A Wish List for a Dream Home

Your real estate agent may not be your fairy godmother, but they have powers to grant you many of your home buying wishes.

Your first step in finding your dream home? You must develop a strong image in your mind, and a sound list for your agent, of what you want of your dream home.

To make this process a little less daunting, consider these categories:

Location: It has been lauded for years as the most important factor when it comes to the saleability and pricing of home, and it's a good place to start when compiling your wish list. Do you want a short commute to work? Are you looking for a waterfront property? Do you want to be near family? Is there a particular neighborhood you want to make home? These are all important questions that will help your agent narrow their search for your dream home.

Neighborhood: If you are looking for a family home, then you need to research the local schools. Is there a particular school district you want to be in, or perhaps to stay in? Are you wanting a neighborhood within walking distance to shops and restaurants? Or perhaps you prefer something more quiet, or on a cul-de-sac.

Home Styles: Do you prefer large, open floorplans and Modern architecture? Or are you a fan of cozy and functional Country style plans? A Tudor style home is exemplified by tall, narrow windows with small panes and a reminiscence of Medieval looks. Or how about Victorian style homes, which feature elaborate details on the exterior and interior of the home?

Home Features: Not every buyer is seeking the same features. What is it that you desire most? Fireplaces, guest bathrooms, an open floor plan, formal dining, a media room, covered porches, a screened porch, a large finished garage, or a pool? The same concept goes for decorative features, including flooring preferences, crown molding, and exterior siding.

Condition: Are you on the lookout for a fixer-upper? Some buyers thrive on the challenge of restoring a former beauty to its original glory. Or are you the type that wishes for new construction, so you can put your own mark on the property? Also consider the idea of townhomes and condos, which can afford the homeowner even more freedom from maintenance.

Use these categories as a starting point for creating your own wish list. And then pass it on to your own fairy godmother! 


Written by Carla Hill
July 13, 2010 

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com

Final Walk-Through Tips

There will come a time during your home buying process when you'll need to do a final walk-through of the home before closing.

Around a week before you close, take the time to visit your "new" home again. When you're there, check to be sure that the terms of your contract have been met, and that the condition of the property has not changed significantly since talks began.

As your reference guide, be sure to bring your purchase contract with you for this walk-through. This will help you look for little details, without having to remember each item.

What are things you should be on the lookout for?

1. Major appliances: Be sure that any items that were to remain in the home are still there, and that they are in good working order.

2. Major systems: Do the air conditioning, heat, and plumbing still function?

3. Walls and floors: Has any damage occurred to the floors or walls during the sellers move? Were rugs, artwork, or carpets covering water damage that was not disclosed?

4. Repairs: As part of your purchase contract, the seller may have been required to make specific repairs. Be sure that these have been completed, or that the seller has a written timeline for when the repairs will be done.

5. Screens and Storm Windows: If it is the season for these items to be in storage, be sure they have been left behind and that they are in good shape.

6. Remotes: Garage doors, alarms, sound systems, and the like all use remotes, some of which can be very expensive. If any of these components were part of your agreement, be sure they have been kept with the house.

7. Cleanliness: The home should have been cleaned and all debris removed. You don't want to spend the first week living in your new home cleaning up other people's junk.

8. Landscaping: It may seem ridiculous, but yes, some sellers may try to run off with your shrubs and plants. Refer back to your contract to see what should have stayed. If plants were taken, let your agent handle the situation.

9. Fixtures: Light fixtures, curtains, and other items that were agreed upon should still be in the home. If they are not, let your agent address the conflict.

10. Exterior: Has there been any damage to the home since your inspection or first visit? If there have been storm with high winds or hail, be sure to visually inspect the exterior of the house for damage. Once you have signed on that dotted line, the house is yours. Hail damage and all.

Closing time can be very hectic. Be sure to make time for your final walk-through. It's a smart way to bring to completion a long, but joyous, process. 


