ANCHOR: WITH INTEREST STAYING WELL BELOW 6 PERCENT FOR A 30-YEAR FIXED-RATE LOAN, HOME BUYERS IN FORCE

ANCHOR: WGN’S MONEY SAVING EXPERT ILYCE GLINK IS HERE TO ANSWER SOME OF YOUR REAL ESTATE QUESTIONS THIS MORNING.

ILYCE: THAT’S RIGHT, LARRY AND ROSEANNE. FOLKS ARE RUNNING INTO ALL SORTS OF PROBLEMS BUYING HOMES. LET’S HAVE THE FIRST LETTER:

DEAR ILYCE: ALTHOUGH WE’RE QUALIFIED FINANCIAL TO BUY OUR FIRST HOME, WE’RE IN A SELLER’S MARKET. THE REAL ESTATE AGENT WE HIRED IS DIFFICULT TO WORK WITH AND GETS ANNOYED WHEN WE ASK QUESTIONS. HOW CAN WE BUY A HOME IN A COMPETITIVE MARKET WITHOUT GETTING CAUGHT UP IN IT?

ANCHOR: DEAR ILYCE: ALTHOUGH WE’RE QUALIFIED FINANCIALLY TO BUY OUR FIRST HOME, WE’RE IN A SELLER’S MARKET. THE REAL ESTATE AGENT WE HIRED IS DIFFICULT TO WORK WITH AND GETS ANNOYED WHEN WE ASK QUESTIONS. HOW CAN WE BUY A HOME IN A COMPETITIVE MARKET WITHOUT GETTING CAUGHT UP IN IT?

ILYCE: AS LONG AS INTEREST RATES STAY LOW, IT’S GOING TO BE A STRONG SELLER’S MARKET, PARTICULARLY FOR LOWER PRICED HOMES. BUT I DON’T LIKE HEARING THAT YOUR REAL ESTATE AGENT ISN’T LISTENING TO YOU.

ILYCE’S ANSWER:

  1. GET A NEW AGENT
  2. KNOW HOW MUCH YOU CAN SPENT
  3. KNOW THE NEIGHBORHOOD – WELL!
  4. KNOW WHAT YOU WANT AND NEED
  5. MOVE FAST FOR RIGHT HOUSE

ILYCE: HERE’S MY ADVICE. FIRST, GET A NEW AGENT . . . PREFERABLY SOMEONE WHO LISTENS TO YOU. NEXT, KNOW HOW MUCH YOU CAN SPEND BUT DON’T TELL YOUR AGENT. THIRD, GET TO KNOW YOUR NEIGHBORHOOD. VISIT LOCAL SHOPS AND RESTAURANTS. NEXT, KNOW WHAT YOU WANT IN A HOUSE, AND WHAT YOU NEED. THAT’LL TEACH YOU HOW TO MAKE THE RIGHT COMPROMISES. FINALLY, MOVE FAST WHEN YOU FIND THE RIGHT HOUSE.

ILYCE: EVEN IF YOU DON’T GET THE FIRST “RIGHT” HOUSE, THERE WILL ALWAYS BE ANOTHER HOUSE THAT YOU’LL LOVE LIVING IN, SO DON’T GET NERVOUS. LET’S TAKE A LOOK AT THE SECOND LETTER, LARRY?

DEAR ILYCE: MY PARENTS OWN TWO HOMES, ONE HERE AND ONE IN TENNESSEE. THEY WANT ALL OF US TO MOVE THERE, BUT I HAVE A JOB HERE AND I LIKE IT. SO, NOW THEY WANT ME TO BUY THEIR HOME HERE FOR $150,000. IT’S APPRAISED FOR A LITTLE MORE THAN THAT. BUT IT DOESN’T HAVE ALL THE THINGS I WANT. SHOULD I BUY MY PARENT’S HOME?

ANCHOR: DEAR ILYCE: MY PARENTS OWN TWO HOMES, ONE HERE AND ONE IN TENNESSEE. THEY WANT ALL OF US TO MOVE THERE, BUT I HAVE A JOB HERE AND I LIKE IT. SO, NOW THEY WANT ME TO BUY THEIR HOME HERE FOR $150,000. IT’S APPRAISED FOR A LITTLE MORE THAN THAT. BUT IT DOESN’T HAVE ALL THE THINGS I WANT. SHOULD I BUY MY PARENT’S HOME?

ILYCE: THIS IS A GREAT QUESTION. DO YOU GIVE YOUR PARENTS AN EASY OUT AND POSSIBLY GET STUCK WITH A HOUSE YOU DON’T WANT TO LIVE IN…. UNLESS YOUR PARENTS ARE GIVING YOU A DEAL THAT’S TOO GOOD TO PASS UP, I’M NOT SURE WHY YOU WOULD SETTLE FOR A HOUSE THAT DOESN’T MEET YOUR NEEDS OR WANTS. IF THE HOUSE IS WORTH $175,000 AND THEY’RE OFFERING IT TO YOU FOR $150,000, THEN YOU MIGHT POSSIBLY WANT TO BUY IT. HERE ARE THE QUESTIONS YOU NEED TO ASK YOURSELF:

SHOULD YOU BUY THIS HOUSE?
1. DOES IT MEET MY NEEDS AND WANTS?
2. IS IT A GREAT DEAL?
3. WILL IT APPRECIATE IN THE FUTURE?
4. WILL I BE HAPPY FOR 5 YEARS?

ILYCE: DOES THIS HOUSE MEET MY NEEDS AND WANTS? IS IT A GREAT DEAL? WILL IT APPRECIATE IN THE FUTURE? AND, CAN I BE HAPPY LIVING HERE FOR FIVE YEARS OR UNTIL I’M FINANCIALLY READY TO MOVE ONTO SOMETHING BIGGER AND BETTER.

ILYCE: IF YOU’RE NOT ANSWERING YES TO AT LEAST TWO OF THESE QUESTIONS, I’D TAKE A PASS. FOR MY MONEY SAVING TIP THIS WEEK, I THOUGHT I’D GIVE SELLERS A FEW WAYS TO BOOST THE NET AMOUNT THEY POCKET FROM THE SALE OF THEIR HOME.

PROFIT FROM YOUR HOUSE SALE
1. CONSIDER USING A DISCOUNT BROKER TO SAVE 3 TO 5 PERCENT ON YOUR SALES PRICE
2. UPDATE KITCHEN, BATHROOMS.
3. WHITEWASH YOUR WALLS, CLEAN CARPETS
4. GIVE YOUR GARDEN A MAKEOVER

ILYCE: FIRST, CONSIDER USING A DISCOUNT BROKER. YOU COULD SAVE 3 TO 5 PERCENT ON YOUR SALES PRICE. IF THE HOUSE DOESN’T SELL, YOU CAN ALWAYS HIRE A FULL-SERVICE BROKER. NEXT, FOCUS YOUR UPDATING ON THE KITCHEN AND BATHROOMS. A COAT OF WHITE OR OFF-WHITE PAINT CAN MAKE YOUR WHOLE HOUSE SEEM BRIGHTER AND BIGGER. CLEAN YOUR CARPETS AND FLOORS. FINALLY, GIVE YOUR GARDEN A PROFESSIONAL MAKEOVER.

ILYCE: TUNE IN NEXT WEEK FOR ANOTHER ONE OF MY MONEY-SAVING TIPS, OR LOG ONTO WGNTV.COM AND LINK TO GLINK.