As discussed in part 1 of this article, the real question is - Are we on the right track?
Since the publishing of Part 1, the $8,000 credit has been extended and expanded. And that is a great news for many buyers. But the question remains - will this fix it?
As an industry, we do believe that this will help with sales. As an individual taxpayer, I am concerned! Why, because while the money is being given, there are no checks and balances. We are doing many of the same things that got us in to this mess. And if this continues, we will most likely be in this mess again, perhaps even worse.
Problems:
1) Thousands and thousands of fraudulent cases are under investigation. Many people abused the system. We MUST have a way of punishing those who cheat!
2) A huge one - we are still lending to those who can't afford it. We want to encourage people to be homeowners and that is EXCELLENT! Every one should own if possible. But do they know how to take on the responsibility? Are they putting down enough to know that they can't just walk away? Do they have a good credit indicating atleast a good past history?
Even today, we are seeing programs with 3.5% down (money that can be borrowed from friends and relatives) without a perfect credit. Is it too hard to figure that these will most likely result in a default, if circumstances change even a little? Put 3.5% down, get 10% back (up to $8,000) - what are we thinking? What is the motivation to keep the home when things or circumstances change? Atleast I can't figure this out! The real sad part of this is, these homeowners will have to go thru more hassles, if and when things change, making it even harder for them to recover later. Why put them in this situation knowing that the odds are not in their favor?
3) While we are too liberal in some cases, the lending is still an issue where banks are not lending to those even with good credit, and with good down payments. And that slows down sales unnecessarily. Bringing back lending programs that lend to those who have enough vested of their own is crucial. What's wrong in lending to someone who is putting 25% down and has good credit? We don't need this person to provide many documents, his/her own money is at risk!
4) Bad appraisals can be a huge problem. We need to make sure appraisals are done by local people who understand the local market. And there should be some way of a random checking to make sure these appraisers are following proper rules and appraising right! A lot has changed and the appraisers are careful now in making sure they are not part of any fraudulent activity that appraises the property higher than the market. There should be penalties for those who don't follow the rules.
We need to do what is right, instead of doing what serves a segment. We need to look at long term consequences, instead of short term fixes. And biggest of all, we need to reward right behaviour.
Imagine this - send a check to all those who act responsibly and encourage them to do so! Novel idea, least popular perhaps, but one that will stop many on the edge to make a wrong decision. And thank those who act responsibly.
All this said, we must not walk away from those who became victims of the market conditions. But let's do this right in the beginning so that there are less victims when things change.
Sanjeev Aneja, CRS, Broker/Owner
sanjeev@ontrackrealty.com
Monday, November 16, 2009
Sunday, October 25, 2009
Why is the Real Estate Market in turmoil? Are we on the right track to fix it? Part 1
Hindsight is always 20/20 and we can all now make our comments and think we are the smartest. Here are my 2 cents too, on why it is so. The main discussion then is - are we really fixing this (& we look forward to your comments on that)? Most of our discussion in this article and part 2 of this article, to be posted later, will be about that!
Why are we here?
Many reasons, greed being # 1; carelessness being # 2 (by banks and lenders); short term investors being # 3; the list goes on. This was all working well (on the surface) but when the banking crashed, it started showing it's toll.
The market was never a problem for qualified buyers who were buying their homes for long term living, and put enough money down. It did become a problem, however, for those who borrowed 100% or more of purchase price; for those who had bad credit and didn't know how to manage it any better; for those who left nothing for unforeseen circumstances; and then unfortunately for those - who did everything right but lost their job and couldn't afford to stay in their home. While the banking mess was huge, major factor the greed & carelessness.
And now, the banks have taken a 180 degree turn and won't lend to even the qualified buyers, so that adds to the problem. Add to it the bad economic news (though showing some signs of recovery) and job losses, plus some short term fixes w/o long term consequences by our leaders and the things just get worse.
Another major factor resulting in short sales and foreclosures is those bank executives making wrong decisions/policies even today. Instead of working with those who are paying in time but struggling and requesting a payment plan or reduction in interest, they tell them that they will talk to them when they are late on their payments. What an incentive to a homeowner who wants to do it right!!!
