Apr 9, 2014 | Uncategorized
By Amy Tierce
It’s a seller’s market again this spring so we are dusting off this blog from last year in hopes that it helps some of you get your offers accepted…
Market forces have shifted and today it’s a seller’s market in many communities. Here are some tips for frustrated buyers and buyer’s agents to help get offers accepted!
Make a Large Down Payment– the larger your down payment the more attractive your offer. Why? Because if the appraisal comes in low the buyer with the largest down payment may not have their financing impacted by a low appraisal and can move forward on the purchase without further negotiation.
Pay Cash– If you can, make a cash offer. If the purchase timeframe allows you can still get a mortgage or you can mortgage the property after the purchase transaction is concluded.
Date Flexibility– if you can determine exactly what the sellers’ need in terms of closing dates and then meet those dates – your offer could win even if the price you are offering is lower than others. You can go for an extended closing or even offer to rent the property back to the seller for up to 60 days. Meeting challenging timing needs for the seller can make you the perfect buyer!
Removal of Contingencies/ Financing– We are never comfortable recommending that a buyer remove their mortgage contingency unless they can truly pay cash for the property- BUT we certainly know a winner when we see one and often have buyers who remove their mortgage contingencies with a very THOROUGH pre-approval process.
For added protection– IF you choose to remove a mortgage contingency or make a cash offer or one with a large down payment, the buyer can put an appraisal contingency into their offer so that they have options if the property appraisal comes in low.
Removal of Contingencies/Home Inspection- If you are knowledgeable about home construction or have a friend or family member who is an expert, you might want to consider removing your inspection contingency. Of course you will have no recourse if a structural problem arises that you were not aware of… Removing contingencies also removes protection for the buyer so keep that in mind.
The Personal Approach – Introduce yourself!
Selling a home is a very emotional experience for many people and often they want to know that their home is going to a ‘good’ family or person, especially if this was the sellers first home or they raised their family there. A letter from a perspective buyer introducing themselves and explaining why buying this property means so much could make a difference in the offer process and negotiation.
Don’t Give Up
It can be really disappointing and frustrating for buyers today. Don’t give up! As the market improves more sellers will be ready to put their property on the market increasing inventory and perhaps eliminating the multiple offer effect that we are seeing in some areas today.
It is anticipated that rates will remain low for the foreseeable future. However, even if not at their record lows it is important to keep rate movement in perspective. Rates can go up much more before they start to come up off the historic lows that we are seeing today.
Amy Tierce
Regional Vice President
Fairway Independent Mortgage
(781) 719-4665
amyt@fairwaymc.com
www.amyrates.com
Apr 9, 2014 | Uncategorized
Paying your income taxes each year leave your wallet a bit thin? There may be money hiding in your home that lessens your tax burden. Here are four places to look:
1. Home-Office Deduction
If you work from home, you could qualify for a home-office deduction. Taking the deduction can be a bit complicated; so many people who qualify don’t claim the exemption. An estimated 26 million Americans have home offices, but only 3.4 million claim them on their tax return.
Perhaps that’s why the Internal Revenue Service attempted to simplify the process in 2013.
The write-off takes into account depreciation, utilities, insurance, the amount of square footage dedicated for office space, whether you host clients at your house and other factors.
Because the parameters involved in filing a home-office exemption are rather complicated, it’s best to keep all business-related receipts, records of client meetings and other pertinent information to make things easier when you prepare your return.
2. Casualty Loss
Damage to your home from an act of God or a theft or burglary may qualify you for an income tax exemption. To qualify for the write-off, the causality loss must meet the “sudden event test.” That means it must be sudden, unpredictable, have involved some natural force and occur in a single instance.
To claim thefts and burglaries, you must be able to prove that a wrong doing has actually occurred. It can’t just be a case of a lost item that you suspect was stolen. Proof can come in the form of witness statements, police reports or newspaper accounts.
3. Energy Efficiency Upgrades And Repairs
Upgrading your home with energy efficient improvements can qualify you for a tax deduction. New roofs, insulation, windows, doors and a number of additional items qualify for the deduction. The deductions lets homeowners claim 10 percent of the total bill for energy efficient materials. The maximum credit is $500.
4. Real Estate Taxes And Newly Purchased Homes
New home owners should look at their settlement statement a bit closer. If the previous owner prepaid property taxes that cover any of the time you owned the home, you can include the prepaid taxes in your property tax deduction.
Don’t pay more than you have to when you file your taxes each April. Consider these commonly overlooked deductions that can lessen the amount you have to pay.
Apr 8, 2014 | Uncategorized
Something that the Europeans have been doing for decades has finally made its way over the Atlantic Ocean to North America: the trend is called micro housing, and it’s turned into an entirely new way of living.
With micro housing, we’re beginning to do away with oversize condos and even detached homes, learning to live in a more minimalistic manner and curbing our hoarding habits for good.
The affordability of micro housing is making it possible even for young adults and students to purchase their homes in the city centers across North America. But one must ask, is the micro housing trend good for the globe too?
