Real Reasons Why We Buy A Home!

Real Reasons Why We Buy A Home!

What's better than starting a family, being safe & secure, and having total control/freedom? We would love to help you achieve these goals by assisting in the buying/selling of a home! Call/text 262-893-5555 or e-mail lisabear@remax.net or visit wihomes4sale.com! Hope to hear from you soon!

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Tired of wasting money on rent? Let’s get the parties started at YOUR place! Amber’s got you covered! TEXT or call me at 920.988.0048 or message me
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How to Make Offers That (Nearly) Guarantee You Can’t Lose

Wish you could make real estate offers that guaranteed you couldn’t lose?

One of the big challenges for real estate investors today is making good offers. There are lots of potential opportunities out there, but you don’t want to be making offers you’ll regret. You don’t want to miss good deals. You don’t want to overpay and lose money either. So how do you make winning offers?

I recently published a case study on my first experience buying investment property sight-unseen. It worked out for my partner and me. It wasn’t our plan, but it worked out because we made the right type of offer.

Know Your Market

The most important factor in making great offers is really knowing your market. That means knowing property values, knowing the rents, and knowing the costs to rehab a property in that specific area. This can help ensure you don’t offer too much. It can also make sure you don’t miss a good deal by offering too little. If you know the area better than the competition, you can sometimes offer more and land the winning bid. This may be because you know how much you can really rent it for, you may recognize if local trends are lifting up the neighborhood, and you might have a strong local contractor team that can get the job done for less than another investor.

Related: How (and Why) I Offer on Properties BEFORE I Ever Step Foot in the House

One mistake that many new investors make is just firing off a lot of low-ball offers. They often do this just based on the asking price — or sometimes based on really unreliable online comp tools. That’s crazy. If a property is overpriced by $150,000 and you offer $100,000 less than asking price, you still aren’t getting a good deal. If your comp tools are poor, then you might also be losing out on a great deal that was already underpriced. Many also overlook the fact that they are burning a lot of connections by sending offers that just insult agents and sellers. You tie up their time and are not taken seriously. Then when there is a deal you really want, they might not even look at it.

Low But Educated Offers

We always make educated offers based on the numbers. That still often looks like a low-ball offer on paper, but it is an educated offer. We can back up our offers with the math. We can even accompany our offers with reasonable justification for why it is the best deal for the seller and their agent. This is completely different than just blanketing the market with blind low-ball offers.

Related: 8 Tips to Put Your Real Estate Offer in the Best Light — And Get it Accepted

Generally, we’ll come up with our number based on the worst case scenario. That “guarantees” we can’t lose. If we don’t encounter the worst case, then we make even more money than planned. That’s usually what happens. For example, if we are buying an auction property and can’t get it inspected, then we’ll assume it is a complete gut rehab job. We’ll price that into our offer. If we can get in, we’ll run the numbers thoroughly and do a detailed scope of work. Sometimes there will be things you can’t inspect for some reason. You may see signs of a leak but can’t rip open the drywall to check out if it is old or fresh, or you may be unable to access one unit in a triplex. Or there could be a situation with an existing occupant or tenant who is being evicted. Always price for the worst case scenario.

Protect Your Interests

Contract contingencies are another way to protect yourself, too. Depending on how the property is being sold and what market you are in, you might not be able to get in all of the contingencies you want, but they can still be great negotiating points. This may include the number of days you have to inspect, title reports, appraisal reports, and even financing contingencies. Find out what is typical in your area and draft your offer in way that makes it likely to be accepted, but still protects your interests.

Amber Castonguay

Direct: 920.988.0048

Text: 920.988.0048

Fax: 866.211.2826

www.AmbersHomeFinder.com

http://ambercastonguay.blogspot.com/

RE/MAX Realty Center

357 W Wisconsin Ave

Oconomowoc, WI 53066

Office: 262-567-2455

Connect With Me

     

How much is your home worth?

Search all homes and request a FREE No obligation Market Analysis today!

 www.AmbersHomeFinder.com 920.988.0048

Search all homes and request a FREE No obligation Market Analysis today!

Amber Castonguay

Direct: 920-988-0048

Text: 920-988-0048

Fax: 866-211-2826

www.AmbersHomeFinder.com

http://ambercastonguay.blogspot.com/

RE/MAX Realty Center

357 W Wisconsin Ave

Oconomowoc, WI 53066

Office: 262-567-2455

Connect With Me

      

How much is your home worth?

The REAL Reasons Americans Buy a Home

We often talk about the financial reasons why buying a home makes sense. But often, the emotional reasons are the more powerful, or compelling reasons. The Joint Center for Housing Studies at Harvard University performs a study every year surveying participants for the reasons that American’s feel are most important in regards to homeownership.

The top 4 reasons to own a home cited by respondents were not financial.

1. It means having a good place to raise children & provide them with a good education

From the best neighborhoods to the best school districts, even those without children at the time of purchasing their home, may have this in the back of their mind as a major reason for choosing the location of the home that they purchase.