This can go an on and on. Let's go to the real question - Are we on the right track?
My answer, for very long time, has been NO. The only way to do it right, for long term benefit, is to reward the right behaviour, not wrong. To reward those who keep on doing it right instead of those who don't care. To help those who really did everything right but are now victims of the market conditions or their personal circumstances (not because of their doing). Reward the good ones, and encourage those at the bottom to get the reward too, goes a long way instead of encouraging people to do it wrong and benefit so that others can follow the same.
Those who need genuine help, MUST be helped. We must evaluate their past profits and their current circumstances. I know this is not an easy task but we are not talking about easy. Long term is never easy, but always the best.
Another thing is this $8,000 credit to the first time buyers. Is this a good thing, you bet!! But not if it doesn't come with conditions like evaluation of bad past behaviour such as too much debt, bad credit, bad spending habits, taking out equity to buy luxury items and vacations, etc that has no explanations. Selling homes just for the sake of it will only bring those homes back on the short list and foreclosure list not too long from now. And if we stay in this mode, when will we get out of it? How long will those with proper habits and commitment to take care of their obligations keep paying for those who just keep spending and then don't know how to pay back?Our politicians can't just look good by taking short term decisions, they have to look beyond. Their problem ofcourse is long term thinkers won't get re-elected because they didn't make a popular decision or because their decision didn't show the quick results we all want. And most politicians worry about the polls first, right way after.
So the buck stops at us - we must reward right behaviour - of our politicians and of ourselves. If someone puts themselves in the situation they are in due to their carelessness or no care attitude, they MUST NOT be rewarded. But those who become victims of their circumstances, despite their best efforts, should be helped no matter what it takes. We must not do things just for the sake of doing them.
More to continue. Send us your thoughts.
Sanjeev Aneja, Broker/Owner
sanjeev@ontrackrealty.com
Why are we here?
Many reasons, greed being # 1; carelessness being # 2 (by banks and lenders); short term investors being # 3; the list goes on. This was all working well (on the surface) but when the banking crashed, it started showing it's toll.
The market was never a problem for qualified buyers who were buying their homes for long term living, and put enough money down. It did become a problem, however, for those who borrowed 100% or more of purchase price; for those who had bad credit and didn't know how to manage it any better; for those who left nothing for unforeseen circumstances; and then unfortunately for those - who did everything right but lost their job and couldn't afford to stay in their home. While the banking mess was huge, major factor the greed & carelessness.
And now, the banks have taken a 180 degree turn and won't lend to even the qualified buyers, so that adds to the problem. Add to it the bad economic news (though showing some signs of recovery) and job losses, plus some short term fixes w/o long term consequences by our leaders and the things just get worse.
Another major factor resulting in short sales and foreclosures is those bank executives making wrong decisions/policies even today. Instead of working with those who are paying in time but struggling and requesting a payment plan or reduction in interest, they tell them that they will talk to them when they are late on their payments. What an incentive to a homeowner who wants to do it right!!!
This can go an on and on. Let's go to the real question - Are we on the right track?
My answer, for very long time, has been NO. The only way to do it right, for long term benefit, is to reward the right behaviour, not wrong. To reward those who keep on doing it right instead of those who don't care. To help those who really did everything right but are now victims of the market conditions or their personal circumstances (not because of their doing). Reward the good ones, and encourage those at the bottom to get the reward too, goes a long way instead of encouraging people to do it wrong and benefit so that others can follow the same.
Those who need genuine help, MUST be helped. We must evaluate their past profits and their current circumstances. I know this is not an easy task but we are not talking about easy. Long term is never easy, but always the best.
Another thing is this $8,000 credit to the first time buyers. Is this a good thing, you bet!! But not if it doesn't come with conditions like evaluation of bad past behaviour such as too much debt, bad credit, bad spending habits, taking out equity to buy luxury items and vacations, etc that has no explanations. Selling homes just for the sake of it will only bring those homes back on the short list and foreclosure list not too long from now. And if we stay in this mode, when will we get out of it? How long will those with proper habits and commitment to take care of their obligations keep paying for those who just keep spending and then don't know how to pay back?Our politicians can't just look good by taking short term decisions, they have to look beyond. Their problem ofcourse is long term thinkers won't get re-elected because they didn't make a popular decision or because their decision didn't show the quick results we all want. And most politicians worry about the polls first, right way after.
