Eugene Oregon Real Estate Blog

Good Afternoon!

There may never be a more opportune time to purchase a home than right now for a variety of reasons.  The following is an article from "Realty Times" that explains why!

"If you don't buy a home right now, you are STUPID!"

That's what Bloomberg said back in 2009. Actually, they said, "If You Don't Buy a House Now, You're Stupid or Broke."

They continued, "Well, you may not be stupid or broke. Maybe you already have a house and you don't want to move. Or maybe you're a Trappist monk and have forsworn all earthly possessions. Or whatever. But if you want to buy a house, now is the time, and if you don't act soon, you will regret it. Here's why: historically low interest rates."

They were talking about rates hovering around five percent. Today, rates are under four percent for a 30-year fixed-rate loan.

Reason No. 1 to buy now: Rates are low

"Low mortgage rates continue to keep ownership less expensive than renting," said Investopedia. "Even a small change in interest rates has a significant effect on what you'll pay each month and over the life of a 30-year mortgage. Take a $172,000 30-year mortgage, for example ($172,000 is 80% of the median sales price for existing homes of $215,000 after a 20% down payment). With an interest rate of 4%, you would pay $821.15 each month. At an interest rate of 5%, the monthly payment would be $923.33, and at 6%, the payment rises to $1031.23."

Reason No. 2: Rents are high

In many markets, rents are rising to unsustainable levels, reports the National Association of Realtors (NAR). "In the past five years, a typical rent rose 15% while the income of renters grew by only 11%."

The cities with the highest rent increase since 2009 include New York, San Jose, San Francisco, Denver, and Seattle. For the rest of the list, click here, and to see how much more renting can cost you over a lifetime, check out Riskology.

Reason No. 3: Qualifications are easier

During the real estate downturn of the mid-2000s, banks and lenders tightened the reins, and often only the most qualified applicants could get approved. Post-recession, qualifications have loosened. Buyers who can't show solid income and a minimum credit score probably won't be offered a risky interest-only ARM today, however, those with less-than-perfect credit and minimal funds still have options. The Federal Housing Association (FHA) minimums are a 620 credit score and a 3.5 percent down payment.

 

Reason No. 4: Private mortgage insurance fees are down

Buyers who put less than 20 percent down on their home generally incur a monthly fee in the name of private mortgage insurance (PMI). In January 2015, the government announced lower PMI rates on Federal Housing Administration (FHA) loans, which equates to a savings of about $900 a year. Seventy-five dollars a month may not seem like much, but every little bit helps when you're committing to an investment as large as a home.

Reason No. 5: It's still one of the best investments out there

In fact, some would say it's the very best investment out there.

"Buying a home is the best investment any individual can make. Affordability is still at an all-time high," said CNBC.

Not only as a comparison between buying and renting, but as a measurable asset, homeownership stands up—as long as buyers make a smart decision.

"The largest measurable financial benefit to homeownership is price appreciation," said Investopedia. "Price appreciation helps build home equity, which is the difference between the market price of the house and the remaining mortgage payments."

Reason No. 6: It feels good

You know that pride of ownership thing? It's true. Really. Nothing compares to the feeling of walking into a home that's yours for the first time. Or painting the walls a color other than white. Updating the kitchen. Making it your own. Not worrying about your rent being raised. And, of course, watching your equity grow over time.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

 


3985 Monroe St

Price: $450,000     Beds: 4     Baths: 3    ½ Baths: 1     Sq Ft: 3142

Picturesque property in the hills! This 0.45 acre property backs up to a creek offering expansive views of the trees and sounds of nature. Entertain easily on 2 decks in the fenced backyard and in large bonus room on lower level. This home has an op...
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Good Monday Morning!

