Real Estate Market

With the spring real estate market quickly approaching, now is the time to start preparing should you be planning on considering a sale.

It is interesting to see how many home sellers take it upon themselves to prepare there homes for market prior to calling-in and interviewing a real estate agent.

I consider a real estate agents expertise to be worth tapping before spending any money preparing a home for market.  Interestingly enough, the things that were so important in the boom real estate market are not necessarily the same 'must do's' that are required for the new market.  

I see this first hand with homes selling in todays arena that sold in the 2004-2007 marketplace.  For example, even if the new listing price is correctly reflecting current values and taking into account depreciation from the post housing bubble, problems attached to the house that may have been overlooked by buyers in yesterdays market can be major red flags in todays market.

One of the bigger reasons for this is the inability to assume that you are going to be getting any real 'near term' appreciation out of your home (as you may have seen in the hyper-accelerated appreciation market of yesteryear).  

Moving out of the market trend based on the speculation of appreciation has made buyers much  more conservative with there purchase choices.  Homes with larger structural issues such as foundation problems or other high cost to repair health and safety issues can now turn a house into a red herring.

Before preparing your house for market take the time to speak with a real estate professional about your property and what you may want to consider doing to better your chances of getting top dollar for your home.

Ever wonder how the rich get richer? It's simple. They spend less than they earn, and invest the difference. If you're not born into money, here are five tips for spending less so you can invest more and build wealth this year.

1.  Track Your Spending.  It's hard to tell where you're spending too much if you don't write anything down. But who wants to save receipts, log a checkbook register, or use a spreadsheet? New online tools help you automatically track all your financial information in one place, for free. At www.mint.com you can set up a free account to see exactly where your money is going.

2.  Use a Budget.  This financial practice of the rich has enormous power. You may prefer to call it a "spending plan" but the idea here is to know how much you can spend on different categories so you don't overextend yourself. Include savings as a category and "pay yourself first" each month by putting money aside into a designated savings account.

3.  Reign in Expensive Habits.  Smoking and eating out are expensive. Statistics show that the pack-a-day smoker spends nearly $260,000 over a lifetime – and that does not include increased insurance costs and other factors. Or, you may enjoy eating at nice restaurants each week, which is another budget killer. What habits can you reduce to save money?

4.  Pay Down Debt.  As you free up more of your income it can be smart to pay down high-interest debt. For example, taking extra money to pay down a loan with 10% interest can be better than putting money in a savings account at 3% interest.

5.  Pay In Cash.  Credit card companies know you spend more when there's not an immediate withdrawal from your bank account. Try to pay for everything in cash (or debit card). If you want a new computer, to take a vacation, or even a car, try to save up and pay for it in cash instead of getting a loan. Remember, the key here is it to not take on more debt.

The secret to building wealth is to reduce your spending and debt so more of your income can work for you. Follow these tips to free up more money for savings and investments. And may you have a prosperous New Year!