Tuesday, June 5, 2012
Short Sales vs Trusts
Many banks request that the property be taken out of the Trust..... Here’s why.
Short Sales are done for Borrowers. Even though the property is owned by a Trust the note was more than likely signed by an individual. The individual is the one you are doing the Short Sale for. He is the Borrower.
The ownership of the property was probably placed in a Trust after it was purchased. Usually this is done for estate and/or tax purposes.
So.....your listing agreement and the purchase contract would be in the name of the owner of record. This could be a Trust, LLC, INC or a person(s). You would need a copy of the Declaration page for the Trust, LLC or INC to see who is authorized to sign and act on the entity’s behalf. This is the person who signs the agreements.
The Borrower(s) is the person that took out the loan and signed the Note. This could be the same person that is authorized by the Trust or it could be someone else. Whoever it is, this is the person who must go through the Short Sale process. Simple.
Monday, December 5, 2011
Real Estate and IRS's
Real Estate in IRAs
Little-Known Secret Allows Real Estate Investors to Create True Wealth
Historically, real estate has given many Americans with a stable investment vehicle that provides both income and appreciation. One of the greatest tools available to real estate investors is government-sponsored retirement plans, such as IRAs and 401(k)s.
Most investors believe that their only IRA investment options are bank CDs, the stock market, and mutual funds.
Few Americans realize that they have the option to self-direct their IRAs and other retirement plans into real estate—and that they can benefit from the tax advantages those plans provide. IRA investments earn tax-deferred/tax-free profits.
Imagine not having to pay taxes right away—or ever—on your real estate deals. Instead of paying 25%, or 30%, or even 50% of your profits to the government in taxes, you keep it.
Additional advantages of the real estate IRAs include:
The power of compound interest
A reduction of taxable income
Asset protection
Estate planning
If you're a successful real estate investor, or if you're just looking to diversify your retirement portfolio, the combination of real estate and your IRA can be very powerful.
Little-Known Secret Allows Real Estate Investors to Create True Wealth
Historically, real estate has given many Americans with a stable investment vehicle that provides both income and appreciation. One of the greatest tools available to real estate investors is government-sponsored retirement plans, such as IRAs and 401(k)s.
Most investors believe that their only IRA investment options are bank CDs, the stock market, and mutual funds.
Few Americans realize that they have the option to self-direct their IRAs and other retirement plans into real estate—and that they can benefit from the tax advantages those plans provide. IRA investments earn tax-deferred/tax-free profits.
Imagine not having to pay taxes right away—or ever—on your real estate deals. Instead of paying 25%, or 30%, or even 50% of your profits to the government in taxes, you keep it.
Additional advantages of the real estate IRAs include:
The power of compound interest
A reduction of taxable income
Asset protection
Estate planning
If you're a successful real estate investor, or if you're just looking to diversify your retirement portfolio, the combination of real estate and your IRA can be very powerful.
Wednesday, November 23, 2011
Black Friday Specials
Suffice it to say, Black Friday is just not my scene. Frankly, I don’t like shopping on the best of days. So the idea of frenzied shoppers elbowing each other to get to the $2 toasters after spending their family’s precious Thanksgiving moments queued up overnight in the megastore parking lot sends an involuntary shudder – and shiver – up my spine.
On the other hand, I like a deal as much as the next person – maybe more. My idea of a real deal, however, isn’t a $2 toaster. It’s getting a steal on the house where the toaster will live!
Fortunately, ‘tis the season for big-time real estate bargains. Whether you’re buying a new home or staying put, here are six ways you can save some serious real estate dollars this holiday season.
1. Home Buying. In most markets nationwide, prices continue to hover at levels we saw almost ten years ago. Of course, just how much of a fire sale you’re talking depends on where you’re buying. In Manhattan and San Francisco, prices actually did rise last year—but much less steeply than in years past. And while you may still have to deal with multiple offers, at least those are no longer in double-digits.
On the other hand, in locations like Bend, Oregon and Jacksonville, Florida, houses are going for half of what they sold for just five years ago (or less!).
Following conventional real estate wisdom, many sellers, especially in cold weather spots, take their homes off the market after mid-November, when people are more preoccupied with the holidays than they are with real estate. The flip side? Those who do stay in the market tend to be highly motivated and willing to deal. Take that into account when making your initial offer and during subsequent counters.
2. Sealing the Deal. Motivated sellers are often willing to sweeten the pot by helping out with all those transaction-related real estate costs (including loan origination fees, title insurance costs, escrow fees and even transfer taxes). Since lenders will often limit closing cost credits from sellers to 3%-6% of the home’s sale price, however, check with your real estate agent and mortgage broker about your lender’s guidelines before you write up your offer.
Even if your home’s sellers don’t have the wiggle room to lower the sale price or to cover your closing costs, they might be able to include home electronics, appliances or furniture in the deal. I’ve even heard stories of a seller who recently threw a Smart Car into the deal! Just make sure that to check with the real estate professionals handling your sale and mortgage to make sure any deal-sweetening seller incentives doesn’t sour your loan.
