Whether you’re a first-time homebuyer or a current owner looking for a bigger home, the ideas below will help you better navigate that all-important first step: Finding a property that you like (and can afford).
The search for a new home always starts out with a lot of excitement. But if you haven’t prepared, frustration can soon set in, especially in a competitive real estate market. The biggest mistake is jumping into a search unfocused, just hoping to “see what’s available.” Instead, we recommend you first take some time to work through the four steps below.
Step 1: Talk to your agent
Even if you’re just thinking about buying or selling a house, start by consulting your real estate agent. An agent can give you an up-to-the-minute summary of the current real estate market, as well as mortgage industry trends. They can also put you in touch with all the best resources and educate you about next steps, plus much more. If you are interested in finding an experienced agent in your in your area, we can connect you
Step 2: Decide how much home you can afford
It may sound like a drag to start your home search with a boring financial review, but when all is said and done, you’ll be glad you did. With so few homes on the market now in many areas, and so many people competing to buy what is available, it’s far more efficient to focus your search on only the properties you can afford. A meeting or two with a reputable mortgage agent should tell you everything you need to know.
Step 3: Envision your future
Typically, it takes at least five years for a home purchase to start paying off financially, which means, the better your new home suits you, the longer you’ll most likely remain living there.
Will you be having children in the next five or six years? Where do you see your career heading? Are you interested in working from home, or making extra money by renting a portion of your home to others? Do you anticipate a relative coming to live with you? Share this information with your real estate agent, who can then help you evaluate school districts, work commutes, rental opportunities, and more as you search for homes together.
Step 4: Document your ideal home
When it comes to this step, be realistic. It’s easy to get carried away dreaming about all the home features you want. Try listing everything on a piece of paper, then choose the five “must-haves,” and the five “really-wants.”
For more tips, as well as advice geared specifically to your situation, connect with an experienced Windermere Real Estate agent by clicking here.
There are a number of things that can trigger the decision to remodel or move to a new home. Perhaps you have outgrown your current space, you might be tired of struggling with ancient plumbing or wiring systems, or maybe your home just feels out of date. The question is: Should you stay or should you go? Choosing whether to remodel or move involves looking at a number of factors. Here are some things to consider when making your decision.
Five reasons to move:
1. Your current location just isn’t working.
Unruly neighbors, a miserable commute, or a less-than-desirable school district—these are factors you cannot change. If your current location is detracting from your overall quality of life, it’s time to consider moving. If you’re just ready for a change, that’s a good reason, too. Some people are simply tired of their old homes and want to move on.
2. Your home is already one of the nicest in the neighborhood.
Regardless of the improvements you might make, location largely limits the amount of money you can get for your home when you sell. A general rule of thumb for remodeling is to make sure that you don’t over-improve your home for the neighborhood. If your property is already the most valuable house on the block, additional upgrades usually won’t pay off in return on investment at selling time.
3. There is a good chance you will move soon anyway.
If your likelihood of moving in the next two years is high, remodeling probably isn’t your best choice. There’s no reason to go through the hassle and expense of remodeling and not be able to enjoy it. It may be better to move now to get the house you want.
4. You need to make too many improvements to meet your needs.
This is particularly an issue with growing families. What was cozy for a young couple may be totally inadequate when you add small children. Increasing the space to make your home workable may cost more than moving to another house. In addition, lot size, building codes, and neighborhood covenants may restrict what you can do. Once you’ve outlined the remodeling upgrades that you’d like, a real estate agent can help you determine what kind of home you could buy for the same investment.
5. You don’t like remodeling.
Remodeling is disruptive. It may be the inconvenience of loosing the use of a bathroom for a week, or it can mean moving out altogether for a couple of months. Remodeling also requires making a lot of decisions. You have to be able to visualize new walls and floor plans, decide how large you want windows to be, and where to situate doors. Then there is choosing from hundreds of flooring, countertop, and fixture options. Some people love this. If you’re not one of them, it is probably easier to buy a house that has the features you want already in place.
