www.RickStrohm.com
Rick & Rick Strohm, Jr.
May 16, 2012
When I utter the words "down payment", do you cringe? Like most homebuyers today you do, as coming up with a down payment seems like a major obstacle to overcome. Obviously the more money (down payment) a homebuyer puts on the table, the more choices the buyer has in terms of purchase price range and the lower the monthly payment will be over the long run. It can take years to save up enough money for a substantial down payment and you might miss a good opportunity (like real estate here in the Smoky Mountains of NC) by continuing to wait. If you are currently saving up down payment money for your next home purchase, then these down payment secrets may help:
- Gift Money. Every homebuyer thinks that their parents, family or even their friends might assist them some in their homebuying process. In fact, many mortgage programs will allow some form of "gift money", which is money someone gives you towards the purchase of your home/property. Discuss this with your mortgage professional as to how much of your down payment can be covered by gift money, as there are guidelines for how much gift money can be used.
Gift money sounds great, right? Well the downside of gift money could create relationship issues with the person(s) gifting this money, be careful about "strings" attached with this money. Sounds horrible, but this could happen to you and the person gifting the money. Lenders will typically ask for a "gift letter" that accompanies the gift money which states that the giver is not using this money as a loan, but rather a gift. Again, talk to your lending professional about gift money before accepting any money from friends, family or parents. - Your Income. I'm not talking about not splurging on that cup of coffee at Starbucks; rather, going through all your spending records and looking for major areas in your spending that you can cut. If you are truly serious about owning a home, then you must begin here!
For example, let’s start by looking at your eating habits. Do you eat out every day for lunch? Let's say you eat fast food and spend $20/day, that's $400/month or close to $5,000/year - just on eating out! Doesn't sound like much money at $20/day, but over the year it is - you could start saving by bring lunch from home. By changing your spending habits, you could save a lot of money that could be used for your home purchase. - Go Local. Remember the days of the federal home buyer tax credit or the zero-down loans? Ok, well we all know that those days are long gone! However, there are local assistance programs that you should be aware of and they all start with your local government and county. Many of these programs deal with helping first-time homebuyers and some are exclusive for buyers with low or moderate incomes. The funds are limited and most require:
- Buyer to bring their own funds to the table
- Home(s) must meet minimum condition criteria
- Completion of homeowner education classes
Are you looking for these assistance programs? Then start by Google searching your city, county and state websites. Most websites will have links for residents and homebuyer assistance programs. Oh, and make sure that the websites you are searching end in ".gov" - I don't want you falling for the "scam" websites that are all over the Internet! - Assets. I am talking about "your" assets here. Did you know that some retirement accounts will allow you to borrow against them, penalty free, and apply those funds toward the down payment of your home? Should everyone try this, of course not. However, there are cases in which it may make sense to get your down payment up to 20%, by borrowing some money from yourself. Since you are borrowing from yourself, you will be required to pay yourself back. It can be a win-win situation for your home buying down payment.
- Employers. Did you know that first responders, police and fire personnel agencies will make available down payment/home buying assistance programs for their workers? Even some large employers and small companies seeking to recruit top-level personnel offer these assistance programs. All you have to do is stop by your human resources department to see if such assistance is available to you!
Ok well those are just some "tips" to get your started. Talk with your Realtor and mortgage professional about what has been discussed in this blog. Or you can contact me by emailing me - just CLICK HERE.
Rick, Jr.
www.RickStrohm.com
Rick & Rick Strohm, Jr.
April 18, 2012
So you're looking to move to a new area of the country - or - you are looking for a vacation home in another area of the country...let's say my area of the Great Smoky Mountains of North Carolina. You will most likely be asking yourself, "How do I find a good Realtor?" Well you've come to the right place! Needless to say, look no futher because you found the best real estate team in the mountains of NC. But, for sake of a long blog, I will share with you some tips on how to pick your next Realtor:
Obtain referrals from other clients. Any good Realtor will have a website, come on it is the digital age! If that Realtor has a website, then they "should" have a testimonials link on their website - here is my link,
CLICK HERE. Past clients, friends, family and colleagues are the best way to judget a Realtor. Another great way is by looking at their Facebook page -
CLICK HERE for ours.
