Grand Rapids Real Estate Podcast with Mark Brace

How Can I Be Exempt From Capital Gains?

markb@grar.com (Mark Brace) — Thu, 28 Sep 2017 11:02:00 -0700

How do you know if you can qualify to be exempt from capital gains tax? Actually, there are a few different stipulations involved.

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I want to take some time to answer a question I’m receiving a lot lately, which is “How can I be exempt from capital gains?”

A lot of sellers right now feel nervous about listing their homes since values in our area have gone up so much. These sellers are worried about the taxes they’ll need to pay on the gains they earn from the property.

Truthfully, there are a few stipulations that need to be considered.

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There are a few stipulations that need to be considered.

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In order to be exempt from capital gains tax, the property will need to have been your primary residence for two out of the last five years. These years do not need to be consecutive.

Also, you can’t have exchanged or sold within the last two years, and the property cannot have been used for business or rental purposes.

If you are an individual, the sales price must not exceed $250,000. If you are a married couple, the sales price cannot exceed $500,000.

Finally, the last stipulation is that the property cannot be involved in a 1031 exchange. A 1031 exchange is an elevated way of deferring gains for investors. Chances are, this isn’t something most sellers are going to be involved in.

If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Your September Market Updates for Grand Rapids

markb@grar.com (Mark Brace) — Wed, 13 Sep 2017 11:14:00 -0700

The latest numbers are in for the Grand Rapids real estate market. What can you expect as a buyer or seller this September?

As we begin September, let’s take a look at what’s happening in the Grand Rapids and Michigan real estate markets.

Right now, there are 2,007 homes for sale. That number is a little higher than normal. There are 1,730 pending home sales. In other words, there are almost the same number of homes for sale as there are under contract.

So far this year, 8,476 homes have sold at a rate of about 1,060 homes a month. That means our market has a total of 1.89 months of inventory.

If we look specifically at Kent County, there are only 1,500 properties for sale and 1,355 pending sales. So far this year, 6,700 homes have sold in Kent County at a rate of 838 home sales a month, leaving Kent County with 1.81 months of inventory.

What do all of these numbers mean for you?

Inventory has gone up slightly as we head into fall. With school starting, people are too busy to concentrate on real estate as much as they did this summer. Since inventory is slightly higher, buyers have a better selection now than they’ve had all year.

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Slightly higher inventory means buyers have more options to choose from.

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If you’re thinking of buying a home, now may be the time to seize the market.

If you are thinking of selling your home, there is still a lot of action in our market, which means you have a great opportunity to sell. Keep in mind that inventory has increased a little, so there may not be as many multiple offer situations as there were this summer.

If you have any other questions about buying or selling a home in our current market, just give me a call or send me an email. I would be happy to help you!

Why You Should Consider Buying Now Instead of Waiting

markb@grar.com (Mark Brace) — Thu, 27 Apr 2017 10:59:00 -0700

Is waiting to buy a home costing you money? I’m afraid so, and there are two big reasons why.

Is waiting to buy a home costing you money? The answer is yes, and there are two main reasons why.

The first is price appreciation over time. Property values are rising every day now, and supply and demand is pushing prices upward. The longer you wait, the more you’ll be missing out on a better home price.

The second reason is interest rates are also rising. A 1% increase in interest rates decreases the average homebuyer's affordability by about 10%. That means if you want your mortgage payment to stay the same, you will have to buy a less expensive home. In other words, your buying power drops 10%. The Fed announced that they would be aggressive with interest rates this year, and they have more planned increases in the future.

For a more detailed look at how interest rates are expected to impact the market in the coming months, you can click here. For a look at home price expectations for 2017, click here.

Don’t get caught on the sidelines in our market.

With both prices and interest rates moving up, every day you wait is costing you more money. Don’t get caught on the sidelines.

If you have any questions or are interested in purchasing a property, give us a call or shoot us an email. We’d love to help you out.

Grand Rapids Spring Market Update

markb@grar.com (Mark Brace) — Tue, 4 Apr 2017 14:24:00 -0700

Spring has officially sprung in the world of real estate and I wanted to stop by with an update on the Grand Rapids market. Low inventory and high demand make now a great time to be a home seller.