3. Interest Rates. With mortgage rates still near record lows, this is a very merry time to buy or refi, with a mortgage. Just this week, Bankrate reports that the going rate on a 30-year fixed mortgage dropped to 4.24%, and the rate on a 15-year fixed rate mortgage fell to 3.47%. Odds are that rates will remain rock bottom through the holidays (and beyond), making mortgages the gift(s) that keeps on giving in terms of long-term savings.
4. Property Taxes. Hate to pay taxes? You’re in luck! Since property taxes are usually determined by how much you paid for your house, getting a great buy on your house means great savings on your property taxes. Talk about a two-fer! (Oh – and if you already own a home that has declined in value, give yourself the gift of visiting your County tax assessor’s website and submitting a request to have your homes assessed value reduced. What you save can buy a whole lot of iPhones and Elmos.)
5. Negotiating Existing Loans. At year’s end, some banks and asset management companies who have purchased whole portfolios of second mortgages and home equity lines of credit are motivated to close out outstanding issues that are lingering on their books. So if you’re willing and able to pay a lump sum to settle a second mortgage rather than pay the full amount you owe, jump now. A friend of mine who has a $60,000 second mortgage has been in talks with her bank. If she settles the debt by the end of the year, they’ve agreed to take $12,000 and call it good.
6. Home Improvements. You can take advantage of the last of the remaining federal real estate tax credits by improving the energy efficiency of your home:
You can get back up to $500 on your federal taxes when you install approved, energy-efficient heating, ventilating, air conditioning (HVAC) systems, insulation, roofs, water heaters, and dual-pane windows, as well as skylights and doors. This particular tax credit, which only works for your existing principle residence, expires at the end of this year!
If you go whole hog and install a solar energy system, you can recoup as much as 30 percent of the cost, with a credit that doesn’t expire until December 31, 2016.
Also, many contractors offer very deep discounts for off-season home improvements, like installing an air conditioner or pool upgrades in the wintertime.
complements of Trulia
On the other hand, I like a deal as much as the next person – maybe more. My idea of a real deal, however, isn’t a $2 toaster. It’s getting a steal on the house where the toaster will live!
Fortunately, ‘tis the season for big-time real estate bargains. Whether you’re buying a new home or staying put, here are six ways you can save some serious real estate dollars this holiday season.
1. Home Buying. In most markets nationwide, prices continue to hover at levels we saw almost ten years ago. Of course, just how much of a fire sale you’re talking depends on where you’re buying. In Manhattan and San Francisco, prices actually did rise last year—but much less steeply than in years past. And while you may still have to deal with multiple offers, at least those are no longer in double-digits.
On the other hand, in locations like Bend, Oregon and Jacksonville, Florida, houses are going for half of what they sold for just five years ago (or less!).
Following conventional real estate wisdom, many sellers, especially in cold weather spots, take their homes off the market after mid-November, when people are more preoccupied with the holidays than they are with real estate. The flip side? Those who do stay in the market tend to be highly motivated and willing to deal. Take that into account when making your initial offer and during subsequent counters.
2. Sealing the Deal. Motivated sellers are often willing to sweeten the pot by helping out with all those transaction-related real estate costs (including loan origination fees, title insurance costs, escrow fees and even transfer taxes). Since lenders will often limit closing cost credits from sellers to 3%-6% of the home’s sale price, however, check with your real estate agent and mortgage broker about your lender’s guidelines before you write up your offer.
Even if your home’s sellers don’t have the wiggle room to lower the sale price or to cover your closing costs, they might be able to include home electronics, appliances or furniture in the deal. I’ve even heard stories of a seller who recently threw a Smart Car into the deal! Just make sure that to check with the real estate professionals handling your sale and mortgage to make sure any deal-sweetening seller incentives doesn’t sour your loan.
3. Interest Rates. With mortgage rates still near record lows, this is a very merry time to buy or refi, with a mortgage. Just this week, Bankrate reports that the going rate on a 30-year fixed mortgage dropped to 4.24%, and the rate on a 15-year fixed rate mortgage fell to 3.47%. Odds are that rates will remain rock bottom through the holidays (and beyond), making mortgages the gift(s) that keeps on giving in terms of long-term savings.
4. Property Taxes. Hate to pay taxes? You’re in luck! Since property taxes are usually determined by how much you paid for your house, getting a great buy on your house means great savings on your property taxes. Talk about a two-fer! (Oh – and if you already own a home that has declined in value, give yourself the gift of visiting your County tax assessor’s website and submitting a request to have your homes assessed value reduced. What you save can buy a whole lot of iPhones and Elmos.)
5. Negotiating Existing Loans. At year’s end, some banks and asset management companies who have purchased whole portfolios of second mortgages and home equity lines of credit are motivated to close out outstanding issues that are lingering on their books. So if you’re willing and able to pay a lump sum to settle a second mortgage rather than pay the full amount you owe, jump now. A friend of mine who has a $60,000 second mortgage has been in talks with her bank. If she settles the debt by the end of the year, they’ve agreed to take $12,000 and call it good.
