If you are selling your house, you may have to jump through a few hoops between the time you and the buyer reach an agreement and the time the money and deed change hands. The structural inspector usually finds a few things that need to be repaired or replaced, and the termite inspection may reveal the presence of unwanted pests. Most buyers will also have a list of items that they want the seller to fix.
The ideal is to have your home as perfect condition as possible in time for the walk-through inspection prior to closing. If you have agreed to complete repairs on your home, it is a good idea to get an early start on the work so there will be plenty of time to correct any "surprises" that may be found. Call several companies to get competitive bids for the work that needs to be done or ask your real estate agent for recommendations.
Presenting the buyers with a clean, well-maintained home will make the process a lot easier for them, especially if they get a case of last-minute jitters.
Tuesday, December 28, 2010
Monday, December 13, 2010
Lending on Real Estate has changed
As a result of the bursting housing bubble, financial industry meltdown and current foreclosure disasters, lenders have returned to a far more conservative approach to mortgage lending. We are already seeing mortgage lenders requiring larger down payments of 20 percent or more. Credit scores in the 600s are no longer enough to qualify for favorable loans. Loan officers are rigidly enforcing rules on documentation of employment, assets and income. Lenders' underwriters are applying the traditional mortgage debt-to-income ratios of 28/36. What this means is that no more than 28 percent of your gross income should be spent on your mortgage principal, interest, taxes, insurance (known as PITI) and condo or homeowners' association fees if applicable. No more than 36 percent of your gross income should be spent on PITI plus all other debt, including car payments, student loans and the like.
If your debt-to-income ratios do not work for a particular home, and you cannot afford to increase your down payment, you will not qualify to buy that home.
Anyone facing a real estate decision today should carefully analyze their buy/sell/refinance decisions, keeping in mind the possible impact of these proposed changes on the deduction of mortgage interest and real property taxes and the capital gains treatment on any future appreciation. There are many online mortgage calculators that can assist you in determining how much you can really afford.
If your debt-to-income ratios do not work for a particular home, and you cannot afford to increase your down payment, you will not qualify to buy that home.
Anyone facing a real estate decision today should carefully analyze their buy/sell/refinance decisions, keeping in mind the possible impact of these proposed changes on the deduction of mortgage interest and real property taxes and the capital gains treatment on any future appreciation. There are many online mortgage calculators that can assist you in determining how much you can really afford.
Tuesday, November 30, 2010
Real Estate Tip if you are self employed
There's no question that it could be more difficult for you to get a mortgage loan if you are a free lance viola player than if you are a government accountant. Traditionally, lenders have been more cautious when evaluating loan applications of buyers who are self-employed than people who work for a regular salary.
However, if you are self-employed, there is no reason for you to shy away from applying for a home mortgage loan, especially if your earnings have been in the same field for at least two years. It is a good idea to meet with one or more loan officers before you begin your search. They will probably want to analyze your tax returns for the past 2 or 3 years, keeping in mind that many self employed people can look impoverished on paper, since you can write off some expenses that salaried individuals can not. Try to get pre-approval from the lender, and ask for a letter stating that you have pre-qualified for a loan which your real estate agent can attach to any offer you submit on a home. This will make you more attractive to the sellers.
However, if you are self-employed, there is no reason for you to shy away from applying for a home mortgage loan, especially if your earnings have been in the same field for at least two years. It is a good idea to meet with one or more loan officers before you begin your search. They will probably want to analyze your tax returns for the past 2 or 3 years, keeping in mind that many self employed people can look impoverished on paper, since you can write off some expenses that salaried individuals can not. Try to get pre-approval from the lender, and ask for a letter stating that you have pre-qualified for a loan which your real estate agent can attach to any offer you submit on a home. This will make you more attractive to the sellers.
Wednesday, November 17, 2010
Sellers want communication
Sellers want communication. Most agents think the only thing homeowners want when they list with an agent is to sell their house. Of course this is important, but from the time they list with you to the time it sells, the No. 1 thing they want is communication. A frequent complaint about agents is that they list homes and are never heard from again. So keep in touch with the seller through various means, such as phone calls, e-mails, notes, and face-to-face meetings.
Wednesday, November 3, 2010
Positive News is good.
The existing-home sales news was good, with sales up a strong 10 percent. That’s the second straight increase since the big, expected drop in July, right after the home buyer tax credit ended.
