Tag: melissa

7 Points Checklist to consider before deciding to buy a Fixer-Upper

Posted on by Melissa Dorman

Congrats! You have decided to go for a Fixer-Upper Home, considering these 7 points will be helpful for you in making right choice regarding home.

Points you need to consider…. 

As per the experts, best fixer-upper may be the home that everybody will want to have in the future, but also which nobody wants right now due to its present condition.

So buying a fixer-upper can be a good way to own a home for self or for reselling it after improvement.

Since repairs require one to spend from his saving, it is very important to be vigilant or else one may end up either with buying the wrong property or spending too much more.

 

1) Location is a crucial factor. 

The location and neighborhood is a very crucial factor to be considered before zeroing in to the fixer-upper home.

The home located in a sought after neighborhood can be a valuable investment for the buyer once the repairs are carried out.

It is a famous saying “ Buy the worst house in the best block”.

Most important thing is to be in Love with the area and then to do a little bit of research.

Those buyers who can neglect small imperfections, on getting the home in a good community or locality generally go for Fixer-Upper Homes.

Important Facility to consider:

They give more importance to the nearby facilities like Hospitals, Markets, Parks, and the availability of good public transport.

Home in a good School district is more valuable than some small issues like peeling paint or an unkempt front yard.

Once the buyer is fully satisfied that he is getting all the essential facilities in the locality, then only he should zero in to the exact Fixer upper home.

If the home is for resale after renovation he should consider the facilities keeping the needs of large section of buyers in general.

Then only he may have a good bargain for price.

 

2) Consider the configuration and layout requirement.

Next thing to consider after the locality is if the layout and the interior specification is of your liking and whether the potential buyers will also like it.

There are more chances to attract more buyers if the home has extra bedrooms than other homes in the locality.

Does the home has an open plan? Its gaining popularity.

A female buyer may be interested if the kitchen is spacious and has double entrance.

Small children would love to have backyard for playing.

It will be of no use going for heavy investment if the walls are required to be rebuilt again.  Similarly repairs for Structural damages can also be heavy on your pocket.

So only buy the home if you think the layout may be interesting to large section.

 

3) The extent of problem to be solved. 

After Location and layout, the next thing to consider is the extent of problem.

The Problems in houses can be divided into two categories: Cosmetic and structural

 

Cosmetic up-gradation:

Experts say the perfect fixer-uppers are the ones that only need cosmetic upgrades. There are many buyers who would scoff at the houses that require small cosmetic repairs and simply walk away.

These buyers don’t know that problems like cracked tiles, peeling paint, smelly odors, and unkempt lawns are only skin-deep; and can be corrected very easily to make the home appealing.

With some freshening up your home can be transformed into an ideal home that anyone would want.

Cosmetic changes are generally less costly and can even add value to the home.

Kitchen and bathroom renovation, wallpaper removal, floor refinishing, and new lighting installation are minor up gradations that add value.

Moreover you have a choice to have your preferred colors, furnishings, and fixtures to make the home perfectly suited to your own taste.

 

Structural up-gradation: 

But experts warn against buying a house with structural damage, especially if there are major flaws in the foundation, septic/sewage system, roofing, siding, or other issues that affect the way a house works, you can consult with roofers Glasgow how to make it work.

You should think twice if the house has termite damage, water damage, needs serious upgrades to the electrical systems, or if there is a mold manifestation.

It can not only be costly affairs but also can be dangerous to live in even after the above matter is fixed.

If you find problems like these after a home inspection, experts say it’s probably best to walk away. These are needed to be treated by a licensed contractor.

Environmental problems such as termite damage or radon can be mitigated, but treatments may not always be successful.

So such fixer-upper are better to be avoided.

 

4) Consideration of time and efforts invested. 

Another big question is whether you have enough time to upgrade it to a dream house.  Some renovations make time before completion.

It will definitely take more time owning the Fixed-upper home rather than having a move-in ready home.

Right from finding the right contractor, allocating funds for repairs, getting required permit all these require time.

Also some unexpected delays and small issues and uncertainty of time frame is expected when it comes to repairs and renovation.

You may need to be liberal with time frame before the completion of the work to your satisfaction. It also tests once energy and patience before getting the ideal home ready.

If one is buying for investment purpose then maybe he can give all the time.

But it may differ if the home is required urgently for self or family dwelling.

 

5) Budget and total cost estimation.  

There are three major things you need to include in your budget before doing any repairs:

 

A) Renovation Cost: A rough estimate is required to be made regarding the cost to be incurred in the renovation including supply cost of new roof and metal roofing materials Melbourne, HVAC, Windows fitting or foundation up-gradations cost.

If attic space is to be converted to extra room, office  or study area its cost to be included along with new furniture . The renovation costs (also include labor costs), supplies, and permits must be calculated.

Even before hiring a home inspector or a licensed structural engineer to evaluate the home, creating a reference sheet or estimates for the costs will help in a long way.

This cost assessment exercise will give idea if fixing the home will really fall within your budget.

 

B) Cosmetic Upgrades: Some like to get the cosmetic upgrades or repairs done from expert so the cost to be incurred must be calculated. Some other like to Do it themselves (Fully or partially). In that case they need to determine the materials they will need and how much they cost.

If bathroom is to be upgraded, the cost of all the fixtures to be included in the list can be ascertained by visiting local supplier or through the brand websites.

 

C) Permits and Fees: Fees are to be paid to town or local municipalities for securing permits. Renovation carried out without permit from authority can be risky in long run.

Each upgrades and type of renovation has certain permit charge and fees already fixed by authority.

These Fees also change from town to town and can increase if the home is in high end area.

So correct assessment of fee should be made and be included it in the estimate.

The estimated cost of all these Charges will give idea how much cost will be incurred. Now one can ascertain funds at his disposal and if external financing facility is required and will that be feasible for him.

Buyer also needs this budget to get idea if it can yield good return during sale after renovation.

 

6) Full Expert Work or partial DIY approach. 

Some buyers may have to hire professionals or contractors for full repairs and renovation. Some others may decide to do certain tasks by themselves.

Before thinking of buying a fixer-upper, you need to consider your skills set as well.

Minor cosmetic upgrades can be easily learnt and be done by one and in a way can reduce labor costs.

If you’re skilled enough, a Do It Yourself stuff like putting a fresh coat of paint, changing the lighting fixtures, laying the tiles, fixing the toilet fittings, or tear down wallpaper etc can be done by yourself.

Those who wish to spend a little time on their home can use this approach and make their own home more appealing and it can be profitable as well.

If the home is for your own dwelling then it gives sense of satisfaction and proud feeling as well.

An expert caution is that anything related to electricity, house wiring, and major plumbing works are recommended to be done by expert professionals only.

So if one follows DIY approach with care, they may end up spending less on labor cost and instead can buy high-quality materials with this saving.

 

7) Need for external Finance.

It is not easy to arrange for external financing a fixer-upper home. Still if the home seems to provide value one can check if they qualify for any home improvement loans.

The most popular choices can be the FHA 203(k) loan, and the Section 504 Home Repair program can also be perhaps helpful.

