Buying a home to keep (edit/delete)
Over the years I have had people come to me and buy homes that I know that can't afford. I have asked them if they were sure they wanted to spend that kind of money.
There are many issues with this problem. If you as a buyer had a Realtor or mortgage person tell you that they think you are over buying... would you listen? As a Realtor many clients don't take our advice. Many people buy with emotion. We see over and over people buy homes we would never buy. And that is the point. We the Realtor are not going to live there you are. It is your choice to make, it's not our choice. We can subtly tell you that we think it is a bad idea. I can't tell you how many times clients have not listened to my advice. Many do listen, but there are many that never hear.
Buyers and sellers have what they want in their head and most times we can't sway them. Shoot... their parents can't tell them, their spouse can't change their mind. Do you think what we say, sways them?
But it is more important than ever to this generation of buyers, 2008 buyers, that they step back and figure out what they can afford to pay a month before they see a mortgage person or a real estate person. Better yet. If their house payment with taxes and insurance is going to be $2000 and they are paying $1000 a month in rent. Then they should try to live 6 -12 months putting the extra $1000 away. And not spending it for anything. That way they can find out if they can live comfortably with a $2000 payment. Plus they would have a nice down-payment or rainy day fund.
If you need more mortgage information or Michigan real estate information go to my website www.russravary.com You can search thousand of Michigan Houses for sale free on my site without giving your name or any personal information.
Showing posts with label planning your home purchase. Show all posts
Showing posts with label planning your home purchase. Show all posts
Wednesday, January 2, 2008
Saturday, April 28, 2007
Being Realistic
I was told by a lady on the phone the other day that she didn't want to hear about the naysayers. She had bought her home in 2003 and paid a reasonable price for it at that time. She now wants to put money into the home, but she is worried about what it is worth. But she doesn't want to hear the bad news.
Well if she refuses to listen to everything that is going on in the real estate market and only wants to hear about the lucky seller that sold their house in 7 days for 97% of the asking price. Then it is her fault for not hearing about the other 40 people in the city that their homes took 140 days to sell at 85% of their original asking price.
It is a tough market. Reports have been released that housing sales were the slowest since 1989 and foreclosures were up 47% in March. It's ugly out there but homes are selling and there are a lot of great bargains for home buyers. If you are just ready to buy, a first time home buyers, or somebody looking to get into a bigger house it is a great time.
The question you ask is should you wait to see if it goes down more? Nobody has that answer. What you want to do is to look for the deal. Buy a home that is priced below the market. You are not going to get hurt that way if you are going to stay in the home 5 years+. That is the time frame you should be looking to stay in the home you are buying.
If you are thinking 2-3 years start thinking 5+ years. n 2-3 years the market is not going to appreciate enough (for Michigan Real estate and Homes) to get your initial investment and selling costs out of.
Be a planner. Be an investor you your future. Your home is one of the biggest investments of your life. Treat as that, don't buy simply on emotion. Think to yourself - is this a good deal? Is this a good home for resale? Is where it is located a good resale feature? Is the high or low taxes a detriment? Am I going to have to spend more in updates than if I bought a more expensive house with all the updates done?
Think before you buy? Too many people are losing their homes because of poor planning. Become one of my clients and plan your next investment.
Enjoy the weekend with family and friends. Take a ride and go visit a relative or friend you haven't seen in a while. Take care and have fun.
Russ Ravary
Well if she refuses to listen to everything that is going on in the real estate market and only wants to hear about the lucky seller that sold their house in 7 days for 97% of the asking price. Then it is her fault for not hearing about the other 40 people in the city that their homes took 140 days to sell at 85% of their original asking price.
It is a tough market. Reports have been released that housing sales were the slowest since 1989 and foreclosures were up 47% in March. It's ugly out there but homes are selling and there are a lot of great bargains for home buyers. If you are just ready to buy, a first time home buyers, or somebody looking to get into a bigger house it is a great time.
The question you ask is should you wait to see if it goes down more? Nobody has that answer. What you want to do is to look for the deal. Buy a home that is priced below the market. You are not going to get hurt that way if you are going to stay in the home 5 years+. That is the time frame you should be looking to stay in the home you are buying.
If you are thinking 2-3 years start thinking 5+ years. n 2-3 years the market is not going to appreciate enough (for Michigan Real estate and Homes) to get your initial investment and selling costs out of.
Be a planner. Be an investor you your future. Your home is one of the biggest investments of your life. Treat as that, don't buy simply on emotion. Think to yourself - is this a good deal? Is this a good home for resale? Is where it is located a good resale feature? Is the high or low taxes a detriment? Am I going to have to spend more in updates than if I bought a more expensive house with all the updates done?
Think before you buy? Too many people are losing their homes because of poor planning. Become one of my clients and plan your next investment.
Enjoy the weekend with family and friends. Take a ride and go visit a relative or friend you haven't seen in a while. Take care and have fun.
Russ Ravary
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