Selling A Home

Buying A Home

Spot The Five Differences

http://www.addictinggames.com/fivedifferences.html?r=u

What Bills Should Be Paid First

To many times do we pay the unimportant bills first and pay the ones that are important last or not at all. (speaking from experience)

It has taken me a few years to realize that my cable bill should not be a priority on my list of things to be paid because I do not want to miss a show. We all do it and than will get upset with ourselves and later realize what we should have paid the mortgage or credit cards first.

I felt that these five things are the most important what we should do time you get paid.

1. Mortgage: This is especially true if you own a home. Your mortgage payment should be at the top of the food chain. Your home provides shelter, it is one of your greatest assets, and it is a great mark to have on-time mortgage payment history on your credit report. Above all, make sure you are making those payments. It wouldn’t make sense to go into default because that cell phone bill you just paid required your mortgage to be paid late. Your housing expenses should also include any insurance, which may be part of your mortgage payment anyway. If not, it should be a top priority as well.

2. Taxes: I’m not just talking about Uncle Sam, but this includes property taxes as well. If you are employed, chances are you are already paying taxes on a regular basis, but if you are under-withholding you could be faced with a steep tax bill at the end of the year. Your best bet is to have the right amount taken out of each pay check, but if that isn’t possible or you find yourself owing taxes, don’t delay in filing or paying. The same thing goes for property taxes. Failure to pay can put a lien on your home.
The penalties are stiff, and the IRS has no problem garnishing your wages or taking property to get their money. The good news, at least with the IRS is that they do have options available to assist when you can’t pay your taxes. Using an installment plan or reaching an agreement with them should be a last resort, but they are options

3. Car notes: The next item in line, especially if you require it to get to work every day, is your auto loan payments. Again, this is a secured loan, which means if you fail to make payments on time, not only can it affect your credit, but they can recover the property. Losing your primary means of transportation could cost you your job if you don’t have an alternative. Without a job, you’ll never be able to pay the bills. If being unable to pay your bills is a recurring theme, this is one of the first places to look at cutting costs by finding a cheaper vehicle. Auto insurance should be lumped in with any loan payments and considered just as important.

4. Credit Cards: Once you have secured your essential payments for your housing, tax obligations and transportation, you can begin looking at paying those credit card bills. Obviously, you want to stay current with these so you can keep your credit report clean, interest rates low, and avoid late fees. Don’t jeopardize your home or other things listed above just to try and avoid a late fee or negative mark on your credit score.

If you do have money left over to put toward credit card bills, pay at least the minimum. If it takes minimum payments on 4 different cards just to make all of the payments, then do that. It is better to only pay the minimum and keep the account current than to try and pay more and end up short on another card and have a late fee tacked on.

If you don’t even have enough money to make the minimum payments on all of the cards, you have to prioritize. First, realize that if you can’t make the payments, you’re going to be late and there are consequences. The best you can do is try and limit the negative impact. First, check to see if there are any grace periods on any of your cards. You may be able to squeeze a few extra days until payday and still avoid a late payment. If that is of no use, you’re probably going to want to look at the card with the highest balance.

Finally, remember that late payments typically aren’t reported to credit bureaus until they are over 30 days past due. You may still have a late fee or a change in interest rates, but if you’re a few weeks late you’ll probably still keep that credit report free of a late payment mark. And, if it is your first late payment with that issuer, a phone call may actually get the fee removed or the rate dropped back down. Unfortunately, if you make this a habit, don’t expect any relief.

5. Utilites: You may think that keeping the lights on would be a top priority, but in reality you have the most latitude in making payments compared to the rest of the things on this list. First, many utilities are optional and aren’t a necessity to life. Things like the cable and telephone are good examples. If you fail to make your cable payment, they shut it off and possibly report it to the credit bureaus. Losing cable is better than losing a home or having your wages garnished.
When it comes to the more important utilities, such as electricity, sewer, water, or gas, you will want to try and make these payments, but doing so late might not be as bad as being late on a credit card. Most electric or gas companies have very low late fees, and in some cases it may just be a couple dollars. On top of that, it generally takes an extended period of being late before service is actually shut off. The best thing to do if you find you are unable to pay the electric or gas is to call your provider and explain the hardship. Most offer assistance or special payment plans for those in financial need.