Spring's officially here, so I wanted to take a minute to update you on the important factors currently trending in our market.

As of the end of March in Kent County, we have 939 properties for sale, which is extremely low. In our market in the last 12 months, 10,212 properties sold, giving us a rate of roughly 851 homes sales per month. That means we have about 1.1 months of inventory, which is extremely low.

The market currently has 1,240 pending sales as well. When you step back and take a big-picture look at our market, it's an absolutely amazing time to sell your house since buyer demand is high and inventory is low, pushing prices up.

High demand and low inventory make now a phenomenal time to sell a house.

On the other hand, if you're buying a home, you want to hurry and try to buy one before interest rates keep going up. Prices are going up as well, so the longer you wait, the more difficult it will be to find a home and the more it will cost you.

If you'd like any more detailed information about your specific area or you're ready to buy or sell a home here in the Grand Rapids market, give me a call or send me an email soon. I'd love to help you out!

Let Us Connect You With Great Contractors

markb@grar.com (Mark Brace) — Sun, 8 Jan 2017 12:28:00 -0800

If you need a reputable contractor for any type of project or service at your home, we have a great list of people to put you in contact with.

I’ve recently found myself running into clients who hired contractors to do work for them, and unfortunately, it seems that many of them overpaid and were taken advantage of.

I wanted to be sure to take this chance to let you know that if you have any projects coming up, I have a list of reputable contractors that includes everyone from electricians, plumbers, roofers, to anyone else you might need. We’ve vetted them through years of experience.

We have a great list of reputable contractors from over the years.

I’d be glad to send you a list of reputable vendors for any job you need to have done.

Similarly, if you know someone who you think is an absolutely amazing contractor, I’d love for you to share their name with me so I can continue to refer a list of wonderful people who do amazing work for my clients.

If you have any projects upcoming, don’t hesitate to give me a call or send me an email. I’d love to set you up with a great contractor.

We Wish You a Merry Christmas

markb@grar.com (Mark Brace) — Wed, 14 Dec 2016 17:46:00 -0800

I’m here to wish you all a merry Christmas. I hope your holiday season is wonderful.

I just wanted to quickly reach out to you today with some holiday greetings. My video crew has digitally placed a Santa hat on my head just for the occasion.

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We are grateful for your support.

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So let me wish you a very merry Christmas, to you and your entire family. We are grateful for your support, whether it be in the past, present, or future.

If you have any questions for us, we’re always here to answer them. All you’ve got to do is give us a call or send us an email. We look forward to hearing from you.

Where Is the Grand Rapids Market Headed?

markb@grar.com (Mark Brace) — Tue, 6 Dec 2016 09:36:00 -0800

Today I have a quick market update for Grand Rapids. The market is doing some interesting things when you compare it to last year's market.

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Price Evaluation
Call me at (616) 447-7025 for a FREE home buying or selling consultation

I wanted to drop by with a quick Grand Rapids market update to give you an understanding of how this market relates to last year's market and what we could see moving forward.

Currently, we've got a little more than 2,000 homes for sale, which is actually down from last year at this time when we had 3,327 homes for sale. Year to date, we've sold almost exactly as many homes this year as last year. We front-loaded a lot of sales in the spring, however, when the market was crazy and inventory dropped to nearly 1,500 homes available.

In four of the last five months, our sales have been down compared to last year. I'm not sure if this is an indicator of anything, but going into the winter, we have fewer homes for sale than last year. As a seller, this means it could be a really good time to get into the marketplace. As a buyer, that stretch between Thanksgiving and Christmas is the best time to potentially buy a home as well. Sellers are serious and you'll have less competition, leaving you the opportunity to get a great deal.

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Don't hesitate as a buyer or seller at this time!

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Don't be hesitant as either a buyer or seller at this point! If you'd like any more details about what's going on in your area or you're thinking of buying or selling a home, give me a call or send me an email today. I'd be happy to help!

Is It Time for a Price Reduction on Your Home?

markb@grar.com (Mark Brace) — Sat, 3 Sep 2016 10:47:00 -0700

If your property is currently on the market, how do you know if you need a price adjustment?

