Team NJPA @ Keller Williams Realty

Sellers - IRS Tax Tips when you sell!

noreply@blogger.com (Team NJPA) — Mon, 22 Aug 2011 17:53:00 +0000

Here are the IRS's top 10 tax tips for home sellers:

1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale. 

2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases). 

3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home. 

4. If you can exclude all of the gain, you do not need to report the sale on your tax return. 

5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses. 

6. You cannot deduct a loss from the sale of your main home. 

7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude. 

8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time. 

9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year's tax return. 

10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.

These tips can be found on the IRS website at http://www.irs.gov/newsroom/content/0,,id=104608,00.html.

Home Improvements BEFORE You Sell?

noreply@blogger.com (Team NJPA) — Tue, 14 Jun 2011 18:02:00 +0000

Lets face the facts; today's home buyers are LESS WILLING to COMPROMISE!

Sellers Temptation: To clean up the yard, de-clutter the house, and put it up on the market without spending a dime. Why would you want to right? Your trying to sell in this market and break even or make as much profit that you can! WRONG!

Some agents will recomment you do AS LITTLE AS POSSIBLE to get your home ready for sale. And I am not saying this won't work...if you are pricing it at a bargain. However, most buyers in today's market are nervous and picky. They are not in a hurry and want a house that is in move-in ready condition.

So as a seller what do you do? Of course you don't want to invest in your home when you are trying to sell and not get back your investment! Well....here are a few key things to consider when deciding what to do before you list:

1. Find an agent who can see the vision and potential in your home. It can COST YOU A SALE if you don't. One agent told a seller not to do anything before listing (For their reputation I will not mention any names). The house was nice but the seller's furniture was too large and made the rooms look small and the hardwood was damaged by the dogs, and the yard was overgrown. After the house didn't sell another agent was hired (Guess who?) who recommended a large list of items to address BEFORE listing the home. Unfortunately, due to the market decline, even thought the house sold quickly with multiple offers now, it solf for less than what it would have if it showed right the first time it hit the streets! So the lesson here is...find the agent who is looking out for you! Sometimes we don't tell you what you want to hear (like don't do anything we will sell your house fast anyway). Find the person who will tell you the TRUTh (ex: do these repairs and then i can list your home). The wait will be worth it when you actually sell!

2. When you find the right agent. Ask for a list of contractors who you can call to help get the work done for competitive prices.

3. Have the agent prioritize the list of To-Do's for you in order to get a timely sale. Typically the kitchen is a good place to start. Usually some cost-effective improvements like changing light fixtures, changing cabinet hardware, replacing a out-dated floor, or painting can be all you need. At times it may make sense to change a countertop or old appliances. However, gutting a kitchen or remodeling it is not usually going to get your money back at the sale.

4. PAINT PAINT PAINT! Paint is a great idea and sometimes one you seller's take on without any advise. Paint is the most cost effective and likely the best return on your investment, PROVIDED YOU USE THE RIGHT COLORS! That is what we are here for. If you don't know let us help pick them out! We run with buyers everyday and know what the Majority are looking for. When you are selling you can't paint what YOU like. It is no longer about you but ITS ABOUT THE NEW BUYER! We are here to make suggestions based on our experiences and expertice!

FOR SALE: 3BR National Park home $170K

noreply@blogger.com (Team NJPA) — Thu, 24 Feb 2011 01:05:00 +0000

FOR RENT: 2BR Washington Twp 1st floor condo! $1200/month

noreply@blogger.com (Team NJPA) — Wed, 23 Feb 2011 01:57:00 +0000

FOR SALE: 2 unit, 3BR each, Penns Grove Multi-Family home

noreply@blogger.com (Team NJPA) — Fri, 11 Feb 2011 01:07:00 +0000

FOR SALE: 2 unit Multi-Family Penns Grove home with 4BR each!