Sustainability Of Micro Condominiums
Being able to pack a higher number of salable units into one building and lowering the prices to widen the market and encourage young buyers to purchase instead of rent is certainly economically beneficial; but is this trend sustainable and beneficial for the planet too?
As it turns out, the cost of building a micro-apartment structure over a regular sized one has a much lighter footprint on our earth. Micro-housing is a sustainable part of urban design because it is made to be a contributing asset to compact cities across North America, requiring less infrastructure cost, fewer resources, and a smaller environmental impact from shipping to construction to ongoing management and maintenance.
Some micro-buildings even have shared areas like kitchens and lounges; this helps to cut back on building costs even further and lessens air pollution from shipping.
Micro Homes: Are They Green?
Though micro detached homes are also on the rise, they have run into problems with bylaws in certain cities across North America. They may just be the way of the future, though, with the real estate prices in many areas growing out of control.
These micro homes are similar to the micro condominium units in their petite sizes, however they typically do not have a standard foundation, instead resting on screw piles that are attached to the ground. These easy-to-assemble micro homes, though perhaps battling with particular municipalities and their bylaws, offer practical housing that is sustainable too.
Green features of these micro homes include the additional options of a composting toilet, solar power energy systems, grey water treatment system and a rainwater collection system.
The Lifestyle Of The Micro-Housing Trend
Another factor that should be taken into consideration when looking at the sustainability of the micro-housing trend in the kind of lifestyle it is promoting. Generally situated in the dense city centers, micro housing encourages a lifestyle that is affordable, thereby attracting residents who will take public transit or be within walking distance to work or school, and lessening the need for the daily use of a vehicle.
Perhaps we’re looking a little too enthusiastically at the future, but as it seems, the micro housing trend is bringing with it all kinds of benefits, both economically and sustainably. A lifestyle and housing solution that finally benefits the planet is always accepted among our modern cities across North America, and soon it may just be the reason to purchase instead of rent, allowing us to walk instead of drive.
For more information on the micro housing trend in your area, call your trusted real estate advisor today, and get in the know!
Apr 7, 2014 | Uncategorized
Last week’s economic news included readings on February construction spending and multiple reports on employment data.
Private sector employment was higher in March, but The Bureau of Labor Statistics reported that Non-Farm Payrolls for March fell short of expectations. According to Freddie Mac, mortgage rates ticked upward.
Employment And Unemployment News
ADP’s payrolls report for March was higher than February’s reading, with 191,000 new private sector jobs added. In February, 178,000 jobs were added. February’s reading originally showed 138, 000 new jobs added.
While analysts were confident that private-sector employment was showing signs of stability, the U.S. Bureau of Labor Statistics swamped excess confidence in labor markets Friday with its March reading for Non-Farm Payrolls.
192,000 jobs were added in March against predictions of 200,000 jobs added and February’s reading of 197,000 jobs added.
The news was not all bad as job gains for January and February were revised upward. January’s job gains were revised from 129,000 to 144,000 and February’s reading was revised from 175,000 to 197,000 jobs added. The revised readings represent a total of 37,000 more jobs added.
As data impacted by severe winter weather “shakes out,” it would not be surprising to see a revision to March’s new jobless claims reading as well.
Unemployment Rate Holds Steady, Workforce Numbers Higher
While readings on employment have been up and down in recent months, the national unemployment rate has held relatively steady, with last week’s reading at 6.70 percent. 503,000 workers joined the workforce this increased the labor participation rate for March from 63 percent to 63.20 percent.
Mortgage rates were incrementally higher last week according to Freddie Mac. The average rate for a 30-year fixed rate mortgage increased by one basis point to 4.41 percent; discount points moved from 0.60 percent to 0.70 percent.
The average rate for a 15-year fixed rate mortgage rose by five basis points to 3.47 percent with discount points unchanged at 0.60 percent. 5/1 adjustable rate mortgages had an average rate of 3.12 percent, which was two basis points higher than the previous week. Discount points for 5/1 adjustable rate mortgages were unchanged at 0.50 percent.
This Week’s Economic News Highlights
Job openings for February, FOMC minutes and the University of Michigan consumer sentiment index for March are set for release this week. As usual, Freddie Mac will post results of its latest Primary Mortgage Market Survey and weekly unemployment claims will also be reported.
Apr 4, 2014 | Uncategorized
Moving into your home is an exciting time, and you shouldn’t allow higher than expected electricity bills to dampen your spirits. Every day, households around the world waste large amounts of energy.
If your home uses more energy than it needs to, you are the one that is paying the price. Luckily, there are many ways to make sure your home is running as efficiently as possible. Save yourself from ‘utility shock’ by taking these seven steps.
Make Energy Efficiency Your Electric Company’s Business
When you first move into your home, have your appliances inspected by an authorized technician. You could call your appliance’s manufacturer or the electric company to find someone to inspect your appliances.
