Seller FAQs

Is now a good time to sell and buy a bigger home?

The light is on

I get asked this question all the time. Typically the first thing that is said is Mr./Mrs. Seller doest want to lose money on the sale of their home as the value is lower than what it was just a few years ago. Lets assume the market is down but 15% as a whole an their home was worth $200,000. 15% decrease would be $30,000 “loss”. Mr./Mrs. seller is now going to buy a $350,000 home in a market that is still 15% down. 15% down from $350,000 equates to a $52,500 saving on the purchase. So, they “lost” $30,000 on the sale but saved $52,500 on the buy which still works out to be a $22,500 net savings. Financially it makes sense…..

Don’t want to list your home for sale while its Vacant??

Homes in Transition

Homes in Transition

Homes In Transition – We Breathe Life Into Vacant Houses!

Homes In Transition (HIT) was founded in February of 2009 by Tom Schmidt.  Our knowledgeable and friendly staff provides carefully screened Caretakers to Homeowners with vacant houses on the market for sale.  Our Caretakers are matched based on their furnishings to the home to provide the best possible marketing advantage and work in harmony with the Listing Agent to get the property sold more quickly.  Our Property Inspector performs a video inspection of the house prior to Caretaker Occupancy to check the condition and operations of all systems. Once a Caretaker is placed, our IRIS Certified Home Stager and General Manager will inspect the “set up” and make any adjustments necessary to make the house shine!

HIT Caretakers differ from Tenants in that they happily accommodate all Realtor Showings and Open Houses .  All utilities for the property are paid for by the Caretakers as well as a small weekly fee of $140 to live in a beautiful home!  HIT also performs random inspections to assure the Realtor and Homeowner that the property is being kept show ready.  All minor maintenance and grounds keeping is also performed by the Caretakers, saving the Homeowners and Realtors time and money!  HIT also provides a 100% Guarantee to the Homeowner that we will return the property in the same or better condition upon sale.

We have a proven track record of helping more than 300 Homeowners and their Realtors each year with our service.  MLS Statistics have shown that HIT Caretaker Occupied Properties sell 36% faster for 23% more money than their vacant comparables.  HIT’s service gives neighbors peace of mind that there isn’t a vacant and neglected house in the neighborhood.  A recent and shining example of this is a home in Placitas that had been empty and on the market for 270 days prior to getting a Caretaker Placed.  Just 44 days later, the property was under contract.

You can find us at our beautiful office located at 4508 Columbine NE in Albuquerque.  We also have an office in Phoenix, Arizona.  Our telephone number is; (505) 503-8056 and you can visit our website; www.HomesInTransition.com for more information.  We are double gold star rated by the Better Business Bureau and belong to the Albuquerque Chamber of Commerce.

Make sure to mention Michael Dunn, Coldwell Banker Legacy when inquiring with Homes in Transition.

Feel free to share your experiences below! We would love to here from you!

1031 Exchanges

bag of money

IRS Code 1031- No gain or loss shall be recognized on the exchange of property held for productive use in a trade or business or for investment if such property is exchanged solely for property of like-kind which is to be held either for productive use in a trade or business or for investment

A few bullet points are as follows:

  • 45 Day identification period- The tax payer must identify potential replacement property(s) by midnight of the 45th day from the date of sale
  • 180 Day exchange period- The taxpayer must acquire the replacement property by midnight of the 180th day, or the date the taxpayer must file its tax return (including extensions) for the year of the transfer of the relinquished property, whichever is earlier
  • Reverse exchange is when you purchase a property prior to selling the other property. Same deadlines apply as above
  • If you sell a home that you have not lived in 2 of the last 5 years you could be subject to capitol gains tax on the gain for the sale
  • Those “2 years” don’t have to be the last 2 years and they don’t have to be a continuous 2 years
  • Gain= what you paid for the home + improvements to the home subtracted from what you sold the home for
Make sure to consult with an attorney and/or your tax advisor for strategies and more information on this program to see if it fits your needs.
Contact me for all of your Real Estate investing needs!!

