Showing your home - tips for sellers

Selling a home while living in it is not easy – you want it to look its best when potential buyers come around. Still, with a plan in place, you can minimize the panic. Here is a checklist to help.

1. Tone it down! Turn off all electronics to cut down on noise.
2. Make it bright! Turn on all the lighting to illuminate every room. For daytime showings, open all window coverings.
3. Clear the clutter! Stash magazines, newspapers and mail in a basket or box you can easily slip under a bed or tuck quickly in a dresser drawer.
4. Stifle the odors! Be sure to remove the source of the odor, then open the window or door to let in some fresh air. If needed, place a small bowl of white vinegar or fresh coffee grounds in the area of unpleasant smells to absorb odors.
5. Round up the pets! Keep them safe, get them out of the way and make the buyers comfortable. Secure pets in their crates, outdoors or with you or a neighbor.
6. Check floors! Use a hand vacuum or damp cloth to remove debris or spots. Do a complete sweep-up if you have a time.
7. Make it comfortable! Turn down the air conditioner a degree or two to make it cool and inviting inside. Circulate air with fans on low if no AC
8. Kitchen: Clean and put away dishes ( or hide them). Wipe counters and fixtures.
9. Bathrooms: Wipe counters, fixtures and mirror. Make sure toilets are clean and lids closed. Hang fresh towels neatly. Move toiletries under cabinet or into a closet.
10. Bedrooms: Make bed, put the clothes away in drawers, hide them in the hamper, washer or dryer… 11. Children’s room: Gather toys, games and books, and put them back on bookshelves or in bins.
12. Living room or family room: Remove the clutter; put away books; stash knickknacks and family photos out of sight.
13. Entry way: Hang all coats , hats, umbrellas, keys and bags in a closet- not on the wall hooks. Hide the shoes. Clear away papers and mail.

What Sellers Need To Focus On

 If you are thinking of selling your home, it’s good to know what today’s buyers are looking for in a home they want to buy. Remember, these are national trends.

  HOT

1. Stainless 
2. Granite 
3. Hardwood floors 
4. Chrome, brushed nickel or oil rubbed bronze fixtures 
5. Earth tones contrasted with bright colors 
6. Eco-friendly 
7. Open spaces

Do you deed transfer to kids?

Question: I would like to add my daughter's name to the deeds of properties that I own. What is the process and the cost involved in doing this and how should it be worded so that she owns the property free and clear once I am deceased? --D.K. Answer: I Bottom line: In most cases, you are doing a disservice to your children if you put them on title with you. Let me explain. Let's say you bought your home years ago for $100,000 and it is now worth $300,000. If you die today, your daughter will inherit the house and take advantage of the "stepped-up" basis. That means that her tax basis is the value on the date of death, in our example $300,000. Ignoring for this discussion inheritance and estate tax issues, if she sells the property immediately for $300,000, she will have made no gain and thus will not have to pay any capital gains tax. On the other hand, if you gift her half of the house, her basis is yours. Now you die and the property is worth $300,000. Her basis is $50,000 from the gift and $150,000 stepped up from your death for a total of $200,000. If she sells now, she has made a gain of $100,000 and will have to pay capital gains tax. To understand this in simple -- nonlegal -- language, the tax basis of the person who gifts property (giftor) becomes the tax basis of the giftee. If you really want your daughter on title, why not sell her half of the property. Then her basis will be what she paid for it. Talk with your financial advisers for your specific situation.

New 3.8 percent tax on investment income will take effect

Shortly after federal government enacted healthcare reform in 2010, there was considerable concern over a last-minute addition to the legislation: a 3.8% tax on investment income of upper-income households to help shore up Medicare. The tax takes effect on January 2013.

 Passed by Congress in 2010 with the intent of generating an estimated $210 billion to help fund President Barack Obama’s health care and Medicare overhaul plans — could be relevant to your clients.

 Understand that this tax WILL NOT be imposed on all real estate transactions, a common misconception. Rather, when the legislation becomes effective in 2013, it may impose a 3.8% tax on some (but not all) income from interest, dividends, rents (less expenses) and capital gains (less capital losses). The tax will fall only on individuals with an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000 AGI.

