Stop Paying Rent

How To STOP PAYING RENT And Own Your Own Home   Don’t Pay Another Cent in Rent to Your Landlord... It’s a dream we all have—to own our own home and stop paying rent. But if you’re like most renters, you feel trapped within the walls of a house or apartment that doesn’t feel like yours. How could it when you’re not even permitted to bang in a nail or two without a hassle. You feel like you’re stuck in the renter’s rut with no way of rising up out of it and owning your own home. Don’t Feel Trapped Anymore It doesn’t matter how long you’ve been renting, or how insurmountable your financial situation may seem. The truth is, there are some little known facts that can help you get over the hump, and transfer your status from renter to homeowner. With this information, you will begin to see how you really can: save for a downpayment stop lining your landlord’s pockets and stop wasting thousands of dollars on rent There are many important issues you should be aware of that affect you as a renter. Why on earth would you continue to lose thousands by throwing it away on rent when, with your agent, you could take a few minutes to discuss your specific needs so that you can stop renting and start owning. This conversation costs you nothing. And, of course, you shouldn’t have to feel obligated to buy a home at the time you review this. But by taking the time to explore your options, and learn about the ways you can afford to buy a home, think how prepared and relaxed you’ll be when you are ready to make this important step. 6 Little Known Facts That Can Help You Buy Your First Home The problem that most renters face isn’t their ability to meet a monthly payment. Goodness knows that you must meet this monthly obligation every 30 days already. The problem is accumulating enough capital to make a downpayment on something more permanent. But saving for this lump sum doesn’t have to be as difficult as you might think. Consider the following 6 important points: 1. You can buy a home with much less down than you think. There are some government programs (such as the first time buyer programs) to help people get into the housing market. You can qualify as a first time buyer even if your spouse has owned a home before as long as your name was not registered. Ensure your real estate agent is informed and knowledgeable in this important area and can offer programs to help you with your options. 2. You may be able to get your lender to help you with your downpayment and closing costs. Even if you do not have enough cash for a downpayment, if you are debt-free, and own an asset free and clear (such as a car), your lending institution may be able to lend you the downpayment for your home by securing it against this asset. 3. You may be able to find a seller to help you buy and finance your home. Some sellers may be willing to hold a second mortgage for you as a “seller take-back”. In this case, the seller becomes your lending institution. Instead of paying this seller a lump-sum full amount for his or her home, you would pay monthly mortgage installments. 4. You may be able to create a cash downpayment without actually going into debt By borrowing money for certain investments to a specified level, you may be able to generate a significant tax refund for yourself that you can use as a downpayment. While the money borrowed for these investments is technically a loan, the monthly amount paid can be small, and the money invested in both home and investment will be yours in the end. 5. You can buy a home even if you have problems with your credit rating. If you can come up with more than the minimum downpayment, or can secure the loan with other equity, many lending institutions will consider you for a mortgage. Alternatively, a seller take-back mortgage could also help you in this situation. 6. You can, and should, get preapproved for a home loan before you go looking for a home. Preapproval is easy, and can give you complete peace-of-mind when shopping for your home. Mortgage experts can obtain written preapproval for you at no cost and no obligation, and it can all be done quite easily over the phone. More than just a verbal approval from your lending institution, a written preapproval is as good as money in the bank. It entails a completed credit application and a certificate which guarantees you a mortgage to the specified level when you find thehome you’re looking for. Consider dealing only with a professional who specializes in mortgages. Enlisting their services can make the difference between obtaining a mortgage and being stuck in the renter’s rut forever. Typically, there is no cost or obligation to enquire.  