Of course, because of that big July drop, the market is digging itself out of a pretty big hole, so the two consecutive gains represent just the start of a long-term rebuilding. But the figures are encouraging, because they demonstrate that the market is capable of moving ahead without the tax credit acting as a stimulus.
Looking ahead, it’s possible inventories will ease as we head into winter; inventories tend to drop in the winter months, as would-be sellers hold off until the spring to put their homes up for sale and owners who are selling take their homes off the market until after the holiday season.
So, at least in the near-term, we could see some improved inventory, which in turn could help prices, if trends proceed as they have in the past.
Of course, because of that big July drop, the market is digging itself out of a pretty big hole, so the two consecutive gains represent just the start of a long-term rebuilding. But the figures are encouraging, because they demonstrate that the market is capable of moving ahead without the tax credit acting as a stimulus.
Looking ahead, it’s possible inventories will ease as we head into winter; inventories tend to drop in the winter months, as would-be sellers hold off until the spring to put their homes up for sale and owners who are selling take their homes off the market until after the holiday season.
So, at least in the near-term, we could see some improved inventory, which in turn could help prices, if trends proceed as they have in the past.
Sunday, October 24, 2010
Reasons to buy now
Some people define leverage as using other people's money but another way to describe it is when a small down payment controls a large asset by placing a high loan-to-value mortgage on it. There are not many investments that allow leverage but homes certainly do and especially with FHA or VA loans.
Let's assume a couple has the down payment and good credit that would allow them to buy a home. We'll compare some alternatives to see where their best outcome may be.
If a person put $6125 in a certificate of deposit that earned 2% annually, it would be worth $6,762 in five years and the profit would be taxed as ordinary income. If a person could take a little more risk and pick the right stock, the $6,125 might grow to $7,817 and the profit would be taxed at favorable long-term capital gains rates if they held the stock for more than one year.
On the other hand, if the $6,125 were used as a down payment for a $175,000 home that went up in value only 1% per year, the equity would grow to $30,575 in the same five year period of time based on appreciation and amortization. In most cases, the gains on principal residences are excluded from income tax subject to limits.
The difference is dramatic and is one more reason that buyers should be taking advantage of the great selection of homes, the lower prices and incredibly low interest rates to fix their cost of housing for years to come. There may never be a better time to buy a home than now.
Let's assume a couple has the down payment and good credit that would allow them to buy a home. We'll compare some alternatives to see where their best outcome may be.
If a person put $6125 in a certificate of deposit that earned 2% annually, it would be worth $6,762 in five years and the profit would be taxed as ordinary income. If a person could take a little more risk and pick the right stock, the $6,125 might grow to $7,817 and the profit would be taxed at favorable long-term capital gains rates if they held the stock for more than one year.
On the other hand, if the $6,125 were used as a down payment for a $175,000 home that went up in value only 1% per year, the equity would grow to $30,575 in the same five year period of time based on appreciation and amortization. In most cases, the gains on principal residences are excluded from income tax subject to limits.
The difference is dramatic and is one more reason that buyers should be taking advantage of the great selection of homes, the lower prices and incredibly low interest rates to fix their cost of housing for years to come. There may never be a better time to buy a home than now.
Thursday, October 14, 2010
Lowest Rates since 1948.
Freddie Mac’s weekly rate report says a 30-year fix fell to an average of 4.19 percent in the week ending Oct. 14, down from 4.27 percent last week, the lowest since at least 1951 based on FHA data going back to 1948.
Monday, September 27, 2010
Why buy now
Obviously, if a person doesn't have the down payment or credit score, they won't be able to seize this opportunity. If a person is concerned about losing their job, that would be a valid reason for not buying now. If you are planning on relocating in the next year or two, maybe now isn't the time to buy.
On the other hand, if a person doesn't own a home, has good credit and job stability, they should seriously consider capitalizing on this unique combination of opportunities. A qualified real estate professional can explain all of the reasons and even suggest some very interesting financing alternatives.
Top Ten Reasons to Buy a Home NOW
1. Interest rates incredibly low – the rates are hovering at near historic lows. Interest rates play a huge part in the cost of housing together with the price and shouldn't be overlooked. The average mortgage interest rates for the past four decades were: 1970's 8.9%; 1980's 12.7%; 1990's 8.1%; 2000's 6.3%. Most experts agree that they're going to rise this year.
2. Lower Prices - Recent price adjustments have made good values that haven’t been available in some situations for years. Current buyers are able to take advantage of the discounted prices.
