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Published in THE SUNDAY NEWS-HERALD GO “GREEN” FOR SPRING CLEANING PROJECTS BACK TO TOP BACK TO TOP BACK TO TOP GET OUT OF THE RENT TRAP Are you still writing those checks every month to keep a roof over your head, but which don’t gain you any equity? If you are still renting because you think you still need a fortune to get into your own home, you should investigate today’s real estate market. Interest rates are still low, which means very affordable payments, perhaps in the range of your current monthly rent. Qualifying for a loan was never easier, especially since lenders have increased in large numbers and are competing for your business. Even if you couldn’t qualify to buy a home just a few years ago, you may be able to qualify today. Home prices today are relatively stable, so you might be surprised at the number of homes available in your price range. There are a number of government programs and mortgage packages which require small down payments, in three to five percent range—and we haven’t even started talking about the tax advantages! Think about it next time you write a rent check. FREE HELP CAN BE YOURS “Few things in life are free”, right? One thing is still free—the guidance and assistance of a real estate sales professional for home buyers. In the traditional real estate sales transaction, it is the seller who pays the commission that is divided among the various sales professionals involved in the transaction when the home is sold. When you choose a buyer’s broker, you get several free services from the Realtor: 1) Target marketing which gives you quick, precise targeting of homes you want, in a price range you can afford. 2) Loan pre-qualification. This saves you much time and the potential disappointment of finding the perfect house (which you can’t afford). 3) Guidance in obtaining the best mortgage terms. The marketing professional knows htat if there is no financing, there is no purchase. Most Realtors have become quite expert in the mortgage market. Another old saying is “The best things in life are free.” BUYING A HOME OUT OF STATE? People who are moving to another state are usually concerned about how they will be able to monitor the purchase or sale of a home across state lines. Your local Realtor can help you buy or sell property out-of-state. The National Association of Realtors is a nation-wide network of real estate sales professionals, similar to the local Association of Realtors. Almost every Realtor who is a member of the local association is also a member of the national organization. This professional affiliation among Realtors all across the country works to your advantage when you buy or sell out-of-state property. Your Realtor can contact an agency in the area where you want to buy or sell. When this relationship is established, the local Realtor can coordinate arrangements by selecting houses for your consideration and help you strike a deal when you have made a selection. Having a local sales professional to help you work out any problems that may arise is a real Plus. MOVING AND TAXES Even with the changes in tax laws over recent years, you may be able to deduct some of the expenses of a move that is the result of a change in your job. You will probably be able to deduct the costs of your move if your new work location means more than an additional 50-mile commute, if you move within a year of taking the job at the new location, and if you work full-time for at least 39 weeks (the total is 78weeks if you are self-employed). You should keep meticulous records of all of your expenses and consult a tax expert to make sure that you take all the lawful tax deductions allowed by the IRS criteria for expenses related to selling your old home or buying your new one. Also, remember that the Taxpayer Relief Act of 1997, allows married taxpayers to exclude up to $500,000 and singles up to $250,000 in capital gains taxes when selling your home. The IRS publication No. 521 entitled “Tax Information on Moving Expenses” makes good reading before you make a move. TAX REFORM Tax reform has eliminated or phased out many popular tax deductions, but owning a home still offers significant tax benefits. If you are renting, it may be a good time to sit down with a professional Realtor to see how much you can save each year by owning your own home. You save in two ways when you purchase a home. Even though most interest deductions have been phased out, home mortgage interest and state and local property taxes can be deducted. The interest on a home equity loan may also be deductible. Your Realtor can show you how these savings will apply in your situation. You may be pleasantly surprised when you compare the tax savings you will receive as a result of owning your home, and you will build up equity as your home appreciates in value! Also, first-time buyers will see expanded rules for Individual Retirement Accounts (IRA) and 410 (k) plans, allowing penalty-free withdrawals to purchase a home in the Taxpayer Relief Act passed in August, 1997. Consult your tax advisor for your particular circumstance. NEW YEAR’S RESOLUTIONS Resolve to do something that is attainable, something that will add comfort and value to your home. Fix any leaky faucets; upgrade bathroom fixtures like the shower head or toilet with the low-flow type. This will add beauty, style and function to your home. Stop drafts and heat loss by putting weather strip around doors and windows. Check the batteries in your smoke detectors and carbon monoxide detector. Clean and inspect your fire place or wood burning stove, check for gas leaks on all gas appliances and furnaces. Recycle paper, aluminum and plastic. When doing home repairs or new construction, choose environmentally friendly products or repurpose things that you already have. Make a New Year’s resolution to get around to doing these things for your home this year. Depending on the size of the home