Both national and local home prices continue to increase.  Even though this has a slight negative effect for potential home buyers, home sellers are benefiting from the increase in home values.  Here in the Eugene and Springfield area, home values have increased significantly since the market down turn several years ago.  Although, in most cases home prices have not come back to where they peaked at around 2006, they have come back enough for anyone thinking about a home sale to consider making the move to do so soon.  There is much speculation that mortgage interest rates might begin to go up later this year.  With the increased mortgage interest rates, the demand for housing could decline, putting pressure on home prices.  We just might be at that point where your home value is at a peak and the oppotunity to sell at top dollar could just be right now.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!




 

6076 Fernhill Loop

Price: $497,000     Beds: 3     Baths: 3     Partial Baths: 1     Sq Ft: 4061

Great separation of space in this Craftsman style home located on .46 of an acre. Large kitchen with island, hardwood floors, granite, pantry, open to family room with fireplace & built-ins. Formal living room boasts high ceilings, fireplace, light ...
View this property >>

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Good Morning!

With mortgage interest rates remaining extremely low, many first time buyers are making the choice to purchase a home now instead of gambling on waiting.  If you are a first time home buyer or if you know of someone thinking about purchasing their first home, here are some tips that just might help with the home purchase process.

First-Time Home-Buyers: Know What You Can Afford

The hardest part of the home-buying process is figuring out what is affordable. Some first-time buyers rely on the amount the bank is willing to lend. Others use a lender’s mortgage calculator to crunch a couple of numbers. However, banks are often willing to lend much more than you can afford, and mortgage calculators don’t always tell the whole story. To learn how much home you can afford, start with the basics.

How Much Can You Pay Each Month?

Rather than focusing on the purchase price or lender offers, decide how much you can spend on a mortgage payment each month. A common rule of thumb is that your mortgage payment should be between 25 and 30 percent of your income. In truth, 30 percent is too high for many people. The only reliable way to determine what you can afford is by adding all of your monthly bills and expenses. Make sure to get estimates of what your new utilities will cost based on the size of the home you plan to purchase. For area specific rates, consult local service providers or your real estate agent.

Remember to include cost of living changes as well. Even over small distances, the price of gas, groceries and other necessities can change dramatically. Long-term savings is another overlooked cost. Do not make the mistake of assuming that future wage increases will allow you to save money later on. It is a good idea to plan for savings right from the start. Once you are comfortable with your estimates, you can start looking at the other costs that factor into mortgage payments.

Striking the Right Balance with Your Down Payment

The next step of the process is to determine how much you can put down on a home. Save as much as you can, but make sure to set aside some money for appraisals, inspections, closing costs and moving expenses. If you can save enough to put 20 percent down, you will be much more attractive to lenders. Additionally, loan products with a 20 percent down payment requirement are easier to obtain if your credit is less than perfect.

However, if you can’t save that much, don’t be discouraged. There are plenty of ways to buy a home with little to no down payment. However, your interest rates may be a little higher, and you will have to pay private mortgage insurance.

What is Private Mortgage Insurance?

Private mortgage insurance (PMI) is what lenders use to protect themselves from risky borrowers. If you put down less than 20 percent, you will probably have to pay PMI every month as part of your mortgage payment. As your down payment decreases, PMI rates go up. Speak to as many lenders as you can to learn what rates to expect. Make sure to ask how long you will need to pay PMI. Some loans, such as those backed by the Federal Housing Administration, will require you to pay PMI for the life of the loan. Other products will allow you to cancel PMI after you have paid enough towards the principal balance.

How Much Difference does Interest Make?

Interest rates can make or break a loan deal. A slightly higher rate can add a large amount to your monthly payment.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

4220 Heins Court

Price: $235,000     Beds: 3     Baths: 2     Sq Ft: 1489

Brand New Home with RV Parking! Another beautiful home from builder Gary Konold. Located in cul-de-sac with shopping only a 2 minute drive away! One level home offers laminate wood flrs, granite counters, vaulted & high ceilings and Great Room layou...
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AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Morning!

The sky might be ready to fall in regards to mortgage interest rates. But for now, it is time to act if you have been considering a home purchase.  The home affordability that you have today is going to be short lived.