3. Selection is good – In a seller's market, buyers sometimes have to accept a home that may not meet their needs completely because of short supply. Inventories in most markets and certain price ranges are higher which allow buyers better choices.
4. Negotiate financing concessions – FHA, VA, and Conventional allow the seller to contribute towards financing concessions for the buyer. The money can be used for buyer's closing costs, pre-paid items or interest rate buy down.
5. Costs for FHA loan going up – Currently, a seller can pay up to 6% of the sales price in financing concessions but the number will be reduced to 3% later this year; the date has not been announced yet. The annual MIP for FHA loans will also probably be going up this year which will increase the monthly payment. Buyers who get in now will pay the lower fees.
6. Interest and property tax deduction – the U.S. is one of the few countries in the world that allow an interest and property tax deduction for homeowner/taxpayers.
7. Source of funds with deductible interest - a homeowner can borrow up to $100,000 above their acquisition debt and deduct the interest regardless of what purpose the money is used. This is a great opportunity to consolidate debt at a lower interest rate and be able to make the interest deductible that otherwise may not have been.
8. Capital gain exclusion – the U.S. allows qualified homeowners to make a profit on their home without having to pay tax on the gain.
9. Borrowing against equity is non-taxable event – taking money out of the equity in your home does not require recognizing capital gains income.
10. The combination of reasons to buy a home may never be stronger than now.
Interest rates are going up; it is just a matter of when. Inventories are starting to be absorbed by current demand. New home construction is down considerably which could lead to higher prices due to not enough annual housing units to keep up with the population. Prices have started to climb in some markets; others will surely follow.
A basic rule of investing is to buy low and sell high. There will be some buyers who take advantage of the current opportunities and will look back and remark how fortunate they were to act when they did. There will be others who look back on these conditions and say "We should have bought then." Hindsight is always 20/20. Evaluating the present and acting takes equally clear vision. The help of a trusted professional can make the difference.
On the other hand, if a person doesn't own a home, has good credit and job stability, they should seriously consider capitalizing on this unique combination of opportunities. A qualified real estate professional can explain all of the reasons and even suggest some very interesting financing alternatives.
Top Ten Reasons to Buy a Home NOW
1. Interest rates incredibly low – the rates are hovering at near historic lows. Interest rates play a huge part in the cost of housing together with the price and shouldn't be overlooked. The average mortgage interest rates for the past four decades were: 1970's 8.9%; 1980's 12.7%; 1990's 8.1%; 2000's 6.3%. Most experts agree that they're going to rise this year.
2. Lower Prices - Recent price adjustments have made good values that haven’t been available in some situations for years. Current buyers are able to take advantage of the discounted prices.
3. Selection is good – In a seller's market, buyers sometimes have to accept a home that may not meet their needs completely because of short supply. Inventories in most markets and certain price ranges are higher which allow buyers better choices.
4. Negotiate financing concessions – FHA, VA, and Conventional allow the seller to contribute towards financing concessions for the buyer. The money can be used for buyer's closing costs, pre-paid items or interest rate buy down.
5. Costs for FHA loan going up – Currently, a seller can pay up to 6% of the sales price in financing concessions but the number will be reduced to 3% later this year; the date has not been announced yet. The annual MIP for FHA loans will also probably be going up this year which will increase the monthly payment. Buyers who get in now will pay the lower fees.
6. Interest and property tax deduction – the U.S. is one of the few countries in the world that allow an interest and property tax deduction for homeowner/taxpayers.
7. Source of funds with deductible interest - a homeowner can borrow up to $100,000 above their acquisition debt and deduct the interest regardless of what purpose the money is used. This is a great opportunity to consolidate debt at a lower interest rate and be able to make the interest deductible that otherwise may not have been.
8. Capital gain exclusion – the U.S. allows qualified homeowners to make a profit on their home without having to pay tax on the gain.
9. Borrowing against equity is non-taxable event – taking money out of the equity in your home does not require recognizing capital gains income.
10. The combination of reasons to buy a home may never be stronger than now.
Interest rates are going up; it is just a matter of when. Inventories are starting to be absorbed by current demand. New home construction is down considerably which could lead to higher prices due to not enough annual housing units to keep up with the population. Prices have started to climb in some markets; others will surely follow.