Five reasons to remodel:
1. You love your neighborhood.
You can walk to the park, you have lots of close friends nearby, and the guy at the espresso stand knows you by name. There are features of a neighborhood, whether it’s tree-lined streets or annual community celebrations, that you just can’t re-create somewhere else. If you love where you live, that’s a good reason to stay.
2. You like your current home’s floor plan.
The general layout of your home either works for you or it doesn’t. If you enjoy the configuration and overall feeling of your current home, there’s a good chance it can be turned into a dream home. The combination of special features you really value, such as morning sun or a special view, may be hard to replicate in a new home.
3. You’ve got a great yard.
Yards in older neighborhoods often have features you cannot find in newer developments, including large lots, mature trees, and established landscaping. Even if you find a new home with a large lot, it takes considerable time and expense to create a fully landscaped yard.
4. You can get exactly the home you want.
Remodeling allows you to create a home tailored exactly to your lifestyle. You have control over the look and feel of everything, from the color of the walls to the finish on the cabinets. Consider also that most people who buy a new home spend up to 30 percent of the value of their new house fixing it up the way they want.
5. It may make better financial sense.
In some cases, remodeling might be cheaper than selling. A contractor can give you an estimate of what it would cost to make the improvements you’re considering. A real estate agent can give you prices of comparable homes with those same features. But remember that while remodeling projects add to the value of your home, most don’t fully recover their costs when you sell.
Remodel or move checklist:
Here are some questions to ask when deciding whether to move or remodel.
1. How much money can you afford to spend?
2. How long do you plan to live in your current home?
3. How do you feel about your current location?
4. Do you like the general floor plan of your current house?
5. Will the remodeling you’re considering offer a good return on investment?
6. Can you get more house for the money in another location that you like?
7. Are you willing to live in your house during a remodeling project?
8. If not, do you have the resources to live elsewhere while you’re remodeling?
Moving is stressful, whether it is across town or cross-country. Once you have closed on your house, the reality of packing, moving, and setting up a new home can become overwhelming. While no list can make a move “stress-free”, planning ahead and staying organized can help make your move a little smoother. Here is our list of tips:
· Once you know your prospective move date set up a quick timeline to make sure you can get all the important tasks done and ready in time for your move.
· Consider how much stuff you have by doing a home inventory. This can help you decide whether you need to hire movers to help you or if you will be managing your move on your own. Many moving companies supply inventory lists to help you assess the size of truck you will need. You can use your list as double duty for insurance purposes later.
· As soon as you decide how you will be moving, make your reservations. In general, moving companies and truck rental services are over-booked at the beginning and very end of the month. If you are planning on hiring a moving company, contact a few in your area for a price quote. To find companies ask your real estate agent, family, or friends, and consult online reviews. It is also a good idea to request a quote and compare companies.
Preparing for your move:
· Moving is a great opportunity to get rid of clutter, junk, or outdated items. Set aside some time to sort through your closets, storage spaces, files, drawers, and more. Go through cluttered areas and organize items by “keepers”, “give-aways” and “garbage”. You will have less to pack and an opportunity to update after you move. Contact a local nonprofit organization for your donations; some will arrange to pick up larger donations like furniture. If you have items of value, eBay or craigslist are good options.
· Changing your address is one of the more tedious tasks in the moving process. You will need to change your address with the United States Post Office. You can find the online form here: https://moversguide.usps.com/icoa/icoa-main-flow.do?execution=e1s1.
· You will also need to change your address with each account you have. Here is a list to get your started:
· Utilities (Electric, Water/Sewage, Oil/Gas)
· Cable/ Telephone
· Cell phone service
· Credit Cards
· Magazine subscriptions
· Insurance companies (auto, home/renters, health, dental, vision, etc.)
· Other personal services
Let the packing begin:
· Before you start packing, it may help to visualize where everything you have will go. Perhaps furniture will fit better in a different room? Consider the floor plan of your new home and figure out what will go where. This will aid in packing and labeling as you box everything up.
· Use a tool like floorplanner.com to plan where furniture and items will go.