So the buck stops at us - we must reward right behaviour - of our politicians and of ourselves. If someone puts themselves in the situation they are in due to their carelessness or no care attitude, they MUST NOT be rewarded. But those who become victims of their circumstances, despite their best efforts, should be helped no matter what it takes. We must not do things just for the sake of doing them.
More to continue. Send us your thoughts.
Sanjeev Aneja, Broker/Owner
sanjeev@ontrackrealty.com
Wednesday, September 30, 2009
Improve or Not to Improve, that's THE Question!
A very common question that goes though most home owner's mind is (specially when they want to sell their home or when they plan to sell it within next 2/3 years) - Should we improve the home or not and what improvements should we make, if any?
Here are some answers. While they may not apply to every individual's needs, they will give you some guidelines.
1) Make improvements that will make your home attractive to masses. Adding a 2nd bathroom to a 5 bedroom home is a good improvement. Adding a 5th bath to a 5 bedroom home is worthless. And when can that change? If the whole home is falling apart, the 2nd bath won't do much as the buyer may want to knock down the home; the 5th bath may be OK to add as the 5th bedroom is on the first floor and there is no full bath on that floor. See how things can change based on your circumstances and conditions and that is why not all suggestions will apply to all. Base your decisions on your circumstances, not of others.
2) Be neutral. While colors may be in fashion, which color will the real buyer like, one does not know. The most costliest of paint won't do much if they don't like the color. I remember being in a home where the sellers had replaced their carpeting with the most expensive carpet throughout their home. And they wanted to get extra money for that improvement. Problem? - the carpet was dark blue throughout and every buyer who saw it, wanted to actually reduce the price so that they can replace the carpeting.
3) Avoid extravagant landscaping. While nice landscaping will definitely be attractive and help with the sale, it will most likely not give you a positive return on your investment.
4) Common things such as showing it neat and clean, no clutter, bright and open, etc are things that cost little but help sell fast at higher price.
All this said, if you are making the improvements for your own enjoyment and do not care for the return, by all means make them to enjoy your home. Any suggestions that are made are only when it is purely about the value you create when selling.
Want to know what you should do in your home? Just ask and we will do our best to help.
Sanjeev Aneja
Sanjeev@ontrackrealty.com
732.494.2211
Here are some answers. While they may not apply to every individual's needs, they will give you some guidelines.
1) Make improvements that will make your home attractive to masses. Adding a 2nd bathroom to a 5 bedroom home is a good improvement. Adding a 5th bath to a 5 bedroom home is worthless. And when can that change? If the whole home is falling apart, the 2nd bath won't do much as the buyer may want to knock down the home; the 5th bath may be OK to add as the 5th bedroom is on the first floor and there is no full bath on that floor. See how things can change based on your circumstances and conditions and that is why not all suggestions will apply to all. Base your decisions on your circumstances, not of others.
2) Be neutral. While colors may be in fashion, which color will the real buyer like, one does not know. The most costliest of paint won't do much if they don't like the color. I remember being in a home where the sellers had replaced their carpeting with the most expensive carpet throughout their home. And they wanted to get extra money for that improvement. Problem? - the carpet was dark blue throughout and every buyer who saw it, wanted to actually reduce the price so that they can replace the carpeting.
3) Avoid extravagant landscaping. While nice landscaping will definitely be attractive and help with the sale, it will most likely not give you a positive return on your investment.
4) Common things such as showing it neat and clean, no clutter, bright and open, etc are things that cost little but help sell fast at higher price.
All this said, if you are making the improvements for your own enjoyment and do not care for the return, by all means make them to enjoy your home. Any suggestions that are made are only when it is purely about the value you create when selling.
Want to know what you should do in your home? Just ask and we will do our best to help.