6. Home Improvements. You can take advantage of the last of the remaining federal real estate tax credits by improving the energy efficiency of your home:
You can get back up to $500 on your federal taxes when you install approved, energy-efficient heating, ventilating, air conditioning (HVAC) systems, insulation, roofs, water heaters, and dual-pane windows, as well as skylights and doors. This particular tax credit, which only works for your existing principle residence, expires at the end of this year!
If you go whole hog and install a solar energy system, you can recoup as much as 30 percent of the cost, with a credit that doesn’t expire until December 31, 2016.
Also, many contractors offer very deep discounts for off-season home improvements, like installing an air conditioner or pool upgrades in the wintertime.
complements of Trulia
Wednesday, October 5, 2011
The October Real Estate Buzz
30-Year Fixed Mortgage Rate Hits Record Low
Mortgage rates posted mixed results this week, but the benchmark conforming 30-year fixed mortgage rates fell to a record low of 4.41%, according to Bankrate.com. The average 30-year fixed mortgage has an average of 0.43 discount and origination points. The previous record low of 4.42% was set in October and November of 2010.
The average 15-year fixed mortgage increased to 3.63% while the larger jumbo 30-year fixed rate bounced to 4.94%. Adjustable-rate mortgages were mostly lower, with the average 5-year ARM dropping to 3.12% and the 7-year ARM sinking to 3.27%. Both are record lows.
Prevailing economic concerns have kept mortgage rates at historically low levels. The average 30-year fixed mortgage rate has been below 5% in all but 11 weeks during the past year, and never as low as this week. A widely anticipated speech by Fed Chairman Ben Bernanke and a full slate of economic data in the next 10 days will steer perceptions about the economy as well as the direction of mortgage rates.
The last time mortgage rates were above 6% was Nov. 2008. At the time, the average 30-year fixed rate was 6.33%, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.41%, the monthly payment for the same size loan would be $1,002.70, a difference of $239 per month for anyone refinancing now.
Source: Bankrate, Inc.
Pending Home Sales Slip in July but Up Strongly From One Year Ago
Washington, DC, August 29, 2011
Pending home sales declined in July but remain well above year-ago levels, according to the National Association of Realtors®. All regions show monthly declines except for the West, which continues to show the highest level of sales contract activity.
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, slipped 1.3 percent to 89.7 in July from 90.9 in June but is 14.4 percent above the 78.4 index in July 2010. The data reflects contracts but not closings.
Lawrence Yun, NAR chief economist, said sales activity is underperforming. "The market can easily move into a healthy expansion if mortgage underwriting standards return to normalcy," he said. "We also need to be mindful that not all sales contracts are leading to closed existing-home sales. Other market frictions need to be addressed, such as assuring that proper comparables are used in appraisal valuations, and streamlining the short sales process."
"Looking at pending home sales over a longer span, contract activity over the past three months is fairly comparable to the first three months of the year, and well above the low seen in April," Yun said. "The underlying factors for improving sales are developing, such as rising rents, record high affordability conditions and investors buying real estate as a future inflation hedge. It is now a question of lending standards and consumers having the necessary confidence to enter the market."
The National Association of Realtors®, "The Voice for Real Estate," is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales; it coincides with a level that is historically healthy.
Prepping a Home for Sale: Simple Staging Tips for Inside and Out
By Barb Schwarz, Stagedhomes.com
Before you show your home to any potential buyer, you want to make sure the staging is perfect. Follow these general tips and your home will look better than the competition.
FOR THE INSIDE
•Clear all unnecessary objects from furniture throughout the house. Keep accessories and objects on the furniture restricted to groups of 1, 3, or 5 items. In general, a de-cluttered home helps the buyer mentally "move in" with their own things. Rearrange or remove some of the furniture in your home, if necessary. Many times home owners have too much furniture in a room. When it comes to selling your home, thin out overcrowded rooms to make the rooms appear larger.
•Clear all unnecessary objects from the kitchen countertops. If it hasn't been used for three months…put it away! Clear refrigerator fronts of messages, magnets, pictures, etc.
•In the bathroom, remove any unnecessary items from the countertops, tub, shower stall, and commode top. Keep only the most necessary cosmetics, brushes, perfumes, etc., in one small group on the counter. Coordinate towels in one or two colors only.
•Take down, reduce, or rearrange pictures and objects on walls. Patch and paint all walls, if necessary.
•Review the house interior, room by room, and…
1. Paint any room needing paint.
2. Clean carpet and draperies that need it.
3. Clean windows.
•Pack up and store. If you need room to store extra possessions, get a storage unit.
•Leave on certain lights during the day . During showings turn on ALL lights and lamps.
•Set a background tune. Play light FM music every day in the house, for all viewings.
FOR THE OUTSIDE
•Go around the perimeter of the house and move all garbage cans, discarded wood scraps, extra building materials, etc., to the garage or, if applicable, take them to the dump.
•Check gutters and roof for dry rot and moss. Make sure they are swept and cleaned.
•Examine all plants. Plants are like children…they grow so fast. Prune bushes and trees. Keep plants from blocking windows: "You can't sell a house if you can't see it!"