noreply@blogger.com (Team NJPA) — Thu, 10 Feb 2011 23:03:00 +0000

FOR RENT OR SALE: 3BR Pine Hill home

noreply@blogger.com (Team NJPA) — Thu, 10 Feb 2011 19:40:00 +0000

FOR SALE: 3BR Pennsville split level home! $210,000

noreply@blogger.com (Team NJPA) — Sat, 05 Feb 2011 00:45:00 +0000

FOR SALE: 3 BR Winslow Twp home $139,900!

noreply@blogger.com (Team NJPA) — Thu, 03 Feb 2011 00:52:00 +0000

FOR SALE: 3 BR Wilton's Corner rancher! $165,000

noreply@blogger.com (Team NJPA) — Fri, 28 Jan 2011 23:52:00 +0000

FOR SALE: 3BR Winslow Twp home

noreply@blogger.com (Team NJPA) — Thu, 27 Jan 2011 00:51:00 +0000

FOR RENT: 2 BR Washington Twp townhouse $1475/month

noreply@blogger.com (Team NJPA) — Wed, 26 Jan 2011 00:53:00 +0000

3 BD beautiful Winslow Township rancher

noreply@blogger.com (Team NJPA) — Sat, 15 Jan 2011 03:26:00 +0000

$169,900

HUGE PRICE DROP to sell fast - 2BR Deptford 55+ home

noreply@blogger.com (Team NJPA) — Fri, 31 Dec 2010 15:51:00 +0000

3BR Clementon home - For Sale OR For Rent!!

noreply@blogger.com (Team NJPA) — Tue, 21 Dec 2010 05:14:00 +0000

FOR SALE - $169,900 or FOR RENT $1399/month.

Gloucester City triplex - price reduction!!

noreply@blogger.com (Team NJPA) — Fri, 10 Dec 2010 20:47:00 +0000

OPEN HOUSE this Sunday, December 12th 1 - 3pm 55+ community in Woodbury NJ

noreply@blogger.com (Team NJPA) — Wed, 08 Dec 2010 03:44:00 +0000

OPEN HOUSE - Sunday December 5th 1 - 3:30pm Deptford 2BD home in a 55+ community.

noreply@blogger.com (Team NJPA) — Mon, 29 Nov 2010 20:07:00 +0000

Taking the Stress Out of the Home-Buying Process

noreply@blogger.com (Team NJPA) — Mon, 22 Nov 2010 21:51:00 +0000

Taking the Stress Out of the Home-Buying Process

By Paige Tepping

RISMEDIA, November 20, 2010--For many prospective buyers, the thought of going through the home-buying process is often filled with a lot of stress. From finding a qualified real estate agent, to narrowing down your choice of homes and then packing your belongings and moving across town can be an overwhelming process.

OpenSkyRealEstate.com offers the following tips to help you keep your cool as you begin the process of a buying a home.

-Buying a home is one of the biggest financial decisions you will make in your lifetime, and along with the finances come emotions. When you are choosing a real estate agent to work with, be patient and take the time you need to find an agent that you connect with. Finding a highly-skilled agent who fits with your personality is crucial.

-Every home buyer and seller is in a different situation, so it is important that you don’t compare your timeline and decisions to anyone else’s. As you make your way through the home buying process, remember that there is no right time to buy, just as there is no perfect time to sell. If you find a home that fits your needs, don’t let it slip out of your hands by waiting for interest rates to drop lower as you run the chance of losing out on the home of your dreams.

-It is natural to want to get opinions from those you trust before you make your final choice, but too much input will ultimately make the decision process much harder. Remember to focus on what your immediate wants and needs are so that everyone will be happy with the final decision.

-You probably aren’t going to find a home that is 100% perfect, so it is important to make a list that includes your top priorities that you can’t live without. Be sure to stick to the items on your list and let go of the minor things.

-Negotiation is an important part of the real estate buying process, but be sure you don’t take your negotiating too far. Trying to get an extra-low price or refusing to budge on your offer may cost you the home in the end. Successful negotiation depends on give and take, so make sure you are being fair in your requests.