· When it comes to packing you have some options. You can work with a service that provides reusable boxes for moving or you can reuse or purchase cardboard boxes. Make sure you have enough boxes, packing tape, dark markers, and packing paper.
· Pack rooms according to your floor plan. Label boxes with contents and room. This will make it easier to unpack your home, knowing where everything is going.
· Real Simple magazine has some great tips on packing for your move.
· If you have to disassemble any of your furniture, make sure you keep all the parts and directions together.
· Make sure you set aside your necessities for the day you move. Being tired and unable to take a shower or make your bed can be hard at the end of a long moving day. Here are some ideas of what you may like to pack in your “day-of-move” boxes.
· Clean linens for the beds, pillows and blankets
· Clean towels
· Shower curtain, liner and hooks
· Toiletries, hand soap, tooth brush, etc.
· Disposable utensils, cups, napkins, etc
· Rolls of toilet paper
· Snacks and water
· Change of clothes
· Tools for reassembling furniture, installing hardware, and hanging photos
Making your move
· Come up with a game plan with your family, so everyone has a role and a part to play
· Once the house is empty, do a once over on your old place to make sure it is clean for the next owners/occupants. Here is a useful checklist for cleaning.
Warming your new home
· Once you have settled into your new home, warm it up by inviting friends and family over to celebrate. Here is a great infographic about housewarming traditions and symbolism.
· Announce your move to far-away friends and family through moving announcements to make sure you stay on the holiday card mailing list.
Do you have any other tips or advice for achieving a smooth move?
Short sales are complicated. With all the variables that need to be juggled, it’s easy to make mistakes that end up derailing a transaction. Here are the most common reasons that short sales fail.
1) Failure to understand and justify market value.
Setting a price for a short sale is the delicate art of balancing what a buyer will pay and what the lender will approve. It’s important to understand how the lender values a property. The bank will commonly hire an appraiser or BPO broker to set a value after you submit an offer. If you have set the price too low, the lender will not approve the offer. Everyone loses. The buyer has been given an unrealistic expectation of what they should pay, so usually is not willing or able to offer much more. More importantly, your client’s clock is ticking. They have a certain deadline to do a short sale and avoid foreclosure, and you have squandered valuable time on a deal that was never going to go through. (If you think the value the bank set is unreasonable, this Ask the Expert article explains how to dispute lender valuations.)
2) Not knowing the specific lender’s short sale process.
On average, the bank’s short sale negotiator has over 1,000 short sale transactions that they are processing at any given time. And each lender’s process is different. If you don’t follow the lender’s specific process or there is an error in the paperwork or you’re missing a form, it all comes to a halt. Your file gets set aside until the issues can be resolved. And unless you call, it can be weeks before you are even aware that there is a problem. (We have a dedicated staff that follows up with lenders daily to make sure the process is moving forward.)The short sale transaction that closes, and closes quickly, is the one where everything is done right the first time.
3) No system to monitor the short sale process.
Because a short sale has so many more variables than a traditional real estate transaction, one of the most important jobs the listing broker has is making sure everyone involved has all the information they need to make their part of the deal happen. We have a private password-protected online system that lets all parties see what’s happening with a transaction at any time – 24 hours a day, 7 days a week. This helps everyone involved track deadlines and ensure that no details fall through the cracks. It’s also important for you to build a team of professionals who are highly experienced in short sales. For example, we work with title and escrow agents who understand the additional documentation and complex issues that are specifically related to short sales.
Richard is a Windermere broker in Bellevue, WA and co-founder of Washington Property Solutions, a short sales negotiating company. Since 2003 he has helped more than 700 homeowners sell their homes. A Bellevue native and a University of Washington grad, Richard is an avid sports fan and a devoted Little League and basketball coach. You can learn more about Richard here or at www.washortsales.com.
By Michael Doyle
Have you ever wondered if your real estate agent understands what you are going through? They come into your house speaking confidently about your neighborhood and market trends. They have vendors ready to help you prepare your home for sale. But do they really think it’s that easy? Do they understand the conversations that follow once they’ve left your dining room table? Have they lain awake at night in worry?
You might be surprised.
