September is National Preparedness Month

WOW! Can you believe we are here at the last day of September?

September is National Preparedness Month and I dont know about you but with work, the kids going back to school and getting the yard ready for fall it completely slipped my mind. So as a close to this month I am sending out a reminder that it is never too late to get ready.

 

With so many potential disasters that could cause our home and lives some damage, it is good to stop and think about your preparedness for a potential disaster. There are many resources like Ready.gov and various state and local agencies that can provide details about how to be more prepared in case of a disaster.

We at HomeZada wanted to remind people that there are multiple value points in creating a home inventory. These include not only being more prepared, but can also help in maintaining and managing a home. Click on the infographic below to see the 5 Reasons to have a Home Inventory.

“An ounce of prevention is worth a pound of cure.” Benjamin Franklin

The HomeZada Team

Short and Sweet Real Estate News.

Mortgage rates fall to 2-month low after Fed announcement

Rates on 30-year fixed-rate mortgages dropped to a two-month low this week following a recent announcement from the Fed that it would not begin to wind down its bond-buying program.
Rates on 30-year fixed-rate loans averaged 4.32 percent with an average point of 0.7 percent for the week ending Sept. 26, down from 4.5 percent last week but up from 3.4 percent a year ago, according to Freddie Mac’s latest Primary Mortgage Market Survey.

“Mortgage rates fell following the Federal Reserve announcement that it will maintain its bond-buying stimulus,” said Frank Nothaft, Freddie Mac’s vice president and chief economist, in a statement. “These low rates should somewhat offset the house price gains seen the last number of months and keep housing affordability elevated.”

Rates on 15-year fixed-rate mortgages, five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans and one-year Treasury-indexed ARMs also fell.

Pending Home Sales, down 1.6% for August. Observers said rising interest rates were partially to blame for the dip in this measure of contracts signed but not yet closed on existing homes. But national average mortgage rates have dropped the last two weeks with the Fed’s announcement it would continue buying mortgage bonds, which should boost bond prices and keep rates low. Also helping us persevere is the fact Pending Home Sales are still up 5.8% for the year.

Further encouragement came from single-family New Home Sales, up 7.9% in August and 12.6% year-over-year. They’re now at a 421,000 annual rate, not where they need to be, but rebounding strongly. There were also signs of continued success for home prices. The S&P/Case-Shiller 20-city home price index was up 0.62% in July, its 18th consecutive monthly gain, with all 20 metros ahead. Its 12.39% annual gain was its biggest since early 2006. The FHFA price index of homes financed with conforming loans was up 1% in July, also gaining 18 months in a row, and up 8.8% annually.

Source: Freddie Mac

September is almost over go have some fun!

national-coffee-day-2013-cups-ftr Beer

Wow! Can you believe it’s almost the end of September? Have you seen all the Halloween stuff already in stores? Better yet for the really ambitious how about all the Christmas items?  I personally am a one holiday at a time girl. Halloween goes up the 2nd week in October and Christmas not till after Thanksgiving.. one at a time please.

Anyway, if you’re looking for something to do this weekend thought I would just throw out a few happenings.

The Art and Harvest Festival is happening from the 26-29 in Everett with a not to miss Friday night of Beer and Brats.

The Everett Fall Home Show starts tomorrow and ends Sunday.  Go and get motivated for any and all of your remodeling projects.

There is a Hot Rod Car show in Snohomish on the 29th.

Italian Festival at the Seattle Center 9/28 – 9/29

Octoberfest Celebration in Kirkland Friday – Sunday.

Still want fresh produce? Lots to be had at the Farmers Market in Everett and the one Country Village. Both on Friday so load up for the weekend.

And are you wondering why I put the coffee and beer picture on? Well Sunday September 29th is National Coffee day and who would we be in the Great Northwest to not recognize this day?

So after all that beer, brats, pasta and wine from the festivals you will need a break and some coffee on Sunday!

Enjoy!

http://www.snohomishcountyhomes4u.com

New Listing in Outlook Ridge


Welcome to Outlook Ridge! An exceptional community built by Cambria homes that boasts some of the best views in the area of Mt. Baker, Snohomish River Valley and the Cascades. This home welcomes you w/high ceilings and large living room. The open kitchen w/gathering room & gas firplc will keep you cozy as you enter from the large 3 car garage. Upstairs is an incredible Master retreat with 5/pc bath, sitting room and another fireplace! The loft is huge and so are the additional 3+ beds. See Now!

