Answers by AJ & Courtney Ackerman

Not much you can do about being on a busy road. I think its important to undersatand that this doesn't necessarily hurt the value, it limits the amount of buyers that could be interested. 4 things sell a home. 1. Place 2. Product 3. Promotion 4. Price Your place will come into consideration when buyers compare your home to others. So it doesnt hurt resale value but it would likely be less valuable than a similar home in a different location. So when you look at comparables or value of the home. DO your best to determine the value difference between your lot and the other comparables. Hope that helps.

Carlos, I'd start by looking at the numbers and what you're trying to accomplish with the investment. Both can be good rentals, but there are some pretty big differences. With a condo, you may have less exterior maintenance to worry about, but you're also relying on the association to manage the building and its finances. I'd pay very close attention to HOA fees, reserves, potential special assessments and especially rental restrictions. Some communities limit how often you can rent, require approval of tenants or have waiting periods before you can lease. With a single-family home, you'll generally have more control, but you're also responsible for the roof, yard, exterior and all the maintenance that comes with it. I'd also research rental demand in the specific neighborhood. What are similar properties actually renting for? How long are they sitting vacant? Who is your likely tenant? And don't forget to run the numbers with realistic expenses, including insurance, taxes, repairs, vacancy and property management if you plan to use one. Personally, I wouldn't choose one over the other just because it's a condo or a house. I'd choose the property that makes the most sense financially, has strong rental demand and carries risks I'm comfortable with. Especially for your first investment, you want to understand what you're getting into before you buy.

Do you plan to use the same agent or interview different ones in the Spring? When it comes to contracts, it will all depend upon what it says. This is a mutual agreement between you and the broker. Did you already list the home for sale or is this before? Need more info to truly help you out here. Thanks

Hi Rowan, First, I'm sorry you're having to go through all of this. I'm sure trying to take care of your parents and dealing with the financial side of things at the same time is stressful. There are a few things I would focus on right away. First, make sure you have everything in place legally to sell the home. Can your parents sign the paperwork themselves or are you going to need a power of attorney? I would get that figured out with a title company or real estate attorney before doing anything else. I would also check with an elder law attorney if your parents are receiving or may need Medicaid assistance, because selling the home could affect their eligibility. Next, I would find a good local agent and explain your situation. Let them know that time is important, but you also want to make sure you're getting a fair price for the home. I would have them put together a market analysis showing what similar homes have sold for recently, what's currently for sale, and what they believe the home could realistically sell for in today's market. And personally, I wouldn't spend a bunch of time or money making improvements unless they really make sense. Sometimes cleaning things up, removing clutter, taking care of a few small items, and pricing the home correctly can make a big difference. You also have the option of selling the home as-is or directly to a cash buyer. That could potentially save you some time, but keep in mind those buyers are usually looking for a discount. I would actually compare both options before making a decision. One thing I would be careful about is accepting an offer just because someone says they can close quickly. Make sure they have the funds, understand their contingencies, and can actually close when they say they will. As far as what can slow things down, it's often things like title issues, missing paperwork, pricing the home too high, unexpected repairs, or a buyer having financing problems. Here's what I would suggest doing right away. Get the legal paperwork figured out, have a local agent evaluate the home, and ask them to show you two scenarios. What could we realistically sell the home for if we listed it on the open market and priced it to sell quickly? And what could we get from an as-is cash buyer who can close in a shorter timeframe? Then compare what your parents would actually walk away with and how long each option would take. I would also ask the agent to put together a simple plan with a timeline so you know what needs to happen and when. You don't necessarily have to give the house away to sell it quickly. You just need a good plan, realistic pricing, and the right people helping you get everything done. The goal is to get your parents the money they need as quickly as possible while protecting as much of their equity as you can.

