Renting vs Buying

What $1500 / month gets you when Renting in Indiana: (from msn.com)

$1,500 in rent per month buys you: 2,049 square feet

Percentage of dwellings with dishwashers: 55 percent

Percentage of dwellings with washer/dryers: 31 percent

Percentage of dwellings with air conditioning: 58 percent

Now.......

Buying a home with a 150,000 mortgage.

$885  P&I Monthly

$200  Taxes Monthly

$1085 per month.

Plus the vast majority of homes will come with dishwashers, washers & dryers, central air, a 

garage, tax breaks and a basement!

Who says renting is better?

Why was my Offer Rejected?

Question: We recently made on offer on a home, the owner counter-offered, we turned down the counter-offer. A few days later we e-mailed the broker that we would like to make the same offer again. A couple of days later the broker called and said the owner was considering our offer. A few more days passed, we heard nothing from the broker, but we decided to go with the owner's counter-offer if the seller turned us down again.

The call never came from the broker. Instead an e-mail was sent saying the owner didn't accept our original offer and that the home was now under contract. Now we think we should have been given the first chance to accept the owner's terms instead of it being sold to someone else. The home had been on the market for more than a year so it wasn't like there was a great demand for it. What do you think?

Answer: You were given any number of chances to buy the property. First you made an offer that was not accepted. Then the owners made a counter-offer that you could have instantly accepted -- but did not. Then you re-submitted your original offer and it was not accepted by the sellers. Lastly, you want another chance at the counter-offer you first rejected but by this time the owners had accepted a bid from other purchasers.

The bottom line: You had your chance. There are many players in the marketplace. The fact that the home did no quickly sell does not mean the owners are required to sell on your terms. Lastly, an offer or counter-offer once rejected is dead and need not be re-considered.

3 Greatest things to Hear

Interesting Question

Would you rather have: 
More time and less money      OR 
More money and less time?

Home Warranty vs Homeowners Insurance

Question: What is the difference between a home warranty and homeowner’s insurance?

Answer: The best way to describe homeowner’s insurance and a home warranty is to compare them to a car purchase.

When purchasing a car, you are required to have insurance on the vehicle. This protects you financially if anything were to happen to the car. The same thing is true with home insurance. If your home experienced damage that is covered by the insurance company (for example a fire), you would be compensated by the insurance company.                                                                                                                                                               A home warranty, on the other hand, provides a guarantee for certain parts of the home, depending on the home warranty policy you purchase.

When you buy a vehicle with a warranty, the car manufacturer is guaranteeing that certain parts of the vehicle will not break while the vehicle is under warranty. If a part does break while under warranty, the car manufacturer will have the problem fixed at no charge to you.  The same is true of a home warranty. The home warranty company will pay to fix anything that is covered by the warranty (for example the furnace).

Once the home warranty expires, usually after a year, most homeowners do not renew. This makes sense because you are familiar with your home, and you probably have set aside funds for home maintenance. Keep in mind that home warranties do not pay for everything. You have to check the policy.

Homeowner’s insurance and a home warranty may sound very similar, but they are two very different products. Insurance protects the buyer from a catastrophic loss. A warranty protects specific aspects of a home. You never hope to need either, but are thankful for the protection they provide. 

We Should all Remember This!

Halloween Story

Question: Have you ever shown a house you thought was haunted?

Answer: There was one showing that I recall with dread & discomfort; a showing where home features ceased to be a concern, where routine was overshadowed by fear, where disclosures were eclipsed by an enormous desire to flee the premises. It just so happened that this showing occurred on the eve of Halloween.  My clients were rehabbers looking for their next investment. The house was an old, neglected 2 story Victorian in the country, with leaning fences & dense vines engulfing the walls, windows & roof. I learned that the property was an estate & that it had been the subject of headlines when the owner was found hanging from the rafters of the Foyer. The Police investigation had not determined whether the death was from suicide or foul play.

I arrived ahead of the buyers and decided I should turn on some lights in preparation of their viewing. As I pushed open the big, creaky door & entered, I noticed the silhouette of a noosed rope, still attached to a high dusty beam. A foul odor of decay permeated the stagnant air, and I recall reading that the man spent many days at the end of the rope before neighbors found him.  I remember how hard it was to move from room to room looking for a switch that would take me out of the darkness. A steep staircase descended into the basement, where I know my clients would want to check the structural components. As I entered the basement, I could not locate the light switch. All I had was the weakening light from my flashlight. I then heard a sound coming from upstairs. At first, it blended with the incessant creaking of the structure, but now the difference was unmistakable. It was the slow and steady cadence of footsteps. Hoping to hear the voice of my clients, I called out. “Hello, is someone upstairs?” No one answered, but the footsteps continued. I called out again, but there was no answer. Then a shadow appeared on the stair and moved slowly & silently downward. A dark form started to take shape. As it reached the basement floor a putrid foulness filled the air, so that breathing became forced and repugnant.  My attention was drawn from this to some shadowy object that dangled from its left hand.

But then, the eyes of its disjointed head found me, the lips formed a sardonic grin, dripping with thick gray saliva. The light of the waxing Moon gave me a quick glimpse of what could be the ghost of the old man, hung by the rafters. Its left hand extended towards me and the acrid smell of cold breath filled my face as it cried out.........

”Trick or Treat!”