CFP Board Ambassador offers tips for home buyers struggling in a tight market
Livonia, Mich., July 30, 2017 – Housing shortages across the country can make home buying ferociously difficult. That frustration is especially acute for first-time buyers, said CFP Board Ambassador Robert Schmansky, CFP®.
“Home purchase mania is back in fashion and it’s wise for potential buyers to proceed with caution rather than being taken over by a fear of missing out,” said Schmansky. “Property flipping and increased demand is keeping inventory low and pushing prices high. While these sorts of increases can last for years, they don’t often last forever.”
Home prices have increased by 40 percent in the last four years, according to the National Association of Realtors. Meanwhile, incomes are up only 10 percent over the same period. Americans may feel more confident in their economic future – but as they head out to buy a house, they are coming up short when it comes to taking one of the first steps toward the American dream, Schmansky said.
In the latest contribution to LetsMakeaPlan.org, CFP Board offers four tips to help home buyers keep a cool head in a hot market.
Run the numbers: Understand how much home you can afford to buy and whether home ownership might preclude you from addressing other important financial issues in your life, like paying off debt. A CERTIFIED FINANCIAL PLANNER™ professional can help you understand how your housing choices can support your overall financial plan.
Start the mortgage process/correct credit report mistakes: If you have not done so in a while, go to AnnualCreditReport.com and request your free copy. It’s important to correct any errors on the report before you start the mortgage process.
Conduct research: Even if you are working with a realtor, check out new listings and spread the word throughout your network. You never know who might be about to list a home.
Keep your emotions in check: Even with limited supply, there are a lot of houses out there. Be careful not to blow through your budget or put yourself in a position where you own two homes.
To buy the house of your dreams in this environment, you may need to save more, look longer and be alert to unexpected opportunities. A CFP® professional can help you prepare.
ABOUT CFP BOARD The mission of Certified Financial Planner Board of Standards, Inc. is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for competent and ethical personal financial planning. The Board of Directors, in furthering CFP Board’s mission, acts on behalf of the public, CFP® professionals and other stakeholders. CFP Board owns the certification marks CFP®, Certified Financial Planner™, CFP® (with plaque design) and CFP® (with flame design) in the U.S., which it awards to individuals who successfully complete CFP Board’s initial and ongoing certification requirements. CFP Board currently authorizes more than 77,000 individuals to use these marks in the U.S.
CONTACT: Jessica Lewis, Communications Specialist P: 202-379-2256 E:jlewis@cfpboard.org Twitter: @cfpboardmedia
ABOUT ROBERT SCHMANSKY, CFP®
Robert Schmansky is the founder of Clear Financial Advisors of Metro-Detroit. Rob has over a decade of experience helping individuals and families meet their financial goals and overcome money concerns. He is frequently quoted in the media on issues regarding personal financial planning, and has been a contributing writer for U.S. News & World Report, Forbes, Investopedia, and Yahoo!Finance, and an investment expert for FiLife, a former Dow Jones/IAC joint Internet venture. He has been an adjunct instructor of economics and the required courses for candidates to sit for the CFP® exam. Rob was named a Top 100 Most Influential Advisor by Investopedia, 40 Under 40 financial planning professional by InvestmentNews, and he is the 2013 PlanPlus Global Financial Planning Awards North American finalist.
CONTACT: Robert Schmansky, CFP® P: 248-677-1762 E: rob@clearfinancial.net W: www.clear.financial Twitter: @moneyclarity
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