A basic rule of investing is to buy low and sell high. There will be some buyers who take advantage of the current opportunities and will look back and remark how fortunate they were to act when they did. There will be others who look back on these conditions and say "We should have bought then." Hindsight is always 20/20. Evaluating the present and acting takes equally clear vision. The help of a trusted professional can make the difference.
Tuesday, September 21, 2010
Buy instead of renting
In spite of all the frenzy over selling to first-time buyers this past year, many are still hesitating. While some first-timers aren’t ready to own a home, others would be wise to invest now.
Many first-time buyers want to own a home and can afford to own a home, but they're worried that the market is going to continue to decline and the home won't be worth what they paid for it. However, short-term future value should not matter if the other circumstances are right.
Here are some points from Marte Cliff, a copywriter who specializes in writing for real estate and related industries, that you can use when talking with first-time buyers or when writing prospecting letters.
-First-time buyers aren't investors. They're buying to own a home for themselves to live in and enjoy. If the home falls in market value a little, so what? They aren't planning to sell.
-Money paid for rent buys a house for someone else to own.
-Rents do rise with supply and demand.
-Homes in most areas are now so inexpensive that first-time buyers may be able to make their payments and set aside a few dollars for maintenance for less than their current rent.
-Interest rates are still low, making inexpensive homes even more affordable.
-With interest rates so low, a few extra dollars per month on a 30-year mortgage could mean a first-time buyer could own the house free and clear within 15-20 years.
-Hesitation could cost big dollars. Just a 1% rise in interest rates will add several hundred dollars per year to even a moderately-priced home. And interest rates are expected to rise.
-This tide will turn, and homes will begin appreciating in value. That trend has already begun in some markets and will begin in others as the foreclosures and short sales are sold.
-Over time, first-time buyers will be earning more while their house payment will remain stable.
Once a first-time buyer has determined that they are ready to take on the responsibility of home ownership, their primary concerns should be:
-Their desire to remain in the home for several years.
-Their ability to make the payments and take care of maintenance without having to give up everything else they now enjoy.
Many first-time buyers want to own a home and can afford to own a home, but they're worried that the market is going to continue to decline and the home won't be worth what they paid for it. However, short-term future value should not matter if the other circumstances are right.
Here are some points from Marte Cliff, a copywriter who specializes in writing for real estate and related industries, that you can use when talking with first-time buyers or when writing prospecting letters.
-First-time buyers aren't investors. They're buying to own a home for themselves to live in and enjoy. If the home falls in market value a little, so what? They aren't planning to sell.
-Money paid for rent buys a house for someone else to own.
-Rents do rise with supply and demand.
-Homes in most areas are now so inexpensive that first-time buyers may be able to make their payments and set aside a few dollars for maintenance for less than their current rent.
-Interest rates are still low, making inexpensive homes even more affordable.
-With interest rates so low, a few extra dollars per month on a 30-year mortgage could mean a first-time buyer could own the house free and clear within 15-20 years.
-Hesitation could cost big dollars. Just a 1% rise in interest rates will add several hundred dollars per year to even a moderately-priced home. And interest rates are expected to rise.
-This tide will turn, and homes will begin appreciating in value. That trend has already begun in some markets and will begin in others as the foreclosures and short sales are sold.
-Over time, first-time buyers will be earning more while their house payment will remain stable.
Once a first-time buyer has determined that they are ready to take on the responsibility of home ownership, their primary concerns should be:
-Their desire to remain in the home for several years.
-Their ability to make the payments and take care of maintenance without having to give up everything else they now enjoy.
Friday, September 17, 2010
10 Reasons to buy
Why is now a great time to buy? Here are 10 reasons:
1. You can get a good deal. Prices are down 30 percent on average. They're at a level that makes sense for people's income.
2. Mortgages are cheap. At 4.3 percent on average for a 30-year fixed-rate mortgage, your costs to own are down by a fifth from two years ago.
3. You can save on taxes. When you add up the deductions for mortgage interest and others, the cost of owning can drop below renting for a comparable place.
4. It'll be yours. The one benefit to owning that never changes is that you can paint your walls orange if you want (generally speaking; there might be some community restrictions). How many landlords will let you do that?
5. You can get a better home. In some markets, it's simply the case that the nicest places are for-sale homes and condos.
6. It offers some inflation protection. Historically, appreciation over time outpaces inflation.
7. It's risk capital. If the economy picks up, you stand to benefit from that, even if you're goal is just to have a nice place to live.
8. It's forced savings. A part of your payment each month goes to equity.
9. There is a lot to choose from. There are some 4 million homes available today, about a year's supply. Now's the time to find something you like and get it.
