For the past couple of years I've been blogging at another site and have decided to come back to Blogger.com where I began. For the past year and a half I've been focused on providing information about Foreclosures. I conduct Free Foreclosure Tours each Saturday and hold a Free Foreclosure class once a month at our offices in San Carlos.
I'll need to get a little more familar with Blogger so I can best utilize all its features. Be patient and I promise to write soon.
Wednesday, February 24, 2010
Monday, October 15, 2007
What the Heck is a Short Sale?
That's the title of the cover story on my newsletter this month. This happens when you owe more money on your home than you can sell it for. Not everyone qualifies for a short sale. There is a very specific procedure that must be followed.
For my complete newsletter go to www.mysanmateorealestate.com and click on "Monthly Newsletter." You can opt to have it sent to you monthly or just view it one time.
Thanks.
For my complete newsletter go to www.mysanmateorealestate.com and click on "Monthly Newsletter." You can opt to have it sent to you monthly or just view it one time.
Thanks.
Friday, October 5, 2007
Cost Basis and Your Taxes
When you sell a house, your adjusted cost basis is subtracted from your sales proceeds to determine your capital gain or loss. Basis starts with what you paid for the house. You can add capital improvements to basis, but not repairs or maintenance. However, if you sold a home before May 7, 1997 and deferred the capital gain by buying up into another home, that gain reduces the cost basis in your existing home.
For your primary residence as a single homeowner you can now exclude $250,000 in capital gains and married couples filing jointly can exclude up to $500,000. Any profit over these limits is taxed at the capital gains rate, which tops out at 15 percent.
According to Internal Revenue Service Publication 523, you can add to basis the cost of “additions and other improvements that have a useful life of more than one year.” So if you’ve added a family room, remodeled bathrooms or kitchens, added hardwood floors, or a deck, these all add to basis. Remember however, if you remodeled a kitchen 10 years ago, then decided to remodel it again today, you can’t add the cost of the first remodel since it doesn’t exist anymore. By the way, painting a house is considered maintenance and can’t be added to basis.
Also, when you sell you can deduct commissions, advertising, legal fees and any loan charges paid by the seller. Expenses to spruce up your home for sale such as painting or landscaping can’t be deducted or added to basis. I suggest you review your basis calculations with your accountant before preparing your taxes.
For your primary residence as a single homeowner you can now exclude $250,000 in capital gains and married couples filing jointly can exclude up to $500,000. Any profit over these limits is taxed at the capital gains rate, which tops out at 15 percent.
According to Internal Revenue Service Publication 523, you can add to basis the cost of “additions and other improvements that have a useful life of more than one year.” So if you’ve added a family room, remodeled bathrooms or kitchens, added hardwood floors, or a deck, these all add to basis. Remember however, if you remodeled a kitchen 10 years ago, then decided to remodel it again today, you can’t add the cost of the first remodel since it doesn’t exist anymore. By the way, painting a house is considered maintenance and can’t be added to basis.
Also, when you sell you can deduct commissions, advertising, legal fees and any loan charges paid by the seller. Expenses to spruce up your home for sale such as painting or landscaping can’t be deducted or added to basis. I suggest you review your basis calculations with your accountant before preparing your taxes.
Monday, October 1, 2007
Sellers - Get the Bad News First
If you are putting your home up for sale, should you consider having your own building inspection? The answer is "Yes."
Once a buyer makes an offer and you accept it, you have a contract. One of the most common conditions of that contract is, "offer contingent upon satisfactory building inspection." The buyer is going to have a professional home inspector go through your house to make sure there are not any hidden problems.
The last thing that you want is to have your deal fall through because of an unknown problem uncovered by the buyer’s building inspector. This is especially true if it is a minor problem and could easily have been repaired ahead of time -- if only you had known about it.
When the buyer’s inspector finds a problem, it can throw a monkey wrench into the works. The buyer will ask you to fix the problems found by their inspector – or no deal. If you do not want to fix the problems, they will ask for a reduction in price or a cash credit at closing – or no deal. In some cases, they buyer may even cancel the purchase entirely, not giving you a chance to make any corrections.
If the buyer cancels the purchase, where does that leave you? It leaves you with a house that you will have to put back on the market – a house that has been stigmatized. Future potential buyers and their Realtors will always wonder, "What happened with that first deal?".
Once a buyer makes an offer and you accept it, you have a contract. One of the most common conditions of that contract is, "offer contingent upon satisfactory building inspection." The buyer is going to have a professional home inspector go through your house to make sure there are not any hidden problems.
The last thing that you want is to have your deal fall through because of an unknown problem uncovered by the buyer’s building inspector. This is especially true if it is a minor problem and could easily have been repaired ahead of time -- if only you had known about it.
When the buyer’s inspector finds a problem, it can throw a monkey wrench into the works. The buyer will ask you to fix the problems found by their inspector – or no deal. If you do not want to fix the problems, they will ask for a reduction in price or a cash credit at closing – or no deal. In some cases, they buyer may even cancel the purchase entirely, not giving you a chance to make any corrections.
