A foreclosure is an action taken against a property owner by seizure of his/her real property. It can be for many reasons. The main cause is delinquent payments on a mortgage. The mortgage company or second and even third mortgage holders contact the owner, then the trustee (usually an attorney) to begin the process. If it is VA guaranteed or FHA insured, many times they offer assistance or alternatives. Then the appraisal is ordered to determine fair market value.
It can also be for medical bills, delinquent taxes and other liens, even credit cards. "The purpose of this foreclosure is for collection of a debt" is usually printed in the legal section of the newspaper as well as some other publications, such as local business papers and law papers.
Many people feel that they can purchase these properties for almost nothing and sometimes that is the case, especially tax sales. If the property is " free and clear" of other liens then it is solely based on the taxes, penalties and interest due. I know of some that have sold for less than a few thousand dollars.
The owner has the right to cure the default right up to the very last minute before the sale. A pay off statement is prepared including the delinquent payments, trustee fees (usually 5 % of the remaining balance of the loan), processing fees, property inspections, appraisal and any other thing the mortgage company can think of. The problem is not only coming up with the funds but knowing what charges are and if they are legitimate. I have only heard of lawyers and accountants challenging mortgage companies on over or false charges.
Suzie has been in the business twenty years as a licensed real estate agent, broker and certified residential appraiser who majored in real estate and architecture. She hopes to improve the industry one step and one person at a time. Other professionals in the same fields as well as educators have contibuted.
http://www.choiceofhomes.com/foreclosuredefinition.htm
Wednesday, July 11, 2007
How you should deal with Dual Real Estate Agents?
Dual real estate agents represent both buyer and seller. The concept of dual agency is legal in most U.S. states. However, most consumer advocacy organizations recommend against using a dual agent - reason being the existence of an inherit conflict of interest for the agent. Real estate agents receive a commission based on the selling price of the property. The higher the price, the higher the real estate agent's commission, so the reasoning of these organizations is that dual agents never really have the buyer's best interests at heart. The case could also be vice-versa - the agent could be in a position to manipulate his seller into selling the property at a given price because he has a buyer ready to buy at that price.
Given the drawbacks of using a dual agent, should you even consider using the services of one? Well, there are laws governing the practices of dual agents. In spite of the disadvantages mentioned, if a dual agent is able to get you a good deal there shouldn't be a reason to stop you.
A dual agent needs to disclose to both the buyer and seller that he is representing both parties and both have to agree, in writing. Dual agents are bound by law and ethics to treat both buyers and sellers honestly, equally, and fairly. Dual agents can be prevented from divulging confidential information about each party to the other as it could adversely impact negotiating positions.
When you're dealing with a dual real estate agent, you need to remember that the agent's primary objective is to close the deal - a difference in price margin to you is not going to impact his real estate commissions as much. It's very difficult for a dual agent to truly and equally represent both parties, since the conflicting interests make that inherently impossible. As a buyer or seller, you would need to be more alert and be in a position to make the right decisions for yourself.
Be sure the exact nature of your relationship with the dual agent is clear and have him mention what services he will be performing for you, how he will be paid, and how any conflicts of interest that arise during the transaction will be handled.
http://www.choiceofhomes.com/dualagents.htm
Given the drawbacks of using a dual agent, should you even consider using the services of one? Well, there are laws governing the practices of dual agents. In spite of the disadvantages mentioned, if a dual agent is able to get you a good deal there shouldn't be a reason to stop you.
A dual agent needs to disclose to both the buyer and seller that he is representing both parties and both have to agree, in writing. Dual agents are bound by law and ethics to treat both buyers and sellers honestly, equally, and fairly. Dual agents can be prevented from divulging confidential information about each party to the other as it could adversely impact negotiating positions.
When you're dealing with a dual real estate agent, you need to remember that the agent's primary objective is to close the deal - a difference in price margin to you is not going to impact his real estate commissions as much. It's very difficult for a dual agent to truly and equally represent both parties, since the conflicting interests make that inherently impossible. As a buyer or seller, you would need to be more alert and be in a position to make the right decisions for yourself.