Consider this a gift to home buyers: Mortgage interest rates dipped to 3.78% this week, just in time for the spring housing market.

For people who are in the process of buying a house, our best advice is to lock in your rate now. “This is the last call before the bar closes at these historically low levels,” said Jonathan Smoke, chief economist at realtor.com®.

Currently, rates are low, but they are expected to rise. On Wednesday the Federal Reserve issued its first warning that rates will increase in the near term, because the economy has stabilized. The Fed has been propping up the economy by keeping rates at zero since late 2008, when the housing market collapsed. Now that employment is up, gas prices are low, and consumers are feeling more confident about the future, interest rates are sure to rise. Observers expect the Fed action to happen as early as June.

“From here, rates should go up more than down, which means affordability declines rapidly,” Smoke said. “It also means that navigating mortgage choices becomes simultaneously more important , but also more complex as higher rates would cause qualifications to be harder and some options will fall off the table.”

It goes to reason that as interest rates increase, affordability decreases. Home prices are rising and now that rates are indicated to follow suit, your buying power will not be as great as it once was. These are the waning days of remarkably low rates.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

775 N 8TH ST

Price: $155,000     Beds: 3     Baths: 1     Sq Ft: 1040

Charming ranch style home on dead end street. Features large windows for lots of natural light, wainscoting, laminate wood floors, well sized closets, all on 0.18 acre lot. Living room opens to dining room with slider to back. Master bedroom with ja...
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AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Morning!

With mortgage interest rates remaining historically low, the number of home buyers has accelerated over the past several years.  If you or your family fit into the group of those thinking about a home purchase, here are some great tips to help you with the purchase of your home.  This article was taken from Realty Times!

You're ready to make an offer on the home of your dreams. But before you do, make sure you're really ready. Ask yourself and your household members if this is the home for the next five or so years. Make sure everyone is on board with commitments to make it work, from putting off the dream vacation to putting in the elbow grease to clean, paint and do the yard work.

Have your real estate agent pull up the most recent sold comparables (CMA) within a reasonable radius of the home, so you can compare the home with other similar homes in terms of location, size, features, and amenities.

Next, consider the most current market conditions, so you can choose the right offer strategy.

In a buyer's market, discounts are common because there are fewer buyers, more properties for sale, and home prices are soft or falling so offers under list price are common.

In a seller's market, homes sell quickly for full price or higher because there are plenty of buyers and few homes for sale.

Whether you are in a buyer's market or a seller's market, your goal is to buy the home at a fair price. If you were the seller, what is the lowest possible price you'd accept?

To show the seller you're serious, include a copy of your lender's pre-approval letter, along with a cover letter summarizing your strengths as a buyer in terms of creditworthiness, flexibility in closing, and why you love this home. Include a copy of the comparables you used to show why your offer is a fair price for the property.

If the seller's home is offered at a reasonable price, don't waste time. Pay asking price or close to it. A home priced to sell will sell quickly and you'll lose it if you mess around.

Offering too little for a property is risky. If the seller feels insulted by your offer, you've lost the opportunity to negotiate. On the other hand, some sellers are simply unrealistic about their home's value. Maybe your offer will be their wake-up call. The seller will probably respond with a face-saving still-high offer, but at least they're negotiating with you.

If your offer is conditional, such as your need to sell another home before closing on the seller's, you'll have to find a way to sweeten the deal, such as a full-price offer. Few sellers will accept a discount and a contingency.

Your real estate professional will help you draft the offer with a price, estimated closing date and terms, including earnest money (a guarantee that you'll perform as a buyer in good faith,) final approval by your lender and your right to have an inspection. Your earnest money check will be forwarded to the escrow agent when your offer is accepted.

You'll have a brief period to get your home inspections completed. Your home inspector will go through the home with you and point out the condition and potential lifespan of all systems and appliances. You should only renegotiate when a problem wasn't obvious before, or when a system is found to be unsafe or not functioning.

