Lee Morof's Real Estate Blog

As you’ll see in this video, unless you have a buyer’s agent remember that the agent works for the seller. Make a point of asking him or her to keep your discussions and information confidential.

Listen to your real estate agent’s advice but follow your own reason on deciding a fair price.

Calculating your offer should involve several factors: what homes sell for in the area, the home’s condition, how long it’s been on the market, financing terms and the seller’s situation.

By the time you’re ready to make an offer you should have a good idea of what the home is worth and what you can afford.

Be prepared for give-and-take negotiation which is very common when buying a home. The buyer and seller may often go back and forth until they can agree on a final price.

With all of the expense that can go into buying and selling a home, it’s good to be aware of what you can claim and how a home can benefit you come tax time. When the New Year rolls around and you’re sitting down to the task of completing your taxes, here are a few things that you’ll want to keep in mind.

Gaining from Capital Gains

In the event that you’ve made money off the sale of your home through a capital gain, it’s possible that you may be able to exclude this amount from your tax filing. If you’ve lived in the home you just sold for at least two of the five years before the sale date, not having to report this amount on your taxes may come as a financial win.

Reporting Your Gain

If you have not lived in your home for two of the five years, you will have to report the sale of your home and the capital gain when you file your taxes. This is necessary whether or not you decide to claim the amount. If this happens to be the case for you, it’s a good idea to educate yourself on ‘Net Investment Income Tax’ before filing your return so you can ensure your claim’s accuracy.

A Two-Year Claim For Capital Gain

While there is definitely a great financial benefit in not having to report your gain in all situations, it’s important to be aware that you can only exclude any gain you’ve received from a home sale every 2 years. So, if it happens to be the case that you’ve moved more than once in the last few years, you will have to report any amount that you’ve made from these home sales.

Selling Your Home At A Loss

The boon of a capital gain is certainly ideal if you’ve made some money on your home, but if you’ve sold your home for less than you paid, you won’t be able to claim this. While the end result may be a bit disheartening, this amount cannot be deducted off of your tax return.

Beyond the benefits of buying or selling your home, there are ways that your tax filing can be more pleasant next year if you know some of these tips. If you think you may be perusing the real estate market in the near future, you may want to contact your trusted real estate professional for more information.

If you’re moving from a large home into a smaller house or condo, you’re probably looking forward to enjoying a lower utility bill and not having to do as much cleaning. But before you move, you’ll want to take certain precautions to ensure that you’re not overwhelmed.

A smaller home won’t have as much room for your belongings, which means you may need to get creative. Here’s how you can downsize without losing your mind.

Decide What You’re Going To Keep

Before you do anything else, choose which of your belongings are coming with you. Unless you’ve habitually been getting rid of things you no longer need over the years, chances are you have a large stash of things you’ll never use again. That’s the kind of clutter you’ll need to eliminate before moving into a smaller home.

The obvious exceptions would be anything of significant sentimental or monetary value, but you’ll want to get rid of lots of your everyday objects – for instance, there’s no reason why you need three soup ladles. Having trouble deciding what to throw out? Here’s a simple rule of thumb: If you can’t remember the last time you used it, you probably don’t need it.

Have Anything In Storage? Find A Storage Solution Now

Most homeowners nowadays have the luxury of large storage spaces like basements or attics – but if you’re moving into a condo or a small starter home, storage will be at a premium. And that means anything stored in your basement, garage, or attic will probably need to find a new home. You’ll want to look for a storage solution earlier rather than later.

Perhaps you could rent a storage locker in your neighborhood, or let children or relatives hold onto your belongings until you decide what to do with them.

On Your Moving Day: Move Large Items First, And Put Away Stored Items Before Anything Else

When the day comes for you to move into your new home, you’ll want to try to find the best configuration for the space right away – before your new home is filled with boxes stacked six feet high. Before you do anything else, move your furniture and other large items into the space first, and get them set up so they’re out of the way.

Once all of your boxes are in your new home, put storage items away before anything else – it’ll help you avoid unnecessary stress and sorting later.

Downsizing can be stressful, but with a solid plan and a great real estate agent, you can find a smaller home and move in without issues. Call your trusted real estate professional for more great tips on streamlining the moving process.

