phoenix, AZ.
Purchasing a house is a huge commitment. There are a lot of factors that go into the process of finding a new one. You’ve selected a house in Phoenix with the must-haves and might have made some compromises, but how do you know you’ve made the right choice?
When you pull into your driveway, do you have a tiny sinking feeling that you wish you didn’t buy this house? Did you have a high-pressure deadline when you made your decision? Did you really do enough shopping to see all the possibilities? Did you explore different areas and keep an open mind, or did you only look in one location? Do you find that your house is really too small to be functional? Or do you think, why do I have so much space? These are all signs that you have buyer’s remorse.
Eating ramen noodles almost every night in order to pay the mortgage was NOT what you had in mind when you pictured yourself as a homeowner. Is the house more of a fixer-upper than you realized? Did you end up putting more money into house repairs than you planned on? Maybe this house doesn’t allow for enough entertainment or savings as you hoped. Perhaps your homeowner’s insurance was more expensive than you planned. These are all signs that this house doesn’t fit your budget and you are probably living in the wrong house.
Maybe the house does fit your budget, but what about the neighborhood? Are you able to hear the television over the neighbor’s blaring music? Is there a lot more traffic going by your house than you realized? Does the train wake you up way too early every morning? Do you find yourself shopping in stores you don’t like because your favorite chain grocery store is too far away now? These are all signs that your neighborhood might be an issue and may be living in the wrong house.
Does your new house have well water? When you purchased it, you were happy to not pay high utility bills, but now you realize you are responsible for any well system repair. What if you have to redrill and move the well system? Do you hate lugging around water softener, or having to pay a company to come out and do it for you? Is your municipality planning a utility expansion in your area, and now you have to add another $20,000 to your tax bill over the next few decades? These are signs you might be living in the wrong house.
Perhaps you are totally fine with the house purchase you can afford and love your neighborhood and have no pending utility issues… but you just noticed a crack along the floorboard by the front door. Maybe you dismiss it for the caulk shrinking… and then a few months later, it’s a little bit bigger… and bigger… is your foundation sinking? Maybe there are new cracks by the windows or new water stains on the ceiling… these are all small indicators that your house might have some structural issues. Also, these are signs that you might be living in the wrong house.
Phoenix and AZ in general have plenty of cash buyers for houses in any shape. These buyers are a great option to get out of your wrong house ASAP, but prepare yourself to accept less than retail price. They will save you a lot of time and hassle by taking the house off your hands. You might be able to restructure your mortgage or transfer loan to another lender. If you feel you’ve been intentionally misled by the seller or real estate agent, you can file a lawsuit against them, or the inspector if their report didn’t include the major structural issues (check with your lawyer). If now isn’t the right time to ditch the wrong house, perhaps renting a room/the house out might be a good idea and sell when the market is best.
Do you need to sell your house in Phoenix? There are many alternative options to consider, that will lead you away from the costs, the time, and the waiting of the MLS. In this post, we will explore how selling via a rent to own agreement will benefit you and your current situation!
A rent to own agreement will allow someone who is lacking a downpayment for a traditional loan, the ability to begin the homeownership process. For those who don’t want to wait and who are eager to become homeowners, they will jump at the chance for a mutually beneficial rent to own agreement. When you sell your Phoenix house in this manner, you are opening the door to a number of new buyers who may not have been able to purchase otherwise. This gives you more options, money in your pocket faster, and the chance to get your asking price without any fuss or negotiation.
Typically, when using a rent to own agreement to buy a house in Phoenix, the owner will collect a down payment, a higher than average rent payment each month for the property. If the potential buyer should default, they risk losing the property along with their initial downpayment… not a place any homebuyer would wish to be in. When using a rent to own agreement to sell your house in Phoenix, you assume very little risk, while collecting a higher than average rent payment each month. For sellers who don’t need the entirety of their selling proceeds upfront, collecting the cash each month with a sale date in the future can be a very prosperous situation.
Imagine collecting rent each and every month for your house in Phoenix. Now imagine, collecting even more than the average rent, along with a downpayment and severe penalties for default. Utilizing a rent to own agreement to sell your house fast in Phoenix is an excellent way to create a steady income you will receive for the next several months. Unlike renting to a standard tenant, your potential buyer is very vested in the property and will likely pay their rent on time, while taking care of any required maintenance. The last thing someone with the opportunity to buy would want to do is default, losing money and their chance at the home.
Listing your house for sale on the MLS in Phoenix can take awhile. During this time, the holding costs will skyrocket, especially if the house is sitting vacant while trying to sell. All of the utility bills, maintenance, taxes, and insurance costs will be completely up to you until the house has sold. When you use a rent to own agreement to find a buyer fast, those costs will either be passed on to your buyer directly, or the amount they are paying you each month will cover it.
