|Real Estate Information|
A Powerful Suggested Technique for YOUR Home & Property Search
A Powerful Suggested Technique for YOUR Home & Property Search
by Jody Hudson
You can be a pro at buying a home: Whether you are buying your first home or you are an experienced home buyer who owns more than one home, there are some things that can help you get faster results and get more professional and pleasant help from your Realtor.
A home or property purchase is one of the most important and exciting events to experience. Owning a home can help you build equity while reducing your income tax.
Land of any size requires minimal maintenance and is one of the best long term investments, even compared to gold or diamonds. However, along with the low maintenance, there is seldom any income to offset the cost. There are exceptions, mobile home parks, parking lots, and land rental under a shopping center are wonderful investments with relatively low maintenance if any.
Those who own land and property, as opposed to those who rent or lease, are historically considered to have a measure of stability, success and personal merit in addition to the obvious personal financial worth. This is so true that our Founding Fathers, who were dedicated students of all recorded human history, decreed that to be eligible to vote in our country a person must be a freeholder -- that is one who owned property mortgage free. They knew that the most responsible citizens would be the most responsible voters. Few of us would meet that criteria today. A person who held his property debt free, that is with a free and clear title, a Freeholder, was considered to have made good decisions, had good self control and managed his affairs well. Therefore, that person was considered to have obtained a level of maturity and responsibility -- that proved an ability to manage personal affairs and money as well as a priority to think of the future. The person who owned property with no debt, thus had obtained a sufficient ability to be allowed to vote on the management of our government and the public trust.
We are a nation of home and property owners more than any other nation on earth. However, most of us have a mortgage these days. If you, like most of us, need a mortgage on your new property, we hope you will find value in this article and that it will help you understand the advantage of planning your mortgage as a prerequisite to your purchase of a home. Having completed the mortgage acquisition step, a Realtor can help you organize your home search, as you begin browsing through the housing market.
Determining what features you want in your ideal or dream house and what payments you can afford are the important first steps. We ask that you consider the entire cost of home ownership, that is a total of the principle and interest payment, taxes, insurance and maintenance. Most folks are aware of the first four P.I.T.I. or Principle, Interest, Taxes and Insurance. There is another cost of home ownership that is not often figured in. It is property maintenance.
Maintenance is usually about 5% of the value of the improvements per year, if the average is taken over a long period of time, such as forty years. Many people think that 5% is too high a figure and prefer to use 2-3% instead. Whichever you use, make sure you figure in the cost of maintenance or you will end up not easily able to afford the upkeep on your property. This is very important to realize whether you are buying a new home or an older one. And, the older home will usually have a lot of deferred maintenance -- that is things that should have been done and haven't been!
If, for example, you purchase a home and lot where the vacant lot would sell for $50,000, and the home could be replaced for $250,000 and the landscaping value is $20,000 -- a rule of thumb is that you should figure $12,000 per year in maintenance of the home and another thousand in the maintenance of the grounds. We see properties all the time where the improvements have what is known as deferred maintenance. That work that should have been done and hasn't been, soon will need to be done. Deferred maintenance, maintenance not done that should have been done, is subtracted from the value of a home by those in the market, even if it is subconsciously done.
Home maintenance includes painting, caulking, re-carpeting, floor sanding refinishing, re-roofing every 15 to 50 years, depending on the composition of the roof and even replacing of windows, trim and siding. Outside there are sidewalks, the driveway, out buildings, decks, mulching, shrubbery maintenance, fertilizing, reseeding and replanting and of course the regular cutting and similar lawn care expenses. The reason we bring all this up about maintenance is that we hope you figure in the cost of it in addition to your home cost. If maintenance is not figured in you will end up with a mortgage plus maintenance cost or have to borrow more money to do the work that is needed, and that makes it more difficult to afford your new home.
It is important to figure in all the appropriate costs, expenses and other pertinent things, and to get a mortgage that you are able and willing to afford. It is important to your Realtor too. Some Realtors, in order to conserve their time and have more available for serious buyers, require that a person or couple be pre-qualified for the price range in which they seek to purchase a property first, before they begin to show properties. This is a good idea for the buyer as well as the Realtor and some sellers even ask us to NOT bring any prospective purchasers, unless they are financially prequalified -- in writing!
