Four Signs You’re Ready To Be A Homeowner

No doubt you’ve been hearing about the current mortgage rates of around 4.5% being some of the lowest in history and that homes in Nashville are still available at a significant discount compared to four years ago. All the talk probably has you wondering if it’s your time to buy. While the talk is all true and it makes for one of the best opportunities in history to buy your first home, your decision to buy should not be based on the market alone. The most important thing is deciding if the timing is right for you to buy. The following four signs are good indicators that you are ready to buy and not just rushing into buying because everyone says you should:

You’re planning on staying in the same place for at least three years:

Plan to own your home for at least three, preferably five, years prior to selling to allow equity to build up through monthly payments against principal, appreciation, and home improvements. This equity will cover the costs of selling when you’re ready to sell and will give you a cushion against future dips in the market. If you might have to move before the three year mark, renting out your home for a couple of years to allow more equity to accrue is an option you should consider ahead of time in case the alternative is bringing money to the closing table.

You have a dependable income and adequate savings:

Allow room in your budget for a downpayment, a monthly payment, taxes, insurance, and additional costs of home ownership before you buy. You need to have a minimum of 3.5% of your purchase price to put down for an FHA loan and 20% for a conventional loan.
Only buy what you can afford with your current income and don’t plan on future raises or promotions. Adjust your budget if you plan on going down to one income from two in the next three years. If you aren’t certain of your job security or have a varying income, have adequate living expenses saved before purchasing in the event of a job loss or period of decreased income.
Consider the costs of routine maintenance, unexpected repairs, and desired home improvements when designing your budget.

You can qualify for a loan:

You’ll most likely need a credit score in the 700’s to get a preferred interest rate from a lender. Late payments and too much consumer debt are just a couple of the mistakes that can negatively impact your credit score. Contact a mortgage advisor to have your credit run well in advance of purchasing to allow time to correct negative marks on your credit report. Bad credit history can take months to repair.

You can handle home ownership:

Homeownership is not without its pitfalls. Unlike renting, when you own a home and something breaks there is no landlord to call. Repairs and house and lawn maintenance are part of the home ownership experience. Be prepared financially and emotionally for all of the unexpected expenses and occurrences that will arise over the next few years.

Purchasing a home can be a great financial investment, particularly when considering the current market conditions in Nashville and the great interest rates, but buying is only a good decision if the timing is right for you. Buying a home is the largest single investment you will probably ever make. My job is not only to help you find the right place for the right price, but also to help you make a smart decision concerning that investment that you will feel as good about when you sell as the day you buy. If you’re wondering if it’s your time to buy please give me a call so I can help you figure out if you’re ready. Whether you’re ready or not, I’ll get you started on the right track.

Never Fly Solo. Always Have A Wingman.

By Dudley Schiel

Your wingman watches your flank. He keeps you from getting shot down. Flying without him leaves you vulnerable. Purchasing a home without using an expert to guide you through the process and watch out for your best interests makes about as much sense as leaving your blind spot exposed to enemy fire, yet hundreds of people buy real estate in Nashville every year without consulting a Realtor. Largely due to a misunderstanding of what a Realtor does and a lack of knowledge about the many variables involved in a real estate transaction, many people feel they can purchase a house as easily as they can buy a car: Find the car, haggle a little over the price, and sign the papers. Not so. The home buying process has more steps and carries more risk than the average buyer realizes. Beginning your real estate search with a professional on your side will save you valuable time and money, help make the process easier and less stressful, and significantly improve your odds of getting the house once you find it.

Each unrepresented buyer probably has their own set of reasons for choosing to fly solo. Based on conversations with clients who've bought by themselves in the past, solo buyers usually forego a realtor for at least one of the following three reasons: First, some people don't understand what a Realtor does and therefore don't realize how using one can help them. Second, some are afraid that a Realtor will rush them to buy too soon or pressure them to buy a particular house. Third, some people think they can save money by not using a Realtor because they don't understand how Realtors are paid.

