How we helped Patricia find a home by being open and honest

 
"He found what I was looking for! He did an awesome job. When we were looking at houses, he was always honest about what repairs the home needed, because we weren’t prepared to make all of the repairs. I really appreciated his honesty!"

Patricia Smith, homeowner

What's the Best Strategy for Dealing with Multiple Offers?

Buying a Louisville Home? Search all Homes for Sale

Selling a Louisville Home? Check out our FREE Home Value Report

Hey everybody, what I want to talk about today is dealing with multiple offers. We are seeing multiple offers at a tremendous rate in Louisville right now.  Our market is hot, our inventory is low, and it's almost like they are printing money with such low interest rates out there.

One thing you need to understand about the Louisville market is that competition for good homes is fierce right now. In this economy, you may get asking price or even higher, and you're likely to receive multiple offers.

When it comes to receiving multiple offers, the biggest and best offer is not always the biggest and best, and cash is not always king. These offers need to be broken down into the particulars, like time, financing, and if cash really is cash, and not equity or a $401k.

You need an expert to help navigate through all of the difficulties that arise when it comes to accepting the right offer. If you have any questions, we would love to answer them. Give us a call or send us an email, we'll talk to you soon!

Is Now the Best Time to Buy a Home in Louisville?

I’ll help you buy or sell your home in Louisville, KY. If you’re looking to buy a home, I’ll help you pick the right home. If you’re thinking about selling, call me and I’ll tell you what price your home is most likely to sell for. Click here to search all available homes on my website.

Hey folks, today I want to talk to you about one of the questions I am asked the most: "Is now the best time to buy a home?"

When it comes time to decide whether you should buy a home or not, it depends on your personal situation. But I can tell you this: the experts say yes. We know that interest rates will continue to rise. Just this last week, Federal Reserve Chairwoman Janet Yellen said in a recent address that the rate hike will come gradually, and interest rates will start to creep up come September. 

Read the article here! 

When you do decide to purchase a home, you are going to have to pay a mortgage no matter what. With prices and interest rates continuing to rise, wouldn't it make more sense to pay the mortgage at a lower interest rate, like one that you could lock in now?

I have access to a database of real estate information that’s not widely available to the public. Over at Keeping Current Matters, they have just recently released their Spring Report, and it looks like the experts agree now is the time to make your move. Here’s why:

• Prices will continue to rise.
• Mortgage interest rates are projected to increase.
• Either way you are paying a mortgage.
• It’s time to move on with your life.

When buying a home, you need to concern yourself with the long-term cost of a home, not just the price tag of a home. This means you need to look deeper than the purchase price if you want to make a profitable decision.

If interest rates rise even slightly, as they are projected to by the end of the year, your purchasing power will take a hit. In other words, if you wait, you could be paying a whole lot more money for less home.

We’re coming to an end of a long stretch of favorable market conditions. Like all good things, low rates and rapid home appreciation must come to an end. The experts seem to agree that 2015 will be the last stellar year before the market really starts to normalize.

I would hate for you to hesitate, and miss out on once-in-a-lifetime conditions as a result, if your on the fence about buying or selling.
 
If you would like to talk it over, I’m always available to chat. You don’t have to worry about contracts or obligations of any sort. Feel free to call or email any time.

Why Are Seller's Disclosures so Important?

I’ll help you buy or sell your home in Louisville, KY. If you’re looking to buy a home, I’ll help you pick the right home. If you’re thinking about selling, call me and I’ll tell you what price your home is most likely to sell for. Click here to search all available homes on my website.

Today we are going to talk about seller's disclosures, and what they mean to you as a buyer and a seller.

Seller's disclosures typically consist of 4 pages. The first 3 pages go over everything the seller knows about the property, good or bad, including any history of repairs or improvements. The 4th page (for homes built before 1978) is a lead-based paint disclosure, that you will have to sign whether there is lead-based paint in the home or not.

