Real Estate Information

Here are the 9 things you need to do to get your home Sold in this market!

1. View your home as if you were a prospective buyer.

It must be sparkling clean, smelling good, ruthlessly uncluttered and free of owner's personality.

2. Eliminate any unpopular colors and dated decor.

Buyers find it difficult to picture themselves living in a home that doesn't work with their decor or colorings.  In a highly competitive market buyers will reject outdated features or will want to deeply discount the price. 

3.  Occupy or stage the home.

Buyers appreciate a home that is well attended.  A vacant home typically feels cold and empty, while one that is still occupied has a warm, cozy feel, attracting more buyers.  For vacant houses, consider hiring a staging professional that can add emotional spark to make a buyer want to come back.  91% of staged homes sell in less than 60 days and for more money. 

4. Do not overprice the home.

Buyers today are looking for a bargain, and the seller in the end will likely have to bring the price down to meet market demands.  The longer a home sits on the market, the stronger the negotiating position of the buyer.

5.  Select Internet-friendly pricing.

More than 80% of home buyers begin their real estate searches online. Most real estate sites filter the prices in the $25,000-$50,000 increments.  So while a creative price of $555,777 may grab attention, buyers who set their search maximum filter at $550,000 will exclude it.  Additionally, prices ending in 000 (such as $500,000) tend to sell at a larger discount than homes ending in 500 (such as $524,500). 

6.  Do watever it takes to be gone for showings. 

Too much conversation, mixing wrong personality types, and pets are deal killers. The buyer is not there to buy your home but instead to buy your house to make it their home.  Let the buyer mentally move in.

7.  List the home on a Friday.

Most buyers are checking out new listings on Fridays so they can see what is new for the weekend. 

8.  Monitor local foreclosures.

Foreclosures are costing sellers money and have become very aggressive opponents in today's marekt.  If the neighborhood has a lot of foreclosures, wait until they are sold before listing the home, if at all possible.  Most banks are extremely eager to sell, thus creating an underpriced competitor.  If the seller cannot wait to list the home, it will need to be priced competitively with the foreclosures, which can dig significantly into the home's equity.

9.  Keep records.

Foreclosures do not come with any disclosures and are being sold "as is" without any background information.  Sellers who keep unpdated records, photos and permits handy for the buyer to review will make them feel much more confident about buying the home, giving the seller a competitive advantage over foreclosed properties in the neighborhood.  Consider completing a professional housing inspection prior to offering the home for sale and have a copy available for viewing.  In addition, purchase a 1-year Home Warranty for the buyer as it will help the home sell quicker and for more money.  

CQ Press, a Washington based publisher, just completed an analysis of 332 metropolitan areas.  Cities with fewer than 75,000 residents are not evaluated.  Each city is graded based on crimes reported to the FBI in 2008.  Researchers calculate the rate of homicide, rape, robbery, aggravated assault, burglary, and motor vehicle theft per 100,000 people.  Of the top 30 safest cities, Gilbert, AZ ranked #24 and Surprise, AZ ranked #27.  No other Arizona cities ranked in the Top 30.

This credit is back for 2009...it was off the books for 2008!

The amount of the credit increases to 30% of qualified energy-efficient improvements to existing homes and the maximum credit is now $1,500. Previously, the limits were 10% and $300 or $500, depending on the type of improvement.  This credit is for energy efficient improvements such as windows and doors, insulation, etc. Note that the standards will be higher than before: in order to be "qualified", the manufacturer has to certify that its products meet the new IRS standards, so ask before you install.

This one is too good to miss! 

 Here is an overview of the program...

• To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10% of the home's purchase price up to a maximum of $6,500.
• The tax credit applies only to homes priced at $800,000 or less.
• The credit is available for homes purchases after November 6, 2009 and on or before April 30, 2010.  However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
• Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.

For additional information go to www.federalhousingtaxcredit.com

The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence.  The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010.  However, in caes where a binding sale contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.

For sales occuring after November 6, 2009, the Act establishes income limits of $125,000 for single taxpayers and $225,000 for married couples filing joint returns.

The income limits for sales occurring on or after January 1, 2009 and on or before November 6, 2009, are $75,000 for single taxpayers and $150,000 for married taxpayers filing joint returns.

For additional information about the tax credit go to www.federalhousingtaxcredit.com

Operate A Business Out Of Your Home...Get A Tax Break!

Technology has allowed more and more people to operate a business out of their home and capture the tax decuctions available on their 2009 tax return.  However, there are five facts to be aware of:

You must use part of your home exclusively and regularly as your principal place of business. 

The Amount you deduct depends on the percentage of your home you use for business versus total living area. 

There are special rules for certain storage use, rental use or daycare-facility use.  In those cases you are required to use the propertty regularly but not exclusively.

If you are self-employed, for 8829 is required so that the IRS can monitor the computation of your deduction. If your business is incorporated, you charge the corporation a reasonable "rent" and report the income on Schedule E, Part I, "Income or Loss from Rental Real Estate and Royalties" and deduct prorata expenses accordingly.

If your are an employee, the use of your home office must be for the convenience of your employer and there must be no other office location available.  The deduction is part of your itemized Deductions and in this case, your deduction must exceed 2% of your adjusted gross income before it will become effective.

For additional information consult with your accountant or CPA. 

Mark Willis, CEO for Keller Williams Realty just announced that Keller Williams is ranked highest by J.D. Powers and Associates for highest overall satisfaction among home buyers for the second year in a row!