Written by Carla Hill
July 27, 2010 

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com

Browsing For Housing Requires On-line, Off-line Smarts

Nearly nine out of 10 home buyers can't be wrong -- browsing for housing online puts listings at their fingertips, speeds the home-buying process, and comes with an educational bonus.

"More informed buyers, improve the transaction process," says Douglas de Jager, co-founder of DotHomes.com one of the newer online listing services on the block.

The California Association of Realtors (CAR) reports that 84 percent of home buyers use the internet as a significant part of the home buying process, according to its 2009 Survey of California Homebuyers.

"There is so much more information made available to us online, when you go to the actual home, it's just a validation process for what you've seen online," de Jager adds.

But transforming digital digs into a real home of your dreams isn't just aboutbandwidth and educational content.

Using the Internet to buy a home comes with the same prerequisite necessary for any buyer -- get financing locked down first.

Certainly, the Internet can help with financing too. There are numerous mortgage comparison sites, virtually every lender is online and finance and credit information portals abound.

A home buyer with an approved mortgage -- obtained online or off -- has a negotiating edge and the financial boundaries necessary to help keep focused on a home that's truly affordable.

Only then is it time to surf for shelter.

DotHomes.com, a listing site with Google-like search features, offers these tips to help you get the most out of your online home shopping experience.

• Leverage the broker. Brokers and real estate agents are the housing market's matchmakers. They use local expertise to connect buyers and sellers. They've honed online tools to help you research, browse and focus your online search. The tools put you in touch with all the information and resources the listing agent or broker has to offer -- broker blogs, emailed updates tailored to your search, market reports tailored to your market, how-tos and other information.

• Search in real-time. Get property listings and other information electronically "fed" to you via RSS (really simple syndication) feeds, email alerts and Web updates. Electronic updates are an adjunct to your own time spent online. Alerts keep you abreast of the newest listings and reduce your need to manually check the Web again and again for updates. That's especially true when you are on the go, say driving from open house to open house. Blackberries, iPhones and other smart phones keep you connected to your search.

• Search "fresh." Avoid fringe listing sites that don't update frequently and are far removed from the original online broker's listing. If you don't, you'll miss out on listing changes and updates like new pricing information, new photos, open house dates and the like. Web sites that don't link to the original listing, lock you away from updates. Nothing is more frustrating than to find online what you consider your dream home only to soon discover that the listing was sold, removed from the market or otherwise changed beyond your requirements -- but not removed from an Internet server.

• Refine your search. Don't get overwhelmed. With so many listings on the market, both traditional listings and distressed properties, quickly navigating them all is a chore. Use online tools and Web sites that allow you to refine your property search. If you are looking for a house on a particular street, search the street. If you need a pet friendly condo, ask. Whether you know exactly what you want or are just starting to figure it out, be specific with search terms like "new roof," "three-car garage," "established landscaping," "new kitchen appliances," etc. to find the property with the features you need.

Along with the well known national listing Web sites from trade groups, large private listing portals and real estate companies, the local multiple listing service's (MLS) public access portal are among the best places to search on line because they use standard formatting and strict guidelines about adding and removing listings in a timely manner.

• Screen home movies. A picture is worth a thousand words, but a video, a virtual open house, looks like a million bucks. Kodak moments can help you get a two-dimensional feel for a property, but virtual tours add a third dimension. Videos offer a much better sense of the proportions and the feel of a property. They can also play the starring role -- as a sort of 24-hour open house -- on a Web site or blog dedicated to the listing.

Here's another browsing for housing bonus: If you buy a home with its own Web site and virtual tour, you can ask the seller to gift the Web site or blog to you! 


Written by Broderick Perkins
March 18, 2010 Published on Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com

Mortgage Basics

Points, fees, and adjustable rates. If you are brand new to the home buying arena, then mortgage terminology can be as foreign as reading Greek.

The famous quote by Sir Francis Bacon rings true for all prospective buyers, "Knowledge is power." Use the following glossary of terms to help you raise your own awareness.