  Applies to: Individuals with adjusted gross income (AGI) above $200,000 Couples filing a joint return with more than $250,000 AGI
Types of Income: Interest, dividends, rents (less expenses), capital gains (less capital losses)
Formula: The new tax applies to the LESSER of Investment income amount Excess of AGI over the $200,000 or $250,000 amount 

New tax, dedicated to Medicare funding, is imposed on the so-called “earned” income of higher income individuals. Th is earned income tax has a much lower rate of 0.9% (0.009). Like the tax described in this brochure, this additional or alternative tax is based on adjusted gross income thresholds of $200,000 for an individual and $250,000 on a joint return. Like the 3.8% tax, this 0.9% tax is imposed only on the excess of earned income above the threshold amounts.

Another way of thinking about these new taxes is to think of the 3.8% tax as being imposed on a portion of the money that you make on your money — your capital (sometimes referred to as “unearned income”). Th e 0.9% tax is imposed on a portion of the money you make on your labor — your salary, wages, commission and similar income related to earning a livelihood. ★

Call Tatyana Baytler: Real Estate Broker - 443-527-4375

HOUSING FINANCE AND POLICY UPDATES

HOUSING FINANCE AND POLICY UPDATES FREE Independent Foreclosure Review This policy is for borrowers who believe they suffered financial injury as a result of errors, misrepresentations, or other deficiencies in foreclosure proceedings. DEADLINE: Complaint forms must be submitted online or postmarked by July 31, 2012 Specified mortgage servicers were required to send mailings to potentially eligible borrowers and former homeowners on how to request a review of their case with the mandatory form. But lenders may not be able to reach borrowers who lost their homes to inform them that they may be eligible. Know anyone who has suffered financial harm due to errors or other problems in the foreclosure process? He or she may be eligible for FREE Independent Foreclosure Review. BEWARE of anyone who offers to complete the Request for Review Form for a service fee. Eligibility: The mortgage must have been in active foreclosure process between January 1, 2009, and December 31, 2010; the property securing the loan must have been the primary residence; and the mortgage must have been serviced by one of the identified mortgage servicers. For more information and to see a list of the mortgage servicers, go to: https://independentforeclosurereview.com or call 1-888-952-9105 M-F, 8 a.m.–10 p.m. ET, or Sat. 8 a.m.–5 p.m. ET. National Foreclosure Settlement The agreement will be executed over the next 3 years. In the next 3 to 6 months, a settlement administrator, Maryland Attorney General and mortgage servicers will work to identify homeowners eligible for immediate cash payments, principal reductions and refinancing. Banks include: Ally Financial/GMAC, Bank of America (plus Countrywide), CitiBank, JP Morgan Chase (plus Washington Mutual) and Wells Fargo. Those eligible will receive letters. (Loans owned by Fannie Mae or Freddie Mac are NOT involved in the settlement.) The settlement provides financial assistance for: • Individual borrowers who were victims of unfair servicing practices and were foreclosed upon between January 1, 2008 and December 31, 2011. • Homeowners needing loan modifications now, including first and second lien principal reduction. Servicers must work off an estimated $808 million in principal reduction and other forms of loan modification relief for Maryland homeowners. • Borrowers who are current in their payments, but underwater. Eligible borrowers may refinance at today’s historically low interest rates. Servicers must provide an estimated $64 million in financing relief for Maryland homeowners. • Borrowers who lost their homes to foreclosure without losing the right to sue banks. An estimated $24 million will be distributed to these Maryland borrowers. • Housing counseling and other state-level foreclosure prevention and housing programs. For more information on the Mortgage Servicing Settlement, go to: www.NationalForeclosureSettlement.com For loan modifications and refinance options, borrowers may be contacted directly by one of the five participating mortgage servicers. Borrowers may contact the banks directly, if additional information or verification is needed. BEWARE! Scammers are already at work trying to capitalize on the national mortgage settlement to access victim’s personal financial information—or worse, charge fees for this FREE program Maryland Attorney General’s Office Call Center: 410-576-6300 or 1-888-743-0023 Maryland HOPE Hotline: 1-877-462-7555 Capital Area Foreclosure Network (CAFN) (Statewide Referral to Spanish/Espanol Language Assistance.) 1-888-794-8830 (9:00 am to 5:00 pm, M- F) Ally//GMAC: 1-800-766-4622 Bank of America (and Countrywide): 1-877-488-7814 Citi: 1-866-272-4749 JPMorgan Chase (and Washington Mutual): 1-866-372-6901 Wells Fargo (And Wachovia) : 1-800-288-3212 News on Home Affordable Foreclosure Alternatives (HAFA) The Federal Housing Finance Agency (FHFA) has announced a new directive that requires servicers of Fannie and Freddie loans to roll out in stages, starting in June 2012: • Review and respond to borrower requests for short sales within 30 days after receipt of a short sale offer and a complete borrower request. • If the review is still under way after 30 days, give the borrower weekly status updates. • Advise the borrower of the final decision within 60 days after receipt of a short sale offer and a complete borrower request. The new timelines apply both to HAFA loans and to other short sales approved by Fannie Mae and Freddie Mac. Additional enhancements are planned by the end of 2012 addressing borrower eligibility, simplifying documentation, valuing property, payments to subordinate lien holders, and mortgage insurance. FHA Premiums for Refinance In April, FHA increased upfront and annual premiums for new loans. But many real estate professionals missed the second part of the announcement: PRICE CUTS for FHA Streamline Refinance Option for loans originated on or before 5/31/2009, effective 6/11/2012 Upfront premium, 0.01%; monthly premium 0.55%. Estimated savings of $3,000 per year for the average loan. Borrower must be current on payments, underwater mortgages are okay, “compare ratio” is not required by lenders. Go to: http://portal.hud.gov/hudportal/ HUD?src=/program_offices/housing/sfh/ buying/streamli (or contact a HUD certified housing counselor or any HUD/FHA approved lender)

