Refer CNN 12-14-17 In the new tax cut law before congress, the mortgage interest deduction threshold — dropped to $500,000 in the House and left untouched in the Senate — would be set at $750,000.

Refer Bankrate 12-02-17 Taking a mortgage interest deduction at tax time has long been touted as a means of encouraging homeownership, but soon you may no longer able to.

Under current law, homeowners can itemize and deduct the interest paid on their mortgages up to the first $1 million, if their loan is used to buy or improve a first or second home. The Tax Foundation says this is the third-most popular itemized deduction, and real estate industry professionals say it’s a much-needed incentive to encourage homeownership.

But with the Republican tax reform bill on brink of passing Congress, the mortgage interest deduction may be changing soon, and it could have major implications for your taxes.

What they want to change

The version of the Tax Cuts and Jobs Act passed by the House reduces the amount of mortgage interest that can be deducted from your taxes from the first $1.1 million of your loan to the first $500,000. It also would put an end to allowing a mortgage interest deduction on a second home, which the current law permits.

Advocates for these changes say it will encourage more people to use the standard deduction, which the new plan aims to increase, and thus simplify things at tax time. Homebuilders and realty associations decry these changes, saying that it will discourage homeownership, which in turn could have a negative financial impact for many.

“Our major concern is less incentive to buy a home, which could mean lower homeownership rates in America,” says Lawrence Yun, economist for the National Association of Realtors. “Given that home values have always provided an opportunity to build wealth, we may see greater wealth inequality in the future.”

What this change could mean for you

If the House’s version takes hold, halving the mortgage interest deduction is more likely to benefit future homebuyers in less expensive areas. But in major metropolitan areas, homes under half a million dollars are harder to find, and the change is likely to penalize those who can afford pricier housing.

The Senate’s version of the act, which is still being ironed out, preserves the deduction on the first $1 million paid on mortgage interest. However, it eliminates the deduction you can currently take for interest paid on home equity debt. This version is less likely to disrupt the status quo.

Geographically skewed

In 2017, nearly 10 percent of all purchase loans were over that $500,000 threshold. That works out to about 215,000 purchase loans so far in 2017, according to Daren Blomquist, senior vice president of ATTOM Data Solutions.

If you’re in the market for a home, you’ll probably be in the 90 percent who spend under the threshold. But that will depend on where you live.

“It will disproportionally impact certain areas. Certain homeowners need to be cognizant of this,” says Blomquist.

For example, most major metropolitan areas and coastal regions are pricier to live in than other parts of the country and are less likely to have homes priced under $500,000. Blomquist cites California as an example, where as many as 31 percent of the mortgage loans in the state are for amounts above that $500,000 threshold.

Is this a big deal?

Although real estate groups and the home-building industry have argued vociferously against changing the mortgage deduction, it’s likely that any change isn’t going to make or break your decision to purchase a home.

“I don’t think it’s going to affect how consumers are going to buy homes whatsoever,” says Michael Seward, owner/broker of a real estate company in Palmer, Massachusetts. “When people buy a home they don’t do so because they’re getting a mortgage deduction.”

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net

If you have been watching the news, you have heard about proposed tax reform, and the fact that they may remove the mortgage interest deduction. You may be wondering how this is going to affect the housing market. Forbes says that the real state industry is going to be just fine. Refer Forbes Nov 6, 2017. The process of tax reform has officially started with the release of the first draft of the House tax reform bill, dubbed the Tax Cut and Jobs Act. The National Association of Realtors and the National Association of Home Builders almost instantly came out in opposition to the plan because of two changes that will limit the deductibility of mortgage interest. NAR President Warren Brown said, “The nation’s 1.3 million Realtors® cannot support a bill that takes homeownership off the table for millions of middle-class families.” Yet, contrary to their worries, the real estate industry will be just fine under the proposed reforms.

At this point the House Republican tax reform proposal does three things that the real estate industry doesn’t like. First, it limits the mortgage interest deduction to $500,000 (down from a million) and to primary residences only. Second, it doubles the standard deduction, which would reduce the number of households that would need to bother with the mortgage interest deduction. Finally, the plan places some more stringent limits on who can claim the capital gains exclusion when selling a house and how often.

