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1. Good Investment

Renters receive no return on what they pay out in monthly rent – it’s virtually money out the window. Even though renters are paying for living space, committing to a home purchase and monthly mortgage creates much more potential for a return on the investment. As you pay your mortgage each month, you are building equity and increasing your net worth. Equity is the value of the property that you own or what you have paid off each month. A home’s equity is also combined with the amount of appreciation, or amount that your home has increased in value over time.

Building up your home’s equity also opens the door to mortgage refinancing and home equity loans. Homeowners then have more financial flexibility towards financing large expenses such as remodeling, college tuition or debt consolidation. Of course it’s always possible that the value of your property will go down and not up, as many homeowners throughout the country have experienced over the past few years. Still, if you look at the value of real estate over the long term it has gone up over time. Like any investment buying a home involves risk – research the real estate market in your area to help you make a decision that feels right for you.

2. Tax Benefits

As you diligently pay your monthly mortgage, your tax advantage increases over the years. When you are paying for your own home you have the ability make a deduction on your federal income tax return for what you have paid towards the interest on the mortgage and property taxes. Some states also make allowances for additional deductions. It pays to check with your accountant or tax advisor in regard to your allowable state deductions.

3. Financial Control

Paying for a home of your own prevents you from being subjected to surprise rent increases, especially if you have chosen a fixed rate mortgage. It also removes the stress of lease renewal. For many, becoming a homeowner is a solution for beating the high cost of retirement. It is entirely possible to pay off your home and live out your retirement years rent-free! Of course, as long as you own the home you will be responsible for the property taxes and insurance costs.

4. Freedom

Let’s face it, renting is fine for many, however, there usually comes a time when you want to call the shots and be in control of your personal space. Most rental situations dictate everything from paint colors to pets to window treatments. Forget about remodeling or making home improvements, and why would you want to invest time and money in to a place that is not even yours? As a homeowner you can also resolve issues on your own, such as home repair and maintenance. Owning a home of your own allows for personal expression and control.

5. Pride of Ownership

There is a great deal of satisfaction that comes from buying a house. It is an experience that provides independence and privacy. Because it is typically the largest single investment that most of us will ever make, it remains an achievement to be proud of.

Lisa Andree is a marketing professional who helps mortgage companies promote their brands and products such as a 20 year mortgage and jumbo loans online.

Article Source: http://EzineArticles.com/?expert=Lisa_Andree

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1. Consider doing without your own Realtor.

Doing the research yourself can save you 3% of the total price of your new home if you can do without your own Realtor. Each Realtor involved is paid 3% of the sale price at closing by the seller. The seller passes this cost onto you (the buyer) in the total price of the home. I was able to negotiate the seller down an extra 3% because I didn’t have a Realtor. 3% of my new home was a savings of about $4800! The catch is that I had to do all of my own research. I checked out school districts, neighborhoods, flood zones, etc. I had to find my own comps and determine the average price per square foot in each neighborhood that I was considering. I had to make every phone call to have the seller’s Realtor meet me at each house. It was a lot of work, but definitely worth saving $4800.

2. Consider a hybrid loan

The most common loans that I see are 30 year fixed loans. This means that your monthly payment never changes for 30 years. Another option is the adjustable rate loan which means your monthly payment will change yearly based on current interest rates. Younger home owners on a budget seem to stay away from adjustable rate loans because the monthly rate could potentially become higher than they could afford. Adjustable rate loans start cheaper than fixed loans, but could adjust higher. Risk is involved. I chose the middle ground called a hybrid loan in the form of a 5/1 loan. This means that my loan is fixed for 5 years, and then adjusts every 1 year based on current rates. My rate turned out to be 2.625% for the first 5 years, and after those 5 years, it can increase a maximum of 1% per year. It is also capped at 8.625%. I also asked about the current 30 year fixed rate which was 4.4% if I had chosen that. This means that a 5/1 hybrid loan is cheaper for at least the next 7 years in my case. If I move in the next 10 years, the hybrid loan will have saved me money. Can you guess how many years the average person stays in a home? It’s approximately 7. I love my new home, but I doubt I will be living in the same place 7 years from now, much less 10. Too much can change in 7 years. I may have octuplets in the next 10 years and need a bigger house. I hope not, but who knows what the future has in store for me. When it comes time to get a home loan, evaluate how long you believe you will keep that home. What are the odds you won’t need a bigger home or need to relocate for work in the next 10 years? There are also 7/1 hybrid loans available.

3. Shop for a cheap interest rate

I eventually went with the 2nd of 3 banks that I visited. I wanted a company/loan officer that was efficient, knowledgeable, and cheap. Make sure to speak with at least 2 banks to compare.

4. Don’t buy a home you can’t afford

I purchased my first home before marriage, and I was pre-approved for a crazy amount of money. I almost couldn’t believe it. I was pre-approved for a home that would cost 79% of my take-home pay. That would leave 21% of my salary to survive each month. SCARY! I ended up purchasing a home that was approximately 38% of my take-home pay each month which I still consider on the high end if I hadn’t gotten married. Dual income now makes the payments even easier.