When it comes to something such as sewer, you may actually have to place more importance on that bill. In some places, being late on your sewer bill could eventually result in a lien on your property, so be sure to check and see if that applies. But with most utilities you’ll pay lower late fees than you would on a credit card and they are much more flexible when it comes to being unable to make payments, so most utilities should be one of the last items to pay.

Final Thoughts

As always, you should be trying to make all of your payments on time and in full, and this shouldn’t imply that it is good practice to make late payments, but the reality is that there are times when that just isn’t possible and you have to make the best of it. Also, keep in mind that these are just general guidelines. If your situation involves alimony or child support payments or such, these could take priority given the legal implications, so you have to analyze your situation carefully.

In the end, if being unable to pay your bills is becoming a regular habit, it is time to sit down and think about why this is and make some changes. The occasional emergency happens, but when it happens every month and every year, you need to really take a look at your situation to get out of that rut.

Home Buying Basics

Buyers this is a short video from DIY (Do It Yourself Network) just showing you what to do before and during the buying process.

http://wms.scripps.com/library/DIY_Network/64084.wmv?site=hgtv&source=DIY

A Slow Market

Realtors, Builders and Investors please watch this informational video about keeping your business flowing even in a slow market.

http://wms.scripps.com/library/HGTV_Pro/64249.wmv?site=hgtv&source=HGTV

Motivated Sellers

Real Estate Confidential
Episode FLREC - 102L


AIR TIMES:
•October 23, 2007 10:30 PM EST
•October 24, 2007 1:30 AM EST
•November 12, 2007 10:00 PM EST
•November 13, 2007 1:00 AM EST
•November 14, 2007 10:30 PM EST
•November 15, 2007 1:30 AM EST
•November 18, 2007 9:00 PM EST

Connie De Groot: Hard Sells in Beverly Hills
"Coldwell Banker real estate agent Connie De Groot specializes in hard-to-sell properties. But never in a million years could she have imagined the challenge she'd be asked to take on next!

On the outside, Ron and Joanie's beautifully remodeled Spanish-style house is a buyer's dream, tucked away in a Beverly Hills canyon. But once you walk through the front door, you've entered their custom-created enchanted forest. The couple commissioned artists to cover the walls with murals, then they transformed the central fireplace into a life-sized, looking-glass tree sculpture.

Connie must tread lightly on the sellers' feelings, while insisting they transform the house back to one that a less "creative" person might consider buying. "

Click below to watch the clip:
http://wms.scripps.com/library/Fine_Living/74428.wmv?site=hgtv&source=Fine

When Your Finances Are Taking Over Your Life

Bankruptcy

Credit counseling should be the first step taken when a person encounters significant financial difficulties. Provisions adopted as a part the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 require consumers facing serious financial problems and possible bankruptcy to obtain credit counseling from a credit counseling agency approved by the U.S. Trustee Program within a 180-day period before they apply for bankruptcy.
The law also requires that the individual applying for bankruptcy attend a personal financial instruction course. The course is taken after an individual applies for bankruptcy and as a condition of receiving a debt discharge.

If financial problems occur, call the mortgage lender or servicer. Lenders want to keep owners in their homes and in many cases will help them set up payment plans. Filing for bankruptcy should be done only if no other options are available. Bankruptcy, however, cannot necessarily stop a lender from foreclosing on a home if payments aren't made.

How Bankruptcy Works

The two types of bankruptcy have legal names:
Chapter 13 Bankruptcy and Chapter 7 Bankruptcy. In each, the bankruptcy court trustee takes the pay and whatever a person has that can be sold and decides how to best use those assets to pay the creditors. The person fills out a form showing items owned, what is owed and what has been given away in recent months or years.

