Finance

Set Emotion Aside During a House Sale

August 28, 2014 By Twila Van Leer

A home seller who is making decisions based on emotional feelings about their property may find the going very slow, real estate experts say. Failure to look at the sale as a financial transaction (although a very important financial transaction) may thwart efforts to consummate the sale. Cold, hard decisions should be made without sentimentality getting in the way, they say.

The experts offer these suggestions to avoid pitfalls related to emotion:

Don’t expect a potential buyer to see the value you attach to certain features of your property. They are not likely to pay a premium for something that has special value only in your mind. Don’t’ let your emotional attachments lead you into setting an unrealistic price. Remember, too, that the price you paid for your property is not likely the price that it will bring. While an older property may have escalated in value, if you bought at the market’s peak a few years ago, you may find the asking price will be adjusted downward.

If you have marked emotional feelings about the property, please let the realtor conduct showings. Make arrangements to be absent, says Renee Weinberg of Petrey Real Estate in Long Beach, N. Y. , in a Bankrate.com article.

Having the seller at hand becomes sensitive when a potential buyer finds flaws in the property, agreed Karyn Anjali Glubis of The Real Estate Expert in Tampa, Fla. When the seller takes comments personally, the sale is jeopardized. The seller must remember that the comments relate to the property, not to the person, she said. The involvement of the seller may hamper the free flow of conversation between the prospective buyers and the realtor. Better that the parties do not meet until there is a serious proposal for purchase.

Those who are selling need to be aware that the most interest will come during the first two weeks. The longer a property is on the market, the worse the offers are likely to get, the experts know. Sellers worry that they may have underpriced their property, but waiting for a better offer may keep the property on the market longer. The market tends to make reasonable adjustments over time.

Taking the whole process personally is a mistake, said Fiona Dogan, a realtor in Rye, N.Y. “Sellers need to become emotionally detached very quickly from their homes. By its nature, a real estate transaction is aggressive and confrontational since the seller wants the highest price and the buyer the lowest.” Negotiations usually will mean that the would-be buyer will point out flaws and the seller could be offended. But such nit-picking means the buyer is genuinely interested, Dogan said. To pass up the sale because of such feelings defeats the purpose in a big way.

Americans Admit Lack Of Personal Finance Savvy

July 16, 2014 By Twila Van Leer

Prepared — 8% of people surveyed feel they have a firm grip on their personal finance skills.

Most Americans believe they are not very proficient in managing their finances and one in four actually wish they could avoid the necessity altogether, a recent survey conducted by the National Foundation for Credit Counseling found.

Only 8 percent of the 644 respondents to the website survey said they had a firm grip on their personal finances. Thirty percent classified themselves as “mid-level management;” 35 percent as “entry-level” trying to learn the ropes; and 26 percent said they’d like to shuck the job entirely. Another survey by the foundation showed that 41 percent of the respondents would grade themselves at a C or lower in that area of their adult lives.

Most of those who were surveyed most recently and felt themselves inadequate to managing their finances also were under the impression that they were the only ones who were rotten at the job. But the truth is that many people are uncomfortable with the assignment, said Gail Cunningham, a spokeswoman for the foundation.

At the root of the problem is the fact that fewer than half the states require any education regarding personal finances to gain a high school diploma, Cunningham said. Most people learn from their parents, many of whom have the same lack of expertise when it comes to managing their money. It becomes a generational failing.

Many people seek financial counseling to help them, often after their finances are already in shambles. The typical household asking for counseling has $35,000 in annual incomes and unsecured debt of $17,500 spread over 5.7 credit cards. Poor management recently topped “reduced income” as the primary impetus for counseling. Poor money skills matched to poor nutritional skills.

Those who line up for credit counseling are primarily in the age range from 25 to 54, with young adults 25-34 at the top of the list (24 percent.) The lowest cohort was in the 45-54 age group, 21 percent of the total, while 23 percent were in the 35-44 age range. Those statistics indicate that financial problems are not uncommon all along the spectrum, boding ill for those who are still in the early stages of their work history. For some, recovery is a lifetime burden.

Other findings that cause concern for the credit counseling industry:

– Some people are earning more as the economy improves, but they are not managing the additional income well and the financial stress continues.
– Owing more than your income will support easily (a high debt-to-income ratio) makes it harder to meet debt and hinders future borrowing.
– The number of credit cards an individual or family has is not as relevant as how those cards are managed. Maxing out the credit lines is likely to reduce credit scores, impacting the ability to buy such things as homes or automobiles.

Last year, more than 1.5 million consumers sought help at the foundation’s counseling agencies, sharing concerns about debt, housing, budgeting and bankruptcy.

To learn about resources for free and affordable confidential advice, call (800-388-2227.) Spanish-speakers call 800-682-9832. Or visit www.nfcc.org.

First-Time Home Buyer? Do It Right

July 14, 2014 By Twila Van Leer

Get The Best Mortgage Loan For Your Home

Making your first investment in a home is a big deal. A combination of angst and anticipation on a steep learning curve. At the moment, the inventory of possible buys is low and lenders are being selective. Be aware and be wary. The better prepared you are the greater your chances of success.

