You Don't Need A Diamond...To Buy Real Estate

Janet’s Next Move

Lisa — Tue, 24 Feb 2009 03:59:54 +0000

Previously I wrote about Janet in Phoenix. Should she buy? Should she wait?

She bought. Or rather, she put in a contract which, after some negotiation, was accepted by the Sellers. She’s getting the property she wants — neighborhood, size and amenities — for a fantastic deal. Plus interest rates are so low that it’s well within her budget.

Are you sitting on the sidelines? If so, what are you waiting for?

There’s a protest going on in DC.

Lisa — Mon, 05 Jan 2009 01:37:16 +0000

The National Association of Realtors is protesting an increased fee being charged by Fannie Mae. The fee, as much as 3.25% of the loan amount, is being charged to lenders who pass on to borrowers with credit scores as ‘low as 690.’ See article by James R. Hagerty in the Wall Street Journal.

Let’s do a quick analysis. This really makes sense. If you have a loan amount of $200,000, then the fee would be $6,500. And, that doesn’t include any title company, broker fees, appraiser fees, etc. Great way to jump start economy, Fannie.

Since the average credit score nationwide is around 690, this hurts the average borrower.

Good luck to the National Association of Realtors!

Maybe it’s not the right time to buy or is it?

Lisa — Thu, 01 Jan 2009 22:07:47 +0000

House in Phoenix

My friend, Janet, who lives in Phoenix is planning to buy a house for herself. Her last two purchases have been investment properties. This one she’s going to live in. Janet is very practical, but

“I feel very emotional about this,” she says.

Right. Is IS emotional. But as long as you throw in some common sense, the decision to buy could be right for you.

Janet is doing it right. She:

Already owns her current home outright.
Has her emergency fund.
Is buying within her financial comfort level.
Is planning to live in the house for many years.

She’s working her plan. It is scary though. We’re talking about Phoenix – property values have gone down tremendously in the past year. There is a possibility values may continue go down in the next year. It won’t matter to her because she’ll still be in the house when they rise.

If you are thinking about buying, are you working your plan? Are you keeping your wits about you, while at the same time realizing it is emotional?

Time to buy — Now!

Lisa — Tue, 09 Dec 2008 21:15:28 +0000

We are in the best and worst real estate market in over 25 years. Best because it’s a Buyer’s market. Now is the time to make a deal. In many areas, I don’t think you’ll see home prices this low again. That is, if the economy makes a comeback next year.

It’s a bad market because — well you know the reasons for that. No need to focus on more negativity.

You know this is the right time for you to buy if:

you’ve been saving your money
you believe your job is fairly secure
you expect to own the property for at least 5-7 years and
you have a 6-8 month cash reserves in your emergency fund.

Is it your time?

Right Time To Buy?

Lisa — Mon, 29 Sep 2008 15:23:50 +0000

House I liked in Delray Beach

Just when is the right time to buy? Should you keep waiting for prices to drop even more? I was in Delray Beach, Florida in August. People there were saying, “you will never again see prices so low, but in the Spring they might be even lower.” So what do you do — wait? What if they start going back up?

The thing is now is a great time to buy. And the Springtime probably will be too. But more importantly, where are you in this process? Do you need a place to live? Do you plan on living in the property for a minimum of 3 years, but preferably 5 years? Do you have funds to put into the transaction? Do you expect your job and income situation to remain steady for the foreseeable future? Will you have funds leftover for an emergency?

It’s not just about price and timing the market. It’s about much more than that.

Listen and Learn

Lisa — Sat, 27 Sep 2008 19:16:44 +0000

This morning I saw my Chiropractor. While she was torturing uh I mean treating me, she asked about my book. She went on to relate her experience as a single woman buying real estate. She has purchased two homes, one in Maryland and one in Texas. Unfortunately, her experience was the same in both cases: the real estate agent didn’t listen to her. “She kept showing me 4 bedroom houses with 2 storys, and it was just me living there. I never wanted anything that big.” She felt as if a lot of her time was wasted, and that she did the work for the agent. Moral of the story: Listen to your clients and you’ll learn what they need and want from you.

700 Club

Lisa — Fri, 26 Sep 2008 14:58:15 +0000

$700 Billion Club, that is. Last night we had the biggest bank failure in U.S. history — Washington Mutual. Today we’re waiting to find out what happens with the Treasury Secretary Paulson’s plan. And, tonight there may or may not be a presidential debate. It’s enough to make one want to take the day off and go to the movies. Bad news. More news. Too much news to process.

Yesterday I had lunch with a friend who is saving as much money as she can right now. Her plan is to start looking this spring for her first house to buy. She believes prices will be just right by then. Between now and then she’s researching neighborhoods so she’ll be ready to jump on a property if she needs to. The important thing is: she has a plan. What’s your plan?

Goldilocks & the 3 Bears

Lisa — Mon, 22 Sep 2008 21:28:58 +0000

Remember the fairy tale about Goldilocks and the 3 Bears? It took her a couple of tries before she found the porridge and bed that was ‘just right.’ Searching for a property is akin to Goldilocks — if it doesn’t feel right, you shouldn’t buy it. Even if all other factors are there — price, location, amenities — you don’t want to find yourself with a big case of Buyer’s Remorse.

: The 3 Bears – Illustration by Arthur Rackham

It’s Scary Ride.

Lisa — Fri, 19 Sep 2008 18:22:34 +0000

Roller Coaster – Definitely Not A Good Idea

Originally uploaded by 10:10 Photography (aka Coroner)

The market has been crazy in the last week. It’s scary. Downright frightening. My opinion is that Wall Street got us into this mess. They were the drug lords of the loan products.

Market is opening up.

Lisa — Mon, 08 Sep 2008 17:02:15 +0000

One of the results of the current credit crisis has been the extreme tightening of the mortgage market. Plus, rates are higher than they should be. That is until today! Yesterday Treasury Secretary Paulson announced the U.S. government bailout of Fannie Mae & Freddie Mac. Fannie & Freddie own approximately 7 TRILLION in mortgages. Yes, it will cost the taxpayer, but alternative of doing nothing could end up costing us significantly more.

Look at article in The New York Times for more info.