Just remember that all loans have their own strict standards and eligibility requirements.

An informed decision can only be taken after considering all the options and understanding the pros and cons of each program.

Also evaluate that you are pre-approved for loan scheme.

home improvement loans

Conclusion

Renovating a fixer-upper should not be considered a casual affair. Such a project can eat away your time, effort, money, and can be patience testing as well.  

So once you finalize on a fixer-upper, there is no turning back on later stage.

Buying a home that people may initially reject due to small issues and converting it to perfect beautiful home; it is a challenge.

But if the challenge is accepted and some effort are put in with proper planning; it can means living in your dream home. Also making a significant profit when you sell.

 

Melissa Dorman is a Licensed Broker with Yascha Group at Living Room Realty in Portland, OR. Follow Yascha Group  on Facebook.

Revised 2019 Market Forecast from REALTOR®.com-Reflecting Optimism

Posted on by Melissa Dorman

Recent REALTOR®.com Forecast

As per the recent revised forecast from REALTOR®.com: “Mortgage rates will drop, while home sales will not fall as dramatically”.

According to Danielle Hale, chief economist of REALTOR®.com :

“We believe 2019 will be characterized by lower, but still increasing, mortgage rates that will buoy home prices and sales by boosting buyers’ purchasing power beyond what we initially projected.”

 

Forecast Implications

Lower mortgage rates means increased purchasing power for the buyers.

As a result, home sales will also increase, and in overall experience a much smaller drop than initially forecasted.

 

Background details

The previous prediction from REALTOR®.com was in Fall of 2018 . Back then we expected to have a rough home-buying season this year.

But with the latest updated prediction there’s reason to remain hopeful. It gives US Housing market a rosier picture.

Realtor.com on Tuesday 04/23/2019, issued a revised forecast, projecting a more robust market than originally predicted.

 

Revised Forecast in details

Previous Forecast

While the original forecast predicted mortgage rates to reach 5.5 percent by the end of the year,

Home prices were expected to increase by 2.9 percent as per the prediction made in fall 2018.

The number of home sales was expected to drop drastically by 2 percent.

 

Updated Forecast

The latest updated forecast indicates mortgage rates will likely peak at 4.5 percent. Nearly a percentage point lower than the original forecast.

Home prices were still expected to increase but by 2.2 percent as per the latest prediction.

Additionally, the number of home sales will experience a much smaller drop than initially forecasted.

It is expected to drop by only 0.3 percent instead of 2 percent.

 

Detailed Comparison

With the fall in the mortgage rates and as more homes hit the market, REALTOR®.com has updated its home-buying forecast for the end of 2019.

“The 2019 housing market is different than what we predicted in fall 2018, primarily due to an unexpected drop in mortgage rates in January 2019,”

Realtor.com Chief Economist Danielle Hale also submitted a prepared statement.

(Courtesy of REALTOR®.com)

 

 

Conclusion

Lower mortgage rates increases purchasing power, so more homes are expected to sell than originally predicted.

So this ultimately is reflecting optimism for a much stronger market.

This will create a slightly hotter, but still cooling housing market, reflecting optimism for a much stronger market.

So the previously expected level of slowdown in sales is not likely to take place for 2019.

 

Melissa Dorman is a Oregon and Washington Licensed Broker with Yascha Group at Living Room Realty in Portland, OR.  Follow Yascha Group  on Facebook.

4 Decisions by Landlord that can Affect the Profit Earning

Posted on by Melissa Dorman

The purpose of any business transaction is making profit. Profit is the reward in return of money invested and risk undertaken by the owner.

So making profit is ideal, as long as it is a win-win for everyone involved.

Similarly the landlord is also involved in the business for earning a profit. One doesn’t become a landlord/investor for a charity purpose or for giving back to society alone.

They invest their fund in the property in order to generate income from it later on.

But knowingly or unknowingly landlords/investors may be making costly mistakes that may be killing their profitability.

 

Common Decisions by Landlords that affect the profitability if gone wrong

The best and successful landlords are cost-conscious. They understand that costs accumulate over time, so they avoid mistakes and make deliberate efforts to maximize revenue.

For example, a $100 mistake due to wrong decision might not seem like a big deal in isolation.

But if similar mistakes are repeated every month on say, three properties, then it will cost around $300 per month—or $3,600 per year!

It will considerably be a large amount and can definitely reduce the income and can create cash flow issues.

 

4 Biggest Decisions by Landlord/Investor that Affect Profit.

 

1. Selection of  Properties

The biggest source of profit for Real Estate deal is while buying a property. So selection of the correct property is a must for making good profit. The phrase goes “You make your profit on the purchase price”.

The biggest problem that landlords face can be investing in the wrong property or overpaying for the right ones.

Selecting a property in a wrong locality or a property which need a lots of renovation works are just a few examples which can increase the cost or can block the fund supply and cash flow.

So the best property must be selected after proper planning and with patience; taking into consideration the favorable locality and the one that is in a good condition, only then profit can be achieved easily.

 

 

2. Selecting the Internal and External Finishes

Landlord/Investor must be smart with the finishes they choose for their property -both for sale and rent.

Tenants enjoy for nice designer, but that must be balanced with materials that don’t require expensive replacements after every tenant moves out.

Carpets are cheap in price but can also get ruined easily, to prevent that you will have to check over here to hire a professional who can clean it for you. Frequent stains, rips, and snags damage it and has to be replace or cleaned for each buyer/new tenant.

So instead, for a little more money they can have vinyl plank flooring and get a better look with greater durability and longevity.

 

3. Initial Screening of Tenants

Since selection of tenant has a direct impact on revenue, you must have a proper screening processes. Otherwise, it can seriously impact the long-term profit.

If a landlord/investor accepts a bad tenant who has financial issues or one who has a lack of regard for the property, it can cost thousands of dollars.

Some people think, selection for tenants does not need special attention, any one who accepts the terms and payment schedule can be selected.

But in the absence of proper tenant screening procedure, you may select the wrong tenant, which in turn can increase the cost.

Common problematic behaviors from tenants

  • If a tenant pays rent checks late or misses payment regularly
  • Causes frequent damage and maintenance issues
  • Violates the lease agreement terms, and
  • Leaves the property in poor condition while moving out etc.

With right tenant screening, chances of  these instances reduces and profitability increases.

 

4.  Selecting proper insurance and loan Rate

Many landlords make the mistake of accepting whatever insurance or personal loan products offered to them, without comparing and selecting the best.

So many times in their haste to move on, they end up overspending for loan and insurance policies.

The best practice is to never be in a hurry, and instead compare the rates and select the best.

Online services like GoBear.com allows to analyze and compare hundreds of products to select from.

Landlord/Investors who are vigilant in this area will enjoy larger profits.

 

Final Words:

There’s a very small difference between successful landlords and investors who make good profit from the average investors who earn less.

The successful ones make all the effort to increase revenues and reduce even the small unnecessary expenses. This way they strictly keep their cash flow in control and as a result maximize profits.

Simply put, limit your expenses and maximize the revenues.

 

Melissa Dorman is an Oregon and Washington Licensed Broker with Yascha Group at Living Room Realty in Portland, OR. Follow Yascha Group  on Facebook.

