HEC Yeah! The Home Equity Coach

To build on my article from 2 weeks ago – accelerating home equity to Increase your Net Worth Faster – I have now coined it the Home Equity Coach program and have purchased www.TheHomeEquityCoach.com.  I plan to expand this free program over the next 12 months, as I strongly believe in building wealth thru real estate ownership, among your other investments such as stocks and businesses.  Since the road is not always clear on how to get there, I am offering my service on this important financial asset that can be easily overlooked and taken for granted .  Of course, I will continue my main occupation as a Realtor representing home sellers and buyers for years to come.  This program is a supplemental guide for homeowners to realize a larger payoff upon selling, which can then be used for a larger down payment on the next home, pay down other debts, invest in retirement funds, or however you wish! 

 

Financial experts seem to agree that the proper percent of home equity compared to your total net worth should be in the 20%-30% range, meaning if your net worth is $500,000 that your home’s value minus the loan(s) is $100,000 – 150,000.  This percent will fluctuate substantially over your lifetime – smaller when buying your first home, and higher when selling your last one.  Currently, the average person’s home equity is a much higher % of their total financial worth, as the average savings/investing rate is lower than it should be.  So even though my goal is to build your equity faster, I also believe you need to be properly invested and balanced in different asset classes.  You should not be house-rich and cash-poor.

I have represented 365 clients buying and selling a wide variety of homes and locations over a 27 year career that includes managing other agents for five years.  This experience has given me many insights on how to make a financially-smart purchase, to grow that value while enjoying your life there, paying down the debt sooner, and eventually selling it with a larger check in hand.  I can enter the picture in any of these stages to lend guidance in achieving these goals with you.  It can apply to your own home or to rental homes you own.  This is NOT a get-rich-quick scheme; buy-for-zero-down investment; flipping-houses-with-other-people’s-money; or anything you have heard advertised.  Nor is it designed to sell you a larger home (unless you want to of course, then I am happy to :).  I simply feel bad for folks that have missed opportunities to accelerate their wealth during their home ownership using tools already available to them.  In the end, I hope to earn/ keep your business when it is time to buy and sell homes.  That’s it!

If this terminology intimidates you, don’t worry, I can simplify.  If it is too basic, it is supposed to be.  The concept here is not difficult to grasp, just difficult to maintain the discipline, that is where having a coach can be invaluable.  Contact me soon to arrange a home visit where we can begin your plan.  Time to bring in the Coach!

Happy HEC-ing!

One Stop Home Care

Homeowners are constantly asking for referrals on reliable contractors who (1) show up; (2) do the job right; (3) do not overcharge; and (4) stand behind their work.  There are many companies that fit this description.  Unfortunately there is a high turnover on this list – hence homeowners constantly asking for referrals.  There are lists to look over, friends and neighbors to ask, past experiences, Yellow Pages (yes, they still exist), Googling, and more.  Beyond finding and maintaining a book full of reliable contractors, I see owners continue to struggle with (a) managing all the companies that do the work, and (b) ending up with a cohesive look that a future buyer will adore.

When a new home is built, or a major renovation is started, a general contractor takes charge of the operation to maintain one contact with the owner, ensure a smooth process, contain costs, obtain permits, and complete it in a clean and timely manner.   Why not have a system like this in place for everyday jobs around the house?  And have an expert opinion on not only cost vs return on significant improvements, but color and material choices and how they affect resale value, while interacting with the contractors for you?  This process could include an inspection to uncover items that need attention to avoid bigger bills down the road.

If this interests you, contact me about a program that I am beginning to work on that can take the time and pressure off you as a homeowner who does not wish to shop and compare all these jobs, or are afraid of making choices on the finishes that will appeal the most to buyers and consequently affect your home’s value.  I see this as a missing piece in today’s home industry:  a central figure to coordinate repairs and improvements while maximizing your home’s appeal and market value.   I feel it would be a blessing to many homeowners who do not have the time or desire to deal with all of these crucial jobs that must be done to properly maintain and improve what may be their biggest asset.  I am also researching financial assistance on needed repairs for senior homeowners to help them stay in their own home longer.

Happy Home Caring!

Increase your Net Worth Faster

Home “equity” is simply your home’s value minus what you owe on it.  Many of us have a rough idea of what our home is worth and also what we owe on it.  Several years ago, 25% of home owners had a negative number, severely hampering their ability to move or refinance.  Fortunately today, few owners are in that position as average home values have risen steadily for 5 years.  I believe you should have a clear picture of these two numbers, and how to drive them further, as it can be a large percentage of your net worth.  It can harm you, and it can help you, in house matters and in other life pursuits.  Your home equity is an important figure – you should have more than a vague idea of what it is and how to increase it.   Even as you closely track your assets and investments, this may be a higher priority as you can take several steps to build it, and limit your risk of losing your home.

I am offering to assist you in focusing closely on (1) what your house is truly worth; (2) how to increase that value without overspending; (3) evaluating how and where to get maximum return on repairs and improvements; (4) comparing home loan options on purchase and refinance that work best for you; and (5) making that mortgage work for you.

I offer these services for free in the hopes of earning your business in the future, and referrals of those you know in the immediate term looking to sell or buy homes.  Consider me an unbiased third party on home improvements and loans, as I do not financially gain from the choices you make.  I would not steer you wrong in these matters knowing that you may come to me later to sell your home, and I have to answer to my recommendations.  Also, I can give you hard figures to track your home equity amount so you have a clear number to work with, which can benefit you in several ways; plus I can document your repairs and improvements for an easy record (now required by title companies for 12 month period prior to sale) of paid receipts, lien waivers and warranties when it is time to sell.

If you don’t own a home, let’s change that and start building your equity for 2018.  It can be exciting to watch how leveraging a down payment on a home purchase that is appreciating in today’s market can dramatically magnify your net worth!  Leveraging works in reverse too, I can show you how to be mindful of that.  If you are not completely sure of how this works, take the time to understand this basic principle of finance.  Another principle worth understanding is the magic of compounding – it is not just for interest on your savings, it works on your mortgage payoff too!

Happy equity building!