Everything Is Not As It Seems!!
Have you ever asked a question, gotten an answer and made all kinds of plans and decisions
based on that one answer.
I'm here to tell you that we've all been there.
In today's society it is so important to ask the right question in order to get the right answer.
An example would be this: What are the interest rates today?
I've learned that the lenders can no longer give you a straight forward answer.
They will usually need to have some questions of their own answered before quoting
a rate:
1.) What is your loan amount?
2.) Do you have sufficient funds to pay closing costs?
3.) What is your credit score?
Why so many questions to simply get an interest rate?
With so many changes in the lending business the banks need to be more aggressive in
seeking a qualified buyer. So many mortgages in the past have gone into foreclosure and many more homeowners are doing short sales. The bank is looking at all the risk factors with
you as a buyer. for instance if you have a high credit score i.e. 740 you are a lesser risk
and therefore you may receive credit toward a lesser interest rate.
If you do not have enough money to pay all the closing cost but can afford a higher payment
and have a good credit score you may choose to pay a little higher interest rate and pay less
money out of pocket for closing closing costs.
If you are confused all I can say is try to work with a credible mortgage lender and make sure your real estate knows something about mortgages.
If is far more important to surround yourself with knowledgeable people than to be an expert in all things.
Tuesday, February 15, 2011
Tuesday, February 8, 2011
Poised To Expansion
If anyone read the Minnepolis Tribune on Saturday you have read that Ron Peltier, the CEO of Home Services of America parent company of Edina Realty and other real estate companies in 20 States is in the acquiring mode. There are no clear signs yet that the real estate market is
strengthening, however according to Mr. Peltier the time is coming to acquire other companies across the nation. Edina Realty is our local company and had over 33 billion in sales in it's Edina
Realty Region in 2010. When someone like Warren Buffett is at the helm you can't help but to be optimistic about the outcome. You and I have no idea of the process that these large investors
go through before they make a decision. I for one am going to trust their process.
I truely believe that we are close to the bottom and will be there really soon.
Irregardless, once at the bottom all indications are that we will remain at this leveled off stage for quite some time.
The bottom line is that if you are thinking that the market will come back and you will recover your losses in a couple of years you may want to re-think this. With the job market, the national debt and trouble overseas it will be a long time before we see any real appreciation.
If Kari or I can help you in your present housing situation a phone call is all it takes.
Real Estate is our business and we have the experience to help you.
Call us at 651-353-9838 or 651-470-0709
strengthening, however according to Mr. Peltier the time is coming to acquire other companies across the nation. Edina Realty is our local company and had over 33 billion in sales in it's Edina
Realty Region in 2010. When someone like Warren Buffett is at the helm you can't help but to be optimistic about the outcome. You and I have no idea of the process that these large investors
go through before they make a decision. I for one am going to trust their process.
I truely believe that we are close to the bottom and will be there really soon.
Irregardless, once at the bottom all indications are that we will remain at this leveled off stage for quite some time.
The bottom line is that if you are thinking that the market will come back and you will recover your losses in a couple of years you may want to re-think this. With the job market, the national debt and trouble overseas it will be a long time before we see any real appreciation.
If Kari or I can help you in your present housing situation a phone call is all it takes.
Real Estate is our business and we have the experience to help you.
Call us at 651-353-9838 or 651-470-0709
Wednesday, February 2, 2011
Hastings Real Estate
January has been unusually busy as far as inquiries in buying houses. The buyers have lots of properties they can look at and the are!
In this market many buyers think they can look at a foreclosure property and still offer
10 to 20% less than asking. I'm here to tell you that if indeed the property is bank owned and it has just come on the market you will not be able to buy at that much of a reduced price.
The bank has had an appraisal and priced the property within the market range of that appraisal. Many of these homes need new roofs, wiring and/or other fix-up items. This has been taken into consideration already.
