Tag Archives: Buy

Realtors Vs The We Buy Houses Cash Companies

When deciding to sell your home you have two options. You can either use the services of real estate broker or you can sell it yourself to a “We Buy Houses Cash” company. Each scenario has its pros and cons which we have outlined for you below. Every situation is different and we want to make sure you make the best decision possible. We have also outlined some key questions you should ask yourself before making this big decision.

Realtors. Realtors are the best source for selling your property. It’s a proven fact that realtors will get at least 10-20% more for your property than you would if you sold it yourself. It is also a proven fact that you will sell it 50% faster using the services of a local real estate agent. Since most agents are current on up to date trends they will be able to guide you in what items need to be addressed in order to get maximum price for your house. With an agent who specializes in your neighborhood they may have connections to buyers through colleagues and past clients that you do not have access to. An agents network is a very powerful tool to getting your house sold fast. I recommend using bigger cooperate brokers such as Berkshire Hathaway or Coldwell Banker Gundaker.

With any service provider their is a cost of doing business. The average expense for a realtor is 6-7% of the sales price of your home. For example if you sell your home for $200,000 it will cost you anywhere from $12,000-$14,000 at closing. If you decide to use a real estate professional to sell your property then you will more than likely be dealing with financed buyers which means you might possible have to pay seller commissions ranging anywhere from $3,000 – $5,000. Selling to a financed buyer also means once you sign a contract to purchase you will usually have to wait anywhere from 30-60 days to close. Let’s also not forget the cost of inspections. Most cities require the house pass an occupancy inspection. When the city sends there inspector out there may be items that don’t meet city requirement which may get costly to fix. The potential buyer will also hire a private inspector due to there own due diligence to see what the house may need. This can also get costly if the buyer has high demands before deciding to move forward with the purchase. The extra money you make hiring a real estate professional may cancel out with the expense of broker fee’s and inspection expenses.

We Buy Houses Cash Companies. These companies often get a bad wrap in the area. They are often thought of as scam artists or dishonest people when in reality these companies can be of great service to people. Just like anything there are pro’s and cons to taking this route. Since these ugly house buyers are investors they are not going to give you full price for you home. They are usually buying properties anywhere from 50-60 cents on the dollar.

But before you kick these guys out of your house take a moment to think about the benefits of selling to a cash investor. Fast Cash! In most cases these buyers have the cash to buy the property immediately. Not only will it be a cash sale but you don’t have to worry about paying any seller concessions. Often times they will even cover your closing costs which will save you additional money. These cash buyers will also save you on those hefty realtor commissions. Since your property is a for sale by owner there will not be any broker involved. No broker = NO FEE’s! Did I mention there will not be any inspections done. Since it will more than likely be an AS-IS cash sale the buyer will not bring a city or private inspector through which means you don’t have to do any repairs to the property. So even though you may not get full price for what you think your home is worth you will be saving tens of thousands of dollars in fee’s and repairs. It makes the deal even sweeter knowing they can close in as little as 7-10 days if needed. The best part about selling to a cash investor is that you can leave the unwanted items in the property so you can save even more money on moving expenses.

This is a big decision that should not be take lightly. There are some questions you need to ask yourself before deciding which route to take.

1. Does the home need repairs?

2. Is the home outdated to today’s standards and what other similar homes look like?

3. Do I need to sell immediately?

4. Is the repair list too much for me to handle right now?

5. Will a fast sale take the burden off my shoulders of dealing with this property?

If you answered yes to any of the questions above then you will probably want to consider selling to a local real estate investor who has the cash to close right away. A fast cash offer with no realtor fee’s, closing costs or hefty moving expenses may be the best fit for you. If the home has been kept up and maintained pretty good over the years and you can afford to sit on it for a while then your local real estate agent will be the best option for you and your bank account.

Click the following for more information on Berkshire Hathaway or Coldwell Banker Gundaker.

Should I Buy That Two – Family House?

Some people purchase a two – family house, because, they hope to live, in one apartment, and rent the other, in order to significantly reduce their cost of living! While, this is a great solution, for some, it is not for everyone. For some, they need more privacy, and/ or, don’t want the responsibilities involved, in being a landlord. Other individuals purchase two – family houses, for investment purposes, and it’s essential and important, to begin this process, with your eyes – wide – open, understanding, both the advantages and disadvantages. While, a well – considered, properly priced, property, may be a fantastic investment opportunity, there are some others, that may not be, for certain reasons. With that in mind, this article will attempt to consider, examine, review, and discuss, these two scenarios, and the process, one should go through, prior to making the commitment.

