Took a look at the Netmovers.net site. It is an internet service in the UK that allows potential buyers to look for homes on their own without the use of a realtor. In fact, the blog talking about this service claims there are “NetMovers are the UK ’s number one commission free estate agents, with no hidden costs to worry about.” So for $99 dollars (something I offer for free here) you get access to the mls and you can get information about the area. While I agree having a first look at the area through the web is a wonderful feature, it certainly help decrease the hours looking at places that just don’t fit. It does not replace having somebody drive you around a few selected areas explaining where things are, merits vs minuses of one neighborhood over another, not to mention about quality of schools from a parent point of view, or about the little nuances that just don’t show up on a map or website.
While I do understand that Brits do things differently just seems to me trying to take the agent out of the real estate transaction leaves buyers and sellers in the position of not having access to a wealth of knowledge that the full-time real estate profession has just from doing his or her job. Knowing how much to offer on a house, getting together the information on what other properties have sold for in the area, and knowing what to expect after one makes an offer are a few things most people look to a realtor for assistance.
Buyers will learn little about a neighborhood until they ride though it. A tool like Netmovers, gives you cold information while the realtor can give you that information in the setting and offer tidbits of information that does not appear on websites. Viewing pictures even high quality images does not take the place of a drive by with someone whose job it is to know the area.
I find it interesting when people get a new tool and think that tool can replace human knowledge and ingenuity. The realtor has been around assisting buyers and sellers for more than 200 years. It is unlikely a website can replace what a human real estate professional brings to the buying and selling arena.
In catching up on my reading last weekend, I finally got around to the Harper’s Magazine article that was referenced in the Frank Pasquale Concurring Opinion’s article. While I agree that America carries too much debt and states like New Jersey are on the brink of financial ruin because of its indebtedness, it is kind of galling that when the average Joe runs into debt problems the first thing he does is cut spending and decrease living costs. Joe Average has to prioritize his debts, talk to creditors, basically change his spending habits to keep the cash flowing with more than his mouth above creditor infested waters.
Joe Average does not think about how he got into trouble; in reality, he doesn’t have time for reflection he is too busy trying to stay afloat. But it is at that precise moment that Joe must reflect and plan. He has to plan to feed the sharks and manage to keep himself afloat. But Joe does not want to just stay afloat. Ideally, Joe wants the water level comfortably around his ankles. To get there Joe has to plan.
So when I hear stories as I did this morning of state fiscal crises and the like, I wonder if the Govenor or the folks in the state house have any plans to get Jersey Joe into comfortable waters. We all heard about Gov. Corzine’s plan for the toll roads, and most of us don’t like the plan. Don’t imagine Joe Average likes what he has to do either. But while Joe Average will learn to live within his means, Jersey Joe will incur more debt to temporarily relieve his situation. Jersey Joe is looking to get a boat while Joe Average wants to swim to Debtfreeland. The question is once Jersey Joe is in his boat, will he be sufficiently motivated to head to Debtfreeland or will he dry himself off and head for Deeperdebtville? I am inclined think he will head out to financial ruin in Deeperdebtville.
It is always thought-provoking to see what other bloggers write. I read the JD Roth article, Mortgage Prepayment Made Easy: Own Your Home in Half the Time, while I agree that paying off the mortgage sooner rather than later has emotional advantages (Who doesn’t want to own their home outright?) , the goal like the name of the blog was to get rich slowly. So while his method of paying off his mortgage was to pay the mortgage company principle only payments, I find a different method more to my liking (#6 below). The thing each of us on the road to wealth must bring with us is discipline. It will require quite a lot of discipline to reduce spending and eliminate debt. It will also require a lot to make payments, be they mortgage, utility, or cable, on-time, every time.
Reducing spending frees money to help eliminate debt. As the amount of indebtedness decreases, wealth building opportunities increase. With the increase in foreclosures and people just walking away from their homes and mortgages, here are a few tips that might help homeowners and buyers before they find themselves on the road to foreclosure.
- Pay your monthly bills on time for at least six months before beginning to shop for a mortgage.
- Primarily this is for buyers but if you are behind in your mortgage don’t exacerbate things by not keeping your other monthly bills current. Paying bills on-time will effect your FICO score.
- Where possible pay off all other debt.
- Ideally it is much better to pay off credit cards and bank the payments to “rainy day” account that is equal to the credit card limit. Homeowners need about $4000-$6000 cushion against repair/replacement costs.
- Reduce food, gasoline, and entertainment expenses.
- Dining out and movies are treats. In our fast food society it is often convenient to just grab a burger meal for dinner. Discipline is knowing when the budget will allow for a treat and when it will not.
- Get a copy of your credit report and make sure it is correct.