10. Sooner or later the market will clear. The U.S. is expected to grow by another 100 million people in 40 years. They have to live somewhere. Demand will eventually outpace supply.
1. You can get a good deal. Prices are down 30 percent on average. They're at a level that makes sense for people's income.
2. Mortgages are cheap. At 4.3 percent on average for a 30-year fixed-rate mortgage, your costs to own are down by a fifth from two years ago.
3. You can save on taxes. When you add up the deductions for mortgage interest and others, the cost of owning can drop below renting for a comparable place.
4. It'll be yours. The one benefit to owning that never changes is that you can paint your walls orange if you want (generally speaking; there might be some community restrictions). How many landlords will let you do that?
5. You can get a better home. In some markets, it's simply the case that the nicest places are for-sale homes and condos.
6. It offers some inflation protection. Historically, appreciation over time outpaces inflation.
7. It's risk capital. If the economy picks up, you stand to benefit from that, even if you're goal is just to have a nice place to live.
8. It's forced savings. A part of your payment each month goes to equity.
9. There is a lot to choose from. There are some 4 million homes available today, about a year's supply. Now's the time to find something you like and get it.
10. Sooner or later the market will clear. The U.S. is expected to grow by another 100 million people in 40 years. They have to live somewhere. Demand will eventually outpace supply.
Tuesday, September 14, 2010
Standing by YOU
Real estate transactions are complicated and unpredictable. Professional real estate agents are trained to handle the many facets of buying a home. A good agent is an invaluable asset to your venture if you are in the market for a house.
When you find a real estate agent with whom you feel confident, it is good to enter into a committed working relationship with that person. Concentrating your search with one agent will allow that agent to become truly familiar with your needs, desires, and financial capacities.
Maintaining loyalty to the real estate agent of your choice will bear you more fruit than scattering your attention among several agents. An agent who feels your commitment will devote his or her entire energy to finding the right home for you.
I am committed to devote all my energy in helping you, whether it's selling or buying or renting.
When you find a real estate agent with whom you feel confident, it is good to enter into a committed working relationship with that person. Concentrating your search with one agent will allow that agent to become truly familiar with your needs, desires, and financial capacities.
Maintaining loyalty to the real estate agent of your choice will bear you more fruit than scattering your attention among several agents. An agent who feels your commitment will devote his or her entire energy to finding the right home for you.
I am committed to devote all my energy in helping you, whether it's selling or buying or renting.
Friday, September 3, 2010
Five Reasons Why to Buy Now
Don't let the seemingly endless run of bad housing news discourage your potential to own a home. The truth is that the advantages of home ownership have very little to do with investment gains. The best things about owning a home have a lot more to do with personal comfort and satisfaction.
Here are five of them:
· Be your own landlord. The bank can only kick you out if you don’t pay; a landlord can be much less dependable – deciding to sell the property or choosing to live there themselves. I currently know of a couple where the apartment complex is telling tenants to move because they will be renovating.
· Paying the principal is forced savings. Yes, it’s possible that home prices will fall further. It is also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value.
· Fixed-rate mortgages never rise – and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking in real bargains.
· Good schools. Family-sized rentals are harder to come by in areas with excellent public schools.
· Spacious properties in pleasant neighborhoods. Sizable homes in attractive communities are almost always owned – not rented.
I'm always here to answer any of your real estate questions.
Here are five of them:
· Be your own landlord. The bank can only kick you out if you don’t pay; a landlord can be much less dependable – deciding to sell the property or choosing to live there themselves. I currently know of a couple where the apartment complex is telling tenants to move because they will be renovating.
· Paying the principal is forced savings. Yes, it’s possible that home prices will fall further. It is also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value.
· Fixed-rate mortgages never rise – and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking in real bargains.
· Good schools. Family-sized rentals are harder to come by in areas with excellent public schools.
· Spacious properties in pleasant neighborhoods. Sizable homes in attractive communities are almost always owned – not rented.
I'm always here to answer any of your real estate questions.
Wednesday, September 1, 2010
Positive News
With today’s market conditions and the constant media headlines, my role has officially transcended from that of a sales associate to a Real Estate advisers.
People have financial advisers. They have career advisers. And now more than ever, they need Real Estate advisers.