If you’re in the process of simultaneously buying and selling a home, you may be in for the most stressful experience of your life. One UK-based real estate survey of over two thousand people found that buying and selling a house is more stressful than divorce, bankruptcy, a death in the family, becoming a parent for the first time, and even planning a wedding!

It’s not easy, but staying calm will help you to plan for your upcoming home purchase and sale and make the process easier. So how can you avoid the stress? Here are three strategies that will keep you calm, no matter what may happen.

Have A Thorough Plan In Place…

Much of the stress that you’ll experience will probably be the result of poor planning. You may feel stressed if you don’t have enough time to move or if you have to pay mortgages on two homes because your old home isn’t selling fast enough.

Before you get too far into the buying and selling process, talk with a real estate agent and ensure you have a solid plan in place for how you’ll manage buying and selling at the same time. Leave a time and expense buffer for unexpected complications – even if nothing goes wrong, it’s still nice to know you have some room to work with.

…But Be Ready To Improvise If Things Go Sideways

There are a number of ways that buying and selling at the same time might result in complications. Poor timing might mean you need to move out before you have a home to move into, or it might mean you don’t have the money for your new home if your old home hasn’t sold. Be prepared to rent a hotel room, take out a short-term loan, or move your belongings into storage if the sale doesn’t go according to plan.

Talk Out Your Problems With Loved Ones

In times of stress, it’s helpful to turn to friends and family for a helping hand. Studies have shown that having a strong social support network can mitigate the effects of stress, and even the Mayo Clinic suggests reaching out to loved ones when you feel overwhelmed. Don’t be afraid to ask your friends for emotional support, and whenever you have an opportunity to socialize, take it – you’ll find it easier to handle stress after a fun night out with friends.

Buying and selling a home at the same time is bound to be stressful, but an experienced real estate agent can minimize the agony. Call a real estate agent near you to learn how you can successfully buy and sell a home at the same time.

Each real estate market is unique in various ways, and your local real estate agent can help you to become more familiar with the trends in your community. For example, in some areas, it may be common for a seller to pay for at least a portion of the buyer’s closing costs, but this may not be common practice in other areas. While each market may be unique, there are some common trends that you can expect to be rather widespread across many communities throughout the rest of the year.

Buyers Acting Quickly To Make An Offer

In recent years, it was rather common for buyers to take their time researching the market and comparing various listings. There was a feeling that financing would continue to be affordable and that home prices would remain relatively low in many markets due to economic conditions. However, the economy has generally rebounded and market conditions in many areas have improved. There is an increasing feel of urgency in buyers to make a purchase sooner rather than later in order to lock in a great deal.

Younger Buyers Making a First-Time Home Purchase

Many younger adults have notably been sitting on the sidelines and have not been buying real estate at the same level that previous generations did in their 20s and younger 30s. However, as overall real estate market conditions have improved as well as other economic factors like the employment rate, consumer confidence and more, younger buyers are increasingly finding the confidence to move forward with their first home purchase.

More Realistic List Prices

In recent years, it was common for some sellers to list their home for sale based on the amount they owed on their mortgage or their general belief in property value without giving much consideration for market conditions. This may have been out of financial need, a general belief that their property value did not decline significantly even when markets plummeted and more. However, because market conditions have dramatically improved, you will find that the list prices on many properties are much more realistic.

Real estate agents keep a pulse on the trends in your local market, and their insight and guidance can be invaluable to you as you search for a property, structure an offer and walk through the rest of the home buying process. If you are preparing to purchase a home in the coming year, you can begin looking for a friendly and helpful real estate agent to assist you.

When you purchase a new home, escrow is a word that you will hear numerous times from different parties. There are several types of escrow accounts that will be established, and you may be wondering where your money will go when placed in an escrow account or how it is applied to your transaction. By taking time to learn more about the escrow process, you can be a more informed buyer.

Your Initial Escrow Deposit

Within a short period of time after your offer is accepted by the buyer, you will be required to make an escrow deposit to the title company. Typically, you will write a check for the escrow deposit, and your title agent will hold the funds in a non-interest bearing account. These are funds that will be applied to your down payment at closing, and they serve as a good faith of your interest to proceed to the seller.

