Taking the Stress Out of the Home-Buying Process
By Paige Tepping
RISMEDIA, November 20, 2010--For many prospective buyers, the thought of going through the home-buying process is often filled with a lot of stress. From finding a qualified real estate agent, to narrowing down your choice of homes and then packing your belongings and moving across town can be an overwhelming process.
OpenSkyRealEstate.com offers the following tips to help you keep your cool as you begin the process of a buying a home.
-Buying a home is one of the biggest financial decisions you will make in your lifetime, and along with the finances come emotions. When you are choosing a real estate agent to work with, be patient and take the time you need to find an agent that you connect with. Finding a highly-skilled agent who fits with your personality is crucial.
-Every home buyer and seller is in a different situation, so it is important that you don’t compare your timeline and decisions to anyone else’s. As you make your way through the home buying process, remember that there is no right time to buy, just as there is no perfect time to sell. If you find a home that fits your needs, don’t let it slip out of your hands by waiting for interest rates to drop lower as you run the chance of losing out on the home of your dreams.
-It is natural to want to get opinions from those you trust before you make your final choice, but too much input will ultimately make the decision process much harder. Remember to focus on what your immediate wants and needs are so that everyone will be happy with the final decision.
-You probably aren’t going to find a home that is 100% perfect, so it is important to make a list that includes your top priorities that you can’t live without. Be sure to stick to the items on your list and let go of the minor things.
-Negotiation is an important part of the real estate buying process, but be sure you don’t take your negotiating too far. Trying to get an extra-low price or refusing to budge on your offer may cost you the home in the end. Successful negotiation depends on give and take, so make sure you are being fair in your requests.
-Don’t get too caught up in all the physical aspects of a home and forget about the more important issues. While the size of the rooms and the layout of the kitchen might not be exactly what you expected, be cognizant of issues such as noise level, location to amenities and other aspects that will have an impact on your day-to-day life.
-Getting approved for a mortgage should be taken care of well before you find a home and make an offer.
-Create a budget before you move into your new home and be sure to include maintenance and repair costs. Even if you buy a new home, there will be extra costs, so it is important to not come up short and let your new home deteriorate.
-After purchasing a home, a little buyer’s remorse is inevitable, but it will pass. Buying a home is a big financial commitment, but it also yields big benefits. If you are feeling remorseful after buying your home, remind yourself why you wanted to buy a home and what made you fall in love with your new property.
-When choosing a home, buy it because you love it. A home’s most important role is to serve as a comfortable, safe place to live, so don’t get bogged down with thinking about your home’s appreciation.
Monday, November 22, 2010
Pay Off Debt Before Saving for Retirement
Pay Off Debt Before Saving for Retirement
By Claudia Buck
RISMEDIA, November 20, 2010--(MCT)--Hard times elicit tough choices. This week, Steven Zeller, a Gold River, Calif.-based investment adviser, tackles a reader's question on credit card debt and mortgage loans.
QUESTION: I've entered into a hardship payment program with the six banks that issued my 10 credit cards. I'm paying off $80,000 at an overall interest rate of 6 percent (down from an average of 20 percent). Due to the reduced payments, I now have $3,000 in monthly surplus income to either invest with, or pay down the credit cards.
I also have an upside-down mortgage on a rental house owned as income property. The bank seems (unwilling) to either modify or reduce the principal so I can sell it.
In time, this will all find its way into (Chapter 11 bankruptcy) courts. Life would be simpler if I pay down the credit cards and concentrate on (getting) the house above water. Instead, I've decided to invest the surplus in ERISA retirement vehicles and Roth IRAs. They would be exempt from collections but available as bargaining chips when negotiating with creditors. What is your opinion?
ANSWER: I would not encourage anyone to go into bankruptcy proceedings if he or she can help it. It creates a lot of stress and is not the best for your self-esteem.
If you have 10 credit cards to pay off, 6 percent is a pretty good deal instead of 20 percent.
I would begin paying off the credit cards, starting with the smallest one first, until they are all gone for good.
It may be painful at first, but you will increase your cash flow over time by (eliminating) the monthly payments.
Then I would attack the upside-down situation with your rental. In the long run, it is better, financially and emotionally, to be debt-free. And if the (credit card issuers) are giving you that opportunity, I would jump on it.
It would be a great personal and moral accomplishment.
At the end of the day, if you pay into an IRA and Roth IRA instead of paying down your credit card debt, you will still have debt. As far as negotiating with the (lender) on your rental property, I'm not sure it would look at the situation very positively if it saw you were fully funding your IRAs.
(c) 2010, The Sacramento Bee (Sacramento, Calif.).
Distributed by McClatchy-Tribune Information Services.
By Claudia Buck
RISMEDIA, November 20, 2010--(MCT)--Hard times elicit tough choices. This week, Steven Zeller, a Gold River, Calif.-based investment adviser, tackles a reader's question on credit card debt and mortgage loans.
QUESTION: I've entered into a hardship payment program with the six banks that issued my 10 credit cards. I'm paying off $80,000 at an overall interest rate of 6 percent (down from an average of 20 percent). Due to the reduced payments, I now have $3,000 in monthly surplus income to either invest with, or pay down the credit cards.
I also have an upside-down mortgage on a rental house owned as income property. The bank seems (unwilling) to either modify or reduce the principal so I can sell it.
In time, this will all find its way into (Chapter 11 bankruptcy) courts. Life would be simpler if I pay down the credit cards and concentrate on (getting) the house above water. Instead, I've decided to invest the surplus in ERISA retirement vehicles and Roth IRAs. They would be exempt from collections but available as bargaining chips when negotiating with creditors. What is your opinion?