-Don’t get too caught up in all the physical aspects of a home and forget about the more important issues. While the size of the rooms and the layout of the kitchen might not be exactly what you expected, be cognizant of issues such as noise level, location to amenities and other aspects that will have an impact on your day-to-day life.

-Getting approved for a mortgage should be taken care of well before you find a home and make an offer.

-Create a budget before you move into your new home and be sure to include maintenance and repair costs. Even if you buy a new home, there will be extra costs, so it is important to not come up short and let your new home deteriorate.

-After purchasing a home, a little buyer’s remorse is inevitable, but it will pass. Buying a home is a big financial commitment, but it also yields big benefits. If you are feeling remorseful after buying your home, remind yourself why you wanted to buy a home and what made you fall in love with your new property.

-When choosing a home, buy it because you love it. A home’s most important role is to serve as a comfortable, safe place to live, so don’t get bogged down with thinking about your home’s appreciation.

Pay Off Debt Before Saving for Retirement

noreply@blogger.com (Team NJPA) — Mon, 22 Nov 2010 20:48:00 +0000

Pay Off Debt Before Saving for Retirement

By Claudia Buck

RISMEDIA, November 20, 2010--(MCT)--Hard times elicit tough choices. This week, Steven Zeller, a Gold River, Calif.-based investment adviser, tackles a reader's question on credit card debt and mortgage loans.

QUESTION: I've entered into a hardship payment program with the six banks that issued my 10 credit cards. I'm paying off $80,000 at an overall interest rate of 6 percent (down from an average of 20 percent). Due to the reduced payments, I now have $3,000 in monthly surplus income to either invest with, or pay down the credit cards.

I also have an upside-down mortgage on a rental house owned as income property. The bank seems (unwilling) to either modify or reduce the principal so I can sell it.

In time, this will all find its way into (Chapter 11 bankruptcy) courts. Life would be simpler if I pay down the credit cards and concentrate on (getting) the house above water. Instead, I've decided to invest the surplus in ERISA retirement vehicles and Roth IRAs. They would be exempt from collections but available as bargaining chips when negotiating with creditors. What is your opinion?

ANSWER: I would not encourage anyone to go into bankruptcy proceedings if he or she can help it. It creates a lot of stress and is not the best for your self-esteem.

If you have 10 credit cards to pay off, 6 percent is a pretty good deal instead of 20 percent.

I would begin paying off the credit cards, starting with the smallest one first, until they are all gone for good.

It may be painful at first, but you will increase your cash flow over time by (eliminating) the monthly payments.

Then I would attack the upside-down situation with your rental. In the long run, it is better, financially and emotionally, to be debt-free. And if the (credit card issuers) are giving you that opportunity, I would jump on it.

It would be a great personal and moral accomplishment.

At the end of the day, if you pay into an IRA and Roth IRA instead of paying down your credit card debt, you will still have debt. As far as negotiating with the (lender) on your rental property, I'm not sure it would look at the situation very positively if it saw you were fully funding your IRAs.

(c) 2010, The Sacramento Bee (Sacramento, Calif.).

Distributed by McClatchy-Tribune Information Services.

How to Be the Expert in Tough Times

noreply@blogger.com (Team NJPA) — Mon, 22 Nov 2010 18:26:00 +0000

How to Be the Expert in Tough Times

By Margaret Kelly

RISMEDIA, November 22, 2010—With the bulk of the subprime mortgage resets behind us, it may seem that the only direction to move is straight up toward recovery. Projections through 2012, however, show two more waves of resets on more than $1 trillion in Alt-A and Option ARM mortgages.

Many owners of these properties may face foreclosure, as did subprime borrowers. This means the current shadow inventory is expected to remain at record levels. NAR estimates that there are 2.7 million delinquencies (90 days or more), foreclosures and REOs that have yet to reach the market. Absorption of these properties could take several years in some major markets.

