The old saying “a picture is worth a thousand words” definitely holds true in real estate marketing. With 90% of buyers starting their search online, it is imperative to have good photos and plenty of them in as many websites as possible. Listings with 3 or 4 photos, bad lighting or cluttered rooms will be skipped over by buyers. Sellers should be preparing their house before the agent arrives. This means extensive de-cluttering – removing items from countertops & on top of cabinets, clearing knick-knacks, removing everything from the refrigerator, getting rid of furniture if necessary, and neutralizing eye-popping colors. And of course, curb appeal is everything. Essentially the home should be staged for maximum effect. A competent agent will use a wide angle lens, ensure there is adequate lighting and take lots of pictures. Sellers should go online and view how their listing compares to other properties for sale. There should be 24 good photos in the Multiple Listing Service. If there aren’t, it may be time for a re-shoot! If you're interested in selling your home, give me a call at 603-526-4116 or email donna@donnaforest.com.
Yes and no. There are a lot of misleading emails that make you think every seller will have to pay an additional tax when they sell their house. Yes, there is a new federal 3.8% sales tax on real estate to pay for the Affordable Care Act. It was passed by Congress in 2010 with the intent of generating an estimated $210 billion to help fund health care and Medicare overhaul plans. The reality is, only a small percent will end up paying, starting in 2013. It applies to those with incomes over $200,000 ($250,000 if married, filing jointly). Even then, the tax doesn’t apply to the first $250,000 (or $500,000 if married, filing jointly) on PROFITS from the sale of a personal residence. This exclusion doesn’t work for vacation homes or rental properties. It’s possible that investment income could be generated by the sale of real estate. But it’s quite a stretch to call it a real estate tax.
Contact me and I’ll be glad to email you a PDF document from the National Association of REALTORS® explaining this tax. Please check with your accountant for the most accurate and up-to-date information.
Donna Forest, Broker Associate, 603-526-4116
In every real estate transaction, deposits are required to show the sincerity and strength of the buyer’s intent to purchase the property as well as to provide liquidated damages to the seller in case of default by the buyer. Sellers will sometimes eye these funds as potential money in their pockets and assume that the deposit will just be handed over to them if the buyer defaults. The reality of it is, that for the deposit to be turned over, the release has to be signed by both seller AND buyer. This release allows the real estate company to withdraw the money from the escrow account and distribute it appropriately. However, the chances of the buyer just signing over thousands of dollars without an argument are very slight. If both parties won’t agree to signing, most likely the process will end up in mediation or court. To avoid this situation, it is always best to find compromises that will help resolve any contractual disputes as amicably as possible. An experienced REALTOR® can be invaluable in helping the sale continue to move forward and avoid time-consuming and costly litigation. Give me a call if you're interested in buying or selling a home, 603-526-4116. I'd be happy to share my expertise. www.donnaforest.com
So far, it’s been a bumpy 6 years, as home prices correct themselves from the peak of 2005 (values saw double digit increases from 2000 to 2005). The median price declines we are now experiencing seem more painful because of this boom. -1.9% in 2006, -1.6% in 2007, -9.9% in 2008, -9.8% in 2009, +1.4% in 2010, -6.2% in 2011 The S&P/Case-Shiller Home Price Indices show that as of March 2012, average home prices across the U.S. are back to 2002/2003 levels. Where are we going? According to a March 2012 survey of economists, real estate experts and investment and market strategists conducted by Pulsenomics, home values are predicted to slowly rise starting 2013. -0.72% in 2012, +1.39% in 2013, +2.55% in 2014, +3.18% in 2015, +3.32% in 2016 What does all this mean? For sellers, realistic pricing is of utmost importance if you wish to sell. Price for today’s market; not what it was in 2005. For buyers, there may never be a better time to buy than this year. Call me if you want to work with a REALTOR® in the know! 603-526-4116
Donna Forest, Broker Associate