Check Realtor online posts. You will want to pick a Realtor who engages his/her clients online - best way is to see if he/she has active blog posts. Your Realtor should go above and beyond in posting about their professional practice.
Compare agents. You should be able to Google a Realtors name and have them pop up all over the Internet, if they are active online. You can easily compare several Realtors online. Who is more active online? When you Google his/her name, how frequently does that name appear? Take a look at what happens when you Google "Rick Strohm" -
CLICK HERE. As you can see, we are very active on the Internet - signs of a good Realtor.
Contact the Realtor. Finally the last step would be to contact the Realtor, ask them questions and listen to their answers. Spend some time with them and share with them your wants/needs that you are looking for in your next real estate transaction. The Realtor should be open and honest; you should feel comfortable talking with them.
Hope that helps some of you in picking your next Realtor - you can contact me anytime if you have questions!
Rick, Jr.
www.RickStrohm.com
Rick & Rick Strohm, Jr.
April 13, 2012
People hear, understand and decipher information differently. The same is true with Sellers and Buyers. What you, the Seller, might tell a Buyer about your home/property...the Buyer might walk away with a totally different impression, other than what you intended. The following are examples of what I am referring to:
Seller: This home is extremely comfortable and has been in my family for several generations.
Buyer: The home is nice, has plenty of space, but probably has a lot of repairs that need to be done/fixed.
Although it is very comforting to the Buyer(s) to hear about how your home was passed down from your great grandparents, in the Buyers mind they are thinking of all the re-painting, re-modeling, all the squeaking floors or how they will have to replace doors that won't open easily. This might create a red flag for a Buyer in their mind(s). My advice would be that even if you have a great historical story about how your home was passed down through the years, do not make these remarks...unless they are followed up by "but we recently remodeled the home and updated the appliances".
Seller: Owner financing for qualified buyer - or - seller will cary
Buyer: I'm only going to give the Seller $500 and in turn they will give me their home with low monthly payments!
During these tough economic times Sellers are becoming more desperate to sell their property, this can be good (for the Buyer) and not so good (for the Seller). Buyers are finding it more difficult to become qualified for a home purchase, but they want a home. Sellers are becoming more impatient with our current real estate market, so they are looking for an "alternate" way to sell their home - a more creative way, if you will. Some seller financing is good, especially in a housing market where homes are appraising for less than market value - or - there are numerous foreclosures in the area. However, when offering incentives to a Buyer make sure you talk with your Realtor about how to specifically state all terms of the financing, that way all Buyers are clear. Keep in mind that even if you are offering "seller financing", the Buyer still needs to come up with enough "cash" to cover your Realtor's commission and some money in your pocket!
Seller: This is a cozy home, it's charming
Buyer: The home is SMALL, I will get claustrophobic
Try and avoid using these marketing terms to describe your home/property. You want to make you home seem desireable, but in today's real estate market Buyers will see this as a home that might be "cute"; however, they might not visit the property in fear of wasting their time on a home that will not fit their needs or desires.
Seller: Home and neighborhood have potential upside - or - amazing investment
Buyer: The home needs MAJOR work!
You might be trying to talk up your home and the area in which it is, but Buyers will think that your home needs work or that the neighborhood is not that nice. Be careful, you do not want to scare any "would be" Buyers away from your property.
The best thing to do is work with an experienced Realtor, like myself - you can contact me anytime. I can better steer you with your marketing lingo and can help you sell your home/property much quicker in this slow real estate market, than you can do alone. Email me anytime!
Rick, Jr.
www.RickStrohm.com
Rick & Rick Strohm, Jr.
March 23, 2012
We have all heard "facts" about real estate - but are all of them true? I usually do not start out my blog by asking a question, but let's look at some real estate facts that you've heard and see if they are true or fiction:
1) Location, Location, Location. FACT!
This is very true when dealing with real estate. Obviously everything about a home can be changed/modified except for the home's location. Having a home in a bad part of town will drastically reduce the value of your home.
2) The cost of buying a home is more that it is to rent. Fact & Fiction.