Even if you have the burden of student debt, now at an all-time high average of $30,000 per graduate, it can be done, but it requires an astute approach. On the plus side, interest rates continue to be relatively low, so now is the time. A suggested timeline for home-buying includes:

A year in advance:

Get serious about the figures. Trulia.com has a “rent-or-buy” calculator that would help you decide if buying is in the cards or whether it would be wiser to continue renting. At the moment nationwide, buying is 38 percent cheaper than renting. Feed in your data and see how you score. Get your finances in order. Spend the year saving money and, if possible, paying down debt. An FHA loan requires at least 3.5 percent down. Conventional mortgages call for 10 percent to 20 percent. Are your jobs stable? The potential mortgage institution will want to know. Be studying the housing market to learn what appeals to you. Browse the Internet listings and save the ones that you think you’d really like to see.

Six months to go

Order free credit reports and eliminate any mistakes before they come to the attention of a potential seller. Pay your bills on time and if you have a few bucks left at the end of a pay period, apply them to debt. Don’t take on new debt. Approval for mortgage applicants requires a minimum credit score of 755. Zillow.com has an online calculator that will help you estimate what you can afford for a new home, based on income, savings and debt. Look at tax rates in the target area you propose. Don’t court disappointment by overestimating what you can afford. Try to forecast future expenses. Maintenance on a home adds, on average, 1 percent to the cost of home owning.

Three months out

You’re ready, armed with the information you need. Now determine what type of mortgage you want to pursue. Fixed mortgage rates, now at about 4.4 percent, could go up to 5 percent this year, according to industry forecasts. A 7/1 adjustable-rate loan carries interest of only 3.5 percent now. For the sake of that lower rate, however, you run the risk that you could stay in the home longer than seven years and face a sharp interest rise. That’s why 92 percent of mortgage borrowers stick to fixed-rate loans. Many banks will pre-approve a mortgage loan based on income and credit. That’s a huge advantage when the actual search for a home begins.

Time to go

Find a realtor in the area where you want to buy. Screen to be certain the person you select will serve the best interests of your home purchase. Good questions to ask: How does the realtor go about finding listings and how are potential bidding wars handled?

That’s it. Happy house hunting!

Personal Chefs For The Super Rich

June 12, 2014 By Sherry Tingley

From Private Chefs Inc. — Foods served by the Private Chefs Inc.

Ever dream of what it would be like to have your own personal chef? One percent of the population can afford to treat themselves to this kind of luxury, while the rest of us, just dream about it. We may be driving Cadillacs in our dreams.

Costs: $2800 A Day

Private Chefs Inc provides the super-rich with culinary delights anytime they are willing to pay $2,800 per person for the convenience of a personal chef. Past customers like Aaron Spelling, Adam Sandler, Arnold Schwarzenneger, Beyonce, Bill Gates, Dale Earnhardt, Lady Gaga, Jerry Bruckheimer and George Lucas have been satisfied clients.

Founded by Christian Paier, Private Chefs is in the business of catering to the wealthy. The company provides clients with a personal chef for a day. The private chef consults with his clients about the menu, does the grocery shopping, meal preparation and kitchen clean up. They serve individuals as well as large groups.

Christian Paier, Founder of Private Chefs Inc.

So how did Christian Paier become skilled enough to satisfy the palates of the super wealthy? Christain Paier’s unique background in cuisine started at an early age. His parents, residents of a town in Southern Austria owned meat shops as well as restaurants and he was surrounded by quality cuisine. By the time he was fourteen, he knew he wanted to be a chef.

Executive Chef For A 5 Star Hotel

His official training began at the Hotel Kramer in the Austrian Alps, where he learned from the greatest chefs in Europe. From there he accepted a position at The Breakers hotel in Palm Beach Florida. At the age of 22, he became the youngest executive banquet chef in the hotel’s history.

After four years at the Breakers hotel, he began work at the trendy Rockenwagner’s in Santa Monica, California. Impressing many of his high profile clients he received many offers to be a private chef. One of the offers led him to an eight year job with “Hollywood Royalty.”

Founding Private Chefs Inc.

By 1995, he had created Private Chefs Inc. His company is currently well recognized, appearing in more than 50 magazines and newspaper articles as well as a television show. Forbes magazine says,

“About the last thing a new millennium mover-and-shaker needs to do at the end of the day is toil over a hot stove. Private Chefs Inc., a Beverly Hills-based employment agency, serves up in-home chefs to the fabulously wealthy.”

The 99% of Americans who can’t afford a chef from Private Chefs Inc., may have to resort to watching the TV show, “Celebrity Dish,” where you get an inside look at amazing recipes and lifestyles.

What Not To Buy In 2014

May 19, 2014 By Twila Van Leer

Save Money On Traveling — Extra Leg Room On Trips – Is It Worth The Price?