6 Proven Strategy to Fix Your Finances even with Bad Credit Ratings

Posted on by Melissa Dorman

Steps towards establishing Good Credit Condition even in case of No Credit or Bad Credit Score

 

1. Analyze Your Credit Report

This involves two processes: Pulling your credit report and analyzing

 

a)  Pulling Your Credit Report

The first priority thing you need to do is to pull your credit report in order to analyze your current credit situation. A great free resource is CreditKarma.com and for an annual free and official version use this federal site. I recommend doing both and comparing. The federal one is most accurate but you can only do it once a year.

Pay close attention to the major bad credits and dues.

Many people do not acknowledge their bad credit, thinking that it will somehow go away.  But that is not a good strategy.

You have to face those bad credits head on in order to overcome them.

 

b) Determine if you can overcome your situation

You have to be honest with yourself while analyzing this situation. You can easily overcome small dues but big credit areas require a different strategy.

If for example, can you honestly pay $200,000 that is due in medical bills?

You need to realize these things; Are your finances that strong? Are you about to gather a large sum of money that will meet this expense?

Among many alternative options bankruptcy may be the last alternative for you.

Only after proper and honest analysis, plans can be made and implemented.

 

2. The Strong Motivator

Be clear of your big “WHY?” Factor.

You have to have a strong and logical yet emotional motivation.

Write it down and put it somewhere that is in front of you daily. Let it remind you and keep you motivated.

 

3. Evaluate Your Various Sources of Finances

After analyzing  your credit report, then you need to evaluate your various sources of finances.

Find out where you’re spending your money. Also find out how can you make additional income. A great free resources is using Mint.com to track your spending. You can create categories of spending to see what are needs and wants.  I recommend looking 3 months back and labeling all transactions to identify your spending habits. See what you can eliminate going forward.

 

a) Check on Expenses

What are those things that you are wasting money on unnecessarily?

You can not neglect your basic necessities, but what are the over the top expenses. “Find the holes in your purse.”

Some people spend tons of money on fast food, online shopping, excess credit card charges, and on multiple online program subscriptions.

Similarly identify your major expenses and create a budget for max spending each month on these items to limit your losses.

 

b) Creating Additional Income

By cutting the unnecessary expenses, some additional savings can be made.

Instead of going out for fast food multiple times, you can limit it to once or twice a month. Instead of multiple subscriptions you can limit it to one like Amazon Prime alone.

Turn off the subscription packs for alerts from various e-business shopping websites. Being prompt with credit card payment is also a must.

Selling unused goods can give additional income once in a while. Also evaluate if it’s worth picking up a side hussle or second part time job.

It requires strong discipline in managing finances.

 

4. Just Do It

Take action now. Don’t wait for next year.

After the evaluation and proper planning, with a strong motivator backing you, and with a little reward; All you now need is to, just go get it.

Follow your plan, track your success, and watch yourself earn an amazing credit score.

Have a positive mindset while taking action.

One method to keep things rolling is to start with small debts and paying those off first, then move onto the bigger ones. With a sense of accomplishment, you can conquer more. Another method is paying down the highest interest rate credits first while paying the minimums on other cards. This is the best financially but sometimes it is not motivating if the largest interest rates are also the largest sums.

Consider consolidating your credit card debts with a 0% APR credit card like Double Cash. Check for when the rates will increase on the card and create a payment plan schedule to pay off the combined debt before the rate adjusts.

 

5. Reward Yourself

Set small goals and Reward yourself on achieving them.

For example, after de-cluttering and selling off unused stuffs give yourself small coffee or small snacks gifts that satisfies you.

Do what ever makes you feel good without building up more debt.

 

6. Serve the needy

In addition, find an avenue to give. It enriches life.

It is sowing seeds of goodness that will bear fruits in future.

Apart from money; your time, your skills and talents can also be of value to others.

Serving others nourishes your soul and makes you feel good about yourself. A simple way to help is to share this article with others so they can get their credit in line as well.

 

Conclusion

It takes time and efforts to increase your credit score drastically. It will not be easy.

But with proper analyzing and planning, combined with strong motivation and discipline one can achieve this goal.

Remember that you will get the best deals—once your credit scores increase.

 

Melissa Dorman is a Oregon and Washington Licensed Broker with Yascha Group at Living Room Realty in Portland, OR.  Follow Yascha Group  on Facebook.

The Rationale Behind Federal’s Decision to Keep Interest Rates Unchanged.

Posted on by Melissa Dorman

Background behind Interest Rate Policy

 

If you are a buyer in today’s market, you are aware of the increase in prices over the last few years (especially in Portland). After the big 2008 crisis, I often get the question “When is the next big downturn turn in the market?”. While I cannot predict the market, it is important to recognize that price is not the only factor when you consider buying. After all, your monthly payment is a combination of price and interest rate. Historically, we are still at a very low interest rate as compared to decades prior when 17% was the norm. Even if you are worried about declining prices in the future, it’s worth considering the opportunity of locking in a very low rate. This is particularly true if you plan to keep the property for several years, allowing for a recovery in the price should we face a dip in the market in the coming years. Below is an overview of how the interest rate is set in our market.

The US Federal Reserve raises or lowers interest rates through its regularly scheduled Federal Open Market Committee (FOMC).

FOMC is the monetary policy arm of the Federal Reserve Banking System. The FOMC sets a target for the Federal Funds Rate after reviewing current economic data.

Fed’s analyzes various parameters of economy like condition of inflation, labor market situation, demand for loans etc.

On the basis of these parameters the FOMC members make decision regarding the interest rates.

The fed funds rate is the interest rate banks charge each other for overnight loans. Those loans are called Federal Funds.

 

Recent decision

The Federal Reserve members voted unanimously on 03/30/2019 that the FOM Committee is to leave interest rates unchanged in the range of 2.25% to 2.5%.

The present scenario also gives a clear message that the policy makers are not in any hurry to change the interest rate policy soon.

 

Further Analysis

Among the 17 Committee Officials, 11 of them think an increase in interest rates will not be needed at all during this year (exciting news for buyers!).

The present condition of slow down in the U.S. economic growth is the primary reason behind this.

There were a series of change in interest rates which started more that three years ago.

 

Previous Changes in rates

The Fed raised rates four times in 2018 — the latest time in December 2018.

At that time it boosted the federal funds rate to a range of 2.25 percent to 2.5 percent.

 

Previous Expectation

In December 2019, committee members projected that there might be two interest rate hikes in 2019.

But as of now, of the 11 Fed officials, six anticipate just one rate hike later in the year, the other five forecasting no change at all during this year.

 

Condition analysis

Strong Labor Market Condition and Economic Activity

The committee said in a post-meeting statement that the country’s labor market situation remains strong and it is a positive factor.

They evaluated that the economic activity has slowed from its solid rate in the fourth quarter.

The slow economic activity is due to sluggish spending by households and because of reduced business investment.

These two are indirectly contributing to the slowing economic growth and are causing declining inflation.

Officials also updated their economic projections of number of increases they foresaw for 2019 from two to zero.

