Archive for Real Estate
For Better or Worse
By · November 1, 2011 · CommentsMany people currently believe their children won’t do as well as they have done. That is a drastic change from the previous opinion prior to the current recession. The best thing we can do for our children is to live within our means and not try to “keep up with the Joneses”. Now is the time to spend more time with family and friends developing relationships that a recession can’t take away. Instead of purchasing that new Mercedes or Coach purse put the money towards the children’s college. You could even encourage them to save too.
Having a home is still the American dream but in spite of the reduction in prices people still believe it is much harder to purchase a home today than it was 10 years ago.
So, every day be thankful for what you have, set your personal and family goals and move toward them regardless of what the newspapers or daily news on TV says. You can control your own destiny if you choose.
Pros and Cons of reduced property taxes
By · October 25, 2011 · CommentsDon’t be caught unaware of an increased tax bill you weren’t expecting. While it is great to have your property taxes lowered because the value has diminished you need to be aware of what that means. It does mean your taxes will be less than originally expected but it also means your taxes can increase more than the levels as dictated under Proposition 13. In a nutshell it means that as long as the values are below your original purchase price if the assessor determines the value has gone up the taxes can go up to any amount determined to be the current assessed value until such time it reaches the Prop 13 original purchase level.
So, you need to make sure you are aware of this and if you receive a tax bill that is high you will understand why. Of course, you can always make a call to your local county assessor for an explanation.
In a nutshell, if possible it is wise to save the original property tax amount so you won’t be caught short.
Realtors and Dentists
By · August 5, 2011 · CommentsI know you are probably wondering what Realtors and dentists have in common. I recently broke my tooth and had to see my dentist to get a crown. As I was sitting in the chair I reflected on the relationship I have with my dentist. I have been her patient for over 30 years. As I thought about my relationship with my real estate clients I was thinking about the similarities in her relationship to her patients. While she doesn’t send me items of value or call me from time to time she does let me know she has updated the way she does business to today’s standards. Because of that I feel not only do I benefit from her experience she is utilizing the latest technology in her business as well.
When you interview a Realtor make sure the Realtor not only has experience but uses today’s tools to assist you in obtaining your goal. Remember, your home is the largest investment you will ever make so you want to make sure you are working with someone that understands that investment and is there to make sure your goal is achieved.
Strategy for successful home purchase
By · June 19, 2011 · CommentsAs a buyer there are some things you can do to increase your odds for a successful purchase.
1. Meet with your agent and develop a plan of how to obtain home you want.
2. Be prepared – have your pre-approval letter in place so when you find the home you want you can include that with your offer.
3. The more money you have for a down payment the better you look to a seller a a serious buyer.
4. Depending upon the situation write the best offer you can. Your Realtor should be able to find out various needs of the seller and partner them with your needs.
Once you have a ratified offer position yourself to make sure you are getting what you are paying for. Do this with inspections and careful review of disclosures. If you feel comfortable the home is everything you think it is continue moving forward with the purchase to a successful close of escrow.
Home Mortgage Interest Deduction
By · June 17, 2011 · CommentsIt is no secret the economy is not doing well. As a result all government entities are looking for money as in ways to raise more either through fees or additional taxes. You may want to consider writing your Congress person about the mortgage interest deduction. I have been selling real estate for well over a decade and every year the deductability of the mortgage interest we pay comes up as something the government seriously considers either doing away with completely or severly limiting it.
Below are some facts that can be used as justification for keeping our mortgage interest deductible.
1. 85% of all taxes are paid by homeowners.
2. Every home that is sold generates approx. $6o,000 spend over time for home improvement and related items.
3. A robust housing market is good for the economy leading us out of 6 of the past 8 recessions.
4. 15% of the Gross Domestic Product is housing related.
5. Housing creates jobs in both the private and public sector.
Would you be able to afford your home if the interest you pay to the bank isn’t deductible? What do you think that would do to the price of your home? And, of greater importance who would purchase homes for rentals (where would the other 15% of the people who don’t want to be homeowners live)? It is something to think about. It would only take a minute to email your elected officials. The home you save could be your own.