The only time you could buy at such a reduction is after the property has been on for quite some time, the bank has probably received offers that are considerably lower than asking and they are now ready to concede to the lower value. If a property appears to be a bargain to you when you look at it, make a reasonable offer and count your blessings.
You can spend many hours looking for a steal, wasting precious time (interest rates could go up or values could start to rise) and have nothing.
There is a difference between and deal on a property and stealing a property.
You choose, but I can guarantee you will not steal very many properties.
Prices have not been this low in many many years. We will soon be on the bottom and prices will
eventually go up. If you buy at the bottom you are a winner!
In this market many buyers think they can look at a foreclosure property and still offer
10 to 20% less than asking. I'm here to tell you that if indeed the property is bank owned and it has just come on the market you will not be able to buy at that much of a reduced price.
The bank has had an appraisal and priced the property within the market range of that appraisal. Many of these homes need new roofs, wiring and/or other fix-up items. This has been taken into consideration already.
The only time you could buy at such a reduction is after the property has been on for quite some time, the bank has probably received offers that are considerably lower than asking and they are now ready to concede to the lower value. If a property appears to be a bargain to you when you look at it, make a reasonable offer and count your blessings.
You can spend many hours looking for a steal, wasting precious time (interest rates could go up or values could start to rise) and have nothing.
There is a difference between and deal on a property and stealing a property.
You choose, but I can guarantee you will not steal very many properties.
Prices have not been this low in many many years. We will soon be on the bottom and prices will
eventually go up. If you buy at the bottom you are a winner!
Monday, January 24, 2011
A Fresh Start!
This past year has been a blur in trying to figure out where and how to get information to you. So with that said, we are activiating our "Fresh Start". We have great intentions of being more up to date on our blog. It has been a challenging year of short sales and forclosures. Everyday is a new day with new information and challenges and we are here to keep you up to date and post new info as it comes to us.
So here it goes, a GREAT article from Twin Cities Business Blog for our fresh start!
01/11/2011
Forbes: Twin Cities Among Best Job Markets in U.S.
With roughly three job seekers per opening, the area’s employment is expected to recover fully by mid-2011.
The Minneapolis-St. Paul metro area has been named one of the nation’s top job markets, according to a report released by Forbes. The metro area placed fourth in the rankings, which were released last week—trailing only Washington, D.C.; Boston; and Austin, Texas.
According to Forbes, the Twin Cities’ employment is expected to recover fully by mid-2011, far earlier than a national recovery, as found by a recent Moody’s Economy.com analysis of the region.
Job growth is mostly expected in manufacturing and professional services like accounting. The Mall of America, a retail and tourist destination that is expanding, would also contribute to job growth in the region, according to the magazine.
Forbes reported that there are roughly three job seekers per advertised opening in the Twin Cities. The metro area’s unemployment rate is currently at 6.5 percent, whereas the national average is at 9.4 percent. Statewide jobless rate sits at 7.1 percent.
Topping Forbes’ list is the nation’s capital, with roughly one advertised job opening for every unemployed worker in the region, which includes parts of Maryland and Virginia.
Boston and Austin follow closely with job seekers per opening rates of 2.1 and 2.39, respectively. Las Vegas was the worst job market in the nation, with more than eight unemployed workers for every job opportunity posted online. Most of California and Florida’s major cities were close behind.
Forbes compiled its 2011 lists of America’s Best and Worst Job Markets with metro unemployment data from the U.S. Bureau of Labor Statistics, and job site Juju.com’s monthly Job Search Difficulty Index for major cities. Research firm Moody’s provided additional analysis for the trends in each labor market.
—Nataleeya Boss
So here it goes, a GREAT article from Twin Cities Business Blog for our fresh start!
01/11/2011
Forbes: Twin Cities Among Best Job Markets in U.S.
With roughly three job seekers per opening, the area’s employment is expected to recover fully by mid-2011.