1. Owner – occupied: An owner – occupied, two – family house, is eligible, for very similar mortgage conditions, and requirements, as a single – family home. Often, this is about 0.5% or more, lower rate, than when the owner does not live there. What rate of returns, and other relevant concerns, should be considered? Begin, with considering, cash – flow, meaning, the owner’s outflow, versus, the rent, collected, How will this compare, with your costs, if you purchased a single – family home? How comfortable will you be, being a landlord? Are you handy, or will you need, to hire others, whenever there is a necessary repair, etc? Do you have the type of personality, which might handle, some of the inherent stresses and strains, involved? Will you be happy, sharing the property, ensuring your tenant, takes decent care of the part, they occupy, and any potential challenges, in terms of privacy, and other issues?

2. Non – owner occupied: Begin, with a realistic evaluation, and analysis, of the revenues, versus expenditures. Will you generate sufficient cash flow, to avoid having additional financial challenges, and stresses? Unless, you are convinced, there will be a cash flow – positive, situation, you usually should avoid the investment. Consider only about 75% of the realistic rent – roll, in order to account for vacancies, and other unforeseen contingencies. On the expense side, add your mortgage payment (including principal, interest, real estate taxes, and escrow), to your monthly contributions in various reserve finds, for repairs, renovations, upgrades, etc. If this is positive, then move – on, to a rate – of – return, or ROI/ return on investment, analysis. Consider your total cost of purchasing the property (purchase price plus initial renovations/ upgrades/ repairs), and your annual rent – rolls. Seek at least a 6% return.

An investment property may be your smartest move, or a risky, unwise one! Take these easy steps, from the unset, and proceed accordingly.

Should I Buy a Home In 2008?

Dreadful information about the slumping American housing market is all over TV news and in almost every paper. During this housing slump many potential first time home buyers often wonder, should i buy a house in 2008? While every persons situation is different the next few paragraphs will hopefully help you decide whether or not to buy a house in 2008

It is a fact that property values across north America have dropped, in some areas they have dropped drastically and others its just a slight dip. Buying a home when prices are at the lowest is the best way for buyers to get the most for their money, and many people are now taking advantage of the lower home prices.

The major factor for most people when buying a home is securing a affordable mortgage to purchase the home with. In today’s current market mortgage rates have also fallen to very low levels making financing a new home more affordable then one year ago. When low mortgage rates are combined with reduced asking prices your money suddenly is able to buy you much more home then you previously thought possible!

The only real roadblock to buying a home in 2008 is going to be actually qualifying for a mortgage. Even though mortgage rates are low the lenders have tightened up their lending guidelines since the housing slump began. Since many borrowers need 100% financing it makes things that much more difficult. To deal with stricter lending guidelines borrowers are going to need excellent credit or have down payments in the range of five to twenty percent to secure home financing.

With property values falling and mortgage rates at very low levels 2008 is a great time to buy a new home. Not only is there more selection on the market but you will also be buying when prices are low so when the next real estate boom starts you will make substantial money on your investment.

Why Do You Want To Buy A House?

There is no such thing, as a one – size – fits – all reason, or set of reasons, individuals decide, and/ or desire, to buy, a home, of their own. Some do it, because of family needs, others may want to own pets, etc, and others, decide it makes more financial sense to own (than continue renting), and/ or want to live, somewhere, where they might put, their personal seal, on the accommodations, or seek a specific lot of land, etc. These are just, a few of the reasons, but to ensure, one purchases, when it serves their best – interests, and does so, intelligently, and in a focused manner, prospective homeowners should clearly know their personal reasons, thoroughly, and in a somewhat, objective way.

