Business Planning and Real Estate - A Comfortable Balance
As the last year comes to an end and I begin planning for the current year – yes, it is here, already, I find it is a bit more difficult than last year. Business planning, as it goes, is not a favorite activity of many, and I am no exception. It interferes with my creative process. Once you have it in black and white, written down and committed to, there still needs to be some room left for adjustment to income and expenses. I can’t be too creative.
2008 has my team starting at a record pace. I have been inundated with calls about everything from foreclosures to short sales, listing homes, and buyers who are starting their search to those ready to write an offer. This sudden burst of activity has me reconsidering my business plan. How does one plan for both busy and slow times at the same time? I really don’t expect an answer to come flying through the comments of my blog, but the process of writing my business plan for this year found me comparing the process to buying a home. See how that creative process can not be left alone.
Numbers are a huge part of any business plan. It’s the same with my clients. I have some clients who are uncertain of the amount for which they qualify for when we first speak. Others are certain of the amount which they are comfortable paying each month and they want to know how much house that dollar amount will buy them. The truth is, what you qualify for may not be what you are comfortable with. Numbers, like the cost of taxes, insurance, principal, interest, and HOA dues, add up to a monthly cost which should leave some cushion in the finances. In matters concerning finances, it is wise to leave some room for unexpected expenditures.
While I finish my business plan, be sure your homebuying plan takes all your costs into consideration, both monthly and upfront costs. Make sure you have a partner in the homebuying process who is committed to your plan.