Be sure the exact nature of your relationship with the dual agent is clear and have him mention what services he will be performing for you, how he will be paid, and how any conflicts of interest that arise during the transaction will be handled.
http://www.choiceofhomes.com/dualagents.htm
Home Buying: Things to keep in mind
So you’ve decided you want to own a home and now you want to begin your search for one. Before jumping into a home search, there are a few things you should keep in mind when going about buying a home.
First things first, you cannot buy a home if you can’t afford it! Don’t assume how much you can afford, find out your loan eligibility. If you’re planning on purchasing a car or any other high-priced item on a loan, then please stall such purchase until after you get your home as your eligibility reduces with every other loan you hold at the time of a mortgage application.
Next, when you go in to see a home, don’t let an unkempt / untidy house put you off. Try and visualise the house in its best condition and see if it would suit you then. In fact, an unkempt house may put other buyers off and by some chance this may lead you into a better position when negotiating for the home, as the seller may find it difficult finding a buyer for his place.
If the home you decide to purchase is being sold by the home owner himself, don’t deposit any earnest money with him directly. Such earnest money should be deposited in a trust account as some owners mistake such money to be theirs and hesitate in refunding the same if the deal falls through for valid reasons, such as financing or repair issues.
Once you’ve finalised on a home and go to get an appraisal of the home done by a professional appraiser, do not panic if the appraisal value comes below the actual price you decide to pay for the home. There are options you can consider in this case. You would have to consult your agent or your mortgage broker for some advice.
Some other factors you may want to consider are listed below:
* Any signs of leakage in the house near the roofs and the foundation walls
* Problems with the sewer drainage system, if any
* Neighborhood by daylight and night. Drive by and see for yourself before making a decision.
* Natural light. Are the rooms dark without artifical light? Does that concern you?
* The amount of property taxes that has to be paid every year
* Any structure on the property which may overlap into an adjoining property.
* Is the home located in an airport's flight path?
* Any planned roadways, which may eat into the property's front yard.
So, don’t rush into buying a home without considering some of these factors. Wish you the best of luck in finding your new home!
http://www.choiceofhomes.com/whenbuyingahome.htm
First things first, you cannot buy a home if you can’t afford it! Don’t assume how much you can afford, find out your loan eligibility. If you’re planning on purchasing a car or any other high-priced item on a loan, then please stall such purchase until after you get your home as your eligibility reduces with every other loan you hold at the time of a mortgage application.
Next, when you go in to see a home, don’t let an unkempt / untidy house put you off. Try and visualise the house in its best condition and see if it would suit you then. In fact, an unkempt house may put other buyers off and by some chance this may lead you into a better position when negotiating for the home, as the seller may find it difficult finding a buyer for his place.
If the home you decide to purchase is being sold by the home owner himself, don’t deposit any earnest money with him directly. Such earnest money should be deposited in a trust account as some owners mistake such money to be theirs and hesitate in refunding the same if the deal falls through for valid reasons, such as financing or repair issues.
Once you’ve finalised on a home and go to get an appraisal of the home done by a professional appraiser, do not panic if the appraisal value comes below the actual price you decide to pay for the home. There are options you can consider in this case. You would have to consult your agent or your mortgage broker for some advice.
Some other factors you may want to consider are listed below:
* Any signs of leakage in the house near the roofs and the foundation walls
* Problems with the sewer drainage system, if any
* Neighborhood by daylight and night. Drive by and see for yourself before making a decision.
* Natural light. Are the rooms dark without artifical light? Does that concern you?
* The amount of property taxes that has to be paid every year
* Any structure on the property which may overlap into an adjoining property.
* Is the home located in an airport's flight path?
* Any planned roadways, which may eat into the property's front yard.
So, don’t rush into buying a home without considering some of these factors. Wish you the best of luck in finding your new home!
http://www.choiceofhomes.com/whenbuyingahome.htm
What To Expect In Closing Costs On A Home Purchase
Many are taking advantage of this year’s low mortgage rates to purchase a home. Pent up with excitement, many families, who have scrimped and saved for a down-payment, jump for joy when the mortgage lender finally approves their application. But, they should realize that there’s a whole new set of expenses that must be covered before actually closing on the sale.
New homeowners are often taken aback by up-front closing costs such as mortgage and title insurance, attorney fees, recording fees and loan points, which can run into the thousands of dollars. But there is no need to be afraid of these charges. With a little background on their purpose and shrewd financial foresight, closings can be a breeze.