Underwriting: This lender process is used to determine how much of a risk you and your mortgage would be to their company. An underwriter will evaluate such things as your credit, available collateral, as well as your employment and current debts.

Points: Broken into two categories, discount and origination, this term refers to a fee paid when obtaining a mortgage.

• Discount -- These fees are tax deductible. You can assume to pay 1% of the total loan amount for each point. Paying points can reduce your final interest rate.

• Origination -- Less popular with buyers, as they offer no real benefit to the borrower, these points are fees paid to the lender or loan officer in exchange for their job of evaluating and processing your mortgage loan. These points are not tax deductible.

Fixed Rate: Your interest rate will remain the same throughout the life of the loan.

Adjustable Rate: Your interest rate is adjusted periodically. There also may be a penalty for paying off the loan before its maturation date.

Amortization: The decrease in the principle owed on a home, as it decreases over the life of the loan.

Down Payment: A portion of your total home cost that is paid up-front. It can result in a smaller monthly payment and a lower principle balance.

Good Faith Estimate: RESPA requires the lender to provide a borrower with an estimate of the fees that will be due at closing. They must provide this within three days of taking your application.

Escrow: Your funds are held in an escrow account by a third party until the closing of your transaction.

Refinancing: There may come a time during the life of your loan that you will wish to refinance. Perhaps you want to take advantage of lower interest rates or to consolidate debt. If you are eligible, in great credit standing, you may be able to do just that.

For more information the mortgage process, be sure to talk with a lender or your real estate agent. 


Written by Carla Hill
July 19, 2010 Published on Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com

Another Week of Record Low Mortgage Rates

Uncertainty in the global economy has kept mortgage rates at record lows for over a month. This week mortgage-backed securities prices, which drive mortgage rates their opposite, have again posted gains as investors continue to favor safer bets, helping mortgage rates.

30-year fixed mortgage rates remain at 4.25% for well-qualified consumers willing to pay 1 point origination. 15-year fixed mortgage rates are at 3.625%.

FHA mortgage rates mirror those of conforming mortgages for the most part. Today's FHA 30-year fixed-rate is solid at 4.25% with low risk of a sudden jump. A 30-year fixed FHA loan with an interest rate of 4.25% at 1 point origination will have a higher APR then that of an identical conforming mortgage because of MI and other FHA fees charged exclusively on FHA loans.

30-year fixed jumbo mortgage rates are all the way down to 5.125%, after being in the high 5's for most of the first half of 2010.

Wells Fargo is advertising a 30-year fixed-rate of 4.5% with an APR of 4.686 on their website, down from last week.

All rates mentioned in this article are verified by FreeRateUpdate.com who researches over 2 dozen wholesale lenders' rate sheets for brokers on a daily basis. 

Written by Ed Ferrara
July 21, 2010, Published on Realty Times

Thinking about Buying or Selling? 
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com

Mortgage Rates Stable This Week

Freddie Mac today released the results of its Primary Mortgage Market Survey® (PMMS®). 30-Year Mortgage Rates tied last week's record low.

News Facts

30-year fixed-rate mortgage (FRM) averaged 4.57 percent with an average 0.7 point for the week ending July 15, 2010, unchanged from last week when it averaged 4.57 percent. Last year at this time, the 30-year FRM averaged 5.14 percent. This rate ties the all-time low reached last week in Freddie Mac's 39-year survey.

* 15-year FRM this week averaged 4.06 percent with an average 0.7 point, down from last week when it averaged 4.07 percent. A year ago at this time, the 15-year FRM averaged 4.63 percent.
* 5-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) averaged 3.85 percent this week, with an average 0.7 point, up from last week when it averaged 3.75 percent. A year ago, the 5-year ARM averaged 4.83 percent.

* 1-year Treasury-indexed ARM averaged 3.74 percent this week with an average 0.7 point, down from last week when it averaged 3.75 percent. At this time last year, the 1-year ARM averaged 4.76 percent.