If you do find yourself on the phone with the electric company, ask them if they have peak and off-peak hours. Often, there are times throughout the day where usage is at a premium, and the cost is higher than it would be at other times.
You should also ask if they have any tips or resources pertaining to your home’s electrical usage. Electrical companies will often send you literature or an energy saving kit that can help make your home run more energy efficiently.
Get Fresh Furnace Filters And Examine Your Central Air System
When you move into a new home, it’s difficult to know what kind of upkeep the previous owners performed on the furnace. Upon moving into your new home, you should have the filter on your furnace changed and your ducts examined and cleaned.
Do the same for any central cooling systems in the home. This way you’ll feel confident that they are operating properly and producing the best air quality possible.
Wrap And Warm Your Hot Water Tank
The hot water tank is another area where you can save a significant amount of money. Set your hot water tank to a warm setting, instead of a hot one (this makes little difference in the water temperature at your tap, but it will save you money).
You could also purchase an insulating cover for the tank, and wrap the hot water pipes in the home. Insulation for your hot water tank and pipes is a cost-effective solution, and you can find plastic or foam pipe insulators at your local hardware store.
Evaluate The Situation From Windows To Insulation
Check the windows and doors of the home to make sure they are properly insulated. Fresh weather stripping and caulking will keep drafts out in the winter, and cool air in during the summer.
Another way to regulate your home’s temperature is to replace the insulation in your attic. You could also install an attic fan to improve airflow.
A Bright Energy Saving Idea
Replace incandescent light bulbs with fluorescent bulbs. The cost is only slightly higher, and fluorescent bulbs last over five times as long as incandescent bulbs. Fluorescent bulbs give off a softer light, but are bright enough to light your home and will save a significant amount of electricity.
Get Your Windows Working With The Weather
Replace thin curtains with heavier weight window coverings. You can use the sunlight when you need it, and block it out when you don’t. Heavy drapes are also great at keeping warm and cool air in your home. Having high quality window treatments may mean you use your thermostat and light switches less.
Properly Power Down Your Electronics
A surprising amount of the energy our electronics use is wasted while devices are powered down. Electronics that are off but are still plugged directly into an outlet do indeed burn energy. When you set up the electronics in your home, use power strips where you can. Flicking the bar off when electronics are not needed will lead to savings on your electric bill.
Once you have taken these steps, you can feel good knowing you are saving money and being environmentally responsible. Energy efficient handy work and home improvements also qualify for significant tax credits.
Make sure you keep your receipts and invoices, as they could mean cash back in your pocket come tax season. If you decide to take your savings and move up and out, contact a local real estate professional for assistance in finding the perfect place to call home.
Apr 3, 2014 | Uncategorized
If you are going to be staging your home for sale in the near future, you will most likely want to do it as professionally and successfully as possible to get the best sale price.
Many owners have to put a lot of money into their home before they can sell it, and some even invest in a staging expert to come to their home and do an assessment before they put it on the market.
You don’t have to spend too much on getting your home ready, though, and you can do a lot of it yourself. Consider these basic staging tips when you are going to stage your home.
Clean Your Home From Top To Bottom
While you would most likely clean your home before you attempt to sell it, if you really want your sale to be successful, clean every single thing in the home. This includes steam cleaning the carpets, washing and waxing the floors, getting the grout and grunge out of the tiles and more.
If you don’t have the time or energy to do it yourself, you might want to pay for a professional home cleaning service so you can guarantee cleanliness.
Give Your Home One Basic Hue
If you are going to be selling your home, there are some colors that may put off potential buyers. If you have rooms in colors like fire engine red or bright mint green, the buyer may be put off with just one glance.
Choose one soft color and paint the whole home. You may require a professional painter’s advice and help in this area if you have no eye for design or if you do not possess any color coordination techniques.
Say No To Clutter
This is a very important step. Get rid of the clutter in your home.
If you have loads of newspapers, magazines, mini statues and miscellaneous junk sitting around your home and on coffee tables, clear it off. Put it away in storage boxes so you can take it when you move – or do some spring cleaning and get rid of everything you don’t need.
Show as much counter space as you possibly can, as this will better represent the space.
Potential buyers can quickly change their yes to a no when they enter the home that they first adored from the outside, only to see clutter everywhere. Logically, everyone knows a home will be emptied before selling, but the clutter can ruin the whole feeling of purchasing a new home.
Perform Some Minor Repairs
If you notice scratches, rips, blotches or any broken items in the home, try to fix them yourself or hire a professional handyman service. Repairing your home before a sale will definitely improve your home’s appearance and value, making it more appealing to the buyer.
Selling a home is often a challenge, but with a little bit of hard work, you can turn your home into a move-in ready paradise for potential buyers.
You’d be surprised what a thorough cleaning and a new coat of paint can do for a space. For expert assistance with home staging, contact a knowledgeable real estate professional near you.
Market forces have shifted and today it’s a seller’s market in many communities. Here are some tips for frustrated buyers and buyer’s agents to help get offers accepted!