The recent decisions can affect interest rates on everything from credit cards to mortgages, as well as the interest rates on savings.

 

Business Trend and Activities

As per Federal Chairman; trade tensions, Brexit and the recently ended government shutdown raised uncertainties for the economy.

In recent surveys, business and consumer sentiments have declined, giving the Fed further reasons to be cautious.

While still low, the unemployment rate inched up to 3.9% in December. It is a positive factor.

Final words:

Overall, the Federal Committee has decided to leave interest rates unchanged and expect an increase in interest rates will not be needed this year. If you are on the fence about buying, I would encourage you to consider to opportunity of locking in a low rate!

 

Melissa Dorman is a Licensed Broker in Oregon and Washington with Yascha Group at Living Room Realty in Portland, OR. Follow Yascha Group  on Facebook.

Budgeting Ideas : Tips to Save for a Down Payment

Posted on by Melissa Dorman

Down Payment Issue

Among the many tasks involved in the process of home ownership, budgeting for down payment is one of the most crucial tasks.

In today’s economic situation, every one seems to struggle to save funds towards down payment.

 

Some Important Statistics:

According to data from the U.S. Census Bureau, the median demand and price for U.S. housing in 2018 was just over $206,000. (Portland is closer to $450,000!)

In addition to this price, serious buyers are expected to put down payment between $20,600 and $41,200. This is not a small amount.

This is a relatively big sum of money for most people due to stagnant wages and loan debt.

To young students, student loan debt also make it more difficult to save for a down payment.

But still many people carefully budget to save enough up. Even if one is on a tight budget, there are some ways to still save.

If you want to build above-average wealth, you need above-average spending and saving habits. If you want to build exceptional wealth, you need exceptional spending and saving habits.

By having a clear focus and avoiding the unnecessary excuses, by not losing the initial momentum and by starting  to really save, one can achieve these results fast.

How much do you need to save for a down payment?

You may have heard that 20% is the gold standard when it comes to down payments, but in fact, many of today’s buyers are putting down closer to 5% or 10%. With an FHA loan, you can put as little as 3.5% down and a VA loan (for veterans) it’s 0% down!

Keep in mind that the amount you need to save for a down payment varies greatly by your loan program and your credit qualifications.

To get a feel for your own situation, reach out to a great mortgage broker.

They’ll be able to pull your true credit score and based on their expertise tell you how much you’ll likely be expected to put down.

Budgeting Ideas : Tips for saving for Down Payment

One need not borrow every penny to buy investment properties—or to own a home.

Arranging all the funds through loan/financing is neither practical nor economical.

Some of the steps are more extreme than others, but all of them achieve the same purpose- making  arrangements for your  down payment easy.

How to Grow Your Savings-Fast

The following are the steps involved in the process of arranging the funds for a down payment. These steps are not exclusive, one may combine many strategies to save more.

 

1. Know the Required Sum of Money

Before setting goals and starting at random, it is better to figure out what the required amount is.

It may need not be exact but having an idea of the sum will give you a better picture.

In general, a first time home buyer needs between 3.5%- 20% down payment.

Also it takes the average renter six and a half years to save enough for a down payment on a house.

Also as home prices are on a rising trend in many areas, it is always advised to budget for a bit more.

It will be better to budget a higher amount than being short of funds to buy your dream home.

 

Budgeting  process for Ascertaining Down Payment Requirement:

Once you have an idea of  how much you need to save for a down payment, figure out how much of your expenses you can reduce.  In this way, more money can be saved each month.

Divide the down payment by the monthly amount you’ll save, and you’ll have how many months it will take to save your down payment.

You can decrease the time by getting a second part-time job or looking for ways to increase income level.

Money can also be arranged by selling the things you no longer need. As a bonus, getting rid of clutter by selling it off makes moving easier!

 

2. Create a budget and set achievable goals

One of the basic things you can do when saving money for a down payment is to determine just how much you have left over after spending on necessities.

Spending on necessities can not be and should not be neglected.  The remaining sum is the money you’ll be able to save from, after all.

Set a budget that takes into account all of your monthly payments; it helps you make smart choices.

Remember even small amounts add up. So instead of focusing on one big number , break it up into smaller, more manageable amounts.

Try to save just $100, then another $100, and so on. Breaking it into small sums will make it more practical and easy.

It will put things into perspective, when you do manage to save aside $10 or $20 toward your goal.

By this you’ll actually recognize it as a small accomplishment and will feel motivated.

 

3. New Separate savings account for a Down Payment

Create a separate account with no linking debit card or checks that you can use solely for the purpose of saving for your down payment.

Try to transfer a certain percentage of all incoming money into the account—every little bit makes a difference.

Expert recommend saving minimum 10% of the income, the more one can keep aside the better it is.

 

 Sign up for automatic saving plans

Many banks provide the ability to automatically transfer extra money into a savings account.

For this they round up the dollar amount on purchases, and then transfer to specified account.

It’s also a no-fuss way to save money without having to even really think about it.

Set up automated savings transfers to take place every single paycheck.

The very first monthly payout should be the transfer to your savings or brokerage account.

Another option is recurring bank transfers, but you can also take advantage of automated savings apps like Acorns or Chime Bank’s app.

 

4. Dedicate any extra income to your down payment

Some follow the practice that whenever they receiving any cash gift then they transfer it for savings.

Similarly transferring any bonuses or increment received from work towards down payment.

 

5. Plan and decide before spending

Saving for a down payment doesn’t mean you completely stop spending money on things you enjoy.

Few people like to spend on buying clothes or for concert tickets frequently. So instead of spending each month, one may decide to spend on it quarterly or half-yearly.

Because you realize that buying or spending on those things like usual will take you a few steps back from achieving your goal.

For any purchase that isn’t a necessity, give yourself 24 hours to think and decide if it’s worth it. If it’s a really big purchase, give yourself a weeks time before deciding.

These small sacrifices helps towards achieving the larger goal faster.

 

6.Use cash more than credit card

As much as you can, rely on cash for your everyday spending instead of a credit card.

This way one will be more conscious of how much they spend. By using cash there are more chances that, they will avoid going for unnecessary or overpriced things.

This in turn helps in keeping more money in the bank, that you can put toward a down payment.

 

7. Extra income by Selling stuff you don’t need anymore

Chances are you have plenty of things in your home that you never use.

Put unneeded belongings to good use by selling them for cash online or with a yard sale.

Not only will you make some extra money, but will also have less to pack up when you do finally save enough and make a move in the dream home—a win-win!

 

8.Make shopping lists before hand and remove temptation triggers

In general, stores work hard to promote their goods in such a way that you buy more than you really want.

Beat this system and save a ton of money by creating a list of things required urgently beforehand and stick to it seriously.

If subscribed to marketing emails from favorite brands or stores; you’re baiting yourself to spend money on non-essentials.

Click “unsubscribe” so less temptation ends up in your inbox and you can focus more on the purchases that matters most to you.

 

9. Reduce Your Car Expenses

Transportation is the second largest expense for most people. It’s up to you to find a way to reduce it to its bare minimum.