Now, let's talk about this from two different perspectives. As a seller, it's better to disclose any type of discrepancy in the disclosure, instead of trying to hide it. It will come back to haunt you if you do. Even if something has been fixed and addressed, you still need to disclose that at one time there was something wrong with the home. Things like leaks, mechanical issues, roof, windows, electrical, and pets all need to be disclosed. If you have a question about something, it's better to err on the side of caution to help you out in the long run.

As far as buyers are concerned, you can't always tell if something is wrong with the property simply by looking at it, so you are going to want to look at the disclosure and understand what exactly it's saying. You want to try and figure out how old the appliances are, and if there is anything to concern yourself with. Not to say you won't find something else during the home inspection, but a seller's disclosure gives you a better idea of what kind of work you are dealing with on your new home.

If you have any questions at all regarding disclosures or anything else real estate related, be sure to give us a call or send us an email. We look forward to hearing from you!

Do You Know Someone Who's a Fit for Our Team?

I’ll help you buy or sell your home in Louisville, KY. If you’re looking to buy a home, I’ll help you pick the right home. If you’re thinking about selling, call me and I’ll tell you what price your home is most likely to sell for. Click here to search all available homes on my website.
 

Hey everyone, today I am making a plea for your help. Our business is growing very quickly and, because of this, we have some positions to fill. We haven't been able to find the right person yet, so we are reaching out to all our great past and current clients, friends, and family for help.

The first job we are hiring for is an admin position. We are looking for someone who is energetic, fun, enjoys organization, and can help us keep things on track.

We also have a few positions open for buyer's agents. With so many leads in the pipeline, it seems a little daunting to undertake all of this work by myself. I am looking for two agents who want to learn about the business and make some good money doing so.

If you know somebody who might be interested in any of the above positions, give me a call or send me an email. Thanks in advance for your help!

What to Do Before Selling Your Louisville Home

I’ll help you buy or sell your home in Louisville, KY. If you’re looking to buy a home, I’ll help you pick the right home. If you’re thinking about selling, call me and I’ll tell you what price your home is most likely to sell for. Click here to search all available homes on my website.

As we inch our way towards the spring selling season, I'd like to give you all some advice on how to spruce up your Louisville home for a good sale. 

1. Become a real seller: What I mean by this is that you must forget about all the emotions involved in selling your home. Emotions have ruined sales before, and distancing yourself from your home when selling it is important. Besides, when you decide to sell, it's not really your home anymore. 
2. Find a good agent: This is important for exposure, and also for getting top dollar on your home. You know who to reach if you need an agent!
3. Pricing it perfectly: This may be the most important part of the entire selling process. It is a major marketing tool and if it's incorrect, it could ruin the entire sale.
4. Depersonalize: Remove collections, pictures, or other memorabilia that will distract potential buyers. Buyers need to see your home, not your lifestyle. To add to this, your home should always be in show-able condition when you're listing. People come and look at homes at a million different times of day and night, so you must always be prepared for a potential visitor that wants to buy your home. 
5. Don't get overzealous with repairs: Be careful with the renovations that you make because not all of them are going to net a high return. Bathroom and kitchen remodels can get pricey, so try repainting and removing curtains to lighten and brighten up your home.
6. Empty your closets: You want your closets to look nice and roomy, and they can't appear that way if all of your stuff is inside of it. 
7. Brighten up your home: Buyers need to see your home, and they also love well-lit homes with lots of natural light. Remove curtains and blinds to let more light in. I have always found that it makes potential buyers more comfortable to be inside of a sunny, well-lit home. 

Hopefully these tips will help you with your home sale, and if you need any extra help be sure to contact me.

Consider me your #1 resource for real estate in Louisville! I'm always here to help you!

Is Buying a Fixer-Upper Worth it?

I’ll help you buy or sell your home in Louisville, KY. If you’re looking to buy a home, I’ll help you pick the right home. If you’re thinking about selling, call me and I’ll tell you what price your home is most likely to sell for. Click here to search all available homes on my website.

