MID-MO REALTY

The Advatages of Leavng Jr., Mom & Pop, Aunt Sue at Home

Andrea Wallace — Fri, 26 Jan 2007 17:59:00 GMT

When home shopping, it generally works much better to leave the kids with grandma or a sitter. Children can be very distracting when looking at houses. More often than not one or both parents are kept busy trying to occupy / watch the kids, when in reality they should be looking the house over. Most well-meaning parents bring their children along for home tours, because they think it will be exciting for the kids to "help" pick out their new home. Let's face it this is a major decision for most folks and they need to give it their full attention. Jr. should be invited for a walk through after Mom and Dad have found the home of their choice.

Another drawback is bringing along family members and friends that won't be living in the new home. Let's face it we all have different styles and tastes. You wouldn't wear the same style of shoes or clothes that your mother would choose. By the same token, you will have different wants, needs and desires in your new home from that of a parent, friend, or co-worker. It is sad to see a couple find their "dream home", only to have a family member run it down. In most cases they have no formal experience as an inspector, but that is the hat they are wearing. Another familar situation is a grown sibling that appears to have a jealous streak and makes snide comments about everything from the neighborhood to the rose bush in the backyard.

These situations are difficult for everyone involved. The best rule is for the financially responsible individual(s) to be involved in the initial process of finding the home and if they are concerned about issues ,to seriously consider hiring an inspector, instead of having Uncle Joe take a peek.

Buyers Should Have Manners Too !

Andrea Wallace — Fri, 26 Jan 2007 17:34:00 GMT

When you get real estate agents together they can tell some amusing and amazing stories about buyers they have worked with over the years. Some have even written entire books on the subject. However amusing the stories may be now, more than likely they weren't quite as funny when they were happening.

You always hear recomendations for the sellers, but seldom is there anything mentioned about buyers. Occasionally out of necessity a seller will need to be home during a showing. This can spell trouble if you are working with an onry buyer.

True story~ I was working with a young couple a few years ago on what would be their first home purchase. To say the least they didn't get along well and that came through loud and clear with every home that we toured. The husband would go into high gear if the seller(s) were home. He would be loud and obnoxious, making horrible comments about the home (always just loud enough for the owner to hear in the next room !). In turn the wife would go off on him, correcting him like you might a mean dog. Before you knew it they would have the air turned blue with very foul language and leave the home fighting.

The wife was lots of fun to show homes to and we would preview several homes, before narrowing it down to her select choices. She new their needs and wants and was careful not to waste the husband's time on anything that didn't meet their criteria. No matter what they looked at he would fuss and spew out his "opinions" about everything he could find. This would then start the entire cycle all over again. Not only did we subject multiple sellers to his mouth, but to top it all off their terrible fights.

I finally had to have a long talk with them in the office and it helped for two showings. When it started again I just had to set my foot down and needless to say they got mad. I later learned that every agent in town had worked with them over a three year period.

Buyers please be considerate of the sellers. They don't deserve this kind of treatment. Try to remember that in most cases, this is their home. The average sellers feel like "if it is good enough for us, it should be good enough for them".

Houses That Smell Won't Sell Well

Andrea Wallace — Thu, 25 Jan 2007 20:44:00 GMT

The importance of not only a clean, but clean smelling house can't be overemphasized while your house in on the market. First impressions are vital with Prospective Buyers. It's easy to spend weeks preparing your house for market, but you would be amazed at the folks who don't give a second thought to the way it smells. We have had Buyers who refused to enter homes with strong odors, despite the fact that the house fit all their needs.

The top odors that are compalined about are : cigarette, cigar, cat litter boxes, dogs and trash. As you can see all of these are fixable, but try telling a Buyer that as they are walking back to the car ! We regularly deal with individuals who are very sensitive to the point of actually being alergic.

I know this can be tough, but choosing to smoke outside the home while your home is on the market can make a big difference. Cleaning the litter box frequently and if possible have it in some out-of-the-way place. If possible removing the pets from the home for showings can be a big plus. Last, but certainly not least~ take the trash out !

Merely "covering up" odors with sweet scents generally won't cut it. Sorry to be the bearer of bad news ! If you have spots on carpet from pets ~ you can bet they have odors, Giving these spots attention will not only help the appearance, but help to eliminate the offensive odor.

Just a little elbow grease will help your home to sell not only quicker, but generally for more money. It amazes me how many people will make comments about a "smelly" house and in the same sentence say "it will need lots of work". More times than not, it will be one of the nicer homes n the tour, but the Prospective Buyer(s) just can't get around the smell and their association of lack of maintenance.

Creative Sources For Downpayments

Andrea Wallace — Thu, 25 Jan 2007 19:49:00 GMT

You're finally ready to take the big step of purchasing your own home, but you've run into a snag....the dreaded downpayment. Sometimes a little creativity goes a long ways. Here are a few ideas that we've seen Buyers use successfully.

*Savings

*Sell a car, boat or other "toy" you can live without for now and replace later.

*Receive a tax-free gift from parents, grandparents or other relatives.

*Equity share with parents or friends.

*Asking the seller to help you with the financing.

*Borrow against a pension plan or life insurance policy.

*Use your business as collateral.

1031 Exchange

Andrea Wallace — Mon, 22 Jan 2007 20:25:00 GMT

A 1031 Exchange, named after the IRS code, allows you to sell investment real estate and replace it with other investment real estate without creating a taxable event.

Many investors don't realize that taxation on the sale of an investment property does not have the same tax advantages enjoyed when selling their principle residence. Profits are often substantially affected by tax consequenses. With a 1031 Exchange, yo can defer payment of the tax normally due on the sale of your property that has taxable gain.

There are many benefits to performing an exchange instead of a sale and a new purchase. It can make more funds available for the new purchase by deferring any tax payments that would have been due. It can also help you with your investment ncome. By allowing you to sell investment properties that aren't giving you enough return and use the non-taxed gain to purchase another property that produces more cash flow, so you can greatly increase your income.

To qualify for a 1031 Exchange, you must trade real estate that is held for business investment purposes for other like investment property. 1031 Exchange cannot be used in the sale of your primary residence or your second home.

In order to qualify, you must use a Qualified Intermediary, who in turn buys the next property you have chosen. You are not required to exchange all of your cash from the sale of the first property into the purchase of the second. However, if you take proceeds from the first sale, each dollar taken is subject to capital gains tax. To avoid tax, you must rollover the entire amount of the gain into the new property. You may also exchange one property for several others or visa versa. It doesn't have to be one for one.

It is recommended that you consult an accountant for more advice on this subject.