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When I was 25, I purchased my first home. It seemed to be the right thing to do and I thought that it was definitely the next step in life. Everyone follows the steps, right? You know the steps, college, find a job, get married, buy a home, and have a kid… Well, I did these in some order the wrong way, but anyway, I was single and I figured, hey I should own a home.Continue reading
Making money on your home is key to many of you. My clients report that they simply would not consider owning a home that they did not make some profit on. The thought of taking a check to closing is repulsive. Here is what I want you to know about making money on your home.
The obvious things about home ownership that make you money…
The whole time that you live in a home, if it is your primary residence, you are saving on your taxes. In other words, you can either use your money to pay for a place to call your own that you are buying, or you can pay more taxes.
The home ownership experience lends itself to your higher self-esteem. Self-esteem will lead you to making more money in all aspects of your life.
The home gives you a place to do all of your handyman experiences on your own dime with your own result of profit, or not.
As your mortgage payments are made over the years, your equity stake in the investment in your home, in most cases, will rise and your debt will fall.
But, on to how to make money on your home…
Keep your home maintained the whole time that you live there.
Keep your home clean and especially clean it well when you are selling it. Clean homes make 3 to 4% more money than dirty homes.
Market your home at a high price instead of what your naive neighbors or low-balling agent of the neighborhood recommends. Go with your gut and go high. You will never get a high price if you don’t ask for it.
Sell your home with a listing company that has low listing commission fees. Most homeowner’s profit is used up in selling commissions. You now have alternatives.
Sell your home Staged and maybe throw in some furniture.
Get every tool available to make your home look its best on the internet. Virtual tours, Staging, Videos and anything else that you can find. The first showing to potential buyers is on the internet. By the time that the buyer comes to your home in person, it is really the second showing.
Offer a home warranty in lieu of some of the inspection items. If this is not enough for the buyer, tell them that you will give them 5 service call deductibles to cover future costs.
To make a good deal on the sale of your home, it is imperative to make a good deal when buying it. Use an experienced agent to help you buy. They are a valued resource and cost you nothing. In fact, in my company we split out our commission with our buyer clients for helping us find them the home.
When I was 25, I purchased my first home. It seemed to be the right thing to do and I thought that it was definitely the next step in life. Everyone follows the steps, right? You know the steps, college, find a job, get married, buy a home, and have a kid… Well, I did these in some order the wrong way, but anyway, I was single and I figured, hey I should own a home.
I found a for sale by owner who wanted to sell his home and happened to have an assumable mortgage (this was the early eighties). The house was
$35K in Lubbock, Texas where I went to school and was around the college. Now these were not palaces, but they were nice homes. 2 bedroom, 2 baths, living room, kitchen and great, huge yards.
I believe this one step did send me on a path of accomplishment. I took one of the biggest steps in life, blew through it and have gone on from there. Do you think that taking one of the most honored dreams in America and accomplishing it is the path to future accomplishments?
Anyway, now, to the reasons to own a home in my opinion:
1. Instant self-esteem – the fact that you have earned the right to own a home means that you have saved money (in most instances), have good credit that a bank sees as okay and that you have the guts to commit to living somewhere for awhile because you can’t leave as easily as you can when you rent somewhere.
2. Building a nest egg in your equity instead of paying rent. Some people really rely on this equity because they figure that they can not save any other way and they were wasting the money with their landlord.
3. Plenty of handyman experience opportunities. It is true that the more that you attempt in life, the bigger your self-esteem. Homeownership, unlike renting, gives you an opportunity to tackle big and small jobs with your own property at risk. In my house, I did projects all the time, like the time that I painted my kitchen pepto bismol pink. Now that was some risk!
4. You can become a landlord if you like. Many people don’t know how to make someone else stick to a contract. This definitely tries your skills.
5. You get a tax savings. The structure of our current tax model allows the government to pay part of your payment for you because you get a tax break.
6. You establish roots and security. This can be good or bad for some people but most people say that they would prefer to have a place to call home, which I believe means that they own the home.
7. You can get as many pets as you want – county ordinances allowing of course. I made the mistake of picking up stray dogs often. No one said that I couldn’t!
8. And of course, the most frustrating part of homeownership for many of us is… you get to use your emergency fund often while keeping your temper. There is nothing more frustrating than having an unexpected appliance leak all over the floor and ruin the flooring while having to replace the appliance too. This is all part of making you stronger… if there are no difficulties in life, you are dead. One of the six human needs is uncertainty according to Tony Robbins and this will certainly add a little drama and variety to your life.
So, that is my list of why everyone should own a home. If you have not had the opportunity to experience any of these yet, jump on the bandwagon. I will see you there.