There are obviously a lot of variables involved in attracting buyers to a property. The three things buyers consider when looking at a home are condition, price and location. You obviously can’t change location, but you do have control over price and condition.

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Price is just one variable buyers look at.

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If you’ve been on the market long enough, listen to what your Realtor is telling you about the feedback received from all the showings because the market will respond accordingly. If you’ve been on the market for a long time with a number of showings and no offers, you’re basically getting rejected by the market.

You and your Realtor need to evaluate the market rejection along with those other variables to see if it’s time to drop the price, or decide if the price is really the issue. There may be other objections to the property, like a water tower in the backyard or proximity to an expressway. You can position the home at a level that will overcome all buyer objections if you’re willing to come down below what you might think is a fair value.

If you have questions about pricing, or you’re thinking about buying or selling a Grand Rapids home, give me a call or send me an email. I’d love to work with you.

The Brexit Effect on the Grand Rapids Market

markb@grar.com (Mark Brace) — Wed, 10 Aug 2016 13:36:00 -0700

With Britain voting to leave the European Union, it has left the financial world in some uncertainty and turmoil. Has it had an effect on the Grand Rapids market?

Because of this, most institutions are dropping their mortgage rates, and that’s going to continue until at least December, according to the economists that I’ve read about. Because of the lower interest rates, there is going to be a refinance boom, so lenders’ pipelines are going to be quite full of people trying to take advantage of the moment.

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Homeowners are also taking advantage by refinancing.

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When it comes to our market in Grand Rapids, the effect we’re seeing is that buyer demand is staying high because access to money is good with incredibly low interest rates. Because of that, supply and demand will still push in the seller’s favor, even though our local market has kind of gone on vacation, so to speak.

As long as you’re in the price range of $150,000 and under, you’re going to be in really good shape. Because of vacation, some of the higher price ranges may struggle a bit.

Thanks for stopping by the blog today. If you have any questions about our market, feel free to give me a call or send me an email soon.

What Is the State Real Estate Transfer Tax Refund?

markb@grar.com (Mark Brace) — Wed, 13 Apr 2016 12:48:00 -0700

Today, I’ll talk about the State Real Estate Transfer Tax Refund. If you haven’t heard about this new legislation, this information is invaluable to you.

Last July, the Michigan Supreme Court passed a bill that affects anyone that has sold their home within the last four years. It provides Michigan homeowners the right to claim an exemption of $7.50 for every $1,000 in value that was sold.

You’re entitled to this benefit if you sold your home anytime after June 24th, 2011 with the SEV value lower in the year of sale than the year of purchase. For example, if you bought a home with an SEV value of $60,000, but sold it for an SVE value of $50,000, you’re qualified for this new refund to meet the difference. Additionally, the property must be claimed as the seller’s principal residence.

With this refund, you’d qualify for funds previously collected by the title company at closing. It must be an arm's-length transaction, not a family member or a friend; it needs to be a typical, traditional transaction.

Click here for a SRETT refund application form. There are only a few boxes to fill out, so it’s relatively painless paperwork. This is serious money that shouldn’t be ignored! If you have any questions about this refund, don’t hesitate to contact my office by phone or email. I’m happy to answer any questions you might have!

What Does the Grand Rapids Market Look Like?

markb@grar.com (Mark Brace) — Wed, 13 Apr 2016 12:28:00 -0700

Today, I wanted to fill you all in on a quick market update. I want to make sure you know about the latest market data and trends going on in the Grand Rapids housing market.

According to numbers we compiled, we have approximately 1.62 months of inventory as of this past March. This means the market favors sellers. It’s an opportune time to list if you’ve been on the fence about it.

However, that’s the market overall, and I have more specific numbers broken down into particular neighborhoods. I can let you know what it looks like exactly for you, whether you’re buying or selling. Additionally, I can let you know how much power you have as a consumer in a specific neighborhood within the Grand Rapids region.

If you’re considering buying or selling a home in the surrounding area, please reach out by phone or email! I’d be happy to answer any questions you might have.