Technologies are changing and require more review of intended purchases if you’re in the market for products. Here is a list of products from around the web that you might want to avoid if you want to keep your money in your wallet.

1 – Landlines

Landline telephone services are rapidly being replaced by wireless phones. Two in five households had switched to wireless the first half of last year, up slightly from the first half of 2012. In the past decade, some 90 million adults, 38 percent of the population, became wireless-only. Scrapping the landline allows you to drop one of the monthly bills. And you needn’t be restricted to a cellphone. There’s Skype, which is free and puts you in touch with friends and family around the world via smartphone and other devices. FaceTime video may be free with a Wi-Fi connection. MagicJack Plus can be connected to a USB port, computer or regular phone router. It may cost $49.95 for the device and six months of service, after which the monthly service is $1.67 to $2.50 per month. Some folks may want to retain their landline as well. There is more security in case of disruptions caused by bad weather or other problems.

2 – GPS

Before investing up to $300 to purchase a GPS device, look at new developments that serve the same purpose. There are GPS apps on many smartphones, a fair number of them free to upload. A growing number of new cars come with a GPS option. Forty-nine percent of 2013 vehicles have a navigation system.

3 – Cable Television

Cable television is being replace by other technologies. Since 2004, subscribers to cable have been dropping out in favor of services such as Hulu and Netflix NFLX, which provide comparable service at a much lower cost. Using an Internet connection, consumers can stream many cable shows, news programs and sports events, as well as movies, directly to their TVs. Some channels offer access to programs through their websites. These services are available primarily to those who don’t care if their shows have been previously aired and who are willing to give up live programming.

4 – Hotel Rooms

The demand for hotel rooms, along with their rates, are going up. There are some alternatives, including apartments and homes where prices are lower and there is usually more space. The average daily rate at U.S. hotels is $110.59, up 4.1 percent from 2012 and 12.6 percent from 2010. The average is expected to rise to $115.68 in 2014, according to PricewaterhouseCoopers. Agencies such as Airbnb and Vacation Rentals By Owners, offer an assortment of homes you can rent. Some provide free airport pickup and drop-off services. This approach is particularly effective for large groups or families traveling together. Advantages may include many bedrooms and facilities for meal preparation. The downside: such arrangements usually offer less security than do hotels.

5 – DVD & Blue-Ray Players

DVD and Blue Ray player sales are down. Sales for DVD and Blu-ray units totaled 21.3 million in 20l2. That’s down 20-plus percent from a year prior and 24.8 percent from 2010. More people are opting to stream movies from Internet services such as Hulu and Netflix. Many gamers can use their consoles to watch DVDs.

6 – Computers

Desktop and laptop computers are becoming obsolete to a degree. Tablets perform the same functions and they’re portable. The price differential is considerable, with Apple’s IMac starting at $1,299, compared with an iPad at $299. Graphic designers and traders, obviously, will find it necessary to stay with large screens, but for the vast majority of users, the smaller versions fill the bill. Worldwide shipments of PCs fell 4 percent in 2012 over the prior year, an indication that PCs are losing ground in the computer market.

7 – Leg Room On Airplanes

Airlines are changing their approaches to giving passengers more amenities — for a fee. It has been common practice to provide an extra three to six inches of legroom in coach for an additional cost of up to $180. The seats often are in the exit rows or the first row in economy. But for a payment of $100 to $200, a traveler can be upgraded to business class, where seats are more comfortable and service is more accommodating. These are options that used to be reserved for frequent fliers, but now they are offered to any passenger willing to pay a bit more when they check in or at the gate.

8 – Credit Cards With Rewards

Credit card companies are altering rewards programs. Consumers should be wary now of promotions that offer rewards in points or miles. Many of the card issuers are requiring a greater outlay by the consumer to get the “free reward” they could have obtained earlier with fewer points. Many of the cards now come with annual fees ranging from $30 to $75. Instead, consider a credit card with a cash-back offering, a much more straightforward plan. The usual kickback is 1 percent to 5 percent of the number of dollars involved in the purchase.

9 – Digital Cameras

Digital cameras are suffering an identity crisis. With competition from cell phones with photo capacities and an expanding range of options for picture-takers with particular goals in mind, there is a confusing array of choices. Digital point-and-shoot cameras that have been the rage for years are seeing a decline in demand. Sales are down some 44 percent since 2012 and they’re expected to keep dropping. “Real” photographers are choosing larger, DSLR cameras, while those bent on action shots are finding models such as the Go-Pro best meet their needs. Be sure that what you get is what you really want.

10 – Credit Reports

By law, credit card reports cannot be more than $11.50 per report. Your credit score is often not included in these reports. You can order three different FICO scores – one from each credit reporting bureau – but it will cost you – $59.85. Some credit cards like Discover Card are showing customers credit scores every month when consumers sign on to their accounts. You can’t beat free credit scores!

As a consumer we want you to save money on all your purchases in 2014. If you know about other good savings tips, please share with us!