A lender’s charge for processing the loan can be determined at the beginning of your buying process. Referred to as “points,” these charges are expressed as a percentage of the total loan. For instance, three points are equal to 3 percent of the borrowed amount. “Points” can also become a tool for negotiation with the lender and seller. In a buyer’s market, home sellers will often agree to pay mortgage fees in order to close a deal.
Title insurance can be a substantial expense. The one-time title fee, including search and examination, averages around $430 for a $100,000 home, but it’s recommended that you check with a local title insurance agent ahead of time to effectively determine what you’ll owe before closing.
Additional costs, such as attorney charges, and recording, transfer and inspection fees, can also be predicated ahead of time by the buyer. Most often pest and survey inspections, although included in the official closing statement, are conducted and paid for long before the closing date. However, buyers should consider them as additional up-front costs.
Some closing costs, such as “points,” are fully tax deductible that tax year if you show proof of a separate lump sum payment. They are not deductible in a few cases when the loan is the result of re-financing rather than a home purchase. Application, appraisal, documentation and broker fees can not be deducted.
Some states require payment of property taxes at closing. In some instances, buyers and sellers are asked to put money into an escrow account that will cover any past and future tax obligations. Be sure to check with an attorney or real estate agent before the closing to determine your property tax commitments.
Also, be prepared to pay any assessments if buying a condominium or into an association-governed property. Fees for credit reports, notary public seals and assumptions, which includes the processing of official documents, may also arise.
Knowing what total closing costs will be before starting your home search can help you better understand what price range is right for you. In the end, the process of closing on a mortgage will be easier than you think, leaving more time to plan for your new home.
About The Author
W. Troy Swezey is the author of “WHAT TO EXPECT IN CLOSING COSTS ON A HOME PURCHASE." As a Realtor at Century 21 Paul & Associates, he has helped many individuals with their real estate needs. Visit his web site to download his free e-book, “REAL ESTATE SECRETS EXPOSED.” http://www.TroyIsMyRealtor.com or mail to: TroyC21@usa.net
New homeowners are often taken aback by up-front closing costs such as mortgage and title insurance, attorney fees, recording fees and loan points, which can run into the thousands of dollars. But there is no need to be afraid of these charges. With a little background on their purpose and shrewd financial foresight, closings can be a breeze.
A lender’s charge for processing the loan can be determined at the beginning of your buying process. Referred to as “points,” these charges are expressed as a percentage of the total loan. For instance, three points are equal to 3 percent of the borrowed amount. “Points” can also become a tool for negotiation with the lender and seller. In a buyer’s market, home sellers will often agree to pay mortgage fees in order to close a deal.
Title insurance can be a substantial expense. The one-time title fee, including search and examination, averages around $430 for a $100,000 home, but it’s recommended that you check with a local title insurance agent ahead of time to effectively determine what you’ll owe before closing.
Additional costs, such as attorney charges, and recording, transfer and inspection fees, can also be predicated ahead of time by the buyer. Most often pest and survey inspections, although included in the official closing statement, are conducted and paid for long before the closing date. However, buyers should consider them as additional up-front costs.
Some closing costs, such as “points,” are fully tax deductible that tax year if you show proof of a separate lump sum payment. They are not deductible in a few cases when the loan is the result of re-financing rather than a home purchase. Application, appraisal, documentation and broker fees can not be deducted.
Some states require payment of property taxes at closing. In some instances, buyers and sellers are asked to put money into an escrow account that will cover any past and future tax obligations. Be sure to check with an attorney or real estate agent before the closing to determine your property tax commitments.
Also, be prepared to pay any assessments if buying a condominium or into an association-governed property. Fees for credit reports, notary public seals and assumptions, which includes the processing of official documents, may also arise.
Knowing what total closing costs will be before starting your home search can help you better understand what price range is right for you. In the end, the process of closing on a mortgage will be easier than you think, leaving more time to plan for your new home.
