Real Estate Info

Traits of the 2018 Home Buyer

Every year the National Association of Realtors conducts a survey of recent home buyers and sellers.  Below are some highlights on the nature of buyers from the 2018 survey.

  • First time home buyers made up 1/3 of all buyers.
  • The typical home purchased was built in 1991, 3 bedrooms, 2 baths, and 1900 square feet.
  • Buyers usually searched for 10 weeks and looked at a median of 10 properties.
  • 87% of buyers used a real estate agent to purchase their home. 
  • The top 3 factors influencing what buyers chose were (1) quality of neighborhood, (2) convenience to job, and (3) overall affordability.
  • The breakdown of age of homes purchased by buyers in the Northeast:  11% were 1913 or older, 30% were 1914-1961, 25% were 1962-1987, 18% were 1988-2002, and 17% were 2003+. 

 While interesting data, sellers should be aware of how these buying characteristics might impact selling their home.  For example, if you are selling an antique, you need to know you are targeting only 11% of all buyers.  Contact me if you’d like to know how these factors might impact you.  603-526-4116, Donna@DonnaForest.com, www.DonnaForest.com

Teamwork from the Team that works –Better Homes & Gardens Real Estate - The Milestone Team

Who Gets the Money?

In a contract, deposits are required to show the sincerity and strength of the buyer's intent to purchase as well as to potentially provide liquidated damages to sellers in case of default.  Sellers sometimes eye these funds as money in their pocket and assume that the deposit will just be handed over to them if the buyer defaults or cancels the contract.  In reality, there are many legal ways for a buyer to cancel a contract, so odds are slim to see an actual default.  Also, a release form has to be signed by both seller AND buyer.  This release allows the money to be withdrawn from the escrow account and distributed appropriately.  The chances of the buyer just signing over thousands of dollars without an argument are slight.  If both parties won't agree to sign, the process could end up in mediation or court.  To avoid this situation, it's always best to find compromises that help resolve disputes as amicably as possible.  

Give me a call if you are looking for an experienced REALTOR that will help your sale move forward and avoid costly litigation.  603-526-4116, www.DonnaForest.com, donna@donnaforest.com

Real estate markets are local, and we have the real scoop on ours.  Better Homes & Gardens Real Estate - The Milestone Team

Best ROI on Home Projects?

Every year Remodeling Magazine publishes research on the average return on investment (ROI) on 20 popular home projects in 149 markets across the US.  The 2018 report found overall you make back only about 56% of the money spent on renovations.  This is down from the last two years where the expectation was at 64%.  Of course the ROI varies with the project.  In the New England markets, new garage doors have the highest ROI at 99%, followed by siding replacement at 80% and vinyl windows replacements at 75%.  Enhancing curb appeal provides higher payback than interior projects.

Spending money on a house does not mean it automatically goes up in equal value.  Putting on a $10k roof won't increase the worth of a home by $10k.  Buyers expect to purchase a home with a roof that has a reasonable life expectancy.  There is a difference between maintenance and enhancement.  Bottom line, if you are thinking of selling, replace or repair is better than adding rooms or doing major remodels.  Contact me for sound advice on where to spend your money when getting ready to sell!  603-526-4116, Donna@DonnaForest.com, www.DonnaForest.com

“Word of Mouth” is the best advertisement, and we love it when you refer your friends and family to Better Homes & Gardens Real Estate - The Milestone Team.

Getting to Yes

I recently spent 2 days at a class put on by the Real Estate Business Institute to become a certified negotiation expert and thought it would be good to share some points made during this time.  Some might just surprise you!

  • Negotiations are really between the two agents and not the buyers & sellers.  While the goal is for each to get the best possible outcome based on their clients’ needs and wants, the reality is that it is the two agents who are communicating with each who make it happen.  How well the agents negotiate with each other can make or break it for their clients.
  • In any negotiation, you need to know if the market conditions are with or against you.  For example, if you are a buyer in a sellers’ market, the market may push you to make decisions quickly.
  • If a deal gets “deadlocked”, sometimes taking a time-out is helpful to allow everyone to re-group and re-assess their wants and needs.
  • There are always at least 2 negotiation points in a sale – the first with the offer and the 2nd after the home inspections.
  • The best negotiator will focus on the fix and not the fight.

