Selling By Owner

April 25, 2013 in Personal Finance with 0 Comments

Since my last post about renting vs. selling we’ve sold our home. Only two weeks after we put the sign in the yard we accepted an offer, without using a realtor. Here is why and how we did it…

sold

 

Why sell by owner instead of using a realtor?
 Realtors are paid a percentage of the sale price of the home. Thus selling by owner can save you up to 7% off the sale price. In our case it will save us 3% because our buyer has an agent. Normally the seller pays both realtor fees. Three percent might not sound like much, but for us it’s about $5,000 saved.

What are the keys to selling by owner?
Selling a home is about getting to as many potential buyers as possible. Realtors have an advantage because  they know buyers, buyers agents, have a good network, and can list on the Multiple List Service. Selling by owner is not for everyone and most realtors provide a good and needed service. In our case we felt like we had a good network and the ability to reach a broad audience.

Here is how we reached out to potential buyers:

  •  We had lived in the same area for 11 years. That meant we had thousands of Facebook friends in the area and the ability to list on the alumni classifieds of our nearby alma mater.
  • My wife is a photographer and we used our blog to send information out about our home.
  • I am the Home Owner Association president and have to approve every home sale in the neighborhood. So I knew about some companies and other entities interested in homes in our neighborhood.

We used all of these channels, along with Zillow, to get the word out about our house.

Another key to success is defining how long you plan to try and sell on your own. In our case we set a deadline of three weeks. If we didn’t have any hot leads in three weeks we were turning it over to an agent.

In the first week we had multiple showings. Ultimately our buyer was someone who wanted to use our home as a rental. I knew about this company because of my work as HOA president. I called them up and said we had a great house, priced to sell. They came and looked at it and made a good offer. And the rest they say…is history.

A few things we learned along the way:

1. Take good photos. Here is the site we used to advertise. Now that we are on the buying side, we are amazed at the terrible photos people take of their homes.
2. Make sure the price is right. Your house is not made of gold nails, sorry, so price accordingly. An exact model of our same home was on the market down the street, so we knew our competition and price range.
3. Follow up on every lead multiple times. You are now a “salesman.” That means getting on the phone and calling people. Yes, it can be terrifying. It will also sell your home.
4. If you don’t feel comfortable selling yourself, then don’t. Realtors provide a good service.

I enjoyed the process of learning to sell a home. We made some mistakes along the way. We are thankful the right buyer came at the right time.

Now to buying a home…

To Rent Or Sell Our House? That Is The Question.

March 5, 2013 in Personal Finance with 0 Comments

To sell or rent our house? I’ve been debating this question for a month. I recently accepted a new job and will be moving. Amidst the many decisions we have to make during this transition, this one seems the largest. Here are the questions I asked and how I reached my final decision.

rentVsell

Will rental income cover my expenses?
In our case the answer is yes, barely. Monthly rental income would cover the mortgage, taxes, insurance, and we would have a little leftover for future repairs/expenses. According to this Forbes calculator it is economically viable for us to rent. But, if anything drastic happened the margins are razor-thin. Wash

Will we be able to sell our home for more than we bought it?
Probably not. Even though we have put some upgrades into our house (new roof, new deck), we will likely have to sell for less than we purchased the home. Let’s hope it won’t be more than a few thousand dollars. Pro Rent

Will the house go up in value if  we rent it for few years?
Without a crystal ball my best guess is yes, home values will rise in the next few years. According to recent housing news we are moving from a buyers market to a sellers market. Pro Rent.

Will I be able to afford to buy a home where I moving?
I have not been pre-approved for a second mortgage. But from what I gather we would be able to buy a home, just not one I would want to live in very long. Pro Sell

Do I want to be a landlord?
Long-term I would like to own real estate as a part of a diversified investment portfolio. However, I’ve talked to many landlords and they HIGHLY recommended not being a landlord from long-distance. There will be  late night phone calls I can’t do anything about and it’s more difficult to keep watch on the property. Pro Sell

Conclusion:
Our first choice is to sell, unless we cannot get a fair price, then we will rent. 

Now  on to the next list of questions to answer: do we list it with a real estate agent or sell ourselves first? How do we choose a price point? When is the best time to put it on the market? 