Everything Buyers Need to Know About Closing Costs in Grand Rapids

markb@grar.com (Mark Brace) — Wed, 10 Feb 2016 15:52:00 -0800

Buying a home? Click here to perform a full home search
Selling a home? Click here for a FREE Home Price Evaluation
Call me at (616) 447-7025 for a FREE home buying or selling consultation

First-time home buyers often ask us about closing costs. What are they and how much do you have to pay?

Closing costs are all the acquisition costs associated with securing your mortgage. They are outside of your down payment, so you’re going to need your minimum down payment required AND your closing costs in order to acquire the mortgage.

Closing costs are generally about 3% of the total purchase price, depending on the type of mortgage. At the beginning of the process, you will get a disclosure from your lender giving you an example of what the costs might be. The Closing Disclosure will have it calculated for you so you know exactly what you need to bring to the closing table.

The next question we usually get regards who pays for the closing costs. As a buyer, it’s your responsibility to pay them; however, we can ask the seller to give us some assistance in the negotiations toward paying some of your closing costs. If this is the case, make sure to let your agent know that you need assistance with closing costs so you can write it into the offer!

If you have any questions about closing costs or any other real estate topic, please don’t hesitate to reach out to us. We would love to help you with all your real estate needs!

The Costs Involved in Selling a Grand Rapids Property

markb@grar.com (Mark Brace) — Wed, 10 Feb 2016 08:03:00 -0800

I often get asked, “What are the costs involved in selling a property?” It’s not a very large list, but you do have some costs involved in selling a home.

1. The brokerage fee. This goes to the agents involved in marketing and selling the property.

2. Transfer tax and revenue stamps to the state of Michigan. This is basically a sales tax for selling the property in Michigan.

3. Required title insurance. You will need an owner’s policy.

4. Transaction fees. These include things like closing fees. If you have a well and septic, you will be responsible for those fees as well.

Other things you may need to pay for include an optional home warranty or assisting the buyer with closing costs. There may be other costs specific to your transaction that get negotiated by your agent.

If you have any questions, give me a call or send me an email. I would be happy to help you!

What To Expect from the Grand Rapids Market in 2016

markb@grar.com (Mark Brace) — Wed, 16 Dec 2015 15:43:00 -0800

It's crazy to think that 2015 is almost over, but we have to start looking ahead to 2016. What can we expect from the real estate market? Will it be a better market for buyers or sellers?

According to Trulia's research department, the Grand Rapids real estate market will be the #1 market to keep an eye on in 2016. Why is this? There were five metrics that contributed to this. They were: strong job growth, low vacancy rates, high affordability, more inbound searches than outbound searches, and a large share of millennials.

Grand Rapids is very affordable, and we have seen a lot of job growth, so that's why 2016 could be a very exciting year for Grand Rapids real estate.

If you've been thinking about buying a home, I would recommend that you start the process soon. Interest rates aren't going to get any lower, and there's no reason to spend more money than you need to just because you didn't act soon enough.

Please don't hesitate to contact me with any questions or concerns you may have. I look forward to speaking with you!

The Benefits of Listing This Winter

markb@grar.com (Mark Brace) — Mon, 16 Nov 2015 12:55:00 -0800

Generally, there’s a decrease in competition during the colder months. Not-so-serious sellers remove their home from the market as the holidays approach.

Comparatively, buyers during this time of year are extremely serious and motivated! In Michigan, snow creates an obstacle. However, there are buyers experiencing life changes, such as job transfers and placements, that require them to move quickly.

The bottom line: it’s a great time to sell. If you have any questions, please reach out!

Is Grand Rapids Approaching Another Housing Bubble?

markb@grar.com (Mark Brace) — Mon, 24 Aug 2015 12:57:00 -0700

Today, I just wanted to let you know that according to the National Association of Realtors, there is no housing bubble in sight.

It may seem like prices are inflated, but according to Realtor magazine, home prices and home sales are not nearly what they were ten years ago. Mortgage amounts are going down as well, so borrowers are much more conservative.

Additionally, mortgage lending is very tight compared to what it was ten years ago when everyone could get a mortgage, so the financial market is in a much different place than it was during the previous housing crisis.