Contact me if you’d like to have a skilled negotiator working on your side to help achieve your “yes”!  Donna Forest 603-526-4116, www.DonnaForest.com, Donna@DonnaForest.com.

You’ll be moving in the right direction with Better Homes & Gardens Real Estate - The Milestone Team.

And Survey Says. . .

The National Association of REALTORS recently published their annual survey of recent home buyers and sellers.  This covers information on national housing data such as demographics, housing characteristics, and consumer experiences.  Below are come interesting highlights from the 2016 survey.

  • First time home buyers made up 35% of the total buyers - up 3% from 2015.
  • 'Buyers typically searched for ten weeks and looked at a median of ten homes before purchasing.
  • 88% of buyers used an agent in their buying process.
  • 88% of buyers got a mortgage to finance their purchase.
  • Sellers typically lived in their home ten years before selling.
  • 89% of sellers worked with an agent to sell their home.
  • Only 8% of the homes sold were for sale by owner (FSBO) and sold for less than agent-assisted sales.

Contact me if you want to work with an agent who knows the pulse of buyers and sellers in today's market!  603-526-4116, Donna@DonnaForest.com, www.DonnaForest.com

Real estate markets are local, and we have the real scoop on ours.  Better Homes & Gardens Real Estate - The Milestone Team

Real Estate Buyer Etiquette

HR.Donna_3144CroppedThere are certain unwritten rules of etiquette buyers should follow when they are out looking at homes.  Most are common sense and just plain ole being courteous!  Below are some tips for being a courteous buyer.

  • Take shoes off.  Mud, snow, rain - you may be out looking in all types of weather so don't tramp through a house with your wet/dirty shoes on.  Take them off and go in your socks or bring clean shoes to wear.  Extra tip - check your socks for holes before heading out!
  • Control your kids.  They shouldn't play with the toys they found or run unattended through the home.
  • Be on time.  When showings are set up, the seller leaves the house, a listing agent meets you there along with your buyer's agent.  Being late impacts many people, not to mention it may  put the whole showing schedule behind.  Unavoidably detained?  Then call your agent for a heads up.
  • Don't spend an hour viewing a home you already decided you dislike.  It's okay to do a quick look and say it's not to your liking.

If you are looking for a buyer's agent to help navigate successful home buying, then contact me and follow me on Facebook!  603-526-4116; Donna@DonnaForest.com; www.DonnaForest.com

You’ll be moving in the right direction with Coldwell Banker Milestone Real Estate.

Don't Miss These Home Tax Deductions

By: From mortgage interest to property tax deductions, here are the tax tips you need to get a jump on your returns.