Car payments, insurance, gas, parking, maintenance, and repairs, it all adds up to make Total Car expense for a month.

If you can get by without one, sell it and carpool or take turn on drive, or ride your bike to work.

You’ll save on car payments, maintenance and insurance costs, which can help put you even closer to your dream.

Another way is Cutting down on unnecessary trips. Buy groceries and vegetables while returning back from work.

Whenever running errands, plan out your route so you drive in a circle and don’t backtrack.

 

10. Pay bills in a timely manner

Paying your credit card in full every month is a basic personal finance rule. If not already in practice, one needs to bring it into practice immediately.

It’s a higher priority than buying real estate, saving for retirement, investing in stocks, or anything else.

It is so because credit card companies charge more in interest than you’re likely to earn from any other investment.

 

11. Buy used than buying brand new

We can buy many used things and save on the price, provided the quality of the product suits your expectations.

Some times when an advanced version is available, a previous version can be available at a lower price. Example- phones and computers, if its very urgent.

We can all agree there are some things you shouldn’t buy used. Groceries and personal hygiene products are clear exceptions..

Similarly doing a job and living in a rented home can be costly.

12. Methods of saving by spending less:

In general, there are many such expenses in a household which are not necessity and can be given up. By reducing usage or by spending less on such expenses, small savings can be created for down payment.

Some of such expenses which a house hold can forgo are:

 

1. Stop Eating out excessively:

If it wasn’t made at home, you can’t eat it. Period.  No more restaurants. No more take-out, delivery, lunches out with friends.

Learn how to cook. Batch your meals in advance. Brown-bag your lunches. Make enough for leftovers.

Any food not prepared by you is not a necessity and not a food expense.

By eating more at home, one becomes healthier, saves money, and has more nutritious food. And health is wealth.

2. Stop Drinking at Bars or Restaurants more often

If you have to drink, do it in private homes.  Bars and restaurants mark up their drinks four times above cost on average.

You’re going to stop paying to line business’s pockets.

 

3. Stop Cable & Other TV Subscriptions

Your mom had it right: TV rots your brain and life.

Call your cable TV service right now and cancel the subscriptions.

If you absolutely must have, allow yourself only one—online streaming service, such as Netflix or Hulu or Amazon Prime. No more than than is required.

But you’d be better off getting rid of your TV entirely.

4. Hotel Boarding Expense while in travel

When you travel, stop staying at hotels. Ideally, stay with friends or family.

If that’s not possible, and you must pay to stay somewhere, find somewhere inexpensive on Airbnb.

 

5. Quit Gym & Work Out at Home

A study published by Statistic Brain found an appalling 63 percent of gym memberships go unused.

So don’t spend on it unnecessarily. Commit to a home workout routine instead, and cancel your gym membership.

There are about a million free home workout routine and yoga videos on YouTube. Also going for a walk and running in a ground is good exercise as well. Its altogether free.

The only cost you should incur for working out is your shoes and maybe a yoga mat.

6. Spending on Pampering at Saloon

You may not pamper yourself until you’ve purchased your next property.

No massages, no manicures, no pedicures, no facials, no spa days, no self-indulgent luxuries of any kind.

Do your own nails. Get your significant other to give you a back massage.

All pampering expenses are off-limits until you’ve reached your savings target and bought your next property. You can reward yourself after that.

7. Extensive use of Cloth Dryer

Clothes dryers also use a lot of power and produce a lot of heat—a particularly wasteful process in the summertime.

Hang your clothes on a rack to dry instead. You’ll save on electricity, doing a favor for both the planet and your wallet. Again, it’s a win-win.

 

8. Excessive Thermostat Usage

The greatest energy expense in your home is your climate control—heat in the winter, air conditioning in the summer.

Set your thermostat to the bare minimum acceptable usage. Yes, that means you’ll have to wear a sweater at home in the winter and throw an extra blanket on your bed.

Get over it, and be grateful you live in an era of easy climate control in the first place.

 

9. Buy Generic Brand Groceries and Drugs

Generic drugs, both prescription and over-the-counter, have the same active ingredients as their name-brand counterparts.

Branded products spends a massive amount of money on branding, ads, and research and development. But their generic versions are available at low price.

Likewise for groceries, the generic brand products are literally manufactured in the same factory as the branded products.

The only difference is the packaging. It’s the most efficient method of mass-manufacturing, after all.

 

Final Words

Whether you’re putting down $1,000 or $50,000, you’ve still got to figure out how to save what you need.

Don’t look at a down payment as an impossible hurdle to jump over. Break it into small, digestible goals so that you can see your progress in action, and never lose sight of the reason you’re working so hard to save.

If owning your home is truly important to you, it will be more than worth it to pass on the expenses that bring you immediate gratification but take you further away from what you really want.

Be smart in your spending and realistic in your home buying budget and you should be able to save up what you need.

Saving for a down payment takes focus and perseverance. The best time to start is now. Figure out what your budget is and how much you can save.

Once you have those basic facts laid out, it’s much easier to come up with creative ways to bring in additional money and get to your goals faster.

Basics for Beginners in Real Estate Investing!

Posted on by Melissa Dorman

 

So many people wish they could be wealthy. Far fewer ever take any steps towards that aim. Real estate can be an excellent avenue towards building wealth. Speaking of wealth, check out this Klear Picture foreigners tax for an idea. It’s the “Get Rich Slow” game plan. As an investor the past few years, I can attest it takes hard work, lots of preparation and ongoing diligence to do well in real estate.

Till some time back, investing in real estate was considered difficult to access and to afford by most people.

But now the trend has started to change and people are more open to try various new avenues of investment including real estate.

Funding your real estate investments have only grown more diverse over time; people are not just using their own savings to buy homes, but they have started to look for other options like private equity funds, or even investing passively through a REIT(Real Estate Investment Trust).

 

Benefits of Real Estate Investing…

Real estate investment has turned out to be both a lucrative and a reliable way to generate substantial returns.

When approached correctly, real estate can create a consistent income stream for your future, through rental income.

It also provides your portfolio with such valuable and unique benefits like tax advantages, portfolio diversification and appreciation potential.

Basics of Real Estate Investing:

But for a beginner, the investment in real estate can be both doubt filled and intimidating. But by understanding and following some basic concepts and strategy, one can gain the confidence to start investing. These are some of the basic ideas that most successful real estate investors practice but the concept in not limited to these points alone.

 

These basics points to keep in mind before investing:

 

1) Make a Plan:  

Like any other investment, real estate investments require a great degree of planning.

The beginner in real estate investing must approach the planning process as a serious activity. Think of it like going back to school for a degree. You must establish both short term and long-term goals for your wealth building.

Get clear on your various decisions like the type of home, preferred location, source of funding, term of investment, expected returns etc.

Only by proper planning can you make these decisions and implement them practically.

A proper plan allows investors to visualize the big picture. Visualization will help you maintain focus on the goals rather than on dwindling on minor setbacks (and they will happen).

Real estate investing can be both complicated and demanding, and a solid plan can keep you organized and focused on your big future goals.

 

2)Determination and Strong will

Deciding to invest in real estate is not something to do impulsively. It should neither be chosen merely because a neighbor has earned a small fortune from it, nor because it is the talk of the town.