Excellent conditions, both in terms of weather and purchasing leverage, lifted first quarter residential home sales to its highest level since 2007, according to data released by the New Hampshire Association of Realtors. Low snowfall totals, combined with low prices, low interest rates and relatively high inventory, opened the door for 2,223 homes to be sold in the first three months of 2012, a 17 percent increase over the 1,903 sold through March 31 in 2011. Median price on those sales, meanwhile, dropped nearly five percent, from $197,500 in the first quarter of 2011 to $188,000 in the same period 2012. “This is about supply and demand, and it’s about home prices continuing to adjust to a market that has been favoring buyers for several years now,” said NHAR President John Rice, a 40‐year veteran of the real estate industry and an agent with Tate & Foss Sotheby’s International Realty in Rye. New Hampshire residential sales for March‐only were also ahead of last year’s pace by 17 percent, from 769 in 2011 to 896 in 2012. Median price in March 2011 compared to March 2012 declined 3 percent, from $195,000 to $188,750. In terms of local markets, each of the state’s 10 counties saw unit sales increases in the first quarter compared to the same period a year ago, including a 65 percent gain in Sullivan County, 42 percent in Coos County, 31 percent in Cheshire County, and 18 percent in the state’s largest, Hillsborough County. Only Merrimack and Coos counties showed first quarter median price increases. March 2012 data residentialMarch 2012 data condo-1 Rice said he believes the surge in sales is likely to mean the beginning of the end of dropping prices. “That’s just fundamental, free market principles,” he said. “More sales equals less inventory, which eventually equals higher prices. “In future years we’ll look back and be able to pinpoint when prices stabilized. We can’t know that point while we’re going through it, but if this pace keeps up, I can’t imagine we’re too far from it right now.” Source: Press Release, New Hampshire Association of REALTORS®, Dave Cummings, Director of Communications
Historically, our spring is heralded by the arrival of buyers, starting to look for their new home so they can be settled in before school starts again or if a vacation home buyer, be able to enjoy the summer season. This spring is different. Why? Due to the mild winter, buyers have already been out buying for months. And the homes that are selling are the ones that have a compelling price to attract buyers. Smart investors are snapping up the bargains. Overpriced inventory doesn’t stand a chance. Indicators are that home sales will increase in 2012. This does not mean that home prices will increase as well. Supply still exceeds demand. The Home Price Expectation Survey asked 104 leading industry experts where they thought prices would be at the end of 2012. These experts believe prices will depreciate by about 1%. Bottom line, if you are a buyer or a seller, it won’t pay to wait. If you are looking for an expert to guide you thru the buying or selling process, then give me a call! 603-526-4116; donna@donnaforest.com; www.donnaforest.com
Think losing the mortgage interest deduction would be no big deal? We bust seven myths to show why the cost is bigger than you think.
- The mortgage interest deduction helps mostly middle- and lower-income families.
- 65% of families who use it earn less than $100,000 per year.
- 91% earn less than $200,000 per year (that’s where most economists draw the line between rich and middle-class).
- Only 9% earn more than $200,000 per year.
- Raise property taxes. Not only will home owners pay more in taxes, renters won’t escape unscathed either as landlords raise rents to cover their costs.
- Cut services that everyone—renters and owners—enjoys.
- The $10,000 deduction you have now saves you $2,500 on your taxes (25% x 10,000).
- The 12% credit would save you only $1,200 (12% x 10,000) on your taxes.
- In this scenario, if the mortgage interest deduction is changed to a 12% credit, you’d lose $1,300 (the current $2,500 savings minus the $1,200 you’ll save under the 12% plan).
- $26,685—a 15% drop in value for the median home valued at $177,900.
- A proportionally smaller gain in overall home equity over your lifetime, because your home now starts from a lower value.
Everyone is a real estate expert!
Your house is listed for sale with a REALTOR®. Your neighbor down the street tells you that it is priced way too low and you should certainly be able to get more money than that for it. Or you just sold your house and your brother is telling you that it sold for too little. Sound familiar? When it comes to real estate, everyone has an opinion – from your dentist to your best friend. The reality of it though, is you need to trust what your REALTOR® says. After all, you hired her/him for her/his experience and knowledge of the market. She/he researched the properties sold, the current competition, and understands what the market is doing. Your REALTOR® is your best source of information regarding the sale of your house or land. While it is nice to think that your house is worth more money because your neighbor says so, it is market conditions that really set the value. Family and friends may have good intentions, but they usually don’t have the professional experience to support their opinions.
Give me a call if you would like to work with a REALTOR® that you could trust to give you the best real estate advice available. 603-526-4116; donna@donnaforest.com.
Donna Forest, Broker Associate
July 2011 housing market data from the New Hampshire Association of REALTORS® Director of Communications, Dave Cummings.