I’ve been a real estate agent for eight years and recently attempted to sell my condo. My income hadn’t been what I’d planned; I was upside down and worried about the risks of holding onto it. I wanted less stress, so after months of consideration, I decided to sell.
Here’s how it went down:
-I chose my agent and sat down for a meeting. “Are you willing to meet the market?” she asked? That wasn’t easy to answer! The choices I’d made at purchase (lay out, upgrades, etc.) weren’t as valuable in her eyes as I had anticipated. I tried to fight the urge to feel that my home was worth more than she did.
-We moved out of the condo and hired a great stager to “edit” what we’d left behind. What?! You don’t like the black and white poster of John Lennon from my mother’s Let It Be album?!
-We had handiwork done and a professional photographer shot some great images. My agent listed the property, but after only one day on the market without an offer, I was already anxious.
-Then the Homeowners Association sued the developer (long story, but in short: not good for sales) and convinced me that I was definitely not prepared to meet the market. So, we removed the home from the market, and moved back in.
-Then, the phone rang. Agents wanted to show it, earnestly offering “My clients aren’t concerned with litigation.” Surprise: I didn’t believe it. Right or wrong, I suspected that these well-meaning people would not make it all the way to closing. I wasn’t ready to board that roller coaster.
And, it felt like the market was finally turning.
A property that had once seemed like a heavy weight began again to look like home; like a place that – from a post-tax perspective – is only marginally more costly than renting. So, here I am, happy with my decision to stay in my home and reminded what it’s like to walk in my sellers’ shoes – a win-win situation all the way around.
Michael Doyle is an agent with Windermere Real Estate’s Lakeview office in Seattle, WA.
Photo Credit: Rawpixel via Unsplash
Few topics cause more division among economists than the age-old debate of whether you’re better off paying off your mortgage earlier, or investing that money instead. And there’s a good reason why that debate continues; both sides make compelling arguments.
For many people, their mortgage is the largest expense they will ever incur in their lives. So if given the chance, it only makes logical sense you would want to pay it off as quickly as possible. On the other hand, a mortgage is also the cheapest money you will ever borrow, and it’s generally considered good debt. Any extra money you obtain could be definitely be put to good use elsewhere.
The reality is, however, a little less cut and clear. For some homeowners, paying off their mortgage earlier is the right answer. While for others, it would be far more advantageous to invest their money.
Advantages of paying off your mortgage earlier
- You’ll pay less interest: Each time you make a mortgage payment, a portion is dedicated towards interest, and another towards principal (we’ll ignore other costs for now). Interest is calculated monthly by taking your remaining balance, the length of your amortization period, and the interest rate agreed upon with your lending institution.
If you have a $300,000 mortgage, at a 4% fixed rate over 30 years, your monthly payment would be around $1,432.25. By the time you finish paying off your mortgage, you would have paid a total of $515,609, of which $215,609 were interest.
If you wanted to lower the total amount you pay on interest, you don’t need to make a large lump sum to make a difference. If you were to increase your monthly mortgage payment to $1,632.25 (a $200 a month increase), you would be saving $50,298 in interest, and you’ll pay off your mortgage 6 years and 3 months earlier.
Though this is an oversimplified example, it shows how even a small increase in monthly payments makes a big difference in the long run.
- Every additional dollar towards your principal has a guaranteed return on investment: Every additional payment you make towards your mortgage has a direct effect in lowering the amount you pay in interest. In fact, each additional payment is, in fact, an investment. And unlike stocks, bonds, and other investment vehicles, you are guaranteed to have a return on your investment.
- Enforced discipline: It takes real commitment to invest your money wisely each month instead of spending it elsewhere.
Your monthly mortgage payments are a form of enforced discipline since you know you can’t afford to miss them. It’s far easier to set a higher monthly payment towards your mortgage and stick to it than making regular investments on your own.
Besides, once your home is completely paid off, you can dedicate a larger portion of your income towards investments, your children or grandchildren’s education, or simply cut down on your working hours.
Advantages of investing your money
- A greater return on your investment: The biggest reason why you should invest your money instead comes down to a simple, green truth: there’s more money to be made in investments.