With the collective experience and expertise I have here at Long & Foster, it is my responsibility to identify real estate opportunities for my clients. Potential buyers and sellers are bombarded every day with headlines and reports that would make even the most confident consumer take pause. This is where being the best-trained, best-equipped Real Estate professionals comes into play. I can step in and help consumers cut through the fog and see a clearer picture of what opportunities might exist for them.
We’ve seen a lot of headlines in the last week or so that don’t tell the full picture of our local Real Estate market. So allow me to cut through the fog a bit, and present a side of the story that we won’t always see in mainstream media reports.
Further, I'll assert once again that we were expecting this pull-forward effect as a result of the tax credits. Keep in mind that when the media reports existing home sales figures from the National Association of Realtors, these are closed transactions. The lagging July data we just absorbed is a reflection of contracts that were signed in May and June, right after the expiration of the tax credit, and just made it to the settlement table.
Our area is so different that the rest of the country. Our job market is great.
People have financial advisers. They have career advisers. And now more than ever, they need Real Estate advisers.
With the collective experience and expertise I have here at Long & Foster, it is my responsibility to identify real estate opportunities for my clients. Potential buyers and sellers are bombarded every day with headlines and reports that would make even the most confident consumer take pause. This is where being the best-trained, best-equipped Real Estate professionals comes into play. I can step in and help consumers cut through the fog and see a clearer picture of what opportunities might exist for them.
We’ve seen a lot of headlines in the last week or so that don’t tell the full picture of our local Real Estate market. So allow me to cut through the fog a bit, and present a side of the story that we won’t always see in mainstream media reports.
Further, I'll assert once again that we were expecting this pull-forward effect as a result of the tax credits. Keep in mind that when the media reports existing home sales figures from the National Association of Realtors, these are closed transactions. The lagging July data we just absorbed is a reflection of contracts that were signed in May and June, right after the expiration of the tax credit, and just made it to the settlement table.
Our area is so different that the rest of the country. Our job market is great.
Tuesday, July 20, 2010
Free No Obligation Analysis of your home
A "Listing Presentation" is an industry term for the formal presentation that a real estate agent makes to prospective home sellers, trying to earn their trust and business. Don't list your home without one! I would love the opportunity to make such a presentation to you.
I'll visit your Gaithersburg, Rockville and Germantown area home, and together we will walk through it, considering the positives and negatives (if any!). You will then see exactly how I would propose to sell your home, for as much as the market will bear, and within your time frame. I will tell you where I will advertise your home, both in print and on the web. With the dramatic growth in homebuyer usage of the web, you MUST have a real estate agent that can extensively market your home online!
And you'll find out what your Gaithersburg, Rockville and Germantown area home is worth, because part of my presentation will include a CMA (Comparative Market Analysis) of your home. I'll compare your home to others like it in Gaithersburg, Bethesda, Potomac, North Potomac, Boyds, Rockville and Germantown area that have recently sold, and also to others that are currently for sale. This is a very important way of determining the fair market value of your home.
I make free presentations and prepare CMAs for prospective home sellers every day. I know what puts a big SOLD sign in your front yard.
I'd love the chance to make a presentation for you. It is totally free and without any obligation.
I'll visit your Gaithersburg, Rockville and Germantown area home, and together we will walk through it, considering the positives and negatives (if any!). You will then see exactly how I would propose to sell your home, for as much as the market will bear, and within your time frame. I will tell you where I will advertise your home, both in print and on the web. With the dramatic growth in homebuyer usage of the web, you MUST have a real estate agent that can extensively market your home online!
And you'll find out what your Gaithersburg, Rockville and Germantown area home is worth, because part of my presentation will include a CMA (Comparative Market Analysis) of your home. I'll compare your home to others like it in Gaithersburg, Bethesda, Potomac, North Potomac, Boyds, Rockville and Germantown area that have recently sold, and also to others that are currently for sale. This is a very important way of determining the fair market value of your home.
I make free presentations and prepare CMAs for prospective home sellers every day. I know what puts a big SOLD sign in your front yard.
I'd love the chance to make a presentation for you. It is totally free and without any obligation.
Wednesday, July 14, 2010
Top Earning Towns - Bethesda MD
1. Bethesda, MD
Bethesda, MD
Population: 56,763
Median family income (per year): $172,541
Median home price: $725,000
There's a party for every season in this commuter town: Enjoy concerts and ice sculpting in the winter and Taste of Bethesda in October; schmooze with Pulitzer Prize winning authors at April's literary festival; and enjoy the strains of delta blues, soul and swing in the summer.
