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Monday, August 6, 2012

TopTenHomeownerTipsWithTysonAndHerman


If you have recently purchased a home or apartment, or you are in the market for a new property, you may want to listen to the audio cast “10 Things to Do after Buying Your Home”.  This show is a talk between Dottie Herman and Eric Tyson and was broadcast on Herman’s real estate show.

Dottie Herman runs a regular talk show and is the CEO of Elliman.  Eric Tyson is a best-selling author.  Tyson began his career as a personal financial advisor and assisted many of the largest Fortune 500 companies.  He began his writing career at the start of the 21st century.  Tyson has written five national bestselling real estate books and has won the Benjamin Franklin Award.  In addition, Tyson is the only author to have four of his books on the Business Week bestseller list simultaneously.

Dottie began her June 2nd morning show by stating “Getting the money to buy is hurdle one.”
Dottie then discussed the advantages of virtual home staging and talked about enhancing curb appeal.  She introduced Tyson, and he discussed his motivation to write real estate books.

Tyson said, “A lot of the information that was out there frequently was written by well intention journalists…who didn’t really have that in-the-trenches perspective.”

Before Tyson discussed what buyers should do after purchasing a home, he and Dottie talked about the current real estate market.  Tyson said that people should take advantage of current market conditions and buy.  That being said, a buyer should be confident of his or her employment and financial situation. 

Tyson then conditioned his statement with a few tips:
-Affordability—this is a personal decision that requires a realistic look at income, assets, debts and expenses.
-Personal Situation—these are things that only you know about.  This includes loans that have to be repaid and future college expenses.
-Comfort Level—making a decision to buy a home is one of the biggest financial choices people make.  The decision should be comfortable and angst-free.

At this point, the talk got interesting, and Dottie pointed out the 10 points from Tyson’s book.

Here is a short list of Tyson’s major real estate thoughts.

*Solicitors—these are salesmen that try to sell goods and services.  Insurance providers are one of the most common types of solicitors.    Tyson said that solicitors should be viewed with caution.  Even though a bank may send a solicitation, their offer is probably not the most financially sound one.  Better choices are available, and looking around provides valuable savings.  This point is also expounded on in the Tyson's tenth point.

*Financial Planners—these experts are essential and help modern adults plan for the future.  Technology offers a number of benefits but has led to an essential degree of specialization.  This is especially true in the financial world.  The stock market is incredibly volatile, and earning interest on capital is paramount.  This requires a financial professional that is experienced and knowledgeable.  Tyson also has an entire book that discusses the benefits of professional financial planners.

*Real Estate Teams—having a team of good players on your side will make you more successful.  Real estate transactions encompass a number of areas, and it is essential to investigate the providers.  Agents, insurance providers and mortgage personnel are all necessary for transactions.  These professionals charge fees, and checking backgrounds is mandatory.

*Refinancing—this was a common approach in the past and should be used only to save money.  Today’s mortgage rates are at record lows, but refinancing is not always the best choice.  Lenders usually charge for services, and fees may be higher than interest reductions.

*Electronic Payments—Taking advantage of technology comes with considerations.  Tyson said he is wary of electronic payments, but it is the wave of the future.  Technology ensures that payments are made on time.  Having money directly deposited into a bank account also makes it easier to save.

*Save Cash—Dottie asked Tyson about emergency funds.  Home buyers should have at least three months of living expenses set aside.  For uncertain times, Tyson advises to increase savings to six months’ worth of living expenses.

*Mortgage Insurance—Tyson advises a classic life insurance policy rather than mortgage insurance.

*Protest Tax Assessments—Property values have been hit hard in the past few years, and many jurisdictions have assessments that are out of touch with reality.  If your home's value seems to be high, protest the decision and get a more realistic assessment.

*Home Receipts—saving home improvement receipts is imperative for buyers that want to make a sale later.  The receipts are needed for capital gains deductions.  Homeowners in high price areas, like New York, should also be sure to save any receipts.

*Take Time to Enjoy Life—Buyer’s remorse is an idea that Tyson discusses at length in his books, and a new home purchase is a huge decision.  The choice should be made without pressure, and buyers should feel glad about their decision.