Suppose that instead of dedicating an additional $200 towards your monthly mortgage payment, you decide to invest it in a conservative index fund which tracks S&P 500’s index. You start your investment today with $200 and add an additional $200 each month for the next 30 years. By the end of the term, if the index fund had a modest yield of 5% per year, you will have earned $91,739 in interest, and the total value of your investment would be $163,939.
If you think that 5% per year is a little too optimistic, all we have to do is see the S&P 500 performance between December 2002 and December 2012, which averaged an annual yield of 7.10%.
- A greater level of diversification: Real estate has historically been one of the safest vehicles of investment available, but it’s still subject to market forces and changes in government policies. The forces that affect the stock and bonds markets are not always the same that affect real estate, because the former are subject to their issuer’s economic performance, while property values could change due to local events.
By putting your extra money towards investments, you are diversifying your investment portfolio and spreading out your risk. If you are relying exclusively on the value of your home, you are in essence putting all your eggs in one basket.
- Greater liquidity: Homes are a great investment, but it takes time to sell a home even in the best of circumstances. So if you need emergency funds now, it’s a lot easier to sell stocks and bonds than a home.
Misael Lizarraga is a real estate writer with a passion for teaching real estate concepts to first time buyers and investors. He runs realestatecontentguy.com and is a contributing writer for several leading real estate blogs in North America.
Posted by Windermere Guest Author
If you are a homeowner, you probably know all-too-well how costly home repairs can be. And, thanks to Murphy’s Law, appliance break-downs seem to happen at the worst possible time—like when you are selling your home. For this reason, it is in the best interest of all home sellers to consider purchasing a home warranty.
A home warranty offers many advantages to the home seller, the least of which is a peace of mind that your major home appliances are covered in the event of a break down. Most home warranties cover both parts and labor of your home’s most vital systems and major appliances. This protects the home seller from potentially large, unexpected repair bills and also allows the buyer to purchase the home with more confidence. Additionally, a home warranty is usually for the term of at least one year, so any unforeseen repairs/replacements are also covered well after the home has been sold. A home warranty also provides a competitive edge over those homes without warranties because it communicates confidence to buyers. This can add up to a faster selling period, resulting in a more convenient process for all involved.
A home is probably the single largest investment you’ll ever make, so the last thing you want as a home seller or buyer, are unexpected home repairs/replacements. Major appliance replacement can cost you several thousand dollars, and during the process of a home sale/purchase, your budget doesn’t often allow for costly expenses. A home warranty is designed to protect you from these types of expenditures. Furthermore, it is convenient for home sellers because a home warranty offers after-sale liability. While an inspection may find many faults that are covered by a home warranty, it cannot account for latent problems that are beyond an inspection’s scope, or problems that occur down the road. In most cases, a home warranty will cover these expenses, alleviating potential financial burdens for the seller once they have sold the home.
When considering a home warranty, it’s important to ask the right questions. Warranties vary from one company to the next and there are also many different types of coverage available. Your Realtor should be able to help you with this process. First and foremost, you should identify which components of the home will be covered by the warranty. It’s also important to attain annual costs and the charge for service calls. You will want to ask what the total dollar limit is on the warranty and what the limits are for the individual items that are covered. Many home sellers purchase home warranties, which are then passed along to the homebuyer when they move into the home. As a homebuyer, you may want to look into whether or not the coverage can be renewed once the warranty has expired.
According to American Home Shield, one of the largest home warranty companies in the nation, the average home warranty customer uses their warranty plan 2.3 times. Furthermore, the number of home warranties is increasing with every year because homeowners are becoming more informed of their benefits. Eventually home warranties will become commonplace, as buyers and sellers realize the advantages they offer. Ultimately, what it comes down to is that a home warranty is a very simple, cost-effective way to purchase a peace of mind for both homebuyers and sellers alike.