Hi Elise, I think you're asking a really good question, and I understand your concern about an agent suggesting a higher price just to get your listing. Unfortunately, that can happen, and you really want to make sure you're getting good information before making such a big decision. I would start by asking each agent to walk you through how they came up with the suggested value of your home. Not just give you a number, but actually show you the homes they're comparing yours to and explain why. When I put together a Comparative Market Analysis (CMA), I actually try to look at the home from an appraiser's point of view. Now, we're not appraisers, but I do believe an experienced agent who understands the local market can give you a pretty good range of what your home is worth. Personally, I like giving sellers a range rather than one specific number. Kind of a worst case to best case scenario based on the current market and trends. I like to look at three things. Active listings, pending sales, and homes that have actually sold. Ideally, I like to focus on the last 3 months if there are enough comparable properties available. Active listings tell us what you're competing against. Pending sales help us understand what buyers are choosing right now, although we may not know the actual contract prices yet. And sold properties show us what buyers have actually been willing to pay. Of course, so much depends on your home's location, condition, updates, and the type of property. Sometimes we have to expand the search to find the right comparable homes. The reason I like giving a range is because it gives you options. We can look at the market, discuss your goals, how quickly you want or need to sell, and decide on a pricing strategy together. Now, as far as interviewing agents, there are a few other things I would pay attention to. I would ask about their recent listings. How long did they take to sell? Did they have to reduce the price? How close did they sell to the original asking price? And more importantly, can they explain why? I would also ask what their plan is if your home isn't getting showings or offers in the first few weeks. How will they evaluate what's happening and what adjustments might need to be made? Another good question is what they believe could negatively affect your home's value. I actually think that's a really important one! You want someone who can point out potential challenges, not just tell you everything that's great about your house. And ask how they plan to market your home, how often you'll communicate, and whether you'll be working directly with them throughout the process. As far as credentials, I wouldn't get too caught up in all the letters after someone's name. Experience, local market knowledge, and the ability to explain the numbers are much more important to me. One thing I would definitely be careful about is choosing the agent who gives you the highest suggested value. Just because someone tells you your home is worth more doesn't mean buyers are going to agree. And don't overlook personality! You're going to be working closely with this person, and you want someone you like, trust, and feel comfortable having honest conversations with. My advice would be to interview two or three agents and have them walk you through their recommendations. Pay attention to whether they're asking questions about your goals, explaining the market, and helping you understand your options. You don't need someone who promises you the highest price. You need someone who gives you the information, guidance, and confidence to make the best decisions throughout the process.

Hi Marisol! I would probably start by looking at the numbers before deciding which direction to go. First, what would the property realistically sell for in its current condition? Then, what could it sell for with some updates? And most importantly, would those improvements actually put more money in your pocket after all the expenses? I wouldn't automatically assume you need to update everything before selling. Sometimes selling a property as-is makes a lot more sense, especially when you're already dealing with increasing HOA fees, insurance, and the challenges of owning a rental out of state. As far as selling off-market versus listing with an agent, I would look at both options. Selling off-market might be quicker and easier, especially if you find an investor willing to purchase the property as-is. But remember, investors are typically looking for a discount because they need to make money too. Listing the property gives you exposure to a much larger pool of buyers, which can make a big difference in what you ultimately walk away with. And just because you're out of state doesn't mean you need to be there for the entire process. A good local agent should be able to help coordinate vendors, photos, showings, inspections, and much of the transaction remotely. Here's what I would do. Find a good local agent, have them put together a market analysis showing what the property could sell for as-is versus updated, and ask them to estimate your net proceeds after all selling expenses. Then compare that with an actual off-market offer. You might find that selling off-market makes perfect sense, or you might discover that exposing the property to the entire market could put considerably more money in your pocket. I wouldn't focus so much on which option is easiest. I'd focus on which one gives you the best combination of price, convenience, and certainty.

Before I can truly help, it would be good to know if you are using an agent, going directly to listing agent or making offers to unlisted homes? Sounds like these are listed. Let me know and then maybe I can offer some advice tailored to your situauton

Hi Juniper! I can see why you're considering keeping the condo, especially with a 4.5% interest rate. That's a pretty attractive rate compared to what you'd be paying on a new mortgage today. But I wouldn't make the decision based on the interest rate alone. The first thing I would do is look at what the condo would actually cost you to keep as a rental. You mentioned the rent would cover most of the expenses, but that's where I would be a little careful. You really want to account for everything. Mortgage, taxes, insurance, HOA fees, maintenance, potential assessments, vacancies, and possibly property management. Condos can be a little tricky because you don't always have control over increasing HOA fees or unexpected assessments. Then I would look at the other side. What could you realistically sell the condo for today, how much equity would you walk away with after selling expenses, and what difference would that money make toward your new home? For example, if selling the condo allows you to put considerably more money down on your new home, how much would that reduce your monthly payment at today's higher interest rates? And don't forget about the potential tax implications. Depending on how long you've lived in the condo, you may qualify for a capital gains exclusion when selling your primary residence. That's something I would definitely discuss with a tax professional before converting it to a rental. Personally, I like the idea of holding onto real estate long term, especially when you have favorable financing. But I also believe the numbers need to make sense. Here's what I would do. Run both scenarios over the next five years. One where you sell the condo and use the proceeds toward your new home, and another where you keep it as a rental. Compare the monthly cash flow, equity, expenses, and what your financial position could look like in five years. You might find that keeping the condo is a great long-term investment, or you might discover that selling it puts you in a much stronger financial position today. I wouldn't keep a property just because it has a great interest rate. I'd keep it because it makes sense as an investment.