Each of these changes somewhat limits the tax advantages that have been conferred on homeowners, especially homeowners who use debt to finance their home purchases. To listen to the lobbyists for the real estate industry, these changes will be the end of the industry, plunging the housing sector back to the depths it experienced in the recent recession. Yet, the math just doesn’t add up on those claims. Let’s take a look at the numbers.

About 64% of Americans own a house. Roughly two-thirds of those homeowners have a mortgage. Only 6% of all mortgages are for $500,000 or more. Put all those numbers together and you will find that home builders and realtors think their world is ending over policy changes to the mortgage interest deduction that impact only about 2.5% of American households. Plus, existing mortgages are grandfathered in, so anyone who purchased a home expecting the deduction will continue to enjoy it. The number who won’t take advantage of itemized deductions anymore is somewhat larger, but still a small minority of households as many homeowners already used the standard deduction.
While it is certainly true that there are some locations where a significantly higher share of home buyers will be impacted, it is also true that the mortgage interest deduction is not being restricted in a vacuum. Yes, a few million American households may soon only be able to deduct interest on the first $500,000 of new mortgage debt. However, these are high-income households and they will likely find themselves paying less in taxes overall under the Tax Cuts and Job Act as currently proposed.

Similarly, doubling the standard deduction means fewer people will itemize, meaning fewer will use the mortgage interest deduction. Importantly, those households that stop itemizing are doing so because the newly enlarged standard deduction provides them a lower tax burden. Households that have more after-tax income have more money to spend on houses, mortgage payments, and everything else in the economy.

Housing is not being made unaffordable by the proposed tax reform since the vast majority of Americans will receive a moderate tax cut under the plan. Home builders and realtors seem concerned that a few rich Americans might not buy as expensive houses without as big a tax break, even though they will have more disposable income. I think they are wrong. Americans, particularly higher-income ones, like to buy stuff, especially expensive stuff, and will likely continue to buy expensive houses. If there is some adjustment in home buying demand on the higher end, high-end home builders can build more homes that are slightly less expensive. The world is not ending.

The key driver of demand for housing (rental or owner-occupied) is the number of households and the money those households have available to spend on housing. Tax reform will have no effect on household formation unless it is positive. Tax reform looks likely to leave at least 90% of Americans with more after-tax money to spend, so demand for housing (and everything else) should grow, not shrink. Housing depends much more on disposable income, the health of the job market, and Americans’ confidence in the economic future than it does on tax breaks. Don’t listen to the real estate industry; they will be just fine if the Tax Cut and Jobs Act passes.

Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.

Both the tax proposal from Speaker Paul Ryan (R-WI) and the plan from President Trump keep the mortgage interest deduction – the MID – intact, so isn’t that good for real estate? If the MID remains in place then isn’t everything wonderful on the real estate front?

In a word, no.

The issue with real estate and tax reform is very simple: what homeowners see as a benefit the government sees as an “expenditure.”

Your deduction versus Uncle Sam’s expenditure:
According to the Treasury Department, “tax expenditures are defined by law as ‘revenue losses attributable to provisions of the Federal tax laws which allow a special exclusion, exemption, or deduction from gross income or which provide a special credit, a preferential rate of tax, or a deferral of tax liability.’” In the period between FY2016 and FY 2025 major federal “expenditures” – what you and I call tax deductions – include such goodies as tax-free employer-funded medical plans ($2.74 trillion), capital gains ($1.06 trillion), mortgage interest ($948.5 billion), and property taxes ($486.9 billion).

“Right now real estate write-offs for mortgage interest and property taxes top $100 billion a year, while the government budget runs on an annual deficit, and adds to the country’s $19 trillion debt,” said Rick Sharga, executive vice president at Ten-X.com, the online real estate marketplace. “As you might guess, that $100 billion looks mighty attractive to the folks on Capitol Hill.”

The Trump and Ryan tax reform proposals treat residential real estate write-offs in two ways: The property tax deduction vanishes while the MID is made toxic, a deduction you most likely won’t want to touch.