Once you and the seller have agreed to terms, your offer is now a binding contract and you're on your way to owning a home!

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

33970 VAN DUYN RD

Price: $995,000     Beds: 4     Baths: 2    ½ Baths: 1     Sq Ft: 2930

Live where the eagles fly. Gorgeous valley and coast range views from a serene lofted location in the elite Country View Estates gated community. An elegant, top quality home offering spacious rooms, built-ins, and beautiful views, including spectac...
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Good Monday Afternoon!

Home inspections are an essential part in the process of purchasing a home. This even means they are important when purchasing a brand new home from a builder.  The following article from "Realty Times", talks about the importance of having a new home inspected.

Question: We are looking to buy a new home from a builder. We like the neighborhood and the price has been reduced to make it very attractive. Additionally, the builder is throwing in a number of extras, including paying all of our closing costs.

However, we do not know this builder's reputation, and would like to have the home inspected before we go to closing. Is this possible?

Answer: In today's buyer's market, most anything is possible, and I think it's a very good idea. However, builders often reject such arrangements, for a number of reasons. Some builders claim that this will void their insurance policy and are afraid that someone will get hurt during the inspections. Other builders don't want their employees bothered by too many questions from the inspector, while other builders just say that "we will provide you with a house that has been approved by the county inspectors, so you do not have to worry."

But you are correct in worrying. According to Frank Lesh, former president of the American Society of Home Inspectors (ASHI), "even new homes have defects that only a professional can detect".

Keep in mind that in many counties, the government inspectors are busy and do not have time to carefully look at all aspects of the new home. Often, by the time the county inspector makes a site visit, your builder may already have put up the drywall, thereby covering up the electrical and the plumbing.

I have been involved in a number of new home warranty issues, many of which could have been avoided had the buyer been given the right to inspect the new home as it was being built. In one case, the new homeowner kept hearing pipes knocking every time the upstairs bathroom sink was turned on. The homeowner forced the developer to open up the walls -- at the developer's expense -- and found that some of the plumbing pipes were not properly affixed to the wall. The building inspector that the homeowner retained -- after the house had been completed -- determined that this was what he called "water hammer".

Indeed, in this case, the builder acknowledged that had there been a periodic inspection, the problem would have been detected earlier, at a significant cost savings to the builder.

ASHI recommends a three-pronged inspection: prior to the pouring of the foundation, prior to insulation and drywall, and finally prior to the final walk-through.

You should tell the builder that you want the right to have an inspector of your choice -- and at your expense -- to conduct these three inspections. The sales contract you sign should spell out this right in clear terms.

There are many components involved in a new home -- such as the roof, the foundation, the electrical and plumbing and the heating and air conditioning systems. I recently heard of a situation where a homeowner complained that the new house was not being adequately cooled, and when a professional inspected the system, he discovered that the builder had made a mistake. The system that was designed for a smaller house was accidentally installed in the house that was inspected.

 

Once again, the developer had to spend a lot of money correcting the situation -- money which could have been saved had there been periodic inspections.

It often amazes me that when consumers buy a new car, they inspect it carefully, even to the point of kicking the tires. But when they buy a new house, they are more concerned about how many bedrooms there will be, and what size television will they be able to put in the family room.

To my knowledge, there are two major home inspection organizations: ASHI and the National Association of Home Inspectors.

If you do not have the name of a competent inspector, you can find one by going to either of these organization's website.

When you contact a home inspector, inquire of his/her qualifications and background and check him/her out on the Web and at the Better Business Bureau.

If you decide to hire an inspector, get a copy of the inspector's contract before you formally commit yourself. Read it carefully, and make sure that the inspector will be doing the job you want.

There is one controversial provision in most home inspector's contract, called "an exculpatory clause". This states that should the inspector make a mistake and negligently fail to pick up problem areas in the house, your only remedy is to get full refund of the contract price. This clause has been upheld in the State of Maryland. However, the District of Columbia Court of Appeals held that these exculpatory clauses will not be enforced "when a party to the contract attempts to avoid liability for intentional conduct of harm caused by "reckless, wanton or gross behavior." (Carlton v Home Tech, decided June 15, 2006). This was a modest fix but unless you can prove that the inspector was engaged in such behavior, the exculpatory clause will be enforced. State laws differ on this issue.