5. Consider buying the cheapest home in the neighborhood

I purchased what is probably the cheapest and smallest home in my neighborhood. By doing so, I was able to purchase a home in the nicest neighborhood I could afford. Another benefit is that every house in the neighborhood is selling for more money. When I eventually put my home on the market, I will offer comps of other houses in the neighborhood – all of which are more expensive than mine. Therefore my home has a better chance of appreciating in value. The most expensive house in the neighborhood has no comp homes in the neighborhood to demonstrate its worth and likely will not appreciate as well as the cheaper homes.

6. Don’t get emotionally attached to a home before its yours

Getting emotional in the home buying business can cost you a lot of money. The first home I wanted to purchase was listed at $170k, only 4 years old, and was about 1900 square feet. It was beautiful, but overpriced. I put in an offer for $151k. It was a slightly lowball offer, but its a buyer’s market and the house was overpriced. The seller countered at $169k so I walked away. Had I been emotionally attached to the home I might have paid $169k for my dream home. That house is still on the market 6 months later. I ended up paying $156k for a home that is 8 years old with 2200 square feet. It was originally priced at $180k. My home is cheaper, bigger, and actually nicer than the first home I attempted to purchase. Walk away if you don’t get the right price. Don’t settle.

7. Don’t worry about insulting the seller with a low offer

The market is VERY much a buyer’s market. Offer less than a fair price and see how cheap you can get your new home. If the seller does become insulted, walk away. There are PLENTY of great homes on the market. You will find what is meant to be.

8. Have an attorney look at everything before closing.

Before I went to closing, my attorney found $2500 worth of fees/costs that were inappropriately placed in the closing contract. He was definitely worth the price I paid. When you are spending thousands and thousands of dollars on a house, it can’t hurt to have an attorney look over everything.

Jared Heathman MD
http://www.RichAsChocolate.com
I am a physician, private pilot, and ordained minister. I’m constantly learning and giving back to the community. Follow me and learn about personal finance at my website!

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Costs and location

The contract should include the entire costs of the project. Be wary if entering into a ‘costs-plus’ contract as this does not give you the finished costs of the project but rather costs are calculated as the building happens, like a running tab. Make sure you get good advice regarding this as you may find that building costs exceed your budget. The contract needs to include a time frame and an expected completion date. You also need to be aware of what the payment terms are. The contract needs to include details of the location, such as the address and also a description of the job site. There should also be information about the residential area that you are building in.

Rights and insurance

The rights of all parties need to be clearly stated within the contract. You should know what access you have to the building site and what the inspection procedures are. Insurance must be taken out during the building process to protect both your property, the building materials from any possible theft and the builders themselves from any injury. You need to be covered for any accidents or problems that may occur during or after the building of your home. It is also important to include a section in the contract regarding conflict resolution, what the procedures are and how to handle any disputes.

Dates

The start and finish dates of the project need to be included, as well as estimates of when different parts of the building process will occur. It should state what is an excusable delay and the builder should inform the buyer of how many days of work were interrupted and for what reason, for example, poor weather. The contract should include any penalties, if any, for failure to complete the project within the stated time frame.

Plans

Any drawings, plans or sketches should be included in the contract. These should be clearly marked as to what is included and what the procedure is if the buyer wishes to make any changes. It should be made clear to the buyer before building commences if they will incur any extra cost if the plans need to be changed in any way.

Documents

Any documents from either the state or local governments regarding the building should be attached to the building contract, which will include the building permits. The building contract needs to be signed by all parties, and each page initialed. It will then become a legally binding document.

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First and foremost, lay out your expectations. How much do you want to sell your house for? How soon do you need your house to be sold? You can base your next move on your answers to these questions. Of course, the answers aren’t exactly easy to find.

For one thing, the value of houses can go up and down depending on real estate trends in the area. The recent economic recession has sent the real estate market into a tumult. Thankfully, information is now widely available through the Internet. You can do your own research on the real estate trends in Scotts Valley and decide whether or not it’s really worth it to sell your home. The best option, of course, is to get a Real Estate Agent. Make sure that the agent is licensed in your area. It’s also best if you can ask around about the agent’s reputation so that you can be sure that he really will be worth your while.

Of course, you can collaborate with this agent about any improvements you can make that won’t be too costly but will greatly aid in increasing your home’s value. Doing repairs around the house is a must. Make sure that the roof and the ceiling is properly secure and that there are no leeks. You also need to ensure that the fixtures are in working order. You’ll be surprised at how much potential buyers are turned off by the little problems such as broken door knobs or cabinet handles. Similarly, paint can do wonders for your home. A fresh coat of paint can really increase the value of the house since it will give a fresher, newer feel. A properly maintained lawn can also impress buyers a lot. You can also hire a home stager in order to amplify your home’s value.