On any given weekend in my house, at least a couple of hours will be spent watching the designers, craftspeople and entertainers on HGTV or its spunky sister station, the DIY Network. The premise of these home-centered television networks is that somewhere, sandwiched between long commercial breaks for paint, faucets, flooring warehouses and something called “Slab Jacking”, you’ll find programming about real people making real decisions about their homes. Sometimes those decisions are about buying a home, while other times they may be about selling or remodeling a home. In all of the situations, experts are brought in to help and a camera crew just happens to tag along, so the rest of us can enjoy the unfolding drama from the comfort of our couches.
Home improvement programming has been around for a long time and is generally considered reality TV, but a lot of the real life is lost between cuts. Here’s a quick guide of some of the more popular programs.
House Hunters – The formula is simple but always entertaining. Each episode begins with someone unhappy with their living situation, so they call an agent and look at 3 properties. After weighing the options, a home is chosen. Of course, this show is over-simplified and leaves out the long weekends the buyer spends in their agent’s car driving from listing to listing. What you do get is a sense of home values and styles in different regions, the humor of buyers’ reactions to homes, and the excitement new home owners feel as they take the keys to their dream home. You rarely get the type of tension home shopping can bring. The big climax of the show is when an offer is made: the narrator might say something like, “Though their offer was rejected the first time around, the other buyer ultimately backed out and they ended up getting the house for X amount.” But I don’t think they usually talk about it at all. For that kind of tension, you need to check out Property Virgins. The best part of the half hour happens in the last 30 seconds when you see how the new owner redecorates the home in their own style.
Property Virgins– Similar premise to House Hunters, except these first-time homebuyers walk through the basics. The best part about the show is the excitement (and sometimes clumsiness) of the virgin house-hunters. The worst part of this show is when would be homebuyers have unrealistic expectations for their first home.
House Hunters International – Comparable to House Hunters but everyone has accents and the kitchens are shockingly small.
Designed to Sell – Did you know that your spare bedroom filled with Grandpa’s taxidermy and the vintage 1950’s kitchen can be a turn-off to potential buyers? Valuable lessons like these are a just a few of the gems I’ve picked up on Designed to Sell. Each episode features a home which has been racking up days on the market but no one is interested in buying. That’s where the army of carpenters and designers step in. When they’re done, the house that looked like Grandma’s musty basement now looks like the lobby of a hip hotel, and they only spent a few hundred dollars. I love this program for the inspiration but find it short on reality. The listed prices of these improvements don’t seem realistic, and I often wonder if the costs include the lifetime of carpentry skills, design training, garage filled with power tools and time required to do the job. If you are looking for design ideas and hope for a home that isn’t attracting buyers, you’ll find some great ideas here, but take the true cost of those improvements with a grain of salt.
Real Estate Intervention – Being a real estate agent takes a lot of diplomacy, and this is never more important than that moment they suggest a market-friendly price to a home seller. On Real Estate Intervention, that diplomacy generally fails, sellers are unrealistic, and a stern man with a menacing mustache steps in for an intervention. He dishes out tough love to the seller and paints a clear picture of market reality. In a half hour he is able to change minds and make the seller feel good about the decision they made.
This Old House – This PBS staple wrote the book on home improvement programming. With TOHyou’ll trade commercials for pledge drives, but you’ll also get a more cerebral home improvement viewing experience. TOH does take patience, as it takes a full season to complete a home improvement project instead of 30 minutes on other programs. If you are looking for the same quality instruction in a more digestible format, you can check out the spin off, Ask This Old House.
Be warned that the home improvement bug often bites soon after watching any of these programs. After a long HGTV bender, I find myself wandering through the paint sample aisle and making trips to home improvement stores that aren’t on my way home from the office. Sometimes life does imitate art and the voice in the back of my head keeps saying, “They make it look so easy.”
What about you? Do you find home-improvement shows useful or do you think they set unrealistic expectations? What are your favorite home-improvement resources?
by Justin Waskow
Recently, news about how to purchase a real-estate owned (REO/bank owned) home, foreclosure property or short sale is everywhere. Bank owned homes are sold directly from the lender after the foreclosure process is complete, and while you may save quite a bit of money by choosing to go for this type of home, it is not without trials and tribulations. The process of purchasing a home directly from a lender can be long and arduous, but could very well be worth it in the end.