We made it to 2015 already, can you believe it? Today, I want to talk to you about if it's wise to buy a home that needs renovations. With low interest rates, there are a lot of buyers pondering this question: While a home that needs renovations will undoubtedly sell for less money, are the savings worth it?

My answer to this question is: it depends on your situation. Are you a first time buyer? Are you moving up? Moving down?

I will say this: If you are a first time home buyer and want a good deal on a home, that's completely understandable. However, homes have layers, and even though the home may pass a home inspection, there could be underlying problems the seller is unaware of. Buying a fixer-upper requires a lot of work, and in some cases, can end up being more expensive than buying a renovated home. 

Like we said before, each individual case is different. If you'd like us to take a look at your situation and help you decide what your course of action should be, just give us a call. We have helped hundreds of home buyers just like you, and are eager to earn your business.

Happy Holidays from Todd Martin

I’ll help you buy or sell your home in Louisville, KY. If you’re looking to buy a home, I’ll help you pick the right home. If you’re thinking about selling, call me and I’ll tell you what price your home is most likely to sell for. Click here to search all available homes on my website.

Hey folks, we just wanted to take a break from our normal video blog to tell you how grateful we are to have you as a subscriber. It means a lot that you have been following us over the last few years and I am very thankful and appreciative of all of your great questions. Keep 'em coming in 2015!

So from our team to yours, we wish you a very Merry Christmas and a Happy New Year. Enjoy the blooper reel at the end of our video, as you see, we like to have fun around here.

How we helped Rich sell his condo with our patience and good advice

"My condo was very difficult to sell. It had been on the market last year but we took it off and then put it back on with Todd Martin. It was shown a lot of times and it was in an older building but there was just always something wrong that the buyers objected to. It was never the same issue either. Todd and Keith were very patient and advised me to stick with one contingency deal that I originally thought wasn’t going to follow through, however the advice turned out to be good advice! I really liked the web listing and how it showed how many times someone looked at it and how many times it was shown. It was very helpful information and I don’t think I could have asked for more help!"

How to Avoid Costly Mistakes When Negotiating

I’ll help you buy or sell your home in Louisville, KY. If you’re looking to buy a home, I’ll help you pick the right home. If you’re thinking about selling, call me and I’ll tell you what price your home is most likely to sell for. Click here to search all available homes on my website.

When a buyer is searching for a home and they find one they like, they'll submit an offer to the seller. From there, the negotiating begins. Today, we want to walk you through the steps of this process.

Price and conditions: The first things that will be discussed are the price and conditions of the property. Essentially, the offer includes what the buyer intends to buy the home for IF a few things are done beforehand. The buyer may ask for the appliances to be included in the sale or for the sellers to help cover part of the closing costs of the sale. 

Inspections and repairs: During this phase of negotiations, the buyer will come in and have inspections done on the property. It may be a full home inspection or various other inspections to look at particular parts of the house. The buyer has the option to inspect whatever they want to, in order to ensure they know what they're paying for. If there is anything that comes up that needs to be addressed, the buyer will put it on paper and let the seller know. As a seller, you can take care of all the repairs, split the repairs with the buyer, lower the price of your home, or do nothing at all. 

Survey: As a buyer, you have the option to do a survey on the property. This ensures the property lines and boundaries are where they are supposed to be and you don't have any encroachments. If a problem is found, make sure it's taken care of prior to closing.

Appraisal: Finally, the bank is going to do an appraisal once the property is purchased. Once the appraisal comes back, there will be no problems if it is at the contract price. If the appraisal is below the contract price, another negotiation will need to take place during the contract phase.

Hopefully this short explanation of negotiations during the contract phase will help you get the most out of your real estate transaction. If you need assistance, or have any questions about real estate, don't hesitate to give us a call or shoot us an email. We would be please to help!

The Benefits of a Comparable Market Analysis

I’ll help you buy or sell your home in Louisville, KY. If you’re looking to buy a home, I’ll help you pick the right home for you. If you’re thinking about selling, call me and I’ll tell you what price your home is most likely to sell for. Click here to search all available homes on my website.