Sanjeev Aneja
Sanjeev@ontrackrealty.com
732.494.2211
Friday, July 31, 2009
7 Mistakes to Avoid when Buying a Home!
For most people, home buying is one of the biggest purchases of their lifetime. And it is the most rewarding of all other investments too. After all, which other investment let's you use it, improve it, enjoy it, raise your family in it, leverage it, write off taxes, and most likely realize a nice appreciation too?
Like all other investments, there are precautions you must take to make sure you don't end up making a wrong decision. Here are 7 we suggest.
1) Do NOT buy much more than you can afford: This is critical. Buying what you can't afford, just to show off to your friends or for false ego satisfaction, can cause a lot of headaches with time. You will end up working many more hours to keep up with your mortgage payments. You will be stressed out. You will not have time to enjoy the home as you are working harder. And, as seen many times, buyers who over buy, end up defaulting.
2) Do NOT buy unless you plan to stay in the home for atleast 3 years: Even in an slightly appreciating market, it takes that long to get your money back including the closing costs. So while buying is an excellent idea and everyone should, you must analyse your situation first.
3) Not working with one agent: Many buyers will call from ad to ad and sign to sign. They want to work with the listing agent but they don' realize that they are losing out on seeing many great values that didn't even have the time to get a sign or be advertised. Hiring a right agent and then trusting him/her can make a big difference between finding the right home at the right price. Ofcourse, the key here is interviewing few agents and making sure that the one you are about to choose does this for living (full time) and has your best interest in mind.
4) Not buying the right home: Many times, we see a buyer loose out on the right home just because they wanted to negotiate harder while someone else was willing to pay the price for the home. It is more important to find the right home that you will love to come back to every night instead of buying one that is a little cheaper. We are not saying you should buy more than you can afford here, what we are saying is that within your budget, buy the right one. Also, make sure that the home meets your basic needs.
5) Reading wrong books: There are books out there that guide homebuyers to make an offer 15% below asking price. Nothing can be more misleading than this. Remember the author is making his/her money by selling books and more they misguide, more they sell. While they may have an excellent point for overpriced homes and while they may be giving a great advise in a falling market with no demand, they make many miss out on right homes that are priced right to begin with. While reading such books is OK, following their advise blindly can almost guarantee no home and if you get one cheaper, it was overpriced anyhow so you got no bargain.
6) Waiving a home inspection: Such a large investment and you want to save few hundred dollars in inspection money? Not a good idea at all. Home inspection not only helps you possibly find defects, it also helps you renegotiate the price if there are major issues, thereby paying back many times the inspection price. Just make sure the inspector is licensed and insured and will stand behind his/her inspection.
7) Not hiring an attorney: Again, remember this a large investment and you want to be protected by a good professional, specially if the opposing side has an attorney to represent them. Don't consider this as your cost, it is an investment.
This advise has been brought to you by the professionals at On Track Realty in Edison, NJ. http://www.ontrackrealty.com/. For any questions, please feel to call us at 732.494.2211.
Like all other investments, there are precautions you must take to make sure you don't end up making a wrong decision. Here are 7 we suggest.
1) Do NOT buy much more than you can afford: This is critical. Buying what you can't afford, just to show off to your friends or for false ego satisfaction, can cause a lot of headaches with time. You will end up working many more hours to keep up with your mortgage payments. You will be stressed out. You will not have time to enjoy the home as you are working harder. And, as seen many times, buyers who over buy, end up defaulting.
2) Do NOT buy unless you plan to stay in the home for atleast 3 years: Even in an slightly appreciating market, it takes that long to get your money back including the closing costs. So while buying is an excellent idea and everyone should, you must analyse your situation first.
3) Not working with one agent: Many buyers will call from ad to ad and sign to sign. They want to work with the listing agent but they don' realize that they are losing out on seeing many great values that didn't even have the time to get a sign or be advertised. Hiring a right agent and then trusting him/her can make a big difference between finding the right home at the right price. Ofcourse, the key here is interviewing few agents and making sure that the one you are about to choose does this for living (full time) and has your best interest in mind.