Frank Nothaft, Freddie Mac vice president and chief economist, reports, "Fixed-rate mortgages continued to hover at 50-year lows, thereby supporting homebuyer affordability and refinance activity. Over the past month, about four out of five conventional loan applications and more than one-half of FHA and VA loan applications were for refinance. Compared to the recent peak in 30-year fixed interest rates 13 months ago (week of June 11, 2009), current rates are a full percentage point lower. With today's rates, homebuyers would save about $1,500 in payments each year on a $200,000 loan compared to rates last June."

Article Published on Realty Times
July 16, 2010

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810
Or visit our website: www.LivingLakeTahoe.com

Top 10 Home Buying Mistakes

Buying a home is perhaps the most arduous, expensive and, ultimately, valuable acquisition you'll ever complete

Just one mistake could mean disaster -- perhaps the worst mistake you'll ever make.

In order to avoid titanic trip ups during such a trying transaction, RealEstate.comsuggests buyers get to know the most common home buying blunders.

To know them is to avoid them.

Going solo Buying a house is a complex transaction. It should be a team effort. You'll need a real estate agent, lender, inspector, insurer, perhaps a lawyer and other team members to help you through each step of the way. Team build beforeyou start the search.

Love at first sight If you believe in fairy tales you probably shouldn't be buying a home. You won't live happily ever after if you emote your way through the home buying process. Your home should fit your real needs, not your yen for drama. Buy a home that fits your budget and your lifestyle. Be sure the home is in a community and neighborhood you desire. Visit neighborhoods several times before you buy to check out schools, noise and traffic patterns.

'Loanless' shopping Being pre-qualified gives you a general idea of how much you can afford to borrow. It's better to be pre-approved for a given loan. Sellers will take you more seriously. You'll stay on budget.

Overbuying Home buyers buying more than they could truly afford, in part, led to the collapse of the housing market. Buy more than you can afford and your dream home will become the same nightmare. Analyze all your monthly costs including debts, food, transportation, entertainment, and savings. Your total monthly debts, including your mortgage, should not exceed 36 percent of your income before taxes. Don't forget to budget closing costs (often two to five percent of the home's purchase price), plus moving, redecorating and maintenance. Look ahead and allow for increases in ongoing expenses such as utilities and taxes.

Misplaced trust You are engaged in what's likely your most valuable acquisition ever. It's a business transaction. Ask family, friends, co-workers, professionals and others you trust for referrals, but don't take their word for it. Vet your team members.

Accepting oral agreements Get it in writing. The rate lock, the home inspection, disclosures, the contract. Always. Should a dispute arise, you've got the details documented.

Skipping the fine print Understand what's really in any document before picking up a pen. Get documents in advance, take time to read them and ask questions. Get copies of your mortgage and closing papers a few days ahead of closing.

Forgetting or betting on resale Avoid buying a home that costs 50 percent more than neighboring homes. Reconsider buying the most expensive home on the block. Neighbors' lower home values will weaken yours. Buy intending to flip your investment only to have the market fail means when it's time to sell your price may not cover your costs.

Making an unconditional offer Protect yourself with these contingencies:

• Mortgage financing. You may be preapproved but is the house? A formal appraisal confirms -- or not -- that there is sufficient value in the home to warrant the loan. If the house appraises lower than the sales price, the loan may be declined.

• Inspection. Never buy an existing or new home without a thorough home inspection. Walk through the home with the inspector to learn more about the house and any concerns he or she may have.

• Insurance. Confirm you can get adequate insurance coverage. In some areas, or following certain disasters, it can be difficult to get types of hazard insurance.

Written by Broderick Perkins

April 8, 2010 

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com

A Wish List for a Dream Home

Your real estate agent may not be your fairy godmother, but they have powers to grant you many of your home buying wishes.