In the event you back out of the contract after the option period has passed, the escrow deposit may be handed over to the seller and would not be refunded to you.

Escrows for Taxes and Insurance

In addition to this type of escrow deposit, you may also hear about an escrow account for your property taxes and insurance. Setting up this type of escrow account may be a requirement by your lender, but it is not always required. Essentially, this is the account that your property taxes and homeowners insurance will be paid out of. You will pay a specified amount of money into the escrow account to establish a balance at closing, and a portion of your monthly payments will be applied to taxes and insurance as well.

The amount of money that is required at closing will be dependent on the month that you close as well as the annual costs for taxes and insurance.

Essentially, escrow accounts are established to pay for specified expenses that you are required to pay for as a buyer. The initial escrow deposit for the sales contract is a short-term type of escrow account, and the property tax and insurance escrow will remain intact until your mortgage is paid off in most cases.

Now that you know more about the escrows that you will be required to contribute money to as a buyer, you will be a more informed buyer when making your real estate purchase.

Whether you are buying property, selling property or both, the process can be challenging, stressful and even overwhelming at times. Just as you may use various mobile apps to streamline and simplify other aspects of your life, you can also use some well-designed apps to improve your overall experience when you are buying or selling property. These are some of the best apps for you to use as you move forward with your real estate plans.

iBank

This app is not free for you to download, but the small fee that you pay to use iBank may be well worth paying for. This is an app that you can use to track your bank account balances and living expenses. Financial strain is one of the most significant sources of stress for those who are moving, and this is an app that you can use to ease your money management challenges.

PowerOne FinancePro Calculator

The property that you choose to purchase will impact your budget in a number of ways. The most obvious difference will be a change in your mortgage payment, but there are other expenses that will change as well. For example, there will be changes to your property insurance, property taxes, homeowners insurance and more. This is an app that will help you to better estimate your total housing expenses.

GoodReader

You can accumulate a mountain of paperwork when buying or selling property, and GoodReader is an affordable app that will help you keep track of the paperwork. You can scan the items into the system and keep them stored for easy access and portability.

Zillow

You may already use Zillow on your PC or laptop, but you may love the experience of using it on your smartphone. This is a property search app that buyers can use to get details about property listings while on the go. It can also be used to help you learn more about other listings and their prices that your own home may be competing with when you list a property for sale.

Although property search apps like Zillow are a good resource for general information, working with your trusted, local real estate agent is always a better option when you are seriously considering a property purchase. Your agent may also offer a local app that you can download to access the most current, relevant property search data.

ScannerPro

When you need to scan documents to send digital copies of them, ScannerPro is a great app to use. This is an affordable app that works with your iPhone or iPad. Essentially, it creates a photo image of your documents, and you can then transmit them or store them as desired.

Buying and selling real estate can be cumbersome and complicated, but it does not have to be. Working with a trusted real estate agent is always the first step to buying or selling a home. These apps can simplify the process, but they are never a replacement for a knowledgeable real estate agent.

When you make the decision to sell your home, you may eagerly seek assistance from a skilled real estate agent. A real estate agent offers important services that can help you to more successfully and easily sell your home in the fastest amount of time and for the best price. This is a professional who is committed to helping you achieve your goal and who will not be compensated for his or her efforts unless successful. With a closer look at how real estate commissions are earned, you will see that your agent will work hard for his or her compensation.

The Efforts A Real Estate Agent Makes To Sell Your Home

A real estate agent will go to great lengths to help you sell your home. From helping you to establish a fair and competitive listing price to assisting with marketing, contract negotiations and more, your agent will take considerable steps to help you with all stages in the selling process. He or she will often pay for some related expenses out of his or her own pocket, such as printing fees for flyers and snacks and décor for open houses.

No Compensation Unless Your Home Sells

Real estate agents generally will begin working for you as soon as you sign a listing agreement, and they will not collect any fees up-front. All out-of-pocket expenses will not be reimbursed to the agent unless your home sells, and your agent will not be compensated for the many hours he or she spends marketing your home and working with sellers’ agents on your behalf until your home is actually sold. If your home does not sell, your agent will receive nothing for his or her attempts. Keep in mind that the total compensation that you pay for real estate agents’ fees will typically be split between the buyer’s agent and the seller’s agent.