Property taxes:
Under the tax reform proposals now on Capitol Hill, the property tax write-off would be completely gone. The 35-page Ryan plan states “to simplify tax filings further for middle-income families, this Blueprint reflects the elimination of all itemized deductions except the mortgage interest deduction and the charitable contribution deduction. These two provisions help accomplish two important goals that strengthen civil society: homeownership and charitable giving.”

Not to be outdone, the Trump proposal says, “we are going to eliminate most of the tax breaks that mainly benefit high-income individuals. Home ownership, charitable giving, and retirement savings will be protected – but other tax benefits will be eliminated.” According to CNBC, the one-page Trump plan “would eliminate tax deductions, with only a few exceptions, including the mortgage interest and charitable contribution deductions.”

What neither plan does is save property tax write-offs, a big expense, especially in high-cost states such as New York, New Jersey, and California. This is a problem for taxpayers who want the deduction and it’s also a problem because without federal write-offs there’s nothing to offset state and local tax increases. In the past politicians might have been able to say, “yes, we’re raising property taxes but that also means a bigger deduction for homeowners” while under the new plans – if one passes – local officials will only be able to glumly say “we’re raising property taxes and simply put you’ll have less money in your pocket.”

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.

I’m sure you have seen the stories on the news about the Equifax breach. Equifax is one of the oldest and largest credit-monitoring companies, aggregating information on over 800 million consumers.  The company provides detailed information about personal credit and payment history of individuals, indicating whether they are eligible to receive a loan.  In order to provide a full credit report, Equifax houses an enormous amount of sensitive data, such as full names, Social Security numbers, addresses, birth dates and sometimes driver’s license numbers.

Last week, Equifax revealed their data had been compromised during a cyber-security breach which occurred mid-May through July 2017.   Hackers gained access to personal information on 143 million American consumers.  Equifax also confirmed at least 209,000 consumers’ credit card credentials were taken during this attack.   This means that the opportunity for identity theft has tremendously increased for the majority of American residents.

We understand the seriousness of this attack and need you to realize how important it is to take action immediately and be pro-active so identity theft does not happen to you.

How can I be proactive? Help!

First, monitor your credit report for any suspicious activity.  Check to see if new accounts have been opened that you did not open, late payments on debt you do not recognize or fraudulent charges made on a card.  You can check your credit report free, once a year here.  If you suspect identity theft, contact the credit card company’s fraud department immediately.

For extra protection, freeze your credit with the three major credit bureaus.  This is the best way to prevent identity theft.  Once accounts are frozen, you will not be able to open new lines of credit or have your credit checked without lifting the freeze.  Contact each bureau immediately to freeze your account.  Or, request a freeze online.  Note: You will not be able to freeze your credit if you are currently pending a large purchase or financing activity.
•               Equifax:  1-800-349-9960
•               TransUnion:  1-888-909-8872
•               Experian:  1-888-397-3742

Equifax is offering free credit monitoring and identity theft protection to all who may have been impacted, for one year.  You may also enroll in Equifax’s program to see if you are one of the millions affected by the hack.  To get started, enroll here to begin.  The enrollment process must be completed by November 21, 2017.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.

Bet you thought the days of taking money out of a house were over, after the real estate crash. But with home values on the rise in America, cash-out mortgage refinances (frequently referred to as “cash-out refis”) are also surging.

But while more and more homeowners are taking cash out of their homes, they’re doing so in a rather cautious manner. In fact, some analysts say they’re pulling the most conservative amounts in American history.

Some of this is no doubt a conservative, cautious reaction to some very hard lessons learned by many prior to the historic housing crash of the previous decade, when millions of borrowers fell woefully “underwater” on their home loans and home prices plummeted. The end result was millions of homes landing in foreclosure, sometimes resulting in entire subdivisions and communities morphing into “ghost town” status.

Of course, lending standards have tightened since then, but borrowers themselves are also inherently more risk-averse in 2016.

The activity level, however, is quite high.

According to Black Knight Financial Services, a full 42 percent of mortgage refinances in the fall of 2015 involved borrowers taking cash out of their homes. That marked the highest such figure since 2008, per the Black Knight data and analytics division.

The average cash-out amount was more than $60,000, and the average loan-to-value ratio after the refinance was just 67 percent – which represents the lowest such figure on record. Borrowers also left 33 percent equity remaining in their homes, on average.