Demand for Puget Sound area homes “still incredibly strong,”

News from NW Multiple Listing Service

FOR IMMEDIATE RELEASE: September 5, 2013

Demand for Puget Sound area homes “still incredibly strong,”
but brokers report frenzy is easing in some neighborhoods

Current Statistics

Kirkland, WA – September 5, 2013. Northwest Multiple Listing Service figures for August show brisk sales, escalating prices and some improvement in inventory, prompting one MLS director to declare, “What these numbers tell us loud and clear is that buyer demand in the Puget Sound region is still incredibly strong.”

In making that comment, OB Jacobi, president of Windermere Real Estate, noted the housing market tends to experience some slowing during August, but rising inventory levels and sustained buyer demand fueled “higher than expected home sales and another month of strong appreciation.”

The latest figures from Northwest MLS show pending sales (mutually accepted offers) during August increased 8.7 percent from a year ago. Brokers in the 21 counties served by the MLS reported 9,065 pending sales system-wide. That’s a drop of 500 units from July, but an increase of 727 transactions compared to a year ago (August 2012). In the four-county Puget Sound region (King, Kitsap, Pierce, and Snohomish), the total of 6,916 pending sales was the highest volume for August since 2006 when members notched 7,692 sales.

Prices also reflected an upward trajectory. The area-wide median price for last month’s completed sales of single family homes and condominiums was $283,000, which compares to the year ago figure of $250,000 for a gain of 13.2 percent. Only two other months this year have had higher year-over-year increases: March (14.9 percent) and May (13.4 percent). Since January, prices have jumped 18.3 percent.

Prices on single family homes (excluding condos) that sold during August increased from $263,495 to $294,000 for a gain of 11.6 percent.

An analysis by Lennox Scott, chairman and CEO of John L. Scott Real Estate, shows King County median prices for August ($392,500, including single family homes and condos) are at 92.4 percent of the peak price of $425,000, set in July 2007. He credits a surge in sales activity and a shortage of homes for sale as primary drivers of spiking prices during the past two years.

“We have seen 22 straight months of strong-surge sales activity,” Scott reported. “Job growth, pent up demand by local home buyers, residential investors, incoming transferees, a strong local economy and historically low interest rates have led the way during this recovery phase of the residential housing market,” Scott stated.

Northwest MLS director Frank Wilson, the Kitsap District manager and branch managing broker for John L. Scott Poulsbo-Kingston noted prices in Kitsap County have not spiked as much as some other areas during this recovery period. For sales in that county that closed during August, prices rose slightly more than 3 percent compared to a year ago. “Since recovery should be a long-term return to normalcy, there seems to be a bit more sanity in Kitsap,” he remarked.

Despite moderate price gains in Kitsap County, buyers were active, with year-over-year pending sales jumping 19.7 percent.

Inventory is showing signs of stabilizing in many Western Washington areas, with members adding nearly 1,800 more new listings to the MLS database during August compared to the same month a year ago. With that 21 percent increase in new listings, the total number of active listings at month end (26,433) was almost on par with a year ago when the selection encompassed 26,506 homes for sale.

Dick Beeson, the principal managing broker of RE/MAX Professionals in Tacoma, noted some key indicators are trending lower or slower as the market adjusts to a “new normal.” The former chair of Northwest MLS also said it would be hard to continue the near record-setting pace of the last few months.

“While the overall market remains vibrant and active, we don’t appear to have the frantic ‘must have this home because there may not be another’ mentality among buyers,” Beeson reported, adding, “The increase in both inventory — a near return to 2012 levels — and the sharp increase in interest rates have been the most influential factors in an end-of-the-summer market adjustment.”

Another past chairman of Northwest MLS, Mike Gain, said inventory shortages are still common in many parts of King County. MLS figures show of 22 of the 29 map areas it tracks in King County had fewer listings at the end of August than at the same time a year ago.

Measured by months of supply, King County, with only 1.7 months of supply, is well below the 4-to-6-month level that many analysts use as an indicator of healthy levels or a balanced market. The selection is also squeezed in Snohomish County, where there is 1.8 months of supply. System-wide, the figure is at 2.9 months.

Gain, the CEO and president of Prudential Northwest Realty Associates, said many industry-watchers predicted rising interest rates would slow down the market. “Well, it has not, because despite jumps in prices and interest rates, homes are still more affordable than they have been in decades.” He said buyers are on “heightened alert” because of the recent upward movement in interest rates. “We don’t expect interest rates to stay as low as they are today and prices in our area are expected to continue to rise. For anyone who is thinking of buying, now is the time,” he suggests.