No two homes are alike, which is why pricing a home for sale can be so challenging.

You may have an idea of what your home is worth on the open market, but in order to sell it, you’ll have to support your price to buyers with comparable homes – other similar nearby homes that have sold recently or are currently for sale.

To help determine the right asking price for your home, your real estate professional should prepare a comparative or comparable market analysis, or CMA.

The CMA is a professional report that real estate agents give to their clients. CMAs are generated by a computer program from your agent’s multiple listing service, (MLS). 

The MLS is available to members only, and they pay a fee to get access to the service’s public and proprietary data, including tax information, sold transactions, and listings input by all cooperating MLS members

Your agent puts search perimeters into the CMA program for homes for sale or those that have recently sold that are most similar to your home. This information is sorted according to fields of information such as neighborhood or zip code, number of bedrooms, number of baths, age of the home, square footage, price range, sold dates within 3-6 months, and other data.

The program then creates a report that tells the agent which homes most similar to yours have sold recently and which homes are for sale.

Having a CMA report done for your home is key to pricing it well and making sure you have a smooth transaction. If you have any question about CMA's or anything else real estate related, please give us a call or send us an email. We'd love to help out.

How we helped Mike purchase a new home by going above and beyond in the home search process

"He was very persistent in tracking down the property that met all of our requirements. We were out of town and I know on one occasion, Todd went and viewed properties on his own time without us to save us having to drive all the way down to Louisville to look at something that might not meet our needs which was a huge help. If we were to sell this property or buy another in that area I would definitely use Todd again and would highly recommend him to anyone else in the area."

How we helped first time home buyer Cory with our great negotiation skills

"Todd helped me find my first home. We had been looking for about 3 weeks or so until we found one we liked. After we found it, it was an easy and quick process.Todd did a lot of work in negotiating with the seller to get some of the prices down and to split the closing costs which we really appreciated."

Keep Your Emotions in Check When Buying a Home

I’ll help you buy or sell your home in Louisville, KY. If you’re looking to buy a home, I’ll help you pick the right home for you. If you’re thinking about selling, call me and I’ll tell you what price your home is most likely to sell for. Click here to search all available homes on my website.

Want to break your heart and your bank account at the same time? Then buy a new home based on the fact that you've fallen in love with it! Needless to say, you should never do this! In some cases, when you fall in love with the "pretty face" of a house, you fail to look underneath and find problems like bad wiring, leaky roofs, bad foundations, etc. This is an extremely expensive way to buy a home! A funny and sad example of this is shown in the 1986 film, The Money Pit, starring Tom Hanks and Shelley Long. They make the mistake of falling in love with a home and think they're getting a $1,000,000 property for only $200,000. Once they get into the home, they find out it'll cost a million to repair it! It's got wood rot, a bad roof, bad plumbing, bad electricity, even bad raccoons! Well, that's Hollywood exaggeration, of course. After all, The Money Pit was a comedy. But, when things like that happen to you, it's no joke. Repairs can cost you a lot of money and heartache, not to mention dangerously rising blood pressure! So, again, never ever fall in love with a house at first sight! Easier said than done, you say? How do you avoid this tendency? Below, I offer some solutions to the problem!

Solution 1: Get Cold Hard Facts about the Home! 

When I talk about "cold, hard facts," I'm talking about getting the house evaluated by a certified home inspector. It's well worth the money to have this job done because the inspector will cast the objective eye you lack on the property. He or she will evaluate every aspect of a house - roof, plumbing, wiring, foundation, etc. And then, that inspector will provide you with a written report that may range anywhere from 20 to 50 pages. It will give you a point-by-point summary of what needs to be corrected. The cost of a home inspection varies with the region of the country. Nationally, they range from $200 to $400. But, for the investment of, say, $200, you prevent yourself from losing thousands of dollars in repairs in two ways. One, you can simply walk away from the deal. Or, two, you can require that the seller fix all items before you sign a contract! Bonus: Often, you can ask that the seller pay for the home inspection!