If you have your sights on a particular home or are looking to find a deal on your first, working directly with the lender may be your only option. Purchasing a bank owned home is not for the faint of heart, here are some tips for negotiating the REO process:
1. Be prepared: The condition of bank owned properties is usually poor and hard to show. Past owners may have left angry and left the home in bad condition with foul smells, missing appliances, wires taken from breakers, gas fireplaces gone, even bathrooms without toilets and sinks.
2. Understand the costs: Maintenance or repairs may be necessary, since these homes have been vacant for an unknown period of time–sometimes months or years. Keep in mind, when they were occupied the owners could have been under a financial hardship, preventing them from doing regular seasonal care or repairs when needed. Remember as well that the bank is trying to sell the house immediately, so you will receive a financial break in the price rather than a willingness to negotiate on the maintenance and repair issues.
3. Accept the unknown: In traditional real estate transactions, homeowners fill out Form 17 regarding important information about the history of the house. A bank owned home is either exempt or marked with “I don’t know” throughout the document. Not having the accuracy of this 5 page disclosure form could leave you with a lot of unanswered questions on the history of the home.
4. Know what is non-negotiable: The pricing on the house may not get much lower. Some of these properties can be “a dream come true” if you get them at an amazing price, or they could be your worst nightmare. Do your due diligence researching any property, and conduct all necessary inspections to safeguard yourself. Some major repairs may be negotiable, but will likely not reduce the home price.
5. Make a clean offer: The higher the price you can offer, the better. Include your earnest money, keep contingencies to a minimum, and suggest a reasonable closing date. The simpler your offer is, the higher chance you have of the bank accepting your offer or countering in a reasonable time period.
6. Be patient: Consult with a professional who handles bank owned home purchases to help you negotiate the pathway to homeownership. The process of purchasing a bank owned, foreclosed or short-sale home is typically longer than a typical real estate sale.
What do you want to know about purchasing bank owned, foreclosure and short-sale properties?
Posted in Buying, Selling, Community, and Living by Tara Sharp
“Of course, thanks to the house, a great many of our memories are housed, and if the house is a bit elaborate, if it has a cellar and a garret, nooks and corridors, our memories have refuges that are all the more clearly delineated. All our lives we come back to them in our daydreams.”
Gaston Bachelard, the Poetics of Space
I have been following the news about the housing market pretty closely and am pretty disappointed with some of the articles declaring a case against homeownership. I couldn’t disagree more. If anything, I see the value of homeownership: responsible financial investment, social stability and community connection as more important than ever.
I was particularly moved by the story in the Seattle Times yesterday about the Lutz family in Ballard, a family with seven adopted siblings that are helping their parents move from their family home to a smaller condo now that their children have left the nest. Though their story is far from typical, it really resonates how home is the center of family life, a place where memories are created and how houses tell the stories of the lives we build while in their shelter.
Homes do that for people. They are the places where some of our most intimate stories unfold.
Finding and creating a home is an emotional, psychological, social and financial investment. There is a lot of energy involved in finding the place to envision the future, raise a family, and perhaps retire. There is no other investment as enjoyable as your own home. Investments in gold or stocks cannot compare to the feelings about a place where you collect memories, create spaces that reflect your ideals and develop to fit your needs over time.
Beyond the emotional ties to home, a number of studies have shown that home ownership has a great impact on feelings of personal autonomy, life satisfaction and increased investment in the community. The sense of satisfaction goes beyond the ability to paint walls whatever color we want, or make improvements to our homes on our own terms. It goes deeper by improving our sense of well being. Furthermore, when we have a stake in the community we live in, we participate more, making our neighborhoods safer and healthier for all members.
Not all the news about the housing market is negative, actually there are many great articles: “in defense of home ownership”, “ten reasons to buy a home “and “a dream house after all” to name a few. But regardless of where you stand on the housing market right now, we can all likely agree that there is no place like a home.
All of our experiences of home are unique. Please share your best memories of home.