•Remove any dead plants, weed all planting areas, and put down fresh mulching material.
•Keep your lawn freshly cut, edged, and fertilized during the growing season.
•Clear patios or decks of all small items, such as little planters, flower pots, charcoal, barbeques, toys, etc.
•Check the condition of the paint on your home, especially the trim and the front door. The first impression, or "curb appeal," is very important.
IN GENERAL
Try to look at your house "through a buyer's eyes," as though you've never seen it before. This exercise will help you see what needs to be done. Any time and money invested on these items will usually bring you the return of more money and a quicker sale.
August 2011 Sales Statistics
This graph clearly shows that real estate values have continued to decline, with only a few months showing small increases. As values declined, the number of sales increased as indicated on the "# of sales" graph below.
The number of closed sales increased substantially to a record 3,706 closings. It is obvious that buyers are active in the Las Vegas market and are taking advantage of the falling prices.
The number of REO/Bank Owned properties continue to exceed other ownership type sales numbers. It is obvious the banks are pricing their properties aggressively putting pressure on other sellers to accept lower prices as well.
4 Don’ts When Selling a Home
By Melissa Dittmann Tracey, REALTOR Magazine
Kelly O'Ryan, an office manager for Coldwell Banker in Lexington, Mass., recently highlighted several tips of what home owners shouldn't do when trying to sell their home in an article at RISMedia. Here are a few don'ts that made it on their list, see if you agree!
1. Don't slack off on home maintenance. Houses in need of TLC often attract investors or property flippers, which are known for submitting low-ball offers. To attract offers and the highest bids, sellers should attend to any upkeep and maintenance issues before putting the house for sale.
2. Make sure the home isn't being overshadowed outside. Nothing kills curb appeal more than a home you're selling that you can't even see. Be sure to trim trees or bushes to ensure they aren't blocking any windows or the exterior of the home.
3. Remove wallpaper. Wallpaper and borders can be a nuisance to remove so you might want to take these personal decor touches down before you list the home. Neutralize the homes in subtle colors that will appeal to the most buyers and allow buyers to better visualize their personal decor moving in.
4. Don't keep an empty home empty. Buyers can struggle in picturing themselves moving in if a home is left empty. Vacant homes can feel cold and rooms can look smaller than they really are. That's why O'Ryan reminds us why builders spend thousands of dollars staging model homes. If your listing is vacant, consider staging it to bring in furniture and accessories to help define the various rooms functions.
Mortgage rates posted mixed results this week, but the benchmark conforming 30-year fixed mortgage rates fell to a record low of 4.41%, according to Bankrate.com. The average 30-year fixed mortgage has an average of 0.43 discount and origination points. The previous record low of 4.42% was set in October and November of 2010.
The average 15-year fixed mortgage increased to 3.63% while the larger jumbo 30-year fixed rate bounced to 4.94%. Adjustable-rate mortgages were mostly lower, with the average 5-year ARM dropping to 3.12% and the 7-year ARM sinking to 3.27%. Both are record lows.
Prevailing economic concerns have kept mortgage rates at historically low levels. The average 30-year fixed mortgage rate has been below 5% in all but 11 weeks during the past year, and never as low as this week. A widely anticipated speech by Fed Chairman Ben Bernanke and a full slate of economic data in the next 10 days will steer perceptions about the economy as well as the direction of mortgage rates.
The last time mortgage rates were above 6% was Nov. 2008. At the time, the average 30-year fixed rate was 6.33%, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.41%, the monthly payment for the same size loan would be $1,002.70, a difference of $239 per month for anyone refinancing now.
Source: Bankrate, Inc.
Pending Home Sales Slip in July but Up Strongly From One Year Ago
Washington, DC, August 29, 2011
Pending home sales declined in July but remain well above year-ago levels, according to the National Association of Realtors®. All regions show monthly declines except for the West, which continues to show the highest level of sales contract activity.
The Pending Home Sales Index,* a forward-looking indicator based on contract signings, slipped 1.3 percent to 89.7 in July from 90.9 in June but is 14.4 percent above the 78.4 index in July 2010. The data reflects contracts but not closings.
Lawrence Yun, NAR chief economist, said sales activity is underperforming. "The market can easily move into a healthy expansion if mortgage underwriting standards return to normalcy," he said. "We also need to be mindful that not all sales contracts are leading to closed existing-home sales. Other market frictions need to be addressed, such as assuring that proper comparables are used in appraisal valuations, and streamlining the short sales process."
"Looking at pending home sales over a longer span, contract activity over the past three months is fairly comparable to the first three months of the year, and well above the low seen in April," Yun said. "The underlying factors for improving sales are developing, such as rising rents, record high affordability conditions and investors buying real estate as a future inflation hedge. It is now a question of lending standards and consumers having the necessary confidence to enter the market."
The National Association of Realtors®, "The Voice for Real Estate," is America’s largest trade association, representing 1.1 million members involved in all aspects of the residential and commercial real estate industries.