In Chapter 13 bankruptcy, creditors are asked to allow debts to be repaid over three to five years. To file, it is necessary to show there is income to repay debts and current bills. Those who have home mortgages and car loans more than $750,000 or credit card debt higher than $250,000 may not be allowed to file this type of bankruptcy.

In Chapter 7 bankruptcy, most debts are canceled, but the court sells all assets to pay as much of the debt as possible. State law determines whether the home would have to be sold to pay debts in a bankruptcy. Some debts cannot be canceled in bankruptcy: taxes owed, child support, credit-card fraud and alimony. Bankruptcy stays on credit reports for at least 10 years.
Two years after making bankruptcy payments and three years after a foreclosure or a deed in lieu of foreclosure, it may be possible to get a home loan guaranteed by the Federal Housing Administration (FHA), http://www.fha.gov .

One way to get credit going after a bankruptcy is to open a secured credit-card account at a bank, use no more than one-third of the credit and pay the bill early every month. A secured account requires a set amount, say $250, to be deposited into a bank account, and the bank issues a credit card with a limit equal to the deposit. Setting up a few secured accounts will start rebuilding credit even during bankruptcy. It is important to use the cards carefully to charge only small items and pay the bill early.

Buying A Home With A Partner....

Living Together

Many single people purchase their first house with a friend; both parties can benefit from the investment in homeownership and reduce the financial burden and risk. Friends who buy houses together need to legally protect themselves from life's changes. They may not be friends forever; one person may need to move away for marriage or other reasons, so before friends buy together, they should visit an attorney together to write a property agreement.

For tax reasons, it is important to keep good written records about who came up with the downpayment, who makes the monthly payment and who pays for upgrades and repairs, or how all the financial obligations to owning a home are split between the owners.

Just because you are not married does not mean you can't go through the same headaches as married couples who divorce. If you decide ahead of time how you will handle a break-up and put that in your property agreement, you may save yourself a lot of arguing and attorney fees if a break-up occurs.

You may decide that if either one of you wants to sell, the other has 60 days to get a mortgage to buy out the other person's half of the house. If you disagree about the value of the house, each of you can hire an appraiser and you can average the two appraisers' estimates of your home's value.

If you and a friend are joint tenants and the other person dies, you get the house. If you are tenants in common, the partner can Will half the house to someone else – someone who may force you to move out and sell the house.

You can Will each other a life tenancy, so that your partner's heir has to wait until you both die to collect the inheritance. Make sure you know what happens if you both die and you Will the property to different people. And while joint tenancy may help keep probate costs down, you may still owe state or federal taxes after the death of your house partner.

In a handful of states, registered domestic partners automatically inherit, but having a Will or a living trust is a surer bet. Other states allow community property, where you each own half the house and your Will says what happens to your half when you die.

Spending Wisely To Own A Home

Many single people prefer to buy a home and build equity for themselves rather than pay rent to someone else. If you've been at the same job for a while and anticipate staying in the area you currently are living, buying a home is a great way to invest in yourself. Here are some tips for getting started:

Budget yourself
Figure out how much take-home pay you have each month. Add up your expenses. If you are spending more than you earn, cut back on extras like lunches and dinners out, cappuccinos and new clothing. Find a way to set aside savings each month, even if it’s only $100 or $200.

Did you borrow money for college? Work towards paying off debt from student loans. Do you owe money on your credit cards? Make those payments on time. Work toward paying more than the minimum due on your credit cards -- or you’ll never get that balance paid off. The calculators at http://www.choosetosave.org can show you how long it will take to pay off your balances. If you make a double payment, remember that you still owe the next month’s minimum payment by the due date.

Save for a home and retirement
If you find it impossible to save money, trick yourself by having the savings automatically withdrawn from your paycheck or bank account. Tell the human resources officers where you work what you’re saving for (retirement or a home) so they can set up the right savings plan. Or ask your bank to automatically transfer money from your checking account to a savings account or investment fund each month.

