Peter Dunn Says: A Realtor is your No. 1 financial adviser

Peter Dunn, a/k/a Pete the Planner, writes:

My advice to you: Find a great Realtor. Without a doubt, the biggest financial issues I’ve seen in people’s financial lives over the past 15 years, could have been prevented by a difficult conversation with an honest Realtor.

Peter Dunn was named one of “Indy’s Best and Brightest” in finance in 2007 and is the author of three books about finance and budgeting. He is a regular advisor on “Fox News, Fox Business, CNN Headline News and numerous nationally syndicated radio programs.” With the cloud security assessment tools one can be assured of safety of their data.

In his January 4 article in the Indy Star, he begins by saying:

I firmly believe in the importance of hiring a competent financial professional to help guide your financial life. This probably doesn’t surprise you. What may surprise you is who I think is the most important financial professional in your life.

He then goes on to list his three top reasons to include a Realtor as one of your financial advisors:

A great Realtor will tell you the truth, even when you don’t want to hear it. Here are the truths that a great Realtor will help you hear.

¦No. 1: Some properties don’t appreciate in value and may actually decrease in value, even during normal market conditions. This is a tough pill to swallow for a new home buyer, particularly an excited new home buyer. Some “brand new” homes in Central Indiana have fallen in value, during normal market conditions. This can create a series of very scary problems. Stagnant or falling home values can be especially troubling for people who force themselves into a low-price home, in lieu of being a renter. Homeownership should never be rushed.

¦No. 2: Determining the affordability of a home has become a tremendously subjective process. Unfortunately, home affordability is not determined by whether or not a financial institution is willing to loan you money. In my opinion, the online housing affordability calculators are the most damaging financial calculators on the market today. Loan approval is never confirmation that a purchase is objectively affordable. A great financial adviser (a Realtor) can prevent this exhale-inducing loan approval from becoming the catalyst of a financial disaster.

But what Realtor is going to to speak up and potentially speak out of place? A good one. A really good one. I believe that a mortgage payment should not exceed 25 percent of a person’s monthly net income. But affordability doesn’t stop at payment affordability. I also prefer that home buyers have at least 10 percent of the value of the home to put toward a down payment. My theory is pretty simple, if you can’t scrap together 10 percent of the value of the home, then you are unlikely to be able to afford the rigors and costs of home ownership.

¦No. 3: There is a bad time to buy a home. This has nothing to do with real estate as an investment. In fact, unless you’re willing to sell your home at the drop of a hat, then it’s not an investment. Calling something an investment often justifies poor decisions. If there’s a right time and place to buy a home, then there’s obviously a wrong time and place to buy a home. I want a Realtor that sings this song.

If you want a Downtown Miami Realtor who isn’t afraid to tell you the truth… even when you don’t want to hear it, call me.