An interesting statistic, provided from the National Association of Realtors, stated that in 98% of American cities it is surprisingly less expensive to buy a home than it is to rent. Of course it depends on the cost of the home you are wanting to purchase, the more expensive the home is the harder is may be to obtain (and keep in mind the money you will need for a down payment!). If you do not have the money to purchase a home right now, then your best option is to rent.
3) When selling your home...list high! Fiction.
It is best to "never" list higher than market value when selling/marketing your home. Most sellers think that when they list their home high they will have a greater room to bargain with the buyers. Unfortunately, when you list your home too high...buyers are turned off by the list price and will not view your home.
4) Buyers - always offer below market price. Fiction.
The keyword is "always", obviously this is not always the case. In today's real estate market seller's (when advised by an experienced Realtor) have listed their property at the right price (again there is always "wiggle room" in there so both the buyer and the seller feel like they "made a deal"). My suggestion for the buyer(s) is to consult with your Realtor and then come up with a fair price to offer that will not offend the seller(s). Again, talk with your Realtor before making an offer.
5) FSBO (For Sale By Owner) will save you money. Fiction.
This might be where I will get a lot of emails arguing this point; however, listing your home as a FSBO might save you the commission owed to the selling agent, but most FSBO sellers are willing to by a buyers broker commission. Here are the reasons you do not want to sell your property by FSBO:
Your property will not be seen on the MLS (Multiple Listing Service), which is used by all agents in that area
Will not have professional staging of your property to make it look more appealing
You will have to pay an attorney to assist you with the disclosures and contracts that will be involved in the sale
It all boils down to finding the "right" Realtor who will drastically assist you in selling your property, get the most eyes on your property and attract the right buyer. Contact me today if you are looking to sell your home or land here in the Smoky Mountain NC mountains!
Rick, Jr.
Fantastic Acreage!
• lot / land
-
MLS®
$79,900
- DRASTICALLY REDUCED!
Luftee Lake, Bryson City
-
REMARKS: Fantastic 10.638 acres just minutes from downtown Bryson City & Cherokee, NC. Location, Location, Location...is everything with this property! Extremely clean & neat neighborhood, convenient to shopping, dining & outdoor activities. Must see for the price! End of paved road privacy, low maintenance & perfect setting for a full-time or vacation rental. Land coincides with MLS 44596 (home with 1.323 acres), home/land could be bundled - ask listing agent for more details. Must see!
DIRECTIONS: From Sylva take US-74 towards Bryson City, exit 69 Hyatt Creek, right off exit Hyatt Creek Road, right on US-19 N/Ela Road (towards Cherokee, NC), approx. 1 mile turn right on Luftee Lake Road, approx. 0.5 miles to home on left, see signs.
Property information
Fontana Lake Views!
• lot / land
-
MLS®
$179,000
- Lakefront Lot!
Fontana Lake Estates, Bryson City
-
REMARKS: Fantastic 2.21 acre lot in gated/private Fontana Lake Estates with lake view of the Great Smoky Mountain Rail Road tressel. The lot is flat enough to build any size home you wanted! This lot is lakefront but not available for TVA dock permit. Call listing agent for more details and showing instructions.
AGENT REMARKS: Fantastic lot with awesome Fontana Lake views!
Property information
Bring All Offers!
• lot / land
-
MLS®
$299,000
- Drastically Reduced!
Lake View Landing, Bryson City
-
REMARKS: DRASTICALLY REDUCED!!! This is a fantastic large (22.49 acres) piece of property - perfect for a private estate or for developing! The parcel has been surveyed into 9 lots with a common area. All the lots have been approved for septic, 2 of the lots have a prepared home site on them already. If you're looking for mountain view property close to Bryson City, NC - then look no further. This property offers it all! There are amazing panoramic views of the Great Smoky Mountains, close to shopping & dining, established roads and the property is extremely private. This is an awesome investment property - lots are ready to be sold individually. Motivated seller - BRING ALL OFFERS!
DIRECTIONS: Greasy Branch - take gravel road on RIGHT (before Rusty's Ridge). Property begins after the home on the right - see signs.
Property information
www.RickStrohm.com
Rick & Rick Strohm, Jr.