It should be chosen only if you are really interested in this avenue. Moreover investing in real estate is a life long pursuit, and not a get-rich quick scheme.

As an investor, you may have to face many difficulties; you may need to learn things the hard way. You will make mistakes. You have to devote time; you will have to make many sacrifices; and you may even fail.

The successful investors are the ones who can take those experiences and turn them into lessons to improve their skills.

If you do not have a strong determination, even small losses feel like big failures. You don’t need to be an expert in real estate investing but your persistence is crucial. Celebrate those small victories and let them fuel your momentum.

 

3)Continuous Education and constant up gradation :

Like in any other business, one has to learn many things before starting to invest.

Apart from the investment basics, you must also be up to date with the laws, regulations, terminology and the latest trends in the real estate market.

Investors who are not up to date may make big mistakes. They may miss the correct timings of investing or end up investing in the wrong property.  They may even have to face legal cases if laws are ignored or broken.

Successful real estate investors stay educated and adapt to any regulatory changes or economic trends.

You DO need to get proper education and do your Homework in this field. Surround yourself with experts and a community that keeps up to date on these matters.

 

4)Know the Market:

The market is a crucial part of the education and homework process. A beginner in real estate investing should acquire an adequate knowledge of their selected market. Pick a neighborhood and study what sells, the average home square feet, what homeowners and renters like and are willing to pay a premium for.

Knowing these details help you to predict and plan for the future. This enables you to predict when trends may change; thereby creating potential opportunities to benefit from those upcoming changes.

Once a particular market is mastered, the investor can move on to additional areas using the same in-depth approach. Don’t try to learn everything at once. Learn one way of investing really well and advance from there.

 

5)Identifying the Risks:

For other investment avenues like stocks or mutual funds, investors are advised with warnings regarding the potential risks involved in investing.

But in the real estate market, there are no awareness campaigns to educate and caution beginner real estate investors.

One can easily be misled by the sugar coated stories from those who are fraudulent. They (looking for easy targets) will lure you into believing that it is easy to make money in real estate.

But a knowledgeable real estate investors understand the risks. The risk can be both in terms of fraudulent real estate deals and also of any legal implications involved.

So they adjust their investments and dealings in such a way to reduce those risks. Vet anyone who asks you to give them money for education. How many deals are they doing? Who has used their program before? What was their result? Paying for education does not guarantee results, even though it feels like progress writing a big check to someone who is charming.

 

6) Great rewards demands great sacrifices:

What is your financial goal? How high is your dream? How bad do you want financial freedom?

If you want to use real estate investing to start living your dream life you have to sacrifice many things. Sacrifice may be in terms of many small enjoyments and privileges, to have a long term success in future.

You may need to forgo a vacation and use the money toward a down payment instead.

You may need to learn how to use a paint brush and do your own work.

Investing in real estate is the most rewarding thing you ever make but it will not always be easy.

Even after sacrifices it may happen that some of your dealings may not be as rewarding as expected. Change in customer buying patterns or implementation of new law may change your results

Expect several years of hard sacrifice in terms of time, money, privileges etc to get financially free and live your dream life.

As mentioned earlier, real estate investing is not a get quick rich scheme. It is a result of long years of persistent efforts and continuous education.

7) Building a strong network and team:

There is a famous saying in business “Your network equals your net worth”. This itself is enough to show the importance of Networking.

A network can provide important support and create opportunities for both new and experienced real estate investors.

A good network may comprise of business partners, clients, mentors or guides. This group can also consist of the best of real estate investors, in this way they will be both a challenge and support.

Those beginners in Real estate investing who are planning to have a long term presence must first establish the right team before they start their real estate endeavors.

Importance of team:

You may learn many things related to financing, law etc but ultimately you would want experts with real experience in your circle of influence.

There is always going to be someone that you have trusted to do a job. Don’t try to learn it all.

The task of building a strong network and team will help a new investor go a long way.

 

Who should be in your ideal team and network?

  • A real estate agent
  • A property manager
  • A contractor or construction crew
  • Maintenance people
  • A good attorney
  • An accountant
  • A title company

 

One can also join local real estate associations; there one can find many people from related field. New investors may think it will not be feasible and costly to have the team of experts. But if they plan to have a long term and fruitful reward, having dedicated team can never be dismissed.

 

Conclusion

By proper planning along with strong determination, an investor can have a clear focus. Proper education and market study, helps make real estate investing more profitable.

Having a strong network and proper team are crucial steps to have rewarding real estate investing journey.

It may be simple task to earn short term profit, but developing a long-term real estate investing business requires skills, and efforts.

 

 

Melissa Dorman is a Licensed Broker with Yascha Group at Living Room Realty in Portland, OR. Follow Yascha Group  on Facebook.

Things to do after Final Mortgage Payment – A reminder

Posted on by Melissa Dorman

About Mortgage situation

You found your dream home, you decided to have it financed through a mortgage loan.  You have been paying your hard earned money every month for the last 15-30 years, or even more.

For all these years the ownership document of your home was in the name of lender/bank.

Satisfaction of Complete Repayment

Now you have payed your last installment of payment. Wow! This great feeling of relief and satisfaction; only you can feel the joy of it.

On checking your account you find the most valuable lines “Paid in Full”.  Now you too joined the esteemed group who have full, free and clear ownership of their home.

Congratulations! All the sacrifices you and your family made to have the ownership of the home has paid off well.

There are a number of important documents you need to collect. There are a few responsibilities you’ll need to take over now that no bank has a lien on your home.

These steps mentioned below can be helpful to you in ensuring that you have a clear ownership of your property after the mortgage is over.

The Final Documents to Collect and Clean Title Process…

 

1) Release of Lien:

After completion of full payment, your lender will send a document to the county or city registry office notifying them that your title is now clean.

Now lender will prepare and produce the document for Release of Lien. By doing this the lender indicates that lien the lender attached to the property while it was under mortgage is no longer valid.

The lender will produce the document of Release of Deed of Trust or Satisfaction of Mortgage, which will discharge your property from any claim from Lender.

Now there is no longer a lien on your property, it means that final authority of you home is with you.

Now you have full right and ownership on your home, especially if you decide to sell your home at any time.

 

2) Cancel your Automatic Mortgage Payments:

When you make a payment towards a mortgage every month, generally an automatic payout facility is set up from your bank account. This ensures that correct and prompt payment can be made towards the mortgage.

Now that the last and final payment is made towards it, you need to contact the bank and instruct them to stop the automatic deduction from your bank account towards the mortgage.

 

3) Expect to Receive some Important Documents:

There are few documents that you can obtain from various sources after the last payment towards mortgage, these indicate your complete ownership of the home. The documents are:

 

a) Mortgage Promissory Note: 

 

During purchase the mortgage loan lender asked for a mortgage promissory note signed by you as a means of security.

Now after the completion of full payment, the lender should cancel and return the mortgage promissory note signed by you.

This canceled promissory note proves that all the terms of the loan have been fulfilled and that you no longer owe the lender any money!

