Should Young Professionals Be Purchasing Homes?

Posted by on Mar 8, 2016 in Uncategorized | Comments Off on Should Young Professionals Be Purchasing Homes?


Buying a home is very exciting. The question frequently asked is whether or not young professionals should buy homes. This is a tough question, because it is true that younger people don’t necessarily know where they’ll be in a few years. But then again, even someone in their 50’s might need to sell their house unexpectedly. So it really is a coin-toss.  However, here are some reasons you can read more about that there is a debate about whether or not millennials should be purchasing homes.

Family. Most young newlyweds these days want to buy a house; after all, its the next milestone after marriage. The problem is that the next milestone after buying a house is having children. While they may not plan to any time soon, things come up. And then another thing comes up. Before you know it, you have two children and only one nursery. It’s not just about the space, though.  Yes, you can afford to pay the mortgage, but you may not have expected the costs of two new toddlers.

The general rule, is that if you don’t plan to stay in a new home for at least 5 years, you shouldn’t purchase it. The reasoning behind this is that it is cheaper to lease a place rather than purchase if you won’t be in a house for very long. The reasoning behind this is that it will take you at least that long to return the money that you poured into the home. 3-Reasons-Why-Video-Production-Is-The-Key-to-Improving-B2B-Sales

You’ve also got to continue working to pay off your auto and student loans as well as any other debt. Banks will be less likely to approve you for another home, when you still have one, as well as other outstanding debt, plus you’re in your 20’s. It doesn’t look too appealing to a bank lender.

Another debatable point is career which you can learn more about from this blog.. When a homeowner is just starting out, they aren’t that stable in their job yet. They may not have enough of a stable job history for a bank to justify a loan.  Anybody’s job situation can change overnight due to more reasons than are able to count. Should you have to take a job that has a lower salary, you might not be able to meet your mortgage payments and live comfortably.

Just because you can afford the mortgage, does not mean you can afford the house. Owning a house requires a stable income, money to maintain the home, taxes, utilities, and so on. You do not want to end up in a large, fancy house with no way to furnish it or pay the light bill.

Resource: http://www.peterharrisrealestate.com/

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Should I Rent-to-Own?

Posted by on Mar 8, 2016 in Uncategorized | Comments Off on Should I Rent-to-Own?


These homes offer a way for people who can’t qualify for a mortgage (for whatever reason) still be able to purchase a home. There are many reasons a person can’t get approved for a mortgage that go beyond a credit score. A person can have excellent history, but no previous debts showing that they can make payments, or a short credit history in general which makes bank lenders apprehensive to approve a loan. Rent-to-Own homes allow these people to rent a home, in which the money goes toward purchasing it.  This method of purchasing homes has been around for a while, and isn’t going anywhere. Find out more here However, this method usually works better in the sellers favor than the renter. However, it can be a great idea; here’s why.

Sometimes, you are very close to being able to get a mortgage. Perhaps you had a short credit history, and now its grown. Perhaps you did get that auto loan, and have a long history of on-time payments to show. If this sounds like you, renting-to-own may be a good idea, as this describes the ideal rent-to-own candidate. This will give you time to continue improving your credit report, and by that time, you’ll be in a position to afford a mortgage for the rest of the home.

When you decide to take on this endeavor, you will be paying a fee to the landlord to show that you a re going to purchase the house at some point; don’t expect to get this fee back. The reason a deposit is given is that in many of these cases, the tenant/to-be-owner, moves out before they purchase it.

This is unfortunate, because all of the payments you’ve made literally went toward nothing, and your deposit is forfeited. You’ll have lost even more money than if you had rented, because with rent-to-own, the rent is higher than it is with a standard leasing situation.

Rent-to-own is not yet as strictly regulated as the regular buying industry. It does benefit the seller and buyer, as they are each able to designate their own terms and come to their own agreements. However, it makes it easier for owners to take advantage of the buyers who don’t really know what they’re doing. You should always advise a real estate attorney if you are considering this method of purchasing a home. There also is not a lot of information online or in books that describes in detail the rent-to-own process as there is with traditional home buying.