*The Pending Home Sales Index is a leading indicator for the housing sector, based on pending sales of existing homes. A sale is listed as pending when the contract has been signed but the transaction has not closed, though the sale usually is finalized within one or two months of signing.
The index is based on a large national sample, typically representing about 20 percent of transactions for existing-home sales. In developing the model for the index, it was demonstrated that the level of monthly sales-contract activity parallels the level of closed existing-home sales in the following two months.
An index of 100 is equal to the average level of contract activity during 2001, which was the first year to be examined as well as the first of five consecutive record years for existing-home sales; it coincides with a level that is historically healthy.
Prepping a Home for Sale: Simple Staging Tips for Inside and Out
By Barb Schwarz, Stagedhomes.com
Before you show your home to any potential buyer, you want to make sure the staging is perfect. Follow these general tips and your home will look better than the competition.
FOR THE INSIDE
•Clear all unnecessary objects from furniture throughout the house. Keep accessories and objects on the furniture restricted to groups of 1, 3, or 5 items. In general, a de-cluttered home helps the buyer mentally "move in" with their own things. Rearrange or remove some of the furniture in your home, if necessary. Many times home owners have too much furniture in a room. When it comes to selling your home, thin out overcrowded rooms to make the rooms appear larger.
•Clear all unnecessary objects from the kitchen countertops. If it hasn't been used for three months…put it away! Clear refrigerator fronts of messages, magnets, pictures, etc.
•In the bathroom, remove any unnecessary items from the countertops, tub, shower stall, and commode top. Keep only the most necessary cosmetics, brushes, perfumes, etc., in one small group on the counter. Coordinate towels in one or two colors only.
•Take down, reduce, or rearrange pictures and objects on walls. Patch and paint all walls, if necessary.
•Review the house interior, room by room, and…
1. Paint any room needing paint.
2. Clean carpet and draperies that need it.
3. Clean windows.
•Pack up and store. If you need room to store extra possessions, get a storage unit.
•Leave on certain lights during the day . During showings turn on ALL lights and lamps.
•Set a background tune. Play light FM music every day in the house, for all viewings.
FOR THE OUTSIDE
•Go around the perimeter of the house and move all garbage cans, discarded wood scraps, extra building materials, etc., to the garage or, if applicable, take them to the dump.
•Check gutters and roof for dry rot and moss. Make sure they are swept and cleaned.
•Examine all plants. Plants are like children…they grow so fast. Prune bushes and trees. Keep plants from blocking windows: "You can't sell a house if you can't see it!"
•Remove any dead plants, weed all planting areas, and put down fresh mulching material.
•Keep your lawn freshly cut, edged, and fertilized during the growing season.
•Clear patios or decks of all small items, such as little planters, flower pots, charcoal, barbeques, toys, etc.
•Check the condition of the paint on your home, especially the trim and the front door. The first impression, or "curb appeal," is very important.
IN GENERAL
Try to look at your house "through a buyer's eyes," as though you've never seen it before. This exercise will help you see what needs to be done. Any time and money invested on these items will usually bring you the return of more money and a quicker sale.
August 2011 Sales Statistics
This graph clearly shows that real estate values have continued to decline, with only a few months showing small increases. As values declined, the number of sales increased as indicated on the "# of sales" graph below.
The number of closed sales increased substantially to a record 3,706 closings. It is obvious that buyers are active in the Las Vegas market and are taking advantage of the falling prices.
The number of REO/Bank Owned properties continue to exceed other ownership type sales numbers. It is obvious the banks are pricing their properties aggressively putting pressure on other sellers to accept lower prices as well.
4 Don’ts When Selling a Home
By Melissa Dittmann Tracey, REALTOR Magazine
Kelly O'Ryan, an office manager for Coldwell Banker in Lexington, Mass., recently highlighted several tips of what home owners shouldn't do when trying to sell their home in an article at RISMedia. Here are a few don'ts that made it on their list, see if you agree!
1. Don't slack off on home maintenance. Houses in need of TLC often attract investors or property flippers, which are known for submitting low-ball offers. To attract offers and the highest bids, sellers should attend to any upkeep and maintenance issues before putting the house for sale.
2. Make sure the home isn't being overshadowed outside. Nothing kills curb appeal more than a home you're selling that you can't even see. Be sure to trim trees or bushes to ensure they aren't blocking any windows or the exterior of the home.
3. Remove wallpaper. Wallpaper and borders can be a nuisance to remove so you might want to take these personal decor touches down before you list the home. Neutralize the homes in subtle colors that will appeal to the most buyers and allow buyers to better visualize their personal decor moving in.
4. Don't keep an empty home empty. Buyers can struggle in picturing themselves moving in if a home is left empty. Vacant homes can feel cold and rooms can look smaller than they really are. That's why O'Ryan reminds us why builders spend thousands of dollars staging model homes. If your listing is vacant, consider staging it to bring in furniture and accessories to help define the various rooms functions.
