Category Archives: Real Estate

Consumer Debt: The Good, The Bad, and The Ugly

Consumer Debt: The Good, The Bad, and The Ugly


Fast forward to 4:05 on this video.  Brian and Frank go over what is Good Consumer Debt and what is Bad Consumer Debt.  At 6:12 of the video, looks like mortgage debt is on a decline (Good Debt) and Credit Card and Car loans are on the incline (Bad Debt).

About 6:40 in the video, they go on to say that everyone is worried about the “wedding day” aka the day you close on the home than what happens after the wedding day for the next thirty years.  There is a really good point that Brian and Frank make from the National Real Estate Post.  You cannot just think about the closing; you have to manage the finances what happens after the closing also.

My concern is who is taking on this bad consumer debt?  Home Owners or Renters.  Nothing is said about who is taking on the debt.  It is all a matter of how to handling financing, which I truly believe there is a lack of education on actually managing household finances.

My two cents and observations…  Thank you Brian and Frank from National Real Estate Post for the video that gave me this blog to write.

The Goodwill Factor in Negotiation

The Goodwill Factor in Negotiation

Real Estate negotiation (depending on the people involved) should be more about the Goodwill factor that will bring about something you will most likely need at a very critical moment of the transaction.  Negotiation doesn’t end after the purchase contract signed, unless you have waived the contingencies.

goodwill (noun):  the favor or advantage that a business has acquired especially through its brand and its good reputation.

Mirriam-Webster Collegiate Dictionary Eleventh Addition

I especially like this definition of goodwill because it is the essence of what I am trying to convey in negotiation.   When you negotiate, you are factoring in advantages seen and unseen.  There are concessions you can make that would help in your favor if something else totally does not go your way.  It’s about winning the war not necessarily winning that specific battle.  Judge what your need or want is against a factor that is coming down the pike.  Like knowing that you desire an earlier closing over getting the radon mitigated.

Being a pain to the other side just to prove a point usually does not make for a smooth transaction.  It only causes hurt feelings and makes the transaction more difficult in the end.

Also, negotiation is learning to piece out information at the right moment in time.  It is not always necessary to reveal a piece of information unless they other side specifically asks for it.

Example:  An agent asks the listing agent if getting an offer in by a certain time of the day is fine.  They assume there is a multiple offer situation and overbids on the home.  The listing agent had no obligation to say that there aren’t any offers.  The selling agent (buyer’s agent) should have asked if there are offers on the table.

Knowing what to ask, when to ask it and/or what to say and when to say it is more important in the goodwill factor in the negotiation process than who put the beat down over the other side.

Is This the Best Time To Sell Your Home?

Is This the Best Time To Sell Your Home?

Yes, more than ever before.  There is a pent up demand that the dam is going to burst.  Look at Figure A.  It is much more costly to rent than it has been historically; yet, it is more affordable than it has been historical to buy a home.

Figure A

Do you think interest rates are going to skyrocket and leave people behind in the dust?  Look at Figure B.  Doesn’t look that way to me.  Yes, there is going to be gradual rate increasing; however, none that is going to scare potential buyers a way in the next six months.  Quite on the contrary, buyers are going to be wanting to buy to avoid the rate increases.

Figure B

It is all about timing.  If you have been waiting to move, the next couple of ears is the time.  Otherwise, the market will shift again to a more neutral setting.   If you are on the fence, time to get off.  Get your house ready to sell and MOVE!