Wednesday, June 6, 2007
Monday, June 4, 2007
MAKING IT STICK!
The Multiple Listing Service is a convenient way to locate most homes for sale, and access to that data has created a buyer who expects a high level of service from real estate professionals.
Nearly 3 out of 4 buyers are searching the Internet for homes. Locating a suitable property has become easier, but the real estate agent shows the property and critiques its value. Their ability to negotiate an accepted Offer To Purchase becomes paramount, especially if the seller is entertaining other offers.
Once the offer is accepted, the agent organizes the steps needed to bring the transaction to a successful close, such as arranging inspections, guiding the mortgage process, tracking contingencies, arranging the closing, ect.
The Internet provides a wide access to real estate data and has improved the buyer’s knowledge, but they still benefit from the experience of a professional. An agent representing the buyer is usually paid from the commission paid by the seller, with no charge to the buyer.
The Multiple Listing Service is a convenient way to locate most homes for sale, and access to that data has created a buyer who expects a high level of service from real estate professionals.
Nearly 3 out of 4 buyers are searching the Internet for homes. Locating a suitable property has become easier, but the real estate agent shows the property and critiques its value. Their ability to negotiate an accepted Offer To Purchase becomes paramount, especially if the seller is entertaining other offers.
Once the offer is accepted, the agent organizes the steps needed to bring the transaction to a successful close, such as arranging inspections, guiding the mortgage process, tracking contingencies, arranging the closing, ect.
The Internet provides a wide access to real estate data and has improved the buyer’s knowledge, but they still benefit from the experience of a professional. An agent representing the buyer is usually paid from the commission paid by the seller, with no charge to the buyer.
IT’S MORE THAN A “SALE”
The label “For Sale By Owner” is a bit misleading. All homes are for sale by owner, since the homeowner holds the title. In most cases, real estate professionals are employed to facilitate the sale, but do much more than just “sell” the home. They represent the seller and market the property.
“ For Sale By Owner” really translates to Unrepresented Seller, and it’s not good to be unrepresented in a competitive industry. Most buyers seek the services of an agent for their expertise. The seller is at a definite disadvantage if not armed with the same representation.
Unrepresented sellers report that the most difficult aspects of going it alone are: pricing correctly: preparing the home effectively: marketing the property: and understanding the paperwork. Unrepresented sellers face more liability issues and lower sales prices than their represented counterparts. If you are considering selling your own home, consult a real estate agent first and let them explain how they can benefit you.
The label “For Sale By Owner” is a bit misleading. All homes are for sale by owner, since the homeowner holds the title. In most cases, real estate professionals are employed to facilitate the sale, but do much more than just “sell” the home. They represent the seller and market the property.
“ For Sale By Owner” really translates to Unrepresented Seller, and it’s not good to be unrepresented in a competitive industry. Most buyers seek the services of an agent for their expertise. The seller is at a definite disadvantage if not armed with the same representation.
Unrepresented sellers report that the most difficult aspects of going it alone are: pricing correctly: preparing the home effectively: marketing the property: and understanding the paperwork. Unrepresented sellers face more liability issues and lower sales prices than their represented counterparts. If you are considering selling your own home, consult a real estate agent first and let them explain how they can benefit you.
JUST DO IT!
Thinking of buying a home, but feel bewildered by conflicting reports about the real estate market? Whether or not real estate is up, down or sideways, most people make their purchase decisions based on lifestyle and need rather than market conditions.
A home is a “durable good,” similar to a washing machine. When you need a new washer, you search for a machine that offers good value and service. You don’t think about whether the price of washers will be going up or down in the coming months or years.
You can have greater peace of mind when your purchase is made out of necessity and not just out of a desire to turn a profit. You get the greatest value out of your home by simply living in it, and as long as you can continue to make mortgage payments, you run little risk of losing on your investment.
Thinking of buying a home, but feel bewildered by conflicting reports about the real estate market? Whether or not real estate is up, down or sideways, most people make their purchase decisions based on lifestyle and need rather than market conditions.
A home is a “durable good,” similar to a washing machine. When you need a new washer, you search for a machine that offers good value and service. You don’t think about whether the price of washers will be going up or down in the coming months or years.
You can have greater peace of mind when your purchase is made out of necessity and not just out of a desire to turn a profit. You get the greatest value out of your home by simply living in it, and as long as you can continue to make mortgage payments, you run little risk of losing on your investment.
Sunday, March 4, 2007
Saturday, February 17, 2007
Capitol Gains Tax
You can avoid capital gains taxes on the sale of your home if it was your primary residence for at least two of the five years prior to its sale. Individuals may qualify for a $250K tax exemption, and married couples up to $500K.
If you've moved into your "forever home," and suddenly get laid off from your job, or need to move unexpectedly, you will not completely lose your exemption even though you couldn't remain in your home for two years.
Even the IRS understands unforeseen circumstances. Under Internal Revenue Code 121, you can get a partial credit for the time you've lived in your home.
Your exemption is based on the number of months that you remained in your principal residence. If you have to sell after 18 months, you will qualify for 18-24ths, or 75% of the total exemption.
The rules may seem complicated, but with the assistance of your tax adviser and a real estate professional, you can maximize your savings and locate your next home with a minimum of aggravation.
If you've moved into your "forever home," and suddenly get laid off from your job, or need to move unexpectedly, you will not completely lose your exemption even though you couldn't remain in your home for two years.
Even the IRS understands unforeseen circumstances. Under Internal Revenue Code 121, you can get a partial credit for the time you've lived in your home.
Your exemption is based on the number of months that you remained in your principal residence. If you have to sell after 18 months, you will qualify for 18-24ths, or 75% of the total exemption.
The rules may seem complicated, but with the assistance of your tax adviser and a real estate professional, you can maximize your savings and locate your next home with a minimum of aggravation.
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