Side-note: Our home is 3-bedrooms, 2-baths, over 1,5000 sq. feet, has a full, unfinished basement, and overlooks a sod farm. It’s a little over 5-years old and located on the outskirts of Xenia, OH. We were the first owners. If your interested in learning more contact me at drewrflamm@gmail.com. 

Weekly Financial Platter (no. 24)

March 2, 2013 in Financial Platter with 0 Comments

Every week I publish the Weekly Financial Platter with all the best from the past week about giving, raising, and saving money.

Understanding The Sequester: If you are like me, Sequester is a word you’ve learned in the last month. The Washington Posts provides a few infographs that helped me understand the Sequester…kind of.

Three Generosities Of The Local Church: Jared Wilson from The Gospel Coalition surmises there are three levels of generosity in the local church. There are probably many more. I like the idea of churches assessing how they are doing in being generous in these three areas.

Is Buying Better Than Renting?: According to this article it is an obvious YES in most cases. We are soon selling our house and contemplating whether to rent or buy.

Francis Chan- Following God’s Voice: If you need a little gospel motivation to be generous, listen to this 7 minute clip. Francis tell about 70 generosity stories in 7 minutes.

Avoid This Charitable Giving Mistakes In New Tax Reality: Fortunately the charitable giving deduction has made it through much of the budget changes in Washington. But a new reality exists and these are 4 good mistakes NOT to make.

Be sure to sign up for the Monthly “Do Good” Giveaway. This month I am supporting the REACH Initiative and giving away two bottles of multivitamins  Buy purchasing these bottles I’ll provide 10 kids the life-saving nutrients they need for a year.

Monthly “Do-Good” Giveaway

February 28, 2013 in Giving with 1 Comment

Every month in 2013 I’ll be doing a Monthly “Do-Good” Giveaway. Giveaways will be from charities or social good companies. It’s a win-win-win endeavor. I get to support people and causes I believe in, you get to win something cool, and the charities and social enterprises get exposure to new friends.

REACH VitaminsREACH Vitamins

February’s giveaway is from REACH Vitamans. My good friend Tim Sandlund and I talked about this idea over tacos two years ago. He has taken that dream and turned it into reality. Every purchase of REACH Vitamins provides 5 children with life-saving nutrients for a year. If your like me you take a multi-vitamin everyday, why not have it do good for children around the world? You can find REACH in some pharmacies and online.

You can learn more about REACH through these avenues:
Twitter
Facebook
or contact REACH: hello@thereachinitiative.com

I’ll be giving away two bottles of multi-vitamins from the REACH initiative. You can enter the drawing by submitting your email or using Facebook. Additional entries can be gained  by  tweeting out giveaway  info. or liking the REACH Initiative on Facebook. Giveaway will end Monday at 10 AM.

I do not keep email address or automatically subscribe giveaway participants to my blog. If you want to subscribe you can do that here. 

 

Planning To Die Broke

February 25, 2013 in Giving, Personal Finance with 0 Comments

Planning to die broke might be against all conventional wisdom but I think it follows Biblical wisdom. Matthew 6: 19-21, “Do not lay up for yourselves treasures on earth, where moth and rust destroy and where thieves break in and steal, but lay up for yourselves treasures in heaven, where neither moth nor rust destroys and where thieves do not break in and steal. For where your treasure is, there your heart will be also.”

Financially speaking, here are three things to do to ensure you die well… and die broke:

1. Take care of all your debts
Psalm 37:21, “The wicked borrows and does not pay back, but the righteous is gracious and gives.”  Be prepared to take care of all your debts. Have sufficient insurance or assets to cover outstanding loans. Owe nothing to anyone. Doing this alone will be a blessing to your heirs.

2. Have a clear will
Even famous people fail to put together Estate Plans. Doing so can create rifts in families and even end in ugly court battles. Plan, plan, and plan. Plan your funeral. Plan how to distribute any assets you will have left. Make your intentions clear. You can find many resources online for creating a will, or visit a local attorney. It doesn’t take that much work, and it will save your family many headaches.