Establish credit
How is your credit? You can get your free credit reports (they are free once a year) and order your credit scores (a small fee is charged) from all three national credit reporting agencies at http://www.annualcreditreport.com. If you have little or no credit, start building good credit by applying for a credit card where you bank. Make small purchases and pay the entire bill before the due date.

Are you a chronic late-payer? Have the credit card issuer set up automatic payments from your checking account. If you pay even one month late, your credit score will fall. The lower your score, the more interest you may need to pay when you borrow money for a home or a car.

Traps to Avoid

Wedding debt
A wedding is a once-in-a-lifetime event. If the two of you are paying for it and you overspend, it becomes a paying-for-years event. Trim your expectations and your wedding budget so you’re not burdened with wedding debt. The average wedding for 150 people costs $20,000. Cut that guest list in half and you’ll have enough money left over to put the down payment on your first home.

Credit card debt
Only charge what you can pay off entirely each month. Before you charge a big ticket item, such as furniture, figure out how much you need to pay each month to pay the balance as quickly as possible. Avoid charging anything that won’t last as long as the payments you’ll have to make on that item.

Living beyond your paycheck
Are you living paycheck to paycheck, never saving a dime? The best path to riches is to simply spend less than you earn — no matter what size paycheck you take home. To see where your money goes each month, get a notebook and write down every penny you spend for one month. At the end of the month, figure out what you can cut to live within your means.

Identity theft
Never give callers or e-mailers personal information, such as your Social Security number, address and employer information unless you’re absolutely sure they are who they say they are. e-mails that claim you can get low-cost credit cards and mortgages or erase your debt are sent by thieves trying to steal your identify. Thieves pretend to be telemarketers as well. Most banks and credit card companies only communicate with you via letters. Do not provide financial or personal details in response to an e-mail solicitation from what appears to be your bank. If you question whether an e-mail correspondence from your bank is legitimate, call your bank and verify.

To Get Ahead

Buy your first home
It’s never too soon to buy your first home. Special programs can help you purchase a home with little money down, if you have good credit. Talk to a mortgage banker about first-time home buyer mortgages, downpayment assistance organizations and local home buying programs. Ask questions about terms. Be sure you understand how adjustable-rate mortgage payments may increase.

Make jump-ahead principal payments
Ask your mortgage lender for an “amortization chart” that shows how much of your monthly payment goes to principal and how much to interest. Look at the chart and ask your lender how you can make an extra principal payment each month. Doing this can shave years off your mortgage and save you thousands of dollars in interest.

Home Buyers Course

Home buying has its challenges especially if you are doing it for the first time. Working toward your goal of homeownership should be an exciting and fun time in your life – it shouldn’t be scary! This free Web-based* Consumer Home Buyer Education Course has been designed to take the mystery out of the process.

The following topics will be covered:


-->The benefits of buying a house
-->Establishing and using credit
-->Developing your family budget
-->Selecting a home and neighborhood
-->Clarifying the home buying process
-->Working with a mortgage lender
-->Avoiding predatory lenders
-->Preparing a mortgage application
-->Evaluating mortgage loan and financing products
-->Conducting pre-purchase and follow-up inspections
-->Surviving closing
-->Tips for maintaining a home

Real Estate Glossary

abstract of title.

A condensed version of the title history to a piece of land or property. Lists any transfers in ownership and any liabilities attached to it, such as mortgages.

adjustable rate mortgage (ARM)

Mortgage loans in which the interest rate is adjusted periodically based on predetermined factors such as an assigned index or designated market factor (such as the weekly average of US Treasury Bills over a one-year period). There is typically a limit to how often and by how much the interest rate can fluctuate. Also known as renegotiable rate mortgages or variable rate mortgages. The adjustment date is the date the interest rate changes. The adjustment interval (or adjustment period) is the time between changes in the interest rate and/or the monthly payment (typically one, three or five years).

annual percentage rate (APR)

An interest rate reflecting the cost of a mortgage as a yearly rate. Because it takes into account points and other credit costs, the APR is likely to be higher than the mortgage rate. It is a basis of comparison for mortgage loan costs.