Mortgage brokers will gladly pull your credit report and get you a letter of pre-qualification or even a loan commitment letter for the amount you need to purchase a home. If you have a written loan commitment in hand when you first contact a Realtor, you will get considerably more and better attention.
One of the most difficult situations for a Realtor is that some percentage of the prospective purchasers that come to see properties for sale are not able to purchase those properties. Roughly 95% of a Realtor's time is preparation, paper work, promotion, marketing, web site modification and maintenance as well as maintaining contact with our most qualified buyers and sellers. When we spend two or three hours with a prospective purchaser, and it's usually far more, we are taking away from all the other things we are responsible to do for our other buyers and for our sellers. That time has to be made up.
For properties under $200,000 perhaps half of the folks that come to see us for a home are not able to buy the one they want to see. For properties under $100,000 about 75% of the folks who ask us to see properties are not able to purchase those properties. And, for those folks who come into our offices or call us regarding properties under $100,000 the percentage who can't purchase what they want is greater and greater as the price goes down.
Interestingly enough, a fairly high percentage of those who seek a property over a million dollars are qualified to purchase those properties without the help of our mortgage broker. Either they have their own banker, or they are able to obtain the funds on their own from other investments, or perhaps they even have a liquid assets account such as a money market account.
If you wish to be a shining light, and of greatest interest to your chosen Realtor, you are well advised to seek a mortgage broker or mortgage banker first and get a response in writing to bring with you. Your mortgage banker will probably ask for copies of prior years' tax returns. If you have copies of your credit reports, tax returns, lists of assets and all liabilities, and your bank statements are organized, you're ready to start exploring the housing market and shopping for a mortgage.
By the way, as I write this, our in-house Mortgage Broker or another lender of our choice, is able to give you a better rate and better terms than any other mortgage banker or broker in the market. Whether you use us as your Realtor or not, and if you are planning to purchase in our area we hope you will use us; you will get the utmost attention from your Realtor when you show up with a loan commitment!
Now SHOP! And, have fun!
Copyright 2004 by Jody Hudson www.JodyHudson.com
Jody Hudson has been a Realtor since 1972 and in the real estate business as a member of a family real estate business even before that.
Tyler Ross pleads guilty to falsifying mortgage documents Crain's Detroit Business
Erie County real estate transactions Buffalo News
This Week in Celebrity Homes: Richard Burton, Charlie Watts Mansion Global
Real Estate Investing: How You Can Profit Now Yahoo Finance
'Fantasy world': Donald Trump faces New York trial Monday for damages after judge finds fraud in real estate empire - USA TODAY
'Fantasy world': Donald Trump faces New York trial Monday for damages after judge finds fraud in real estate empire USA TODAY
How China's Property Crisis Is Testing Its Too-Big-to-Fail Banks The New York Times
The 35 Go-To L.A. Real Estate Brokers for BeyoncĂ©, J. Lo and Other Hollywood Heavyweights - Hollywood Reporter
The 35 Go-To L.A. Real Estate Brokers for BeyoncĂ©, J. Lo and Other Hollywood Heavyweights Hollywood Reporter
Real Estate Executive Pleads Guilty to Multi-Year Conspiracy to ... Department of Justice
When Artificial Intelligence meets â€śRealâ€ť Estate | Real Estate ... Santa Fe New Mexican
Illinois real estate: Home sales in Peoria, Tazewell, Woodford counties Peoria Journal Star
Berks County real estate transactions for Oct. 1 Reading Eagle
Restaurant Real Estate: October 2023 Portland Food Map
Real estate stats, driven by data The Valley Reporter
Real Estate Investing: How You Can Profit Now Kiplinger's Personal Finance
How to Increase Cash From Real Estate: Millionaire Investor Business Insider
RNR Real Estate Briefs â€“ Texas & more Realty News Report