1. Can you afford owning?: Owning a house of your own, requires accepting a far greater degree of personal and financial responsibility, than renting. Renters don’t have to worry about most maintenance items, especially major expenses, etc, but that, all, changes, when one owns. Start by thoroughly considering your present finances, including savings, earnings, debt, and preparedness. Will you qualify for an affordable mortgage? Have you saved, and accumulated significant reserves, in order to be prepared, and ready, for any foreseeable possibility? Wise homeowners put together reserves for repairs, renovations, upgrades, and maintenance, etc, in addition to possessing a mortgage reserve, of approximately 6 – 9 months, equivalence. Since, for most, the value of your house, represents your single – biggest, financial asset, doesn’t it make sense, to proceed wisely, and in a focused way?

2. Area/ neighborhood: When you rent, your lease is for a finite period, so it is rather easy, and straight – forward, to relocate to another locale, if you discover you, either don’t like the particular area, neighborhood, region, or house, or if your life circumstances, change, such as employment, etc. Obviously, since selling a house, is a little more complicated, timely, and less predictable, this should be one consideration, before proceeding.

3. Really want to own a pet or pets: Only a minority of rentals, permit individuals to own pets, and, even, then, must be clearly specified, and is often limited. For true pet lovers, who simply don’t want to be without a beloved pet, it might be one reason to purchase a house.

4. How much land do you want/ need? Some love having a larger lot, either for flowers, gardens, etc. Others want to have place for patios, pools, or convenient places for their pets, to roam. However, others do not want that type of responsibility, and/ or can’t afford to maintain these (Isn’t that one reason, some prefer condominiums?). While some want large lots, others seek somewhat less. Know thy self!

5. Mortgages: Most home buyers purchase houses, with the aid, of a mortgage loan. One consideration is how much you qualify for, and perhaps, equally important, is how much you will feel comfortable paying. Remember, your payment includes principal, interest, real estate taxes (and other escrow items including insurance, etc). Don’t become, house – rich, and life – poor!

Before buying your home, fully consider your needs, desires, wants, and means, and proceed, wisely, and in a way, where ownership will be a pleasure, rather than a stress! Will you proceed wisely, or impulsively?

Is There A Perfect Time, To Buy, A House?

As someone, who has been a Real Estate Licensed Salesperson, in the State of New York, for over a decade, as well as having, also, had a considerable degree of experience, in financial sales and advising, as a financial planner, and Registered Representative, Supervisor, Manager, and executive, I have often, been asked, when/ if, there is a perfect time, to buy. Whether this is related to buying stocks, bonds, or other investments, or buying a home, the attempt to market – time, has rarely worked, consistently. While, with other investment, a disciplined approach, works best, in most cases, in buying a house, the best approach, is probably, proceeding, in a well – considered, introspective, objective manner, and honestly knowing and understanding your personal needs, goals, priorities, comfort zone, and personal finances. With that in mind, this article will attempt to review, consider, and briefly discuss, how, although, there is no perfect time, it is wise to consider, when it’s best, for you.

1. Personal needs, goals, priorities: Why do you want to buy a house? What about a particular house, attracts you? How many bedrooms do you need, and how many would you prefer, and why? How about bathrooms? What do you seek in your kitchen, and why, and what do you actually, need? Are you able to look past the staging, etc, to determine the difference between quality, and perceptions?

2. Comfort zone: Sit back, and look, objectively, and introspectively, so you know, why you want a house, what you can afford, and what amount of monthly payment, might conform with your personal comfort zone. You don’t want to end up, house – rich, and unable to proceed, with less stress, etc! A wise home buyer, finds a house, which exceeds his needs, meets some of his wants/ dreams, and does so, without excess stress, tension, and/ or, hassle!

3. Personal finances: Do you know, what you can afford? Many factors should be considered, including, down – payment, reserve for items such as contingencies, repairs, renovations, utilities, etc. Simply because you have the down – payment, and qualify for a mortgage, doesn’t necessarily mean, you will be well – served, by the financial necessities of home ownership! Know yourself!

4. When matters!: Certain factors are extremely important. What are the present mortgage interest rates, and how large, a mortgage will you need? Understand, small changes in these rates, matter! What about supply, and demand? Don’t purchase something, you aren’t satisfied with, either to Keep up with the Joneses, or to take advantage of the present market, because if you do, you might be disappointed, in the long – run!

Be a smart home buyer. It’s not about trying to buy at the perfect time, but finding what you need, not over – paying, discovering something, you’re pleased with, and being able to afford it!