New Md. laws affecting property tax credits, foreclosures, ground rent

A grab bag of housing-related legislation passed in the Maryland General Assembly's recently completed session. Here are the highlights:

Homestead credit penalties (HB 1081): Authorizes local governments to hit people with bigger penalties if they are found to be receiving a Homestead Property Tax Credit (or credits) they don't qualify for and "willfully misrepresented facts" to get the break. The homestead credit caps big tax increases as a result of property appreciation, but it is only for primary residences.

No homesteads for banks (SB 123): Requires that banks -- or whoever purchases a home at foreclosure auction -- send a copy of the court ratification notice to the state Department of Assessments and Taxation so the new owners don't reap the benefit of homestead tax credits intended for the previous owners. Previously, the assessments agency said it had to wait until the new owner recorded the deed to transfer title, which frequently took months -- even years.


Assembly OKs bill imposing fines for improper homestead tax credits
Consumer group gives thumbs up to foreclosure registry

Group grades condition of foreclosures, offers a thumbs down
Foreclosed property registry (HB 1373): Requires banks and other owners of foreclosed properties to send ownership and maintenance contact information to a state-run registry so officials and neighbors know who to call if there's a problem.

Pre-foreclosure mediation/expedited foreclosure for vacants (HB 1374): Expands the mediation program for Maryland homeowners behind on their mortgages so borrowers and lenders don't have to wait until the eve of foreclosure for a sit-down meeting if they both agree to it. State officials said they hope earlier intervention will lead to better alternatives than foreclosure. The legislation also allows mortgage servicers to foreclose more quickly on (verified) vacant properties, intended as an anti-blight measure.

Ground-rent registry (HB 177): Requires that owners of ground rent register their property in order to collect payments from homeowners. The law is intended as a replacement for a requirement to register by September 2010 or forever lose the ground rent, struck down by the state's highest court as unconstitutional.

Any other newly passed legislation you think affects housing? Chime in with a comment.