projects, it just might help you keep last year’s resolution to lose weight and get in shape. BENEFITS OF HOME OWNERSHIP Tax reform has eliminated or phased out many popular tax deductions, but owning a home still offers significant tax benefits. If you are renting, it may be a good time to sit down with a professional Realtor to see how much you can save each year by owning your own home. You save in two ways when you purchase a home. Even though most interest deductions have been phased out, home mortgage interest and state and local property taxes can be deducted. The interest on a home equity loan may also be deductible. Your Realtor can show you how these savings will apply in your situation. You may be pleasantly surprised when you compare the tax savings you will receive as a result of owning your home, and you will build up equity as your home appreciates in value! Also, first-time buyers will see expanded rules for Individual Retirement Accounts (IRA) and 410 (k) plans, allowing penalty-free withdrawals to purchase a home in the Taxpayer Relief Act passed in August, 1997. Consult your tax advisor for your particular circumstance. 2008 HOME TRENDS TO WATCH Take a cue from high-end homes; they showcase the latest in floor plans, appliances and décor. Living spaces like mudrooms and home offices are all the rage; formal living rooms are not. Stick with your style when remodeling, projects should reflect the style of your house. The kitchen is the heart of the home for many families and in addition to food preparation it’s also a place to pay bills and do homework, Today’s kitchens tend to be open and often include cabinets for TVs, computers and small appliances. Eco-friendly materials like bamboo flooring are gaining in popularity. So are Energy Star appliances, windows and lighting products, which increase energy efficiency. Outdoor living spaces are the latest trend in adding a room without adding four walls. Increase technology allows homeowners to remotely arm a home security system, turn appliances on and off, and control thermostats. The colors turn over a new leaf encompassing the natural, the ethereal, the homespun and the restful. THE CLOSING It is week before you are supposed to close on your new home, and you are feeling completely organized about the move. You have arranged for the movers and the transfer of the telephone, electric, water, and gas accounts. Now you plan to take few days off. Good! Remember that closing dates are not set in stone. Lenders, appraisers, title attorneys, credit check services, and anyone else who is involved in the transactions can cause a delay in the closing. If you keep this in mind while you are making your arrangements, you can minimize the possible cost and inconveniences due to the delay. As the closing approaches, your Realtor will stay on top of the situation and keep in touch with everyone involved in the transaction to prevent any unnecessary delays. BACK TO TOP Residential sales agreements usually have clauses referred to as financing contingency's which allow the buyers to declare the contract null and void if they are unable to obtain financing. This may be the most important condition in your contract if you are buying a home, so read the contract carefully before you sign it. Most financing clauses set a time limit of 30 to 45 days for obtaining a firm commitment from a lender. They may set deadlines for applying for a loan, and require the buyers full cooperation in obtaining all the information needed to process your loan. If the loan is not approved by the deadline, it may be necessary to request an extent ion from the sellers or take specific steps to void the contract and get your deposit back. Be sure to not all of the financing deadlines in the contract, apply for your loan as soon as possible, and be diligent about providing the lender with all documents that are requested. BACK TO TOP A few simple precautions can reduce your vulnerability to burglary or vandalism while you are away from home for a few days or for an extended vacation. It is a good idea to make your house appear to be occupied. If you are away overnight, leave a few lights burning. If you are away for an extended time, you should consider buying an automatic timer that will turn your lights on and off at present intervals. Don't let newspapers, mail or other deliveries pile up at you front door. Let your next door neighbors know you will be away and ask them to keep an eye on your house-you can also ask the police to check periodically. Be sure to lock your windows and double lock the doors before you leave. These precautions will contribute to your place of mind and help you relax and enjoy your travels. THE DOMINO EFFECT Timing can sometimes be difficult if you have to sell a home before you can buy another one. Most people need the equity from the sale of their first home for the down payment on the new house. If your present home goes on the market first, you may be concerned that it will sell before you find the one you want to buy. If you find the perfect home before your present home is under contract, the sellers may be reluctant to accept your offer, and you may be to nervous to sign a contract BACK TO TOP Houses that are spotlessly clean and tastefully decorated tend to sell quickly, and for top dollar. There can be substantial savings savings for home buyers who are willing to overlook surface clutter or other cosmetic failings of a house. When you look at a home that needs work, try to imagine it with fresh paint, refinished floors and new carpet. Consider the good things about the house. Would it get more sunlight if the draperies were opened and the windows cleaned? Does the back yard have potential? Try to distinguish between the cosmetic condition of the house and the state of its structure and major systems. Some fixer-uppers need a lot of professional attention from electricians, plumbers and other expensive professionals, while others are