Ironically, the answer to each of these concerns creates a pretty good list of the top three reasons to use a Realtor. First, your Realtor's job is to represent your best interests throughout the entire home buying process and he can help you by using his experience, expertise, and knowledge to help you make the best decisions possible and prevent you from overlooking important details or making costly mistakes. He does a lot more than just drive you around town and introduce you to the right house. While supremely important to both buyer and agent, finding the right house is actually only one step of dozens involved in a Realtor's job. The majority of the process is negotiating on your behalf to make sure you get the house at your price and on terms that protect and benefit you and ultimately managing the transaction to a smooth closing. After all, finding the perfect house is a moot point if you don't get it or if you have to pay too much for it. Second, a Realtor will help you assess your needs to start your search on the right track, prepare you for the home buying process, educate you on the market and eventually help you make good decisions when you are ready to buy. Pressuring you to buy a particular house or rushing you into buying isn't in line with a Realtor's goal of establishing a long term client relationship. A good Realtor is more likely to talk you out of buying a particular house than to convince you to buy it. Third, using a buyer's agent doesn't cost you money. It saves you money. Your Realtor's job as your negotiator is to save you money by getting the house cheaper, getting the most seller concessions possible, and by preventing you from overlooking details that could cost you money in the future. Your agent's commission is almost always paid by the seller's proceeds at closing. The listing fee paid by the seller is usually the same whether or not a buyer's agent is involved. Foregoing an agent under the assumption that the seller will discount the price accordingly only means you've given up representation and donated your would-be agent's commission to the listing agent who is exclusively representing the seller's interests.

Jester's scold to Maverick in Top Gun couldn't have been more clear: "Never, never leave your wingman." Flying solo when you have the option of having protection just doesn't make sense. While lives aren't at stake in real estate as they are in a dogfight in the skies, buying a home is the biggest investment most people make in their lifetime and your money is on the line. Always hire a Realtor to watch over your shoulder. As your Nashville Realtor, I'm happy to be your wingman anytime.

Scared Stiff: Preventing the 3 Biggest Fears of Buyers from Becoming a Reality

Halloween conjures up images of witches and warlocks, ghosts and goblins and all things creepy. These scary creatures might frighten the average kid on the street but it takes buying a house to scare an adult. Of all the worries that make buyers shiver, three fears can make even the bravest adult drop his candy and run. These are the three biggest fears that I encounter with buyers and how each fear can be prevented from becoming a reality:
1. Not getting the house: Finally finding the right home but losing it either to another buyer or because terms couldn't be worked out with the seller is every buyers biggest fear. These three things will help you avoid not getting the house once you have decided it is the one:
Be prepared: Be ready to purchase before setting foot in the house so you can act fast. This means being pre-approved with a lender and having a definite price range and budget so when the house comes on the market you can make an offer quickly without having to decide if you can afford it before submitting an offer. Even with the high inventory in the Nashville market right now, its important to act quickly when you find the right house. If you like the house chances are someone else does too.
Be knowledgeable: Know the market value of the home based on comparable sales in the area and decide what the home is worth to you so you can make an intelligent offer you are comfortable with.
Be realistic: Make a fair offer that has a good chance of either being accepted or getting a generous counter offer from the seller rather than a shot-in-the-dark offer that risks being rejected or jeopardizing negotiations by insulting the seller.
2. Missing out on a better house: Buyers are afraid of purchasing a home then discovering that a better house with greener grass has appeared or that there was a better home on the market that they never saw. These three things will ease the fear of missing out on the perfect house:
Assess your needs: Taking a full assessment of your needs will not only save you valuable time by only viewing properties that are right for you but it will also ensure that the home you end up with will meet your basic criteria even if it is not as good as the newly discovered home.
Stay open minded: Be open to viewing neighborhoods in and around Nashville that you might not have thought about. Most missed opportunities come from overlooking an area rather than a particular house.
Take your time: Buying a house is a major decision. Do not feel like you have to rush into making an offer on the first house you like. Make sure you have viewed all of the homes that fit your criteria before you make an offer.
2. Paying too much: Everybody loves a Blow Pop but nobody wants to be a sucker. Buyers don’t just want a good deal. They want the best deal. Here is how to avoid paying too much for a home.
Know the value: Having up to date information on the Nashville real estate market and being aware of the comps for the home are crucial but more important is deciding what the house is worth to you. After all, a home is only worth what a buyer is willing and able to pay for it. If you have been educated on the market and you feel like the home is worth what you are paying for it, then you’re chances of overpaying are slim.
Stick to your max price: Figure out how much you are willing to pay for the home before you make an offer. Emotions can get the better of you once price negotiations are under way so decide your price limit ahead of time. If the sellers will not sell the house for what you think it is worth then be prepared to walk away and find another house.

All of these fears are valid but none of them have to be a cause of stress. With proper preparation and up to date market knowledge all of these fears can be alleviated and prevented.
If you are thinking about buying a home in Nashville please give me a call and I will walk you through the transaction step by step so that these fears do not become a reality.