News from SFAR: Market perspectives from SFAR | Real Estate ... Santa Fe New Mexican
Real Estate Sales Include Dunkirk Building, Ellery Campground Jamestown Post Journal
New York judge's Mar-a-Lago value rattles Palm Beach luxury real ... South Florida Sun Sentinel
The Office Real Estate Depression The Motley Fool
Out and about: Predictably 80/20 | Real Estate | santafenewmexican ... Santa Fe New Mexican
South Shore, Mass., real estate sales for Aug. 28-Sept. 1, 2023 The Patriot Ledger
WSU Center for Real Estate releases 2024 Kansas Housing Markets ... Wichita State University
4 Ways To Shift Your Real Estate Marketing in Autumn RisMedia.com
China Evergrande Suspends Trading as New Trouble Roils ... The New York Times
Q&A: Wallingford real estate agent reflects on Meriden upbringing ... Meriden Record-Journal
ICF Real Estate Colloquium on Affordable Housing | Yale School of ... Yale School of Management
Kleins Exodus Real Estate buys 6 residential properties in Stark ... Massillon Independent
Routt County real estate sales eclipse $28.1M from Sept. 22-28 Steamboat Pilot & Today
This is one of the most resilient real estate areas, according to the world's largest commercial property owner - CNBC
This is one of the most resilient real estate areas, according to the world's largest commercial property owner CNBC
Chairman Carper's Opening Statement for Hearing on the GSA's ... - US Senate Committee on Environment and Public Works
Chairman Carper's Opening Statement for Hearing on the GSA's ... US Senate Committee on Environment and Public Works
Real Estate Broker Gets House Arrest in Homeless-Shelter Bribery ... The New York Times
OT Real Estate Spotlight of the Week: 10 Stone Creek Park The Owensboro Times
Opinion | Was Trumpâ€™s Real Estate Hype Fraud or Just Business as ... The New York Times
Initiative highlights overlooked real estate on Atlanta's Southside - The Atlanta Journal Constitution
Initiative highlights overlooked real estate on Atlanta's Southside The Atlanta Journal Constitution
Rick Ross And Funk Flex Clown DJ Envy Over Real Estate Fraud Allegations Yahoo Entertainment
Petaluma: See how much real estate prices have changed last week The Santa Rosa Press Democrat
HILCO REAL ESTATE ANNOUNCES THE SALE OF 39,900Â± SF INDUSTRIAL WAREHOUSE IN DELTA, CO - Yahoo Finance
Real estate entrepreneur Jason St. John returns to campus Central Michigan University
Real Estate, Consumer Confidence and More: What to Watch This ... The Wall Street Journal
Japan's Economy Minister Warns of Risk From China's Real-Estate ... The Wall Street Journal
Augustď»ż ď»ż2023ď»ż's Median Price of Wake County Real Estate ď»żdecreased ... - Wake County Government (.gov)
Augustď»ż ď»ż2023ď»ż's Median Price of Wake County Real Estate ď»żdecreased ... Wake County Government (.gov)
REAL ESTATE BRIEFS Las Vegas Review-Journal
High stakes development in South Philly | Real Estate Newsletter The Philadelphia Inquirer
Prime Real Estate Grand Opening Magazine of Santa Clarita
Attend Minority Enterprise Development Week Events: Business ... Philadelphia Water Department
Real estate broker in the Poconos accused of theft WNEP Scranton/Wilkes-Barre
Foster Real Estate Report: Save money and the planet at home Shawnee Mission Post
Real Estate Agents Save the Day When Tenants' Rights Violated Kiplinger's Personal Finance
$10 Million Gift Establishes Wilbur C. Henderson Real Estate ... Drexel University
How to Sell Your House For Full Price
Many people believe that a real estate broker is needed to sell their house. So they post it with a broker who may or may not sell it and if they do charge exorbitant fees.
Property in Northern Spain
If you're looking for the 'real' Spain where the culture, customs and the traditional Spanish lifestyle have been preserved - a Spain long ago lost and forgotten along the Costa del Sol - consider Northern Spain.Northern Spain has always been a popular holiday destination for southern Spanish tourists, but until relatively recently it was largely unexplored and undiscovered by foreign tourists and those expatriates seeking a new home overseas.
Important Information For Condo Buyers
Here is a step by step guide for buyers looking to buy a condo in any area. These are important tactics to make a solid and accurate judgement on the property you're looking to purchase.