true bargains that can be transformed with a little elbow grease, a paint brush, and your imagination. BACK TO TOP Serious house hunting is exciting and exhausting. With the market the way it is and houses priced like they are, it's a great time to go shopping. At the end of the day it is hard to remember which house had the great yard or the new kitchen or the fabulous bath. Some of the houses you toured looked familiar. How can you conserve energy and keep it all straight? The first step is to find a Realtor who knows the area well and will who you only houses that meet your criteria. Next, invest in a folder to keep the flyers of the homes you visit. Note the style and exterior color, as well as something distinctive about the house that will trigger your memory. Make a special note if a house has real possibilities. Jot down important pluses and minuses of each property and share this information with your Realtor. This will help you and your Realtor narrow down the houses so that you can focus on your favorites. SELLING YOUR OWN HOME? READ ON The majority of home sellers indicate that pre-qualifying the prospective buyers was the most difficult part of trying to sell their home. When pre-qualifying didn't occur (and it usually doesn't), the seller accepted an offer from an unqualified buyer, resulting in wasted time, and possibly money. A professional Realtor will automatically pre-qualify potential buyers to make sure they can be taken seriously. Sellers are eager to know what a prospective buyer likes and doesn't like about their home, and most indicated that they had difficulty getting feedback from buyers. Buyers don't want to hurt the sellers' feelings, so they tend to hold back the true reason(s) why the home did not suit them. The problem may be easily remedied if the seller is informed about it but otherwise it could result in a lost sale. BACK TO TOP A professional Realtor can provide you with the names of several mortgage lenders and can help you compare their programs. Some lenders may have great rates, but may have very conservative standards or qualifying customers. Others may be more willing to consider people who are marginally qualified or have less-then-perfect credit histories. Some lenders have local underwriters and can process loans quickly while others may need extra time to process paperwork. The ordinary consumer deals with only a few mortgage lenders over a lifetime, but Realtors deal with many lenders every month. Our expertise can help you match your individual needs to many offerings in this complicated marketplace. BACK TO TOP You Realtor can advise you about how to include an engineering inspection in your offer to purchase and give you the name of inspectors in your area. The purchase of a home is Major investment, and the cost of an inspector is well worth the peace of mind it provides. BACK TO TOP When you have an accepted offer, choose an inspector and the the Realtor will set up an appointment for you to go to the house, Bring a notebook, even questions or concerns that may occur to you as you tour the house, such as cracks in the walls, spots on the ceiling, or noises in the air conditioning system. And remember that no house is perfect. You should come away from the inspection with a good understanding of what you are buying and how much maintenance will cost. BACK TO TOP Be sure to include such things as: providing you new address to the Post Office, you bank, credit card companies, and any magazines to which you subscribe. Let your insurance agent know about the move to ensure that your personal property will be covered at both houses. Call the utility companies ahead of time to arrange for the cut off and turn on dates for gas, electricity, water and telephone service. Put important documents, such as birth certificates, tax returns and home ownership documents together in a safe place as you pack, so that you can locate them easily. It will give you a great sense of satisfaction to check each item on your list off as it is handled. WHAT WE DO! How do real estate agents sell houses? When a professional Realtor is retained to sell a home, the agent will initiate a sequence of activities which has proven effective for selling homes quickly for the maximum market price. The Realtor will do a market analysis by comparing the home with similar homes in the area to establish the asking price. The next step will be to guide the owners in the preparation of their home for showing. A description of the home will be inserted into the local Multiple Listing Service, a centralized computer databank used by most sales professionals to inform Realtors in the area about the home. The agents will contact their buyers who are in the market for a home. 85% of the homes sold today use this method as it is effective and it offers the most exposure for the seller to the marketplace. BUGS There is probably some kinds of small, leggy creature that makes its home with you. Whether they are termites, fleas, roaches, ants, or spiders. It is a good idea to serve them with an eviction notice before you put your home on the market. If home remedies like ionized boric acid don't work, paying a professional exterminator will be money well spent. Most standard sales agreements required that a property be inspected before the closing and treated for termite infestation, if necessary. It is a good idea to check for insect problems as soon as you sign a listing agreement, so that they don't become an issue of contention in the sale. Some insects may not physically damage the house, but may reduce its chances of selling for top dollar. If the buyer has to push back spider webs while touring the house or sees an ant trail, it could seriously undermine a prospective buyer's ability to fully appreciate your house. PAY ATTENTION TO THE DETAILS It is the little things - both positive and negative - that make a big difference to prospective buyers. Before you list your home, go through the house with a careful eye. Fix any loose door knobs, popped screen doors, and loose grout around the tub and shower. A coat of fresh paint can work wonders to dress up a house. Wash the windows, hang a pretty plant from the bathroom skylight and clean out the closets. Arrange the furniture to make the room look larger. If the rooms look cluttered, put your extra furniture into storage. You can brighten up a room by increasing the wattage of the light bulbs. Going the extra mile to showcase your home will pay significant dividends when it is time to show it to buyers. The less imagination people must bring with them when they look at your house, the greater your chances of selling you home quickly and for top dollar. THE
