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Wow. I had no idea this was public info.
We just paid off our mortgage recently as well. We are also very weary of any kind of debt/loans.
We do not have to sell it in order to move to a new home, but we would prefer not to be landlords at this time.
So we would be very open to any reasonable bid.
We'd like to take the $ and invest elsewhere.
OTOH rental income would be good too as long as we can find a good prop. management co. to manage this property.
For some reason I always thought this info was only available to lending institutions ...
What you paid has far more impact to the negotiation than does what is owed. Most realize a seller doesnt want to sell for less than they bought. Sometimes that happens but in cases of long holds it is normally a level of how much profit the seller will accept. You do hold the cards with what you will do but you need to be aware of what the same money can buy in your market. Have an agent search for parameters like yours home $xxxk, size, age, and see how many come up if there are a lot then you are likely over priced, if there are a few under priced. Price it as you would want to see it for what it has to offer and compared to what that much money can buy.
Knowledge is power so I would always want to know anything especially if seller was clear of mortgage.
Doesmt mean which way they will go ( tight or wiggle room) but it gives you an idea.
REMEMBER, BUYERS AGENTS PROFIT MORE FROM HIGHER PRICES SO ALWAYS BE INVOLVED DIRECTLY WITH WHAT IS GOING ON
ace golfer,
It is always better to be free and clear.
If you do the math you only get a % of the interest you pay AND THAT AMOUNT DECREASES EACH YEAR.
But actually do the math and see how much interest you DONT pay vs. what you get back.
There might be some exceptions such as if you need the mortgage deduciton because you have so many other deductions that you need it to put you over the threshold. ....but even so do the math.
So if one has the mortgage paid off, and wants to sell the home...is it good or bad for the buyers to know they owe nothing?
Bad perhaps that theybuyer will think they can drop the price to nothing, yet having the home paid off would allow the seller to to hold the home indefinately or simply keep it as a second home.
Is it better if the buyer thinks the homeowner is stuck in a loan and could not lower selling price due to not being able to pay off the mortgage?
So what say thee buyers.....do you feel more power knowing the homeowner owes nothing on their home, or the homeowner is stuck in a huge mortgage?
As an agent, I go to town or city hall to do a title search, and it is there that I find out what a proposed seller owes; and if working for the buyer, I find out what the seller owes as well. Right now, short sales are becoming prevalent because the seller is mortgaged out, usually more than 1 mortgage that pushed them over the edge so that they cannot pay back the bank(s) and cover closing costs. The whole thing, is a real hassle and has good and bad scenarios. I think it is human nature to want to bottom feed. Especially in these times. The thing about a property that is pre-short, is that the owner is not delinquent on mortgage payments, but at the same time, may come up short on closing costs. When the buyer signs an agreement to work with an agent, most times the commision comes from the seller, and that's always been the standard. But if you really read the wording, it really says that the buyer is responsible for the agents commision. So, in the case of a distressed situation vs. a paid off mortgage, if buyers really understood this, they would actually be greatly pleased to work with a seller who is paid up. What ignorant people think (with agents who don't really understand all this) is that they are really going to go in for the kill, but instead end up having to pay the 2-2.5% out of pocket, unless, again, they have an agent that knows what is going on, and they can negotiate that up front in the offer price.
There is no one answer to your question, you just really have to understand what is happening in the market, and play it scenario by scenario...
As an agent, I go to town or city hall to do a title search, and it is there that I find out what a proposed seller owes; and if working for the buyer, I find out what the seller owes as well. Right now, short sales are becoming prevalent because the seller is mortgaged out, usually more than 1 mortgage that pushed them over the edge so that they cannot pay back the bank(s) and cover closing costs. The whole thing, is a real hassle and has good and bad scenarios. I think it is human nature to want to bottom feed. Especially in these times. The thing about a property that is pre-short, is that the owner is not delinquent on mortgage payments, but at the same time, may come up short on closing costs. When the buyer signs an agreement to work with an agent, most times the commision comes from the seller, and that's always been the standard. But if you really read the wording, it really says that the buyer is responsible for the agents commision. So, in the case of a distressed situation vs. a paid off mortgage, if buyers really understood this, they would actually be greatly pleased to work with a seller who is paid up. What ignorant people think (with agents who don't really understand all this) is that they are really going to go in for the kill, but instead end up having to pay the 2-2.5% out of pocket, unless, again, they have an agent that knows what is going on, and they can negotiate that up front in the offer price.
There is no one answer to your question, you just really have to understand what is happening in the market, and play it scenario by scenario...
You can only find out the original mortgage amount not what is currently owed. That is why the title company always needs to contact the mortgage holder prior to closing for a pay-off amount.
I also don't understand where you come up with the buyer paying 2-2.5% out of pocket. It must be really different where you are because unless it is specifically written (added) into our P&S agreement then there is no way the buyer is paying the commission.
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