Solution 2: Cool Off and Take Your Time!

Infatuation with a home is fun and exciting, and you can have the overwhelming temptation to buy an attractive home practically "on the spot." My advice - walk away and come back several hours later, especially after you've viewed other properties! By then, it's likely you'll have a more objective eye.

Solution 3: Keep It Simple! 

By this I mean you should stick within your price range. You want the best home at the best price within your means! So, if you see an outwardly gorgeous home at $10,000 above your price limit, say, "I love you, but you're way too pricey for me!" and walk away from the temptation! 

Solution 4: Rely on Your Realtor! 

At heart, I and other professional realtors like me, want you to have a home that meets your needs in the best way possible. That means preventing you from buying a home that's in substandard shape and/or beyond your means. To be perfectly blunt about it, I rely on great word of mouth from satisfied customers to make the most of my real estate career. So, you have my promise that I'll do my absolute best to get you into the house of your affordable dreams! 

Need that objective eye to help you make a smart home-buying decision? Contact us today!

How Can You Protect Yourself as a Buyer?

I’ll help you buy or sell your home in Louisville, KY. If you’re looking to buy a home, I’ll help you pick the right home for you. If you’re thinking about selling, call me and I’ll tell you what price your home is most likely to sell for. Click here to search all available homes on my website.

When making one of the most important financial decisions of your life, it's important to take certain steps to ensure you are protected. Here are 5 ways to make sure the home buying process goes just the way you want it to:

• Find an advisor: Work with a licensed Realtor so you have an experienced person working with your interests in mind. It's our job make the process as smooth as possible for you.

• Get an approval letter: Before you start your home search, you need to see a lender and get approved for a loan. We have some great lenders and programs we can get you familiar with if you're interested. Visit www.briancurlhomeloans.com and start your approval process. The worst thing we can do is show you a home you are unable to purchase. 

• Get a home inspection: It's common to have an inspector take a look at the home when writing an offer. Whether you're a first-time buyer or a seasoned pro, an inspection is a good idea because they will find things you won't. This will save you time, money, and energy down the road. Visit  www.haystackinspections.com and schedule an inspection!

• Buy title insurance: Like health or auto insurance, you never know if you're going to need it until something happens. Title insurance stays with you for the life of your purchase and, should you ever have to use it, the title company must defend you with their money.

•  Home warranty: This can protect you before you have to make a major homeowners claim. This, like a home inspection, will save you a lot of trouble down the road.

These are just a handful of the ways you can protect yourself as a buyer. If you would like more advice on how to ensure a smooth transaction, give us a call. We are always available to make your life a little easier.

How to get a Loan in Today's Market

I’ll help you buy or sell your home in Louisville, KY. If you’re looking to buy a home, I’ll help you pick the right home for you. If you’re thinking about selling, call me and I’ll tell you what price your home is most likely to sell for. Click here to search all available homes on my website.

Getting a Loan in Today’s Environment Is Easier Than Most People Think

We often get asked about the ease of getting mortgages and it’s an understandable question given the roller-coaster ride our industry has faced since 2007. But today, things are a lot different than they were just a few years ago. Banks are still particular but they are not afraid of lending. In fact, they have plenty of money to lend.

The real question is “how has the process changed?” and also whether or not it is actually difficult to obtain a mortgage. And the answers will surprise you. Not only is the process to obtain a mortgage easier than most people seem to think but also it is really not too much more a changed process than a few years ago.

Banks Are Simply More Cautious

It used to be that most people could walk into a bank, present their ID and almost literally walk out with a bank note and keys in hand. Well, ok not exactly but it was almost that easy and credit scores were not as important as they are today. What has changed is that banks now take extra precautions to ensure borrowers’ financial viability and ability to repay the loan. There has never been a more thorough documentation process involved and for good reason.