I've been selling real estate since 2009, and what I've found works really well, especially with buyers relocating from out of state, is asking a lot of questions upfront. What kind of lifestyle are you looking for? What are your goals? What's important to you? What do you want your day to day life to look like? From there, we create a home search directly from our local MLS that's slightly broad to start. I have buyers go through the homes and mark them with a thumbs up, thumbs down, or even LOVE IT! This helps me learn what they like and don't like, and we keep narrowing things down from there. I think it's great that you created a spreadsheet. I've worked with buyers who do the same thing. Some people just prefer to be more organized and detailed with their research. I will say though, I believe the best researcher is often the buyer. Nobody knows your lifestyle, wants, needs, and preferences better than you do. My job is to help narrow things down, answer questions, share local knowledge, identify potential issues, and point out things you may not even know to look for. The whole idea is to do as much research as possible upfront so that when you're ready to visit and look at homes, we've already narrowed things down considerably. Buying from out of state requires a lot of communication and guidance. It should be a collaborative process, and you should absolutely be involved in the research, but you shouldn't feel like you're doing everything yourself. I'd have a conversation with your agent about expectations and what you need from her. If things don't improve, she may simply not be the right fit for you.

Hi Christine! A lot of this is going to depend on the terms of your contracts. Typically, the buyer pays for the appraisal, but if your current home hasn't sold yet, I would try to avoid spending that money until it's necessary. Your lender should be able to help you understand the timing. As far as your earnest money, if you have a home sale contingency and follow the terms and deadlines in your contract, you may be entitled to get your deposit back if your home doesn't sell. Just make sure you understand those deadlines because they're important. You can also change agents and potentially make another offer on the same home, but you'll want to make sure you're properly released from any existing agreements first. Regarding your current home, I would focus on why it hasn't sold. Is it priced correctly for today's market? Is it being marketed properly? Are you getting showings and feedback? Sometimes the issue is the agent, but sometimes it's simply the price or market conditions. Here's what I would do next. Before spending any more money or making changes, ask your agent to sit down with you and review both contracts. Get clear on your home sale contingency deadline, when the appraisal needs to be ordered, and exactly what happens to your deposit if your home doesn't sell. Then ask for an updated market analysis and a specific plan to get your current home sold. Not just what they've been doing, but what they're going to do differently moving forward. If you're still not comfortable with the answers or the plan, I'd speak with the agent's broker about your options before making any changes. The important thing right now is protecting your deposit, understanding your options, and getting a clear plan in place.

That's a tough situation, especially after putting money into the home and now looking at selling for less than you paid. I would probably start by asking you a few questions. Do you actually want to live in the house again? How much did the airport noise bother you when you lived there? And have you looked into what it would cost to soundproof it and how much of a difference that would really make? I would also want to look at the numbers a little closer. What could you realistically sell it for today? What would your actual loss be after all the expenses? And since you've had a tenant for three years, does renting it out again make sense financially? Just because your tenant moved out doesn't necessarily mean you need to sell. One thing I would be careful about is spending more money trying to fix something you can't really change. You can improve the windows and insulation, but that airport and flight path aren't going anywhere. And I definitely wouldn't move back in just because you don't want to take a loss. I'd move back in because I actually wanted to live there. I'd really look at all three options. Sell it, rent it again, or move back in. Then compare the numbers and what each option means for your lifestyle. One question I would have for you is, if you didn't already own this house, knowing everything you know today, would you buy it again at its current market value? I think your answer to that might help you make the decision.

Hi Carlos! I would start by looking at what similar homes have actually sold for recently. Not just what other sellers are asking, but what buyers are actually paying. That's going to give you a much better idea of what this home is worth. I wouldn't assume that just because it's been sitting for 90 days the seller is desperate to sell. Some sellers are motivated, others are perfectly comfortable waiting. Here in Southwest Florida, depending on the area and price point, it's not uncommon to see offers come in 5% to 10% below asking price. But it really depends on the market and the individual property. What's interesting is that we're seeing homes sell for around 97% of their asking price. We have quite a bit of inventory, so buyers have choices. And when a home is priced well, buyers are still buying! It's often the overpriced homes that sit. One thing I always like to do is have a conversation with the listing agent before putting an offer together. You can learn quite a bit just by asking a few questions. What's important to the seller? Are they flexible on closing? Have they received any offers? Sometimes you can find opportunities that have nothing to do with price. From there, I'd put together an offer that makes sense based on the condition of the home and recent sales. And remember, price is only one part of an offer. A strong preapproval, reasonable inspection period, and a closing date that works for the seller can all help. I also wouldn't be afraid to make an offer below asking if the numbers support it. You're not insulting anyone by making an offer based on what you believe the home is worth. My advice is pretty simple. Know the numbers, find out what's important to the seller, and put together an offer that makes sense for you. You can be a serious buyer without agreeing to pay more than you think the home is worth.