About The Author
W. Troy Swezey is the author of “WHAT TO EXPECT IN CLOSING COSTS ON A HOME PURCHASE." As a Realtor at Century 21 Paul & Associates, he has helped many individuals with their real estate needs. Visit his web site to download his free e-book, “REAL ESTATE SECRETS EXPOSED.” http://www.TroyIsMyRealtor.com or mail to: TroyC21@usa.net
Tips to First-Time Home Buyers
There is no doubt that every American holds a vision to acquire a home of their own. This article gives you an insight on how to go about acquiring that home you've always wanted. This is a guide that may be of use to many first time home buyers.
Now some of us know that for many, home buying may be a complex and a daunting job. Home buying involves a whole lot of procedures which require some amount of research. Here below are a few helpful tips on buying a home for the first time:-
Using Available Resources
You need information in hand before going out scouting for homes in the market – information with regard to the prevailing market rates, taxes, neighborhood, etc. There are many sources from where you could obtain such data but the most effective and useful is the internet. The internet not only assists you in understanding the prevailing market conditions without the services of a real estate agent but also provides as a useful resource for locating homes on your own.
Budgeting for Costs
This emphasizes on the willingness and ability to spend. It’s wiser going about your home purchase with a pre-approved loan as it not only helps in your home negotiations but also keeps you in check with your spending ability. It is also advisable for you to try and pay at least 20% as down payment as it would avoid you from having to shell out more on what is known as PMI - private mortgage insurance – (an additional cost incurred on the mortgage to protect the lender incase you default on the loan).
Purchase Season
It is more advantageous in searching for a home during the winter season as people are busy during this holiday period and hence there is less buying demand. This is where one can utilize the opportunity to pick a home and also underbid on the asking price.
Smaller Mortgage Companies
It is very important that one takes into mind the profile of the specific mortgage company that one is handling with. Most people end up with the big companies only because of its image and popularity created, where in fact the smaller companies are more efficient in terms of customer service as well as their rates. This is due to their minor investment in advertising and such related expenditure. Hence it is advisable to go for smaller mortgage companies instead of bigger ones.
Home Inspection
Lastly and most importantly one must have a look-over the house as a final check before making the big decision. Last-minute inspections are always required just to avoid any later discovery of damages or leakages in the house. There have been some who after investing millions of dollars later uncovered the damages that came along with the house. Therefore inspection is a must!
Conclusively, it may be noted that the complexities involved in purchasing a home for the first time would be much simpler if one were to take heed of the advice mentioned above. All in all, here’s wishing you wishing you a happy home buying experience!
http://www.choiceofhomes.com/firsttimehomebuyers.htm
Out-Of-State Investor's Check List of Questions
Buying a Home is the American Dream. It is more than a place you put your hat at the end of the day. It defines you, protects you, and prospers with you. Yes, Home Ownership is a noble pursuit, but it always starts with this first, important question: Should I buy or Rent my Home? The answer, surprisingly, is not so obvious.
Now the question of “affordability” is an important one, but that’s not the subject of this article. We have a free calculator at our website. You’re welcome to use it. The subject of this article, however, deals with the questions that must be answered, before a renter can migrate into the magical realms of HOME OWNERSHIP.
Here are 5 MAGIC POINTS that you need to examine, on whether or not to BUY or RENT your next Home:
EXPENSES
COMMITMENT
MONTHLY PAYMENTS
TAX RETURNS
WEALTH
1. EXPENSES:
Renting a home requires that you give a check to the landlord each month. That’s it. You’re done. Everything else is simply taken care of for you. When you OWN a home, you are in business for yourself, and this means that you must handle all of the expenses yourself.
You are responsible, of course, for the monthly mortgage payment to the bank...
You must pay all your utilities, including phone, gas, electric, cable, trash, water, etc.
Don’t forget your responsibility to take care of maintenance. Not having enough money in the bank account is not a good enough excuse. If it’s broken, ya gotta fix it!
Don’t forget your Homeowners Association Dues, your Membership Fees, Property Taxes, Special Assessment taxes, insurance…yada, yada, yada.
When you rent a home, you give the landlord a check. When you buy a home, you must ensure that all expenses are met and managed every single month, forever...
2. COMMITMENT:
Renting and Buying have different financial commitments.
To rent a home usually requires a lease. Sometimes it’s month to month; sometimes it’s a 12 month lease. But, no matter what, there’s always a way out. Your commitment is limited to the time you choose to stay and reside there.
