Ellen B. Davis

Ellen B. Davis - Realtor



Home Buyer Tips
What is That House Worth
Ok, you've searched the MLS or the home book and you have found just the house you were looking for.  Now is the time to have a CMA done on the property.  This will let you know if the selling price of the home is in a range in keeping with the neighborhood.  Are you getting a good, or great price, or should you offer less than the listed price.  A FREE CMA will help you answer these questions.


Advantages of Bigger Down Payments
When you put a 25% down payment on your purchase you can avoid the CMHC premium. More importantly the larger the down payment, the lower the amount of interest you will pay over the life of your mortgage. It is important to note that it may not be wise to stretch yourself to increase your down payment and end up borrowing on credit cards or a line of credit at a higher rate.
Why Buying a Home is a Good Idea
The Best Investment :

As a fairly general rule, homes appreciate about four or five percent a year. Some years will be more, some less. The figure will vary from neighborhood to neighborhood, and region to region.

Five percent may not seem like that much at first. Stocks (at times) appreciate much more, and you could easily earn over the same return with a very safe investment in treasury bills or bonds.

Presumably, if you bought a $300,000 house, you did not pay cash for the home. You got a mortgage, too. Suppose you put as much as twenty percent down – that would be an investment of $60,000.

At an appreciation rate of 5% annually, a $300,000 home would increase in value $15,000 during the first year. That means you earned $15,000 with an investment of $60,000. Your annual "return on investment" would be twenty-five percent.

Of course, you are making mortgage payments and paying property taxes, along with a couple of other costs. However, since the interest on your mortgage and your property taxes are both tax deductible, the government is essentially subsidizing your home purchase.

Your rate of return when buying a home is higher than most any other investment you could make.

Why You Should Not Buy a Car or Furniture

When you get a raise or accumulate some savings, you may find yourself confronted by an innate instinct of modern civilized men and women. 

The desire to spend money. 

It begins simply, by going out to restaurants, then accelerates to purchasing clothing, electronic gadgets, furniture, and you may even buy a "brand new car."

If you're married or ambitious, a few months later your thoughts eventually turn toward buying your own home.  Or a move-up home, if you are already a homeowner. 

Next, you contact a loan officer to get pre qualified for a mortgage loan.  You state your desired price and how much you can put down.  You provide your income and may even supply pay stubs and W2 forms.  The loan officer methodically crunches the numbers (by telephone, in person, or even over the internet). 

"If only you didn't have this car payment.."

Buying a Home With Resale Value

There are many things that should be considered when buying a home. Since most home buyers expect to buy a bigger and better home someday in the future, resale value is an important factor in decision-making. You use the proceeds from selling one home to buy the next one.

While no one can guarantee that your home will grow in value, there are steps you can take that maximize your potential gain.

"Location, Location, Location"

"Location, location, location," is a very common phrase in real estate literature. Your agent may even throw it at you when you ask for advice about buying a home. However, what does "location, location, location," actually mean? Why repeat it three times?

"Location" is repeated to emphasize that it is very important to the resale value of your home. The idea is to buy property that will appeal to the largest number of potential future buyers. A careful choice of location can minimize potential negative factors on future resale value, and maximize positive factors.

Focusing on resale value requires you to make several different "location" choices. The first choice you have to make is "which community?" At the very least, you should narrow your choice down to just a few local communities.

Buyer's Remorse

Did You Make a Huge Mistake?

When you were in  hot pursuit of the "American Dream" you were excited about the future and owning your own home -- researching neighborhoods, searching MLS sites on the internet, viewing home buyer's magazines full of appealing homes that were just "minutes from the beach" with "fantastic views" and "cozy family rooms."

Next came the really good stuff - looking at houses. Full of imagination and optimism for the future, you wandered about each home envisioning a happy and contented life for you and your family. The first house might have been "too big," and another was "too small," but finally you found one that was "just right."

So you made an offer and waited anxiously and excitedly for the counter-offer. Finally, you and the seller agreed on terms and you bought yourself a brand new home!

Congratulations! Break out the champagne and celebrate!

And then .

Later that evening or perhaps the next day, you started worrying.

Did you make the right decision?  Can you afford it? Is it the right time? Should you have waited? What if you lose your job? What if this happens? What if that happens? Anxiety and stress set in. Sleep may be hours in coming.

This is a normal reaction to buying a home.  It is called "buyer's remorse."

Try this.

Get a pen and paper right now and draw a line down the center of the paper. Calmly and logically, think of all the advantages to buying a home and write them down on one side of the page. Afterwards, list all the disadvantages on the other side of the paper.

After you get done with your lists, you may think back on your anxiety and think you were being silly.  After all, buying a home is obviously a good decision.  Your list proves it.  But your reaction was normal and shared by many.  You see, buying a home is not entirely a rational process.  It is an emotional process, too.

You will not be totally stress-free, but it will help.

 Kentucky real estate
 Kentucky real estate

You won't need any help and would be able to do it yourself. You would be able to complete all the formalities of getting a mortgage if you have the required knowledge about the industry. If you are familiar with the current happenings then you will be able to tactfully negotiate with the lender to get the best deal. On this page you will get a huge lenders directory, which will help you select a lender from one of the best lenders operating in California. And if you have any queries then you can visit the mortgage forum of this site to get all the answers. At Mortgage Fit home page you will get clear and easy navigation paths to all the sub section of the site to help you browse through literally a library of information on mortgages.