appraisal, appraised value

An appraiser's estimate of the value of the property. Banks require appraisals to determine how much money it will lend you.

bill of sale

A written document that attests the transfer of the ownership (title) of personal property.

chain of title

The history of all of the title transfers (conveyances and encumbrances) to a piece of real estate.
closing costs

Expenses incurred by buyers and sellers in transferring ownership of a property, such as an origination fee, taxes, title insurance, transfer fees, points, title charges, credit report fee, document preparation fee, mortgage insurance premium, inspections, appraisals, prepayments for property taxes, deed recording fee, and homeowners insurance.

cloud on title

Anything found by the title search which indicates that a property is not owned free and clear by the purported owner.

conventional loan

A mortgage loan not insured by the FHA or guaranteed by the VA.

conveyance

A written document (such as a deed or lease) that transfers ownership interest in a property from one person to another.

earnest money

Money given by a buyer to a seller as a form of deposit (part of the purchase price) in order to bind a transaction or to ensure payment.

escrow

Funds that are set aside and held in trust. Usually used for payment of taxes, insurance, etc.

market value

The amount that a seller may expect to obtain in the open market.

points

Prepaid interest assessed at closing by the lender. Each point equals 1 percent of the loan amount. (2 points on a $100,000 mortgage would cost $2,000 )

private mortgage insurance (PMI)

Default insurance for conventional loans, normally required with smaller down-payment loans.

quit claim deed

A document that transfers a title, right or claim to another person, giving up all claims to a possession.

survey

A detailed measurement of a property, including the location of the land in reference to known points, its dimensions, and the location and dimensions of any structures on the land. Prepared by a registered land surveyor.

sweat equity

Equity created by a purchaser performing work on a property being mortgaged.

FYI: Click on "Real Estate Glossary" for more real estate words and definitions

Tips for real estate agents

*Establish rapport. The fastest way to do so is to find common ground. People enjoy working with agents who genuinely understand the customer's needs and concerns; they also like to be able to relate to them on some level.

*Listen. As agents, we need to really hear what our customers are saying -- and just as important, what they are NOT saying. One great way to make sure you understand them is to repeat what they told you using your own words. You might be right on target, or they may say, "Oh no, that is not what I meant." Listening is a critical part of a smooth transaction.

*Win-win approach. In every transaction, a point arrives where all parties feel the deal is "fair." It may not be exactly what they had in mind, but it is acceptable nonetheless and they feel like they have not been taken advantage of. The other party gave a bit, too. The faster you can bring everyone to that point in the transaction, the happier both parties will be.

*Prepare your buyers. If your buyers know what to expect, they are more comfortable when it happens.

*Prepare your sellers. Let your sellers know as well what to expect. Educate (warn may be a better word) them about know about "no shows" and lower offers. Explain to them the benefits of being both patient and flexible. If someone is ready to pay full price in cash and close in two weeks, can they be ready to move?

*Write a good listing/offer to begin with. When you take a listing, make sure it is priced correctly to sell in today's market. Many agents will be pressured to accept a listing based on prices from eight months ago. Sellers are always the last to know (or admit) when the market shifts. Take the listing so it is competitively priced to sell.

*Prepare for your presentation. When listing, prepare a CMA, closing costs, an agreement, marketing pieces, and a website. And be prepared to handle any objections. You know them; we all know them. "I think my home is worth more than that." "Another agent said they would sell it for a smaller commission." "I want to try it myself for a few weeks."

*List benefits of the offer. Some components of an offer are just as important, if not more so, than price to the sellers. Be prepared to highlight any benefits of working with particular buyers, such as, they're pre-approved, they're providing a strong earnest money deposit, they're proposing a quick close, there are no extraordinary contingencies, no special concessions, etc. It is important to work with the other agent to make sure this is a non-adversarial event.

