Strategy for successful home purchase
June 19, 2011 · CommentsAs a buyer there are some things you can do to increase your odds for a successful purchase.
1. Meet with your agent and develop a plan of how to obtain home you want.
2. Be prepared – have your pre-approval letter in place so when you find the home you want you can include that with your offer.
3. The more money you have for a down payment the better you look to a seller a a serious buyer.
4. Depending upon the situation write the best offer you can. Your Realtor should be able to find out various needs of the seller and partner them with your needs.
Once you have a ratified offer position yourself to make sure you are getting what you are paying for. Do this with inspections and careful review of disclosures. If you feel comfortable the home is everything you think it is continue moving forward with the purchase to a successful close of escrow.
Home Mortgage Interest Deduction
June 17, 2011 · CommentsIt is no secret the economy is not doing well. As a result all government entities are looking for money as in ways to raise more either through fees or additional taxes. You may want to consider writing your Congress person about the mortgage interest deduction. I have been selling real estate for well over a decade and every year the deductability of the mortgage interest we pay comes up as something the government seriously considers either doing away with completely or severly limiting it.
Below are some facts that can be used as justification for keeping our mortgage interest deductible.
1. 85% of all taxes are paid by homeowners.
2. Every home that is sold generates approx. $6o,000 spend over time for home improvement and related items.
3. A robust housing market is good for the economy leading us out of 6 of the past 8 recessions.
4. 15% of the Gross Domestic Product is housing related.
5. Housing creates jobs in both the private and public sector.
Would you be able to afford your home if the interest you pay to the bank isn’t deductible? What do you think that would do to the price of your home? And, of greater importance who would purchase homes for rentals (where would the other 15% of the people who don’t want to be homeowners live)? It is something to think about. It would only take a minute to email your elected officials. The home you save could be your own.
Successfully Selling a Home
May 16, 2011 · CommentsYou want to sell your home, what do you do?
1. Choose a Realtor and together develop a selling and marketing plan.
2. Prepare your home for sale – declutter the house, freshen up the yard, perhaps complete deferred maintenance.
3. Price the home according to the market, what has sold and the quality of the home itself. Overpricing means you will lessen your chances of an offer at your asking price and ultimately means you will receive less for your home than you would if you priced it correctly in the first place.
4. When you receive an offer remember it is a business transaction and isn’t personal. Remember the buyer is purchasing a house and it doesn’t have any reflection on you as a person.
5. Sweeten the deal a bit making it easier for the buyer to purchase the home if keeping the home will cost you more in the long run.
Happy Selling. Selling a home can be a stressful experience so be sure you have a good Realtor you are working with to help guide you through the process.
Home Market Update
April 25, 2011 · CommentsYou may have noticed the number of “For Sale” signs are getting smaller and smaller. There is some evidence we may have reached bottom. While local unemployment continues to lag behind the national average most people have changed their spending habits and are doing a better job of living within their budget. Regardless of the situation people would prefer owning to renting and it has now reached the point where renting is more expensive than owning. So, reconsider purchasing a home.
In the near future interest rates will begin to rise and if you couple that with fewer homes for sale the prices will begin to get more competitive. While I don’t have a crystal ball I do think in the near future we will again return to a balanced market with a slight benefit for the seller. As interest rates rise affordability decreases so you may see buyers act sooner rather than later in making their purchase. We are already experiencing that with homes that are priced correctly and are in good condition. They are selling sooner than overpriced listings and often at or slightly above the asking price.
However, with the market making such a drastic the past 5 years it is still possible for the market to take 5-10 years to regain the “perceived” value that was lost. That means people who purchased in the past 7 years and can afford to keep their homes will do so to recapture equity while those that had their homes for a longer period of time will undoubtedly consider selling depending upon their situation.
Overall it is always a good time to buy and sell real estate – one simply needs to match their needs with the market they are presented with and everyone benefits!