To read the full article, check out this link: http://realtormag.realtor.org/news-and-commentary/economy/article/2015/07/no-housing-bubble-in-sight.

If you have any questions, give me a call or send me an email. I'd be happy to help you!

Where Are Grand Rapids Home Values Heading?

markb@grar.com (Mark Brace) — Fri, 21 Aug 2015 11:57:00 -0700

It's time for yet another Grand Rapids market update! Today, I want to share the latest trends in our area and what they mean for you.

Recently we've seen some of the buyer anxiety tail off in the last couple months, as some buyers left the area for vacation or stopped looking, which resulted in a more open market. However, some market segments are very hot right now; in fact, I recently had a listing that received 12 offers.

Despite certain trends in favor of buyers, we're still in a seller's market. If you've been thinking about selling, once you prepare your home for the market, you shouldn't have trouble selling quickly and for top dollar.

If you have questions about the current market or where it's heading, don't hesitate to reach out to me. I would love to help you in any way possible!

Who Should You Trust When Seeking a Loan in Grand Rapids?

markb@grar.com (Mark Brace) — Mon, 1 Jun 2015 11:36:00 -0700

There are many myths surrounding the lending industry, so today we thought we would do something to combat a prevalent one: the myth that all lenders are the same!

There is a huge difference between working with a large national bank and a local bank. Typically, when working with a local or regional bank, you will have more direct contact with the underwriters, who are more familiar with the local paperwork: purchase agreements, addendums, contracts, etc. They simply know the process a little bit better!

All banks do not have the same rates and fees. I've seen banks vary by as much as half a percent in interest rates on the same day! We suggest shopping around and contacting a few local banks. The process will generally go a lot smoother once you've explored all your options and found someone you're comfortable with!

If you have any questions about the benefits of working with a local lender, or if you need real estate assistance of any kind, give us a call or shoot us a quick email. We would love to help you make the most of your real estate venture!

Is Now the Time to Get Top Dollar for Your Grand Rapids Home?

markb@grar.com (Mark Brace) — Mon, 27 Apr 2015 14:01:00 -0700

Although summer hasn't officially hit Grand Rapids, the market is already pretty hot! Inventory is incredibly low, and the buyers are out in full. In fact, in some areas, we have less than a month's worth of available inventory! This is causing prices to rise, which has greatly benefited the few sellers in the market right now!

If you have considered selling your home, now is the time to list! Your home may be worth a whole lot more than you think, as there is a high demand for great homes in this market! If you are curious about the value of your home, or if you would like to discuss your options, give me a call or shoot me a quick email. We would love to help you make the most of this fantastic market!

How to Increase Your Curb Appeal

markb@grar.com (Mark Brace) — Fri, 20 Mar 2015 10:19:00 -0700

A lot of people here in Grand Rapids have been asking me how they can boost their curb appeal. We've moved from winter to spring, so now is the time to start thinking about this before you list your home for sale.

Replace your exterior lights to give your home an extra glow. Buyers love well-lit homes.
If your front door is a bit old, now would probably be a good time to replace it with a new one. This tends to set a good first impression with a buyer.
Also remember to declutter.

What I mean by this is that you need to rid your home of unnecessary distractions like collections, awards, trophies, artwork, or anything else that will distract the buyer inside of your home. Your home should look like it came out of a magazine.
A good rule I use is that roughly 50% of the things on your shelves should be taken down and stored elsewhere for a good decluttering. You want your home as clean and neat as possible.

Kitchens and bathrooms are key. Potential buyers like to see updated kitchens and bathrooms. Usually kitchens are major selling points, so be sure to highlight all of the positive aspects of your kitchen. Remodeling doesn't always add value to your home, but usually repairs to kitchens and bathrooms pay off in the long run. It doesn't mean you need to spend $10,000, but you'll want it to look good.

Hopefully these tips can aid you when you list your home for sale this spring. If you need any extra help, please contact us and we can refer you to a good home stager.

As always, if you have any questions about the real estate market in Grand Rapids, please be sure to contact my team. We're always happy to help you!