It’s in everyone’s best interest—including the banks’—to release shadow properties onto the market in stages. Until the backlog is cleared, however, the housing market will continue to recover slowly. You can expect to see the market conditions you’re seeing today for the next few years. In the meantime, the real estate professionals who will succeed are the ones who are committed to being the experts in the tough times, too.

Move Out of the Shadows

If digging your heels in against entering the distressed property market seems more and more like a bad idea, it’s not too late to become an expert. Consider earning the Certified Distressed Property Expert (CDPE) designation, NAR’s Short Sales and Foreclosure Resource (SFR) certification, and the Five Star Institute’s Short Sale and REO certifications. Agents who have earned these credentials report a significant impact on their businesses.

Focus on Pricing with Sellers

The release of shadow inventory typically puts a strain on home prices, and can create a clogged pipeline of homes on the market. Pricing homes competitively is one of the simplest ways to buck that trend and stimulate demand among all types of buyers, including first-timers, repeat buyers and investors.

Make Buyers Aware

Although any of us would prefer this slump be behind us, there are positives in the market for qualified buyers. With interest rates so low and prices extremely competitive, there are opportunities for some buyers to find deals on previously unobtainable properties. Investors, in particular, will play a larger and larger role in moving inventory. It’s smart to reach out to all categories of buyers.

There is some good news in all this. By the end of 2012, the bulk of Alt-A and Option ARM resets will also be behind us. With no guarantees on how long it will take to re-establish balance in the market, it’s important in the short- and long-term that you’re prepared to face this challenging inventory head-on.

Margaret Kelly, CRB, is chief executive officer of RE/MAX LLC

Report: More Time from Mortgage Application to Closing Drives Decline in Customer Satisfaction

noreply@blogger.com (Team NJPA) — Fri, 19 Nov 2010 18:12:00 +0000

Report: More Time from Mortgage Application to Closing Drives Decline in Customer Satisfaction

RISMEDIA, November 19, 2010—Driven by an increase in length of time from application to approval, the average timeline of the mortgage origination process has increased for a third consecutive year, while customer satisfaction has declined, according to the J.D. Power and Associates 2010 U.S. Primary Mortgage Origination Satisfaction Study released.

The study, based on the voice of the customer, measures customer satisfaction in four key factors of the mortgage origination experience: application/approval process; loan officer/mortgage broker; closing; and contact.

The study finds that the time from application to approval has increased to 27.5 days in 2010 from 20 days in 2009. As a result, the time frame for the entire origination process has increased to 52.1 days in 2010 from 46.9 days in 2009. Consequently, overall satisfaction has decreased to 734 (on a 1,000-point scale) in 2010 from 739 in 2009.

"While the revised Real Estate Settlement Procedures Act guidelines appear to have streamlined and shortened the time from approval to closing, the unintended consequence is that the application-to-approval time frame has lengthened and become more complicated," said David Lo, director of financial services at J.D. Power and Associates. "Ultimately, this longer timeline has a negative impact on overall satisfaction, although there are specific best practices that may mitigate the negative perceptions."

The study finds that the most important best practices, which are most closely associated with high levels of satisfaction, are:

• Providing proactive updates on the status of the loan
• Providing a welcome acknowledgment after an application is submitted
• Avoiding asking for the same information more than once
• Closing on the promised date
• Clearly explaining loan options and ensuring that the customer understands
• Clearly explaining the entire process from application to approval

The study also finds that usage of the online application channel continues to increase. Nearly 20 percent of customers now go online to start the mortgage application process, up from 14 percent in 2009. In comparison, only 29 percent of customers start the mortgage application process in person, while 33 percent did so in 2009. In addition, fewer customers this year say that they met with their loan officer or mortgage broker in person during the mortgage origination process -- 50 percent, compared with 57 percent in 2009.

"Customer preference and, more importantly, perceptions, continue to increase with the online direct channel," said Lo. "Online lenders do a very good job of keeping their customers informed of the process every step of the way by providing periodic status updates and information pertaining to their loan."