4) Not buying the right home: Many times, we see a buyer loose out on the right home just because they wanted to negotiate harder while someone else was willing to pay the price for the home. It is more important to find the right home that you will love to come back to every night instead of buying one that is a little cheaper. We are not saying you should buy more than you can afford here, what we are saying is that within your budget, buy the right one. Also, make sure that the home meets your basic needs.
5) Reading wrong books: There are books out there that guide homebuyers to make an offer 15% below asking price. Nothing can be more misleading than this. Remember the author is making his/her money by selling books and more they misguide, more they sell. While they may have an excellent point for overpriced homes and while they may be giving a great advise in a falling market with no demand, they make many miss out on right homes that are priced right to begin with. While reading such books is OK, following their advise blindly can almost guarantee no home and if you get one cheaper, it was overpriced anyhow so you got no bargain.
6) Waiving a home inspection: Such a large investment and you want to save few hundred dollars in inspection money? Not a good idea at all. Home inspection not only helps you possibly find defects, it also helps you renegotiate the price if there are major issues, thereby paying back many times the inspection price. Just make sure the inspector is licensed and insured and will stand behind his/her inspection.
7) Not hiring an attorney: Again, remember this a large investment and you want to be protected by a good professional, specially if the opposing side has an attorney to represent them. Don't consider this as your cost, it is an investment.
This advise has been brought to you by the professionals at On Track Realty in Edison, NJ. http://www.ontrackrealty.com/. For any questions, please feel to call us at 732.494.2211.
Tuesday, June 16, 2009
7 Mistakes to AVOID when Selling your Home!
Mistake 1. And the biggest mistake, is overpricing your home. While it is tempting to test the market, the results have proven again and again that the homes priced right sell fast at the best possible price. Overpriced homes take much longer to sell and often sell at much lower price. While it OK to price a little higher in a market where the prices are going up (as the market will eventually catch up), it is a huge mistake to price higher in the market that is going down.
Mistake 2. Choosing an agent who suggests higher list price just to get the listing. Sellers make this mistake often (and I did too when I was a seller and not an agent then in 1988). We interviewed 3 agents - one told us to list for $159,900, the other $164,900 and 3rd at $199,900. Ofcourse I loved the agent who gave us $199,900 and we listed with him. One year later, we sold our home for $153,500. Only if I had listened to the agent who showed me the comps and suggested the price based on those. I could have sold my home much faster at a much higher price.
Mistake 3. Not having the option to fire your agent if he/she doesn't perform as he/she says or if they don't guide you as needed to sell your home. Infact, we suggest that this be a MUST. Don't hire anyone who won't offer this guarantee. And we suggest that you go a little further - you should have the unconditional right to terminate the listing if your needs change.
Mistake 4. Not preparing the home for sale. Your home must look clean and smell good otherwise many buyers will be turned off. Not only do you risk loosing the sale, you also invite much lower price.
Mistake 5. Not disclosing any known defects in the home. This can not only terminate the sale after inspections, it can also cause lawsuits after the sale.
Mistake 6. Hiring an inexperienced agent. There is lot a good experienced agent brings to the table. It is not just about finding a buyer, it is handling the whole deal including negotiations, inspections, etc.
Mistake 7. Hiring an agent who offers the lowest commission. We have all heard, we get what we pay for. Don't miss out on a good agent to save a little on the commission. This little saving can actually hurt your bottom line when it is all said and done.
This advise has been brought to you by the professionals at On Track Realty in Edison, NJ. http://www.ontrackrealty.com/. For any questions, please feel to call us at 732.494.2211.
Mistake 2. Choosing an agent who suggests higher list price just to get the listing. Sellers make this mistake often (and I did too when I was a seller and not an agent then in 1988). We interviewed 3 agents - one told us to list for $159,900, the other $164,900 and 3rd at $199,900. Ofcourse I loved the agent who gave us $199,900 and we listed with him. One year later, we sold our home for $153,500. Only if I had listened to the agent who showed me the comps and suggested the price based on those. I could have sold my home much faster at a much higher price.
Mistake 3. Not having the option to fire your agent if he/she doesn't perform as he/she says or if they don't guide you as needed to sell your home. Infact, we suggest that this be a MUST. Don't hire anyone who won't offer this guarantee. And we suggest that you go a little further - you should have the unconditional right to terminate the listing if your needs change.
