|The High Cost of Bidding Wars|
|We talk about leaving emotion out of the home buying process, but for many, that’s easier said than done. When people find their dream home, they get emotionally attached to it, even before their bid is approved. Emotions take over and sometimes they engage in bidding wars that significantly increase the price of the home. That’s the point where your dream home becomes something of a nightmare.It’s a tough predicament. You’ve identified the place you want to spend the foreseeable future with your family. In your head, you’re already running a film of wonderful family moments that have yet to happen. But for you, at this time, nothing can stop you from buying this house–including a rival bidder.
This is a huge investment. You know what you want to spend, but the other bidder has increased her bid. It’s over your budget limit, but you get creative and justify the extra cost and run some numbers in your head. Emotionally, you think you can swing it, but in actuality, you’ve created more debt than you had imagined.
You’ve won the bid, but in the end, you may have lost the war.
Did you know that your bank assesses your home’s value based on the the previous three months of similar home sales? When you engage in bidding wars and artificially inflate the cost, the bank will not factor the new cost into your loan. Therefore, you are responsible for potentially thousands of dollars you hadn’t intended to spend. This money is due to paid by you at the closing. Can you afford to fall deeper into debt after making quite possibly the biggest investment of your life?
Don’t be a casualty of the bidding wars. Sometimes all it takes is some sound advice from an experienced, objective mortgage professional–someone who won’t ever get caught up in the emotion of making such an important purchase. Call me at 617-965-1236 if you’re even considering purchasing a new home. I’ll give you all the critical information and advice you need to make the decision that works for your budget and your life.
|August’s Home Value Improver|
Late Summer Vacation Tips
More and more people are taking their vacations in the late summer. If you’re one of the many vacationers packing for a trip before Labor Day, here are a few tips to make sure you can enjoy a stress-free break from everyday life.
1. Make a List of Errands. You know that feeling you get just as you head to the hotel pool area when you realize you forgot to buy sunscreen? Make a list of errands you need to run and you’ll be better prepared.
2. Pay Bills. No one likes to come home to a house with no electricity. Paying your bills ahead of time will help you create a better spending budget for your trip and give you peace of mind knowing all your bills are current.
3. Hold the Mail. Did you know a call to your local post office will hold your mail while you’re away and your letter carrier will deliver everything upon your return. No need to bother the neighbors to check your mailbox. If you have a newspaper delivered, be sure to stop delivery while you’re away.
4. Clean Out the Fridge. Remember that delicious leftover salmon dinner you planned to reheat for lunch the next day? It’ll be black (or maybe green) by the time you get back, unless you toss it along with other perishable foods.
5. Who’s Watching Fido? People can be so consumed with getting out of town, they sometimes for get about their beloved pets. Make arrangements with a responsible person to make sure your pets are cared for. There are also many reputable dog-sitters and kenneling companies that can allow your pets to have a vacation of their own.
6. Clean Up. In the frenzy involved in packing for the parents and kids, your house may look like a mini tornado passed through. The last thing you’ll want to do when you return from a relaxing excursion is to clean up a messy house. Also, keep an eye on things that could catch fire. Clean out your lint traps, unplug appliances and shut down your computer.
6. Lock Up. It’s not just your front door that needs locking. Go through the house and check your windows as well as the bulkhead door leading to your basement. Knowing your home is properly secured will help you enjoy your vacation without the stress and worrying–and that’s what vacations are for!