Your first step in finding your dream home? You must develop a strong image in your mind, and a sound list for your agent, of what you want of your dream home.

To make this process a little less daunting, consider these categories:

Location: It has been lauded for years as the most important factor when it comes to the saleability and pricing of home, and it's a good place to start when compiling your wish list. Do you want a short commute to work? Are you looking for a waterfront property? Do you want to be near family? Is there a particular neighborhood you want to make home? These are all important questions that will help your agent narrow their search for your dream home.

Neighborhood: If you are looking for a family home, then you need to research the local schools. Is there a particular school district you want to be in, or perhaps to stay in? Are you wanting a neighborhood within walking distance to shops and restaurants? Or perhaps you prefer something more quiet, or on a cul-de-sac.

Home Styles: Do you prefer large, open floorplans and Modern architecture? Or are you a fan of cozy and functional Country style plans? A Tudor style home is exemplified by tall, narrow windows with small panes and a reminiscence of Medieval looks. Or how about Victorian style homes, which feature elaborate details on the exterior and interior of the home?

Home Features: Not every buyer is seeking the same features. What is it that you desire most? Fireplaces, guest bathrooms, an open floor plan, formal dining, a media room, covered porches, a screened porch, a large finished garage, or a pool? The same concept goes for decorative features, including flooring preferences, crown molding, and exterior siding.

Condition: Are you on the lookout for a fixer-upper? Some buyers thrive on the challenge of restoring a former beauty to its original glory. Or are you the type that wishes for new construction, so you can put your own mark on the property? Also consider the idea of townhomes and condos, which can afford the homeowner even more freedom from maintenance.

Use these categories as a starting point for creating your own wish list. And then pass it on to your own fairy godmother! 


Written by Carla Hill
July 13, 2010 Published on Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com

Going on a Financial Diet

Many Americans live on a margin, spending more than they earn, using credit to make up the difference, and saving at near invisible rates.

Living past their means, they use credit to buy houses, cars, and merchandise that many experts would suggest they really can't afford. This "good life" is great, until the person is no longer able to make their payments. And as unemployment rates hover over 9 percent (U.S. Bureau of Labor Statistics), more and more Americans are finding themselves in this predicament and subsequently facing bankruptcy, foreclosure, and even homelessness.

Journalist Laura Rowley, wrote for Yahoo! Personal Finance earlier this year, "Almost half of Americans reported having trouble keeping up with monthly expenses and bills, according to a 2009 survey on by FINRA Investor Education Foundation. Nearly one-quarter reported overdrawing their checking accounts."

Americans are saving at an alarmingly low rate. According to the Bureau of Economic Statistics (BEA), "Personal saving as a percentage of disposable personal income was 4.0 percent in May." This is up only 0.2 percent from the month earlier.

Are you one of the millions who need to put your debt on a diet?

It's a hot topic these days. So hot, in fact, that talk show giants, like Oprah Winfrey have featured series on how to reduce debt, increase your savings, and secure your own future.

This financial restructuring just might help you save your home one day. Take a moment to look over these tips.

1. Credit Cards: Financial expert Suze Orman said it best, "You must pay more than the minimum payment every month, as much more as you possibly can. If you owe a credit card company $5000 at 18 percent interest and all you do is pay the minimum each month it will take you over 30 years to pay it off." Call your card companies and try to negotiate a better rate, as well. Pay off the cards with the higher interest rates first.

2. Emergency Fund: In today's economy it is important to be prepared for long stretches of unemployment. Each household should have an emergency fund equal to eight months worth of bills. This means if your expenses for one month equal $3,000, you should have at least $24,000 in savings. Laura Rowley reports, "Only 49 percent of FINRA respondents reported that they had set aside funds sufficient to cover expenses for three months in case of sickness, job loss, economic downturn or other emergency."

3. Wants Versus Needs: The best way to start saving more, is to start spending less. In this country we have created of tradition of expecting bigger and better. It may be time to examine your lifestyle and to be realistic about what you can really afford. And that doesn't mean what payment you can afford, but what you can actually afford to buy.