ANSWER: I would not encourage anyone to go into bankruptcy proceedings if he or she can help it. It creates a lot of stress and is not the best for your self-esteem.
If you have 10 credit cards to pay off, 6 percent is a pretty good deal instead of 20 percent.
I would begin paying off the credit cards, starting with the smallest one first, until they are all gone for good.
It may be painful at first, but you will increase your cash flow over time by (eliminating) the monthly payments.
Then I would attack the upside-down situation with your rental. In the long run, it is better, financially and emotionally, to be debt-free. And if the (credit card issuers) are giving you that opportunity, I would jump on it.
It would be a great personal and moral accomplishment.
At the end of the day, if you pay into an IRA and Roth IRA instead of paying down your credit card debt, you will still have debt. As far as negotiating with the (lender) on your rental property, I'm not sure it would look at the situation very positively if it saw you were fully funding your IRAs.
(c) 2010, The Sacramento Bee (Sacramento, Calif.).
Distributed by McClatchy-Tribune Information Services.
How to Be the Expert in Tough Times
How to Be the Expert in Tough Times
By Margaret Kelly
RISMEDIA, November 22, 2010—With the bulk of the subprime mortgage resets behind us, it may seem that the only direction to move is straight up toward recovery. Projections through 2012, however, show two more waves of resets on more than $1 trillion in Alt-A and Option ARM mortgages.
Many owners of these properties may face foreclosure, as did subprime borrowers. This means the current shadow inventory is expected to remain at record levels. NAR estimates that there are 2.7 million delinquencies (90 days or more), foreclosures and REOs that have yet to reach the market. Absorption of these properties could take several years in some major markets.
It’s in everyone’s best interest—including the banks’—to release shadow properties onto the market in stages. Until the backlog is cleared, however, the housing market will continue to recover slowly. You can expect to see the market conditions you’re seeing today for the next few years. In the meantime, the real estate professionals who will succeed are the ones who are committed to being the experts in the tough times, too.
Move Out of the Shadows
If digging your heels in against entering the distressed property market seems more and more like a bad idea, it’s not too late to become an expert. Consider earning the Certified Distressed Property Expert (CDPE) designation, NAR’s Short Sales and Foreclosure Resource (SFR) certification, and the Five Star Institute’s Short Sale and REO certifications. Agents who have earned these credentials report a significant impact on their businesses.
Focus on Pricing with Sellers
The release of shadow inventory typically puts a strain on home prices, and can create a clogged pipeline of homes on the market. Pricing homes competitively is one of the simplest ways to buck that trend and stimulate demand among all types of buyers, including first-timers, repeat buyers and investors.
Make Buyers Aware
Although any of us would prefer this slump be behind us, there are positives in the market for qualified buyers. With interest rates so low and prices extremely competitive, there are opportunities for some buyers to find deals on previously unobtainable properties. Investors, in particular, will play a larger and larger role in moving inventory. It’s smart to reach out to all categories of buyers.
There is some good news in all this. By the end of 2012, the bulk of Alt-A and Option ARM resets will also be behind us. With no guarantees on how long it will take to re-establish balance in the market, it’s important in the short- and long-term that you’re prepared to face this challenging inventory head-on.
Margaret Kelly, CRB, is chief executive officer of RE/MAX LLC
By Margaret Kelly
RISMEDIA, November 22, 2010—With the bulk of the subprime mortgage resets behind us, it may seem that the only direction to move is straight up toward recovery. Projections through 2012, however, show two more waves of resets on more than $1 trillion in Alt-A and Option ARM mortgages.
Many owners of these properties may face foreclosure, as did subprime borrowers. This means the current shadow inventory is expected to remain at record levels. NAR estimates that there are 2.7 million delinquencies (90 days or more), foreclosures and REOs that have yet to reach the market. Absorption of these properties could take several years in some major markets.
It’s in everyone’s best interest—including the banks’—to release shadow properties onto the market in stages. Until the backlog is cleared, however, the housing market will continue to recover slowly. You can expect to see the market conditions you’re seeing today for the next few years. In the meantime, the real estate professionals who will succeed are the ones who are committed to being the experts in the tough times, too.
Move Out of the Shadows
If digging your heels in against entering the distressed property market seems more and more like a bad idea, it’s not too late to become an expert. Consider earning the Certified Distressed Property Expert (CDPE) designation, NAR’s Short Sales and Foreclosure Resource (SFR) certification, and the Five Star Institute’s Short Sale and REO certifications. Agents who have earned these credentials report a significant impact on their businesses.
Focus on Pricing with Sellers
The release of shadow inventory typically puts a strain on home prices, and can create a clogged pipeline of homes on the market. Pricing homes competitively is one of the simplest ways to buck that trend and stimulate demand among all types of buyers, including first-timers, repeat buyers and investors.
Make Buyers Aware
Although any of us would prefer this slump be behind us, there are positives in the market for qualified buyers. With interest rates so low and prices extremely competitive, there are opportunities for some buyers to find deals on previously unobtainable properties. Investors, in particular, will play a larger and larger role in moving inventory. It’s smart to reach out to all categories of buyers.
There is some good news in all this. By the end of 2012, the bulk of Alt-A and Option ARM resets will also be behind us. With no guarantees on how long it will take to re-establish balance in the market, it’s important in the short- and long-term that you’re prepared to face this challenging inventory head-on.
Margaret Kelly, CRB, is chief executive officer of RE/MAX LLC
Subscribe to:
Posts (Atom)