Thursday, September 10, 2009

Take Charge: Is Your Credit and Debt Profile Optimized?

Here are some simple first steps to consider in liability management:

STEP 1: Understand How Credit Works–Now is not the time to be content with understanding 80% of what you need to know about your credit or saying, “I’ll get to it tomorrow because I don’t have time today.” Ninety-four percent of consumers are challenged with understanding the basics of how personal credit works to assure they have the best credit and debt profile possible. In most cases they build credit over a lifetime of “trial and error.” The constantly changing credit environment creates a situation whereby everyone can use a trained professional to help keep them educated.

STEP 2: Continually Evaluate and Monitor the Health of Your Current Credit Profile–The second step is to evaluate your current credit and debt profile and establish a plan based on your short- and long-term credit needs. Continually monitoring your credit report and profile is no different or less important today than getting a physical exam by your doctor.

STEP 3: Optimize Your Credit–Each of your debts should be periodically reviewed and analyzed. Are there options you can take to improve your overall credit profile so that you’re more desirable to creditors for their “preferred” interest rates? Should you consolidate some of your debt? Once you strengthen your credit and debt profile, do you have options on your home, auto and credit cards to negotiate lower interest rates and terms that would save you money monthly?

STEP 4: Rethink New Purchases–Excellent credit is like an insurance policy. When you need to use it you want to help ensure you qualify for the preferred interest rates and terms that will give you the best payment options based on your needs and capabilities. Maintaining your credit “insurance policy” is critical for special purchases like a home, car or major appliances when needed. Don’t wait until there’s an immediate need because your chance of making a material and impactful change in your profile overnight is very difficult.

Don’t let anyone mislead you. It takes time, knowledge and planning to assure you build, optimize and manage your personal credit and debt profile so that you can help maintain the affordability of what you have and/or create a better opportunity to qualify for preferred interest rates and terms on purchases requiring additional credit. Effective liability management all starts with the four steps above.

Wednesday, September 9, 2009

Budget Home Updates

From HGTV FrontDoor Real Estate

I know we all have things we'd like to update in our homes. Here are a couple of tips to spruce up your house now that will help it sell later!

Create curb appeal.
First impressions are critical, especially in a competitive market. If half the homes in your neighborhood are boasting for-sale signs, curb appeal can give your property the edge -- so put a fresh coat of paint on your siding, re-stain your deck or power-wash your patio, and trim back any overgrown shrubs. And don't overlook your front door, which can be a make-or-break detail for would-be buyers. "It's the first thing people see when they pull up, so do they want to come in or not?" Matzke says. If your entryway is lackluster, consider investing in a mahogany door or a decorative-glass style.

Lighten up.
It only takes a few dollars to make your home feel infinitely more warm and welcoming. If you've got clutter, box it up and put it in storage. Replace your mood lighting with the max allowable wattage for your fixtures. Tear down faded or dated wallpaper, and grab a few gallons of paint to cover up blemishes or soften a bold color palette. (So long, mauve living room!) "Neutral, neutral, neutral," Matzke advises. "It sounds really boring, but most people are looking for a house they can move into right now."

Modernize for less.
Kitchens and baths are big-ticket items, but there's no need to plunk down thousands of dollars on a total overhaul. In these rooms, even minor upgrades -- such as new faucets or fresh lighting fixtures -- can reap major rewards, and a little elbow grease can go a long way. "Ripping out and replacing kitchen cabinets is great, but unless they're really horrid, it's probably better just to enamel them," Matzke says. You can also find bargains on newer appliances and plumbing hardware at sites like eBay or Craigslist. In the bathroom, replacing a tired vanity with a pedestal sink can instantly renew the decor and create more space, and outdated vinyl flooring can be replaced with inexpensive ceramic tile. Many big-box home stores offer options for around a dollar per square foot, so tiling a small room won't strain your wallet.

Monday, September 7, 2009

Another Fun Fact...

Did you know the average age of a Realtor (R) is 54?

Friday, September 4, 2009

Return on Investment

Fun fact of the day: Per HGTV most homes receive a 74% ROI on basement remodels. If only we had more basements in Arizona! Stats that are more relevant to us to follow soon...