4. Increase Your Income: There may be extra ways for you to have cash coming in, including selling off unneeded items. If your debts are large, you may consider taking on a second or part-time job. If you are a stay at home parent, perhaps you have skills that will allow you to work part time from your house, such as design work or even baby-sitting.

5. Plan for the future. Many Americans have no retirement savings. Consider changing your priorities from "plenty now" to "enough for the future." Exchange the morning Starbucks for savings bonds and IRAs.

Overall, it's about restructuring how you approach life. The saying, "Money can't buy you happiness," couldn't be more true. You may be surprised that exchanging weekend shopping trips and dinner out for family game nights and home-cooked meals may be a welcome change in your family. 

Written by Carla Hill
June 29, 2010 Published on Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.co

Should You Move Up?

You have another baby on the way. Your aging parents have decided to move in. You are starting your own home-based business. There is an endless supply of reasons why a family may need to move up to a bigger, or nicer, home.

How do you know, though, that now is a good time to move up? Let's examine a few issues that will lead you to your answer.

Interest Rates. There is a huge difference between buying a home at 5 percent interest (June 2010), and buying one at, say, 13 percent interest (February 1983). The available rates can change from week to week, and how you qualify depends largely on your credit rating. The first order of business when considering interest rates is to contact a local mortgage lender to find out what rates would be available to you on what loans. Keep in mind rates also vary depending on the type of loan for which you are applying (fixed, adjustable, conforming, jumbo, 30 year, 15 year, etc.).

Income. Moving up to a bigger or nicer house will more than likely mean a bigger mortgage payment. Take an honest look at your budget to see if this makes sense for your family.

Equity. This is one way to avoid a bigger mortgage payment. If you have built substantial equity in your current home, and are selling in a good sellers market where you expect to receive around your asking price, then you could apply your profits from the sale of your current home towards your new mortgage.

Market Conditions. To find out your own local market conditions, contact your local real estate agent, or visit Realty Times. Is your market favoring buyers or sellers? Are homes selling quickly? Are prices appreciating or falling? These are all important questions to answer.

Wish list. Many first homes are starter homes, and as families grow, needs change. Neighborhoods changes as well, as residents age and jobs come and go. Take a moment to consider what area of town would be best for your family. Think about schools, commute times, and neighborhood amenities.

Use these simple issues as a starting point on your journey to a new home. 

Written by Carla Hill
June 10, 2010, Published on Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com

Rules Change for Getting Home Loans

The Mortgage Bankers Association reported recently that mortgage applications decreased according to their weekly survey (ending 6/18/10). However, some banks are hiring mortgage lenders—a sign that banks are optimistic that requests for housing loans will increase.

J.P. Morgan Chase is planning to hire 1,200 loan officers, according to CNNMoney.com. Christine Holevas, a spokesperson for the bank said, "We may not be inundated with applications tomorrow, but we are confident the need will be there." Despite any slight downturns, expected increases in the mortgage business are estimated to go from $725 billion in 2010 to $916 billion by 2013, according to the Mortgage Bankers Association.

If you're looking to get a home loan here are a few things you should consider. If you're self-employed the rules have changed considerably and not just for mortgages but also personal loans too. Some lending institutions are now requiring self-employed borrowers to provide documentation from assets to income and the documented income is then checked with IRS records. "It used to be nobody checked your IRS records," says one source in the mortgage industry who agreed to be interviewed about the inside changes but could not be named.

Another big change has to do with what borrowers may have done in the past. "When Fannie Mae and Freddie Mac discover loans where the borrowers misrepresented their income, the agencies are requiring the lenders to repurchase the loan from Fannie Mae and Freddie Mac. In turn the lenders then have the option to go after the borrowers in the form of foreclosure—even if the loan is not delinquent," says the source. There's no statute of limitation for fraud. The source says, normally, if the loan is current, they won't pursue the borrower. One major lending institution hired a company to go through all its stated-income loans looking to see if there was fraud. "At first they started with all the delinquent loans and then they moved into performing loans. Then they started requiring lenders to buy back all these loans which put lenders out of business. That closed down some shops," the industry expert told me.