Today, a borrower must show that they are responsible citizens that are worthy of paying back their debts. They must have a credit score of 620 or higher and income must be proven with at least 2 months’ pay stubs, two yeas of employment on record and 2 years of tax returns to corroborate the financials. Bank statements are also required as part of the process.

The bottom line is this: if you pay your bills on time, can prove a reasonable income level and a low enough debt-to-income ratio that supports the mortgage you are looking to obtain, chances are you will be approved. Making payments on time is critical as it is the primary source of information that lenders will review when they look at your credit report.

Many Loans Offer Low or No Down Payment

As far as the ease of being able to actually obtain the home, a lot of people are unsure of lenders’ down payment requirements these days. The truth is there are many programs out there that allow buyers to put only 3%, 5% or even NO money down. Depending on which program and financing options you select, there are benefits offered to military veterans, people seeking homes in certain areas in the outskirts of the city and also income-based low down payment programs as well.

One of the most popular financing options that many buyers choose is FHA financing which requires just 3.5% down on the purchase of a home. Since this option is not limited just to first-time buyers it is a great choice for many buyers.

Buyers Can Contribute to a Smoother Process

Some of the things that buyers can do to prepare in advance and to help the financing process go as smoothly as possible include preparing two years of tax returns, employment pay stubs and the two most recent months of bank statements. In addition, retirement statements, divorce decrees and rental histories showing responsible repayment habits.

Now is a great time to buy a home! Don’t let the rumors out there discourage you from starting the process. Lenders are lending. Right now homeowners are able to function in a home for far less than it would cost to rent each month. In fact, it often costs less to move into a home than it does to move into a rental unit, considering the first and last month’s rent and security deposit.

If you would like to explore your options, we invite you to contact us today! We look forward to making your real estate dreams become a reality.

The Dangers of Zillow and Trulia

I’ll help you buy or sell your home in Louisville, KY. If you’re looking to buy a home, I’ll help you pick the right home for you. If you’re thinking about selling, call me and I’ll tell you what price your home is most likely to sell for. Click here to search all available homes on my website.

This week's blog is all about popular websites that are available to the public for use to begin their home search, and why they aren't necessarily a one-stop shop for all your real estate needs. If you haven't been following real estate news recently, the big story is that popular home search website Zillow has purchased its biggest competitor, Trulia, for a sum of $3.5 billion.

Here is a Bloomberg article on the acquisition that explains all the details of the merger if you are interested. 

Since the acquisition, many people are now worried that the merger of these two sites will change the real estate business, and negatively affect real estate brokers. Here's an article that touches on the subject.

We now have 2 large sites coming together to give data to the public. It sounds great on paper, but the problem with the data that these sites are providing is that it's not always very accurate. These sites aren't synced with the local MLS, like ours is, so we are seeing a lot of inaccuracies in their information. To get a truly accurate value, you need somebody who personally knows your local market to give you a valuation. You can't rely on a website to do the same thing a real person can.

When clients of ours search for homes on these sites instead of on sites that are fed directly from the local MLS like our own, we run into problems. We have had clients send us listings they are interested in from Zillow or Trulia, only to find out that these homes have already gone under contract or sold. You need to be careful on these sites, because they really do have a lag in time and you could be falling in love with a house that has long since been gone.

Another problem with these sites stems from home valuations. People want to know the value of their specific home, but all these sites do is use an algorithm to determine the approximate value of your home. There are a lot of things they don't take into account that figures into your home's value. Their inaccuracies in estimations will come back to haunt you, and you won't get nearly as much money for your home as you could if you hired an agent to value your home.

The first step to take to avoid these mistakes is searching on a website that has a real MLS base to it like our own. We would also encourage you to talk to an agent to get a true and accurate valuation for your home. If you have any questions at all or know somebody who is looking to buy or sell a home in Louisville, please don't keep us a secret. We are here to help and would love to assist you with any and all of your real estate needs.

Go farther and play harder with your summer big kid toys

The summer season is a great time to bring out the big kid toys. Out come the boats, lawn mowers, four wheelers, dirt bikes and all-terrain vehicles for plenty of fun and excitement all summer long.