3. Give it away now, not when you die
Why wait to give to your kids, your church, or your favorite charities till you die? The temptation is to hang onto your money as a security blanket. Trust God and start giving. If you have responsible adult children, and you have the resources to do so, start giving them their inheritance now. They likely need it more now than they will later.

Again, if you have the resources, start giving generously to your church and/or favorite charities. Have the blessing of seeing your gifts at work now. This doesn’t mean you can’t give out of your estate, but why wait? Don’t store up treasures on earth. Store up treasures in heaven by blessing people NOW.

An added benefit of giving in this manner is your children will not view you as a dollar sign. I’ve heard older folks say they feel their kids can’t wait for them die because that’s when the inheritance will come. Don’t let them wonder what might be, start giving it away now!

Story Time

This whole idea of dying broke was recently exemplified to me by my wife’s Grandpa Hueni. Grandpa passed away last month. He was a very successful business man, started 2 churches, and raised 8 kids. When it came to money, he lived frugally and gave generously. All his children and grandchildren will tell you about his generosity toward them. He believed anything he had was because of God’s goodness, so he wanted to give it all away before he left this earth. By all estimations, last year he gave away more to churches and missions than he took in through investment and pension income.

He planned meticulously for his passing. He ensured his affairs were settled. He gave all of himself and his possessions to God and others. He has a long legacy because he was humble and generous. Like Grandpa Hueni, I want to give it all away.

 

Weekly Financial Platter (no. 23)

February 23, 2013 in Financial Platter with 0 Comments

America’s Youngest Female Billionaire: Bloomberg recently featured Lynsi Torres, the 30-year old Owner and President of In-N-Out Burger. Amazing story of tragedy and instant responsibility.

How To Invest In Index Funds?: Most of my investing outside of my 403(b)/401(k) is done in Index Funds. It’s cheap, it’s easy, and it ensure you are diversified.

5 Reasons A 30-year Mortgage Beats A 15: With our impending move I am reading a lot about real estate these days. I have a 15-year loan and now wonder if sticking with a 30 would have been a better option. Read on to see why.

3 Takeaways On The Financial Health )f Mega Churches: The bigger the church, the more financially healthy it appears to be. Supposedly.

How To Be Great At Giving: These are seven great ways to become a great giver. I love it!!

Interesting News In Pop Culture
For the 4th week in a row, the #1 song on the Billboard Top 100  is “Thrift Shop” by Macklemore & Ryan Lewis featuring Wanz. It’s also currently the #1 download on Amazon. The song is about… frugality and buying clothes from Goodwill?

It’s not the cleanest song BUT this might be the first time a rap song is about frugality and that’s exciting.

 

How Much Should Christians Tip?

February 5, 2013 in Giving, Personal Finance with 7 Comments

By now most have heard about the pastor who scratched out the automatic 18% gratuity on her bill and wrote “I give God 10%, why do you get 18%.” I’ve often heard Christians tip terribly, though I have no empirical evidence to confirm that claim. However, the terrible tipping of this “pastor” begs the question, how much should a Christian tip?

Applebee-s-Fires-Waitress-Posting-Pastor-s-Tip-Complaint

Here is my simple answer: tip enough to ensure your testimony and the gospel are advanced. This likely means you will tip at least 15%. Often it should mean you tip more. Many probably wonder, like me, what happened to the 10% tipping rule? I don’t know, but it’s gone. Expectations are now different and as Christians we should be leading the pack in generosity.

What are some other things you can do to have a positive testimony with your waiter/waitress?

1. Speak to them by name.
2. Thank them.
3. If food service is slow or food is poor. Be nice. Likely it’s not there fault.
4. If they do a good job, tell their manager.

If you are like me and didn’t grow up doing things and going places that involved much tipping, here is a guide.

Psalm 112: 5: It is well with the man who deals generously and lends; who conducts his affairs with justice.

What is your tipping rule? How else can we deal generously with those in serving us in there jobs?

Weekly Financial Platter (no. 22)

February 2, 2013 in Financial Platter with 0 Comments

Every week I publish the Weekly Financial Platter with all the best from the past week about giving, raising, and saving money.