Tuesday, September 27, 2011
The Brutal Facfs
Brutal facts are not always pretty or inviting, but they are reality. Initially brutal news may take you back and even make you feel beat up. But take heart, it is good for bad news to travel fast. You are better off to hear negative news first, before the information becomes filtered through other perspectives, or the facts fester and become worse.
Brutal facts that are not given attention move from an inflamed infection to relational and organizational gangrene. Inevitably there follows an amputation; someone or something has be severed. This extreme action could have been avoided if the brutal facts had been revealed, recognized and acted upon early. Brutal facts are our friends; so do not dismiss the messenger because the message is bad, he or she is just the delivery person.
The wise receiver of brutal facts will extract the “chaff and keep the wheat”.
A brutal fact may relate to your finances and/or your property situation. What is the reality of your cash situation? Take care of your " financial business" or it will take care of you by tumbling down around you.
So where can we find these brutal facts? Your trusted advidsor, Your spouse, parent or friend that has some "horse sense" is a good starting point. They have a vested interest in you, so normally their perception of the facts is fairly accurate. Listen with an ear to learn, but if you become defensive or argumentative they will eventually shut down. Because they care, is why they want you to be aware.
Why not change on your own terms rather than being forced to change on another’s? This is the essence of brutal facts—there are some things that need to change. You, the work culture, and your family are always in flux, so use this as an opportunity to move from mediocrity to excellence. Embrace the brutal facts, learn from them and become better.
Do you currently have concerns that need to seriously consider? Askl youself, "How do I need to change"? "What trusted advisor can assit with making the right" decision.
Brutal facts that are not given attention move from an inflamed infection to relational and organizational gangrene. Inevitably there follows an amputation; someone or something has be severed. This extreme action could have been avoided if the brutal facts had been revealed, recognized and acted upon early. Brutal facts are our friends; so do not dismiss the messenger because the message is bad, he or she is just the delivery person.
The wise receiver of brutal facts will extract the “chaff and keep the wheat”.
A brutal fact may relate to your finances and/or your property situation. What is the reality of your cash situation? Take care of your " financial business" or it will take care of you by tumbling down around you.
So where can we find these brutal facts? Your trusted advidsor, Your spouse, parent or friend that has some "horse sense" is a good starting point. They have a vested interest in you, so normally their perception of the facts is fairly accurate. Listen with an ear to learn, but if you become defensive or argumentative they will eventually shut down. Because they care, is why they want you to be aware.
Why not change on your own terms rather than being forced to change on another’s? This is the essence of brutal facts—there are some things that need to change. You, the work culture, and your family are always in flux, so use this as an opportunity to move from mediocrity to excellence. Embrace the brutal facts, learn from them and become better.
Do you currently have concerns that need to seriously consider? Askl youself, "How do I need to change"? "What trusted advisor can assit with making the right" decision.
Wednesday, August 24, 2011
Federal Sales Tax on Your HOME!
LETS VOTE THEM ALL OUT IN 2012! WILL YOU SELL YOUR HOUSE after 2012?
Will you ever sell your house after 2012?
Call your Democratic/Republic Senator's Office to confirm this hidden fact about the ObamaCare regulation.
Did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it? That's $3,800 on a $100,000 home, plus all the other items.
When did this happen?
It's in the health care bill. Just thought you should know.
SALES TAX GOES INTO EFFECT 2013 (Part of HC Bill).
Why 2013?
Could it be that it is coming to light AFTER the 2012 elections?
REAL ESTATE SALES TAX.
So, this is "change you can believe in"?
Under the new health care bill all real estate transactions will be subject to a 3.8%Sales Tax. The bulk of these new taxes don't kick in until 2013 If you sell your $400,000 home, there will be a $15,200 tax.
This bill is set to screw the retiring generation who often downsize their homes.
Does this information make your November and 2012 vote more important?
Oh, you weren't aware this was in the ObamaCare bill? Guess what, you aren't alone.
There are more than a few members of Congress that aren't aware of it either
http://www.gop.gov/blog/10/04/08/obamacare-flatlines-obamacare-taxes-home
Will you ever sell your house after 2012?
Call your Democratic/Republic Senator's Office to confirm this hidden fact about the ObamaCare regulation.
Did you know that if you sell your house after 2012 you will pay a 3.8% sales tax on it? That's $3,800 on a $100,000 home, plus all the other items.
When did this happen?
It's in the health care bill. Just thought you should know.
SALES TAX GOES INTO EFFECT 2013 (Part of HC Bill).
Why 2013?
Could it be that it is coming to light AFTER the 2012 elections?
REAL ESTATE SALES TAX.
So, this is "change you can believe in"?
Under the new health care bill all real estate transactions will be subject to a 3.8%Sales Tax. The bulk of these new taxes don't kick in until 2013 If you sell your $400,000 home, there will be a $15,200 tax.
This bill is set to screw the retiring generation who often downsize their homes.
Does this information make your November and 2012 vote more important?
Oh, you weren't aware this was in the ObamaCare bill? Guess what, you aren't alone.
