BHHS of Central Washington Real Estate - Lesleigh Jacobs

My Blog

What if YOUR CHILDREN chose your next home?

Have you ever wondered what kind of a home you would be living in if you allowed your children to choose your next home? Would it be the great kitchen that you admire and want to show off to your friends?  Would it be that shop out back with the carport attached where you can work on a car?  Would it be because of the master bedroom with master bath and jetted tub where you know you will be spending time soaking away those stresses from being over worked today?  Make a list of the top 3 things you and your husband would deem almost a necessity in order to purchase a home and then go have your 3 children make their own list!  Wouldn't that be interesting to see what the kids really care about in a home?

Of are not going to allow your children to choose your next home but what it will do is may show mom and dad what is really important in the minds of their children.  We may be way off base when it comes to finding a home that meets the needs of the entire family.  Give it a try and let me know what YOUR chidren would choose as absolute necessities in a home.

What Is A Bargain Anyway?

The Profit Is In Your Hands!

"Make It Big....Or.....Make It Small"
There is alot of confusion today among novice buyers and first time investors.  What is a bargain anyway?  Is a house a bargain because it has a cheap price that is affordable to our pocket book?  Is a house a bargain because it has a reduced price tag that perhaps was $10,000 above what is being asked at present time?  It a house a bargain just because the listing says it is well under appraised value?  How can you look at a piece of property and tell whether it really is a bargain?

These are the kinds of questions that I think buyers today are not realistically answering.  Once out the doors of the investment seminar, buyers are dashing for what might seem at first glance a true bargain.  What I am seeing,though, are buyers who are getting way in over their heads and losing money when the goal was to make a profit in the first place.  It is sad to see homes where buyers have started projects with good intentions but finished in a foreclosure. Some get a home ready for resell only find themselves short of either time or money and the home ends up in the hands of another investor who can easily finish the projects, get the home back on the market and sell for a profit. 

Not knowing The Going Prices Of The Area
Many first time investors make a huge mistake by not considering the going price of the neighborhood.  They often buy a small home because it was cheap.  As they begin to tear down all the walls to the studs, the cost of putting the home back  together forces the investor to over spend for the neighborhood.  What he neglected to consider was this:  If he were to raise the price tag, who is the potential new buyer?  What would they expect to have in the home?  If he spends too much to get the home up to that potential buyers expectations, his profits are lost and his labor has become a nice communitor service project!  One of the questions he should have asked himself is: would that buyer be willing to spend that much money for the neighborhood he is thinking about or would he go to another that was more compatible in home prices?

Not Sticking With A Budget
One of the worst things anyone can do is turn his pocket book loose in a store without some kind of guide lines and controls for how much he can and should spend.  Doing your homework before you make an offer will allow you to calculate your expenses compared to projected profit.  Keep in mind, the more you spend, the less profit goes into your pocket if you are not able to recoup it when the house sells.

Over Remodeling
Often the novice investor will start to remodel the home as if it were his own.  The problem he faces is he thinks that he must put in the same quality of materials as if he were going to live there.  But making a profit on a home is not about what you like or dislike.  It is about finding the best for the least amount of money so that in the end, more profit stays in your own pocket.  It is about finding out what today's buyer likes and then attempting to produce that product to meet the buyer's needs.  You must be as good a shopper as you are a remodeler!

Not Calculating The Cost Of Resale
Accurately calculating the most probable price your home can sell for helps you stay within the boundaries of your budget for the home.  When you try to estimate what the home can sell for, take into account the current market place, the average price of like homes and what kind of discounts or seller contributions you might have to contribute to in order to secure the right buyer.  Being ready means being smart about ALL the costs of buying, fixing and flipping homes.

Not Considering Who The Next Buyer Will Be
Many novice investors I work with have never considered who that next buyer will be.  Every price range brings a potential buyer from a different life style, financial status and a multitude of tastes, wants and desires.  Considering whether the new buyer in a higher price catagory would even consider buying a home without a garage or with vinyl floors would be good to know wouldn't it?  Do your homework before you pick up that next investment property. 

Here is the formula for making a good profit in today's market place:
  • Do Your Homework
  • Buy Smart
  • Budget Wisely

This is a great market place to make money if you know how to do it wisely.  It has been said that the time to make money is in a buyer's market when prices are at the lowest. 



I see it every week...Buyers sitting on the fence while opportunities are slipping by to get in on a once in a life time opportunity to purchase when prices are down and interest rates are too.  Never before in history has this occured.  We know it will not stay this way very long, so I wonder what keeps people from stepping forward to grab on to some of the best deals out there?

Is it that Buyers think there could be a better deal coming down the road?  Is it because they feel that interest rates might just drop some more?  Is it because they have not been able to sell their home and just can't buy yet?  What ever is keeping Qualified Buyers from stepping forward might be the very reason that they also have trouble getting someone to step forward to purchase their home.  What ever the reason, it is an every day occurance and many wonder what it will take to get buyers off the fence and step forward to make an offer on good homes with good prices.

The question has been brought up as to whether it is wise to make an offer on a home before putting a home on the market place?  One of the best answers is it depends. If your home is ready to go on the market and it is in a hot price range where homes are moving rather quickly, I would say go ahead and find your home first.  However, in this slow market place, it would be wise to find two or three homes that would meet your needs, make an offer on one contingent on the sale and closing of your home and then agressively market your home.  If you cannot get a sale in time and the sellers won't extend the closing for you, you still have not wasted the time trying to get your home ready and onto the market place because it is already for sale.

What are your thoughts about why Buyers are sitting back on the fence?

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