If the buyer cancels the purchase, where does that leave you? It leaves you with a house that you will have to put back on the market – a house that has been stigmatized. Future potential buyers and their Realtors will always wonder, "What happened with that first deal?".
Saturday, September 15, 2007
It's a Buyer's Market Out There!
That's the title of the cover story on my newsletter this month . Included are tips on making an offer in this type of market.
What kind of financial incentives can you ask for?
How to negotiate winning deals with your lender?
What closing costs can you get waived?
For my complete newsletter go to www.mysanmateorealestate.com and click on "Monthly Newsletter." You can opt to have it sent to you monthly or just view it one time.
Thanks.
What kind of financial incentives can you ask for?
How to negotiate winning deals with your lender?
What closing costs can you get waived?
For my complete newsletter go to www.mysanmateorealestate.com and click on "Monthly Newsletter." You can opt to have it sent to you monthly or just view it one time.
Thanks.
Monday, September 10, 2007
DOWN PAYMENT DILEMMAS
One of the most frequent questions homebuyers ask me is, “How much money do I need for a down payment?” Fortunately, there are some mortgage options available that only require a down payment of 5% or less of the purchase price. But remember the larger the down payment, the less you have to borrow and the less you’ll have to pay in your monthly mortgage payment.
Loans with less than the industry standard of 20% down generally require a mortgage insurance policy to secure the loan. Also keep in mind that you’ll need money for closing costs, moving expenses and possibly, repairs, decorating and landscaping.
Lenders take all this into account when they are deciding the maximum loan amount that you can afford. They are also interested in where you got the money for the down payment. What business is it of theirs? Well, consider how carefully lenders look at your earnings, assets and credit history. They naturally are concerned that if you borrowed the money for your down payment, you may be over-extended. Expect lenders to look with suspicion on recent large deposits to your savings account. Even genuine gifts from family members will probably require documentation, if they allow them at all.
If you’d like a copy of my special report on how to buy a home with little or no down, dial this Toll Free 24-Hour Recorded Information Hotline – 1-800-530-0076 and enter extension #1035. You may have the report faxed or mailed to you.
.
Loans with less than the industry standard of 20% down generally require a mortgage insurance policy to secure the loan. Also keep in mind that you’ll need money for closing costs, moving expenses and possibly, repairs, decorating and landscaping.
Lenders take all this into account when they are deciding the maximum loan amount that you can afford. They are also interested in where you got the money for the down payment. What business is it of theirs? Well, consider how carefully lenders look at your earnings, assets and credit history. They naturally are concerned that if you borrowed the money for your down payment, you may be over-extended. Expect lenders to look with suspicion on recent large deposits to your savings account. Even genuine gifts from family members will probably require documentation, if they allow them at all.
If you’d like a copy of my special report on how to buy a home with little or no down, dial this Toll Free 24-Hour Recorded Information Hotline – 1-800-530-0076 and enter extension #1035. You may have the report faxed or mailed to you.
.
Wednesday, September 5, 2007
It's a Buyer's AND a Seller's Market.
There are a number of Real Estate "gurus" that I monitor - mostly to improve my skills, provide a different perspective and challenge my thinking. One such person is Randy Roussie and today he offered these thoughts regarding today's market. His comments are more national in nature because here in San Mateo County, prices have actually risen on average 2% in the first and second quarters of 2007. Randy says:
It's a Buyer's Market. After 4 years it is finally here - a buyer's market. What does this mean? It means you will pay less for a home - and that's good news for all buyers.
But what about Sellers - is this a good time for homeowners to sell? You bet, and here's why. Let's say you live in a $500,000 home and you are going to move up to a $1,000,000 home. Let's also say the market has decreased 10% over the past year. So your home decreased $50,000 while the home you want to purchase has decreased $100,000. In other words, you save $50,000.
That's why its is good for both sellers and buyers to make selling and buying decisions when the market is in the "buyer's" favor.
It means you will carry less mortgage too. Since yoiu save $50,000, it also means you will need less of a mortgage. Now that's a win-win for sellers and buyers. So don't delay. Now is the BEST TIME to find your next dream home!
Food for thought.
It's a Buyer's Market. After 4 years it is finally here - a buyer's market. What does this mean? It means you will pay less for a home - and that's good news for all buyers.
But what about Sellers - is this a good time for homeowners to sell? You bet, and here's why. Let's say you live in a $500,000 home and you are going to move up to a $1,000,000 home. Let's also say the market has decreased 10% over the past year. So your home decreased $50,000 while the home you want to purchase has decreased $100,000. In other words, you save $50,000.
That's why its is good for both sellers and buyers to make selling and buying decisions when the market is in the "buyer's" favor.
It means you will carry less mortgage too. Since yoiu save $50,000, it also means you will need less of a mortgage. Now that's a win-win for sellers and buyers. So don't delay. Now is the BEST TIME to find your next dream home!
Food for thought.
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