The Department of Housing and Urban Development (HUD) has announced new incentives on Ohio HUD-owned properties that will make them more affordable for homebuyers. This program started November 15:
Ohio homebuyers will be able to purchase a HUD home with a $100 down payment when they use financing insured by the Federal Housing Administration (FHA). In addition, homebuyers can obtain a $2,500 sales allowance at closing that can be used towards closing costs, to make repairs to the home or to pay down on the unpaid principal balance of the mortgage.
If the borrowers do not use FHA-insured financing they can still qualify for a $1,000 sales allowance to be used for the payment of closing costs.
Source: TBR News
Thursday, December 13, 2007
Tuesday, December 4, 2007
Well-Water Homes: What to Investigate
A house that relies on well water can be a turnoff to some buyers. But before buyers shun these homes completely, here are some things that real estate professionals can help them investigate:
• Is it drinkable? Most mortgage lenders require a water potability test before closing a loan on a property. Beyond that, the buyer should consider a professional inspection and possibly more testing for potential contaminates.
• Do some official research. It's a good idea to look at the "well log" or "drilling report" from the county health department or environmental services office. These logs include information like construction date, contractor's name, drilling method and materials used, depth of the well, geological formations encountered, gallons per minute drawn, and distances from structures or septic fields when the well was built. These logs will also include any servicing or repair work done.
• Visual inspection. Inspect the well visually. Ideally, the well should be higher than surrounding ground. Look for pooled surface water around the well, which can indicate drainage problems.
• Look around. Are there potential sources of contamination — barnyards, septic systems, or ponds uphill from the well? Nearby underground gas tanks also can be a problem.
Source: Realtor® Online
• Is it drinkable? Most mortgage lenders require a water potability test before closing a loan on a property. Beyond that, the buyer should consider a professional inspection and possibly more testing for potential contaminates.
• Do some official research. It's a good idea to look at the "well log" or "drilling report" from the county health department or environmental services office. These logs include information like construction date, contractor's name, drilling method and materials used, depth of the well, geological formations encountered, gallons per minute drawn, and distances from structures or septic fields when the well was built. These logs will also include any servicing or repair work done.
• Visual inspection. Inspect the well visually. Ideally, the well should be higher than surrounding ground. Look for pooled surface water around the well, which can indicate drainage problems.
• Look around. Are there potential sources of contamination — barnyards, septic systems, or ponds uphill from the well? Nearby underground gas tanks also can be a problem.
Source: Realtor® Online
Saturday, November 24, 2007
Eliminate Income Tax on Foreclosed Properties
Eliminating 'Phantom Tax' on Foreclosures Gets a Boost
The House Ways and Means Committee voted to change a law that forces home owners to pay an income tax on mortgages that have been forgiven or foreclosed, a move that the NATIONAL ASSOCIATION OF REALTORS® has long supported.
The current tax code requires a lender who forgives debt to provide a Form 1099 to the IRS stating the amount the borrower has been forgiven. This disclosure applies whether a short sale, foreclosure, deed in lieu of foreclosure or any similar arrangement relieves the borrower of the obligation to pay some portion of his or her debt. If the property is sold at foreclosure or is sold for less than the amount borrowed, that difference is considered income and is subject to the tax.
“Changing the IRS code for these situations will relieve a tax burden for families who are already in financial distress and are most likely unable to pay additional taxes,” says NAR President Pat V. Combs, who supported the House committee’s action in moving the Mortgage Cancellation Tax Relief Act, H.R. 3648, forward. NAR has pursued repealing the “phantom tax” law since the early 1990s.
Action on this legislation comes at a good time, too — when many families are being affected by the resetting of interest rates on subprime mortgages and the ongoing rise in foreclosures.
H.R. 3648 would ensure that any mortgage debt secured by a principal residence will not be taxed. “The relief proposal addresses a fundamental unfairness that affects the lives of those who find themselves in truly unfortunate circumstances,” Combs says. “We must all work together to prevent the dream of homeownership from becoming a nightmare.”
The legislation includes a provision to safeguard against abuses. The provision, similar to one that already exists for commercial real estate owners, would treat commercial and residential property equally. NAR also supports the proposed offset, which tightens the requirements for taking advantage of some tax benefits while retaining all of them.
Source: Realtor® Magazine 9/27/07
The House Ways and Means Committee voted to change a law that forces home owners to pay an income tax on mortgages that have been forgiven or foreclosed, a move that the NATIONAL ASSOCIATION OF REALTORS® has long supported.