Real estate agents essentially get compensated for their performance and their ability to follow through on what they say they will do for you. Their services are being used by you to sell your home, and you will not pay an agent unless this goal is accomplished. If you are thinking about using the services of a real estate agent when listing your home for sale, you can learn more about the professional services and related agent fees by contacting a real estate agent today.

Taking an extended vacation can seem like a dream come true. You may have plans to spend your summer in Europe, your winter in the Caribbean or even a full year or longer exploring a different region. If you have the luxury of taking an extended vacation, you may have your sights set on adventure and relaxation.

However, you also need to consider the practicality of leaving behind your home and belongings for an extended period of time. A great idea is to take on a long-term tenant for your home, and there are a number of benefits that you can enjoy by doing this.

Generate Income From Your Home

When you lease your home to a long-term tenant, you will be able to generate a monthly income from the property. This can be used to pay for your mortgage, property insurance and other related expenses while you are gone. Essentially, it can make it more affordable for you to take your trip for an extended period of time.

Decrease Your Maintenance Expenses

When you are away from your home, you may still have maintenance and upkeep chores to do. When you are home, for example, you may easily be able to water your lawn and mow the grass on your own. You may deal with a leaky pipe before it becomes problematic and causes considerable damage to the home. When you are gone, you may need to pay for a lawn service, and you have nobody to watch over the interior of the home. However, when you lease your home to a tenant, the tenant may be responsible for caring for the yard. In addition, he or she can alert you to issues that develop inside the home.

Someone to Keep an Eye on Your Property

When a home appears to be vacant, it is more likely to be vandalized or burglarized. A tenant will give your home an occupied look and will decrease the risk of criminal activity. In addition, the tenant may change your air filters, replace batteries in the smoke detectors and take other steps to keep the home in great condition for you while you are gone. You can specify your requirements in the lease.

If you are planning an extended vacation and you are looking for a convenient way to ensure that your home is taken care of while you are gone, consider the benefits of taking on a long term tenant. You can speak with a real estate agent to learn more about the market rental rate for your home.

There are few things that can be more stressful than buying or selling a home. When you are buying and selling a home at the same time, your stress level may understandably skyrocket through the roof. There may be financial aspects of both transactions that may be cause you stress, and you may be dealing with logistical issues or simply feel stressed by the stacks of documents piling up for both transactions. While this will inevitably be a challenging time in your life, you can more easily navigate through the transactions with success by following a few tips.

Consider the Timing of Both Transactions

One of the best things you can do when buying and selling a home at the same time is to plan ahead and consider the timing of both transactions. You may get lucky enough to get an offer on your home from a buyer who wants to close just a few days before you close on your new home. However, it is more likely that these two transactions may be finalized weeks or longer apart from each other. You may need to plan on finding an interim home or paying double mortgages for a period of time. You may consider which of these two options is more preferable to you based on your work situation, your family’s needs and your budget.

Prepare a Budget Ahead of Time and Update It Periodically

Financial stress can mount during this period of time. You will need to make a good faith deposit and pay for third party reports and mortgage application fees for your new home purchase. You may also need to pay money to make repairs and to stage your current home before you list it. It is common to rent a storage unit and to pay for boxes and moving supplies as well.

In addition, a buyer for your current home may request that you make repairs to your home before closing. It is important that you prepare a budget so that you can pay for all of these expenses as they arise, and you should consider leaving yourself ample funds for unexpected expenses. If you run into a cash crunch, consider completing the sale of your current home entirely before going under contract with your new home purchase.

Use the Same Real Estate Agent for Both Transactions

The knowledge and support of a real estate agent can be beneficial to you for both transactions, and you may consider using the services of the same agent for both. Dealing with one person who is familiar with your goals and needs can be truly beneficial to you throughout the entire process, and he or she may offer insight about the best steps to take to make the transition from one home to the other smoother for your family.

While buying and selling real estate can be stressful, you do not have to make the process more difficult than it needs to be. You can set up a time to meet with a real estate agent today to begin discussing your plans and to take the initial step.