 

b)Payoff Notice:

Some lenders provide with the proper payoff notice after loan completion.

It indicates that you now have a zero balance on your home towards mortgage and that you owe nothing more to the lender.

The payoff notice shows that you now have a zero balance on your home, and full loan has been repaid back.

 

c)Trust Deed:

You may also receive the canceled trust deed, trust deed secured your loan with title to your house, and which conveys the home to a lender if the borrower defaults.

Some call it “Release of Deed of Trust” or “Mortgage Release” as well.

 

d)Credit Report:  

You also need to check your credit report to make sure your mortgage account now shows a zero balance.

Your mortgage company may not necessarily complete this essential action on its own.

So in such cases sometimes you may need to initiate the process so that the paid mortgage appears on your credit report.

 

e)Mortgage Statement:

Another important document to collect is the Complete Mortgage Statement. It is a document stating that you’ve paid off your home.

It indicates the total amount of interest paid by the borrower for a given calendar year.

Mostly this document is in form of a statement it indicates the total loan availed, and total interest repaid towards this mortgage.

 

When to expect?- What if not provided by the lender?:

It may take a few weeks to receive your completed paperwork from lender.

If even after a couple of weeks of making your last payment if lender doesn’t provide any document, reach out to them.

Then the lender has to be contacted to check on the status of your paperwork and also to make sure you receive it at the earliest.

Not all mortgage companies/lenders follow the same procedure, and some may not provide you with any documentation at all.

If yours lender doesn’t, feel free to ask them for copies of your paperwork to have it for your records.

 

4) Keep your Documents in a Safe Place:

Now that the ownership of the home is transferred in your name, the next step is to safe keeping of these mortgage documents.

These are the most important document that signifies your ownership of your home.

It is better keep it and other related documents in an actual safe or even in a safety deposit box.

By chance in the future if someone questions ownership of the property, or claims that you didn’t pay the loan off in full, then you can show these documents as proof.

These documents are also required in the future in case you are planning to sell the property.

These document prove your complete and free ownership of the property.

So proper provisions should be made to ensure safe keeping of these mortgage documents.

In cases of lost documents:

If by any chance you lose these important document there is no direct risk involved, as the actual ownership and possession is with you only.

In such case these documents can be re issued by paying of further fee.

But it can be quite a hassle to recollect new duplicate documents and replace them with the lost ones.

One can claim a new deed by paying a small fee, it can be collected from the same county in which your house belongs.

 

5) Remove the Lender’s Lien:

The lender should notify the county or city recorder that it has canceled the mortgage lien on your property.

They do this with a Release of Deed of Trust, or Satisfaction of Mortgage, which legally releases your property from any claim by the lender.

It’s a good idea to request a certified copy of this document from the recorder’s office if the lender does not provide you with one.

If the lender does not have the release recorded, you must do it yourself by bringing the canceled note and trust deed to the recorder’s office.

 

6) Update Homeowner’s Insurance: 

If you had an escrow account set up, you will have to start making the insurance and property tax payments on your own after the completion of loan repayment.

When a loan is taken from a lender, it is a common practice that the lender create an escrow for the payment of insurance premiums.

Then the lender pays for insurance themselves and adds it to the total monthly mortgage payments.

Now that the loan repayment is completed it becomes the responsibility of the owner to pay for the insurance.

So you need to contact your homeowner’s insurance carrier to have the lender removed from the policy.

Since the lender no longer has any claim to the house, it should not have the legal right to any insurance payout in the case of fire or other damage.

If you don’t have the lender’s name removed from the policy, filling and collecting on an insurance claim can become complicated.

In that case for all the matters you have to contact the lender first.

The same problem will arise when you have to receive your insurance check indirectly through the lender.

So to avoid these problems, the name of the lender must be removed from the document after completion of final payment.

 

7) Update your Payment for Property Taxes: 

Like in case of  home insurance, chances are that the property taxes were likely escrowed by the lender at first.

Then the amount of tax is passed on to the monthly mortgage payments.

Once you’ve paid off your loan, you’re now in charge of making those payments.

In case you miss out on changing the name in documents again the property tax will arise in name of the lender.

For property taxes, contact your local taxing authorities to make sure you’ll receive the bills.

This way you avoid a hefty fine due to late payment.

 

8) Don’t Forget Taxes and Insurance:

Now that you’re taking over those payments, you must set aside enough cash to pay for both property taxes and insurance.

Experts highly recommend homeowners to create their own escrow account.

Opening a bank account is also helpful where the fund can be deposited to cover these expenses each month.

Generally lenders keep extra funds above and beyond the actually taxes owed.

You should get that reserve fund within a couple of weeks in the form of a check from your lender.

You can deposit it into your account and you can utilize the same amount as your mortgage each month.

This can act as a reserve fund until you have enough to cover your property taxes and homeowner’s insurance premium.

 

9) Use the Monthly Mortgage Payment Elsewhere:

A mortgage is a big financial commitment in your life and often it’s the last thing you need to pay off before you can consider yourself debt-free.

Now you can allocate the surplus money  towards other financial goals.

You have some surplus cash which you can spend whenever you want.

But on the wiser side, it is more important to utilize this opportunities to achieve other concrete goals such as a car, a vacation home, and other big purchases.

Even better, you can also keep part of that money in your bank account or in your retirement fund.

It can be used towards the renovations you’ve been planning for a long time in your home; now you can finish those projects and boost its resale value.

You can also make modifications to help you in old age and enjoy the latter years of your life in your beloved home.

 

10) Additional Financial Freedom:

Allocating your monthly mortgage payments elsewhere after making your final payment can give you more financial freedom to invest in your home and in yourself.

You no longer have to worry that you owe anyone any money.

For retirees or those who are nearing their retirement years, it can be one of the best feelings in the world.

The house is now yours—free and clear of any liens and issues about ownership.

Do whatever makes you feel great and happy! It’s an outstanding achievement worthy of a big celebration.

It is a proud moment: you own your home. You are now mortgage-free after all these years!

 

 

Melissa Dorman is a Licensed Broker with Yascha Group at Living Room Realty in Portland, OR. Follow Yascha Group  on Facebook.

 

 

The 5 Proven Steps to Declutter Your Home

Posted on by Melissa Dorman

The 5 proven Steps to declutter your home – Home Transformation Guide!

 

Why Declutter?

In the beautiful journey of life we own many big and small possessions that can make our home beautiful, stylish, and appealing. These provide us with a sense of pleasure and make our life comfortable.

But due to various circumstances in life we have to manage these valued items in our home. Sometimes we need to downsize when children move out. Other times we simply need to have less things in our home in order to free up some space in our minds.

Decluttering items is not an easy task due to sentimental and emotional attachment . Deciding which items to keep, which to give up, donate, or throw out will never be easy.

But too much clutter in our home can lead to chaos that can costs us money, time, and can even limit our productivity.

Though decluttering can be done at any time, some find it beneficial to do it at the beginning of the year. Thereby achieving a more appealing and organized home.

 

Important Steps in decluttering process

Best practices and techniques to declutter your home…

 

1) Clarity in decluttering goal :

The goal and reason behind decluttering should be clear enough. Clarity of goal provides focus in decluttering activity. In its absence one may start full of enthusiasm but may lose momentum to complete the process.