Mistake 4. Not preparing the home for sale. Your home must look clean and smell good otherwise many buyers will be turned off. Not only do you risk loosing the sale, you also invite much lower price.
Mistake 5. Not disclosing any known defects in the home. This can not only terminate the sale after inspections, it can also cause lawsuits after the sale.
Mistake 6. Hiring an inexperienced agent. There is lot a good experienced agent brings to the table. It is not just about finding a buyer, it is handling the whole deal including negotiations, inspections, etc.
Mistake 7. Hiring an agent who offers the lowest commission. We have all heard, we get what we pay for. Don't miss out on a good agent to save a little on the commission. This little saving can actually hurt your bottom line when it is all said and done.
This advise has been brought to you by the professionals at On Track Realty in Edison, NJ. http://www.ontrackrealty.com/. For any questions, please feel to call us at 732.494.2211.
Tuesday, June 2, 2009
Dangers of Overpricing Your Home!
Overpricing Can Be Costly!
While it is tempting as a seller to ask for the highest price possible (been there, done that), we suggest that you be very careful in pricing your home. The fact is, the homes priced right usually sell for the best possible price. While pricing high may be OK in an appreciating market, it can be the worst decision you can make in a declining market. Here are few reasons why you must not price your home wrong:
You will lose the excitement/momentum that a new listing generates: Real estate agents are working with buyers who have seen what is currently on the market and are waiting for something new to be listed. Therefore, the most activity will take place in the first 30 days of a listing. Your home will probably receive its highest and best offers during this time. After that initial period, the only people to look at your home will be new buyers in the marketplace.
You will lose the most qualified prospects: Buyers won’t be able to “make an offer” because they probably won’t see your property. They will view the properties that are priced within their purchase power range, knowing that they cannot afford anything above their price range.
Overpricing helps sell other, more competitively priced homes first: Your home may be used to demonstrate the good value of other properties. Your objective should be to enter the market in a position that will attract prospects, not drive them away.
Your home may become stale on the market: Prospects may wonder why it has been on the market so long or if something is wrong with the property, even after you lower the price. You may even have to settle for less than market value. A house takes on a reputation surprisingly fast, so don’t wear out your welcome on the market.
You lose a strong negotiating position when your house is on the market a long time, both financially and mentally: Prospects will not “rush” to make an offer on an overpriced property, and you may feel compelled to accept less when they finally do.
If you do get an offer, the contract may fall through because of appraisal problems: The lender must justify the price to the market. So even if the buyer pays the price, the lender may not approve the mortgage because of the appraisal.
As you can see, there are many reasons why you should price the home right. Don't choose an agent who is trying to buy your listing - by giving you an unrealistic listing price. This one mistake can cost you thousands. Always price your home logically, not emotionally.
Call the professionals at On Track Realty at 732.494.2211 to discuss your real estate needs. We promise to give you an honest evaluation, even if it means losing your business. We would rather turn down you business upfront by being honest instead of taking your listing and letting you down later. http://www.ontrackrealty.com/
Wednesday, May 20, 2009
Buy or Not to Buy? Advantages and Disadvantages!
While everyone talks about home ownership, and while there is no question that owning is better than not owning (explained below), there are some exceptions.
Some advantages of owning a home:
1) The pride of ownership - this is huge & irreplaceable
2) Tax benefits - Uncle Sam gives us most of us money back by allowing us to write off interest and property taxes
3) Appreciation in values - think of this benefit as a long term equity builder
4) The ability to live your lifestyle - home with a garden, townhouse with no outside worries
5) An advantage, atleast at this point - $8,000 credit if you qualify (many first time buyers do)
6) A large selection available due to increased inventories
7) Leveraging your money smartly is a great benefit
Some disadvantages:
1) Doesn't allow flexibility. Not easy to just pack up and move
2) The trouble of ongoing maintenance - takes away worry free lifestyle
So should you buy or not? Depends upon your situation. Apart from the advantages and disadvantages mentioned, here are few other questions you must ask:
1) Can I afford the monthly payments?