The current tax code requires a lender who forgives debt to provide a Form 1099 to the IRS stating the amount the borrower has been forgiven. This disclosure applies whether a short sale, foreclosure, deed in lieu of foreclosure or any similar arrangement relieves the borrower of the obligation to pay some portion of his or her debt. If the property is sold at foreclosure or is sold for less than the amount borrowed, that difference is considered income and is subject to the tax.
“Changing the IRS code for these situations will relieve a tax burden for families who are already in financial distress and are most likely unable to pay additional taxes,” says NAR President Pat V. Combs, who supported the House committee’s action in moving the Mortgage Cancellation Tax Relief Act, H.R. 3648, forward. NAR has pursued repealing the “phantom tax” law since the early 1990s.
Action on this legislation comes at a good time, too — when many families are being affected by the resetting of interest rates on subprime mortgages and the ongoing rise in foreclosures.
H.R. 3648 would ensure that any mortgage debt secured by a principal residence will not be taxed. “The relief proposal addresses a fundamental unfairness that affects the lives of those who find themselves in truly unfortunate circumstances,” Combs says. “We must all work together to prevent the dream of homeownership from becoming a nightmare.”
The legislation includes a provision to safeguard against abuses. The provision, similar to one that already exists for commercial real estate owners, would treat commercial and residential property equally. NAR also supports the proposed offset, which tightens the requirements for taking advantage of some tax benefits while retaining all of them.
Source: Realtor® Magazine 9/27/07
Saturday, September 29, 2007
Lifespan for home systems and appliances
Item Expected life (years)
Central A/C 15+
Window A/C 10
A/C compressor 15
Forced-air furnace 15
Gas or oil furnace 18
Gas water heater 11 to 13
Electric water heater 14
Microwave ovens 11
Electric ranges 17
Gas ranges 19
Gas ovens 14
Exhaust fans 20
Refrigerators 17
Freezers 16
Dishwashers 10
Disposal 10
Trash compactors 10
Clothes washers 13
Dryers 14
Source: National Association of Home Builders
Central A/C 15+
Window A/C 10
A/C compressor 15
Forced-air furnace 15
Gas or oil furnace 18
Gas water heater 11 to 13
Electric water heater 14
Microwave ovens 11
Electric ranges 17
Gas ranges 19
Gas ovens 14
Exhaust fans 20
Refrigerators 17
Freezers 16
Dishwashers 10
Disposal 10
Trash compactors 10
Clothes washers 13
Dryers 14
Source: National Association of Home Builders
Tuesday, September 18, 2007
Which Improvements Payback?
COST VS VALUE REPORT
According to the Cost vs. Value Report*, replacing your vinyl siding is the least expensive way to add value and increase the selling price for your home. Replacing wood windows and performing a minor kitchen remodel ($17,000 or less) tie for second place on the list of high-impact home improvements to help you sell. The third most profitable home improvement to add value to your home is a bathroom makeover ($12,000 or less).
Project Job Cost Resale Value Average
Vinyl Siding Replacement $9,134 $7,963 87.2%
Window Replacement (Wood) $11,040 $9,416 85.3%
Minor Kitchen Remodel $17,928 $15,278 85.2%
Bathroom Remodel $12,918 $10,970 84.9%
Window Replacement (Vinyl) $13,120 $11,109 84.7%
Two-Story Addition $105,297 $87,654 83.2%
Major Kitchen Remodel $54,241 $43,603 80.4%
Attic Bedroom Remodel $44,073 $35,228 79.9%
Basement Remodel $56,724 $44,685 78.8%
Deck Addition $14,728 $11,307 76.8%
Know Your Neighborhood
Before you decide which home improvement project adds the most house value, do a little competitive research by finding out what features are popular with other homes in your neighborhood. If most houses in your neighborhood are about 15 to 20 years old but have upgraded kitchens with contemporary countertops, tile flooring, and stainless steel appliances, you’ll net a better return if you invest in a minor kitchen remodel. By knowing your neighborhood, you’ll get a better sense of what projects are the best home improvement values for your dollar.
Know Your Region of the Country
Not only should know your neighborhood but you should also know your region. Consider a remodeled basement which, nationally, offers 78.8% ROI; widely popular with buyers in some parts of the country (in the Pacific, it nets a 92.7% ROI), remodeled basements are not as popular in other parts of the country (in
New England, its ROI is only 61.9%). To help you sell now, know what buyers in your area prefer.
According to the Cost vs. Value Report, each part of the country has unique home improvement values.
ROI=Return On Investment
Source Realtor Magazine
According to the Cost vs. Value Report*, replacing your vinyl siding is the least expensive way to add value and increase the selling price for your home. Replacing wood windows and performing a minor kitchen remodel ($17,000 or less) tie for second place on the list of high-impact home improvements to help you sell. The third most profitable home improvement to add value to your home is a bathroom makeover ($12,000 or less).