Hi Walton! First, congratulations on being in such a great financial position heading into retirement! I actually like the way you're thinking about this. You've worked hard, built assets, and now you want to enjoy the fruits of your labor while you're both healthy enough to do it. But I would look at a few things before deciding on a reverse mortgage. The biggest thing to understand is that a reverse mortgage isn't free money. You're borrowing against the equity in your home, and the interest and fees can add up over time. Even though you typically aren't making monthly mortgage payments, the loan balance continues to grow. Now, since you don't have children you're planning to leave the property to, preserving every dollar of equity may not be your biggest priority. And that's perfectly fine! But you mentioned something that really caught my attention. You have three paid off rental properties and other income that's already covering your expenses. That gives you options! Before putting a reverse mortgage on your primary residence, I would compare that with selling one of the rentals, using some of your existing investments, or simply budgeting more of your current income toward enjoying retirement. Each option has its own advantages, costs, and tax considerations. And remember, with a reverse mortgage you're still responsible for property taxes, insurance, maintenance, and meeting the loan requirements. My advice would be to sit down with a financial planner and compare the actual costs and long-term impact of each option. I'd also speak with an independent reverse mortgage counselor so you fully understand how the loan works. I wouldn't rule out a reverse mortgage, but I wouldn't jump into one just because you have a lot of equity either. You've put yourself in a position where you have choices. I'd focus on finding the option that allows you to enjoy your retirement without unnecessarily complicating what you've already built. And absolutely, make the time to travel and enjoy life together! That's part of what you worked so hard for.

Hi Patti! I think one of the biggest things to watch right now is inventory. In a lot of markets, buyers have more homes to choose from, and that's changing how homes are being priced and sold. I would also pay attention to how long homes are sitting on the market, how many sellers are reducing their prices, and what homes are actually selling for compared to their asking price. But here's something I find really interesting right now. Affordability! We recently looked at our market here in Southwest Florida and realized that median home prices in some of our areas are back to where they were in late 2021 and early 2022. Sounds great for buyers, right? Well, not exactly. Mortgage rates are roughly double what they were in late 2021, and the Consumer Price Index (CPI), which measures inflation, is about 20% higher than it was back then. Add in higher insurance, property taxes, and other expenses, and buying that same priced home today can cost considerably more each month. So here's the big question I've been asking. Where does affordability take us from here? Do home values need to come down further? Will lower interest rates eventually help? Will incomes catch up? Or will it be some combination of all three? Here in Southwest Florida, we've seen values decline from their 2022 peak, but I don't believe we've officially seen the bottom of this market yet. How much further prices may go is really hard to predict. And what's interesting is that homes priced correctly are still selling! Buyers are out there, but with more inventory to choose from, they're being much more selective. I think the most important thing to understand is that real estate is very local. What's happening here in Southwest Florida could be completely different from what's happening in Houston. My advice would be to watch inventory, recent sales, price reductions, days on market, and especially affordability. Those are the things I believe will help tell us where this market is heading next.

Hi Julian! I think one of the most important things is finding someone you like, trust, and feel comfortable working with. You're going to be spending a lot of time communicating with this person, and there may be some tough conversations along the way. You want someone who is going to be honest with you, not just tell you what you want to hear. I would definitely look at experience and how well they know your local market. Ask them to walk you through what homes like yours are actually selling for, how long they're taking to sell, and how much competition you have. And yes, ask about their marketing plan! What are they actually going to do to get your home sold? How are they going to make your home stand out from the others? How often will they communicate with you and give you feedback? One thing I would be careful about is choosing the agent who gives you the highest suggested listing price. Just because someone tells you your home is worth more doesn't mean buyers are going to agree. I would also ask what their plan is if your home doesn't sell in the first 30 days. That's an important conversation to have before you list, not after you've been sitting on the market wondering what's going on. And of course, discuss commission, what's included, and make sure you understand the agreement you're signing. Personally, I would interview two or three agents. Pay attention to how they communicate, whether they're asking you questions about your goals, and if you feel comfortable with them. At the end of the day, you're hiring someone to help you make some pretty big financial decisions. Experience, knowledge, communication, and trust are what I would be looking for. Not just who has the most reviews or promises the highest price.

Not necessarily. It really depends on what you're signing. Yes, agents are generally required to have a written buyer agreement before showing you homes, but that doesn't mean you have to commit to working with someone for 3 or 6 months. You can ask to sign an agreement for just one property, a single day, or even a week while you get to know each other. Personally, I think that's completely reasonable. You're making a pretty big decision, and you want to make sure you're working with someone you like, trust, and feel comfortable with. I would just have that conversation with the agent. Tell them exactly what you said here. You'd like to look at a few homes and see how you work together before making a longer commitment. Just make sure you understand what you're signing, especially how long the agreement lasts, whether it's exclusive, how compensation works, and what happens if you decide not to continue working together. And remember, this is a relationship that needs to work for both of you. I wouldn't want someone working with me because they felt locked into a contract. I'd want them working with me because they felt I was the right person to help them buy a home.