Suze Orman Visits MOMSWHOBUYHOMES

It is with great pleasure that we feature Suze Orman who had these important reminders about real estate. As always remember to take a deep breath and read on...


Real Estate Reality

By Suze Orman

The incredible rise in home prices over the past few years has made real estate the "it" investment. We're looking at homes as if they're ever-rising stocks that will never decline in value. But thinking like that can land you in big trouble.

Don't get me wrong: Real estate is a terrific long-term investment, but the key is long-term. Your house is a place in which you and your family will live. Over time you should also expect its value to rise at about the rate of inflation, not at 15 percentage points above it. Even Federal Reserve chairman Alan Greenspan, who fueled the current real estate mania by keeping interest rates low, has said that he expects the hyper-growth to end and that we could even see a decline in prices.

Condos are especially vulnerable. People have been buying up units they'll never live in, hoping to sell them quickly for a profit. But recent sales data shows that condo prices are already beginning to slip. Condos are also spending more time on the market than in previous months.

The only reason to buy now is if you intend to live in the condo or house for at least five years—otherwise, you're taking on a huge risk if we slide into a down market.

If you do have long-term plans and decide to buy, be very careful with the type of mortgage you choose. Steer clear of short-term adjustable rate mortgages or interest-only options. The only types of mortgages that make sense are traditional fixed-rate mortgages or longer-term adjustables (often called hybrids) with an interest rate set for five, seven, or 10 years.

If you're itching to take a risk, buy a pair of avant-garde designer shoes. But when it comes to real estate, you'd be wise to play it conservative.

Another deep breath and you are on your way!

Warm regards,
Mariaaaaaaaaaaaaaa
:)

FEAR VS TRUST - which will YOU "buy" into?

I have a very different background than most other real estate agents mainly because of my degrees (Boston College-BA & Simmons College-MBA) and my almost 2 decades working for some of the largest public relations firms in the world. Additionally I've also developed a deep passion for studying human behavior. With that kind of background it is incredibly interesting to see people's reactions to what is happening in real estate.

The media focuses on what sensationalizes. They do this because it hooks people and that is how media outlets survive. For example, if you're flipping through channels and you hear, "dangerous storm coming" you are much more likely to stop on that channel, then if you hear, "beautiful weather expected". It's human nature, part of our genetic makeup linked to helping to keep us alive. We don't live in the same dangerous world as our great-great-great-great-great-great-great-great-great grandparents but we still pay attention to those triggers.

When it comes to selling or buying in this market, fear is what is still selling papers. What I see happening is that people are so fearful that they FREEZE. They let the fear override every fiber of common sense they have. One of my clients Steve (not his real name) was going to help out his daughter and her family by buying a bank-owned property. This property was in great shape and listed for less than half of its value, even for these times. Steve is the rare person who saved a significant amount of money and could buy this house oughtright with no mortgage and it would still only affect a small portion of his money. After much back and forth, Steve decided to follow the advice of his financial planner and keep his money in stocks/mutual funds. (BTW, the person he went to for advice is also the same person who would be benefitting from his keeping his money in the markets.) Four days later the market crashed and he lost a large chuck of it. Had he bought the house he would have lost none of it and would actually have built equity because it was being bought way below market value. In the meantime, that house sold for even less that it was advertised for. That FEAR helped Steve make a decision that was not in his best interest. Even if the markets had not crashed he still could not make as much money in the markets as he would have from this deal.

When decided what to do for your specific situation, use your breath, relax, write it down, talk it out. See what makes sense and what feels right. Always remind yourself that you are always safe and that everything is happening in divine order.

LISTING 101

In this HGTV-loving society what is acceptable in a house has dramatically changed. When buyers look at a home they want it to be like they see on tv. The smartest thing potential sellers can do is spiffy up their home. Yes, it can be a pain in the butt, BUT it is part of how smart people sell their home. While you live in it you can do whatever you want. When it's time to sell it you need to move it from the status of HOME to HOUSE and market it like you would a product. Not fully addressing this issue and swimming in the emotional attachment of a property will cost you BIG money. Get rid of all of your personal stuff, stage it, de-clutter. It is a form a semi-moving. Most of my clients have a really hard time with this. Many do nothing and it costs them time and money, even if they eventually do it. The people who make the most money are those who take this step seriously.

Warm regards,
Mariaaaaaaaaaaaaaaaaaaa
:)

www.brickhouserealty.com

A Challenge Out There...Moms Grab Your Hammers!

Hello Moms!

Thanks for coming back and getting another dose of fun and informative realty reality. Most real estate agents cover only a specific area so they get stuck in just the info for that area. I like to shake things up a bit so I did a seach today for ALL single family homes in Massaschusetts that are FOR SALE and found some interesting information:

-There are 28,521 for sale.
-429 were listed in the last 3 days.

