Great information about what to do if you have recently bought a home, or are thinking about buying a home from Eric Tyson, author of Home Buying for Dummies & Real Estate Investing for Dummies. The following is courtesy of Erik Braunitzer, a member of the creative writing team at Prudential Douglas Elliman.
If you have recently bought a home, or even if you are thinking about buying one, you will find it beneficial to listen to the broadcast titled “10 Things to Do After Buying Your Home.” This broadcast was first heard on the “Eye on Real Estate with Dottie Herman” radio show, and it includes a featured talk between the CEO of Prudential Douglas Elliman, which is Dottie Herman, and Eric Tyson, who happens to be an experienced personal finance expert and author.
On the morning of June 2nd, as Dottie opened up the broadcast, she stated, “Getting the money to buy is hurdle one, and paying is hurdle two.”
She then briefly discussed the benefits associated with virtual home staging, as well as those associated with enhancing curb/Internet appeal. Soon after she introduced Tyson, who then began the interview by talking about his motivation;
“A lot of the information that was out there frequently was written by well intentioned journalists, but journalists who didn’t really have that in-the-trenches perspective.”
Tyson then went on to explain how he had partnered with real estate professionals who had extreme experience in the field, and that they had wrote “Home Buying for Dummies and Real Estate Investing for Dummies”.
Before he spoke on some of the ideas that buyers should consider implementing right after buying a home, Dottie and him discussed matters relating to the recent costs of homes, as well as how some buyers were regretting buying their homes. Tyson then followed this part of their chat by saying that those people who were considering purchasing a home that could afford to, should. He said this and explained that this statement was only meant for those homebuyers who were confident in their present financial situation, as well as their current employment situation. Soon afterwards, he narrowed down a list of individual tips that could be followed when purchasing a home. They are as follows:
Make sure the home is affordable: Tyson claimed, “You have to look at your overall financial situation to figure out how much house you can truly afford.”
Evaluate your personal circumstance: Look at the things you know for sure, such as your finances, the ability to pay back loans, as well as your ability to put your kids through college.
Look at your comfort level: Always make sure that the decision processes in making your home purchase are angst free.
During the broadcast, things became very interesting when Dottie started to point out the 10 points Tyson stated in his book that related to what should be done when purchasing a home. They are as follows:
1) Avoid Solicitors: It is important to recognize when someone is trying to solicit you into buying a home. Avoid these types of people and loan offers.
2) Partner with an experienced Financial Planner: More on this topic can be found in Tyson’s book.
3) Partner with a Real Estate Team that has Experience in the Real Estate Field: Tyson went on to explain in the interview that all buyers should investigate for themselves the real estate team that they are planning to seek services through. He says, “Learn enough so that you can evaluate these people and make a good hiring decision.”
4) Consider Refinancing: Due to the fact that interest rates are at a very low level, people should consider if they can benefit from refinancing. Tyson stated during the interview,
“It’s a situation complicated by all the financing options available…You know, historically, the motivation to re-finance comes from the ability to save money, and re-financing always costs you money, so what you have to look ‘how many years is it going to take me to re-coop the financing cost, and is this a worthwhile trade-off?”
5) Make Electronic Payments: In order to miss making payments on time, Tyson suggests that making house payments should be done so in an electronic manner, as missing a payment can significantly put a damper on a home purchaser’s credit score.
6) Setting Cash Aside: In response to Dottie’s question relating to whether or not there is a standard rule of thumb when it comes to emergency funds, Tyson said, ““if things are…volatile, you should have at least 6 months worth of living expenses [saved up for emergencies].”
7) Mortgage Insurance: Instead of buying a mortgage insurance plan, Tyson suggest that a life insurance policy is generally more beneficial. Tyson stated, “The life insurance decision comes down to ‘how many years worth of your income are you trying to replace?”
8) Always Watch Your Tax Assessments: This is especially true for those home purchasers that buy a home in which its market value is based on current market values. Tyson says, “Sometimes local towns and municipalities get it wrong.”
9) Receipts Relating to Home Matters: Tyson suggest hanging on to every homeowner’s document. Hanging on to these documents helps to sell a home at a higher profit-making price than it would be when compared to not having any type of renovation or updating documentation.
10) Smell the Roses: Tyson mentions in his book that when buying a home, it should fit into a home purchaser’s comfort level, as well as help the person practice self-preservation.
Tyson has written five national best sellers, with one of them obtaining him the Benjamin Franklin Award.
(Images and post courtesy Prudential Douglas Elliman)