Some homeowners feel like they may as well throw a dart against the wall to decide whether to move or not. Other people might invoke a process attributed to Benjamin Franklin. Supposedly, to evaluate the options and bring clarity to the choice, this American founding father would list all the reasons for and against the decision on a sheet of paper. After reducing it to writing, the choice would appear either by obvious majority or practicality. Buying a home is an emotional decision but selling a home can be also. Separating the rationale from the emotion can make decisions seem obvious but they may still not be crystal clear. There is an inventory shortage that caused prices to rise and market time to shorten. In many active markets there is less than 30-days' supply of homes for sale which is half of what was available a year ago. This will make it easier to sell and maximize the proceeds from your current home. 69% of economists who participated in the first quarter 2021 … Continue reading...
“Mise en Place” for Homebuying
In cooking, "mise en place" describes having all your ingredients measured, cut, peeled, sliced, grated, as well as bowls, utensils and pans ready to use before you begin cooking. The advantage is to inventory the ingredients and recognize if you have everything you need. You are less likely to leave out an ingredient or step because it is "set up" and ready to use. The same technique works well in the homebuying process, especially in today's highly competitive environment where multiple offers are normal and bidding wars are commonplace. Check your credit ... not only does credit determine if you will get a mortgage, but it will also determine the interest rate you'll pay. The best rates are for the borrowers with the best credit; lower credit scores mean higher rates because of additional risk to the lender. Free copies are available from all three major credit bureaus at www.AnnualCreditReport.com. Determine your budget ... knowing your income and immediate living expenses … Continue reading...
It’s Not too Late to Refinance
With mortgage rates below 4% since May 2019, you would think that most people would have already refinanced but according to a recent Lending Tree survey, 49% of homeowners say they are considering a mortgage refinance in the next year. The report estimated that over a third of homeowners are have mortgages above 4% and 11% didn't know what their rate was. Slightly more than a third of the people surveyed regretted missing the opportunity to refinance in 2020 when rates did hit their historical low. Homeowners should not beat themselves up on this issue because the only way to know to tell that it hit bottom is after it has started going up again. The current rates are very favorable to borrowers and some economists believe that when inflation is factored in, the rates are close to zero effectively. While there are nine specific reasons people choose to refinance their homes, two are among the most prevalent: to lower the payment or take cash out of the equity. Most reasons … Continue reading...
Writing a Successful Offer in a Low Inventory Market
With at least 40% less homes on the market currently than there were a year ago, serious buyers have probably experienced the disappointment of losing a home they wanted to buy from increased competition. Today's buyers are looking for ways to improve their odds of being the best contract without having to use the purchase price as their only tool. Buyers should reconsider, rethink, and re-evaluate their "must have" features and amenities. It is probably unrealistic in a normal market to think you can have the perfect home at the price you want but in today's market it is less possible. List the things you must have and the things you would like to have and prioritize them. Try to identify the critical from the convenient. The next step is to put together your "home" team. You are the captain of this process, but it is essential to have a strong first officer and that is your real estate agent. This professional will oversee the process, advise you on current market conditions … Continue reading...
How long do I have to keep this stuff?
"How long do I have to keep this stuff?" is the usual question you ask yourself when feeling that you are running out of room for all this "paper" that may never be needed. The paper receipt you get from your fast-food lunch may go directly into the trash. The prudent consumer may keep it to reconcile it with their monthly statement and then, trash it. The natural hierarchy with receipts and documents associated with purchases is that as the price or value goes up, the more important it is to keep them. The question becomes "but for how long?" The following table will give you an indication on how long certain documents related to your home need to be kept according to best practices of tax professionals. IRS recommends that records are kept for three years from the date the taxpayer files their original return or two years from the date the tax was paid, whichever is later. There is no time limit in the case of fraud or failure to file a tax return. Document Length of … Continue reading...
