With the housing market stagnant, an increasing number of people are trapped in their existing homes as they cannot afford to buy a new home without selling their old one first.

The first thing to consider is whether there are any alternatives to the house sale, for example, if it was leased, would it generate sufficient income to cover the mortgage?

If so, would you qualify for a second mortgage to purchase your own home? Many people are surprised at the rates on offer at the moment, so it is well worth checking a mortgage repayment calculator before dismissing the idea.

However, if this is not a feasible option, it is time to consider the traps you may have fallen into when trying to sell your house.

Everyone knows that in order to sell, a house needs to be clean, tidy and welcoming, as well as looking as if it doesn’t need too much work. Have you made the most of its best features or are you guilty of just concentrating on the bits you like personally? Not everyone might be as keen as you on your collection of 300 garden gnomes and it may detract from the rest of the garden.

There is plenty of time to be quirky and individual when you are not trying to sell your property.

A simple tip that can make an overwhelming difference to prospective buyers is how bright the rooms are. Open the drapes as wide as possible, use mirrors to reflect light, even switch on lamps if you have to.

If you are confident that you have done everything possible to make your property and the yard look good, then it’s time to consider other factors.

Is the price right? Some real estate agents will be keen to push you to list it for the highest price possible rather than tell you that realistically you are aiming too high.

Even if the price is not unreasonable, if there are some bargain properties in the local area in a similar bracket to your home, you may have to either wait to sell your house or admit defeat and lower the price.

If you are unable to lower the price because a purchase of a new property depends on the cash, it may be worthwhile checking a mortgage repayment calculator to see if it is possible to increase the finance on the new home.

Another reason why a property can remain unwanted is poor marketing. In the age of technology, sending out flyers or putting an ad in the local newspaper is unlikely to be sufficient to reach all buyers.

Ask your real estate agent how they are advertising your home. Questions to ask include whether it is featured on their website and whether it can be found via any other online portals.

Finally, take an honest look at yourself. Are you being as helpful as you could be when it comes to the sale of your property? Or do you expect to be able to sell your home with no inconvenience?

Homes that sell the quickest are those where the owner is flexible regarding viewings and does not insist on a day’s notice before letting someone look round.

Many potential buyers believe that closing costs are almost negligible, and when they compare mortgage rates, they often ignore the added fees that closing costs can create. Comparatively, the closing costs are often minimal when viewed next to the down payment or the cost of the interest over time, but when viewed separately, these fees can add up quickly.

Average closing costs vary by state, but they can often be in excess of $6,000 dollars. That’s enough to buy a well-maintained car. Many people see a mortgage refinance as a way of simply reducing the interest rates on their loans. They forget to consider closing costs, which can often amount to quite a bit.

Even with high closing costs, a mortgage refinance at today’s low interest rates will almost certainly save you substantial money in the long run. But be aware of all the expenses and all the variables that go into the refinance transaction. Don’t jump in without doing some research.

Learning about reverse mortgages can get pretty confusing. There are many details you should get acquainted with when decided if this is the option for you. First and foremost, I would check with my home insurance company as well as legal counsel, but I  will point out some of the pros and cons of a reverse mortgages that could help you a little.

Lets start with the good news first:

Pros

1. You will continue to live in your home as along as you want. The comfort of know that you will have a place to live as long as your alive is a huge factor for choosing reverse mortgages.

2. There are no income requirements to obtain a reverse mortgage. The point of the mortgage is so you would have income and since most elderly people are unable to work it makes a perfect match.

3. You will have a new source of cash flow that you can put toward living expenses. This is the number one reason seniors choose to get a reverse mortgage.

4. You will not have to make monthly payments.

5. You will never have to repay more that the property is worth. It does not matter how long you live or how much you borrow, your mortgage insurance is there to cover what’s left after you exhaust the equity.

Now for the bad news:

Cons

1. Reverse Mortgages can be very expensive, even more so than conventional mortgages. This means more commission for the lenders and more reason for you to keep an eye on the fees at closing.

2. You are still responsible for your taxes, home insurance, home repair and an added reverse mortgage insurance. HUD require you to have insurance on your new reverse mortgage, on top of your regular home insurance. It also becomes a requirement to keep you home in good shape.

3. You could lose your medicare benefits if you suddenly acquire a large sum of money. This is a huge factor and should be taken into consideration before you apply.

4. It is possible to live long enough to deplete all the equity in your home. This would leave with nothing to leave the younger generation of your family.

I always encourage you be do some research before you get into and financial dealings. Get yours self an expert to help you in areas you are not familiar and always read the fine print.