While not every home inspector will agree to delete this clause, it certainly is worth trying.

Purchasing a new home creates significant anxiety among many potential homebuyers. Why not get an inspector to be on your side to relieve you of at least one aspect -- namely is the house built properly or will we have problems after we go to settlement?

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

 


 

2060 MCLEAN BLVD
 

Price: $330,000     Beds: 3     Baths: 2      Sq Ft: 2180

Beautiful and peaceful residence! From high up on a hill enjoy serene tree views. Sunlight floods inside through numerous large windows and 2 sliders. Relax next to the fireplace in the family room, take in the view from the living room, or outside ...
View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

In a recent study, the National Association of Realtors determined that over 85% of all online home searches are now done from a mobile device.  This means that most interested home buyers are shopping online from their smart phones, tablets, etc.  The problem that most mobile home shoppers find is that the site they are searching with their mobile device is not optimized for a mobile application.  This means that the home search site is set up for viewing from a PC and does not fit the mobile platform.  The result of this is an awkward and cumbersome page that is hard to use.  Typically, these sites will have distorted sized properties and you will have to scroll all over the place just to get a look.  If you have been on one of these non-mobile friendly home search sites, I am sure that you can relate to what I am talking about.

If you are doing a home search in the Eugene and Springfield market area, there is a solution.  There now is a great new mobile enabled home seach site that will make your home search from any mobile device easy and without the typical frustrations.  This site is www.eughomes.info.  There is no app to download, just type the site into your mobil browser and you are ready to go.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

 


 

3097 SUMMIT SKY BLVD
 

Price: $750,000     Beds: 4     Baths: 3     Half Baths: 1      Sq Ft: 4338

Elegant upper end home on 1.06 acres in SW Hills! Maple hardwood flrs, granite, travertine, 3 suites, 2 fireplaces, 2 balconies, family rm, library/office, formal dining, bonus rm, media rm. Gourmet kitchen with cherry cabs, wine fridge, dbl ovens,...
View this property >>

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One of the most frequent questions that I recieve is in regards to remodeling.  "Should I remodel my existing home or purchase another home?" The answer to this question is going to be different for everyone, but be cautious, remodeling is not always the best route to take.  Remodeling can be very expensive and you may find yourself in a position where you will not get your money back anytime soon.  The following article from "Realty Times", discusses this question in detail.

If you've been watching a lot of HGTV, you may be in the mood to make changes. Is it time to remodel? Or is it time to sell?

Just like anything that gets a lot of use, homes show wear and tear after a few years. Certain color schemes and decorative styles begin to look outdated. And there are some improvements that you may have put off as a new homeowner that you can afford to do now.

Some market conditions are in your favor -- interest rates are still extremely low and below where they were a year ago and the economy is improving, so you'll likely get much of what you spend to improve your home back when it comes time to sell.

The question to answer is this: If you improved your home the way you want, would you want to stay in it for a few more years, or are you ready for a complete change?

Home improvements can be substantial, such as adding a bedroom and bath to the existing footprint of your home or outfitting a kitchen with new countertops, cabinets and appliances. You want your home to support the standards set by your neighborhood, but you also don't want to end up with the most lavish house on the block.

To get started, put together the right team. If you' aren't moving walls or pouring a new foundation, you probably won't need an architect, but you will need the right contractors, kitchen planners and interior designers to help you put it all together.

You'll also need to talk to your lender to learn how much you can borrow and whether the current market value will support the facelift.

As you're putting together bids, you may find more work is required that you weren't expecting. Plan for problems to come up, change orders and delays on materials, so you won't get upside down with expenses or sideways with your contractor.