While summer doesn't have all the freezing, thawing or salt of colder months, which can cause a bit of havoc on equipment, it's still a good idea to protect your toys and gear from the elements so they go farther, and you can play harder.

As you bring all your machinery out this summer, keep in mind these care tips:

* Water and metal don't mix - Heading out on the ATV, dirt bike and four wheeler isn't much fun if there isn't a large mud puddle to splash through. By the end of the day, it should be hard to determine exactly what color the dirt bike started out as. But once the day has ended, don't just leave your equipment on the driveway. Give everything a good wash and then carefully dry it as well. This is a good way to keep rust from developing, and it allows you to quickly spot any damage that might have occurred to the finish.

* Added protection - These machines are designed for hard use, but you can give them an even stronger layer of protection with a LINE-X Spray-On Protective Coating. These coatings are resistant to corrosion, abrasion, chemicals, protect against UV and water damage, provide a non-skid surface and give your toys additional strength and durability for longer play. Find a LINE-X franchise dealer at www.LINE-X.com.

* Keep the insides clean as well - Just like your car, your lawn mower, boat and four wheeler also need regular maintenance to keep the engines running well. Always consult your owner's manual first to determine what kind of gasoline is needed, and what other maintenance items might be necessary. For example, grease, filter replacement, spark plug and batteries are items that should be reviewed and checked.

* Storage - If you're using your toys frequently all summer long, it probably isn't in your best interest to constantly be putting the machines back into storage and out of the elements. But it is a good idea to find a protected location out of the sun, rain and hail, which can help protect the framework and structure of the machines. For boats, a boat cover helps tremendously, and for lawn mowers, ATVs and dirt bikes, a storage shed or space in the garage works well.

Giving your gear a little protection will go a long way to help you enjoy the equipment all summer long, and well into next year. Use these tips to keep everything in tip-top shape so you can go farther and play harder.

Courtesy of BPT

​Advice for small businesses poised to hire their first employee

(BPT) - For small-business owners, hiring a first employee is a significant milestone - one that directly affects the company's growth, future success and culture. Hiring staff means enhancing your business' ability to grow, but it also presents unique challenges.



From affirming that the person you hire has the credentials to do the job and is the right personality fit for your organization, to ensuring you don't run afoul of payroll taxes, workers' compensation and other legal requirements, making that first hire requires a lot of preparation. When you're getting ready to make that first all-important hire, keep some guidelines in mind:



Understand costs



You hire a first employee to help your business grow, but the costs associated with that growth can be significant. It's important to weigh carefully the benefits of hiring against the related costs. According to the Small Business Association, these can include:



* Wages and taxes, including unemployment, Medicare and Social Security taxes



* Workers compensation insurance



* Recruiting and training expenses



* Benefits



* Payroll management



* Equipment, including software licenses and data plans, to help an employee do his or her job



Seeking candidates



Finding the right employee for your small business can also be a challenge. While professional hiring services can do the legwork for you, most small-business owners manage the hiring process themselves. You'll need to consider where to advertise for candidates, what professional requirements you'll want them to meet, what wage you'll offer and how you'll handle the interview process.



"We work with thousands of entrepreneurs and how to set wages is a frequent topic of interest," says Michael Alter, president and CEO of SurePayroll, Inc., a Paychex company. Alter co-founded SurePayroll, and since then it has grown from a small business of four people to a company that employs more than 200 people. "As payroll providers, we know that wages are set by the market, not the employer. Researching and offering a competitive wage will help you to attract and keep the right candidate."



Another critical component to consider is fit. A comprehensive pre-employment screening can help you make better hiring decisions. In addition to reviewing candidates' resumes and references, your screening may include a background check, drug screening, behavioral assessments and skills testing.