February 29, 2012
Thought I would share some tips with you on helping sell your home this LEAP YEAR. Ok, so if you're like many American's still trying to sell your home during this slow real estate market I am here to share with you some tips that you may (or may not) have thought of to increase your home's appeal.
1) Boost Curb Appeal. Hopefully you're not in negative equity with your home; however, if you are you may have been spending every dime you have on keeping your head above water. If this is the case you may have not put any money into boosting your home's curb appeal, or maybe you just did not think that mattered. Well I'm here to tell you that it does! You can keep the cost of curb appeal down by doing the work yourself:
- Simply paint the doors and trim, or you can re-paint the entire house. Paint the trim and accents, this can make a fantastic visual difference and will give your home a great feel - this is fairly inexpensive for the results you will get after painting.
- Add new fixtures. For example, adding a new mailbox, new house numbers, add new door knocker and kick plates.
- Landscape. Plant some lush flowers or trees, make sure you mow and keep your shrubs/plants trimmed.
2) Smart Expansion. Does your home need more space to differentiate it from other homes on the market in your price range? You might want to hire a professional to convert your basement or garage into a rental or mother-in-law suite. More and more families are looking for supplemental income, and having a rental on property might just get more eyes on your home. This would also give you more income while you wait to sell your property.
3) Going Green. Upgrades to your home's efficiency will get more eye's on your property and will show potential buyers that their utility bills will decrease. Tankless hot water heaters are big selling points for buyers - endless hot water! Check with your tax professional, but adding energy efficient items to your home will also earn you major tax advantages!
4) Remodeling. Have you ever said to yourself, "This home would be more spacious if we knocked out this wall to combine these rooms?" If you have, that might just be what potential buyers are thinking when they view your home. Knocking out a wall can be inexpensive and could just be a major selling point.
5) Storage Built-Ins. Do you have unusable nooks in your home? If you do, then you may want to consider some built-in work and storage spaces. You can also build these storage spaces in your office, garage, kitchen or any other room in your home. This gives a nice feel to your home, a finished feel, and every buyer wants (and needs) ample storage.
Ok well those are my tips, hope you find them useful. If you have any questions please contact me (by click on the link).
Rick, Jr.
www.RickStrohm.com
Rick & Rick Strohm, Jr.
February 14, 2012
Happy Valentine's Day! In the spirit of love and relationships my blog today is going to discuss the relationship between buyers and sellers. Most importantly I will be sharing some tips on how "not" to turn your home buyers off. If you follow these tips you will become more successful in the selling of your home:
Top Buyer Turn Off's
1) Don't hang out when buyers are viewing your home. Don't be a stalker! Does that sound harsh?? Well it is, but it is also very true. Here are the reasons:
- Buyers find it more difficult to envision themselves living in the home
- Buyers are uncomfortable opening closet doors, etc.
- Buyers cannot express their thoughts to their real estate agent freely
Sellers: Do not hang around during a real estate showing, go find something to do to occupy your time for a while. Give the buyers some space, do not follow the buyers around the entire time.
2) Messy home. Buyers do not want to walk into a messy or dirty home. They don't want to see dishes in the sink or piles of laundry in the kids room. The home should be spotless!
Sellers: Do not stuff everything in the closet, as the buyers will want to see the closet space. Clean the carpets, dishes, dust and tidy up the entire home for a proper showing.
3) Overpricing. This might be the biggest turn off to a potential buyer. Buyers do not want to start negotiating a final sales price on a home listing that is too high! You will lose a potential buyer by marketing your property at an unrealistic price.
Sellers: Price your home to sell. If you need help - contact me!
Top Seller Turn Off's
1) Lowball offers. Seller's find it completely disrespectful for a buyer to offer an unjustified/extremely low offer(s). No seller is going to give their home away, so buyer please be realistic about the offer to present to the seller(s).
Buyers: Review the offer with your real estate agent, they will advise you if it is a "good" offer or not.
2) Buyer mortgage fails. Buyers should start working with a mortgage broker up to 6 months (or more) prior to looking for a home or property. It is not a guarantee that you will be approved for your home loan. There is nothing worse to a seller than to accept the buyers offer only to find out a month (or longer) down the road that you can't get your home loan.