Seven Reasons To Love A Tough Market

Today’s housing market is challenging. That’s a given.
That’s given. It’s tough on buyers and sellers alike, who are anxious, not knowing where the real state market is going next.
They both want –and often need – a great deal whether they are buying and selling. Our current real estate market requires a special perspective no matter which side settlement table you are on.


Savvy buyers can readily find a lot to love in today’s market. Buyers feel the love from low interest rates and competitive prices to a huge selection of homes and incredible investment opportunities.
Look past the national headlines –which are gloomy at best and don’t apply at worst – to our local real estate market. Here is where buyers benefit the most when the going is tough. Unless, of course, you wait and miss out.

Smart Sellers, on the other hand, can benefit from a buyer’s market as well. Successful home sellers in today’s market know they must price their home correctly and be flexible. Providing a buyer with a great deal on their home opens the door for sellers to move on to their own next step- whether it’s moving up, downsizing or relocating. Smart sellers also know they may give up on price, they can make up- and then some-on their next home purchase. That’s another bright side of today’s real estate market.

Take a moment to learn the seven reasons why it’s a great time to buy a home. And, be sure to contact us when you are ready to make a move.

1. Loving Low Interest Rates
Historically low interest rates continue to allow home buyers to afford more home for their money. Lower interest rates reduce your monthly payment and increase your buying power. Locking in at a low, fixed-interest rate means your monthly loan payment will never change over the course of your loan.
2. Embracing Investment Property
Even if you are not in the market to buy a primary residence, you should take a look at the properties available for sale as investments. With ever-increasing numbers of families looking for rent, it’s and opportune time to invest in a rental property. Being a landlord can be a rewarding experience when you find the perfect property.
3. Attractive Home Prices
Home prices have never looked better! Many sellers are motivated to get their homes sold and are pricing accordingly. Don’t be afraid to make an offer on a home or to work with us to negotiate a great price on a great home.
4. Wondrous Selection of Homes
If your “needs and wants list” of home futures can’t be contained, now is the time to be looking at homes. The selection available in our area is outstanding. No matter what your budget, family size or life stage, we can help you find the home that fits.
5. Digging Distressed Properties
Others’ foreclosures, bank-owned and short-sale properties can be the key to your next home. Don’t overlook distressed properties, as you may uncover a hidden gem priced right so you can make upgrades and improvements without breaking your budget. Distressed doesn’t mean a steal, but it can often lead to a great deal.
6. Engaging You Financial Options
If your are tired of seeing your savings yo-yo in the volatile stock market, real estate is a great asset balancer. Consult your financial professional to make sure you have the savings to spare. When you are ready, we can help you find great investment property or a home to buy for all-cash if you desire.
7. Winning Over Motivated Sellers
Successful sellers keep the market going. Homeowners are eager to sell their homes to buyers who make realistic offers. It is crowded market for sellers, but the ones who are motivated will offer a great price and may throw in incentives ( e.g., helping with closing costs, etc.) or much-valued sweeteners –home warranty- that are as good as cash.
8. Professional Partner
When you are buying or selling a home, it is difficult to go it alone. We can help you every step of the way when it comes to getting a great deal on a new home. Feel free to contact us anytime you are ready to jump into real estate market to buy or sell. We would love to work with you!


Call Tatyana Baytler with any real estate question: 443-527-4375

www.LagretRealEstate.com

Five mistakes even good homeowners make

Have you ever accidently left a
candle burning unattended? Or left home without turning on the security system? You probably made a mental note to yourself not to do it again but otherwise didn’t think much about it.

But next time, you might not get so lucky. A simple “uh oh” could lead to thousands of dollars in damage to your home.

“It’s a mindset of thinking about the consequences of things, of what could go wrong,” says Tim Reinhold, Ph.D., senior vice president of research and chief engineer for the Institute for Business and Home Safety.