A 5 – Step Plan To Prepare To Buy A House

Although, owning a home of one’s own, is often considered, a major component of the so – called, American Dream, wouldn’t it make sense, to effectively, plan, to ensure this doesn’t become a nightmare, instead? After, over fifteen years, as a Real Estate Licensed Salesperson, in the State of New York, I have created, what I, often, refer to, as the RICH IDEAS, for proceeding, wisely, in terms of buying a house. With that in mind, this article will attempt to, briefly, consider, examine, review, and discuss, a 5 – step plan, for properly, effectively, wisely, being prepared for this process, and proceeding accordingly.

1. Put together/ accumulate sufficient funds, for a variety of requirements and necessities: It’s smart to proceed, as well – prepared, as possible, from the beginning. Well – before, you start searching for a house, begin saving money, in a systematic way. Remember, you will not only need funds, for the down – payment (often, but not always, 20%), but, also, funds for other Closing Costs, including, but not limited to, pre – paid real estate taxes, utilities, and other, so – called, escrow items. In addition, most lending institutions require a demonstration, and proof of funds, equal to several months, of mortgage payments.

2. Obtain a copy of your Credit Report (if husband and wife, get both): You are entitled, once per year, to request a free copy of your Credit Report, from one of the major credit organizations/ companies. Review this document carefully, and correct any errors. If your rating is not, as high, as a lending institution may seek, begin to take steps, to enhance and improve it, sooner, rather than later!

3. Pay – down other debt: Lending institutions use formulas, to determine one’s qualification, to receive funds. These are generally, focused on, one’s percentage of debt to income. Therefore, pay – down your other debt, prior to beginning the process!

4. Don’t add any other debt: Avoid acquiring any more debt, regardless of how convenient, and/ or, appealing, it may seem, at the moment. Don’t fall into the trap, of, accepting new store charge accounts, because doing so, may compromise your credit worthiness, when you seek a mortgage!

5. Shop for homes, within your means: Avoid the trap, of becoming, house – rich, and seeking to purchase a home, beyond your comfortable means! Know, how much, you can afford, comfortably, and securely, so you choose, wisely, and remain, comforted!

Since, for most of us, the value of our house, is our single – biggest, asset, doesn’t it make sense, to proceed, carefully, and wisely? Will you be up to this task?

Why Will You BUY A Home?

Although, we consider, owning a home, of one’s own, to be a major component of the so – called, American Dream, few consider, why it is, and whether, it is relevant, to their personal dreams, needs, and best – interests! Before anyone should begin the process, the first thing, to do, should be, to realistically, consider, their personal reasons, and why, they want to BUY a house. This should be a realistic, thorough, process, which includes, many relevant factors, including, but not limited to, their personal needs, goals, priorities, and perceptions, financial capabilities, family issues, employment factors, transportation considerations, safety, schools, and how, one house, might benefit them, to a greater degree than others. With that in mind, this article will attempt to briefly, consider, review, and discuss, using the mnemonic approach, what this means and represents, and why it matters.

1. Best; better; benefits; beliefs; bringing: Where we live, often, depends, on what, it seems to be, bringing, to us! Our personal beliefs, are a significant factor, and, thus, we must consider, if living somewhere, might make our existence, better, and happier/ more satisfying! Isn’t the goal, of most of us, to do, whatever, we can, to become, the best, we can possibly become? The essential combination of thoroughly considering our true needs, and the best way, to address them, must be one of the keys, to whether, we should buy, a home, of our own! Never forget to realistically, consider, factors, such as affordability, self – image, schools. safety, and whatever, your personal priorities and perceptions, might be!

2. Useful; unique; uses; urge; usual/ unusual: Buying a home, must serve, both, your usual, as well as unusual, needs, goals, and priorities! What urges, might, doing so, address, and meet? When considering, one potential house, versus another, what unique characteristics, and/ or attributes, are most important to you, and why? How will you use/ utilize your home, and why will doing so, be helpful, meaningful, and useful?

3. You; your: How will a home, of your dreams, meet, and/ or, exceed, your personal needs, and expectations? How will you make, your residence, your own? Why will doing so, benefit you, in a realistic, viable, relevant manner? Before making any decision, it’s important to seriously consider, how. your dream house, might make your life, more self – satisfying, and happier?