Darin Stenvers, a director with Northwest MLS, called the current market “the strongest in four or five years,” with signs of stability that should continue into 2014. “If a buyer finds the home of their dreams, they should make their first offer their best offer or risk losing that home,” he stated.

Stenvers, the managing broker at John L. Scott in Bellingham, also offered advice to sellers who have unrealistic expectations. “Sellers should still be concerned about overpricing their homes,” he emphasized. “Some markets may handle the overpricing, others will not,” he noted, adding, “While sales are brisk, many sellers are not getting the full listing price.” Price reductions and/or financing contributions may be needed to assist buyers.

The condominium market is rebounding in some areas, offering a good alternative for renters who are seeking good housing at affordable prices. Although the inventory is still below year-ago levels (down 4.8 percent), Stenvers said there is a good selection with great pricing options. Also, he pointed out buyers can purchase with a down payment that is in line with landlord demands for upfront rent and large deposits, and have a more affordable monthly payment.

Pending sales of condos area-wide rose about 6.3 percent during August. Closed sales jumped more than 17.4 percent, with prices surging 26.7 percent.

“We are definitely working our way nicely through this housing recovery, with all of the latest data showing strong year-over-year gains in prices and sales of both pending and closed transactions,” Gain commented. He also noted the National Association of Realtors® (NAR) reported the national median existing home price increased at an annual rate of 12.2 percent – the biggest yearly price increase since Q4 of 2005.

Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 21,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 21 counties in Washington state.
Statistical summary follows.

Statistical Summary by Counties: Market Activity Summary – August 2013

Single
Family
Homes
+ Condos LISTINGS PENDING
SALES CLOSED SALES MONTHS
SUPPLY
New
Listings Total
Active # Pending
Sales #
Closings Avg.
Price Median
Price
King
3,893 6,171 3,567 3,227 467,308 392,500 1.73
Snohomish
1,424 2,565 1,402 1,143 321,265 295,000 1.83
Pierce
1,598 3,769 1,486 1,250 246,808 225,000 2.54
Kitsap
493 1,559 461 383 305,872 253,750 3.38
Mason
162 849 115 101 190,301 158,900 7.38
Skagit
241 890 205 171 247,363 229,000 4.34
Grays Hrbor
151 886 101 95 133,063 110,000 8.77
Lewis
160 770 106 86 163,194 149,700 7.26
Cowlitz
144 519 123 97 164,438 156,000 4.22
Grant
96 572 80 80 170,623 162,750 7.15
Thurston
509 1355 410 361 246,638 235,000 3.30
San Juan
37 449 30 31 466,435 389,000 14.97
Island
203 904 157 160 296,384 244,500 5.76
Kittitas
85 490 80 58 241,643 186,700 6.13
Jefferson
64 510 69 55 271,681 252,000 7.39
Okanogan
61 493 46 32 259,738 192,765 10.72
Whatcom
484 1722 348 274 277,350 253,400 4.95
Clark
63 199 56 57 242410 235,800 3.55
Pacific
71 497 52 38 147,861 140,000 9.56
Ferry
8 69 5 3 155,000 125,000 13.8
Clallam
75 481 71 59 205,744 185,000 6.77
Others
150 714 95 70 244,831 204,500 7.52
MLS TOTAL
10,172
26,433
9,065
7,841
$348,736
$283,000
2.92

4-County Puget Sound Region Pending Sales (SFH + Condo combined)
(Totals include King, Snohomish, Pierce & Kitsap counties)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2000 3706 4778 5903 5116 5490 5079 4928 5432 4569 4675 4126 3166
2001 4334 5056 5722 5399 5631 5568 5434 5544 4040 4387 4155 3430
2002 4293 4735 5569 5436 6131 5212 5525 6215 5394 5777 4966 4153
2003 4746 5290 6889 6837 7148 7202 7673 7135 6698 6552 4904 4454
2004 4521 6284 8073 7910 7888 8186 7583 7464 6984 6761 6228 5195
2005 5426 6833 8801 8420 8610 8896 8207 8784 7561 7157 6188 4837
2006 5275 6032 8174 7651 8411 8094 7121 7692 6216 6403 5292 4346
2007 4869 6239 7192 6974 7311 6876 6371 5580 4153 4447 3896 2975
2008 3291 4167 4520 4624 4526 4765 4580 4584 4445 3346 2841 2432
2009 3250 3407 4262 5372 5498 5963 5551 5764 5825 5702 3829 3440
2010 4381 5211 6821 7368 4058 4239 4306 4520 4350 4376 3938 3474
2011 4272 4767 6049 5732 5963 5868 5657 5944 5299 5384 4814 4197
2012 4921 6069 7386 7015 7295 6733 6489 6341 5871 6453 5188 4181
2013 5548 6095 7400 7462 7743 7374 7264 6916