Buyers: If you're in the market for buying a home, start talking with your mortgage broker as soon as possible!
3) Don't bash. I think it goes without saying, but seller cannot stand when a buyer bashes their home/property in hopes of lowering the asking price. Some examples of this would be stating all the foreclosures in the are or that the home down the street recently sold much lower than what the seller was asking for.
Buyers: Do not bad mouth the sellers property or neighborhood, as this will irritate the sellers.
In closing if you're interested in Great Smoky Mountain NC real estate, contact me today! I hope you found this blog post useful.
www.RickStrohm.com
Rick & Rick Strohm, Jr.
February 3, 2012
We all know that April 15th is tax day, aren't you excited? If you're like most American's then the answer is "no". Keep in mind that if you are expecting a tax refund, which may include homeowners looking for tax related perks on real estate, should file as soon as possible to get their check quicker.
I will state that I am not tax expert and you should seek advice from your tax professional, but here are 9 tax documents that could help you gain every penny of your tax reward for owning a home.
1) IRS Form 1098 (Mortgage Interest Statement) - this is the largest real estate tax deduction, which allows you to deduct 100% of the mortgage interest you paid in a year. This also includes all prepaid interest (points) that you might have paid upon the close of escrow, if you bought a home last year. In fact you should have received Form 1098 in the mail from your financial institution/mortgage lender. If you have not received Form 1098, you should check your lenders online account management services and you can get this form digitally.
2) Property Tax Statements. If you are a homeowner, you have the right to deduct the property taxes you pay to your city, county and state. However, you are "not" allowed to deduct miscellaneous expenses that are sometimes bundled with your local taxes (i.e. waste management, street lighting, etc.). Talk with your professional tax adviser before you make any deductions.
3) Moving Expense Receipts. Yes - moving expenses are tax deductible "only" if the move was closely related to the start of new work or changed your job location (this must meet IRS time/distance tests). Again talk with your tax professional. You qualify for this deduction if your new home is at least 50 miles farther from your new workplace than your old home, and you must be employed full-time.
4) Uniform Settlement Statement (HUD-1). Did you buy or sell a home last year? If so, then you received a HUD-1 Settlement Statement (this form is quite long, and reflects all credits/debits for the buyer and seller - ask your Realtor if you need help finding this form). The HUD-1 may help you out at tax time - prepaid interest, prorated property taxes you paid at closing, origination fees and discount points. Again you need to seek professional advice from your tax professional, but some states offer tax credits for buying a foreclosed property, etc.
5) Income & Expense Statements from Rental Properties. Now is the best time to own rental properties; if your smart you purchased one (or more) this past year. As a landlord, your taxes will be more complicated than that of the average homeowner. As a result, you will need to have all income and expense statements to file your taxes. I know I am sounding repetitive, but you need to consult your tax professional before filing your taxes. This will ensure that you are depreciating appropriately the property over time and will lessen the risk of future audits.
6) Utility Statements for Home Office. There are tax deductions for using your home as a business or home office. Keep in mind that to obtain these deductions your home must be used "regularly and exclusively" as your business. Consult with your tax professional, as you might be able to claim that portion of your home as a home office which in turn will deduct some portion of your home utilities and costs of repairs.
7) IRS Form 1099 - Cancellation of Debt Statement. Did you lose a home to foreclosure, short sale or deed in lieu of foreclosure last year? You might have received some type of Form 1099 from your lender, which charged them with income in the amount of the mortgage debt that has been canceled. Let me break this down for you. You borrow money from someone, they cancel the debt, the original money borrowed now becomes "income" to the IRS (and we all know that "income" is taxable by the IRS). Seek professional advice from your tax pro!
8) Mortgage Credit Certificate (MCC). In the past few years have you purchased a home using a Mortgage Credit Certificate? If so, you could get a rather large tax credit. This tax credit is based on the percentage of mortgage interest you paid (on top of your mortgage interest deduction). Keep in mind that MCCs only apply as long as you live in the home and have a mortgage on that home, and they only apply to defray taxes you actually owe. In other words, you cannot use them to get a refund. Once again (repetitive yet??) consult with your tax professional.
