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Gift Amount Increased for 2022

Posted by on Sep 13, 2022 in Uncategorized | 0 comments

The limit for tax free gifts for 2022 is $16,000 and no tax is due to the donor or the donee. There are provisions that would allow gifts higher than this amount providing the total lifetime gifts above the annual exclusion of $12.06 million for 2022 has not been met. The donor and donee can be separate persons so that the aggregate tax-free gift for one-year amounts to more money. For instance, a father and mother can gift $16,000 each to their married son in 2022 and an additional $16,000 each to the daughter-in-law for a total $64,000. If...

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Housing Affordability – Call to ARMs

Posted by on Sep 6, 2022 in Uncategorized | 0 comments

Housing Affordability is negatively affected by both rising home prices and mortgage rates. A 20% increase in nominal home prices and a 2% increase in the 30-year fixed rate mortgage since January have contributed to a 46 point drop in the NAR Housing Affordability Index. The Index was 143 in June 2021 and is 98.5 in June of 2022. The Housing Affordability Index indicates whether a median income family can qualify for a mortgage loan with a 20% down payment and 25% qualifying ratio for monthly housing expenses to gross monthly income. 100...

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Surviving Spouse Sale Period

Posted by on Aug 30, 2022 in Uncategorized | 0 comments

Married couples who own a home as joint tenants with rights of survivorship, the surviving spouse inherits the home, along with their basis, and it does not trigger a taxable event. Unfortunately, the capital gain exclusion is reduced to a single person’s share unless the survivor disposes of the property in the granted time. Married couples, filing jointly, have up to $500,000 of capital gain exclusion on qualifying sales. As a single taxpayer, the survivor is only entitled up to $250,000 exclusion of capital gain. For instance, if the...

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Are prices and rates going to continue to rise?

Posted by on Aug 23, 2022 in Uncategorized | 0 comments

One of the most talked about questions in the real estate market has to do with "Will prices continue to rise now that interest rates have increased dramatically this year?" It is understandable to think that if the Federal Reserve is using interest rate increases to slow consumer demand, that it would also slow homebuyer demand to moderate prices. Unfortunately for would-be homebuyers, it isn’t the case. High inflation, strong economic growth, low unemployment, and increased wage growth have been associated with high home...

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Moving Down in an Up Market

Posted by on Aug 2, 2022 in Uncategorized | 0 comments

Selling and buying a lower priced home in an "Up" market can be to your advantage. The advantage is to maximize the sales price on your existing home and replace it with a less expensive one. Moving down in an "up" market may be to your advantage in multiple ways. It is possible that your present home doesn’t meet your current needs like it once did. Making a move can allow you to "re-balance" the equity in your home to better reach your future goals. The "up" market maximizes the sales price you...

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Showing How Earnest You Are

Posted by on Jul 26, 2022 in Uncategorized | 0 comments

The expression "putting your money where your mouth is" demonstrates a monetary sincerity to what could be empty words. In today’s competitive market where multiple offers are common, sellers want as much assurance as possible that the buyer is sincere and will close on the sale. The seller who accepts a contract expects the buyer to follow through but, in most cases, doesn’t know the buyer either personally or by reputation. The earnest money submitted by the buyer with the contract shows their commitment to the terms...

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Is Your Home Inventory Up To Date?

Posted by on Jul 19, 2022 in Uncategorized | 0 comments

A current inventory of all the personal items in your home is important and even necessary, if you are faced with filing a police report or insurance claim. The homeowner is usually asked if they have a home inventory. If not, the homeowner can reconstruct one to estimate the loss. Imagine you are in this position; would you be able to make an accurate list of your belongings and their value? As an exercise, pick a room of your home, and, while being in another room, list all the belongings and their value. When you’re finished with the...

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Questions to Ask a Mover

Posted by on Jul 5, 2022 in Uncategorized | 0 comments

"I’d wish I’d known that before I picked a mover." Having a checklist of questions might have prevented this issue. This list of questions will provide you with things to discuss when interviewing a moving company. Fees What is the charge for packing? Does it include boxes? If not, what do they cost and will you deliver them? Is there an additional charge to deliver some items to a storage unit? Insurance How is a damage claim handled? What insurance do you provide and is there a cost? Does the insurance cover items...

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Buy Before You Sell

Posted by on Jun 28, 2022 in Uncategorized | 0 comments

A common concern for homeowners is that if they sell their home first, they may not be able to find another home to buy. It is understandable with the low inventories currently available in most markets, but a strong argument can be made to buy your replacement home first. In fact, there are some advisors that would tell you not to sell at all. Instead, keep the home for a rental investment and refinance it to pull out some cash for the down payment and closing costs for the new one. Many homeowners recognize that their home has been an...

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You don’t have to give an arm to get a lower rate

Posted by on Jun 7, 2022 in Uncategorized | 0 comments

Rising interest rates compounded with increasing home prices are causing affordability issues for many buyers. To keep payments low, you won’t have to give an arm, but more buyers are considering getting an ARM, adjustable-rate mortgages. Mortgage rates are near its highest point since 2009. "While housing affordability and inflationary pressures pose challenges for potential buyers, house price growth will continue but is expected to decelerate in the coming months." said Sam Khater, Freddie Mac’s Chief Economist. A...

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