There are more than a few members of Congress that aren't aware of it either
http://www.gop.gov/blog/10/04/08/obamacare-flatlines-obamacare-taxes-home
Wednesday, August 17, 2011
5 Questions to Ask Before Buying a home!!
In most parts of the country, the housing market is good (or great!) for buyers right now - interest rates are bizarrely low, lots of inventory means lots to choose from, and the cost of renting has increased in a lot of markets. But just because the market’s good doesn’t mean it’s the right time for everyone to buy.
The decision whether to buy a home is a very personal one; you need to carefully examine your own situation to determine whether it’s right for you.
So, what are the questions you need to answer in deciding whether you’re ready to buy? Here are some of the big ones:
1. Do I have enough money for a down payment?
And how much, exactly, is “enough?” Today’s minimum down payment requirements range from 3.5 percent on an FHA loan to 10 or even 20 percent for conventional loans. That means coming up with anywhere from $7,000 to $40,000 on a typical $200,000 house. While there are still programs that can give you a down payment assist (see last week’s post, 5 Insider Secrets for Coming Up With Cash for Down Payment), much of the heavy lifting here will need to come from you - in the form of saving up your hard earned cash. And keep in mind there are also closing costs you’ll probably have to pay in cash, which can run as high as 3-4% of your total purchase price.
Talk with a real estate pro and a mortgage broker in your areas to start wrapping your head around how much “cash to close” (i.e., down payment + closing costs) will run, approximately, on a local property that would meet your needs. Can your savings cover this? If not, where will you get the money - what’s your plan for coming up with it?
Putting down as much as you can a) makes you more attractive to lenders, so you might qualify you for better loan terms and b) gives you additional purchasing power, either decreasing your monthly mortgage payment or increasing your purchase price limit for a home.
2. Can I handle the not-so-glamorous aspects of homeownership?
If you can’t even fathom the prospect of having a home maintenance crisis without having a landlord to call to fix it, you might want to reconsider homeownership - or at the very least, buy a lower maintenance condo or townhome in great condition, and make sure you get a home warranty! As a home owner, after all, you essentially are your own landlord. Pipe bursts in the middle of the night? Guess who’ll be up fixing it or calling (and paying) the plumber? (Hint: you.)
There are also some less-than-glamorous bills you’ll have to deal with in your new role as a homeowner that you never laid eyes on as a renter: property taxes and hazard insurance, to name two. When you go from renter to owner, you also need to account for the cost of appliances and maintaining the property’s roof, windows, and landscaping, among other things.
3. How long do I intend to stay in the house?
If you think you might move out of the area next year, then you really shouldn’t be thinking about buying a house (unless of course, you want to play landlord and rent it out after you leave - a prospect which requires its own risk/rewards analysis). For your home purchase to pencil out as a good deal, financially, you’ll shouldn’t buy unless you’re comfortable staying in the house at least 5-7 years - even longer, if you’re buying a home in a foreclosure hot spot or an area with a sluggish job market.. This gives you some time to build up equity and make up for the costs of buying, selling and moving.
4. Are my job and finances stable?
Maybe you just went through a major career change and are in the process of working your way back up from the top. Or maybe you work in a field that has been hit really hard by layoffs and cutbacks. The worst case scenario is to find yourself in a spot with mortgage payment you have no way to make, when you could have avoided that by seeing the writing on the wall. If you feel like there’s a real chance you could lose your job or income tomorrow, you may want to hold off on buying a house - that has the added bonus of giving you the geographic freedom to move, if needed, to get a new job.
Is there really such a thing as 100 percent job security in today’s economy? Probably not. But the best practice is to be confident that your finances could handle a temporary loss of income and still make your mortgage payments, before you buy. One way to do this is to have enough money in the bank to cover 4-6 months’ worth of living expenses, calculating them to include your mortgage payment - before you deem yourself ready to buy. That way, even if you lose your job with no warning at all, you’ll at least have a reasonable window of time to find a new one without digging yourself into a hole - or worse, losing your home altogether.
5. What are my real reasons for buying?
Buying a home is a long-term commitment that will have massive impacts on your lifestyle, your family and your finances. In other words, don’t do it unless you’re really sure you want to and are ready for the lifestyle change - don’t let someone else talk you into it. Worthy reasons renters with homeowning readiness give for their decision to buy include some or all of the following:
•You want to build equity instead of paying a landlord. Fact is, if you get a fixed rate mortgage and make the payments for the full term of the loan, you'll eventually pay it off. That's not possible when you're renting.
•You want a place to call your own, where you can paint a wall purple, add a pottery spinning studio or build your dogs an obstacle course (oops - that's my reason for homeownership!), because it's your prerogative.
•You want the tax advantages of homeownership.
•You want a stable place you and your family can live for as long as you'd like.
Ask yourself these questions, and be honest with your answers. If you really want to buy, but your answers to these questions today don’t weigh in that direction, it doesn’t mean you’ll never own a home. It’s usually just a matter of strategically timing your purchase out a year or two when your savings, your career and your lifestyle are in alignment with the implications of ownership - consider working closely with a real estate broker and a mortgage professional to get an action plan in place and start working that plan.
http://www.trulia.com/blog/taranelson/2011/08/5_questions_to_ask_yourself_before_buying_a_home?ecampaign=cnews201108C&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2011%2F08%2F5_questions_to_ask_yourself_before_buying_a_home
The decision whether to buy a home is a very personal one; you need to carefully examine your own situation to determine whether it’s right for you.