9) Energy Efficient Home Improvements. Have you heard of the Nonbusiness Energy Tax Credit? This tax credit applies to homeowners who made improvements to their homes with energy efficient upgrades. Again you could receive a tax credit for these improvements. In 2011 did you install energy efficient upgrades like insulation, new dual-pane windows, energy efficient heat pump/furnace? You may be eligible for a tax credit of 10% the cost of those upgrades - up to $500. Ask your tax professional if you eligible for this tax credit.
Ok there you have it, just some "tax" tips for you to discuss with your tax professional. Remember - I am not a tax expert (and never claimed to be), but thought this information might get you thinking and just might hand you over a larger tax refund check this year!
Contact me with any questions you may have!
Rick, Jr.
All Paved Access!
• 850 sq. ft., 1 bath, 3 bdrm single story
-
MLS®
$118,000
- DRASTICALLY REDUCED!
Luftee Lake, Bryson City
-
REMARKS: REMARKABLY LOW PRICE! Fantastic 3 bed/1 bath home on 1.323 acres just minutes from downtown Bryson City & Cherokee, NC. Location, Location, Location...is everything with this property! Extremely clean & neat neighborhood, convenient to shopping, dining & outdoor activities. Must see for the price! Home setting is beautiful with fresh water creek in front of property, additional 10x10 storage shed, end of paved road privacy, low maintenance & perfect for a full-time or vacation rental. Home coincides with MLS 44598(additional land 10.638 acres), home/land could be bundled - ask listing agent for more details. Call listing agent for showing instructions.
DIRECTIONS: From Sylva take US-74 towards Bryson City, exit 69 Hyatt Creek, right off exit Hyatt Creek Road, right on US-19 N/Ela Road (towards Cherokee, NC), approx. 1 mile turn right on Luftee Lake Road, approx. 0.5 miles to home on left, see signs.
Property information
Great Development!
• 1,450 sq. ft., 2 bath, 3 bdrm 2 story
-
MLS®
$159,900
- New Construction!
Carolina Vista, Robbinsville
-
REMARKS: New Construction! This is a brand new mountain cabin, maintenance free and ready to move in! This is a fantastic buy in a great development, Carolina Vistas (Stecoah Valley area). Vinyl sided with board & batten design, heavy gauged - not the cheap stuff you get from home stores. New 50 yr metal roof. Solid and built right, priced to move. Cabin will be finished in a couple of week, but did not want you to miss this opportunity! Gas log fireplace, 3 bedrooms, master on main, 2 baths, hardwood downstairs with carpet upstairs, family room walls are planed & restored 200+ year old bard wood - this home has a lot of character! This won't be on the market long, contact listing agent for showings.
DIRECTIONS: Highway 28N to Lower Tuskeegee Road, turn right on Lower Tuskeegee Road to Carolina Vistas on the right, turn in, cross bridge and keep on that road until Hubbell Lane. Turn right onto Hubbell Lane and follow signs.
Property information
Deep Creek Area!
• 1,938 sq. ft., 2 bath, 3 bdrm single story
-
MLS®
$345,900
- PRICE REDUCED!
Deep Creek, Bryson City
-
REMARKS: Beautiful log home in a fantastic development in the Deep Creek area - very secluded & private! All paved access - paved road to development, paved roads in development & paved driveway to home/parking area. Just minutes from downtown Bryson City, shopping, dining, tubing, hiking, biking, whitewater rafting - this is an outdoor enthusiasts dream home & location! Master on main, large master walk-in closet, large master bath with whirlpool tub & slate tiled shower, laundry room, gas fireplace in living/family room, covered front deck with gas fireplace on deck...this home has it all! Motivated Seller who wants qualified Buyers ONLY!
DIRECTIONS: Exit 67 Bryson City, turn RIGHT at Main Street (1st traffic light by Shell Station), turn LEFT at next light - Everett Street, cross railroad tracks & turn RIGHT on Depot Street, at STOP sign turn LEFT & then RIGHT on Deep Creek Rd, 1/2 mile at sharp bend in road turn RIGHT onto East Deep Creek Rd, cross bridge and turn LEFT (East Deep Creek Rd), follow to RIGHT on Galunlati Rd (see signs) - call Rick & Rick for more details.