Yes, you will want to make sure your house looks good, but you won’t have to spend a fortune fixing it up or keeping it clean for showing after showing. When you sell your house via rent to own agreement, your buyers are purchasing not only the house but also the opportunity to buy it which they may not have had otherwise. You won’t find yourself spending money or marketing, agent fees, hefty commissions, or any of the other costs that sellers often face.
If you decide to sell your house via a rent to own agreement in Phoenix, the process can be lucrative and beneficial. We are happy to answer any question you have about the process!
If the bank is threatening to take your property after all you have put into it, we can help you stop the foreclosure of your house in Phoenix! Keep reading to learn about what you can do to fight back!
Dealing with the threat of foreclosure can be extremely overwhelming. The thought of losing your house after putting so much of yourself into it can feel devastating, and that’s not to mention the ugly marks it will leave on your credit. Nobody wants to deal with foreclosure, but luckily there are some things you can do to avoid it. In our latest post, we will help you learn how to stop foreclosure of your house in Phoenix.
When it comes down to it, most lenders would rather work with you to get back on track then put the house into foreclosure. While the process isn’t fun for you, it isn’t fun for them either. It is costly and time-consuming, and in many cases, leaving the lender with a loss. They will do what they need to, to recoup their costs, including working with you to find a solution. When you first realize you are going to have trouble with the mortgage payment, reach out to your bank. If you are behind on your payments, you will likely be able to work out a repayment plan. If you think that paying your mortgage is going to be difficult going forward due to new circumstances in your life, you may want to stall the foreclosure and sell the house while you still can.
A fast sale of your house can help you to quickly pay off your mortgage, without any negative marks on your credit. Listing your house in Phoenix doesn’t necessarily guarantee your house will be sold quickly. Selling in this manner can take months, allowing the bank to foreclose on the house while it is listed.
On the other hand, a direct sale to The Trusted Home Buyer will allow you to sell your house quickly and for a great price. Working with our team will let you choose the closing date that works best for you so that you can sell the house outright before the bank comes knocking. Our process is fast, convenient, and always fair!
Another way to sell your house fast in Phoenix to avoid foreclosure is by using a short sale. A short sale occurs when your lender agrees to take a lower offer for the house, just to save them the time and money of reselling it themselves. To do this you must apply to your lender’s short sale program and meet the necessary requirements. You’ll need to run a BPO or Broker Price Option, to help you determine the fair market value for the property.
When you declare bankruptcy, the bank will be forced to stop any collection activity against you, including the foreclosure of your home. That said, you will still be responsible for your debts. The bankruptcy court will work with you to set up a plan of repayment. Declaring bankruptcy doesn’t look very good when trying to borrow money in the future, so make sure it is the right choice for you before signing any paperwork.
No homeowner wants to have their house taken out from under them. If you are behind on your mortgage, don’t fret. There are ways to avoid foreclosure and sell your house before the bank begins the foreclosure proceedings against the property.
Do you need to sell your house in Phoenix? Learn how you can take the emotion out of selling in our latest post!
Selling your house in Phoenix isn’t always easy both literally and emotionally. If you have lived in the home for a long time, you will likely feel very attached to the property, even if you know it’s time to move. It can be difficult to remove your emotions from the process, treating the transaction as nothing but business. While it’s great to think back on your house fondly, by removing some of the emotion, you will be able to make the transition much easier.
When you keep your focus on the next chapter, selling your property can be a bit easier. Think about all your gaining and what a new fresh start in a new home will mean for you. While you may have many memories tied to your current home, you are sure to many many wonderful memories in the next place you live.
You can also remind yourself of why you are selling. Maybe the house is too large after the kids have all moved out. Maybe the property is too small for your growing family. Maybe you have an excruciating commute you will get to leave behind. While the selling process may feel difficult, if you remember why you are doing it in the first place, things will progress much easier.
If you have a lot of fond memories of the home that you would like to hold onto, taking photos and storing them digitally can help make remembering special moments easier. You can gather up photos and videos taken in the home throughout the years, storing them all in one place to look back on whenever you want. This can also help if you are downsizing. By photographing items you won’t have room for in the next place, you’ll be able to remember them, without having to physically be there. Another idea is to create a journal, filled with stories of some of the great memories made in the home.
Long before your actual moving day, packing up personal items and storing them away can subconsciously reduce your attachment to the home. It will feel less and less like your home and more like an empty space. This will help if you are listing and want to declutter and also when you do actually move, your belongings will already be packed. Of course, you don’t want to pack away anything you need. Also, keep in mind that if you are listing your house, the process could take a while. Selling directly to The Trusted Home Buyer will make things move much more quickly, helping to rip the bandaid off instead of dragging out the process.
When you own a property you truly love and are in a position where you need to sell, you may overprice it based on what the property is worth to you not the actual real estate market. You can call a pro to help you get an accurate estimate of what your house is really worth in Phoenix. While you may disagree with the number, knowing it will help you save some trying and energy trying to sell a house for more than its worth.
When selling a house in Phoenix, removing your emotion and treating the process as a business transaction will ultimately make things easier for you.
