Five Signs Of A Good Real Estate Agent

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Buying and selling a home is stressful and finding a good real estate agent is also stressful. You need an agent that will carry you through the buying and selling process. There are many real estate agents out there, and here are five signs to look for when choosing your real estate agent. 

 

  1. Honest

Honesty is vital in any relationship. If your agent makes a lot of promises and gives you endless affirmations, most likely, your agent is not being truthful. A good agent will not be afraid to be honest with you about your budget, what you can afford, and how to correctly price your home. Your real estate agent must tell you each property’s pros and cons and if it may be good in investment. An excellent real estate agent will not always tell you what you want to hear, and that is always a good thing. 

 

  1. Responsive and Available

Communication between you and your real estate agent is vital. An agent that doesn’t return your calls or emails or doesn’t guide you through the process can make things more stressful.  Knowing the best way to contact your agent will help you choose an agent. In addition, asking questions like what days they are off and the best way to contact them will help you set your expectations and boundaries between you and your agent. 

 

  1. Experienced

It pays to have experience. While everyone has to start somewhere, choosing an agent with years of experience will be very beneficial for you. An agent with experience knows how to negotiate and guides you through financing and inspections. The best way to learn how much experience an agent has is to ask how many times they have renewed their licenses. Asking this question will teach you how long they have been a real estate agent. It varies state by state, but the average real estate agent renews their licenses between two and three years. Agents renew their license regularly without gaps can leave you confident that the agents succeed in closing deals. 

 

  1. Strong Network

Working with a real estate agent with a strong network can benefit you. Having a solid network shows that your agent has taken the time to build and cultivate a network of associated professionals. The network that your agent has created will make your experience go smoothly as possible. A good agent will have connections with professionals that can help in different situations such as financing, insurance, inspections, construction, trades, zoning, and more. You should be able to turn to your agent with a problem, and they will be able to give you the best recommendations that you can trust. 

 

  1. Familiar with the Area

Technically any agent can help you buy or sell a home. However, it will help you more if your agent knows the area you want to buy or sell a home. They can tell you the pros and cons of a neighborhood; they can answer questions about property taxes, water rates, local schools, etc. Also, if you are moving to a new state, you want a real estate agent that knows where to find the best homes that fit your lifestyle. 

 

As a home buyer or seller, the real estate agent you select will make your experience pleasant or unbearable. Before choosing your agent, be sure your agent is honest, responsive, experienced, has a strong network, and is familiar with the area. These traits will help you get the best deals when it comes time to close on a home. For more real estate tips, go to www.nancyopensdoors.com. 

Pros and Cons of Owning a Home

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Pros and Cons of Owning a Home

 

There are many advantages to owning a home, but there are disadvantages. If you are thinking about becoming a homeowner, you must weigh the pros and cons. Buying a home is one of the most significant investments in your life. Use this pros and cons list to determine if you are ready to purchase a home. 

 

Pros:

 

  1. Investing and Building Equity

Buying a home is a long-term investment. Your home’s value increases as you build equity. So over time, your home will appreciate in value. In July 2020, the average home price index went up 5.5%, according to the Home Price Insight Report. Whether you decide to sell or retire and downsize, you will walk away with a profit. The capital made can qualify you for a capital gains exclusion when you sell your home. In addition, it will allow you to enjoy the income tax-free. Be sure to meet with an accountant if you are unsure if you qualify.  

 

  1. Privacy and Control

Can you say total control? Unlike renting, buying a home gives you control over your home. For example, determining where you purchase your home, you may not need permission from the HOA or landlord to renovate your home to fit your lifestyle. You will not only have control, but you will also have privacy. Whether having a gathering or just relaxing in your backyard, you will have the privacy you need to do so in peace. 

 

  1. Improve Credit

You must maintain regular mortgage payments to build credit. As a result, your credit score will decrease when you take out a loan. Your credit score will go down because, on paper, it shows you took out a sizable loan that you have to pay off. However, as you make payments regularly, it will increase your credit score. 

 

Cons:

  1. Taxes and Fees

Owning a home comes with taxes and fees that will have to be paid regularly. Fees include property tax, HOA fees, homeowners insurance, private mortgage insurance, and more. Property taxes help pay for local services like roads, fire departments, schools, etc. Usually, your lender will include this in the monthly payment to the escrow account. If you purchase a home that operates under a homeowners association (HOA), expect to pay HOA fees that help pay for community amenities. More taxes and fees will be added to the list of payments as you go through the home buying process.