*Humanize the other party. Gently remind your buyers or sellers that, when all is said and done, they are dealing with other human beings with feelings and emotions. If the potential buyers really liked the garden -- or the décor, the home improvements, the neighborhoods, etc. -- let the sellers know that. Bring buyers to life as real people who would love to buy this home. If the price is not as listed, humanize the buyers. Let the sellers know they looked at many, many homes in this price range and selected this home out of all the homes available. Based on all of the other properties available in this price range, this seemed to them to be a fair offer. Let them know the buyers really wanted to be thoughtful of the sellers' time frame. Balance the good and the not so good: time vs. price.

*Keep the end in mind. Real estate transactions can be emotional. As the agent, you must always keep the end in mind. You must guide the discussions and perhaps the counter-offers. Never badmouth the other party with comments such as, "The buyers shouldn't be looking in this price range if they can't afford it!" Your expertise can bring the transaction to to close. Keeping your agency responsibilities in mind, the goal is a transaction that closes.

8 Critical questions to ask your realtor before listing

*Are you a expert in this neighborhood?

You need a realtor that knows the neighborhood and can sell to potential buyers.

*What type of advertising and marketing do you provide for your clients?

A good agent will have a list of marketing tools available: flyer's, a web site, print advertisements, newsletters, photo tours and so on.


The best way to sell your home is to have a realtor that will price it right, get it to escrow quickly and painlessly, and most important get it closed

*Are you available via cell phone or email?

When time is money both source of communication is critical. Ask how often he/she checks email and how early or late you can call. Getting in touch with a agent during your most convenient times may be important to you.

*Do you work on weekends?

Your agent must be holding a open house every weekend when the buyers are out there on Saturdays or Sundays or even both. If the agent works with a assistant the assistant may also hold the open house, as long as one is being held.

*What do you charge for commission and is it negotiable?

You are probably wondering why did I put negotiable on there as a agent. The truth is commissions are negotiable if you do not already know that. Six percent is the industry standard, you guys are probably thinking I am going to ask for three percent. WRONG! WRONG! WRONG! money motivates people who do you know that is not motivated by money. The realtor that comes in charging you three percent or less do you think they are going to put the same amount of effort in marketing like the agent who is getting six percent or more, I do not think so. For those of you who have your own business you are aware that marketing does not come cheap, and you want your home to get full exposure.

*Do you provide a report or worksheet of your work?

What I mean by that, a good agent should be providing you with a worksheet or report weekly with information about the activities that is going on with your house.

*What should I do to my house to get it sold faster?

This question may seem crazy but it should be asked before the agent gets the listing. No home is the same everyone puts there personal touch into there house. Unless your home is perfect and when you walk into the office it is immaculate, your realtor should offer advice on improvements that should be done. If the house is vacant; stage it, if the bathroom needs a little touch; do it. These questions and more are what the realtor should be telling you. If you know your house does not look good and he/she has nothing to say move on to the next realtor.

*How will you price my house?

Everyone wants top dollar for their house. Your realtor will give you a CMA(Comparative Market Analyze) that will show what the average range of homes are selling for in the neighborhood from highest to lowest. If your house is price to high it will never sell and if someone does provide a offer it will be lower than what you are selling it for. Pricing your home is important, (I will speak more about pricing in another post) if the comps in the the area are no more than $400,000 please do not think you can get $450,000 for your house. Do not let your realtor tell you that you can and if they do they should be able to explain why.


Even though I have provide 8 critical questions to ask your realtor I would like to provide questions to ask yourself when interviewing the realtor. Just because the commission is three percent and your excited about saving some money do you really want your house to sit on the market for months and not getting the full exposure. I made a statement early that money motivates people, but if you feel your realtor is all about the money move on to the next one. The realtor should be compassionate, committed, and interested about your thoughts and feelings. Lastly connect with your realtor and ask for a informational interview.

Know your credit score

The more consumers understand the credit scoring system used by lenders to qualify them for a mortgage, the better prepared they'll be when they apply for a loan, according to an article in the May issue of Realtor Magazine.