When you buy a home, you usually sign a 30 year mortgage, which most people would argue, is like forever. You are committed to ensuring that the payment is delivered to the bank or lender every single month, on time. They don’t care if you want to move at some point. You can sell your home of course, but you can’t just break your mortgage, like you can break your lease.
Buying a home requires a long-term, financial commitment. Renting a Home simply requires that you cut a check each month you reside at the home of choice.
3. MONTHLY PAYMENTS:
It always appears that a renter will pay less each month on monthly payments. Let me shed some light on this subject. Examined closely, this is as far from the truth as the moon to the Earth. Let’s use an example:
As a renter, you pay $800 a month, let’s say, that increases 5% each year. The math may differ with you and your landlord, but you get the idea. Barring rent-control, this is inevitable. Simple enough.
As a Homeowner on a fixed rate loan at $1000 Principal and Interest per month, the payment never changes…Never…Not ever…
In other words, the renter’s monthly rent will eventually SURPASS the homeowner’s mortgage payment…Much faster then you might expect.
In this example, our Renter’s Monthly Payments will exceed our Homeowners Mortgage Payment, in about 6 years.
4. TAX RETURNS:
A renter usually does receive a tax benefit from the State and Federal tax boards each year, sometimes referred to as a “renter’s credit”. But the Homeowner receives a deduction on the Interest paid on their loan. This is a huge benefit to the homeowner.
Let’s use the same example with our $800 renter. At the end of the year, our renter might receive a $600 renter’s credit on their 1040EZ form when doing their taxes. Simple enough.
Our Homeowner, on the other hand, paid a total of $12,000 in mortgage payments, of which about $11,500 went towards INTEREST. This INTEREST is a write-off.
Let’s see…$600 versus $11,500. Hmmm. I like that math. That equates to a nice healthy tax return for most of us, come April of next year.
Take those thousands of dollars in tax return, and go on a nice Cruise around Jamaica!
5. WEALTH:
It’s arguably much, much harder for a renter to build wealth. There is no built-in mechanism for appreciation, whereas the homeowner has postured themselves wisely for the future.
Let’s say we have a renter that wants to get wealthy. Great! They must go find a business to run, or a stock to invest in, or come up with a great invention, or be the next rock star, or follow a family friends “tip”, and go do Cattle Futures from August to September (just an example, folks…I don’t know anything about cattle…). In any event, most people would be concerned that our renter is following the proverbial “pipe dream” towards wealth.
But let’s say we have a homeowner who wants to build wealth. Great! What do they need to do? Simple….Nothing…Pay the mortgage…Live in the house…Go work your job. That’s it. Real Estate appreciates in value, on average, over the long haul, like no other financial vehicle. It is a virtual certainty, and it is automatic. The homeowner controls the total value of the home. That’s the magic of leverage.
Let me drive the point home: Someone might buy a house at $150,000, let’s say, and over the course of 7 to 10 years, it is completely reasonable to suggest that this very same house could be worth around $600,000.
Renters do not have a built in advantage for building wealth, whereas Real Estate appreciates in value as a virtual certainty. They don’t call home-ownership the “American Dream” for nothing!
SUMMARY:
The subject of deciding on whether to Buy or Rent, is not simple. In the end, it boils down to a question of complexity. Being a Renter is simple. Being a Homeowner is more complex, and yet, that does not mean that it is not within your grasp. It IS!!! There are so many people that are just waiting in the wings, yearning to help you get there. Real Estate Agents, Mortgage Brokers, Friends, Family, etc.
With all of these resources around you, just about anyone can own a home, and in this great country, the American Dream of Home Ownership is completely within all of our grasps!
But do me a favor. Give yourself the time to examine these important questions first. Look within. As we all get older in life, we yearn for more. Buying versus Renting is a common theme in this journey. As we wave goodbye to the younger years, we say so long to the simplicity of life, and we say hello to the promise of prosperity, wealth, and a better tomorrow. We also say hello to higher, more complex things. Often times, it’s simply the willingness to accept complexity that will get you to the understanding you need.
Best of luck on your journey, from Renting to Owning your next Home!
We’ve enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.