Property information
www.RickStrohm.com
Rick & Rick Strohm, Jr.
November 7, 2011
Hello all my blog followers! I apologize...well ok, not really...but I was on vacation this past month and that is why there was a lack of blog posts and podcasts. Lucky for you...I'm back!
Today we are going to dive right into a topic that many buyers have expressed to me and that is some last-minute real estate regrets. Home buying is a major commitment, as we all know, and there is a chance you (the buyer) will have some last-minute regrets. Many buyers, and sellers, will get "cold feet" after they have reached an acceptance/deal. This is perfectly normal. The fact that you're nervous over if you made the right decision happens to everyone! Here are some tips on how to avoid these regrets:
- Did I leave money on the table? Every buyer will think that they "could" have negotiated harder and gotten the property for less money. Likewise, every seller will think that they "could" have sold their property for more money. This is the "remorse" that I am referring to. Sometimes with in minutes of an offer being accepted, both parties will second guess the transaction. You can conquer real estate remorse by understanding that thinking about the transaction/acceptance after the deal is done is fantasy land! It does not exist. The transaction made sense at the time you made it and has resulted in a deal. You need to stop beating yourself up about the "done deal" and let it go. Be confident that you bought a home/land at the bottom of the real estate market and that you got a good deal...time to move on.
- Really...a 30-year mortgage commitment? This seems like an extremely long time, and it is. But think if it this way - God willing you will live for longer than 30 years and you need somewhere to live forever (knowing that this may or may not be your last move or purchase). Remember that you can pay off your mortgage in less than 30 years. Unless you have "free" housing, here are your options:
- You can rent a home and pay rent to a landlord
- You can buy a home with cash
- You can mortgage/finance to buy a home
- I went through all my cash! This real estate market is hard...and mortgage lenders are requiring buyers to put more of their own money down to purchase a home/land. Lenders are requiring larger down payments than a decade ago. Keep in mind that most down payments assistance programs that were offered to buyers in previous years are gone (state, local and employee-funded programs). Most buyers will spend a year or more of their savings in order to cover the down payment of their new home purchase. YES, you are going to have to spend more of your savings...but the timing has never been more perfect! Home prices are low and so are interest rates (this will not stay this way forever!!!). The time to BUY is NOW!
Contact me today if you have any questions or if I can assist you with finding a property here in the
Smoky Mountains of North Carolina! Email me at
rickstrohmjr@gmail.com.
www.RickStrohm.com
Rick & Rick Strohm, Jr.
October 6, 2011
Did you know? There are two major factors that show buyers readiness for purchasing a home: motivation and cash on hand. The American Dream Home Survey reveled that there are plenty of renters that one day have a dream of owning their own home. The survey opened my eyes a bit, stating that fewer than 60% of those surveyed intend on purchasing a home. That told me that "motivation" is not their main issue. The issue that is most intimidating to future home buyers is the down payment.
The down payment is the single largest hurdle of home ownership for future buyers. Maybe you are in that same boat. How can you purchase a home when you have too little cash on hand? Here are some tips that might help:
1) Understand Your Financing. Obviously every buyer's circumstance are different - credit history, resources, etc. Find a local Realtor (like myself!) who can point you in the right direction for down-payment assistance. This could be a government program or it could be with a local lender. Just don't be disappointed if you do not qualify for these assistance programs.
2) Be Straightforward. I would love for your next home real estate transaction to be seamless, however; most are not. There are going to be issues that come up and it might get stressful. Be straightforward with your Realtor. Choose an experienced Realtor, this will help with the stress of your transaction.
3) Start Saving. You might find that you do not qualify for a down payment assistant program. If that is the case, start saving! I think we all (and America as a whole) needs to start cutting back. Some good old fashioned savings - $50 here, $100 here - can put you back on the path to start saving for the down payment for your next home.
If you have any questions email me at rickstrohmjr@gmail.com. Be sure to check out our Smoky Mountain NC real estate website!