SHIFTING MARKET Many variable can affect the real estate market, it can go from a sellers' to a buyers' market and back again in a short time. In a normal market, price and interest rate are the two most important factors. When interest rates are low, prices may edge up as buyers' purchasing power increases. As the interest rates to up, monthly mortgage payments are increased and this may temporarily eliminate some buyers from the marketplace. In the shift toward a buyers' market, homes will sell if they are in a good location and priced well. Whatever the market conditions, a professional Realtor can quickly sell your home for top dollar. DIAMOND
IN THE ROUGH If you can look beyond the surface, you may see a house with incredible potential that could be transformed by a little "elbow grease," paint, and new carpet. If a house is structurally sound and all the systems are in good condition, it may be only a few cosmetic repairs away from being fantastic! A home that does not show well is usually priced accordingly. If the price doesn't reflect the condition of the house, the seller may be more willing to negotiate than a seller who has made a considerable investment in preparing a home for the market. SETTING
THE ATMOSPHERE TO SELL Before your house is shown, walk through each room with aneye to creating a pleasul\ant ambiancethrough lighting. Accentuate the natural light by keeping curtains open and windows sparkling. Arrange you furniturre to take advantage of the best outdoor view. You may want to install indirect lighting to highlight a vaulted ceiling, draw attention to indoor plants or emlphasize an alcove where fine art is displayed. Dimmer switches can create simple and inexpensive lighting appeal by softening the atmosphere of a room. BACK TO TOP A professional appraiser will choose the appraisal technique that is applicable to the particular property to arrive at tan unbiased oppinion of the value. One technique is to look at comparable homes in the area that have sold for the contractual prices within the last six months. The price of each comparable home is adjusted to reflefct the differences between it and the house being appraised. If there are a number of similar properties that have sold recently, the appraiser's job is easy. It is more complicated to arrive at the apprised value if your home is located in a rural area or a diverse neighborhood. The appraised value will usually be very close to thge sale price. If the appraisal comes in lower, the Realtor may be able to provide the appraisers with additional information on recent sales that will result in increased valuation of the home. BACK TO TOP Your realtor should be your trusted ally. Part of your agent's job is to protect you by screening inquireies about your house, identifying serious buyers and prre-qualifying those who have the resources to make a sound offer. Realtors are trained to handle the transaction professionally and to protect the privacy of your home. WELL-SCHOOLED
DECISION BRING
THE OUTSIDE IN WHAT'S
THE MAGIC NUMBER GIVING
NEW LIFE TO AN OLD LISTING THE
"FIXER-UPPER" THE
REALTOR AS GO-BETWEEN
WHEN THE HOME INSPECTOR MISSES SOMETHING SUNDAY,
December 17, 2006 WHEN
AN AGENT DROPS BY WITH A BUYER It is difficult for an agent or a prospective buyer to deal with a "helpful" seller who wants to make sure that nothing is missed. If the owners follow the Realtor through the house, listening to every word and elaborating on everything it will be difficult for the buyers to envision the house as their own. Buyers to through a process that involves raising objections and working through them with the Realtor. If the owners are present, the buyers may feel inhibited, not wanting to offend them by criticizing their home. The owner may appear overly eager to sell sending unconscious signals that could influence the buyer to present a lower off than they might otherwise have made. ADDING
TO YOUR NEIGHBORS CURB APPEAL This knowledge makes its own case for doing your part to make the neighborhood appealing. The time to take remedial action is before you think about moving if your house is the one with peeling paint, over-grown bushes, rusty bicycles, and cracked sidewalks. The value of your home will be largely determined by the recent selling prices for comparable properties, and neighborhood "eyesores" do not help to keep the values up. Even if you don't feel that you will ever move again, you will enjoy living in a house that is a real source of pride. IS
THERE REALLY ANOTHER BUYER! It is natural to feel some pressure from even the most easy-going Realtor-and some uncertainty about whether to make an offer. If you really like a house, there is always the possibility that someone else will share your enthusiasm for it. Sometimes you can "sleep on it" and it won't matter. Whether the market is lively or sluggish, it is a good idea to assume that another offer is likely to come in. If your heart is set on the property, move as quickly as possible to minimize the possibility of another buyer materializing. If there is a move in your future, I am ready to serve you. Call Barbara Johnson at 734-771-1151 or 734-782-6828 pager or drop by my office at Real Estate Unlimited, Inc., 8258 Allen Road in Allen Park. |
