Quote:
Originally Posted by 784caroline
The reason it is not a good idea to pay off the bond if you plan to sell your house in the near future is ...assuming the house is relatively new and you have an approx $20,000 bond, if you paid the bond off you would have to sell your house at $20,000 over comparable houses in your area to break even. Doing so could also put you in a different pricing market for people looking to buy a home and limit your potential buyers...ie if your house is appraised at $289,000 you would now have to price it at $309,000 to recoup the bond price. However alot of people when looking for a house look at price ranges and if their rangewas under $300K well they may have missed your home.
Considering most people when they first look here do not even know what a bond is, they will always go to the cheaper house. Even if there are those who know about the bond and it being paid off, in most cases they will make offers much less than you can probably get by just selling the house outright.
Paying off the bond only makes sense if you plan to stay in the house!
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If purchasers are not being informed that the total compensation for the home is in fact the purchase price plus the unpaid bond , I believe that the are in fact being misled. Im surprised that this issue has not been litigated.
To say that a $200,000 price with a $15,000 bond balance is cheaper than a price of $215,000 with no bond is intentionaly misleading, unethical and in the case of representation by real estate professionals and appraisers, probably actionable.