Real Estate Tips

from BOB RICH

 

 

 

 

 

 

Bob Rich, the President and Founder of The Rich Company established The Rich Company in 1972. He has grown the company to the largest real estate company in eastern North Carolina. Bob's philosophy is that service and reliability come first in this business. Go the extra mile for your client, work harder, do your homework, and good things will happen.

Tip #1 - Improving Quality of Life

Whether you live in an apartment or in a house that no longer meets your needs, buying an affordable new house can improve your quality of life. Home ownership has many advantages, not only in the sense of privacy and security it can give you. It also has the tangible advantages of more and better living space in a community where you and your family will enjoy living.

If you’ve been domiciled in an apartment, you will find living in a house of your own, in a neighborhood of private homes, a refreshing change. There will be fewer people, less congestion, less traffic, and less noise.

Home ownership also improves your credit rating. Owning your own home is considered a sign of financial stability. It represents an investment that continues to grow each year. If you’re in the market for a house, why not call us for an appointment so we can show you what we have to offer.

Tip #2 - A Fantastic Investment

The best investment you can make is the roof over your head. Not only does Uncle Sam subsidize your investment with fantastic tax breaks, but you can invariably count on a gratifying profit when it comes time to sell. In recent years, some of those gains have been spectacular.

How does the government subsidize the home buyer? First, you might be able to get a federally backed mortgage through the FHA or VA. Even if yours is a conventional mortgage, you get the biggest tax break of all. Uncle Sam says the interest you pay on the loan is tax deductible. This can be huge deductions. For the first seven years you own your home, over 90% of your monthly payments amount to interest. When you sell after two years, there is no capital gains tax on the first $500,000 profit from the sale.

If you don’t own a home --- even a vacation home or condo --- you are missing out on a fantastic investment.

Tip #3 - Finance Contingency Clause

How can you be sure you can get the necessary financing before going ahead with a home purchase. The answer is a contingent offer. Financial contingencies are common negotiations.

For example, you can agree to purchase the house you want contingent upon your obtaining a specified amount of financing. Naturally, the seller must agree to this contingency.

You will be asked to meet the terms of the contingency or eliminate it within a period of time. For instance, the seller may grant you thirty days to obtain a mortgage commitment. In the event you can’t obtain mortgage commitment, the contingency may require you to decide between purchasing the property for cash or voiding the transaction.

When a purchase agreement contains a mortgage contingency clause, the seller will often grant an additional period of time to close the transaction once the buyer obtains financing commitment.

Contact The Rich Company...
We will answer your real estate questions.
800-849-2456

Bob Rich, President and Founder of The Rich Company, has answers to your real estate questions.