Before making the decision, and commitment, to BUY, a home, of your own, will you consider, your personal reasons, and why, you believe, it’s a good decision, for you! Are you up to the task, of doing so?

How to Buy a House With Cash

Owning a home is something almost everybody wants do at some point in their life. Nothing can compare to knowing that the home you live in is yours, and you can do what you want with it. No paying rent, no answering to a landlord, none of that…

While it is pretty great to own a home, many people take a hasty decision by taking out a massive mortgage on their home rather than pay for it up front. This is understandable because not many of us have $100,000 laying around that we can buy a house with.

But, for those who choose to save up the money and buy their home with cash, the rewards are plentiful. Not only is it cheaper, but it will save you from being chained to the bank on a lengthy mortgage plan that you might end up wanting to opt out of before its even paid off.

Let’s take a look at how you can avoid a mortgage and buy your next home upfront, with cold hard cash.

Frugality is the Name of the Game

While it’s very likely that everybody would buy their home with cash if they could, hardly anybody does. This is because most people just lack the discipline to save up.

Now, if you make 20-30 thousand dollars a year, you’re going to be waiting a long time to buy your own house, even living on the bare minimum.

But, if you are someone who makes 50 thousand or more per year, or you also have a spouse who makes just as much as you, it is very possible for you to buy your own home with cash, in a couple years.

If you can manage to save just a couple thousand a month for a period of 5 or more years, you’ll be right in range to buy a nice house all by yourself.

Benefits to Buying With Cash

The benefits to buying your home with cash are usually not afforded to those with a hefty mortgage to worry about. For instance, without a mortgage payment, you can plug more money into your retirement plan, thus bringing about your retirement earlier, or having more money to blow when it is time to call it quits.

You can also invest your extra cash into some kind of money making scheme, like the stock market, startup companies, or bonds. As long as you know what you’re doing, this can turn out to be a very useful stockpile of money should you need to pay for an emergency, send your kids to college, or provide for your family in case something happens to you.

Wrapping Up

Buying a house with cash is undoubtedly the smartest way to buy a home, it just takes a certain amount of discipline when it comes to saving the money.

Don’t waste your time and resources doing it alone or working with an amateur agent, contact a reliable real estate agent today and put yourself in good hands.

55 Years Old – Don’t Buy A House

If you have owned a house and paid off the mortgage over the years you know the first 10 years is almost all interest payments with very little equity.

There is nothing wrong with buying a house as long as you can qualify. That means a good down payment and a steady job. None of that no-down-payment nonsense. The buyer must be serious about making those monthly mortgage payments and have a good job. Banks are checking these days.

The financial community in the recent past has been required to make mortgages for those who did not qualify with no down payments and had no serious intention of paying if it became economically uncomfortable. It is too easy to walk away.

The true cost of home ownership is not just the monthly mortgage payment. In a new house all the appliances, plumbing, roof, pool equipment, window frames, etc., etc., everything has an estimated life expectancy after which they need to be replaced.

Buying an older home means all of the above will occur sooner. Replace or repair can be expensive.

The true cost of keeping the house is the mortgage payment plus upkeep. Oh and let’s not forget taxes. Then there is a little thing called insurance that is required by the mortgage holder.

The industry calls it PITI = principle, interest, taxes and insurance. Depending upon the length of time of the mortgage and whatever your down payment was it normally comes out 10% annually of the selling price divided by 12 or 1% of the selling price each month.

If the house cost $200,000 that figures about or close to $2,000 per month.

If you are 55 years old do you want to take on that obligation? Wouldn’t it be smarter to rent? If the same quality home can be rented for $1,200 per month the renter could save the difference of $800 each month and in 10 years at retirement have $96,000 plus interest. I can guarantee he would not have that in home equity if he bought the house when he was 55.

Furthermore renters pay much less for rental insurance and have the ability to move to a new location any time. Renters do not have to put on a new roof or replace an old hot water heater. No major upkeep out of pocket expense.

How about a 6 month rental in Canada for the Summer and 6 months in Florida, Mexico or Dominican Republic for the Winter? The only extra would be travel expenses.

With so many rentals available the foreclosure prices are not yet a great buy. If a person wishes to buy there are yet about 4,000,000 more distressed properties to hit the market in the next 2 years. Prices will be even lower than today.

Do the numbers before you buy.