Owning a home can pay off at tax time. Take advantage of these home ownership-related tax deductions and strategies to lower your tax bill:
Mortgage Interest Deduction One of the neatest deductions itemizing homeowners can take advantage of is the mortgage interest deduction, which you claim on Schedule A. To get the mortgage interest deduction, your mortgage must be secured by your home — and your home can be a house, trailer, or boat, as long as you can sleep in it, cook in it, and it has a toilet. Interest you pay on a mortgage of up to $1 million — or $500,000 if you’re married filing separately — is deductible when you use the loan to buy, build, or improve your home. If you take on another mortgage (including a second mortgage, home equity loan, or home equity line of credit) to improve your home or to buy or build a second home, that counts towards the $1 million limit. If you use loans secured by your home for other things — like sending your kid to college — you can still deduct the interest on loans up $100,000 ($50,000 for married filing separately) because your home secures the loan. Prepaid Interest Deduction Prepaid interest (or points) you paid when you took out your mortgage is generally 100% deductible in the year you paid it along with other mortgage interest. If you refinance your mortgage and use that money for home improvements, any points you pay are also deductible in the same year. But if you refinance to get a better rate or shorten the length of your mortgage, or to use the money for something other than home improvements, such as college tuition, you’ll need to deduct the points over the life of your mortgage. Say you refi into a 10-year mortgage and pay $3,000 in points. You can deduct $300 per year for 10 years. So what happens if you refi again down the road? Example: Three years after your first refi, you refinance again. Using the $3,000 in points scenario above, you’ll have deducted $900 ($300 x 3 years) so far. That leaves $2,400, which you can deduct in full the year you complete your second refi. If you paid points for the new loan, the process starts again; you can deduct the points over the life of the loan. Home mortgage interest and points are reported on Schedule A of IRS Form 1040. Your lender will send you a Form 1098 that lists the points you paid. If not, you should be able to find the amount listed on the HUD-1 settlement sheet you got when you closed the purchase of your home or your refinance closing. Property Tax Deduction You can deduct on Schedule A the real estate property taxes you pay. If you have a mortgage with an escrow account, the amount of real estate property taxes you paid shows up on your annual escrow statement. If you bought a house this year, check your HUD-1 settlement statement to see if you paid any property taxes when you closed the purchase of your house. Those taxes are deductible on Schedule A, too. PMI and FHA Mortgage Insurance Premiums You can deduct the cost of private mortgage insurance (PMI) as mortgage interest on Schedule A if you itemize your return. The change only applies to loans taken out in 2007 or later. What’s PMI? If you have a mortgage but didn’t put down a fairly good-sized down payment (usually 20%), the lender requires the mortgage be insured. The premium on that insurance can be deducted, so long as your income is less than $100,000 (or $50,000 for married filing separately). If your adjusted gross income is more than $100,000, your deduction is reduced by 10% for each $1,000 ($500 in the case of a married individual filing a separate return) that your adjusted gross income exceeds $100,000 ($50,000 in the case of a married individual filing a separate return). So, if you make $110,000 or more, you can’t claim the deduction (10% x 10 = 100%). Besides private mortgage insurance, there’s government insurance from FHA, VA, and the Rural Housing Service. Some of those premiums are paid at closing, and deducting them is complicated. A tax adviser or tax software program can help you calculate this deduction. Also, the rules vary between the agencies. Vacation Home Tax DeductionsThe rules on tax deductions for vacation homes are complicated. Do yourself a favor and keep good records about how and when you use your vacation home.
  • If you’re the only one using your vacation home (you don’t rent it out for more than 14 days a year), you deduct mortgage interest and real estate taxes on Schedule A.
  • Rent your vacation home out for more than 14 days and use it yourself fewer than 15 days (or 10% of total rental days, whichever is greater), and it’s treated like a rental property. Your expenses are deducted on Schedule E.
  • Rent your home for part of the year and use it yourself for more than the greater of 14 days or 10% of the days you rent it and you have to keep track of income, expenses, and allocate them based on how often you used and how often you rented the house.
Homebuyer Tax Credit This isn’t a deduction, but it’s important to keep track of if you claimed it in 2008. There were federal first-time homebuyer tax credits in 2008, 2009, and 2010. If you claimed the homebuyer tax credit for a purchase made after April 8, 2008, and before Jan. 1, 2009, you must repay 1/15th of the credit over 15 years, with no interest. The IRS has a tool you can use to help figure out what you owe each year until it’s paid off. Or if the home stops being your main home, you may need to add the remaining unpaid credit amount to your income tax on your next tax return. Generally, you don’t have to pay back the credit if you bought your home in 2009, 2010, or early 2011. The exception: You have to repay the full credit amount if you sold your house or stopped using it as primary residence within 36 months of the purchase date. Then you must repay it with your tax return for the year the home stopped being your principal residence. The repayment rules are less rigorous for uniformed service members, Foreign Service workers, and intelligence community workers who got sent on extended duty at least 50 miles from their principal residence. Energy-Efficiency Upgrades The Nonbusiness Energy Tax Credit lets you claim a credit for installing energy-efficient home systems. Tax credits are especially valuable because they let you offset what you owe the IRS dollar for dollar, in this case, for up to 10% of the amount you spent on certain upgrades. The credit carries a lifetime cap of $500 (less for some products), so if you’ve used it in years past, you’ll have to subtract prior tax credits from that $500 limit. Lucky for you, there’s no cap on how much you’ll save on utility bills thanks to your energy-efficiency upgrades. Among the upgrades that might qualify for the credit: File IRS Form 5695 with your return. Related: A Homeowner’s Guide to Taxes This article provides general information about tax laws and consequences, but shouldn’t be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws may vary by jurisdiction. Visit Houselogic.com for more articles like this.  Reprinted from Houselogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®

Do You Know How to Boost Your Home Value?

