21 Things You Should Never Buy New

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I found this article on Yahoo and thought it was very interesting.

usnews Wise Bread, On Monday June 28, 2010, 10:24 am EDT

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    •  If you’re looking to get the most value for your dollar, it would do your wallet good to check out secondhand options. Many used goods still have plenty of life left in them even years after the original purchase, and they’re usually resold at a fraction of the retail price, to boot. Here’s a list of 21 things that make for a better deal when you buy them used.

1. DVDs and CDs: Used DVDs and CDs will play like new if they were well taken care of. Even if you wind up with a scratched disc and you don’t want to bother with a return, there are ways to remove the scratches and make the DVD or CD playable again.

2. Books: You can buy used books at significant discounts from online sellers and brick-and-mortar used book stores. The condition of the books may vary, but they usually range from good to like-new. And of course, check out your local library for free reading material.

3. Video Games: Kids get tired of video games rather quickly. You can easily find used video games from online sellers at sites like Amazon and eBay a few months after the release date. Most video game store outlets will feature a used game shelf, as well. And if you’re not the patient type, you can rent or borrow from a friend first to see if it’s worth the purchase.

4. Special Occasion and Holiday Clothing: Sometimes you’ll need to buy formal clothing for special occasions, such as weddings or prom. Most people will take good care of formal clothing but will only wear it once or twice. Their closet castouts are your savings: Thrift stores, yard sales, online sellers and even some dress shops offer fantastic buys on used formalwear.

5. Jewelry: Depreciation hits hard when you try to sell used jewelry, but as a buyer you can take advantage of the markdown to save a bundle. This is especially true for diamonds, which has ridiculously low resale value. Check out estate sales and reputable pawn shops to find great deals on unique pieces. Even if you decide to resell the jewelry later, the depreciation won’t hurt as much.

6. Ikea Furniture: Why bother assembling your own when you can pick it up for free (or nearly free) on Craigslist and Freecycle? Summer is the best time to hunt for Ikea furniture–that’s when college students are changing apartments and tossing out their goodies.

7. Games and Toys: How long do games and toys remain your child’s favorite before they’re left forgotten under the bed or in the closet? You can find used children’s toys in great condition at moving sales or on Craigslist, or you can ask your neighbors, friends, and family to trade used toys. Just make sure to give them a good wash before letting junior play.

8. Maternity and Baby Clothes: Compared to everyday outfits that you can wear any time, maternity clothes don’t get much wear outside the few months of pregnancy when they fit. The same goes for baby clothes that are quickly outgrown. You’ll save a small fortune by purchasing gently used maternity clothes and baby clothes at yard sales and thrift stores. Like children’s games and toys, friends and family may have baby or maternity clothing that they’ll be happy to let you take off their hands.

[See 20 Things You Should Never Buy Used.]

9. Musical Instruments: Purchasing new musical instruments for a beginner musician is rarely a good idea. (Are you ready to pay $60 an hour for piano lessons?) For your little dear who wants to learn to play an instrument, you should see how long his or her interest lasts by acquiring a rented or used instrument to practice with first. Unless you’re a professional musician or your junior prodigy is seriously committed to music, a brand new instrument may not be the best investment.

10. Pets: If you buy a puppy (or kitty) from a professional breeder or a pet store outlet, it can set you back anywhere from a few hundred dollars to several thousand dollars. On top of this, you’ll need to anticipate additional fees and vet bills, too. Instead, adopt a pre-owned pet from your local animal shelter and get a new family member, fees, and vaccines at a substantially lower cost.

11. Home Accent: Pieces Home decorating pieces and artwork are rarely handled on a day-to-day basis, so they’re generally still in good condition even after being resold multiple times. If you like the worn-out look of some decor pieces, you can be sure you didn’t pay extra for something that comes naturally with time. And don’t forget, for most of us, discovering a true gem at a garage sale is 90% of the fun!

