Unexpected expenses associated with buying a home. Are you prepared?

Homes are more affordable these days and the selection is abundant. It is a great time to buy! But as too many struggling borrowers now realize, the cost of owning a home is hardly limited to paying the mortgage. There are hosts of other recognizable and unexpected cost that can get overlooked in the excitement of buying a house, especially if it’s your first.

Ultimately, those things might mean the difference between home sweet home and foreclosure.

It is important for all buyer to know , especially first-time buyers, that there are additional expenses other than their monthly mortgage Just because a lender has qualified you for a certain size mortgage doesn’t mean you have to spend that much on a house. There will be additional, unforeseen costs, such as repairs, decorating, improvements, utilities and the like. You do not want to be “house poor” as often on FHA loan down payments comes from a gift and it is just another evidence of not saving enough….

Through the loan-qualifying process, some buyers, especially first-timers, become aware of the concept of spending only a certain percentage of their income on what is called PITI—principal, interest, taxes and insurance.

The “T” in PITI—taxes—can be expensive, depending on where you live. If you buy into a condo complex or a new-home development (which in Raleigh, NC I would strongly advice against), you will have to factor in monthly homeowners association fees, as well. PITI and association fees are fixed costs, for the most part, although home owner’s insurance rates and taxes can rise. Mortgage interest can change, too, if you don’t have a fixed-rate loan.

                                                                                            

I would urge any buyer to set aside a “rainy-day fund” for unanticipated major expenses, such as a broken HVAC or a roof leak. Home owner’s insurance plans often have lots of gaps, so there are many things they don’t cover.

                                                                                                              

For example, home owners insurance can include flood coverage so when the basement stairwell drain is clogged with leaves and water backs up the basement there will be a cost share after deductible.  You need to be intimately familiar with deductibles as well as coverage limits, so your annual premium will likely be much higher than the state average when you finish crafting your policy. You certainly can shop around for the best rates, and, in many cases, save money on the premium with a policy that covers your automobiles as well as your house.

But you should also allow for simultaneous unanticipated expenses, such as a car transmission failure and a fridge on the fritz. If you are living on the economic edge, enough of these disasters can push you over it.

I believe that between $5,000- $10,000 in liquid savings that can be turned into cash anytime with very little risk of capital loss is not too much, adding that $5,000 was the recommended minimum.

Among expenses to factor into a home-buying decision:
-Utilities: Heat, electricity, water and sewer, telephone, cable television, Internet and cell phones. You also may have to pay a fee for trash collection and recycling.
-Food/entertainment: Dining in and out, movies, hobbies.
-Children: Day care, tuition, lunch money, supplies, clothing, sports gear.
-Health costs: Braces, eyeglasses, medicine.
-Debt: Credit-card payments, car/student loans.
-Maintenance/repairs/decor: Furnishings and appliances, landscaping, snow removal.
-Job expenses: Transportation (gasoline or transit costs), auto maintenance.

For more information, please email me at thomaswohl@remax.net  with question or visit my web site at http://www.thomaswohl.com

Thomas Wohl, Broker
RE/MAX Preferred Associates

919-601-3005

The lost art of COMMUNICATION

I just saw this article on Communication and social media. I think it is really interesting how the avenues of human contact is changing and how the "basic" conversation "still works"

LOL and BRB might be key communication elements in a texting, emailing, social-media-obsessed world, but they don't make for high quality communication or conversation. Sometimes you might not even know what your communicating counterpart is even saying to you. With communication becoming more and more diluted by technology an essential element in building strong, mutually beneficial, and even profitable relationships.

"Conversations are the building blocks of relationships," Without it, we form relationships that are devoid of substance. Unfortunately, we live in a world where the modern MO seems to be less talking and more texting. People either think they don't have the time or don't think it's necessary to take the time to have real conversations with each other. But for anyone who wants to create truly beneficial relationships, you have to stop texting, walk away from the computer, and connect with someone one-on-one through a great conversation.

The goal of any conversation should be to build a mutually beneficial relationship with that other person! By having a conversation with someone, you're committing to connecting with him or her for the next 10, 15, 30 minutes or more. Follow that conversation to its conclusion, and you never know what you will find out. The point is you have to be willing to have it in the first place, and that is something that too few of us value these days.

Today, you can find out almost anything you'd ever want to know in seconds. You can rattle off a text faster than you can dial someone's number. You can send an email out to multiple contacts in a couple of minutes. But with this speed of communication,, you often sacrifice quality; and, ultimately, this sacrifice leaves you with paper-thin relationships.