Year-round a dozen art galleries and hundreds of diverse restaurants woo suburbanites away from cul-de-sac comforts for days and nights downtown. An abundance of home fashion stores and graduate degrees (one in two residents has one) sets a swanky tone for this small community with big city style.
Published by CNN Money
Bethesda, MD
Population: 56,763
Median family income (per year): $172,541
Median home price: $725,000
There's a party for every season in this commuter town: Enjoy concerts and ice sculpting in the winter and Taste of Bethesda in October; schmooze with Pulitzer Prize winning authors at April's literary festival; and enjoy the strains of delta blues, soul and swing in the summer.
Year-round a dozen art galleries and hundreds of diverse restaurants woo suburbanites away from cul-de-sac comforts for days and nights downtown. An abundance of home fashion stores and graduate degrees (one in two residents has one) sets a swanky tone for this small community with big city style.
Published by CNN Money
Tuesday, July 13, 2010
Listing your home.
You are about to list your home. Since you have lived there for many years, you know that it is not perfect. For example, there might be a leak in the basement that is noticeable only after a heavy rain. Your garage door might stick, and the dishwasher may be prone to work stoppages.
Every home has a few quirks. When it is time to sell your home, you have a choice of either making the necessary repairs or letting the buyers know about the problems. Material defects must be fully disclosed.
Some buyers will order a structural inspection in order to learn exactly what they will be getting. Even if the buyers don't ask for an expert to look at the house, it is the seller's responsibility to disclose any known defects in the property. The seller's agent will provide the disclosure form, wherein the seller may itemize any problems. Sellers may avoid any real estate lawsuits over undisclosed defects by making repairs before the sale or agreeing to a price adjustment during the transaction if defects are discovered.
Every home has a few quirks. When it is time to sell your home, you have a choice of either making the necessary repairs or letting the buyers know about the problems. Material defects must be fully disclosed.
Some buyers will order a structural inspection in order to learn exactly what they will be getting. Even if the buyers don't ask for an expert to look at the house, it is the seller's responsibility to disclose any known defects in the property. The seller's agent will provide the disclosure form, wherein the seller may itemize any problems. Sellers may avoid any real estate lawsuits over undisclosed defects by making repairs before the sale or agreeing to a price adjustment during the transaction if defects are discovered.
Monday, July 12, 2010
Very Few Will Pay 3.8 Percent “Sales Tax” on Homes
Despite misinformation circulating, only top 2 percent of population will be subject to tax
A big piece of legislation like the health care reform act understandably sparks a lot of questions. The massive law, officially known as the Patient Protection and Affordable Care Act, was signed into law by President Obama in March but it will take some time for the American public to understand the nature of the changes.
The law includes provisions about how the government will pay for health care services, one of which is a “sales tax” on real estate. This issue has caused some concern among real estate professionals and consumers alike, and it’s important to understand that, while this tax does exist, it’s unlikely to affect a wide portion of your clients. In fact, The Tax Foundation estimates that only the top-earning two percent of families in this country are likely to be impacted at all.
In short, information is circulating that homeowners will face a 3.8 percent tax on the profit they may earn when selling their homes. The reality is this:
* The 3.8 percent tax on profits from the sale of investments, which includes real estate, applies only to individuals who make more than $200,000 per year, or married couples filing jointly who earn more than $250,000 per year.
* For those who make more than the cut-off, the tax won’t be applied to the first $250,000 in profit from the sale of a personal residence—or $500,000 if a married couple sells their home.
* The exclusion for the first $250,000 in profit (or $500,000 for a married couple) does not, however, apply to vacation homes or rental properties. Those properties—only for those who exceed the income limitations—will be subject to the tax.
* This new rule does not take effect until January 1, 2013.
This blog at Factcheck.org by Brooks Jackson contains a lot of information that clarifies the 3.8 percent real estate tax situation. In it, the author quotes William Ahern of the Tax Foundation: “Some home sales would see a tax increase under this bill, but it would have to be a second home or principal residence generating [a gain of] more than $250,000 ($500,000 for a couple).”
I encourage you to arm yourself with these details as concerns from sellers pop up. There are several resources available to you and your clients, including some clarification from the National Association of Realtors.
Everything we do begins with a real estate transaction and a professional
Sales Associate and we recognize and celebrate that fact.