Ooops! Just to show you how crazy the market is, this morning I started writing this blog, went to a long meeting and went back to check the stats a few hours later and now the numbers are:

30,361 for sale!!! WOW! THAT IS NUTS! This is only in Massachusetts which again proves that it is a FABULOUS time for buyers!

Ok, so with these new results can you guess what the lowest priced home in Massachusetts is this week? (drum roll)


166 Brombach St, Pittsfield, MA
6 room, 2 bed, 1 bath Ranch
$35,000 (isn't that the price of a car???)
Approx. Living Area: 1294 sq. ft.
Approx. Acres: 0.19 (8276 sq. ft.)
Heat Zones: Forced Air, Gas
Parking Spaces: 2 Off-Street
Needs a lot of TLC.

For explore more fun properties like this go to http://www.brickhouserealty.com/ and sign up to view properties. Don't worry we won't sell or give your info to anyone not even to our own moms!

Have a fantastic week!
Mariaaaaaaaaaaaaaaaaaaaaa
:)

A Visit From Our Mortgage Momma and Friend, Mona!

Every once in a while I will invite trusted friends and colleagues to guest blog. Their wisdom helps all of us lead better lives. Our very first guest is the wonderful Mona Wong who is the mom of two of the cutest twins you've ever seen! (just had to throw that in ;) My clients who work with her have overwhelming loved the experience. Today she has honored us with a bite of financial wisdom. Remember to chew on it!

Big hugs,
Mariaaaaaaaaaa
:)

Gone are the days of 0% down, you see the price of homes falling but can’t put down 20%, 10% or even 5%, BUT you CAN ask to get prequalified for an FHA loan and put down just 3%. FHA loans were popular and a savior back in the days before there were home equity lines or loans and then of course the 0% down days, these are government sponsored loans. They allow buyers to put down just 3%, a reduced PMI payment, and prime rates! (You get the same rate as Joe Schmoe who is putting down 20%!!!) Or perhaps you don’t have the best credit...with a conventional loan you may be subject to very high rates, if you can qualify for one at all, however you MAY qualify for an FHA loan. FHA loans have a rep for being difficult, however they have been made much easier now and friendlier for the borrowers. There is no income limit, however your loan amount is limited depending on the county you are purchasing in, please check out what they are for the counties you are looking in. If you need help getting prequalified feel free to give me a call.

Mortgage Mama Mona
:)


Mona SooHoo Wong
Mortgage Consultant
c) 617-818-7430
f) 781-547-4921

QUICK MOM TIPS FOR HOW TO QUALIFY FOR A GOOD MORTAGE

Qualifying for a mortgage is certainly not as easy as it used to be. The actions of the money-hungry folks who put money before their humanity is affecting all of us. It has led to lenders tightening their approval standards. But while it is more difficult to qualify, it is important to know that it is still very possible to get a loan.

Here are four quick tips to help you immediately improve your chances of getting a mortgage:

1. Put money aside for a down payment. Stash at least 5% to 10%. BTW, no-down-payment mortgages, a staple of the housing boom, have virtually disappeared. To qualify for a government-insured Federal Housing Administration loan, you’ll need to put at least 3% down.

2. Get REAL about your budget. Your mortgage payment should be about 25% of your monthly household income. Choose a price range that fits this. If you make $4,000 a month, don’t take a mortgage out for much more than $1,000 a month. This will ensure that you have adequate reserves to make your payments.

3. Check your credit reports. The three main reporting agencies are Equifax, Experian and TransUnion. Make sure that all the information on these reports is correct. You would be amazed at how many mistakes they make. For me they listed my student loans twice! NOT FUN! My credit score went up after that was cleared up. If you too find some information that is incorrect, report the discrepancy immediately to all three reporting agencies. Anything negative on your credit report will hurt you, even if it’s not right.

4. Boost your FICO score. Mortgage lenders use the FICO score to help determine the chances of you defaulting on a loan. Because the score measures your ability to repay a loan, there are simple steps you can take to improve it. These will show that you are serious about becoming a homeowner.
*Pay down your debt
*Pay all your credit accounts on time

Remember that simple actions over time create the biggest change. Grab a friend and your calendars. Mark a day that works for you and start implementing these simple steps in no time at all you will see some very incredible changes...Be the change you want to be! Once you have these and other successful habits set up you are on automatic pilot for success. It feels sooooooo good! Come join us! You can live happier and more meaningful this way.....Now go grab!

Wishing a fantastic day!
Mariaaaaaaaaa
:)

Mother Who Committed Suicide Because She Was Being Foreclosed On....

I am totally crying as I write this because I just heard the news that a mom, Carlene Balderrama in Taunton, Massachusetts killed herself with her husband's high-powered rifle because her house was being foreclosed on! Her husband did not even have a clue they were being foreclosed on. Seems Carlene told no one. What a pressure situation Carlene created for herself! She left a note saying to use the life insurance money they would collect to pay for the house! Now Carlene's child has no home, no mommy and a very distraught father! There are better solutions!!!