The 2010 U.S. Primary Mortgage Origination Satisfaction Study is based on responses from 3,401 consumers who originated new mortgages. The study was fielded between July and August 2010.

Bankrate: Mortgage Rates Rise Significantly

noreply@blogger.com (Team NJPA) — Fri, 19 Nov 2010 16:12:00 +0000

Bankrate: Mortgage Rates Rise Significantly

RISMEDIA, November 19, 2010—Mortgage rates increased again this week, with the average conforming 30-year fixed mortgage rate now 4.62 percent, according to Bankrate.com's weekly national survey. The average 30-year fixed mortgage has an average of 0.37 discount and origination points.

To see mortgage rates in your area, go to http://www.bankrate.com/funnel/mortgages/.

The average 15-year fixed mortgage increased to 4.02 percent, and the larger jumbo 30-year fixed rate soared as well to 5.24 percent. Adjustable rate mortgages also climbed higher, with the average 5-year ARM inching higher to 3.71 percent and the average 7-year ARM rising to 4.01 percent.

Mortgage rates jumped significantly this week, posting a second consecutive weekly increase since the Federal Reserve announced renewed measures to boost the economy. Worries that the Fed's quantitative easing program will spark higher inflation, coupled with stronger economic data on retail sales and weekly unemployment filings fueled the latest increase. Although mortgage rates have increased, they remain extremely low in a historical context and will not be an impediment to well-qualified borrowers for the foreseeable future.

The last time mortgage rates were above 6 percent was November 2008. At that time, the average rate was 6.33 percent, meaning a $200,000 loan would have carried a monthly payment of $1,241.86. With the average rate now 4.62 percent, the monthly payment for the same size loan would be $1,027.68, a savings of $214 per month for a homeowner refinancing now.

Stay Warm and Save This Winter

noreply@blogger.com (Team NJPA) — Thu, 18 Nov 2010 19:14:00 +0000

Stay Warm and Save This Winter
By Stephanie Andre

RISMEDIA, November 18, 2010—The cold weather will be here (if not, already) before you know it. And with it comes the likelihood of rising heating bills and drafty windows, doorways and spaces.

To help you make your home more energy-efficient this year, here are some tips from ComEd:

• Have home heating systems cleaned and inspected by a professional each year to ensure safety and optimum efficiency. Be sure to change the filter prior to the heating season, and check its condition monthly.

• Inspect the caulking and weather-stripping around all windows, doors and any openings for utility services. Replace caulking and weather-stripping as necessary. A drafty house lets warm air escape and is much more costly to keep warm.

• Remove window air conditioners if possible, or install an air conditioner cover to eliminate drafts.

• Keep fireplace dampers closed tightly when not in use.

• Reverse the rotation of ceiling fan blades. During the winter, blades should spin so the warm air that has risen can be re-distributed around the room.

• Switch to more energy-efficient lighting, such as CFLs (compact fluorescent light bulbs), which use about 75 percent less energy than standard incandescent bulbs and last up to 10 times longer.

17 Ideas for Marketing Listings

noreply@blogger.com (Team NJPA) — Thu, 18 Nov 2010 15:13:00 +0000

17 Ideas for Marketing Your Listings
By Darryl Davis

RISMEDIA, November 18, 2010—Yesterday, we discussed five concepts to help you get your listings sold. Today, we’ll focus on the keys to marketing those listings. Here are tips and techniques that every Realtor can use:

Hold broker open houses. If selling the agents means getting more buyers, then a brokers’ open house is one of the best tools to use. You should look at it as an opportunity to introduce the product. It ideally should be done in the first one to two weeks that a house goes to multiple listing.

It might take some time to build the reputation and to get a good turnout, but eventually it will happen. Make the open house something special – more of a party or an event. Promote it by making fliers or sending faxes. It’s also a great vehicle for promoting listings that are not getting a lot of activity.