 

Welcome Home Magazine Out! Horse Edition!

20110806-092332.jpg

This months welcome home magazine just came out and it is the special horse property edition! All horse property are marked for ease of searching. Every home I list for sale is listed in the welcome home magazine free of charge to all of the sellers I work with. Contact me and I will mail or drop off a copy for you free of charge!

20110806-092332.jpg

2 things I hate about being a Realtor

20110730-053614.jpg

20110730-053614.jpg

20110730-053642.jpg

There are only 2 things I really don’t like about being a Realtor.

1. Fumbling around with all the keys! Does anyone else get annoyed when there are numerous keys, darn things don’t work correctly and who knows what works what. Then to top it off you have your own keys in your hand, your lock box key, probably a cell phone and the mls sheets fumbling around. Maybe I just need a purse.

I was showing homes yesterday and ran across this house that had the keys color coded. That made my day!

2. Can anyone guess what the 2nd thing is I don’t like about being a realtor? :)

Is this odd??

20110702-060143.jpg

Today I was out showing homes to a first time home buyer and ran across this booklet at a home for sale. Normally booklets and flyers point out the good features of a home?? Does anyone else think it’s odd that this pointed out that there is a warranty on the roof that is going to expire in 2005? Wait a second, that was 6 years ago? At what point is a “new furnace” bullet point no longer a good thing? This was installed 14 years ago which is still better than an original furnace (this home happens to be 40-50 years old) but……

Thoughts??

20110702-060143.jpg

Do Open Houses Sell Houses?

20110630-105651.jpg

The most recent statistics show that the odds of selling your home directly from an open house are 1 in 250! That means if I do 1 open house per week it would take almost 5 years to get your house sold via an open house!!

Open houses are typically a lead generating tool for the Realtor holding the open house. Typical visitors to open houses have no information about your home regarding the price, size or condition as most of the foot traffic stems from people driving and seeing the open house signs.

20110630-105651.jpg

Is a 2/1 Buy Down Your Solution to Your Next Mortgage?

BUYDOWN

Make your home ownership experience more comfortable with a 2-1 Buy Down from Legacy Mortgage.  The loan is a FIXED 30 year loan with a reduced interest rate for the first 2 years.  This program allows you a lower payment those first years leaving more cash each month for the little extras.

How the loan works.  The first year rate is 2% points below the market rate, the 2nd year rate is 1% point below, and years 3 – 30 are at the market rate from when you closed.

  • This loan starts with a lower interest rate for the first 2 years and is FIXED for the next 27 years.
  • An example is, year 1 rate would be 3.0%
  • Year 2 would be 4.0%
  • Years 3 – 30 would be 5.0%
  • The cost is 2.5% of your mortgage amount.  A $100,000.00 mortgage would cost $2500.00.
  • Buyer or seller can pay this.
  • The principle and interest payment on a $100,000 30 year fixed at 5% is $536.82.
  • The principle and interest payment on the 2-1 Buy down $100,000 loan first year at 3% is $421.60 a difference of $115.22 per month.
  • The principle and interest payment for the 2nd year at 4% is $477.42 a difference of $59.40 per month.
  • The principle and interest payment for years 3-30 is $536.82.

This loan allows you to have a reduced payment during those first few years of homeownership making the transition much more comfortable for buyers.

Call Legacy Mortgage and Rachel Donovan to get all the details on this loan as well as all other mortgage loan options.

Rachel Donovan
Legacy Mortgage
505-328-4792
rdonovan@legacymortgagenm.com
http://legacymortgagenm.com/RDonovan/

New Mexico Real Estate Contracts (Owner Financing)

Owner Financing

They myth that NM Real Estate contracts are illegal or the devil is just that, a myth. They are definitely not illegal and are used quite often in New Mexico. A New Mexico Real Estate contract is a legally enforceable agreement where the seller agrees to sell and the buyer agrees to buy real property in New Mexico on a deferred payment arrangement. Once the buyer performs all of the obligations per the contract he/she is entitle the the deed. The Real Estate contract does not convey Legal title but does convey equitable title. Simply put it obligates the seller to convey legal title once the buyer has fulfilled the terms outlined in the Real Estate contract.