New Hampshire residential home sales rose substantially in July 2011 compared to July 2010, but the state’s Realtors stressed the same message they had been offering in prior months, when the news hadn’t been as good: Don’t consider any of it a trend just yet.
Statewide, 1,048 homes were sold in July, a 29 percent increase from the 811 that were sold in July 2010, according to data released this week by the New Hampshire Association of REALTORS (NHAR). Those homes sold at a median price of $216,000 this year, 2 percent below the $220,000 of July 2010.
The sharp increase in sales was due in part to the significant drop-off in sales of last July, which came immediately following the expiration of the $8,000 home buyer tax credit incentive.
Just as 2011 home sales through June were light compared to sales impacted by the tax credit rush through June 2010, the July 2011 sales looked strong compared to a relatively light July 2010.
“We’ve said for some time that year over year numbers won’t really tell us much until we’re completely clear of any comparisons impacted by the tax credit,” said NHAR President Tom Riley, a 35-year veteran of the real estate industry and president of Riley Enterprises in Bedford. “The further along we get in the year, the more relevant and telling these comparisons become.”
In general, Riley said, the housing market remains an issue dictated by consumer confidence. “Housing remains one of the best long-term investments available,” he said. “That hasn’t changed. What has changed is that consumers in general are feeling less secure with regard to the economy, and in many cases their own personal circumstances, and when that happens people are more likely to stay put.
“We certainly respect that, but it’s also important to point out that for those who are in a position to move, buying conditions are excellent.”
In local markets, July unit sales increased in nine of 10 counties (and stayed the same in Carroll County), while six of 10 counties saw an increase in median price, one remained unchanged, and three experienced declines.
By: G. M. Filisko
Understanding how appraisals work will help you achieve a quick and profitable refinance or sale.
1. An appraisal isn’t an exact science
When appraisers evaluate a home’s value, they’re giving their best opinion based on how the home’s features stack up against those of similar homes recently sold nearby. One appraiser may factor in a recent sale, but another may consider that sale too long ago, or the home too different, or too far away to be a fair comparison. The result can be differences in the values two separate appraisers set for your home.
2. Appraisals have different purposes
If the appraisal is being used by a lender giving a loan on the home, the appraised value will be the lower of market value (what it would sell for on the open market today) and the price you paid for the house if you recently bought it. An appraisal being used to figure out how much to insure your home for or to determine your property taxes may rely on other factors and arrive at different values. For example, though an appraisal for a home loan evaluates today’s market value, an appraisal for insurance purposes calculates what it would cost to rebuild your home at today’s building material and labor rates, which can result in two different numbers. Appraisals are also different from CMAs, or competitive market analyses. In a CMA, a real estate agent relies on market expertise to estimate how much your home will sell for in a specific time period. The price your home will sell for in 30 days may be different than the price your home will sell for in 120 days. Because real estate agents don’t follow the rules appraisers do, there can be variations between CMAs and appraisals on the same home.
3. An appraisal is a snapshot
Home prices shift, and appraised values will shift with those market changes. Your home may be appraised at $150,000 today, but in two months when you refinance or list it for sale, the appraised value could be lower or higher depending on how your market has performed.
4. Appraisals don’t factor in your personal issues
You may have a reason you must sell immediately, such as a job loss or transfer, which can affect the amount of money you’ll accept to complete the transaction in your time frame. An appraisal doesn’t consider those personal factors.
5. You can ask for a second opinion
If your home appraisal comes back at a value you believe is too low, you can request that a second appraisal be performed by a different appraiser. You, or potential buyers, if they’ve requested the appraisal, will have to pay for the second appraisal. But it may be worth it to keep the sale from collapsing from a faulty appraisal. On the other hand, the appraisal may be accurate, and it may be a sign that you need to adjust your pricing or the size of the loan you’re refinancing.
More from HouseLogic
How to use an appraisal to eliminate private mortgage insuranceUnderstanding the assessed value of your home for tax purposesUnderstanding the amount at which to insure your home
Other web resources
More information on appraisalsHow to improve the appraised value of your home G.M. Filisko is an attorney and award-winning writer who’s had more than 10 appraisals performed on her properties in the past 20 years. A frequent contributor to many national publications including Bankrate.com, REALTOR® Magazine, and the American Bar Association Journal, she specializes in real estate, business, personal finance, and legal topics. © Copyright 2011 NATIONAL ASSOCIATION OF REALTORS® Visit HouseLogic.com for more articles like this. Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®