Surviving Spouse Sale Period
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...
read moreAre prices and rates going to continue to rise?
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...
read moreMoving Down in an Up Market
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...
read moreShowing How Earnest You Are
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...
read moreIs Your Home Inventory Up To Date?
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...
read moreQuestions to Ask a Mover
"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...
read moreBuy Before You Sell
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...
read moreYou don’t have to give an arm to get a lower rate
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...
read moreHelping the Seller See Your FHA/VA Offer More Favorably
With multiple offers the norm on many listings these days, the seller relies on their listing agent to help them determine which one to accept. In some cases, offers subject to FHA or VA mortgages tend to move to the bottom of the list. Some sellers consider all cash offers first and then, conventional offers with at least 20% down payments as the next most likely to close. It may be because of a common misconception that FHA or VA buyers are poor credit risks and have a higher likelihood of not being approved. Both FHA and VA do not require...
read moreToday is a Skills Market
In today’s ultra-competitive real estate market where there is only 1.7 months supply of inventory compared to 6 months in a balanced market, and the average home is getting 4.8 offers per sale, it is more important than ever to have the right person "champion" your cause. In the Middle Ages, it became customary for a person of nobility to appoint a "champion" to fight for them in their stead. Trial by combat ended in the 15th to 16th centuries but the practice of "fighting" or speaking in one’s...
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