Texting, IMing, and emailing provide great ways to communicate, but there is a one-sidedness to the kind of communication they allow. There is a delay in the actual exchange of ideas that doesn't exist when you are speaking with someone. With these methods, the chances are also higher that you will be misunderstood or you will misunderstand the other person because there's no way to capture tone and feeling in a way that ensures it won't be confused. To truly express yourself and allow others to express themselves, conversation provides the highest quality of communication.

It's an opportunity-making skill. Being a great conversationalist can lead to great opportunities, both in your professional and social lives. For example, to get your dream job, you'll have to back up your meticulously written resume with a great interview. The most comfortable interviews are those that feel like normal conversations--a give and take between two (or more) people who genuinely want to learn about one another. Once you get the job, your conversations with your new colleagues will help you gain their trust and build a rapport that helps you (and them) succeed.

In your social life, if you want to ask someone on a date or even just make a new friend, you're going to have to be able to talk to that person. These are all situations where technology is only going to get you so far. Life's opportunities are sealed with conversation, not texting or emailing. As it is impersonal. And if it is easier because some one is so shy, maybe a good life coach or therapist would be a better answer and "friending" people by a click of a button....

It's a great way to invest in others. The act of listening--the other half of a great conversation and I think this is what most of us lack--shows people you care. When you speak with someone and listen to what he or she has to say, you are showing that person you value him or her and the wonderful thing is that in the flow of a great conversation, he or she is giving that courtesy right back to you.

I truly believe in communication that is done by a personal touch. I like to listen to the voice and tone as the email does not give any clues of the person's state of mind or mood. Words are not just words, at least not in my book.

8251 City Loft Ralewigh NC- Towhome with two master suites and wooded yard!

Absolutely gorgeous town home with sun filled open floor plan.

 Formal dining room could fit many guests to entertain

 This great unit features two master suites upstairs with two full baths and laundry (washer dryer included). The kitchen is open to family room and plenty of counter space and tall cabinets. This home ha sbeen freshly painted in 2011! 

This is also a "walkable" community with neighborhood shopping center:

http://www.walkscore.com/score/8251-City-Loft-Court-Raleigh-NC-27613

AND near Umstead State Park:

http://www.ncparks.gov/Visit/parks/wium/main.php

HOA dues also include beautiful pool

 "forever green" private back yard as it backs up to natural wooded area.

For more information please contact me!

http://www.thomaswohl.com

4457 Fairview Ridge Lane Apex NC

Elegant and beautiful open floor with great foyer! This magnificent house had one of the best, open plans with huge family room that features 10ft+ stacked stone gas log fireplace and extended area with eight windows that fills up the room with plenty of sunlight!

This home also features a huge kitchen with cherry cabinets as well as granite counters kitchen island with room for barstools. Dining room is over sized and easily fits a small "army" of guests!

 There is a huge bonus room over the three car garage with many possible recreational or entertainment uses!

 Unfinished basement with nearly 1200Sqft and outside entrance to private, wooded back yard! More information and full listing details at http://ww.thomaswohl.com/
This neighborhood also has two community pools and rec centers with playgrounds! Walking distance to top ranked NC schools.

Please view the slide show of this magnificent property at:

http://www.slide.com/r/nxRcwGuG6z86d77D8yAGtngRFEGRmDaD?previous_view=mscd_embedded_url&view=original

1089 Trentini Ave. Heritage Wake Forest NC

Beautiful Custom Home in Heritage Wake Forest with Golf Course, Community Pool, Soccer Field and Walking trails!

MLS #1773257

Absolutely amazing open floor plan with all custom features! This home features all site finished Oak hardwood floors on main level!

First floor office with french doors and Dining room w/trey ceilings, open kitchen with island and bar area that opens to eat in and family room.

This home is a short drive to Falls Lake where you can camp, fish, walk, take photos

and enjoy the beaches!

http://www.ncparks.gov/Visit/parks/fala/main.php

The back yard is large enough for a two tiered garden and play area. Ir backs up to a natural wooded area as well. Huge master suite and unfinished walk up attic w/theater wiring! Shows like brand new!

Custom built screened Porch with cathedral ceilings.Absolutely beautiful view of fenced back yard, garden beds and playground.

Community recreation, soccer field and GOLF course. Please visit http://www.slide.com/r/aJhxWIZVvz8EuImcpvzB1Gwo17kOkqG6?previous_view=mscd_embedded_url&view=original 

for slide show of this magnificent home!