Debt is often treated as a dirty word. But in reality, there actually is such a thing as good debt. Surprise! 

Good Debt

• Used to purchase items or investments that will grow in value over time
• Has lower interest rates than other types of debt
• Is often tax deductible*

A mortgage is generally considered the best kind of debt to have. You're purchasing an item that rises in value over time; the interest rate you're paying is pretty low; and you can write off at least a portion of the associated costs on your tax return. 

Bad Debt

• Used to purchase items or investments that lose value, generally pretty quickly
• Used to purchase items that do not generate income in the future
• Has a high interest rate
• Often considered "lifestyle debt"

Credit cards are the No. 1 generators of bad debt. You usually use them to purchase "lifestyle items," like clothes or household décor, which do not hold their value and don't make money for you down the road. If you're only paying the minimum amount on your credit card debt each month, those $100 shoes are going to end up costing you far more in the long run. Payday loans are another terrible type of debt, which can suck people into a spiral of debt from which it's difficult to recover. 

Mortgages are pretty much the opposite of bad debt: real estate value rises over time, and selling your home in the future can generate more cash than what you paid for the initial purchase. In addition, your mortgage interest rate is always going to beat your credit card interest. 

Staying on Track

So as you can see, your mortgage, while an example of debt, is actually a good debt to have. Real estate gains value over time, and you're building equity and a good credit score when you're paying down your mortgage monthly. In fact, it might be a good idea to consider investing more of your funds into a long-term growth project, such as an investment property, which carries its own special tax incentives.* 

If you're considering ways to maximize your credit and build toward your future, a rental home may be just the ticket. I can help you review your finances to see how a new home purchase could actually benefit you - let's talk about making an investment in your future! Contact me today to learn more. 

For more information, contact Dean & Shanna Tucker at (208) 388-0500 or visit homemortgageboise.com.

 

We're so pleased you want to purchase a home while interest rates are still low and before prices increase even more.

With homes moving quickly and few homes on the market, it's understandable you've become frustrated. So while we understand wanting to keep your options open by not signing a Buyer Representation Agreement with a realtor, unfortunately that may be why you aren't getting much attention from the agents you've been contacting.

 

Sometimes buyers feel they may get a better deal or find a better house if they work with multiple agents, believing they will have a lot of people searching the market for them. However, the way agency law in Idaho works, realtors are required to show new properties that come on the market FIRST to clients with whom they have an agency relationship - signed Buyer Representation Agreement.

So when there are a lot of buyers and not very many homes on the market, a buyer looking without representation may experience homes going from active to pending/sold before they get a crack at them.

 

The other difficulty is that a good - or great - realtor is often working with multiple buyers at one time with whom they have a client relationship and therefore they only have time to work with those folks whose agreement with them ensures they will be paid if that buyer buys a house.

 

You seem like a thoughtful, intelligent person who knows what you want - just the type of client we like to work with! We receive a notification the minute a new listing comes on the market and are constantly looking for properties that will meet our clients' needs - networking with other agents, knocking on people's doors to see if they want to sell, calling neighborhoods, etc.

Installing a wood deck will return 80.5%

Replacing wood windows earns 78.8%

 

Aerate your lawn - If you haven't done this in the last few years, do this before fertilizing while it's still cool. This will improve air exchange between the soil and atmosphere and improve fertilizer uptake and use. 

 

Plant cold-tolerant annuals - Container gardening is a great way to add some instant cheer to your landscaping. Consider planting pansies, violas, and snapdragons now as they don't mind the chilly nights.

Install plant supports - Installing now will allow plants like peonies and delphiniums to grow into the circular cage, loop stages, or grow-through grids, and support them once they bloom.

When selling your home, likely your most valuable asset, it's important to avoid these common ways buyers are scared away from homes. 

Bad photos are almost worse than no photos with a good description. You know the old saying "You don't get a second chance for a first impression?" Well, photographs are the first look a prospective buyers will have of your home. A successful listing agent should have a professional photographer they regularly work with to showcase your home and bring out its best.

The worst strategy for selling your home is to start well above market value and reduce as your timeframe becomes more and more urgent. This is a great recipe for selling your home for under market value or at least less than you could have if you started at market value. The longer your home remains on the market, the more likely it is buyers will go to your home with the notion that something is wrong with it. In order to net the most money possible it's critical to come to an educated decision with your agent to price as close to market value as possible. You do want to net the most money, right?

The last thing you want to do is open your home to prospective buyers without it being clean - spotlessly clean would be preferred. We know it's a lot of work to live in your home and keep it this way, but it's very important! If you can afford to hire professional cleaners for a deep cleaning, even better! A clean home displays pride of ownership - something every buyer loves! Another thing to scare away buyers is to have a dark home. People like cozy and bright homes! If you have dark paint colors or burned out light bulbs, it's time to consider repainting and replacing bulbs.

If you're selling a home in the middle of summer and don't have air conditioning or don't want to have above-normal utility bills therefore leaving the home too hot, you're going to make people uncomfortable and potentially lose a buyer. Likewise, in the winter, don't make people freeze while they look at your home! It's critical for prospective buyers to be comfortable when they are looking at your home so they can focus on what your home has to offer them. We've worked with countless sellers who are selling a vacant house and originally wanted to skimp on the heat to save a few bucks. Is it worth your home not selling? Put yourself in buyers' shoes and make your home as comfortable as possible.

If the front of your home needs a little TLC, this would be excellent money well spent. This one also falls under the first impression category and is critical. If you can't afford a complete yard makeover, tidying up, pruning, and making sure things look nice as people approach the house is very important. Don't set a bad tone for a showing by not mowing the yard, pruning shrubs, etc. It is worth the money!

 

Below are some questions you should ask your realtor before listing your home with them. Any experienced agent should be prepared to answer the following:

According to the National Association of Realtors, the typical Realtor has been in the business for approximately 10 years. How long have you been in real estate? 

Are you a full-time real estate agent?

Can you provide me with copies of reference letters from previous buyers and sellers or give me their phone number so I can chat with them about their experience working with you?

Do you have other listings higher in price and lower in price that you will be able to attract buyers from?

How many listings do you currently have? How many do you typically carry?

How many homes did you sell in the last year?

How many homes do you have under contract waiting to close?

What is your average days on market for your listings?

Did your listings sell for a higher percentage of list price than the average agents?

 

Make sure you make an informed decision when choosing a professional to sell your home!