The problem that many self-employed borrowers have today is that they need to be able to show that their business is legitimate in order to get the loan. The typical documentation includes, but is not limited to, a Web site, CPA letter, 411 listing, and business license. And if you're not self-employed, the rules for loans are tight as well—bigger down payments and better documentation are a must. While some lenders will allow as little as 5 percent down, most are looking for more than that. Everything you submit to a lender is now being double-checked.

Doing your part to make sure that your finances are in order prior to applying for a loan ensures a smoother process. Here are just a few helpful tips:

1. Make no major purchases such as a car prior to applying for a loan

2. Have complete documentation of your income

3. Check and clean up your credit before attempting to borrow

4. Reduce the number of outstanding credit options: close unused credit cards

5. Remain current on all your loans

Written by Phoebe Chongchua
July 2, 2010  Published on Realty Times

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com

Choosing the Best Home

After weeks of searching for your next home, you now have it narrowed down to two great options. One offers a shorter commute, but the other offers more square footage for your growing family. How can you make the best choice?

There are several strategies you can employ in your decision making process. Above all, be confident in your decision making abilities. "The fear of making serious decisions is a new kind of fear, called decidophobia," proclaimed by Walter Kaufmann at Princeton University in 1973. Worry and procrastination do nothing to aid the process, so buyers, be confident that you will make a sound choice.

Pro/Con list: In this case, you are deciding between two houses as your prospective home. For each house, divide a sheet of paper into two columns: pro and con. Be realistic about what the positive and negative factors would be for each purchase. Considerations could include: price, location, schools, repairs, square footage, floorplans, street noise, neighborhood value, comparables, and gut intuition.

Brainstorm scenarios: Chances are, whatever house you decided upon will be your residence for many years to come. Try and think ahead to situations that may arise in the future, and how each residence would affect those situations. Do you have aging parents that could move in? If so, then which house provides the best floorplan for this? Planning on having children? Check out ratings on local schools.

Do the math: Business executives might call this the "cost/benefit analysis." Buying a home is a huge financial decision, and while personal preferences (e.g. location, schools, square footage) all come into play in homebuying, many purchases are based on what makes the best financial sense. Discuss numbers and neighborhood comparables with your real estate agent. One home may be a smaller dollar amount, but the other may be a better deal in the long run. Some neighborhoods are up and coming, while others have come and gone. Are either homes overpriced or underpriced for their neighborhoods? Do either homes need repairs or updates?

Priorities list: Yes, you know you want the pool, landscaping, granite counters, close proximity to work, extra bath, and the list goes on. But when push comes to shove, and it might, what items are your priority, really? For some, driving a longer commute is worth having a larger house or a cheaper price. For other buyers, the exact opposite can be true.

Change perspectives: Sometimes you simply must step out of your own shoes to see a situation clearly. There are many different ways to approach this decision. You can look at it from an emotional point of view (which home do you love), an intuitive view (what does your gut tell you), and even a devil's advocate view (what if). Experts consider this the "Six Thinking Hats," introduced by Edward de Bono in a book of the same title, where you put on six different hats during a decision making process. Try and see the buying process from the perspective of your spouse, your children, friends, and even your worst enemy.

Finally, be realistic in your own abilities. While the final decision rests on your capable shoulders, you should rely on the professionals that are by your side. This includes your agent, lender, attorney, and even your family. And while you are the final say, remember that you have a team to help give you information to fuel that sound decision. 


Written by Carla Hill
June 24, 2010 

Thinking about Buying or Selling?
Call Alvin's Team Today! 877-651-7810 
Or visit our website: www.LivingLakeTahoe.com