The Minneapolis-St. Paul metro area has been named one of the nation’s top job markets, according to a report released by Forbes. The metro area placed fourth in the rankings, which were released last week—trailing only Washington, D.C.; Boston; and Austin, Texas.
According to Forbes, the Twin Cities’ employment is expected to recover fully by mid-2011, far earlier than a national recovery, as found by a recent Moody’s Economy.com analysis of the region.
Job growth is mostly expected in manufacturing and professional services like accounting. The Mall of America, a retail and tourist destination that is expanding, would also contribute to job growth in the region, according to the magazine.
Forbes reported that there are roughly three job seekers per advertised opening in the Twin Cities. The metro area’s unemployment rate is currently at 6.5 percent, whereas the national average is at 9.4 percent. Statewide jobless rate sits at 7.1 percent.
Topping Forbes’ list is the nation’s capital, with roughly one advertised job opening for every unemployed worker in the region, which includes parts of Maryland and Virginia.
Boston and Austin follow closely with job seekers per opening rates of 2.1 and 2.39, respectively. Las Vegas was the worst job market in the nation, with more than eight unemployed workers for every job opportunity posted online. Most of California and Florida’s major cities were close behind.
Forbes compiled its 2011 lists of America’s Best and Worst Job Markets with metro unemployment data from the U.S. Bureau of Labor Statistics, and job site Juju.com’s monthly Job Search Difficulty Index for major cities. Research firm Moody’s provided additional analysis for the trends in each labor market.
—Nataleeya Boss
Monday, June 22, 2009
Wow! It's been too long!
Well what can I say? It has been one heck of a road in the Real Estate Market lately. We can barely keep up with all the activity. I guess I put the blog on hold for awhile. With all the extra work going into every home purchase it is keeping us so busy. I believe now more that ever buyers need to be choosy on their agent. It's not just about selling the home it is more about Closing it. If you do not have an experienced agent to get the deal closed you are no better off that just listing your home. Lucky I have a partner that has been in the business 34 years and know all aspects of the job. It is a new problem everyday in this trying market but I have the Best of the best on my team!!! Now on to some fun! We took some very appreciated time off last week and it definately paid off! Everyone needed a little breather. So I decided to post a bit of the fun!
Monday, April 6, 2009
Happy Easter!
Just wanted to wish everyone a Happy Easter. As things have been picking up lately with the new tax credit in effect, my time at the computer to update has become more limited. I figured that I would try to be ahead of the game just in case.
In the Real Estate world we never know when there will be a extra minute. This of course is a good thing with the economy lately. Things are sure hoppin lately, our office alone sold 19 homes last month and listed 26 homes. There are many deals out there right now, and so many financing options to help. If you know anyone that is on the fence about buying, please tell them to give us a call. We would love to sit down with them and explain all the benefits of buying in this market.
Tuesday, March 3, 2009
Way too long!
Well is sure has been awhile since posting on the blog. It seems that the economy is getting the best of us and our time. We are definitely selling but it is getting more time consuming every day. There are so many deals out there to be had as long as you have patience. Banks seem to be getting a little better at trying to work with the buyers. They just happen to be so busy that it just takes time a patience. The stimulus plan sure is helping the first time buyers out there. You now can get up to an $8,000 tax credit. The basics of this are:
1. What is the Tax Credit?
The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.
2. Who is eligible?
Only first-time home buyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.
3. How does a tax credit work?
Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due. ($9,500 - $8000 = $1500)
4. Is there an income restriction?
Yes. The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return. Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000. Married couples who file a Joint return may have income of no more than $150,000.
5. Do I have to repay the 2009 tax credit?
NO. There is no repayment for 2009 tax credits.
YES. The $7500 credit in 2008 was more like an interest-free loan. All eligible purchasers who claimed the 2008 credit will still be required to repay it over 15 years, starting with their 2010 tax return.