Getting YOUR Price

Homesellers How to Get the Price You Want (and Need)   When you decide to sell your home, setting your asking price is one of the most important decisions you will ever make. Depending on how a buyer finds your home, price is often the first thing he or she sees, and many homes are discarded by prospective buyers as not being in the appropriate price range before these homes are given a chance to be shown. Your asking price is often your home’s “first impression”, and if you want to realize the most money you can from your home’s sale, it is imperative that you make a good first impression. Because this is not as easy as it sounds, your pricing strategy should not be taken lightly. Pricing too high can be as costly to a home seller as pricing too low. Taking a look at what homes in your neighborhood have sold for is only a small part of the process, and this on it’s own is not nearly enough to help you make the best decision. This report will help you understand some important factors about pricing strategy to help you not only sell your home, but sell it for the price you want. Pricing Strategy Starts with Good Information Before you can begin to know what your home is worth, you should do some research, bearing in mind the following: An analysis of what homes have recently sold for in your neighborhood is NOT enough to help you properly price your home. A quick scan up and down the street at the prices of homes that have recently sold will give you a starting point. However, this is not nearly enough for you to base your entire pricing strategy on. It is important for you to understand how buyers look for a home. Think about how you conducted your house hunting search to find the home you are now thinking of selling. You most likely did not confine your search to a single neighborhood, but perhaps different neighborhoods or towns in order to find a home that best matched your needs and desires. The prospective buyers who will be viewing your home, will conduct their searches in a similar manner. That means they will be comparing your home to, for example, brand new development homes, century homes, 10-20 year old homes, etc. They will also consider locations such as homes in established neighborhoods, the middle of town, the suburbs or country properties. Each home will have a different look and feel and it’s quite possible that a prospective buyer might consider all of these variables in the search for a home. You can see, when you’re selling your home, you’re not just competing with the home around the corner, but also with all homes in other areas which have the same basic characteristics: i.e. number of rooms, overall living space, etc. How Your Asking Price Affects Your Selling Price There are 4 common strategies that most sellers use to price their homes. It is unwise to assume that a higher asking price will net you a higher selling price. In fact, often this equation works in reverse if you’re not paying attention to what the market is telling you. Bear this research in mind when you set your asking price. 1. Clearly Overpriced: Every seller wants to realize the most amount of money they can for their home, and real estate agents know this. If more than one agent is competing for your listing, an easy way to win the battle is to overinflate the value of your home. This is done far too often, with many homes that are priced 10-20% over their true market value. This is not in your best interest, because in most cases the market won’t be fooled. As a result, your home could languish on the market for months, leaving you with a couple of important drawbacks: your home is likely to be labeled as a “troubled” house by other agents, leading to a lower than fair market price when an offer is finally made you have been greatly inconvenienced with having to constantly have your home in “showing” condition . . . for nothing. These homes often expire off the market, forcing you to go through the listing process all over again. 2. Somewhat Overpriced: About 3/4 of the homes on the market are 5-10% overpriced. These homes will also sit on the market longer than you want. There is usually one of two factors at play here: either you believe in your heart that your home is really worth this much despite what the market has indicated (afterall, there’s a lot of emotion caught up in this issue), OR you’ve left some room for negotiating. Either way, this strategy will cost you both in terms of time on the market and ultimate price received. 3. Priced Correctly at Market Value: Some sellers understand that real estate is part of the capitalistic system of supply and demand and will carefully and realistically price their homes based on a thorough analysis of other homes on the market. These competitively priced homes usually sell within a reasonable time-frame and very close to the asking price. 4. Priced Below the Fair Market Value: Some sellers are motivated by a quick sale. These homes attractmultiple offers and sell fast - usually in a few days - at, or above, the asking price. Be cautious that the agent suggesting this method is doing so with your best interest in mind.  