Here are five common safety mistakes that even good homeowners make:

Mistake 1: Not cleaning out the filter on your clothes dryer
Why it’s risky: Fire. Those wads of lint that get caught in your dryer’s filter can pose a major fire hazard. “It’s hot enough, particularly if you’re running the clothes on the dry setting instead of just permanent press,” says Reinhold. According to the Consumer Product Safety Commission, dryers cause more than 15,000 fires annually.

Your strategy: Be sure to completely empty the lint trap every time you use your dryer. Also, make sure that your dryer ducts are metal, since they’re less likely to sag and allow lint to build up.

Mistake 2: Putting cardboard boxes from recent big-ticket purchases out on the curb with the garbage
Why it’s risky: Theft. By placing boxes in a visible location, you’re sending a signal to burglars that you have valuable items in your home.

Your strategy: “Cut those boxes up and put them into the garbage or recycling bin,” recommends ERIE Agent Beverly Goff of Northern Insurance in Fort Wayne, Ind.

Mistake 3: Neglecting tree branches that hang close to your home
Why it’s risky: Roof or other property damage. A snowstorm or even high winds could sweep through your neighborhood and knock those branches right off onto your roof, causing serious damage. Ice can also weigh down branches, causing them to snap off.

Your strategy: Consult an arborist or tree surgeon about any trees in your yard that might present a potential hazard. “You’ve got to think about pruning them back, or if it’s an older tree, having it removed altogether,” says Terry McConnell, ERIE’s vice president and manager, Personal Lines Underwriting.

Mistake 4: Leaving your outside hoses connected to the house during the winter
Why it’s risky: Potential water damage. It’s easy to forget that you never stored your hoses after the weather cooled off. But Goff warns, “Get those hoses disconnected. If you don’t disconnect them, you run the risk of water seeping into the internal walls. Often this type of loss is not detected in a timely manner, causing serious widespread damage, plus the health risk of black mold.”

Your strategy: Disconnect the hoses from the outdoor faucets, roll them up and store them inside your garage or basement before cold weather sets in.

Mistake 5: Not checking the status of the water hoses for your appliances
Why it’s risky: Water damage. Hoses for washers and refrigerators do wear out and need to be replaced before they spring a leak. According to Reinhold, the water supply line to the icemaker can also be a water leak waiting to happen. “The plastic piping on the back of the fridge a lot of times will get brittle with age,” he warned.

Your strategy: Replace washing machine hoses every five years. If you see the plastic line along the back of the refrigerator becoming discolored (yellow or brown), have an appliance repair expert check it out.

Investing in Real Estate: Economists expect rents to continue to rise in 2012

Common Mistakes To Avoid

Investing in real estate can be rewarding- and profitable – if you have the right property in the right area at the right rental price. Make a single mistake in your investing plan and you can end up facing problems that will eat away at any profits you hoped to gain.
Contact me at any time with your property investing questions. I am here to help you to avoid these common investor mistakes.

Cheap Does Not Always Mean Good

Just because the property is inexpensive doesn’t make it a great investment. If the property does not fit the needs of your target renters, you’ll be unlikely to rent the property continuously and effectively and will likely lose money in the long term on the ‘cheap’ deal.

Empty Equals Lost Money

If your renters turn over quickly, leaving gaps of time the property unrented, you’ll likely not make your investment goals. Check on the rental history of a property before purchase and also examine the amenities around the home including proximity to transportation, shopping and workplaces as well as the quality of the schools. If the property is not in an attractive area, fewer renters will want to live there.

Know Your Costs


When you start investing in real estate, you need to know exactly how much money you can afford for closing costs, fix-up and maintenance, taxes and general holding costs. Be prepared for unexpected repair costs for problem tenants, remodeling that uncover more issues that need fixing, and big-ticket items that may need replacing on short notice. Ensure you have a suitable cushion of cash for these expenses.

It’s Complicated

Owning your own home is one thing. Owning an investment property is completely different. Besides having to adhere to local laws for landlords, you may eventually find it easier to hire a property manager, which could account for around 10%-15% of the monthly rental. If your profit margins are predicted to be thin, you may want to reconsider your investment and keep looking for different property.

Call Tatyana: 443-527-4375