Setting clear goal and well planned action on the basis of these goals can lead to maximum decluttering.

Don’t just say to yourself that you’re going to organize your closet or sort through your cupboard.

Evaluating total available space and plan how items can be arranged in that particular area.

If decluttering is for shifting to new home furniture, kitchen items have to be set up keeping the new home in mind.

2) Focused execution:

By focusing on one room or area at a time one can effectively begin decluttering. There are many ways to focus your execution.

Some expert suggests cleaning easy items first.

Other suggest to begin with a place that makes you feel most uncomfortable.

Another way is to declutter urgent items first.

Break the job into smaller parts so you won’t get overwhelmed with the task at hand.

Taking it item by item will help you get things done in a short amount of time.

Crammed book shelfs, piles of messy clothes in the dresser, vanity drawers with makeup products etc can be decluttered one space at a time.

3) Trash disposal:

Experts suggests the easiest way to begin decluttering is to start with disposing of old, expired and unusable items first. One may not have many of it but these can be easily discarded.

Expired medicines, broken or expired items, old makeup cosmetic products, damaged electronic items and any canned foods items that crossed expiration dates etc are some of the items that can be discarded.

4) Specific Box assignment:

Experts call it the Four Box Method. For this method four boxes are assigned and named as Trash, Give away, Keep and Relocate. By classifying the stuffs accordingly and placing them in these boxes in organized boxes one can clear many items easily.

After finishing this process and reconfirming,  goods in trash can be thrown away, items stored in give away can be donated to needy or given to friends and relatives. One can sell them for extra cash as well.

Trash: Once the trash bin is full or all that are required to be disposed are collected, it needs to be thrown away immediately before waiting for filling any other boxes or it will again begin to clutter.

Give Away/sell: Items you do not need that can be valuable for others can be donated. A separate box can be used to keep items you decide to sell.

Relocate: The adult children use while they are back at home from college can be temporarily shifted to garage space or basement.

Keep: Items you have to keep with you which you use daily or weekly and that which are providing you some value are to be stored here during decluttering.

One needs to be strict not to include too much of things in this box just as it have emotional value but that do not provide actual value.

 

5) Overcome Emotional attachment:

Items received as gifts, inherited items, items purchased from first earnings etc have emotions attached with them. The items purchased from a family vacation or trip also has memory attached with it.

Even though these things can be connected to a specific memory in our lives, the fact remains that these are still objects, and can create clutter.

Some may be worth keeping forever, but they must be kept on the basis of real value and positive effect  they provide.

Not all the gifts one has received in lifetime are to be preserved. When evaluating an item, determine whether it is really worth keeping.

If you can retain the precious memory without keeping the physical object, then it might be wise to let go.

Few reminders:

After completion, reevaluation must be done to check if the goal has been properly achieved.
Once we are happy with the accomplishment in the organized home, we can plan to make the next home improvement project.
So whatever the reason was behind decluttering; to have a more organized home or to move to new house or other city or for simplified living; decluttering always provides a positive result.
Melissa Dorman is a Licensed Broker with Yascha Group at Living Room Realty in Portland, OR. Follow Yascha Group  on Facebook.

Who should attend the Home Inspection process?

Posted on by Melissa Dorman

A review of various scenarios

Property Inspection is one of the most crucial steps, whether you are going for a move-in ready home or buying a fixer-upper. Working with a skilled inspector ensures you are making an informed decision on your purchase. It reveals the major defects in the property, which can further increase the costs for buyer after closing.  If done properly, you can create a strategy for negotiation and necessary repairs.  If done poorly, it begins to unravel, and the whole thing falls apart.

Property inspections are a critical piece to the home buying and selling process, yet it is amazing to note that proper representation during the inspection process is often misunderstood and neglected. By proper representation, I mean preferably who all should attend the inspection process to make an informed decision.

Different experts have varied views regarding which stakeholders should attend the home inspection process.

Some believe that the buyer’s agent does not need to attend the Property Inspection.

Some others have a view that they must.

Another set of experts have their view that only the home Inspector should attend the process.

In some market segments such as unique luxury properties, the listing agent, the buyer’s agent, and the buyer, may be present at inspection along with the Inspector.

To begin with the main point of discussion that generally arises, which is whether the buyer agent should attend the inspection.

Views regarding the presence of Buyer Agent During Home Inspection:

  • Some buyer agents do not attend the process as not to influence the inspector. This way they also avoid any chances of argument with the inspector. They still suggest their buyer clarify any issues with the home directly with the inspector. Another supporting view is that the buyer’s agent is not the one buying the home, so should not influence the buyer about what defects are acceptable or non-acceptable.
  • Some other agents attend purely to be a part of the sale process but refrain from making personal suggestions. What may be a major issue for an agent,  may be a negligible issue for the buyer.
  • Some buyer agents always attends the process to be on upfront. This is what our team does. This way we can begin the negotiation process immediately. By being present buyer agents can also be aware of common issues arising in a particular area or locality like termite issues, seepage due to dampness etc.

Views Regarding the presence of Listing Agent, Buyer and Buyer’s Agent During Home Inspection:

Major five reasons suggested by experts regarding why listing agent, buyer and buyer’s agent are expected to be present during the home inspection process are:

1. All parties can learn so much valuable information at inspections:

Buyers can know about the condition of the home first hand, the listing agent can explain to the seller’s about any serious issues that need immediate and fast attention. The buyer’s agent can explain it better to buyers in simple words. Further, both the agents will gain immense knowledge that they can carry with them throughout their career.

2. Home inspections can be written a number of different ways:

It depends on a number of factors such as how much of a seller credit can be used. They can easily list major repairs the buyer wants. Any negotiation process can be initiated based on the condition of the house. All these can be included in the Home Inspection report clearly.

3. Being present at an inspection also helps with the repair request process:

When all parties are present only the major issues in the report will be points of discussion. Viewing the inspection process first-hand provides the ability to push back on minor items; knowing that the inspector said it wasn’t a concern.

4. It ensures that all parties arrive on the same page:

The findings of the home inspection can make or break a deal. And since everyone is directly present during inspection everyone has a clear idea of what to expect and how to proceed. A clear decision can be taken whether to complete the process after price negotiation along with major repairs or to drop the purchase plan completely, in case the buyer finds the issues are too great.

5. Fair Inspection Reporting:

Sometimes home inspectors write a report with all sorts of red flags. Buyer agents try to use this as a way to negotiate with the seller to get what they want. So sellers generally have to accept it so that the buyer doesn’t cancel. Then the seller ends up having to start all over with a negative inspection report. So when all parties are present during Inspection a fair and unbiased inspection report can be expected.

Conclusion

So the final conclusion can be made that it is most beneficial that listing agent, the buyer’s agent and the buyer, are all present at the time of inspection along with the inspector. Another point is that the buyer agent should refrain from influencing the buyer’s conclusions about the home inspection. The presence of all the above parties should act as a helping element in the complete home sale process and should discuss issues amicably rather than starting a war.