Project Job Cost Resale Value Average
Vinyl Siding Replacement $9,134 $7,963 87.2%
Window Replacement (Wood) $11,040 $9,416 85.3%
Minor Kitchen Remodel $17,928 $15,278 85.2%
Bathroom Remodel $12,918 $10,970 84.9%
Window Replacement (Vinyl) $13,120 $11,109 84.7%
Two-Story Addition $105,297 $87,654 83.2%
Major Kitchen Remodel $54,241 $43,603 80.4%
Attic Bedroom Remodel $44,073 $35,228 79.9%
Basement Remodel $56,724 $44,685 78.8%
Deck Addition $14,728 $11,307 76.8%
Know Your Neighborhood
Before you decide which home improvement project adds the most house value, do a little competitive research by finding out what features are popular with other homes in your neighborhood. If most houses in your neighborhood are about 15 to 20 years old but have upgraded kitchens with contemporary countertops, tile flooring, and stainless steel appliances, you’ll net a better return if you invest in a minor kitchen remodel. By knowing your neighborhood, you’ll get a better sense of what projects are the best home improvement values for your dollar.
Know Your Region of the Country
Not only should know your neighborhood but you should also know your region. Consider a remodeled basement which, nationally, offers 78.8% ROI; widely popular with buyers in some parts of the country (in the Pacific, it nets a 92.7% ROI), remodeled basements are not as popular in other parts of the country (in
New England, its ROI is only 61.9%). To help you sell now, know what buyers in your area prefer.
According to the Cost vs. Value Report, each part of the country has unique home improvement values.
ROI=Return On Investment
Source Realtor Magazine
Wednesday, August 22, 2007
Don't Let an Empty House Jeopardize a Sale
More home sellers are leaving their properties completely unfurnished while they sit on the market. Some argue that an empty house lets prospective buyers more easily picture their belongings in the space, take measurements, and examine recent improvements.
However, real estate brokers warn that empty homes must be well maintained, as overgrown lawns could lead buyers to wonder what interior components have been neglected as well. They recommend that sellers keep vacant dwellings clean and in top-notch condition, as flaws cannot be camouflaged by furniture.
Some buyers seek out empty homes because they believe the owner is desperate to make a sale. Sellers unable to generate buyer interest are urged to bring in some furnishings to create a lived-in look.
Source: Virginian-Pilot, Joanne Cleaver (08/18/07)
Need help staging your home? Contact Scott Snyder, I can help!
However, real estate brokers warn that empty homes must be well maintained, as overgrown lawns could lead buyers to wonder what interior components have been neglected as well. They recommend that sellers keep vacant dwellings clean and in top-notch condition, as flaws cannot be camouflaged by furniture.
Some buyers seek out empty homes because they believe the owner is desperate to make a sale. Sellers unable to generate buyer interest are urged to bring in some furnishings to create a lived-in look.
Source: Virginian-Pilot, Joanne Cleaver (08/18/07)
Need help staging your home? Contact Scott Snyder, I can help!
Tuesday, August 21, 2007
Home Owners Fight IRS on Foreclosure Tax
When a home owner goes through foreclosure or a short sale, the Internal Revenue Service considers the amount of the loan that was forgiven to be income for the debtor. That bill can come as a sickening surprise for those who believed that they had finally crawled out from under debt.
Some people in this predicament are fighting the IRS — and winning. And even borrowers who still have to pay can negotiate lower payments with the IRS, tax experts say.
The first step is to get knowledgeable legal and tax help, advises Kurt Eggert, a professor at Chapman University School of Law. This is not the time to file your taxes on your own, he says.
In some cases, an experienced tax attorney may able to show that the original loan process was so flawed that the borrower is not liable for taxes at all. Or a borrower who can demonstrate that she is insolvent also may be able to escape the tax, too.
Source: The New York Times, Geraldine Fabrikant (08/20/07)
Some people in this predicament are fighting the IRS — and winning. And even borrowers who still have to pay can negotiate lower payments with the IRS, tax experts say.
The first step is to get knowledgeable legal and tax help, advises Kurt Eggert, a professor at Chapman University School of Law. This is not the time to file your taxes on your own, he says.
In some cases, an experienced tax attorney may able to show that the original loan process was so flawed that the borrower is not liable for taxes at all. Or a borrower who can demonstrate that she is insolvent also may be able to escape the tax, too.
Source: The New York Times, Geraldine Fabrikant (08/20/07)
Subscribe to:
Comments (Atom)
.jpg)
Posts
