CNBC recently ran an article on self-made millionaire and financial expert, David Bach, who believes buying a home is an "escalator to wealth." He feels if millennials don't buy a home "their chances of actually having any wealth are little to none. The average homeowner is 38x wealthier than a renter.
Here are some of his tips for first time home buyers:
- Calculate costs so your first investment is minimized. The total housing monthly payment shouldn't consume more than 30% of your take home pay.
- Put down at least 10%. More is better.
- Borrow 10-20% less than a bank is willing to lend you.
- Recognize buying your first home is not buying your dream home.
Bach states, "You aren't really in the game of building wealth until you own some real estate." David has written 9 consecutive NY Times best sellers, been a contributer to many TV shows such as Today, CNN, CBS, ABC, and has been profiled in the Wall St. Journal, Financial Times, Forbes, Business Insider, etc. He gives simple advice - if you don't own a home, go buy one.
Contact me for help in starting on your escalator to wealth! 603-526-4116, Donna@DonnaForest.com, www.DonnaForest.com
Congratulations! You’ve just purchased your first home. There’s no denying that this is a very exciting time in your life. Becoming a homeowner will bring many new opportunities your way, the first one being a chance to go shopping! As a first-time homebuyer, there are some things you need for your home that you may not have needed previously. So grab a piece of paper and pen because it’s time to create the ultimate first-home shopping list.
1. Lawn Equipment
One amazing thing about owning a home is that you own the lawn, the grass, the flower beds, and everything else that comes with the property. However, this also means you have to take care of what you own, and unless you’re hiring a landscaping company, you will need to purchase some lawn equipment. Here are a few useful tools to help with lawn maintenance and get you started in your outdoor maintenance:
- Lawn mower
- Weed whacker
- Weed puller
- Water hose and sprinkler
- Ladder
2. Household Tools
Even if your home is newly built, maintenance will be required. Whether it’s a leaky faucet, squeaky hinges, or more elaborate home repairs that crop up, you’ll need some tools of your own. The upfront cost of purchasing tools can be significant, but they can save you an abundance of money in future home repairs. After all, if you let problems persist, they will only get worse—and much more expensive. In addition, you may wish to do some simple home renovations yourself, such as hanging a TV on the wall or changing out the house’s original hardware. As a rule of thumb, grab these tools to ensure regular maintenance and quick home repairs:
- Screwdriver set
- Hammer
- Level
- Pliers set
- Tape measure
3. Gardening Gear
Gardening gear is different than lawn equipment; while you have to maintain your lawn, you aren’t required to plant beautiful, vibrant flowers to enhance the landscaping of your home. However, planting some fresh flowers and/or a vegetable garden can bring an abundance of enjoyment to your experience as a first-time homebuyer. It will also enhance the exterior appearance of your home, and may even provide you with a new hobby to enjoy for years to come. Some items to get you started on the path to creating a captivating landscape include:
- New plants, such as fruits, vegetables, flowers, bushes, etc.
- Soil, fertilizer, and mulch
- Gardening gloves
- Gardening tools, such as cultivator, trowel, and fork
- Shovel
4. Outdoor Patio Furniture
As a new homeowner, you may not have had the benefit of an outdoor living space previously. However, now that you have purchased your first home, if you do have this benefit, you can style your backyard to your liking. Whether you have a condo balcony, small yard, or acres to enjoy, you’ll need some outdoor patio furniture. Create the ultimate outdoor living space with the following items:
- Patio chairs and table
- Outdoor lights
- Barbecue
- Outdoor plates, bowls, and cutlery
Buying a home is a huge investment. It’s the first major purchase you make towards building a better future. Preparing yourself with a list of must-have purchases you need as a first-time homebuyer will help decrease the stress of the move and responsibility, and bring much enjoyment in the long run.
Reprinted from BHGRE.com
In order to take the mystery out of the closing for first time home buyers, here are some basics on the process:
- You do a walk-through the day before or morning of the closing to ensure the house is in the same general condition as when the offer was made and things are left that were supposed to be there (e.g. appliances).
- Your lender hires a closing agent to create a statement outlining the loan amount, loan costs, recording fees, title insurance premiums, escrows for insurance & taxes, state transfer tax, tax prorations, and the deposit. This shows how much money you bring to close.
- You are charged for any oil/propane/cordwood left. This may be put on the closing statement or paid by personal check to sellers at closing.
- Be prepared to sign lots of paperwork at the actual closing! The money you bring to closing should be on a bank check or previously wired to the closing agent.
Your agent will help you through this process, but knowing what to expect can alleviate many concerns. Give me a call if you want an experienced REALTOR® helping you! 603-526-4116, Donna@DonnaForest.com, www.DonnaForest.com
- Get you finances in order before even going to look at homes. Make sure you have anough for a down payment and closing costs.
- Talk to a lender and get pre-qualified for a loan.
- Decide when you can actually move. When is your lease up?
- Realize there is no perfect home. There will be trade-offs to every property.
- Don't be tempted to spend more than you can afford. Remember, there will be recurring costs like insurance, taxes, utilities and maintenance.
- Understand the fine print and ask questions. It's important to understand what you are signing to avoid problems down the road.
- Hire a REALTOR® to be your Buyer's Agent. They can guide you through the whole process and provide invaluable advice.
Buying your first home is an exciting experience and should be fun. Give me a call if you are looking for an experienced REALTOR® and Accredited Buyers' Representative to help you through the process. 603-526-4116, Donna@DonnaForest.com, www.DonnaForest.com
Known for service, trusted for results – Coldwell Banker Milestone Real Estate.
