Some people believe that a paid off bond does not help to sell the house off.
I disagree. Buying a house is fianancial and what it costs in total is the key.
A little marketing goes a long way.[/QUOTE]
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IMO you are partialy correct, but you are really not summarizing the concerns of people regarding a paid off bond.
A paid off bond would most definitely "help" sell a house. What the concern is ..you most likely will not recoup in full the amount of money you paid on the bond in the resale price of teh home. For ex, if you have 2 identical houses on a street one priced at $300,000 with a 20,000 bond yet to be paid off, and the other priced at 320,000 but the Bond is PAID in FULL. the lower priced house will get offers closer to its asking price while The house at $320K will get alot of offers but the offers will most likey be below $320 .......In essence you are discounting the total price of the house which is a good deal for the buyer and makes a quick sell for the seller.
Also remember a buyer can only get a loan for the appraised value of the house, and the appraisal would not include or consider the Bond paid. However, As long as the buyer has a downpayment that at least covers the bond plus XX% the buyer would get a loan that in essence now includes the former bond and be fully deductible.
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