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Thanks Dustin! I think you and I have traveled similar paths. 🙂
Another bit of Dave Ramsey’s wisdom comes to mind about only asking “How much per month?” regarding just the mortgage payment. That thinking leaves out so many of the other expenses that can ultimately lead to a couple losing their home.
Kim,
This is very sound advice. If more couples followed these insights life would be more comfortable for them.
Two other add-ons to consider: 1 – You mention it briefly but everyone should have a written budget so every dollar has a name before the month begins. Many couples we work with have difficulty finding money to accomplish what they want to do every month until we show them precisely how to do an easy, step-by-step workable budget. Usually they find money sifting out through a few holes in their month.
2 – Seek a Realtor who will give you, in advance, the specific estimated closing costs for your area and price range. The bank, as you mentioned, is a good resource but so is a sound real estate professional who will have your interest at heart. This also allows you to interview several Realtor’s before getting into the “buying frenzy”.
Great thoughts, Kim!
— Jerry Stumpf – Romance and Marriage Coach
ReplyGreat points, Jerry! Learning how to budget was a lifesaver for my husband and I. It’s scary to look back and realize how close we skated to the edge of major financial difficulties, especially in buying one home in particular.
Realtors can be great sources of other information, too, such neighborhood histories and values. Thanks for adding to the conversation!
Great list! With each of our two home purchases, I felt like we ended up spending close to $5000 at the local home improvement store (probably with some curtains, etc mixed in). With #2 (a 25 year old home, with original kitchen, bath, and flooring), we’ve been here about a 18 months and have easily spent $25000 in upgrades and repairs, but we were expecting every bit before we put an offer in, just not all of it so quickly (new flooring, fence, new HVAC, updated half bath, mostly remodeled master bath, which all add up quickly). Another full bath and the kitchen to go, but those may take a while to save up for, and they’re functional as is.
ReplyWow, Nikki-that’s quite a list! Thanks for sharing those figures, as it can be very eye-opening what it can cost to maintain or repair/upgrade. Did you do any of the work yourselves, or did you hire it all out?
Our latest home is about the same age as your latest house. It, too, is dated, but we are doing simple and inexpensive updates for the time being. You can see our kitchen facelift project here, along with the dividends that such a project will pay: http://www.toodarnhappy.com/2014/06/02/thrifty-diy-investment-pays-dividends/
Things have definitely been busy here! We hired most of it out, but did a lot of shopping around. We hired a big box store to replace the carpet (before we moved in – sellers had cats, we are all allergic), a company to install the fence (our neighbors did theirs at the same time, so we split the middle part and got a better price doing two at once), a contractor friend to do the laminate, wood stairs, and most of the master bath (demo, drywall, plumbing, and tile, complete with removing a shower stall and jacuzzi tub, and installing a new, tiled, double shower), while we did wallpaper removal and paint (mostly, the paint is almost done, and we started the bathroom in November) and plan to paint the vanity and replace the countertop, a family friend did the HVAC (they have a third generation mechanical business our family has been working with since before the business was a full time venture for the first generation), and we did the half bath (except floors, which were part of the laminate) ourselves (wallpaper, drywall repair, paint, cabinet, and vanity). It definitely pays to know people, and to be flexible about the timetable. We decided with this house to just do the renovations we want the first time rather than doing fixes and doing them again later, so the floors and master bath definitely cost more than they could have, but they’re exactly what we want them to be (aside from the master being not quite finished). I’m not looking forward to the next bath, as its more wallpaper to deal with (as is the kitchen).
ReplyI’m get tired just reading your list-wow! :-O
I agree-flexibility is key, as is knowing folks. We found that having a punch list is helpful, too. While punch lists are normally a list of tasks needed to finish up a construction project, we use them as mini-goals on our way to bringing the house ever closer to what we want it to do and be.
Good luck on your projects!