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How does it feel to own a house without any debt? Is it worth paying off the debt? Just curious.
It is an incredibly secure feeling. You know that if your job goes away you still have a roof over your head. Not to mention freeing up your income for other things. I will never have another mortgage.
It is an incredibly secure feeling. You know that if your job goes away you still have a roof over your head. Not to mention freeing up your income for other things. I will never have another mortgage.
I've started looking up what people owe on their houses. It's one clue to me on whether the price will likely drop or is negotiable. People who bought at the peak don't have much-- if any-- wiggle room. And, since I'm decidedly NOT buying at the peak, I don't want to pay their peak prices.
That said, I'm not checking out the mortgage info looking for a "deal." If it's a nice house and I want it, I'd offer the same amount I'd offer on house that still has a mortgage.
My observation is that homes that are paid off are priced more realistically to begin with. Or they drop to that level fairly quickly rather than hovering in the 2005 stratosphere.
The poster who said you hold all the cards is right. Screw what the buyers know. You know your selling price.
I dont ever go to the negotations table without having not only an fairly accurate figure that the seller owes on their home, but what their other total debt liabilities look like. It dictates how flexible the seller can be, and more importantly, how desperate they are to sell. If they paid $100K last year, and want $105K for it this year, thats one thing, but if they just bought another home for $100K, and they are trying to unload their other home for $100K, that they owe $50K on, I have wiggle room during the negotiations to know that they have $50K worth of equity, and another pressing mortgage to pay. If their other home is paid off, that also tells me that they are in no hurry and that the negotations can be a slow time consuming process.
Me also if I'm interested in a house to put an offer in, than I want to know as much as possible about the financial situation and liens, HOA issues, etc... It also prepares you for what you can expect and how anxious they are to sell, and if they are doing a short sale or not, etc....IMO every buyer should either have the realtor do that for them or do it them self...due diligence!
If you buy a car you want to know the history about the car...was it in a accident and more....this is a transactions that is way more expensive and the more you know the safer you are.
mortage free homes have more wiggle room, but on the flip side owners usually don't have to sell and will hold out for their price longer. So, you can't necessarily deal more.
If you know a home is paid off, it seems the only thing you are able to rule out is that a mortgage is not putting financial pressure on the seller. There may still be financial pressure to sell, but due to other factors.
My point is that, while this information MAY be valuable, focusing on the mortgage position of the seller is a diversion. The buyer's attention should be placed on an accurate assessment of the true market value of the house.
You are buying the house, not assessing the stability of the seller as a room-mate.
If you buy a car you want to know the history about the car...was it in a accident and more....this is a transactions that is way more expensive and the more you know the safer you are.
In this case you're buying the house, not the mortgage, so that's an illogical comparison. The sellers' mortgage ends once the sale goes through. (unless, of course, you are buying the mortgage, too, along with the house, but that's another issue)
Is the balance and status of a mortgage public information? If so, I'm appalled.
Is the balance and status of a mortgage public information? If so, I'm appalled.
The balance isnt public, but the mortgage itself is. Its recorded in the recorder of deeds office as a lien against the property. One can look at this document and get a fairly accurate estimate of the balance of the mortgage. The same office will also list other properties owned by the seller, so you can easily research if they bought another home and need to sell the one listed..
IMO, this info isn't of much use. Someone with no mortgage can be desperate to sell. There's no way to know a seller's financial position. I know someone that bought a house cash 2 years ago. He's selling now at a loss. It isn't affecting him financially as he's very secure. Some helpful info could be if it's a short sale. No one really knows all the details unless the seller reveals them.
We will be an all cash buyer with the next home we buy. We will be retiring and do not want to deal with a mortgage.
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