Rent your home tax free
There is a little-known provision in the tax code that allows homeowners to rent their principal residence or second home for up to 14 days a year without having to recognize the income. In this situation, the taxpayer does not deduct the rental expenses associated with the income. There is no restriction on how much you earn. If your first or second home is in a desirable area where people are looking for short-term rentals, it could provide a windfall to the homeowner. In cities where any big sports championships are played, there could be a market for a temporary rental of a home. Events like PGA tournaments, college basketball tournaments, Bowl games, NFL playoffs and others can create a demand for this type of rental. For instance, there are people in Augusta, Georgia who rent their homes during the Master's Golf Tournament each year. There are not a lot of hotel rooms in the area relative to the number of people who usually attend in non-pandemic years and the homes can … Continue reading...
Before you pay cash for a home
Before you pay cash for a home, ask yourself if there is a possibility, at some point in the future, you might put a mortgage on the home and would want to deduct the mortgage interest on your federal tax return. Current federal tax law allows homeowners to deduct the interest on up to $750,000 in acquisition debt used to buy, build or improve a property. When a person pays cash for a home, the acquisition debt is zero. The only way to increase the acquisition debt is to make and finance the improvements to the home. As with many IRS regulations, there are exceptions to this rule. If a mortgage is secured on the first or second home within 90 days of the purchase closing, the debt is considered acquisition debt. The interest on the funds used to purchase the home can be deducted on up to $750,000 of the mortgage balance. Assuming a borrower has good credit, the ability to repay the loan and the home justifies the loan, lenders are willing to make mortgages for homeowners. It … Continue reading...
Event Calendar: April 2021
April 1st: Grand Teton National Park: Craig Thomas Discovery and Visit Center Opens Tasha & the Goodfellows @ The Silver Dollar Showroom Dave Nudo @ Million Dollar Cowboy Bar April 2nd: Thirsty Thursday @ Stillwest Brewery & Grill The Runaway Grooms @ The Silver Dollar Showroom Dave Nudo @ Million Dollar Cowboy Bar April 3rd The Runaway Grooms @ The Silver Dollar Showroom Dave Nudo @ Million Dollar Cowboy Bar April 6th Happy Hour @ Hatch Tacqueria & Tequilas 4 PM - 5 PM April 7th Wing Wednesday @ Hayden's Post April 8th Ashton Lee Trio @ Million Dollar Cowboy Bar April 9th Cook-N-Cowboys @ The Silver Dollar Showroom Ashton Lee Trio @ Million Dollar Cowboy Bar April 10th Karen Oatey Pole, Pedal, Paddle Race: Jackson Hole Ski Club Cook-N-Cowboys @ The Silver Dollar Showroom Ashton Lee Trio @ Million Dollar Cowboy Bar Closing Weekend @ Jackson Hole Mountain Resort April 11th Closing Day @ Targhee Resort April 13th One Ton Pig @ The Silver … Continue reading...
Homeowner Equity and Wealth Accumulation
National homeowner equity grew in the fourth quarter of 2020 by $1.5 Trillion or 16.2% year-over-year based on a CoreLogic analysis. The study was done on the six out of ten homeowners who have mortgages on their home. The fourth quarter of 2020 also saw the number of mortgaged residential homes with negative equity decrease by 8% from the third quarter. Compared to the same quarter in 2019, negative equity decreased by 21%. Equity is defined as the value of the home less the mortgage owed. Negative equity means that the homeowner's debt is more than the value of the home. Appreciation is the dynamic that is moving homeowner's equity to the positive position. On a national basis, according to National Association of REALTORS®, annual price growth for the last ten years has been 6.4%. In the last five years, it has grown at 7.3% annually. According to the CoreLogic Home Price Index, home prices in December 2020 were up 9.2% from the year before. Frank Nothaft, Chief … Continue reading...
Spring Cleaning in 5 Easy Steps
Spring has arrived making it the perfect time to organize and clean your home. Although it can seem like a daunting task there are some simple steps you can take to make spring cleaning an easier process. Start small. Pick a room, a closet, or even a drawer to begin. Getting started is always the hardest part. Make a keep, discard and donate pile. Making separate piles while you clean makes finishing the job so much easier. Work top to bottom, left to right. When cleaning or organizing starting from the top of an area and work down from left to right. This creates a system so no area goes untouched. Wash everything from drapes to sheets and even throw covers for pillows. This makes sure all the soft materials in your home get a revamp. Put away winter gear and get out spring and summer items. Get out the tables and chairs, barbeques, and décor and get your home ready for some warm and sunny weather. … Continue reading...