New Homes vs. Resale

NEW HOMES: 10 Tips To Save You Time and Money   The Homebuyers’ Guide to NEW HOMES   Read This BEFORE You Visit Your First Model Home!   When shopping for your home, you’ll discover that most homes on the market are resales. Yet, one out of four homebuyers purchases a new home. Both new homes and resales offer advantages. Before you make a decision, let’s . . .   COMPARE THESE POINTS!   New Homes offer innovative use of space and style greater energy efficiency a choice of options and upgrades everything is new, and modern. VERSUS Existing Homes on average they are less expensive often they are in established neighborhoods with mature landscaping homes have already settled, eliminating possible problems that arisefrom this happening after the purchase of home As you can see, there are advantages to both. Most people consider both new and existing homes before they decide to purchase. Should you be thinking about buying a new house, here are 10 points to consider before you visit your first model home. 1. Get in Touch with Your Agent. Before you visit your first model home, sit down with your agent and do your homework. You’ll want to be prepared so that you can determine a comfortable price range for your new home. Determine a Comfortable Price Range If you own a home, you’ll first need to know the net proceeds from its sale in order to determine how much cash you’ll have to work with. Don’t simply estimate this but carefully calculate every possible selling cost. If you’re a first time buyer, you’ll need to first qualify your income. Determine the size of your downpayment, then work out a monthly debt load so you can determine a comfortable price range. 2. Sellers’ Agents Versus Buyers’ Agents. Here’s a good point to remember. The sales agent in the model home represents the builder, not you. They are known as sellers’ agents. As a buyer you can work with a buyers’ agent at no additional cost. It’s his/her business to best represent your needs by being knowledgeable about home construction, warranties, financing, differences in pricing, quality, even lot selection so that you get the best value for your money. 3. A Builder For All Reasons. Like all tradesmen, builders vary in their fields of expertise. For example there are builders who specialize in craftsmanship, others who are known for their innovative use of space, and those who offer below-market financing or customer attention during construction and after move-in. Determine your own specific needs or preferences then shop around for a builder that will best address your requirements. 4. Get the Facts About Your Builder. Before making a final decision, it is wise to check out the reputation and financial strength of the builder. Get “spec sheets” on home features covering everything from floor plans to energy efficiency, including lot availability and delivery of your home.* 5. Check Out the Neighborhood. Learn as much as you can about the community. Discover what amenities it has to offer. Investigate if financial reserves have been set aside to build or replace major amenities like schools or community roads Find out from local land-use officials what else is planned or could be constructed in the area, especially where vacant land is applicable. Review the rules for the homeowner’s association, or find out if one will be set up. Think of how you will be affected by commuting routes and times. 6. Choosing Options and Upgrades. The least expensive the base price of the house is, the more options and upgrades you can add without fear of overpricing it for the neighborhood. Options are items the builder installs during construction, such as adding usable space like a sunroom or a powder room. These features can add the most to the resale value of your home. Upgrading means selecting quality above “builder standard” such as carpeting, ceramics, detailing, kitchen fixtures and appliances. Be sure to take advantage of builder incentives that offer free upgrades or credit off the sale price. Remember, you can add a deck, finished basement or landscaping later and sometimes for less money. 7. Negotiations. Often buyers don’t realize that there may be room for negotiating price, upgrades or options. For example, you have some scope for negotiating with the builder if s/he has a completed a home but hasn’t sold it. Also some “premium lots” are priced higher and are sometimes saved to be sold last. Keep in mind that typically, all lots cost the builder the same, so be sure to enquire about lot pricing. Builders may offer discounts or special financing to help close a sale. 8. Be Sure the Contract Works in Your Favor! When spelling out the particulars of an agreement with your builder, ensure you protect yourself by having safeguards written into the agreement, such as: placing your deposit in escrow detailing your upgrades; allowing you access to the construction site to check on progress; a 30-day advance notice of the closing date. an explanation of what the fine print means in the warranties of the builder and manufacturer. 9. Financing — What’s Best for You? Some builders, especially in high-volume communities that place large numbers of loans, can offer special financing packages. However, because “home loan” lending is highly competitive, you have many financing choices other than those being offered by the builder. Shop around for everything, from rates to lender fees. Appraisals, inspections, surveys, attorneys and closing fees can vary as well. 10. Just Because it’s New... Doesn’t Mean it’s Perfect. Yes it’s new and typically it’s built with modern materials that are durable, low maintenance, stronger, quieter, and safer. But because nothing is perfect, even if it’s new, consider hiring a reputable, licensed home inspector. Then create a builder “punchlist”, from what you’ve learned to address any problems before closing. Consider budgeting for items to be modified or added later on. Many new home buyers use a real estate agent to help them negotiate the best price and terms with the builder. Immediate Delivery - New HomesBuyer Advantages Your Builder May Not Reveal! Here’s a fact that you may not be aware of. Some builders have newly-constructed homes available for immediate delivery. Usually these homes are ready to move into within 30 days. Even if some builders are eager to sell, they’ll probably keep that knowledge to themselves. Immediate delivery homes are often available for various reasons: the community, where new homes are being constructed is nearly complete, so the builder proceeds to have the on-site-contractors build “spec” homes (homes built on speculation for sale) on the last lots; the model home is for sale; the contract on a home has fallen through; builders include constructing homes for immediate delivery for buyers who are relocating or who have sold their previous home and need one to move into quickly. Immediate delivery homes may be more desirable because, sometimes builders offer financing incentives or free options. This may be done in place of chopping prices to appeal to buyers purchasing later in the building phase. An immediate delivery home is an advantageous way to purchase a home if you need to move in quickly, or need a physical space to walk through and see before you sign a contract. Be sure to enquire.