2) Do I have extra money for emergency repairs?
3) Is there an anticipated move within next 2 to 3 years?
4) Is there an expected change in my job?
5) Am I doing this to impress others or for my own needs?
Some suggestions:
1) Don't buy larger than you need or expensive than you can afford.
2) Know that buying for long term is the best thing you can do for your future savings!
3) Why waste on rent when you can own and build equity long term?
4) If possible, pay extra principal every month to payoff your loan sooner.
5) Don't use all of your equity for wrong purposes.
Good luck with the purchase of your home.
Sanjeev Aneja, CRS, Broker/Owner
On Track Realty, Edison, NJ
732.494.2211
www.ontrackrealty.com
Some advantages of owning a home:
1) The pride of ownership - this is huge & irreplaceable
2) Tax benefits - Uncle Sam gives us most of us money back by allowing us to write off interest and property taxes
3) Appreciation in values - think of this benefit as a long term equity builder
4) The ability to live your lifestyle - home with a garden, townhouse with no outside worries
5) An advantage, atleast at this point - $8,000 credit if you qualify (many first time buyers do)
6) A large selection available due to increased inventories
7) Leveraging your money smartly is a great benefit
Some disadvantages:
1) Doesn't allow flexibility. Not easy to just pack up and move
2) The trouble of ongoing maintenance - takes away worry free lifestyle
So should you buy or not? Depends upon your situation. Apart from the advantages and disadvantages mentioned, here are few other questions you must ask:
1) Can I afford the monthly payments?
2) Do I have extra money for emergency repairs?
3) Is there an anticipated move within next 2 to 3 years?
4) Is there an expected change in my job?
5) Am I doing this to impress others or for my own needs?
Some suggestions:
1) Don't buy larger than you need or expensive than you can afford.
2) Know that buying for long term is the best thing you can do for your future savings!
3) Why waste on rent when you can own and build equity long term?
4) If possible, pay extra principal every month to payoff your loan sooner.
5) Don't use all of your equity for wrong purposes.
Good luck with the purchase of your home.
Sanjeev Aneja, CRS, Broker/Owner
On Track Realty, Edison, NJ
732.494.2211
www.ontrackrealty.com
Wednesday, April 22, 2009
Showing your home at it's very best!
Want to sell your home fast for the best possible price? While here are many things to remember, here are few very important ones.
1) Price it right. Pricing it wrong and leaving too much room for negotiations will hurt you as the right buyers won't come thru the home.
2) Improve your curb appeal. If it doesn't attract from outside, many buyers won't go in. Would you go into a restaurant that appears very dirty but promises excellent food once you go in?
3) Keep it bright. Most people don't like dark homes. Let the natural light come in.
If you are working with a Realtor (not all agents are Realtors), follow the advise of your Realtor. You hired this person because you trust their opinion and expertise.
One other suggestion if working with a Realtor. Do NOT hire anyone who does not give you an UNCONDITIONAL PERFORMANCE GUARANTEE. Simply put, if you are not happy with their services, you should be able to fire them.
Good luck with the sale of your home.
Sanjeev Aneja, CRS
Broker/Owner
On Track Realty, Edison
732.494.2211
www.ontrackrealty.com
1) Price it right. Pricing it wrong and leaving too much room for negotiations will hurt you as the right buyers won't come thru the home.
2) Improve your curb appeal. If it doesn't attract from outside, many buyers won't go in. Would you go into a restaurant that appears very dirty but promises excellent food once you go in?
3) Keep it bright. Most people don't like dark homes. Let the natural light come in.
If you are working with a Realtor (not all agents are Realtors), follow the advise of your Realtor. You hired this person because you trust their opinion and expertise.
One other suggestion if working with a Realtor. Do NOT hire anyone who does not give you an UNCONDITIONAL PERFORMANCE GUARANTEE. Simply put, if you are not happy with their services, you should be able to fire them.
Good luck with the sale of your home.
Sanjeev Aneja, CRS
Broker/Owner
On Track Realty, Edison
732.494.2211
www.ontrackrealty.com
Subscribe to:
Posts (Atom)