2. You have a physical structure where you & your family feel safe

It is no surprise that having a place to call home with all that means in comfort and security is the #2 reason.

3. It allows you to have more space for your family

Whether your family is expanding, or an older family member is moving in, having a home that fits your needs is a close third on the list.

4. It gives you control over what you do with your living space, like renovations and updates

Looking to actually try one of those complicated wall treatments that you saw on Pinterest? Want to finally adopt that puppy or kitten you’ve seen online 100 times? Who’s to say that you can’t in your own home?

The 5th reason on the list, is the #1 financial reason to buy a home as seen by respondents:

5. Owning a home is a good way to build up wealth that can be passed along to my family

Either way you are paying a mortgage. Why not lock in your housing expense now with an investment that will build equity that you can borrow against in the future?

Bottom Line

Whether you are a first time homebuyer or a move-up buyer who wants to start a new chapter in their life, now is a great time to reflect on the intangible factors that make a house a home.

by The KCM Crew on August 17, 2015 in First Time Homebuyers, For Buyers

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7 New Home Superstitions from Around the World

7 New Home Superstitions from Around the World

Moving to a new home? Here are a few traditions from around the world to bring luck and cast out bad energy. Here are a few.

1. Make a clean sweep
According to U.S. superstition, your old broom can carry all the negative energy from your former dwelling place to the new one. Leave it behind for a fresh start.

2. The door to success
According to old Irish tradition, the first time you leave your new home you should exit through the same door you entered to ensure good luck. After your initial departure you’re free to leave through whichever door you’d like.

3. Ward off evil (and stale smells)
Native Americans traditionally burn dried sage and wave the smoke around the corners of a room to clear out negative energy. If you’re allergic to ragweed, you might want to skip this one as sage is in the same family.

4. Let your pot overflow
Indian tradition holds that boiling milk and rice in a pot until it overflows helps bring purity and long life to the homeowners. Another Indian tradition is to bring a cow into your new home and wrap a flower garland around its neck – a bit more logistically challenging than the rice.

5. Set the tone
Tibetan moving rituals include ringing a “space-clearing’ bell in each room of a new home to clear away old, dying chi (life force energy).

6. Bread and salt
According to Jewish tradition, bread and salt should be the first items brought into a new home. The loaf of bread ensures that the homeowners never know hunger. The salt will bring a life that’s always full of flavor.

7. Lightning insurance?
The ancient Norse believed that putting an acorn on a windowsill protected the home from lightning strikes. Blind-pulls shaped like acorns remain popular today.

You don’t need magic tricks or superstitions to find the right home. An experienced agent can work wonders — find one here.

Understaning How Interest Rates Affect the Housing Market

Understanding How Interest Rates Affect the Housing Market

Posted: 08 Feb 2016 03:49 AM PST

Interest rates strongly affect the housing market as most real estate is purchased through borrowed money. The cost of borrowing money through mortgages is directly tied to interest rates. The main ways that money is borrowed through mortgages are fixed rate and adjustable rate mortgages.

Why and How do Interest Rates Affect Real Estate Values?
Higher interest rates cause the monthly payment needed for housing to increase. Since many individuals look to see what their monthly payment will be when making an asset purchase, less people will be able to afford a higher monthly payment, and the demand for housing will decrease. This decrease in demand will cause a decrease in housing market values as higher interest rates make real estate purchases less affordable.

Lower interest rates are thought to be indicative of a more efficient real estate market as they cause a reduction in borrowing costs. A reduction in borrowing costs will lead to an increase in housing market values. Another example of how efficiency can reduce cost is through property management software. Property management software has helped reduce the cost to manage real estate. If the cost to manage property is less, housing market values will rise because it is a less difficult to own the asset.

Another secondary factor that affects the housing market is that higher interest rates will cause a stronger United States dollar that will reduce the demand from foreign sources of real estate in the United States. This reduction in foreign demand will also cause a decrease in housing market values. Foreign demand for housing has been responsible for some of the high real estate price growth in coastal areas of the United States.

Current Thoughts on How Interest Rates Are Affecting the Housing Market?
Interest rates have been kept at historically low levels since the Housing Bubble of 2007-2009, many economists believe that asset values have been inflated by extremely low interest rates. Housing market values and stock market asset values have increased both by around 50% over the last seven years and many believe the cause is interest rates and leverage.

Interest rates are a very important factor in the value of assets in the housing market. Since the values of the housing market are tied to interest rates, interest rates are a crucial factor in determining how strong the real estate market is.

About the Author: Lizzie Weakley is a freelance writer from Columbus, Ohio

Now or Later

I can help you determine what makes the most sense for YOU! 

Contact us to help you get a plan in place to buy a house, whether now or next year! 

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Things Buyers Can Expect at an Open House

7 Things Buyers Can Expect at an Open House

Touring homes can be one of the better parts of the home buying process. For a brief moment you can envision your life in what might be your new home! Still, stepping into someone else’s home, especially during an open house, can be intimidating. Here’s what you can expect:

1. To be asked to sign in.
The agent will ask you to sign in with your contact information so he or she can follow up. Of course you are free to decline.