HR.Donna_3144CroppedConsumer Reports, March 2016, published an article on “8 Ways to Boost Your Home’s Value”, based on their survey of 1,573 millennials.  Millennials & downsizing baby boomers are the next wave of buyers.  Sellers should take note of what they are looking for in a home:

  1. A modern kitchen topped the list. Consider adding new stainless steel appliances, quartz countertops, updating cabinets and hardware. Potential bump in sale price 3-7%
  2. Open floor plan w/flexible living space. Consider finishing the basement, carving out space for an office, creating an in-law apartment. Potential bump: 4-6%
  3. Energy efficiency. Consider energy star rated windows, LED lights, efficient water heaters. Potential bump: 1-3%
  4. Stress-free living. Consider updating aging systems, new roof, adding hardwood floors. Potential bump: 3-5%
  5. Have a home for “the ages”.  First floor master, walk-in shower, comfort height toilets. Potential bump: 1-2%
  6. Low maintenance outdoor spaces. Avoid overly lush landscaping. Potential bump: 3-5%.

Contact me if you’d like a copy of the full article so you can make informed decisions on your next home improvement projects.  Donna Forest 603-526-4116, Donna@donnaforest.com, www.DonnaForest.com

“Word of Mouth” is the best advertisement, and we love it when you refer your friends and family to Coldwell Banker Milestone Real Estate.

Steady as She Goes

HR.Donna_3144CroppedThe housing market has settled into a steady groove with home prices expected to follow more normal rates consistent with a balanced market.  Home prices rose 4% nationally in 2015.  Kiplinger forecasts prices to rise 3% in 2016 while CoreLogic Home Price Index predicts a 4-5% increase. What type of buyer will drive the market this year? According to the National Association of REALTORS®, there are 3 main sectors of buyers expected to stimulate the housing sector.

  • Millennials, born about 30 yrs. ago, are starting to realize their financial goals and thus become first-time home buyers.
  • Older baby boomers nearing retirement age will be seeking to downsize and lower their cost of living.
  • Formerly distressed homeowners are expected to actively participate in the housing market as well.

Every market is local and there are certain parts of the country with “hotter” markets than others. Whether buying or selling, contact me if you’d like to know how the local market impacts you.  Donna@DonnaForest.com, 603-526-4116, www.DonnaForest.com.

Real estate markets are local, and we have the real scoop on ours. Coldwell Banker Milestone Real Estate

Reflecting on the 2015 Local Real Estate Market

HR.Donna_3144CroppedAs 2015 comes to an end, I started reflecting on the year and what I’ve observed. I thought it might be helpful for buyers and sellers if I shared a few thoughts. In no particular order, here are my words of wisdom!

  • Most buyers don’t want a project. They don’t have the inclination to fix up a house. Sellers need to repair/ update their homes in order to sell.
  • Sellers should disclose everything; good and bad. Not disclosing will end up costing you.
  • Location, location still holds true. Today’s buyers want to be near amenities and closer to town. Rural areas hold less appeal; targeting about 11% of the buyers.
  • Antique homes take longer to sell - only about 8% of the buyers are looking for one.
  • If you wait to find the “perfect” home to buy, you will never find a home.
  • Home prices have risen since 2013. You will end up paying more for a house the longer you wait to buy.

And lastly, it still is a good time to purchase a home. Low pricing, historically low rates, and good inventory combine to make perfect buying conditions. Thinking of buying or selling? Give me a call!  Donna Forest 603-526-4116, www.donnaforest.com, donna@donnaforest.com

You’ll be moving in the right direction with Coldwell Banker Milestone Real Estate.

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