12. Craft Supplies: If you’re into crafting, you probably have a variety of different supplies left over from prior projects. If you require some additional supplies for your upcoming project, then you can join a craft swap where you’ll find other crafty people to trade supplies with. If you have leftovers, be sure to donate them to your local schools.

13. Houses: You’re typically able to get better and more features for your dollar when you purchase an older home rather than building new. Older houses were often constructed on bigger corner lots, and you also get architectural variety in your neighborhood if the houses were built or remodeled in different eras.

14. Office Furniture: Good office furniture is built to withstand heavy use and handling. Really solid pieces will last a lifetime, long after they’re resold the first or second time. A great used desk or file cabinet will work as well as (or better than) a new one, but for a fraction of the cost. With the recession shutting down so many businesses, you can easily find lots of great office furniture deals.

15. Cars: You’ve probably heard this before: Cars depreciate the second you drive them off of the dealership’s lot. In buying a used car, you save money on both the initial cost and the insurance. It also helps to know a trusty mechanic who can check it over first. This way, you’ll be aware of any potential problems before you make the purchase.

[See 20 Tips for Cleaning on the Cheap.]

16. Hand Tools: Simple tools with few moving parts, like hammers, hoes and wrenches, will keep for decades so long as they are well-made to begin with and are well-maintained. These are fairly easy to find at neighborhood yard or garage sales. If you don’t need to use hand tools very often, an even better deal is to rent a set of tools or borrow them from a friend.

17. Sports Equipment: Most people buy sports equipment planning to use it until it drops, but this rarely happens. So when sports equipment ends up on the resale market, they tend to still be in excellent condition. Look into buying used sporting gear through Craigslist and at yard sales or sports equipment stores.

18. Consumer Electronics: I know most folks like shiny new toys, but refurbished electronic goods are a much sweeter deal. Consumer electronics are returned to the manufacturer for different reasons, but generally, they’ll be inspected for damaged parts, fixed, tested, then resold at a lower price. Just make sure you get a good warranty along with your purchase.

19. Gardening Supplies: This is an easy way for you to save money, and all you need to do is be observant. Take a look outdoors and you’ll likely find such gardening supplies as mulch, wood, and even stones for free or vastly reduced prices. Used garden equipment and tools are also common goods at yard sales.

20. Timeshares: Buying timeshares isn’t for everyone, but if you decide that it suits your lifestyle, purchasing the property as a resale would be a better deal than buying it brand new: on average, you’ll save 67 percent on the price for a comparable new timeshare. If you’re new to timeshare ownership, give it a test run first by renting short term.

21. Recreational Items: It’s fairly easy to find high ticket recreational items like campers, boats, and jet skis being resold. Oftentimes, they’re barely used at all. As long as they’re in safe, working condition, they’ll make for a better value when purchased used than new.

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Coldwell Banker CEO on CNBC this morning

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Jim Gillespie states the tax credit worked.   Open sales have dropped since the tax credit has expired but we are in better shape than last year.  Numbers released yesterday that the annualized home sales are up 19.2% from last year. 

Jim states that “any talk of a double dip in housing is just  a prediction” , prices have leveled off and people who come in to the market today are not  worried about their home losing value 50%.  Jim states it’s too early to tell what the market will be doing and the market is back to where it needs to be.  Remembering that real estate is local!  

Hoping that the house will follow through on the extention so that people who were under contract will benefit from the tax credit.  There are 180,000 transactions that are in jeopardy of not closing on time.

Housing marketing is getting back to “normal”

You can check out the entire video here at  http://www.cnbc.com/id/15840232/?video=1528574762&play=1

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Is a housing shortage coming?

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Some experts are saying that the next big real estate problem could be a shortage of homes.

Only 672,000 new homes were started in April. That’s less than half the number needed to meet the country’s average population growth.

In the past, an average of more than 1.3 million households have been built each year, creating demand for 1.5 million new homes. In 2009, only 398,000 new households were formed, according to the Census Bureau.