About The Author
Tom Levine provides a solid, common sense approach to solving problems and answering questions relating to consumer loan products. His website seeks to provide free online resources for the consumer, including rate-watch, tips and articles, financial communication, news, and links to products and services. You can check out Tom's website here: http://loan-resources.org , or you can email Tom at info@loan-resources.org .
Now the question of “affordability” is an important one, but that’s not the subject of this article. We have a free calculator at our website. You’re welcome to use it. The subject of this article, however, deals with the questions that must be answered, before a renter can migrate into the magical realms of HOME OWNERSHIP.
Here are 5 MAGIC POINTS that you need to examine, on whether or not to BUY or RENT your next Home:
EXPENSES
COMMITMENT
MONTHLY PAYMENTS
TAX RETURNS
WEALTH
1. EXPENSES:
Renting a home requires that you give a check to the landlord each month. That’s it. You’re done. Everything else is simply taken care of for you. When you OWN a home, you are in business for yourself, and this means that you must handle all of the expenses yourself.
You are responsible, of course, for the monthly mortgage payment to the bank...
You must pay all your utilities, including phone, gas, electric, cable, trash, water, etc.
Don’t forget your responsibility to take care of maintenance. Not having enough money in the bank account is not a good enough excuse. If it’s broken, ya gotta fix it!
Don’t forget your Homeowners Association Dues, your Membership Fees, Property Taxes, Special Assessment taxes, insurance…yada, yada, yada.
When you rent a home, you give the landlord a check. When you buy a home, you must ensure that all expenses are met and managed every single month, forever...
2. COMMITMENT:
Renting and Buying have different financial commitments.
To rent a home usually requires a lease. Sometimes it’s month to month; sometimes it’s a 12 month lease. But, no matter what, there’s always a way out. Your commitment is limited to the time you choose to stay and reside there.
When you buy a home, you usually sign a 30 year mortgage, which most people would argue, is like forever. You are committed to ensuring that the payment is delivered to the bank or lender every single month, on time. They don’t care if you want to move at some point. You can sell your home of course, but you can’t just break your mortgage, like you can break your lease.
Buying a home requires a long-term, financial commitment. Renting a Home simply requires that you cut a check each month you reside at the home of choice.
3. MONTHLY PAYMENTS:
It always appears that a renter will pay less each month on monthly payments. Let me shed some light on this subject. Examined closely, this is as far from the truth as the moon to the Earth. Let’s use an example:
As a renter, you pay $800 a month, let’s say, that increases 5% each year. The math may differ with you and your landlord, but you get the idea. Barring rent-control, this is inevitable. Simple enough.
As a Homeowner on a fixed rate loan at $1000 Principal and Interest per month, the payment never changes…Never…Not ever…
In other words, the renter’s monthly rent will eventually SURPASS the homeowner’s mortgage payment…Much faster then you might expect.
In this example, our Renter’s Monthly Payments will exceed our Homeowners Mortgage Payment, in about 6 years.
4. TAX RETURNS:
A renter usually does receive a tax benefit from the State and Federal tax boards each year, sometimes referred to as a “renter’s credit”. But the Homeowner receives a deduction on the Interest paid on their loan. This is a huge benefit to the homeowner.
Let’s use the same example with our $800 renter. At the end of the year, our renter might receive a $600 renter’s credit on their 1040EZ form when doing their taxes. Simple enough.
Our Homeowner, on the other hand, paid a total of $12,000 in mortgage payments, of which about $11,500 went towards INTEREST. This INTEREST is a write-off.
Let’s see…$600 versus $11,500. Hmmm. I like that math. That equates to a nice healthy tax return for most of us, come April of next year.
Take those thousands of dollars in tax return, and go on a nice Cruise around Jamaica!
5. WEALTH:
It’s arguably much, much harder for a renter to build wealth. There is no built-in mechanism for appreciation, whereas the homeowner has postured themselves wisely for the future.
Let’s say we have a renter that wants to get wealthy. Great! They must go find a business to run, or a stock to invest in, or come up with a great invention, or be the next rock star, or follow a family friends “tip”, and go do Cattle Futures from August to September (just an example, folks…I don’t know anything about cattle…). In any event, most people would be concerned that our renter is following the proverbial “pipe dream” towards wealth.