Before you make a decision on remodeling, make sure you are going to get what you want at the price you want to pay and that you'll be happy with the results for at least several years to come.

If you're not sure the remodel is the way to go, you can talk to your real estate professional. Be honest with your agent that you are considering remodeling, but that you are also open to finding another home. Your agent might know of homes for sale that have the size, features and finishes you're wanting. After you view a few homes, you should have a better idea of what you want and what you like.

You and your agent will also discuss selling your home. He or she will create a comparative market analysis of similar homes to yours that have sold recently and are currently for sale so you'll know what you can reasonably expect to net from the sale of your home. From these homes, you'll learn how long homes are staying on the market and if other sellers are getting their asking prices. Together you and your real estate professional can discuss a price range for your home, based on its location and condition.

Keep in mind that all markets have ups and downs so what your agent can show you is only a snapshot of what's true today. If you're happy with where your home ranks amid the competition, then it should be a good time to list your home for sale.

Change is an evolution, and will bring some upheaval to your life. You'll either have to open your home to workers or to buyers. But if you come out on the other side with what you and your household desire, it will all be worth it.

THIS WEEKS HOT HOME LISTING!

 

88604 ERMI BEE RD

Price: $549,900     Beds: 4     Baths: 3     Sq Ft: 3376

Gorgeous, private estate on serene 5-acres offers outstanding views from every room. This Jerome DeMarco art.chitecture home is remodeled, April 2014, in tasteful contemporary style. Granite counters, hardwood floors. Open plan brings in beautiful l...
View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Monday Morning!

Do you ever wonder how mortgage interest rates effect your ability to purchase a home, your home payment and what you actually pay over the term of the home loan? The following will give you an idea as to just how much impact mortgage interest rates have.

National average 30-year fixed rate mortgage interest rates have been under five percent for over five years. They should stay low forever, right?

Economists predict that the soaring economy, improved job outlook and ebullient consumer confidence will cause the Federal Reserve to start raising overnight borrowing rates to banks. Mortgage interest rates will become volatile, and things can change quickly for consumers.

To illustrate changing mortgage interest rates and their impact on your monthly payment, consider what a difference even a small dip and rise in interest rates means to you.

In December 2014, the median-priced home in the U.S. was $209,500, according to the National Association of REALTORS®. If you purchased this home for $200,000 and with 20 percent down and a benchmark fixed-rate mortgage with the December national average commitment rate of 3.86 percent (Freddie Mac), your payment would be $751.01 a month.

You'll make 360 total payments of $270, 362.59, with $110,362.59 in interest over the term of the loan.

The same home with the same loan on February 5 would be very different. The national average commitment rate is 3.59 percent, your payment is 726.53 and your total payments add up to $261,552.16 and 101,552.16 in interest.

The difference isn't much -- just under $25 a month and $8,810 in round numbers.

But what if interest rates go up as economists predict? The January 2015 outlook by Kiplinger's predicts that interest rates could go as high as 4.9 percent. What would your monthly payments look like then?

Your monthly payment would be $849.16, for a total of $305,698.59, and interest payments of $145,698.59, a difference of $122.63 monthly and $44,146.43 in interest by the end of the loan.

If you're interested in buying a home, mortgage rates are unlikely to stay low much longer. If you would like to see just how affordable a home purchase might be with the current low mortgage interest rates, please contact us. We would be more than happy to furnish you with a complete home purchase analysis.  This costs nothing and there is certainly no obligation.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!

48808 MCKENZIE HWY

Price: $225,000     Beds: 2     Baths: 2     Sq Ft: 1034
Riverfront retreat on 1.65 Acres! Enjoy river views spanning entire south side of property from large deck overlooking an island. Privacy from every direction! Sunlight floods into this updated home with 3 french doors. Relax in the master suite jet...
View this property >>

AND HERE'S YOUR MONDAY MORNING COFFEE!!

Good Morning!

Purchasing a home is a big deal.  With home ownership there are many things to think about.  Here is an article from Realty Times that talks about some of the things you will need to consider with your home purchase.

