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A Sad Story Relived Over and Over

Posted by on Aug 3, 2021 in Uncategorized | 0 comments

Ask any real estate agent and they will tell you a similar sad story. The seller, whose home just hit the market, received an offer which was less than the list price, but felt secure their home would sell quickly and countered for more. For whatever reason, the buyer did not continue to negotiate and moved on. After a week or two and no other offers, the seller instructed the listing agent to contact the buyer’s agent and say that the seller had reconsidered and would now accept their original offer. However, the initial enthusiasm the...

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The Dynamics of Home Equity

Posted by on Jul 27, 2021 in Uncategorized | 0 comments

For many people, their home is their largest asset and their best performing investment. The equity in a home is the difference in what it is worth and what is owed. Two dynamics, appreciation and unpaid balance, work in concert to make homeowner’s equity grow. It can be said that you appreciate the fact that your home is your best financial investment. It is also ironic that the appreciation, the increase in value, is what causes it to be your best financial investment. In a one-year period, the increase in value divided by the...

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Doing Nothing is Costing Something

Posted by on Jul 20, 2021 in Uncategorized | 0 comments

It has been said that more money has been lost due to indecisions than ever was due to making the wrong decisions. Many times, the larger the decision, the more likely procrastination comes into play and doing nothing will cost something. Buying a home is certainly one of the biggest decisions people make. Careful consideration and planning are necessary steps leading to a prudent decision. Considering today’s market that includes a global pandemic, financial volatility, and rapidly rising home prices, it is understandable that many...

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Property Inheritance

Posted by on Jul 13, 2021 in Uncategorized | 0 comments

Stepped-up basis is an incredible benefit to people who inherit property. Not only do they receive the property itself, the basis or cost value of the property becomes the fair market value at the time of the decedent’s death. This avoids recognizing the gain between the decedent’s cost and what it is worth when it is inherited. If a person had purchased a home for $100,000 and 20-years later when they died, it was worth $500,000, there would be a potential gain in the property of $400,000. However, because of a tax provision...

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Less to Own than to Rent

Posted by on Jul 6, 2021 in Uncategorized | 0 comments

The question is “financially speaking, are you better off owning than renting in the long term?” Renting a home has advantages. It is usually a short-term commitment from year to year and the landlord is responsible for the repairs. Owning a home with today’s low mortgage rates, the total house payment could easily be less than what the rent would be on a comparable home. Once you assume ownership, you will have the responsibility of the repairs and possibly, a homeowner’s association fee. Many times, an initial...

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Are You Covered?

Posted by on Jun 29, 2021 in Uncategorized | 0 comments

A home warranty is a service contract that protects your home’s appliances and some systems from repairs or possible replacements. A convenient benefit of a home warranty is that when you report an item, they will assign a service provider to evaluate whether it should be repaired or replaced without the owner having to act like a middleman. Homeowner’s insurance is required by most mortgage lenders when there is an outstanding loan. This coverage protects the structure and the dwelling and the homeowner’s personal property...

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Thoughts on Credit and Getting a Mortgage

Posted by on Jun 22, 2021 in Uncategorized | 0 comments

Credit plays a huge role in getting a mortgage because it is a variable that helps the lender determine the likelihood that the loan will be repaid on a timely basis. Credit bureaus evaluate people’s credit worthiness using a FICO score. The higher the score the better the borrower’s credit. The mortgage rate charged to a borrower depends on their credit score. There is an inverse relationship between credit score and interest rate changed. The higher the score the lower the rate and the lower the score, the higher the rate. Two...

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First Love, Second Wife or Third REALTOR

Posted by on Jun 15, 2021 in Uncategorized | 0 comments

There is a story of a real estate agent’s prayer: “Dear Lord, if I can’t be someone’s first love, or second wife, at least, please let me be their third REALTORĀ®.” In a normal market with a balanced supply of sellers and buyers, this describes the preference that it might be better to be the third listing agent to help the seller after they became more realistic about their list price. In today’s market, it might have more to do with buyers because of the increased competition, their chance of having an...

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Simple Rates of Return

Posted by on Jun 8, 2021 in Uncategorized | 0 comments

Looking for a simple way to determine if a rental property will give you the rate of return you want? This modified annual property operating data may be just what you’ve been looking for. There are many different rates of return that investor’s consider to determine whether a property will generate the yield that they expect. Sometimes the simplest of calculations can tell you whether you want it or not and if you get the other things like tax advantages and appreciation, it just makes it that much better. The first yield we will...

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Is a Home Inventory Necessary?

Posted by on Jun 1, 2021 in Uncategorized | 0 comments

Most homeowners have insurance on their home that additionally, gives them coverage on their personal property. That is the first level of peace of mind to know that it is available to you if there is an unfortunate need for it from a burglary, fire, or some other insured circumstance. Personal property is handled slightly different than real property. The claims adjustor could start by asking you for a list of the things lost. You are allowed to reconstruct it but there is a distinct possibility that you’ll forget things, sometimes for...

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