Adventure and Journey - Episode 3
Do you remember the TV series MacGyver? MacGyver could make any situation work. I used to love watching that show!
Always up for a challenge, I get a kick out of trying to "MacGyver" my surroundings. During the build period of our new home, our RV life (at the Havasu Falls RV resort) has necessitated some keen MacGyver skills.
One goofy MacGyver fix is to use chip clips to hold a towel "just so" on the fence behind our trailer. While we sit outside in the evening, this arrangement blocks a bright light (from the crematorium next door) that shines on our camping patio. Egad!
Okay, I'm not saving the world, but a little luxury like this can make everything feel alright. If I can laugh at myself, this will keep me sane on this Adventure and Journey!
How did we get into such a predicament?
We sold our perfectly good home in California so we could move to Arizona before our new house was built. What was I thinking?
Well, let me tell you, I was thinking with dollar signs in my eyes, and this arrangement will work to our benefit!
Let me share some home selling and buying tips I've experienced through this process.
Before we put our house on the market, I wanted to get really serious about investigating the sell/buy process and how I could streamline the efficiency.
Naturally, my first step was to reach out to my dream team for advice.
My dream team consisted of professionals who impacted a variety of aspects during this financial transition. They included my tax professional, estate attorney, insurance agent, mortgage lenders, realtors, and an estate sale wiz.
However, in this episode, I'm going to focus on my work with lenders and realtors. Don't worry, I'll get to the others in due time.
Mortgage Lenders
As a financial advisor, I can not stress strongly enough that a buyer should speak with a mortgage specialist before house-hunting.
They will help you determine the amount of financial debt you can afford to take on with a mortgage. If your credit isn't perfect, they can provide tips for improving your credit score.
Additionally, Bill Mulcahey, Senior Mortgage Advisor at CrossCountry Mortgage, LLC shares some details about pre-qualification.
“In today’s competitive real estate market, as a home buyer, you need all the advantages you can get to try and get your offer accepted. That’s where I come in. I will get your mortgage approved right up front by my in-house underwriting team. That way the seller knows your loan is guaranteed to work, giving you a competitive advantage.”
“Most lenders will only get your loan ‘pre-qualified’ which won’t fly in this market. You may have heard of circumstances when a buyer is pre-qualified only to find out when they find their dream house, their loan gets declined, or the terms get dramatically changed for the worse.”
Last year, Martin Quiroz and I spoke in detail about the types of mortgages out there and the process of working with a lender. For more tips, watch this YouTube video interview of our conversation: Martín Quiroz of USA Homes and Loans.
Selling and Buying
After determining an appropriate mortgage obligation you can afford, if you are a first-time buyer, it's time to begin house shopping. If you already own a home, not so fast, now you need to break out your mop and a bucket.
It's a shame the phrase buy/sell rolls off the tongue so much easier than sell/buy. The transactional sequence is quite impactful.
Nobody wants to be saddled with two mortgages at once. Yet, this can easily happen if you buy before you sell!
How we did it
First, Nolte and I bought a piece of land. This expense was not too astronomical in price and we already had the cash for the purchase. Next, we prepared for the sale of our home. We had quite a bit of equity built up in our home and we received the full asking price. With the profit from the sale of our home, we can now build our new home.
We worked with realtor extraordinaire, Dana McCarthy. Dana helped us prepare for the sale of our home. She shared tips on getting our home show ready.
Outside of the home:
Ensure plants look healthy and properly trimmed
To eliminate debris, use a blower on your driveway
Clean and brighten your entryway (remove cobwebs, sweep the front porch, turn on the entry lights)
Have your windows professionally cleaned
Inside the home:
Minimize the clutter by removing personal items like photos and collectibles
After removing family portraits, patch and paint the nail holes in the walls
Add a pop of color with houseplants or small flower arrangements
Be sure it is sparkling clean (wipe down neglected baseboards, and handprints from doors and appliances, and remove unsightly items like toilet brushes)
We were quite pleased when we met the buyers of our home. One of their first comments was that they had started naming the houses they toured. They called ours the clean house. They had seen so many homes that had cobwebs or simply were unkempt. This garnered us the full asking price.
Put some good old-fashioned elbow grease into your home sale preparation. It can really pay off!
Conclusion
A home is a major investment. Go about making this investment with the guidance of a qualified professional circle. Lean on these professionals to help you make the best decisions about the execution of your purchase.
If you have a home to sell, do everything you can to get the top dollar. Don't poop out. Apply yourself and earn a good return on your investment.
Do you have financial questions?
Please reach out:
Marianne Martini Nolte, CFP®
Imagine Financial Services
Website, www.imaginefinancialservices.com
Email, mnolte@imaginefinancialservices.com
Phone, (760) 472-5155
About the Author
Marianne Martini Nolte, CFP® provides tax-smart investment management and financial planning for women.
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