The Bottom Line

This method of buying a home is not everyone’s favorite, which is why most people like to wait until they are able to have a bank approve them for a mortgage, and buy a home the traditional way. There are some great benefits, but there are some terrible pitfalls. However, there are many things to weigh. Only you can decide, but do spend time researching whats out there, and thinking seriously about it.


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Don’t Let Your Home Be a “Stale” Home

Posted by on Mar 8, 2016 in Uncategorized | Comments Off on Don’t Let Your Home Be a “Stale” Home

‘Days on Market’

One of the most important questions that a buyer is going to use to their advantage, is how long your home has been on the market; this is their first key into knowing if, and how much they can negotiate with you. They are trying to figure out how desperate you are to sell the house, and how far they’ll be able to get you to lower the price. If the home has been on the market for only a short time, they’ll know to not mess with you, until the price drops. However, by then, they may have found something else which is why it is important not to overprice your home.

Related article: Buy My House Tips

The ‘days on market’ is a real estate term that refers to, obviously, how long a home has been on the market. The reason that you want to keep your home listed for as short amount of time as possible is that the longer it stays, the more lowball offers you can expect to pour in, and the solid, reasonable offers to fade. Not only that, but depending on how long your home has been on the market, buyers may not want to even look t it.  There’s no way around it. This works to the buyers advantage, as there is no ‘estimate’ for how long its been listed, only facts.

Too many sellers try to use their home as a ‘test’ to see how much they can get for it, so they list it at the highest price they can. This is a really bad idea.  The data on this is not positive; homes that sit longer, and grow ‘stale,’ have a lower chance of selling, and more often than not, they sell at a lower price. You need an honest real estate agent who will tell you the truth about how much your home is worth, but more importantly, you’ve got to listen to them.

Additional reading: We Buy Houses

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How to Screen For a Real Estate Agent

Posted by on Mar 8, 2016 in Uncategorized | Comments Off on How to Screen For a Real Estate Agent


Can I Trust My Potential Realtor?

Realtors have had a bad rap for a long time. Every profession has dishonest people. The problem with trying to find an honest person, is that they usually don’t reveal their true colors until later. However, there are some signs that may give an indication that you should go with a different realtor. People still use agents today because they trust them, and trust that they know more than they do, but most importantly, because they want the best for them. Unfortunately, realtors don’t necessarily want the best for you. It’s not personal. Everyone in life tends to look out for themselves. However, if you are to sell your home, it is essential that you have a relationship based on trust with your realtor. We Buy Houses has more education on trusting your realtor.

Real estate agents frequently exaggerate their experience on their websites, and sometimes, to clients. You should spend a fair amount of time reading their reviews online and asking around, to get an idea of what they are like.

  • Experience: You should ask the realtor how long they have been practicing. More important than how long they have been in business is how many homes they have sold, and whether or not they were close to the asking price, as well as how long it took to close. Just because a real estate agent has been in business for 9 years does not mean that they have 9 years of experience. If you don’t have a highly-trained realtor, they won’t be able to predict future problems, and/or know how to tackle them.
  • Current Listings: You should find out the agents current listings, and how many. You should go to their real estate firm, and click on ‘my listings,’ to see how many they have. No matter what they tell you when you ask, this is where you can find out the truth. If they don’t have any listings, you probably should ask yourself why. Better yet, it is important to ask them why they don’t have any listings. Too many people are afraid to ask these types of questions because they don’t want to offend anyone. Do you want your home to sit on the market.
  • Specialty: Real estate agents have specialties, as does any profession. Some deal with commercial transactions, some solely residential, or high-end homes, or low-end homes. You should probably find someone else who is more experienced in the type of home you want to buy, who knows the particular area.  Another run-in, is if you see only one high-end listing on the realtor’s site, but you can’t find any others.
  • Visit Buy My House to keep reading.

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