Special offer

Maxed Out

By
Real Estate Agent with William Raveis Real Estate

Money Down The Toilet

The US Federal Government reached their debt limits tonight.  The Federal Government's budget is more complex than a standard household budget, but the same concepts remain:

Do you spend more than you earn?

  • Do you consider personal budgets when you work with buyers?
  • Do you discuss with buyers what they can afford to spend each month, as opposed to what they are pre-qualified to purchase?
  • Do your buyers understand how different types of mortgages alter their monthly payments?

I have this discussion early in my relationship with my buyer clients.  While so many agents focus on the purchase price, they ignore the monthly budget of the buyers.  For a home-buyer, this number is crucial.

I hope our government exercises the needed fiscal restraint to balance our budget and manage our debt.  I help my clients each do the same.

Posted by

Scott Silverstone, Realtor®
The Jacobson Team
William Raveis Real Estate
203-815-9118 (Mobile)
www.ctproperty.com

Comments(5)

Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Scott,

I do not even mention this withh my buyers. The reason being that we sell vacation/second home properties to people who buy for cash, so this is not a concern.

In a nutshell, my buyers know  how to do it way better than the Federal Government (LOL)

May 16, 2011 04:36 PM
Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Scott, by the way, I wannted to say that thhis is the coolest and funniest image, that you used here. Excellent, thank you for the laughs

May 16, 2011 04:37 PM
Sonja Patterson
Keller Williams - BV - College Station, TX
Texas Monthly 5-Star Realtor Recipient for the Hou

Scott, that is a wonderful thing you are doing for your clients--making sure they do not overspend!  I believe a person should have a minimum of 10% down (or more), but I realize I'm in a very small minority!  I had ONE client last year who did the minimum of 3.5%.  She truly was paying just as much in rent as she would on her mortgage...and she got a nice deal on a foreclosure.  So, for her situation, it made sense. 

May 16, 2011 04:38 PM
Phil Hillerman
Crye-Leike Realtors® - Rogers, AR
Crye-Leike Realtors®

We all need to learn to live on less that we make.  I can only hope the federal government will learn this lesson.

May 16, 2011 04:39 PM
Deepak Chauhan Asso-Broker, MLO
Versailles Property - Irvine, CA
Your Solution-Oriented Realtor

Wrong decisions, wrong results, we are all in this together, vote carefully.

May 16, 2011 05:08 PM