At the open house, distribute opinion sheets. The most important question on the sheet is, “What price do you think the house is going to sell for?” After the open house, sit down with the seller and go through the sheets to find out what most agents think. Then, you can give the option to the sellers to adjust the price accordingly so that you’ll get the activity that’s needed, or leave the price as is and hope you’ll get the activity.

Also, attend other agents’ open houses as well, because you want the same support from them.

Hold public open houses. These are time consuming, but the major plus is that it promotes you and highlights your listing. It shows the seller you’re servicing them and most importantly, you’ll get listing leads.

Showcase your listings. Run a larger-than-usual ad in a local paper, and instead of promoting a public open house on just one listing, promote four to six at a time. Put all the information about these houses into the ad and announce open houses that one weekend.

“Just listed” letters. These can be like “just sold” cards. They are highly effective and a lot easier to do if you are computerized. If you’re going to do these, don’t do postcards.

Call 100 surrounding neighbors of a house you just listed. In addition to telling them about the listing, ask if they know anyone else who might be selling in the area. Also, ask them if they themselves might be thinking of selling, and find out if they know anyone who they’d like to make their new neighbor. If you include this as part of your servicing campaign for sellers, it won’t seem like cold calls; it will seem like “just listed” calls.

The 10-10-20 rule. Since the general rule of “knocking on 100 doors” takes a lot of time and energy, it is more useful to knock on 10 doors to the left, 10 to the right and 20 doors across the street. People in these homes are the most likely to know the listing family personally and, therefore, are most likely to want to help them find a buyer.

Advertise in specialized papers. For example, let’s say you just listed a waterfront property. Then, advertise in boating magazines and other such publications.

A gift to the selling agent. Whenever an agent from another company sells one of your listings, give them a huge gift, like a television. And make sure you deliver it to the office of the selling agent in the middle of their office meeting. Watch the next time you do a Broker’s Open House how many agents attend your open house from that office.

Use report cards. This helps you track the activity of other agents calling on your listings. If you have a listing that’s been on the market for 30 days and you’ve gotten very few calls from other agents inquiring about it, then you’ve got to communicate that with the seller. This helps you get either a price adjustment or terms adjustment.

Hold periodic reviews. Meet with the seller at the 30-day and 60-day mark to discuss price adjustment, terms adjustment or marketing.

Have an individual folder for each listing. Even if you’re computerized, there are still papers and forms you must keep.

A list of your listings hanging by your phone with the price and expiration date. This will act as a constant motivator to get your listings sold. It will also help you stay focused on increasing that list of sellers.

Get a higher commission. One of your tasks is to sell other agents to help you sell this home. A higher commission will surely help you sell the agents

Bimonthly calls. Stay in touch with the seller every two weeks. Discuss what the competition has sold or when you’ll be running an ad about their house or about what kind of responses you’re getting from agents.

Agent evaluation cards. Send one of these to agents every time they show your home. This is based on the assumption that you’ve created a good reputation for yourself.

Farming agents. Create a mailing list of successful agents in your area. Personalize any mailing you send to them. That way, they get the personal attention they deserve.

Common sense pricing. Pricing of houses should be listed in such a way that they show up in more searches, meaning more exposure.

These are just some the items to get your listings sold. The most important one, however, is to have a communication system like we teach our students to validate the homeowner made the right decision when they hired you, and to show them you are doing everything you can to get their property sold. After that, it’s up to them to lower the price.

For over 20 years, Darryl Davis has traveled around the country coaching agents and brokers on how to achieve their Next Level of success. He is the creator of the nationally acclaimed www.ThePowerProgram.com, the only yearlong coaching and training course where Power Agents, on average, double their production over their previous year. Darryl is a best-selling author, one of the highest rated speakers at the NAR Convention each year, and has a career-curriculum that brings agents from “Rookies to Retirement”. To find out about his training programs and/or speaking availability, please visit www.DarrylDavisSeminars.com or call 1-800-395-3905. For more information on the get your listings sold program, go to www.GetYourListingsSold.com.