But...I can't save money for a down payment.

By
Real Estate Broker/Owner with WHISPERING PINES REALTY 20398180

I again heard this from a client.  We have him qualified, and all he needs to do is save $2000.  He has $1000. 

He cliams he and his wife have no extra money to save.

"How bad do you want to buy a house?"  I asked them both.

"WE would do most anything," they both said. So we started.

Week day for work.  Both have office jobs.   Both buy all their drinks and meals from work or another restaurant.  When I explained that they did not NEED 5 latte's in a day.  Bring candy bars and chips from home. They could also brown bag it a couple days a week.  We came up with a saving between them of just over $300. A WEEK!

WE looked at Cell phone contracts and use.  We looked at cable TV. 

A big one was car Pooling.  They work 5 miles apart.  And start and get off work within a 1/2 hour.  Instead of driving separately they will ride together.   Savings of $20 a day just on gas not to mention oil changes.

This couple ate out 4 days a week on average.  Now, 1 day for a night out, and set a limit on the amount they would spend on a meal.  About 1/2 of normal meals.

This was some of the short term things we looked at.

Long term:

Deductibles on car, home and health ins.

Adjustable thermostats for heat and cooling.

Run their current cars for an extra two years.

Turn off lights and replace worn equipment with energy efficient ones.  ie; appliances.


This is just a small amount of saving that can be had.  Many of us, me included spend on things that we want, not NEED.

My hats off to this couple.  The first 2 weeks, they have saved just over $900.  We are now actively looking to buy!

I wish more of my clients had the same drive as this couple does.


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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Randi Brammer 10/27/2011 06:16 AM
Topic:
ActiveRain Community
Location:
Minnesota Chisago County North Branch
Groups:
Realtors®
Out Of The Box!
Christianity and Real Estate
"Whacked"!!!
Minnesota Real Estate
Tags:
advice
minnesota living

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Rainmaker
565,766
Jordon Wheeler
The Jordon Wheeler Group - Fairburn, GA
J W Group Real Estate Sales and Service

Hey William, really cool post.  And your clients listened to you.  Just a good financial review and you have them seeing the reality of saving another $1000 in a short period of time.  Continued success to you!  Suggest

Oct 27, 2011 02:28 AM #1
Rainmaker
2,295,937
Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

My compliments to you! What an impact you are making in their lives. Stop and think, how many other folks could learn from the advice that you gave.

Oct 27, 2011 02:30 AM #2
Rainmaker
320,361
Kathy Torline
ERA Herman Group Real Estate - Colorado Springs, CO
Colorado Springs Real Estate Blog 719-287-1049

Good job on helping guide your buyers.

Oct 27, 2011 02:59 AM #3
Rainmaker
127,962
Wendy Cutrufelli
Alain Pinel Realtors - Walnut Creek, CA
Contra Costa Realtor

Kudos to you for taking the time to walk them through the entire budget process!  Kudos to your buyers for actually making the changes!  There are no shortage of buyers who say they will do "almost anything" but, when faced with the reality, don't really mean it.

Oct 27, 2011 03:27 AM #4
Rainmaker
524,490
Ralph Janisch ABR CRS Broker
Janisch & Co. - Conroe, TX
Selling Northwest Houston to good people like you!

It's amazing the simple things one can do to save some money.  Most are common sense but are hard to see without the unbiased 3rd party to help examine the situation.

Oct 27, 2011 04:03 AM #5
Rainmaker
564,591
Steve, Joel & Steve A. Chain
Chain Real Estate Investments & Mortgage, Steve & Joel Chain - Cottonwood, CA

Will,

You really are a full service REALTOR. I'm sure your clients realize that.

Steve

Oct 27, 2011 04:16 AM #6
Rainmaker
631,662
Vern Eaton
Askov, MN
Realtor 651-674-7449

Bill, this shows that it can be done.  Many buyers just need to set priorities straight.

It many times needs to be shown to them by us.

I will also suggest!

Oct 27, 2011 05:24 AM #7
Rainmaker
3,983,869
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Jordon...thanks for the thumbs up.

Wendy, that is how we make things happen.

Jeannie....That is so true.

Steve...It is partof the way we bring our Profession into a possitive light.

Vern...Thanks

Oct 27, 2011 05:48 AM #8
Rainmaker
320,000
Randi Brammer
Randi Brammer, Acctg. - Hinckley, MN
Accountant & Tax Preparer

Bill, as an accountant I do this all the time.  Most people don't realize how much money they really waste.

Suggested and re-bloggeed!

Oct 27, 2011 06:14 AM #10
Rainmaker
3,983,869
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Thanks for the re-blog Randi!

Oct 27, 2011 06:18 AM #11
Rainmaker
631,662
Vern Eaton
Askov, MN
Realtor 651-674-7449

Bill, I will add that most sellers and many buyers need to get rid of un-needed stuff before moving.  A yard sale is a great way to get rid of things and make a few dollars.  just make sure those dollars are saved for the new purchase!

Oct 27, 2011 07:20 AM #12
Rainmaker
592,740
Than Maynard
Coldwell Banker Heart of Oklahoma - Purcell, OK
Broker - Licensed to List & Sell - 405-990-8862

I wish more would listen! Had a young couple once that was spending over $1100/month on car payments (this was 15 years ago, btw). They wanted a house payment of $500/month! The houses they wanted to look at were $1000/mo on average.

I asked about the cars and he said "We trade every two years and I won't give that up! I only finance them for 3 or 4 years and the house would be for 30 years, so it should be a smaller payment per month." I tried a few more times and, well, it went nowhere.

 

Oct 27, 2011 10:15 AM #13
Rainmaker
3,983,869
William Feela
WHISPERING PINES REALTY - North Branch, MN
Realtor, Whispering Pines Realty 651-674-5999 No.

Than...sometimes peoples priorities are really scewed.  There is no changing their thoughts.  They are the keep up with the Jones's type of people!

Oct 27, 2011 10:22 AM #14
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Rainmaker
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William Feela

Realtor, Whispering Pines Realty 651-674-5999 No.
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