Black Knight analyst figures also revealed there were $64 billion in total equity tapped via cash-out refinances over the past 12 calendar months – the highest dollar amount for any equivalent 12-month period since 2008-09, when the American financial crisis truly began to deepen.

Consumers today are saving more than they were in recent years, even though the financial crisis was much deeper and more acute just a few years ago. According to the U.S. Department of Commerce, the savings rate in December of 2015 actually rose to the highest level in three full years. Spending remained flat during this same period.

The average credit score of borrowers who are opting for cash-out refinances is fairly high at 748 – suggesting many lenders are still quite risk-averse themselves.

The Federal Reserve has also played a strong role here, having kept interest rates at near zero for seven years up until the final days of 2015.

It all adds up to many borrowers deciding to take out home equity loans – but taking only what they need, and often taking out full amortizing loans. This means they start paying back those loans immediately, with monthly principal payments on top of interest.

Also of note is what many of these borrowers are using their home equity loans for. Rather than pricey, exotic vacations or luxury extravagances in the days prior to 2008, the equity is typically being used for necessities like home repairs, medical costs, and education fees. In other words, much more practical and utilitarian purposes than indulgent and extravagant splurges.

As a mortgage broker, we have a variety of innovative and flexible products to present to borrowers who are looking to execute a cash-out refinance on their homes.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.

I’m sure you’ve seen on the news that home prices continue to rise, and that it’s a sellers

Happy family with agent realtor near new house.

market.

Take the latest report from the National Association of Realtors which showed that the median sales price of existing homes rose to $253,800 in May. That’s up 5.8% year-over-year and the highest reading since last June ($247,000).

Given the steady climb in home prices, it’s only natural to wonder what the underlying cause is.

What Causes Home Prices to Rise

Supply and Demand

When it comes to home prices and what causes them to rise or fall, it all comes back to the basic economic principle of supply and demand.

When we’re talking about the housing market, demand refers to the amount of homes desired by buyers, while supply refers to the amount of homes available on the market.

When demand rises and supply shrinks, that’s going to cause home prices to shoot up, as it breeds fierce competition among buyers.

“A recent Zillow report had Las Vegas’ median home price 10.2% higher than last year which beats the national average of a 7.4% increase. Our prices are being driven up by a lack of inventory. Current listings in the MLS are less than a two month supply of homes. Homes that are in good condition, in desirable neighborhoods, and priced right are selling quick.”

What Rising Prices Mean for Homeowners and Homebuyers

Find out what’s happening in your local housing market

It’s important to note that housing markets vary drastically from region to region. While home prices have been rising on average nationally, there are varying degrees of increases and even some places where home prices have fallen.

Figuring out what the situation is in your local housing market is a crucial first step in deciding what kind of action you should take.

NPR recently published an article with an interactive map that lets users see how home prices have fared in different parts of the United States. Take a look at the map to easily get an idea of what has been happening in your neck of the woods.

In all likelihood, home prices in your housing market have gone up and are poised to go even higher. With prices rising and inventory down, we’re seeing that many homeowners think right now is a great time to sell.

In fact, just last week the Fannie Mae Home Purchase Sentiment index for June came in at 88.3, which matches the all-time high set in February. According to the report, 39% of Americans said that right now is a good time to sell a home (a new record high) and 30% said that right now is a good time to buy.

Selling your home

So if you’re planning on selling your home right now, it’s very likely that you will have no problem find a buyer. Just make sure to be on the hunt for a house to move to before you list because it’s possible you’ll be done with the sale sooner than you think.

Buying a home

For anyone planning on buying a home, it you will probably get a better deal if you act sooner rather than later. Not only are home prices continuing to move higher, but mortgage rates are also rising.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.

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I know, most people think that bigger is better. Statistics show that the average home is twice as big as it was in 1950. But, there is a lot to be said for a smaller house.

Review Your Lifestyle

Deciding how much space you really need begins with understanding your lifestyle. Are you active or a homebody? Do you entertain often and throw large holiday parties, or do you tend to go out? What about guests — do you have a large extended family that visits throughout the year, or do you do most of the traveling? Our spaces should be a reflection of who we are rather than what others expect us to be.