Credit scoring involves assigning numerical ratings to consumers on the basis of their credit history. Long used in consumer credit qualification, the procedure is now common in the home financing process and is widely recommended by secondary mortgage market entities Fannie Mae and Freddie Mac.

A credit score is a statistical way of predicting the likelihood that a borrower will pay back a loan. Factors include individual records of repaying loans and credit card bills, any public record like tax liens or bankruptcies, how often loans and credit cards are applied for and how much is actually owed. Proponents of credit scoring claim it helps more people qualify for mortgages by lowering the potential for bias, while opponents feel the scoring process can unjustifiably push creditworthy buyers out of the market.

Here are some tips on getting the best possible credit score:

*Don't order any furniture or appliances for the home before the mortgage is approved.
*Don't allow stores to run a credit check for a new credit card.
*Don't obtain a new credit card.
*Pay all credit card bills on time.
*Refuse increases in your credit limit if the increase is more than you need or high in relation to your income.
*Pay off and close existing accounts with finance companies.
*Close out unused credit card accounts.
*Maintain at least one of your oldest cards to show a lengthy credit history.

Top 10 Tips when selling your home

*Set your listing price by utilizing area comparables, not based upon what you need to buy that ostrich farm.

*Put personal collections away someplace safe, like a bank vault in Zurich.

*Invest in a fresh coat of paint ... and get 150 perecent green back on your investment.

*Disclose everything, especially the stuff you are tempted not to.

*Fix all running toilets, or risk flushing profits down the drain.

*Remember that "outside" is the new "inside." Show off all of your living spaces.

*Visit model homes to see how neutrality and spaciousness are made to feel so inviting.

*Grind a lemon in the garbage disposal – it smells great and it's such great exercise!

*Display the kind of plants that aren't injection-molded and painted in a factory somewhere overseas.

*Keep your day job. Hire an agent and assist them in doing what they do best.

Tips for first time home buyers

*The rule of thumb is that you should be able to afford a mortgage three times your income.

*Lenders subtract any debt payment from your income, so if you have a big debt, you have a lot less income — and a lot less house.

*When you are looking at a house, you have to have a wish list, but you have to understand that no house is going to be perfect.

*Don't judge a book by its cover. Same goes for a house. Go inside and look around before making a decision.

*When you buy a property, you should always have a home inspector come through. You never know what they're going to uncover, so don't crack the champagne just yet. If the home inspector should find something, then you can use it to your advantage to renegotiate the deal. Or you might have to walk away.

*You have to see past the junk and see the potential. When you buy a house, it's not just a place to live in, it's an investment. Keep in mind your dollars down the road.

*Home staging is big business. It can add thousands of dollars to the selling price. An unstaged house that has not been properly prepared for sale will sell for much less than the asking price.

*Feelings often take over the first time you go through a house, but the second visit allows time to do a thorough inspection led by your head, not your heart.

*The three most important matters when it comes to negotiation are information, preparation and realism.

*Reality often outweighs fantasy when it comes to buying a home.

*When a renovated house is priced low, it is a good indication that the owners are looking for a bidding war — they want to get as much money as possible out of the sale.

*When you're house shopping, you can't pull a number out of a hat. Find out what other homes in the area have sold for, how long ago the sale was and what amenities they have.

*What you want to pay for a house has nothing to do with the fair market value. What you can or cannot afford has nothing to do with the value of a house.

*The key to success when buying a home is to trust the experts.

*Before you begin to house shop, you need to have an idea of what kind of neighborhood you want to live in and the style of house you want.

*When it comes to investing, the best place to invest is in an up-and-coming area.

*It is especially important to have a home inspection if you are looking to buy an aging or older house. They look past the visible surface to the infrastructure, inspecting plumbing and looking for faulty fixtures and waste lines. They check electrical systems to make sure they aren't overloaded or a safety hazard. They also look at possible structural problems like the foundation, walls and floor joists.

*The old adage holds true. If it ain't broke, don't fix it.

*It's great to have your financing in place before you look because houses are bought and sold overnight. You could lose your dream property waiting to secure the financing.