Being in real estate I see a lot of very sad stories lately. It breaks my heart that someone would be so desperate, so disconnected, that they would think that there was no other solution!

PLEASE! If you feel desperate talk to someone, reach out. Ask for what you need. Go to a hospital and tell them you need to talk to someone. For a list of suicide hotlines check out: http://suicidehotlines.com/massachusetts.html
Here is one good example: Good Samaritans Hotline (617) 247-0220 is also a good place to start.

Remember there are a lot of people in your situation. There is help! There are a lot of lessons to be learned from what you are going through. As McArthur used to say, "When you are going through hell, keep going!"

Remember your kids (even though sometimes they seem overwhelming) are also your greatest joy. They need you! I have never been foreclosed on but I did suffer several extremely painful life experiences. One of them was the sudden death of my baby girl Sophia. At the time although I had two other children all I could think of was that I wanted to be with her. The pain clouds your judgement. Give it time. space. breathe. talk. connect. shift. smile. breathe.

Remember that no house, no matter how grand is worth that!!! You are MUCH more important! MUCH! MUCH! MUCH!

There is an old Portuguese saying that what does not kill you makes you stronger. The choice is yours. I vote for a stronger (happier) you!

Big huge honkin' hugs,
Mariaaaaaaaaaaaaaaaaaaaaaa
:)

A Very Cool Buyer Program...

I came across a program that I am thrilled about because it's going to help a lot of people...maybe even you and your family!!! YAY!

Yes, it's true! The economy's shifting is creating fantastic oportunities for those who are lucky enough to find this information! This wonderful program gives discounts to people who buy homes in Worcester. What kind of discounts? Well, they offer discounts on most aspects of home buying including mortgage programs from local lending and financial institutions, in some cases, at rates between ½ and ¼ point below market rates with no or low down payments, lower or no mortgage insurance payments, employer mortgage assistance, and rewards from local retailers on the purchase of homeowner essentials.

OK, now, before you pooh-pooh Worcester, do yourself a favor. Go online and actually check out a few areas in Worcester. You know how cool college towns can be. If you have not visited Worcester in a while you should. It is a very magical place!

Did you know that Worcester is NEW ENGLAND's second largest city? It is a FIVE-TIME recipient of the All-American City Award. It combines the warmth of a small town with the conveniences of a thriving metropolis. You get affordable housing, quality public education, accessible transportation, trendy restaurants, cool shops, and exciting nightlife (for those who have time for that sort of thing ;).

But wait, there's more...."A manufacturing and innovation giant for more than 200 years, Worcester’s landscape blends impressive mills and diverse architecture with community-oriented neighborhoods, inviting green spaces, renowned colleges and unique cultural institutions. The City boasts one of the finest urban school systems in NewEngland and is rated one of the safest communities inthe country (with population of 100,000 or more). An admirable mix of old and new, Worcester is defined by eclectic neighborhoods with a range of housing stock - from historic, turn of the century homes to modern urban lofts.
Worcester’s Neighborhoods!

Lucky buyers can learn more about all of these by visiting www.buyworcesternow.com. It is rare to find such good incentive programs so at least checking it out would really be a good idea. Who knows maybe you will find exactly what you want and thought you could not have! ENJOY THE JOURNEY!

PUT "FUN" BACK INTO HOME BUYING...Here Are The Simple Steps

For many, the home buying process can be so confusing that even running the Boston Marathon -and winning - would seem like a simpler task! In reality buying a home (yes, even in this market) is a simply a serious of steps that get you to where you want to be. Whether someone is new or has bought before, it is always a good idea to get a good outline of the process. For years I looked for something I could share with my clients to no avail so in my "spare time" I decide to create something fun for the world, something that breaks down the steps of home buying into fun, bite-size pieces. I even added cartoon-like figures and (hopefully) some humor.

Let me know what you think of it. I'm always open to suggestions. I present to you the funny way to buy your next home...http://www.brickhouserealty.com/html/gameboard.html! ENJOY!

Big hugs,
Mariaaaaaaaaaaaaaaa
:)

How to Use the Law of Attraction to Buy a Home...

All the universe is made of energy. That is a known fact. Your thoughts are basically energy. What you focus on you will get more of. When you visualize and then back it up with words you create your future path. Think about that. You are your own genie! When it comes to buying a house it helps to do this simple and fun exercise....Get some fun magazines. If you don't have any go on www.freecycle.org and ask if anyone has any cool house magazines they don't need. It's free to use. (If there is not a Freecycle group in your area start one - it builds community and keeps things out of landfills!) Cut out the photos of the homes and architectural features that you love. Glue the photos onto a sheet of paper. Make sure you are smiling and enjoying it as you create this because essentially you are using a fun way to focus your energy to what you want. Invite friends you adore to share this activity with you. Once you are done put it up where you see it like a bathroom mirror or your nightstand. Visualize yourself there. Allow the feelings to well up. Say out loud that you deserve this beautiful home. Believe and see how the universe delivers....