When you’re done on home improvements, focus on the neighborhood’s strengths. Scotts Valley is a very peaceful town, so you can emphasize that to the potential buyer. You alone have a more personal idea about the neighborhood’s characteristics, so you can share this with any potential buyer so that they can better visualize their lives in that neighborhood.

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For those looking for marketing tools for realtors (R) and real estate agents, the “best practices” of multi-million dollar agents includes several “pillars”, or sources of leads, and refinement to the three key points of client contact. These three key points of client contact are initial real estate lead production, point of sale (listing presentations and buyer representation processing), and post-sale referral generation.

One common mistake agents make is choosing either a “consumer direct marketing” approach, or a “referral only” approach. This is a mistake simply because to achieve top performance, you’ll need both. Fortunately, when done well, this does not need to be expensive. A referral-only real estate marketing plan is based around actively cultivating (farming) a group (farm) of referral sources. For most systems, this is based around systems of consistent contact to ensure presence of mind and respect by potential referrers, usually via handwritten low-tech stamped notes, monthly phone calls to people who have agreed to refer you when they hear of people who want to buy or sell, occasional client parties, and occasional pop-by’s to see someone in person a few times per year. These systems are carefully designed to look casual, but when combined with real estate newsletters and tools, will cause your farm to both like you personally and respect you professionally. Imagine getting 2-3 referrals per month from a financial planner, another 2-3 from a tax professional, another 1-2 from your grandmother, etc. and you really have a solid base of business. Closing ratios on referrals are always much higher from referral marketing, and the cost-per-lead is lower.

So why not use just that?

Because you may not have 1,800 people who like you and will refer you, and even if you did, there are surely some people buying or selling in your area who would like to work with you.

But they don’t know you.

It’s up to your consumer direct marketing to change that. While bus stop ads can help neighborhood visibility, who honestly calls a realtor because they saw a bus stop ad? Print ads and bus stop ads these days should be used only after you have completely dominated the real estate internet marketing in your area.

How do you dominate an area? Message and delivery. These days, delivery happens via internet for over 90% of buyers, and virtually all sellers who research agents online before selecting which agent to sign with. While the internet is a large space, you can dominate page 1 of Google using our free report on search engine optimization (SEO), and dominate other areas through pay-per-click (PPC), social media marketing (facebook, myspace, twitter, etc.) and trafficked verticals like craigslist. Our company focuses on creation of incredible, compelling offers so you don’t have to, though you can certainly create your own.

Here are a few suggested pillars to consider:

Expired Listings & Withdrawn Listings. These are the easiest “cold leads” you’ll find. If you decide not to purchase ours, you can certainly create your own. The #1 mistake people make in expired listing marketing is expecting immediate conversion. Usually sellers get flooded with offers immediately, but relisting activity peaks at 6 to 8 weeks after expiration or withdrawal. Pair up with a mortgage lender to reduce the cost, as this can produce refinances and loan modifications.

- FSBO’s. A strong FSBO pillar alone can get you 1-3 listings per month in an average area. For this you’ll need a real estate postcard marketing system or fsbo postcard system. Click through to our site below for some free templates and help on this.

- Homebuyers. The #1 most common mistake in real estate marketing for homebuyers is offering a home-buyer’s seminar. Try “fishing upstream” by instead offering a “credit seminar” or at least adding that to your marketing. We have an online system for this, that if you choose not to buy you can certainly model on. Be sure to “market to the unaware”, i.e. people who haven’t yet decided to buy a house, because chances are if they know for sure they want to buy a house, they probably know an agent. Be the agent (or broker) to plant this seed and most likely you’ll get the business, instead of their “dog’s former owner’s cousin who practices real estate on the side”.

- Investors. A lot of agents ignore this market, but a single good investor client can get you numerous deals per year, both buying and selling. If you’re just out of real estate school starting out, don’t start here – they’ll eat you for lunch and suck up your time, but if you have the other pillars down cold, this can put you into the big leagues, with millions of dollars in commissions.

- Relocation. This can be a tough market to crack, but that barrier to entry can work for you once you do. This is not for the rookies, but for experienced agents with top-notch customer service and the first pillars down, this should be on your real estate marketing plan. Maximize your real estate internet marketing to start working on this business, and use a lot of online video such (again, see our site for examples to model on or purchase).

- HR Benefits. Human Resources real estate marketing for Realtors and lenders can be an excellent source of business. This is a perfect agenda for a mid-career agent.

If all of this sounds good, first, see what you can swipe and implement. Don’t re-invent the wheel, because everything you need for all of the above pillars have been produced. Focus your time and budget, and setup the systems starting with the pillars above. As you get them stabilized, within a month, you should not spend any time whatsoever on production of these leads. Just setup the system, then leave your pay-per-click budget alone and just keep an eye on profitability, and hire offshore e-assistants for other tasks like craigslist marketing. Roll the pillars out, and within six months, there is absolutely no reason why you won’t be the #1 agent in your area, with the #1 paycheck. The tools are built and ready to work for you.

Roger Vetruba

http://www.articlesbase.com/real-estate-articles/real-estate-marketing-plan-736787.html

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