The American dream of owning a home is something everyone should have if they want it. You should be able to live where you want and enjoy the features of your environment that help you relax, entertain, play, and do more of the things you enjoy without the restrictions imposed by a landlord.

You can own a pet, build a treehouse, paint the walls your favorite color, and play music and videos as loud as you like without disturbing your neighbors. That's the essence of the dream -- independence.

For most first-time buyers, it's better to accept that for dreams to come true, you have to do the groundwork. Yes, you will be far more independent than you would as a renter, but you will still have some very real responsibilities to make homeownership work. Here are the top three responsibilities you'll have as a homeowner.

Financial responsibilities

You owe your lender timely payments. Paying on time helps you build your credit. With great credit, you can take on more projects such as remodeling, or you'll be able to buy furniture, cars or other things you want with lower interest on your payments.

Your debts should never be more than 40 percent of your income. If you get overextended, you'll have problems meeting the minimum payments. Instead, limit the amount of credit you actively use and pay off balances every month. Don't add new charges until you've paid off your balances.

You should also be in a position to save money, which you can do several ways. You can put money in your 401K, you can pay extra on your principal every month, or you can buy bonds or invest in the stock market, according to your tolerance for risk. You can put money in a safety deposit box or under the mattress as long as you are saving rather than overspending.

Common wisdom is to build six months of cash so you can continue to make your house payments if you lose your job or become ill. You need savings for emergencies, large expenses such as student debt, and retirement.

Neighborhood responsibilities

When you buy a home, your household becomes part of the neighborhood. You can influence whether or not the neighborhood prospers or declines simply by the way you treat your neighbors and your home. It's up to you to uphold or to set a higher standard for the neighborhood by keeping your lawn and trees trimmed, your home freshly painted, and toys and trash picked up from the entry.

This is the way you can protect your investment and those of your neighbors. It's one of the reasons many neighborhoods have homeowners associations -- to protect values by standardizing safety and maintenance for the community.

To get the benefits the HOA provides such as higher and consistent home values, you have to pay your dues and obey the covenants. You can volunteer to help or you'll have to abide by the decisions others make. Before you buy a home in a HOA-managed community, read the covenants so you'll know what you're getting into. If not being able to use certain exterior paint colors bothers you, then don't buy the home. Find something else.

Household responsibilities

You owe yourself and the other members of your household the best life you can possibly provide. Buying a new home is a great time to step up your lifestyle and enjoy what your new home and the community has to offer.

Your home should help you be who you want to be. That's the purpose of shaping your environment. You have control over whether you entertain like Martha Stewart, paint in your studio like the next Picasso, or grow a lawn as sleek as the Augusta fairways.

Choose a home that meets as many needs as you can within your means. Separate bedrooms for the kids may be doable, but you may have to compromise on a Jack and Jill shared bath. This is an excellent opportunity to teach your older children about prioritizing, delayed gratification, give and take and winning and losing gracefully.

Make sure the area you select offers amenities that your building doesn't have. If you don't have a yard for the kids and the dog, make sure there's a park and playground nearby.

Think about how far and how long it will take you to get to shopping, work, and other friends and family. Think about how a long commute will affect your family. Would you rather be sitting in traffic or attending your son's ball game?

You and your spouse may want the prestige of living in a certain area, but if your house-payment is too high, you'll introduce problems into the relationship you don't need. It's about making choices that make sense. Better to buy a smaller home in a great neighborhood and keep the arguing down.

Buy the best home you can that's within your means and it will see you through years of comfort.

Have An Awesome Week! 

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33970 Van Duyn Rd

Price: $995,000 Beds: 4 Baths: 2 Half Baths: 1 Sq Ft: 2,930

Live where the eagles fly. Gorgeous valley and coast range views from a serene lofted location in the exclusive Country View Estates gated community. An elegant, top quality home offering spacious rooms, built-ins, and beautiful views, including ...

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