 

  1. Upfront Cost

You would need a 20% down payment to become a homeowner in the past. However, you can qualify for a mortgage in today’s market with a 3% down payment. It may sound like a good deal to have a low down payment, but you will have a high monthly interest rate in return. Your mortgage insurance payments will be high as well.

 

  1. Less Flexibility

When you are making the switch from renting to buying consider getting a rent to own agreement. You should also prepare to live in your home for at least 5 years if you want to make capital from selling your home. Being a homeowner does not give you the flexibility to live in an area for short periods of time if you plan to make money on your investment. 

 

As a future home owner remember to do your research and weigh the pros and cons. By doing this you will determine if you are ready to purchase a home. Ask yourself if you are ready to settle down, can you afford the upfront cost, are you ready to improve your credit and are your ready to be in control of your home. For more helpful homeowner and realestate blogs go to www,nancyopensdoors.com.

 

5 Reasons Why You Should Save Money

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5 Reasons Why You Should Save Money

 

Saving money is essential because it helps protects you in the event of potential financial emergencies. Saving money allows you to build your wealth, reduce financial stress, get out of debt, buy a home, and create an emergency fund. 

 

  1. Build Wealth

To build wealth, you must prioritize accumulating wealth. Saving money is key to your financial success. Saving money helps you develop good financial habits and increases the cash reserves you can invest. You can use a bank account to start saving money. Choose a bank that offers interest, so your money earns money. In addition, investing some of your savings will help you build long-term wealth. 

 

  1. Reduce Financial Stress

Life, in general, is stressful, and adding financial stress does not make life easy. Saving money will reduce stress in your life and your wallet. When you relieve financial strain, you can stop worrying about paying bills on time if you lose income or an unexpected expense like an auto repair. 

 

  1. Get Out of Debt

Did you know saving money can get you out of debt? Ironic, I know, but it’s true. Credit cards never get paid off if you use them for every emergency you may have. So before you start paying off your credit cards, put money into a reserve fund. The reserve fund will take the place of your credit cards. Use the reserve fund as your emergency fund. 

 

  1. Buy a Home

Buy a home! Buying a home will force you to save money for a down payment. A down payment on a home will need to be at least 5% of the price of the house. The bank will then consider loaning you the rest of the money you need. There are more components to purchasing a home that requires you to save money. Remember saving money will open doors to owning your own home. 

 

  1. Emergency Fund

Life happens whether it is a family member passing away, a flooded home due to weather, or has a car accident. Having an emergency fund, also known as a reserve fund, will allow you to handle the situations and not stress too much about money. In addition, saving money will prepare you for potential emergencies.

 

Build wealth by investing and collecting interest when you save money in your bank. Reduce your financial stress by saving money. You will be able to take comfort in knowing you have a saving in case of a rainy day. Build a reserve fund to use for emergencies rather than using your credit card. If you continue to use credit cards for emergencies, you will never get out of debt. Purchasing a home forces you to save money. The money you have saved, the better off you will be. Remember, accidents happen, and we can never predict when an accident occurs. An emergency fund will prevent the stress of money in an emergency. For more helpful money-saving tips, go to www.nancyopensdoors.com. 

Five Key Points to Consider Before Investing

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Financial Fitness

Before you start saving money and putting it in an investment account check your finances. Doing a fitness check of your finances allows you to see what needs to be paid off before you start saving money. For example, it doesn’t make sense to invest your money if you haven’t paid off your credit card balances. You know you are ready to invest when your savings account totals up to be three to six months of living expenses, then you can start having fun with the stock market!

Risk Tolerance

Remember that different types of investments have different levels of risk. Having a savings account is a low risk but it also has a low rate of return. If you plan on diving into the mutual funds, know the risk level. Mutual funds spread the risk because multiple companies make up the mutual fund’s portfolio. If you plan on investing in individual companies, the risk is high, but you can be rewarded handsomely. At the end of the day, the risk will always be there. Choose the level of risk you can tolerate.

Goals

It is important to determine your goals before you start investing. Ask yourself why do I want to invest? How much do I plan on investing each month? What do I want my investment portfolio total to be at the end of one year, two years, even 10 years? Consider that your life does change and so will your goals. Your goals now will be different 10 years from now.

Diversification

Do you know the saying “don’t put all your eggs in one basket”? It applies to investment strategies. Do not put all your money in one investment. That one investment could tank and then what are you left with? Having a diverse portfolio allows you to have multiple sources on income.

Time and Knowledge

Take your time. Know what you are investing in. Learning about different investments takes time. If you do not have the time or patience, consider hiring a financial planner or adviser. Financial planners are paid on commission based on what you invest in. Remember, investing is a marathon so pace yourself.