There are no requirements on how the contract terms should be wrote. Its all up to the buyer and seller. Typically amortized over 15 or even 30 years just as would be outlined in a regular mortgage. I have seen the interest rates pretty close to the going rate for a standard mortgage on up to a few points higher than that of a regular mortgage. So, if the going interest rate for a normal mortgage is 5% you might see an owner financing rate 6-8%. Once again, this is all negotiable and up to the buyer and seller to agree upon.

The obvious reason for doing a NM Real Estate Contract is that the parties don’t want to or can’t obtain a normal mortgage. This could be for numerous different reason:

-Maybe the buyer owns too many properties, makes enough money to support another payment but does not fit the guidelines of obtaining another mortgage thru a lender?? In the investment world this happens a lot with lenders getting tighter and tigher on the criteria

-Maybe the house does not qualify for a mortgage?? Normal mortgages require an appraisal to be completed and depending on the condition of the house it may not be a home that would fit the criteria that the bank is willing to lend on. Tyically seen in home that need renovating. There are no requirements as to the appraised value or condition of the property in owner financing unless the buyer requests it.

-Maybe, just maybe, the buyer is an independent contractor or a small business owner that has a great credit score and has plenty of money for a down payment but still does not meet the quidelines to obtain a mortgage thru a lender??

Point I am trying to make here is that these are not just used because the buyer has terrible credit, no money down and probably wont make the payments. (And yes, I have heard of them referred to that way). These can be used to achieve a common goal….. to buy and sell a home

Staging Tips to Getting Your Home Sold

Star!!

Do you want to show your home or sell your home? Winning the beauty contest and the pricing war are 2 key elements in getting your home sold. You only get one chance to “WOW” the buyer so why not make it count? Here are a few tips to winning the beauty contest

1.  Unclutter –If a house is cluttered, it feels smaller.  Give the visual of more space by organizing and removing half the contents of closets and cabinets.  This action creates a spacious, organized feel. When in doubt, throw it out!  Other options are to give it away, store it or sell it. ***Follow the rule of 3′s (Any flat surface should only have 3 items on it. eg. blender, toaster and knife block…. nothing else!)

2.  Clean – Show potential buyers that the home has been well cared for and has pride of ownership.  Scrub walls, counters, floors and appliances.  Bring the outdoors in with sparkling, clean windows. A scratch cover, wax, or stain/sealer will return the warmth and glow of natural wood.  Be sure every room smells as clean as it looks.  Use an odor neutralizer to clean away pet and cooking odors.  You might jump start this process by initially hiring a professional cleaning service.

3.  Repair – Making repairs before the home goes on the market can actually save the seller money, stress and negotiation.  Consider a home inspection to eliminate buyers’ objections before they arise.  Professionals can handle the complicated repairs while the seller can handle the others.  A potential buyer who loves the home but thinks a lot of money will be needed to make repairs may make a low offer.

4.  Neutralize – Create a home for many lifestyles and tastes.  Neutral paint, décor and carpeting help buyers mentally and emotionally move in.  Unusual colors or outdated decorating may make it difficult for buyers to imagine their furnishings in the house.  Choose neutral, warm colors.  Replace family photos with a few carefully chosen accessories.  Some people are allergic to or afraid of animals; the seller should kennel the pets or take the pets out of the house during showings.

5.  Dynamize – If buyers can imagine daily life in the house, the seller will build an essential emotional connection with them.  Have the seller pretend to be a buyer and take a complete tour of the house from its curb appeal through the entire house.  Evaluate the subtle message that each part of the home should convey.  Then decide how to add elegance, style and grace.  The seller wants to show the buyer how relaxing the home feels, the privacy it offers and the comforts of home that it portrays.

 

Our weather forecast is from Wunderground for WordPress

Coldwell Banker Legacy Realtors (505) 292-8900 8200 Carmel NE Ste. 103A Albuquerque, NM 87122