But let’s say we have a homeowner who wants to build wealth. Great! What do they need to do? Simple….Nothing…Pay the mortgage…Live in the house…Go work your job. That’s it. Real Estate appreciates in value, on average, over the long haul, like no other financial vehicle. It is a virtual certainty, and it is automatic. The homeowner controls the total value of the home. That’s the magic of leverage.
Let me drive the point home: Someone might buy a house at $150,000, let’s say, and over the course of 7 to 10 years, it is completely reasonable to suggest that this very same house could be worth around $600,000.
Renters do not have a built in advantage for building wealth, whereas Real Estate appreciates in value as a virtual certainty. They don’t call home-ownership the “American Dream” for nothing!
SUMMARY:
The subject of deciding on whether to Buy or Rent, is not simple. In the end, it boils down to a question of complexity. Being a Renter is simple. Being a Homeowner is more complex, and yet, that does not mean that it is not within your grasp. It IS!!! There are so many people that are just waiting in the wings, yearning to help you get there. Real Estate Agents, Mortgage Brokers, Friends, Family, etc.
With all of these resources around you, just about anyone can own a home, and in this great country, the American Dream of Home Ownership is completely within all of our grasps!
But do me a favor. Give yourself the time to examine these important questions first. Look within. As we all get older in life, we yearn for more. Buying versus Renting is a common theme in this journey. As we wave goodbye to the younger years, we say so long to the simplicity of life, and we say hello to the promise of prosperity, wealth, and a better tomorrow. We also say hello to higher, more complex things. Often times, it’s simply the willingness to accept complexity that will get you to the understanding you need.
Best of luck on your journey, from Renting to Owning your next Home!
We’ve enjoyed providing this information to you, and we wish you the best of luck in your pursuits. Remember to always seek out good advice from those you trust, and never turn your back on your own common sense.
About The Author
Tom Levine provides a solid, common sense approach to solving problems and answering questions relating to consumer loan products. His website seeks to provide free online resources for the consumer, including rate-watch, tips and articles, financial communication, news, and links to products and services. You can check out Tom's website here: http://loan-resources.org , or you can email Tom at info@loan-resources.org .
How Best To Negotiate A House Deal
In almost all our business dealings, negotiating is a key process. In clichéd terms, its the art of making sure that you get the best deal in the best manner possible. Whether you are buying or selling a house, in the real estate business, negotiations are inevitable.
When you've finally found the right buyer or the right house you want to purchase, its time to get all your hidden tactics out to settle the deal on terms that are suitable for you.
However, there are some basic pointers you should keep in mind to ensure that the deal falls through smoothly.
Comparative market analysis of homes in the area- Get your agent to check the selling prices of the other houses in your area. Since location is one of the thumb rules of real estate, its important to check the value of your house with respect to those in your locality. While negotiating, this piece of information will prove to be beneficial to both the buyer and the seller. You can use your facts to justify the rate at which you're selling or to prove that you are actually offering a lesser rate. Or if you're the buyer, you can use the numbers to validate the lower price you are asking for.
Play poker - You don't have to actually bluff but you have to learn to keep your emotions in check while negotiating a deal. Displaying your extreme eagerness to settle quickly, may be the easiest way to have someone take advantage of you. It is essential to conduct yourself calmly during the negotiation process.
Mention your other options- Speaking of other prospective buyers or other houses you're looking at will play to your advantage. It always helps to let others know that you have other alternatives during negotiations.
Time factor- Proposing to settle as soon as possible will play a major role in clinching a deal. If you're willing to buy a house immediately and settle all formalities at the earliest, odds are that the owner may favor you over his other options. On the other hand, if you're the seller, offering to close the deal sooner may give you the advantage of negotiating on the price.
Including items - If there's a major hitch while trying to settle on the price, just include some movable items or appliances. This will help in settling for the price you want.
The above are all crucial and must be kept in mind. But it all boils down to your understanding of the other party and being creative in your negotiating style. Make sure you don't put the other party in an uncomfortable position and drive them away entirely. But once you've reached a settlement, make sure that all the terms and conditions are documented to prevent any misunderstanding later.
http://www.choiceofhomes.com/negotiatehousedeal.htm
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