So, what are the questions you need to answer in deciding whether you’re ready to buy? Here are some of the big ones:
1. Do I have enough money for a down payment?
And how much, exactly, is “enough?” Today’s minimum down payment requirements range from 3.5 percent on an FHA loan to 10 or even 20 percent for conventional loans. That means coming up with anywhere from $7,000 to $40,000 on a typical $200,000 house. While there are still programs that can give you a down payment assist (see last week’s post, 5 Insider Secrets for Coming Up With Cash for Down Payment), much of the heavy lifting here will need to come from you - in the form of saving up your hard earned cash. And keep in mind there are also closing costs you’ll probably have to pay in cash, which can run as high as 3-4% of your total purchase price.
Talk with a real estate pro and a mortgage broker in your areas to start wrapping your head around how much “cash to close” (i.e., down payment + closing costs) will run, approximately, on a local property that would meet your needs. Can your savings cover this? If not, where will you get the money - what’s your plan for coming up with it?
Putting down as much as you can a) makes you more attractive to lenders, so you might qualify you for better loan terms and b) gives you additional purchasing power, either decreasing your monthly mortgage payment or increasing your purchase price limit for a home.
2. Can I handle the not-so-glamorous aspects of homeownership?
If you can’t even fathom the prospect of having a home maintenance crisis without having a landlord to call to fix it, you might want to reconsider homeownership - or at the very least, buy a lower maintenance condo or townhome in great condition, and make sure you get a home warranty! As a home owner, after all, you essentially are your own landlord. Pipe bursts in the middle of the night? Guess who’ll be up fixing it or calling (and paying) the plumber? (Hint: you.)
There are also some less-than-glamorous bills you’ll have to deal with in your new role as a homeowner that you never laid eyes on as a renter: property taxes and hazard insurance, to name two. When you go from renter to owner, you also need to account for the cost of appliances and maintaining the property’s roof, windows, and landscaping, among other things.
3. How long do I intend to stay in the house?
If you think you might move out of the area next year, then you really shouldn’t be thinking about buying a house (unless of course, you want to play landlord and rent it out after you leave - a prospect which requires its own risk/rewards analysis). For your home purchase to pencil out as a good deal, financially, you’ll shouldn’t buy unless you’re comfortable staying in the house at least 5-7 years - even longer, if you’re buying a home in a foreclosure hot spot or an area with a sluggish job market.. This gives you some time to build up equity and make up for the costs of buying, selling and moving.
4. Are my job and finances stable?
Maybe you just went through a major career change and are in the process of working your way back up from the top. Or maybe you work in a field that has been hit really hard by layoffs and cutbacks. The worst case scenario is to find yourself in a spot with mortgage payment you have no way to make, when you could have avoided that by seeing the writing on the wall. If you feel like there’s a real chance you could lose your job or income tomorrow, you may want to hold off on buying a house - that has the added bonus of giving you the geographic freedom to move, if needed, to get a new job.
Is there really such a thing as 100 percent job security in today’s economy? Probably not. But the best practice is to be confident that your finances could handle a temporary loss of income and still make your mortgage payments, before you buy. One way to do this is to have enough money in the bank to cover 4-6 months’ worth of living expenses, calculating them to include your mortgage payment - before you deem yourself ready to buy. That way, even if you lose your job with no warning at all, you’ll at least have a reasonable window of time to find a new one without digging yourself into a hole - or worse, losing your home altogether.
5. What are my real reasons for buying?
Buying a home is a long-term commitment that will have massive impacts on your lifestyle, your family and your finances. In other words, don’t do it unless you’re really sure you want to and are ready for the lifestyle change - don’t let someone else talk you into it. Worthy reasons renters with homeowning readiness give for their decision to buy include some or all of the following:
•You want to build equity instead of paying a landlord. Fact is, if you get a fixed rate mortgage and make the payments for the full term of the loan, you'll eventually pay it off. That's not possible when you're renting.
•You want a place to call your own, where you can paint a wall purple, add a pottery spinning studio or build your dogs an obstacle course (oops - that's my reason for homeownership!), because it's your prerogative.
•You want the tax advantages of homeownership.
•You want a stable place you and your family can live for as long as you'd like.
Ask yourself these questions, and be honest with your answers. If you really want to buy, but your answers to these questions today don’t weigh in that direction, it doesn’t mean you’ll never own a home. It’s usually just a matter of strategically timing your purchase out a year or two when your savings, your career and your lifestyle are in alignment with the implications of ownership - consider working closely with a real estate broker and a mortgage professional to get an action plan in place and start working that plan.
http://www.trulia.com/blog/taranelson/2011/08/5_questions_to_ask_yourself_before_buying_a_home?ecampaign=cnews201108C&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2011%2F08%2F5_questions_to_ask_yourself_before_buying_a_home
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