Understand Your Priorities

Large homes typically mean large maintenance commitments. Yard work, snow removal, window cleaning, painting, and housekeeping can all add up quickly.

If your time or your money is in short supply, consider how a large home might stress other areas of your life or tax your resources. Likewise, consider how much you enjoy maintenance tasks. Do you delight in all the responsibilities that come with owning a large home, or would you rather be free to pursue other activities?

Estimate Future Needs

Our lives are constantly evolving, and what works for us today may not work tomorrow. Do you plan on having a large family? Will you likely be responsible for the care of an aging parent or in-law at some point? Will your income in retirement be reduced to such a degree that the taxes and utilities on a large home might make it unaffordable? Understand how the changes in your life could affect your space needs down the road.

Benefits of Smaller Homes

Large homes can be dramatic and beautiful, but smaller homes aren’t without their charms (and benefits). Whether you’re building or buying small, here are some pluses to consider.

They’re Clutter-Busters

It’s tough to accumulate too much when space is at premium. Smaller spaces help control clutter by encouraging us to differentiate between wants and needs and filter the objects we surround ourselves with. If you have minimalist leanings, consider minimizing your square footage first — the rest will follow.

They Consume Less Energy

A smaller physical footprint usually equals a smaller utility bill. Smaller spaces with more modest room dimensions mean there’s less to heat and cool.

They’re Less Expensive to Build and Buy

The cost of building a new structure is usually driven by a combination of materials and labor. Smaller homes that are well-designed with an eye toward simplicity tend to be less expensive to build. Likewise, since the resale price of an existing home is dictated, at least in part, by square footage, smaller homes tend to be less expensive. Whether building or buying, reining in the square footage can help rein in your budget.

They Encourage Activity and Interaction

While it’s less obvious than the other benefits we’ve covered, smaller homes can promote activity and interaction between family members. In large homes, it’s easy to get lost in our own separate corners and, whether we intend to or not, become a bit isolated throughout the day. Smaller homes encourage socializing and communication through sheer proximity.

Of course, there’s no one-size-fits-all approach to space needs. Each family is different, and everyone’s priorities and lifestyles are unique. But as we build the next generation of houses and consider buying and remodeling older homes, maybe it’s OK to err on the conservative side of size. Maybe “less is more” overstates the case, but less may truly be more rewarding.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.

With home values on the rise in America, cash-out mortgage refinances (frequently

referred to as “cash-out refis”) are also surging.

But while more and more homeowners are taking cash out of their homes, they’re doing so in a rather cautious manner. In fact, some analysts say they’re pulling the most conservative amounts in American history.

Some of this is no doubt a conservative, cautious reaction to some very hard lessons learned by many prior to the historic housing crash of the previous decade, when millions of borrowers fell woefully “underwater” on their home loans and home prices plummeted. The end result was millions of homes landing in foreclosure, sometimes resulting in entire subdivisions and communities morphing into “ghost town” status.

Of course, lending standards have tightened since then, but borrowers themselves are also inherently more risk-averse in 2016.

The activity level, however, is quite high.

According to Black Knight Financial Services, a full 42 percent of mortgage refinances in the fall of 2015 involved borrowers taking cash out of their homes. That marked the highest such figure since 2008, per the Black Knight data and analytics division.

The average cash-out amount was more than $60,000, and the average loan-to-value ratio after the refinance was just 67 percent – which represents the lowest such figure on record. Borrowers also left 33 percent equity remaining in their homes, on average.

Black Knight analyst figures also revealed there were $64 billion in total equity tapped via cash-out refinances over the past 12 calendar months – the highest dollar amount for any equivalent 12-month period since 2008-09, when the American financial crisis truly began to deepen.

Consumers today are saving more than they were in recent years, even though the financial crisis was much deeper and more acute just a few years ago. According to the U.S. Department of Commerce, the savings rate in December of 2015 actually rose to the highest level in three full years. Spending remained flat during this same period.

The average credit score of borrowers who are opting for cash-out refinances is fairly high at 748 – suggesting many lenders are still quite risk-averse themselves.

The Federal Reserve has also played a strong role here, having kept interest rates at near zero for seven years up until the final days of 2015.