2. To remove your shoes.
After all, the homeowners has worked hard to make the place sparkle. Tracking dirt onto the carpet or hardwood destroys their effort.

3. (Not) to meet the seller.
Sellers working with an agent usually leave during open houses. This provides you the opportunity to explore free from the distraction of a hovering owner.

4. To scope out the competition.
The number of other people touring the home (and the amount of traffic throughout the day, which you can track on the sign-in sheet if you visit on the late side) can give you a good indication of the level of interest in the property.

5. To wait your turn.
If there are several groups during your visit, wait for them to leave a room before you enter. It’s a great chance to eavesdrop as they may ask the Realtor questions you hadn’t thought of, or comment on features you might not notice yourself.

6. To meet the neighbors.
Chances are, they’ll stop by for a peek. Ask them about the neighborhood. They’re the experts, after all.

7. To hold your tongue.
The Realtor will most likely ask you questions about your home search. Be savvy about what you reveal. Don’t give away any information that could compromise your bargaining power.

Not all homes on the market hold an open house. To expand your touring options, consider working with a buyer’s agent.

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The Best Christmas Present you can buy yourself -- comes with benefits! 

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Here are a few suggestions to help you find a place that makes everyone happy.

9 Tips For Compromising During Your Home Search

Everyone has their own unique vision of their dream home, which is why finding the “perfect” house for both you and your spouse can be difficult. Here are a few suggestions to help you work together to find a place that makes everyone happy.

1. Make a list.
Each person should sit down and make a list of the top ten or so features he or she wants in the next home.

2. Want or need?
Categorize each item on your list as a “want,” such as a magnificent view from the back deck, or a “need,” such as a home with a ranch layout to accommodate your achy knees.

3. Prioritize.
Arrange your lists from most important to least important features.

4. Discuss.
Discuss why each item is important to you so your partner understands your motivation and logic. Allow them the opportunity to do the same for their list.

5. Keep an open mind.
Don’t automatically eliminate properties with items you and your partner don’t agree on. One of you could change your mind after seeing a feature up close.

6. Ask your Realtor to mediate.
Your Realtor works for both parties, and therefore won’t play favorites. He or she can provide neutral advice on which features are a good fit for your budget, and which ones aren’t as great as they seem.

7. Calculate changes.
Sometimes, the features that a home lacks or needs changed won’t break the bank to address. Floors, closets, decks, countertops and sinks can all be upgraded for a cost that might be less painful than an argument.

8. Take a time out.
House hunting can be emotionally charged. If discussions get heated, take a break. Go for a walk or a coffee and agree to not discuss real estate until you return.

9. Keep the bigger issue in mind.
Whichever home you choose, you’re about to embark on a new adventure! Positive thinking goes a long way in the home search process.

Need a third party to help you and your spouse meet in the middle? Find a RE/MAX agent

Applying for a mortgage?

Applying for a mortgage? Make sure you can answer these 6 questions

Lenders will perform extensive research into your financial history before they approve you mortgage application. Prepare for your meeting with a loan officer by finding the answers to the following questions:

1. What is your credit score?
Not only should you know the score, you should take a look at the items on your record. Say you missed the final electric bill from your last apartment and it ended up in collections. You can call the agency and ask them to remove it from your report (they’re under no obligation to do so, but it’s worth a shot). It’s also important to check for instances of mistaken identity, especially if you have a common name. And never pay for your credit score: You’re legally entitled to a free report every 12 months.

2. What is your annual income?
Don’t forget to add in income earned through bonuses and investments. Track down your most recent W2s and tax returns for easy reference.

3. How much debt are you in?
Tally up all of those credit cards, car loans, student loans and other monthly payments. This will be important information to help you and the lender determine your debt-to-income ratio, a tool for figuring out how large of a mortgage is appropriate.

4. What are you worth?
Lenders will want to see documentation of your assets, including automobiles, investments and income properties. Did you recently receive an inheritance? Loan a family member money? Be ready to explain any large deposits or withdrawals.

5. How much can you put down?
All this financial reckoning will help you determine how much cash you’re able — and willing — to spend on a down payment. If family members plan to help, the lender will most likely require a letter from them.

6. How much house can you afford?
A general rule of thumb: Your monthly housing payment (principal, interest, taxes, insurance, HOA, etc.) should not take up more than 28 percent of your income before taxes. There are plenty of online calculators to help give you an idea of what your monthly mortgage payment will be.

An experienced Realtor can help you find a lender and prepare to apply for a mortgage. Find a RE/MAX agent

What has kept you from buying a home?

What has kept the others from buying a home?

Recent surveys have revealed that there are major misunderstandings as to what is required to get a mortgage in today’s lending environment. Many Americans believe you need at least a 780 FICO score and a 20% down payment.

In reality, neither is required.