House hunting is an emotional experience. There is no “perfect” house and you need to keep in mind it’s a decision-making process that involves trade-offs between each property. Here are some key concepts to remember:
- Get pre-qualified before going out to look at homes. This way you won’t fall in love with a house you can’t afford.
- Think about not only how the house will meet your present needs but how it will work for you in the future as well.
- Consider all the pluses and minuses of the location and how it fits into your lifestyle, including travel time to work, schools, etc.
- Set priorities. Put more emphasis on your needs vs. wants.
- Ignore bad décor. Be prepared to look at potential; cosmetics are easily changed.
- Don’t forget resale. Choose a home that not only appeals to you but also is likely to appeal to others down the road.
It is important to work with a good REALTOR® who knows the neighborhoods and local information. If you are planning to buy a home, contact me and put my 21 years of experience to work for you as your Buyer’s Agent. Donna Forest 603-526-4116; Donna@DonnaForest.com; www.DonnaForest.com
Known for service, trusted for results – Coldwell Banker Milestone Real Estate.
Here are some tips to help you buy that get-away you’ve always dreamed about!
- Research the area to see how it matches your wish list. Make a scouting trip first before even going out to look at properties.
- Hire a local agent who is familiar with and has worked in the area for a number of years.
- Buy something convenient to your primary home. You will end up using it more often.
- Consider a location offering both summer and winter recreation, even if you only plan on using it for one of the seasons. This helps maintain the value and provides a greater range of buyers if you need to sell at some point.
- Pencil out your finances before making the offer. Factor in all the costs of ownership including plowing, insurance, dues, maintenance, utility bills, etc.
- Know how you will pay for the home. If you need a loan, working with a local lender will make the sale go more smoothly.
If you are looking for a REALTOR® with 20 years experience in the vacation home market and who has tons of practical advice, please contact me. 603-526-4116, donna@donnaforest.com, www.donnaforest.com
Donna Forest, Broker Associate, ABR
Lately, I've been surprised to see our market area starting to experience multiple offer situations. While not an every day event, it certainly pays for buyers to be prepared should they find themselves in a bidding war. Here are some tips to help put your offer in the best position. 1. Keep contingencies to a minimum. Decide what inspections you can live without and don't add in extra clauses. 2. Find out the seller's ideal closing date and use it for your closing date. 3. Keep all contractual due dates in as short of time frame as possible. 4. Be prepared to offer over the asking price. With multiple offers, money talks and usually the higher price wins. 5. Cash offers beat offers with loan conditions. (Unless the offered price is significantly higher than the cash offer.) Present a pre-approval letter with your offer if it is based on obtaining a loan. 6. Even though you may be getting financing, you can write the offer as a cash sale with no loan contingency. You must be confident you will get the loan with no issues. Bidding wars are emotionally tough as someone always loses out. Give your best and final offer so you have no regrets if you don't get the home. Contact me if you want to work with a buyer's agent to help you navigate the challenges of buying a home. 603-526-4116, donna@donnaforest.com, www.donnaforest.com
Okay buyers, I know it’s like being a kid in the candy store when you are out looking in today’s market. There are plenty of choices. However, there is no reason to look at every home for sale in your price range. You are NOT going to find the perfect one – every house has trade-offs and it’s a matter of weighing the features important to you. Psychologists and economists have studied the issue of too many choices and have concluded that an overload of options may actually paralyze people. Buyers fear that whatever they select, the other option would have been better. Research shows that an excess of choices leads us to be less, not more, satisfied once we actually decide. According to the 2013 National Association of REALTORS® Profile of Buyers & Sellers, the typical buyer viewed 10 homes during their home search process. If you are spending hours researching and have looked at way more than 10 houses, it’s time to stop and focus. And be happy with what you decide! If you need help in focusing, then give me a call. As an Accredited Buyers’ Representative, I will put my years of experience to work for you. donna@donnaforest.com, www.donnaforest.com, 603-526-4116.
It’s time to go to the closing. How should buyers & sellers prepare so all goes smoothly? While the closing agent (an attorney or title company) handles most of the details, there are some actions you can take to avoid last minute surprises. Be sure you know where the closing is and at what time and bring photo ID. Your REALTOR® should review the closing statement with you for accuracy prior to the closing. Buyers should bring closing funds in the form of a certified or cashier’s check. Funds can also be wired, as long as it’s done in time to arrive for the closing. This usually means at least a day ahead. Wiring is not instantaneous. Sellers should bring the new deed, keys, and paid receipts if work had to be completed as part of the contract. Be aware that it is customary for the closing agent to disburse monies after depositing collected funds and recording the deed at the appropriate Registry of Deeds. This means there could be a delay in disbursement after the actual closing. Again, keep in mind that even wired funds take some time. The bottom line is that if you’re well prepared, closing day will be exciting and stress-free! Call me if you want to work with a REALTOR® who will make your closings stress-free. 603-526-4116, donna@donnaforest.com, www.donnaforest.com
Known for service, trusted for results – Coldwell Banker Milestone Real Estate
- 88% of current homeowners report that owning a home has been a positive experience
- A homeowner’s net worth is 34 times that of a renter’s
- 95% of homeowners believe that over a period of several years, it makes more sense to own a home than to rent - you are paying for housing whether renting or owning
- 77% of homeowners say it helps them achieve long term financial goals
- Homeowners reported higher life satisfaction, higher self-esteem, happiness, and higher perceived control over their lives
- Homeowners have better health outcomes, better physical and psychological health and also have a general increase in a positive outlook to life
Home ownership makes sense for many social and family reasons. It also makes sense financially. Give me a call if you are ready to pursue the benefits of home ownership! Donna Forest 603-526-4116, www.donnaforest.com
Source: Realtor.org
You’ll be moving in the right direction with Coldwell Banker Milestone Real Estate.