6. So I can’t use the credit amount as part of my down payment?
No. Congress tried hard to devise a mechanism that would make the funds available for closing costs, but found that pre-funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction.
7. I haven’t even filed my 2008 tax return yet. If I buy in 2009, do I have to wait until next year to get the benefit of the credit?
You’ll have a helpful choice that might speed up the process. Eligible home buyers who make their purchase between January 1, 2009 and December 1, 2009 can treat the purchase as if it had occurred on December 31, 2008. Thus, they can claim the credit on their 2008 tax return that is due on April 15, 2009. They actually have three filing options.
• If they purchase between January 1, 2009 and April 15, 2009, they can claim the $8000 credit on the 2008 return due on April 15.
• They can extend their 2008 income-tax filing until as late as October 15, 2009. (The IRS grants automatic extensions, but the taxpayer must file for the extension. See www.irs.gov for instructions on how to obtain an extension.)
• If they have filed their 2008 return before they purchase the home, they may file an amended 2008 tax return on Form 1040X. (Form 1040X is available at www.irs.gov)
Of course, 2009 purchasers will always have the option of claiming the credit for the 2009 purchase on their 2009 return. Their 2009 tax return is due on April 15, 2010.
8. I know there is no repayment requirement for the $8000 credit. Will I ever have to repay any of the credit back to the government?
One situation does require a recapture payment back to the government. If you claim the credit but then sell the property within 3 years of the date of purchase, you are required to pay back the full amount of any credit, including any refund you received from it. A few exceptions apply. (See below, #24). Note that this same 3-year recapture rule applies, as well, to the $7500 credit available for 2008. This provision is designed as an anti-flipping rule.
1. What is the Tax Credit?
The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.
2. Who is eligible?
Only first-time home buyers are eligible. A person is considered a first-time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.
3. How does a tax credit work?
Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due. ($9,500 - $8000 = $1500)
4. Is there an income restriction?
Yes. The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return. Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000. Married couples who file a Joint return may have income of no more than $150,000.
5. Do I have to repay the 2009 tax credit?
NO. There is no repayment for 2009 tax credits.
YES. The $7500 credit in 2008 was more like an interest-free loan. All eligible purchasers who claimed the 2008 credit will still be required to repay it over 15 years, starting with their 2010 tax return.
6. So I can’t use the credit amount as part of my down payment?
No. Congress tried hard to devise a mechanism that would make the funds available for closing costs, but found that pre-funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction.
7. I haven’t even filed my 2008 tax return yet. If I buy in 2009, do I have to wait until next year to get the benefit of the credit?
You’ll have a helpful choice that might speed up the process. Eligible home buyers who make their purchase between January 1, 2009 and December 1, 2009 can treat the purchase as if it had occurred on December 31, 2008. Thus, they can claim the credit on their 2008 tax return that is due on April 15, 2009. They actually have three filing options.
• If they purchase between January 1, 2009 and April 15, 2009, they can claim the $8000 credit on the 2008 return due on April 15.
• They can extend their 2008 income-tax filing until as late as October 15, 2009. (The IRS grants automatic extensions, but the taxpayer must file for the extension. See www.irs.gov for instructions on how to obtain an extension.)
• If they have filed their 2008 return before they purchase the home, they may file an amended 2008 tax return on Form 1040X. (Form 1040X is available at www.irs.gov)
Of course, 2009 purchasers will always have the option of claiming the credit for the 2009 purchase on their 2009 return. Their 2009 tax return is due on April 15, 2010.
8. I know there is no repayment requirement for the $8000 credit. Will I ever have to repay any of the credit back to the government?
One situation does require a recapture payment back to the government. If you claim the credit but then sell the property within 3 years of the date of purchase, you are required to pay back the full amount of any credit, including any refund you received from it. A few exceptions apply. (See below, #24). Note that this same 3-year recapture rule applies, as well, to the $7500 credit available for 2008. This provision is designed as an anti-flipping rule.
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