Sweat Equity: Jeff Shinabarger from Plywood People talks about giving sweat, not just money. By the way, I visited Plywood last week. Great ideas on generosity because launched all the time.

Top 4 Interesting Adoption Stats: Christianity Today picks their top 5 most interesting stats and then links to the 2012 Annual Report on Intercountry Adoption.

Should Married Couples Have Joint Or Separate Bank Accounts?: I wholeheartedly agree with the Christian PF article that couples should have joint accounts. The reasons why are spot on and worth the read for those making this decision.

9 Juicy Tax Deductions Often Overlooked: As we get close to tax prep time, be sure you are ready to make the most of your deductions.

All Jobs Are Temporary: The reality is that most of use will not just have one type of career or employer. Many of the jobs we have may not even exist in 20 years. Are you ready?

 

3 Steps To Increased Church Giving

January 31, 2013 in Fundraising with 2 Comments

Recently I was talking to a pastor friend about giving. His church went from $5,000 in the bank a year and half ago to more than $150,000 in the bank now. In that year and a half their church has also hired more staff and planted a church. Needless to say, God has blessed. As we talked we boiled it down to 3 practical steps, beyond prayer and trusting God, that the leadership took to increase giving.

online giving

1. Pass the Plate
Many churches do not pass an offering plate. I understand the desire to not tempt attendees to “give under compulsion.” Still the fact remains, passing the plate is effective. It is a weekly reminder of the privilege and responsibility to give. My pastor friend said this was the first step in regularly inviting his parishioners to give (not tithe).

2. Set-up Online Giving
I’ve heard two reasons for NOT having an online giving option. The first is because giving is an act of worship and should be consciously done each Sunday. However, many folks, like me, NEVER use checks or cash. So we forget and then miss out on the opportunity to give. I do not believe God is judging our giving by whether  it is done by cash, check, or a paid off credit card. He simply wants us to experience joy in giving.

The second argument is that there are fees associated with online gifts. While true, every sector of charity has seen double digit growth in online gifts in the past 3 years. I think the return on investment for a few fees is well worth it.

3. Start A Stewardship Program
Do you let the givers in your congregation know you are praising God for their gifts? Do you let them know the awesome things the church is doing because of their giving? Most churches do not have a stewardship program, and they should. My pastor friend thanks each new donor monthly and sends a quarterly report to all donors letting them know how gifts were used. He also shares a story each week before the offering about how God is using the church to make an impact.

Your program doesn’t need to be the same, but you should have one written down. If you need help thinking this through, please contact me and we will talk.

 If you are pastor consider these three steps. If you are a church member, encourage your pastor to think about giving and stewardship as a spiritual matter they should pay close attention to.

Does your church do all three of these things? Why or why not?

Weekly Financial Platter (no. 21)

January 27, 2013 in Financial Platter with 0 Comments

Every week I publish the Weekly Financial Platter with all the best from the past week about giving, raising, and saving money.

Giving Will Rise Barely in 2013: Giving is expected to just be slightly up in 2013. However, religious giving has been down and that trend looks to continue.

Paying With Credit Card or Cash- A Different Take: Many would argue that using credit cards to pay for everyday purchases is wiser than cash. I would probably fall into that camp. However, there are some downfalls as outlined in this article.

6 Tips for Upcoming Tax Season: Here is some solid advice to follow when filing to your taxes. I have written before about the debate between tax software and using an accountant. Start thinking about this stuff now because April 15th will be here soon!

Free Pizza Giveaway from Papa Johns: Here is all the information you need to participate in the Papa John’s free pizza giveaway. You must sign up before the coin toss. Both my wife and I enrolled to ensure a free pizza. I will warn you, expect LOTS of emails from Papa John’s between now and the Super Bowl trying to entice you to a hot, steamy, freshly made pie of deliciousness.

How Much Money Am I Supposed To Give Away?:  Tim Challies speaks to the question pastors often here about giving. How much am I suppose to give? Tim’s short answer is, enough that it matters. I recently talked about what a tithe was and if it’s important today.

Also, just as a reminder. You have less than a day to enter the give away on my blog for a free watch. This is my way of monthly supporting a charity or social enterprise I believe in.

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