“The decline in household formation is artificial,” says James Gaines, a real estate economist with Texas A&M. “The young are moving in with their parents. There’s even doubling up among working-class people. There’s a pent-up demand coming if and when the economy recovers.”

Some economists believe this analysis fails to take into account the changing economy or the large inventory of vacant properties. But Gaines and others say these factors are unlikely to significantly drive down demand.

Source: CNNMoney.com, Les Christie (06/15/2010)

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Does it make sense to refinance?

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This is a great article I found on Kiplinger.com .  A lot of people ask me this question but I’m a Realtor not a mortgage lender so I hope this is helpful.

This could be a tough call if you have a fixed rate only slightly higher than current rates or an ARM that adjusted downward in the past year. Just make sure that you’ll be able to recoup the cost of refinancing before you sell your home. Divide the amount of the estimated closing costs (usually 3% to 6% of the mortgage amount; look at your loan papers from last time) by the amount of the monthly savings you anticipate. That will tell you the number of months until you break even.

A second mortgage or a home-equity line of credit complicates things. If you simply want to refinance the first mortgage, your total housing debt shouldn’t exceed 80% of your home’s market value, or else the holders of the second lien may refuse to resubordinate (agree to stand behind the first-mortgage holder for repayment if you default).

If the holder of the second lien refuses to play ball, you could try consolidating all your housing debt into a single mortgage — so that you can use some of the loan proceeds to pay off your second lien. To get such a conforming cash-out refi, you must have at least 20% equity, and for a conforming jumbo, you need 25% to 30% equity, or 35% to 40% equity if the loan is more than $625,500. You’ll also pay a higher interest rate, and paying the higher rate may not make sense. Another strategy is to take out a new home-equity line of credit from the lender of the new first mortgage and use it to pay off the old line of credit. Consider a line of credit with an option to lock in the rate.

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iphone apps

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I’ve had an iphone for about a year now and lately I have been really learning a lot about apps for business.  Has anyone been utilizing Dragon Dictation?  It’s an app where you talk and it converts to text, then you can email, text, or copy to clipboard.  The best part, it’s free!   I love it!  I have been playing games and using the iphone for fun but there is a lot of apps that are really useful for business.  If anyone has any others they would like to share that are free I would love to hear about it.  Thanks!

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Social Media is a must!

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I was in a class today about using Linkedin.  I have put off social media because it’s so time consuming but it’s not going away!  Instead of getting behind the market I have decided to embrace it and try to stay ahead of the game.   So far I am on Facebook and Linkedin.  I have not joined twitter yet but I have a feeling that is next.  Does anyone have any great advice for someone who is not new and definitely not advanced on Social Media?

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Why would you wait?

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I had a client tell me that they were going to wait for prices to go down  now that the tax credit has expired!  I could not even believe that.  In Raleigh, NC where prices are awesome and interest rates are so low how could you wait??  Just so everyone knows, this is an awesome time to buy, a Realtor will do research and tell you what the house should be priced at and rates are not going to get any lower!!   The savings now on the interest rates versus waiting on a price  is a mistake!

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Mortgage rates at new all time lows!!

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The European debt crisis creates good news for the US economy!   The current 30 year fixed rate is 4.87 according to Bankrate.com.  That’s the lowest rate is 30 years.  You couldn’t pick a better time to buy or refinance a home.  Economists are saying people looking to refinance or buy a home should act quick, these rates are only going to stay around for a month or two.

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To join a BNI group or not, that is the question???

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I’m looking for some pros and cons of networking in a BNI group.   Anyone have any suggestions?  I would greatly appreciate it.  Or better yet, how many Realtors get business from their BNI group?

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“The Triangle is among the healthiest housing markets in the country”

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Triangle business journal says Builders are coming to the triangle area to buy land for new homes.  It’s no surprise to a lot that our area has not been hit like some other areas of the country.   Builders will be focusing on building homes and townhomes priced under $300,000.

Competition among builders has increased and it’s always good to get great news to pass a long for the Triangle!

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