- While there is usually some lag between paying off a debts and the updating of the credit report, it is your responsibility to correct any errors in the report
- Begin saving enough to cover all your bills for 4-6 months. Do this as you are paying off the credit cards and any other debts. The amount of this account will of course vary from family to family but in the event of some unforeseen catastrophe, it will mean the difference between frantic desperate measure and just desperate measures.
- Know up front with banks you are either current in your account or you are delinquent. They do not recognize that you prepaid two month ago. It is better to put your extra mortgage payments in a prepayment bank account and let it earn interest. Pay the mortgage regularly until the prepayment account is equal to the mortgage balance then write the one check for the mortgage. Watch the monthly balance in the account grow closer to the amount owed feels just as good as getting that monthly statement from the mortgage company. By banking the money yourself, should something happen and you cannot pay the mortgage from your regular earnings you can pay it from the prepayment account. Having that cushion against hard times could be the difference between keeping your home and losing it.
- Pay the maximum retirement account payments.
- As you payoff credit cards increase the amount of money you pay into your retirement account until you reach the maximum allowed.
- Yes, I know I said earlier to use the money to build a cushion for repair and replacement costs but the retirement account needs to be increased as soon as possible.
- Begin to invest in things that will produce passive income. That means something like bonds or even stock.
- As money becomes available through the achieving of eliminating debt, hitting target saving goals, maximum retirement savings, etc. the money should be invested into income increasing ventures.
- Stay the course. In order to be in a position to build wealth one has to have the discipline to resist the temptation to spend unwisely, accumulate debt, or decrease investment dollars. One also must be able to forgive past mistakes, recognize the lesson each has to teach and keep working toward your goal.
- Treat yourself once a month. If you have done everything else as you should, then remember to treat yourself once a month. Rent a movie, take in a show, or have a nice dinner out. Whether it is date out night or snuggle together in night, make it special for a job well done.
Now, I make no guarantee this will work for everyone, but I know it works. Don’t jump in expecting to get it right the first time. You are a babe, and babies crawl and fall down before they are steady on their feet. Discipline is learned and mastering saving rather than spending takes time. Just know you are not the first to step on this road and certainly not the last. Remember number 9 when you make the mistakes that are part of growing wealthy.
We went to a movie last weekend and went to the Shop Rite Supermarket near the movie theater on the way home rather than make a single trip to the supermarket the next day. It was about conserving some to that $2.83 per galloon gasoline. Seems like more Americans did the same thing, conserved feul. Makes sense really to combine outings rather than make a special trips especially when gas prices are so high. That gasoline stock are increasing mean consumers are doing more thing right.
“Something dramatic is occurring with consumer driving habits,” Geoff Sundstrom, a spokesman for AAA motor club, said in a telephone interview. “These numbers, if sustained over next couple of weeks, should set the stage for a reversal of price forecasts.”
While the idea of conserving gas is one on many American minds, the idea of conservation and spending quality time with the family while conserving a natural resource and creating less greenhouse gases is a rather pleasant feeling. Perhaps we can continue this practice of going to the supermarket after the movie even after gas prices come down.
Well it is the new year and Apple is moving right along with working to keep pace with the other smartphone companies. The new Apple iPhone has increased the amount of memory users have available from 8GB to 16 GB. The idea is to allow users to carry more in their iPhone. With Apple- iTunes joining the movie rental race it makes sense to increase the capacity of the iPhone. The design of the phone itself has not changed noticably but the design and features the phone offers has made it #3 in the less than a year in the market statistical race.
Frankly, the iPhone like any other smartphone device has one that cannot be stated strongly enough: when one part of it needs repair whether it is the phone or the iPod all that stuff being in one place creates a bigger problem then keeping track of individual devices. And until they can increase the battery use time I will play dinosaur and keep my cellphone, Palm, and MP3 player separate.
You hold your seven pound miracle for the first time and fall completely in love. You bring that bundle home determined to shield her from all that might harm her. At some point you give your bundle of joy her first official at home bath. You may even commemorate the occasion on video. You reach for the bottle of shampoo to lather those downy locks and then massage in a liberal amount of lotion on her skin. It is what nuturing parents do. Now there is a study that suggests what was a bonding moment might really be unintentionally causing harm.
The University of Washington study found that baby lotions, shampoos and powders are strongly associated with higher levels of chemical compounds, known as phthalates in the urine of babies. These phthalates are involved in the fragrances one associates with products. Since companies are not required to list components of fragrances the consumer does not have a way of knowing the amount of phthalates we are putting on our children. The reality is newborns do not need to bathe everyday. Nor do they need bubbles in their bath, plain water will work just fine. It is not like they are going to find the nearest mud hole and take a dip.
Limiting the number of fragrant products used on your little one is not that big a sacrifice, after all wouldn’t you do anything to keep them safe? You can always put the savings in unpurchased products into the little darling’s college fund until the experts sort this out.
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