by julie on March 8, 2010
Sometimes the hardest thing about my job is that it’s only maybe 25% knowing about houses, and the remaining 75% knowing about people. Often I’m working with two people who know each other well and have many common goals but still each have their own likes and dislikes. What do you do if he’s more worried about the budget and she’s more worried about being in the right part of town? What if he wants acreage and she wants neighbors?
Here’s a little house hunting marriage advice:
1) Start with the budget first. Talk to a lender to find out what price range equals what mortgage payment. Go over your budget together and decide what is important to you. If you have a bigger house does it mean less traveling? Money is something that can cause trouble in a marriage more quickly than anything so make sure you’re on the same page about this. Remember, having a big house is no fun if you can’t afford to furnish it. Having a house can be really stressful if you can’t afford to repair it. Make sure that your payment isn’t so big that you can’t afford to save.
2) Independently, make a list of your dream house – what does it have and what doesn’t it have? Now, take this list and prioritize: which things are “absolutely have to be there” and which are “I prefer it but if it’s not there that’s okay”. Now, take your lists and compare them. What things do you have in common and what are different? What are the reasons for wanting some of these things? Maybe you want a big yard because you’ve always wanted a dog but you can accomplish the same thing by living near a park. Talk about what is really important to both of you and why and both be willing to compromise.
3) Look at some houses. Sometimes once you’re actually in the house you realize that you don’t care as much about having a fireplace if it has a large kitchen. Or maybe your spouse had a point about not needing a 3rd stall to the garage if it has a storage shed (be willing to say “you were right” – they might say it then too!).
Overall, the theme is communicate with one another and then be considerate of one another’s needs, and you’ll both be in your “together dream home” in no time!
by julie on February 26, 2010
When I meet with a buyer for the first time, ideally I like to have them come into my office so that we can talk about what the process and what they want in the home. It is not unusual for me to hear “I want to buy one of those foreclosures” because we all hear so much about that in the media. I always respond: “I hear you say ‘foreclosure’ but I’m guessing what you really mean is ‘a good value’? It’s not always the same thing.”
Is buying a foreclosure a good idea? Is it the best avenue for getting a good deal? A foreclosure is a home that is owned by a bank rather than a “regular person”. It is true that they price realistically so as to sell the home but here are a couple of items that buyers should keep in mind when considering buying a bank owned home:
1) In the state of Michigan once the homeowner has fallen behind in their payments the collateral (the house) is auctioned off to make good on the debt (the sheriff’s sale) and then the homeowner has a 6 month redemption period where they are given the opportunity to repay the debt to keep the house. Sometimes during this period of time the homeowner either unintentionally damages the home by abandoning it without being properly winterized or intentionally damages the house by looting it. This is not always true, but it is not unusual for it to need work (and sometimes that can be a can of worms).
2) Be careful that you still have your realtor do market research on the pricing. I have seen homes sell for over market value because the buyer assumed they were getting a deal because they were buying a foreclosure.
3) Although the market overall has 8 months of inventory (by definition, a buyer’s market) foreclosures only have less than 3 months of inventory (a seller’s market) so be prepared to pay full price if it is new on the market. You don’t always have the luxury of thoughtful consideration and getting second opinions from friends and family.
4) Your expense in purchasing the home is often higher in a foreclosure. The bank often has the burden of turning utilities on for inspections passed on to the buyer, as well as more expensive title insurance and other “add-on” expenses are not unusual.
I am not saying that I don’t think people should buy foreclosed homes, it is absolutely an avenue for getting a well priced home to acquire equity. However, it’s not the only way and you need to go in with your eyes open.
Sometimes the hardest thing about my job is that it’s only maybe 25% knowing about houses, and the remaining 75% knowing about people. Often I’m working with two people who know each other well and have many common goals but still each have their own likes and dislikes. What do you do if he’s more worried about the budget and she’s more worried about being in the right part of town? What if he wants acreage and she wants neighbors?