It all adds up to many borrowers deciding to take out home equity loans – but taking only what they need, and often taking out full amortizing loans. This means they start paying back those loans immediately, with monthly principal payments on top of interest.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.

According to Market Watch, Rates for home loans fell in line with Treasury yields, nudging mortgage rates to the lowest level of the year, Freddie Mac said Thursday.

The 30-year fixed-rate mortgage averaged 4.08%, down 2 basis points during the week. The 15-year fixed-rate mortgage averaged 3.34%, down from 3.36%. The 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 3.18%, down one basis point.

The 10-year Treasury yield TMUBMUSD10Y, +0.00%   fell five basis points during the week as investors continue to re-assess the expectations for fiscal stimulus and economic growth that followed the November election even as fresh geopolitical worries flared. The benchmark government bond breached a key technical level, 2.30%, twice during the week.

Mortgage rates generally track the 10-year Treasury, but that relationship faltered briefly earlier this year.

We all know that interest rates are going up soon. Consider getting your rate tied down. Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.

While many people save for and anticipate the costs associated with buying a home, not

Happy family with agent realtor near new house.

everyone realizes that selling a house also comes with its share of fees.

In some cases, these fees can equal 10 percent of the home’s sale price. While many of these charges are negotiable and can fluctuate depending on the state of the real estate market, sellers should plan on paying at least some of these expenses.

Understanding the costs involved in selling a house can help prevent sticker shock when it comes time to close the sale.

Realtor’s commission

The real estate commission is often the largest fee that a seller has to pay. In many cases, these commissions can total 5 percent to 6 percent of the sale cost. For a $250,000 house, that would be about $15,000.

The commission fee is split between the seller’s agent and the buyer’s agent. Many homeowners are attempting to skip these high fees altogether by going the sell-it-yourself route. If you take this approach, though, be prepared to assume the Realtor’s responsibilities.

These duties can include negotiations, hiring a contract lawyer and taking care of the transfer of title.

Home repairs

If you are thinking about selling your home, chances are there are a few repairs that could be made to boost the appeal of your home and even raise its value.

So if you have been putting off painting a bedroom, repairing a staircase or fixing a leaky faucet, now is the time to make those changes.

Inspection repairs

You may spend several hundred dollars on cosmetic fixes on your home, but if the buyer’s home inspection reveals any major problems, you might be responsible for paying to fix them as well.

Major repairs could be a financial setback, so it’s important to be prepared for them before you choose to sell, especially if you anticipate a problem with your home passing inspection.

Staging

Buyers like to have a clear picture of what the home will look like with their items in it. If your home is currently vacant or your possessions are outdated, you may want to hire a professional stager who can arrange furniture and accessories.

A 2015 National Association of Realtors study revealed that the median cost for staging was $675.

Utilities

If you plan to move out before you sell your home, you will want to continue to pay for your heat and electricity. A home without heat and lighting can be very difficult to show to buyers. Your current utility bills can give you an idea of how much this will cost.

Mortgage payoff

The proceeds of your home will be used to pay off your mortgage, but it is likely that the number on your mortgage statement might be a little less than what you owe.

You’ll likely have to add prorated interest you’ve accrued to the total balance. Additionally, your lender may penalize you for paying early if you have a prepayment penalty associated with your mortgage.

Closing costs and additional fees

While the closing cost to sell a house is typically the responsibility of the buyer, don’t be surprised if you are asked to foot the bill, especially if you are trying to sell your home in a buyer’s market (one which has an influx of homes for sale).

Some of these costs may include HOA (or homeowners association) fees, property taxes, attorney fees, transfer taxes and title insurance. You also may be asked to pay an escrow fee, a brokerage fee and a courier fee. Altogether, closing costs can range from 2 percent to 4 percent of the selling price.

Many of the above fees are negotiable, and it is unlikely that a seller will be responsible for all of these. Still, it helps to be prepared. Knowing how much it will cost to sell a house can help you avoid disappointment when the time comes to put it on the market.

Ruth Schoenherr is a mortgage broker who will help you find home loans in the Clearwater, Palm Harbor, Largo, Safety Harbor, St Petersburg and Tampa Bay area. For more information, go to her web site at www.ClearwaterMortgageBroker.net.