Courtesy: Jeff Detwiler/Long & Foster
Despite misinformation circulating, only top 2 percent of population will be subject to tax
A big piece of legislation like the health care reform act understandably sparks a lot of questions. The massive law, officially known as the Patient Protection and Affordable Care Act, was signed into law by President Obama in March but it will take some time for the American public to understand the nature of the changes.
The law includes provisions about how the government will pay for health care services, one of which is a “sales tax” on real estate. This issue has caused some concern among real estate professionals and consumers alike, and it’s important to understand that, while this tax does exist, it’s unlikely to affect a wide portion of your clients. In fact, The Tax Foundation estimates that only the top-earning two percent of families in this country are likely to be impacted at all.
In short, information is circulating that homeowners will face a 3.8 percent tax on the profit they may earn when selling their homes. The reality is this:
* The 3.8 percent tax on profits from the sale of investments, which includes real estate, applies only to individuals who make more than $200,000 per year, or married couples filing jointly who earn more than $250,000 per year.
* For those who make more than the cut-off, the tax won’t be applied to the first $250,000 in profit from the sale of a personal residence—or $500,000 if a married couple sells their home.
* The exclusion for the first $250,000 in profit (or $500,000 for a married couple) does not, however, apply to vacation homes or rental properties. Those properties—only for those who exceed the income limitations—will be subject to the tax.
* This new rule does not take effect until January 1, 2013.
This blog at Factcheck.org by Brooks Jackson contains a lot of information that clarifies the 3.8 percent real estate tax situation. In it, the author quotes William Ahern of the Tax Foundation: “Some home sales would see a tax increase under this bill, but it would have to be a second home or principal residence generating [a gain of] more than $250,000 ($500,000 for a couple).”
I encourage you to arm yourself with these details as concerns from sellers pop up. There are several resources available to you and your clients, including some clarification from the National Association of Realtors.
Everything we do begins with a real estate transaction and a professional
Sales Associate and we recognize and celebrate that fact.
Courtesy: Jeff Detwiler/Long & Foster
Monday, May 24, 2010
Existing Home Sales
Existing-home sales, increased 7.6 percent to a seasonally adjusted annual rate of 5.77 million units in April from an upwardly revised 5.36 million in March, and are 22.8 percent higher than the 4.70 million-unit pace in April 2009.
www.pameladubois.com
www.pameladubois.com
Friday, May 7, 2010
Re-insurance and loan guarantees
H.R. 2555: "Homeowners' Defense Act" (Klein, D-FL) would provide for a federal reinsurance and loan guarantee program to help stabilize insurance rates for states that implement mitigation and building code programs and meet stringent credit-risk requirements. Without stable funding alternatives, states must maintain artificially inflated rates to hedge against risk in an increasingly volatile global reinsurance market. http://www.pameladubois.com
Friday, April 2, 2010
The Smell of a Successful Sale
cents and aromas can have a dramatic impact on people’s emotions, otherwise, there wouldn’t be a multi-billion-dollar fragrance industry!
Don’t ignore the power of fragrance when showing your home. Smoke, pet odors, and cooking smells can each dramatically impact how potential buyers feel about your house.
If your potential buyers never form an emotional connection to your home, chances are that they will remain just that – potential buyers.
Don’t allow smoking in your house for weeks leading up to showing it, find a pet-sitter for a few days, and clean, clean, clean!
Once you’ve removed any aromas that might be off-putting and freshened the air in your home, you can actually use scent to your advantage.
Consider doing some baking prior to showings. The scent of fresh apple pie is hard to beat when it comes to creating the atmosphere of a welcoming home!
TIP: In a pinch, a mixture of water, vanilla extract, and brown sugar in an oven on low heat can be used to create the pleasing aroma of fresh baking.
Don’t ignore the power of fragrance when showing your home. Smoke, pet odors, and cooking smells can each dramatically impact how potential buyers feel about your house.
If your potential buyers never form an emotional connection to your home, chances are that they will remain just that – potential buyers.
Don’t allow smoking in your house for weeks leading up to showing it, find a pet-sitter for a few days, and clean, clean, clean!
Once you’ve removed any aromas that might be off-putting and freshened the air in your home, you can actually use scent to your advantage.
Consider doing some baking prior to showings. The scent of fresh apple pie is hard to beat when it comes to creating the atmosphere of a welcoming home!
TIP: In a pinch, a mixture of water, vanilla extract, and brown sugar in an oven on low heat can be used to create the pleasing aroma of fresh baking.
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