Building Your Dream Home - Part 1
For most of my adult life I had thought about someday building my Dream Home. Several years ago I finally got the chance.
Do I Need A Real Estate Survey?
Getting a survey before you close on any real estate is very important.Some people actually buy real estate without having a survey done.
Real Estate Web Design - 3 Items You Must Include on Your Site
Real estate web design requires you to do things a little bit differently because you are selling either your services or actual homes, so there must be several things present on the web page to make it user friendly. Unfortunately, many real estate web sites are poorly designed, ask visitors to supply tons of personal information before being able to view any information, don't provide enough information not to mention photos, and are all around a pain for many visitors.
Selling Your Home: 5 Deal Killers That Are Lurking In Older Homes
You've listed your home for sale, you have a Buyer and now their Inspector is performing an inspection. You think you have a pretty good home, but do you really know for sure? What is he finding? Why is it taking so long? Here are 5 deal killers to watch out for when selling your home.
Home Selection Checklist - A Good Aid When Choosing a Home
This home selection checklist is a tool to help you select a home that is right for you and your family. Before you select a home and get a mortgage, you need to know if you will be happy with the home you select for the coming years.
What are the Top 11.5 Criteria for Selecting an Orlando Investment Property
1. Make sure units are larger than 1800 square feet.
Sellers, Are You Having A Hard Time Selling Your Home?
Sue and Chuck DeFiore have the perfect solution for you - Lease Purchasing your home!What is Lease Purchasing?A Lease Purchase is a process that combines a basic rental lease with an agreement to purchase, or with an option to purchase the property. The Buyer (or Lease-Purchaser) pays to the seller a monthly payment that usually approximates a rental amount or a typical mortgage payment on the home.
Is Second Home Ownership In Your Future?
According to the National Association of REALTORS® (NAR), a record 2.82 million second homes were sold in 2004.
Property Investing Secrets 8
Property Investing: A Buyer's Secret Weapon When Purchasing Real EstateMy friend, Roger, does property investing and is a licensed real estate agent. Recently he looked at a property in another state that was probably worth $225,000.
How Much is that House in the Window?
With the recent release from the UK's biggest mortgage lender, the Halifax, of its latest house price report for May 2005, showing that prices fell by 0.6% last month, and prices falling just 0.
Real Estate Investing: Sales and Negotiation Skills are Critical
Do you want to build wealth through real estate? You need expertise in two critical areas: specific investment strategies and sales and negotiation skills. But if knowing how to identify good deals is what's really important about investing in real estate, why do investors need to worry about their sales and negotiation skills?"Knowing how to identify good deals is certainly a critical part of real estate investing, but it's not the only part," says Russ Whitney, internationally recognized real estate expert and bestselling author of Millionaire Real Estate Mentor (Dearborn Trade Publishing).
How Do I Implement The Lease Purchase Plan?
Well, as we have discussed in previous newsletters first you have to set up goals for yourself, both long term and short term. Don't forget these goals define how your business is run.
Tidy Up The Outside, Reap The Rewards
There isn't a realtor in existence who wouldn't tell you that one of the most important terms that you can learn when you're trying to sell your house, is "curb appeal."So while you're sprucing up your home, it's wise to start outside, and work your way in.
The Real Estate Market In Spain: Making Profits Out Of Sand
The Real estate market in Spain keeps gaining momentum and is of a vital interest among overseas investors. Property prices in the country continue growing at rapid pace due to a sustainable development in many areas of the mainland and the islands.
How Home Buyer Rebates Work
In today's tight housing market, many buyers are looking for ways to stretch their dollars far enough to make that dream home a reality. One little-known strategy that's gaining popularity with consumers is the home buyer rebate.
Probate & Obituary Marketing
I start my marketing with obituaries followed with probate filings and find it just another effective way to acquire property.Short of courthouse research you can go to your local library and go to the reference department and research using what is called a Polk City directory that will list if the deceased party owns real estate.
Look Past the Bottom Line for a Propertys Potential
It's unfortunate that many real estate investors tend to look at the bottom line when deliberating about a property, rather than the big picture. The real moneymakers in real estate investments are the people with vision, who think creatively, and are willing to assume some level of risk.
|home | site map|
|© 2006 TIGER MEDIA|