Prepare for payroll



No one works for love alone. Your new employee will expect to be paid on time each pay period with the appropriate amount of withholdings taken out of his or her check. Managing payroll, however, can be costly and time-consuming; a small business with 10 or fewer employees may spend up to $2,600 per year on direct labor for payroll, according to SurePayroll. What's more, if you don't know or understand tax laws and requirements, you could find your company facing IRS penalties.



In the past, outsourcing payroll wasn't always a practical option for small businesses with just one or two employees. Today, an online service such as SurePayroll can help small business owners manage their own payroll affordably, accurately and efficiently by paying employees and paying and filing payroll taxes. These services handle all the calculations for paying employees; calculating, paying and filing federal, state and local payroll taxes anywhere in the country; and notifying tax authorities of new hires. Mobile payroll apps also allow owners to run payroll on the go anytime, anywhere. Visit www.SurePayroll.com to learn more.



Next steps after hiring



In addition to completing necessary payroll tax forms, benefit enrollment forms and employee information files, you'll need to complete a New Hire Reporting form that helps state and federal agencies track down parents in regard to child support payments.



You'll also need to set up a storage system; the IRS requires all companies keep employment tax records for at least four years. Additional post-hiring tasks will include:



* Verifying an employee's eligibility to work. Federal law requires employers to verify that an employee can legally work in the U.S. You'll need to complete and submit an Employment Eligibility Verification Form within three days of making a hire.



* Fulfill your obligations under your state's new hire reporting program. Federal law requires all employers to report all new hires to the state within 20 days of hiring.



* Secure workers' compensation insurance.



* Establish a bookkeeping system.



Hiring that first employee can be exciting and challenging. Fortunately, with some planning and the help of online tools, you can ensure the hiring process goes smoothly, and each worker who joins your team contributes to your business' continued growth.



Courtesy of BPT

The most-overlooked financial planning tool that's free to everyone

What did you do with that envelope that used to arrive once a year with estimates of your future Social Security benefits? You might have reviewed the information. You may have even filed the statement away as a reference. Now, this powerful financial planning tool is as close as the nearest computer.

"Often, people don't think of their Social Security statement when thinking of their financial well-being," says Rod Griffin, director of public education for Experian. "But your statement can be a valuable financial planning tool."

Your SSA statement is now available online at www.socialsecurity.gov/mystatement. It provides an estimate of the amount of Social Security benefits you could receive upon retiring, but it can also help you with retirement savings strategies, estate planning and making decisions about disability insurance.

Retirement saving

Knowing how much your Social Security payments will be can help you better understand how much you'll need to save in other vehicles to fund your lifestyle during retirement. After reviewing your statement online, you may decide to adjust your 401(k) contributions, open an IRA or seek other avenues for funding your retirement.

The statement can also help you work with your current employer to ensure they're withholding the appropriate amounts.

Estate planning

Your online statement will also give you an estimate of how much your survivors might be eligible for if you die. This information covers both spouses and minor dependent children.

"This could be useful information when you're planning how you will financially take care of your loved ones if you pass away," Griffin says.

Estate planning often involves considering what sources of income will be available to survivors, and knowing how much Social Security benefits yours could be eligible for can help in the planning process.



Disability decisions

According to the SSA, 62 is the earliest age people can collect a reduced Social Security retirement payment, and the full retirement age is 67 for people born after 1960. But a 20-year-old worker has a three in 10 chance of becoming disabled before reaching retirement age, and the average age of people receiving Social Security disability benefits is just 53 years old.

If you have a health problem that you know will lead to disability, knowing how much you could expect to receive from Social Security may help you make decisions about how much disability insurance you'll need.

With the availability to access your Social Security earnings and benefit information online, it's easier than ever to make use of this important financial planning tool. The SSA uses Experian's fraud prevention services to securely authenticate and safeguard the identities of people accessing their earnings and benefits information online.

To access your statement, go to www.socialsecurity.gov/mystatement, create an account and provide the information as prompted. You'll be able to access your benefit information and even see a history of your annual earnings for every year.



For more information on how to live financially smart, go to www.livecreditsmart.com.

Courtesy of BPT