__________
Copyright © 2013 Northwest Multiple Listing Service
ALL RIGHTS RESERVED

Demand For Puget Sound Area Homes "Still incredibly strong"

News from NW Multiple Listing Service
FOR IMMEDIATE RELEASE: September 5, 2013

Demand for Puget Sound area homes “still incredibly strong,”
but brokers report frenzy is easing in some neighborhoods

Kirkland, WA – September 5, 2013. Northwest Multiple Listing Service figures for August show brisk sales, escalating prices and some improvement in inventory, prompting one MLS director to declare, “What these numbers tell us loud and clear is that buyer demand in the Puget Sound region is still incredibly strong.” In making that comment, OB Jacobi, president of Windermere Real Estate, noted the housing market tends to experience some slowing during August, but rising inventory levels and sustained buyer demand fueled “higher than expected home sales and another month of strong appreciation.”

The latest figures from Northwest MLS show pending sales (mutually accepted offers) during August increased 8.7 percent from a year ago. Brokers in the 21 counties served by the MLS reported 9,065 pending sales system-wide. That’s a drop of 500 units from July, but an increase of 727 transactions compared to a year ago (August 2012). In the four-county Puget Sound region (King, Kitsap, Pierce, and Snohomish), the total of 6,916 pending sales was the highest volume for August since 2006 when members notched 7,692 sales.

Prices also reflected an upward trajectory. The area-wide median price for last month’s completed sales of single family homes and condominiums was $283,000, which compares to the year ago figure of $250,000 for a gain of 13.2 percent. Only two other months this year have had higher year-over-year increases: March (14.9 percent) and May (13.4 percent). Since January, prices have jumped 18.3 percent.

Prices on single family homes (excluding condos) that sold during August increased from $263,495 to $294,000 for a gain of 11.6 percent.

An analysis by Lennox Scott, chairman and CEO of John L. Scott Real Estate, shows King County median prices for August ($392,500, including single family homes and condos) are at 92.4 percent of the peak price of $425,000, set in July 2007. He credits a surge in sales activity and a shortage of homes for sale as primary drivers of spiking prices during the past two years.

“We have seen 22 straight months of strong-surge sales activity,” Scott reported. “Job growth, pent up demand by local home buyers, residential investors, incoming transferees, a strong local economy and historically low interest rates have led the way during this recovery phase of the residential housing market,” Scott stated.

Northwest MLS director Frank Wilson, the Kitsap District manager and branch managing broker for John L. Scott Poulsbo-Kingston noted prices in Kitsap County have not spiked as much as some other areas during this recovery period. For sales in that county that closed during August, prices rose slightly more than 3 percent compared to a year ago. “Since recovery should be a long-term return to normalcy, there seems to be a bit more sanity in Kitsap,” he remarked.

Despite moderate price gains in Kitsap County, buyers were active, with year-over-year pending sales jumping 19.7 percent.

Inventory is showing signs of stabilizing in many Western Washington areas, with members adding nearly 1,800 more new listings to the MLS database during August compared to the same month a year ago. With that 21 percent increase in new listings, the total number of active listings at month end (26,433) was almost on par with a year ago when the selection encompassed 26,506 homes for sale.

Dick Beeson, the principal managing broker of RE/MAX Professionals in Tacoma, noted some key indicators are trending lower or slower as the market adjusts to a “new normal.” The former chair of Northwest MLS also said it would be hard to continue the near record-setting pace of the last few months.

“While the overall market remains vibrant and active, we don’t appear to have the frantic ‘must have this home because there may not be another’ mentality among buyers,” Beeson reported, adding, “The increase in both inventory — a near return to 2012 levels — and the sharp increase in interest rates have been the most influential factors in an end-of-the-summer market adjustment.”

Another past chairman of Northwest MLS, Mike Gain, said inventory shortages are still common in many parts of King County. MLS figures show of 22 of the 29 map areas it tracks in King County had fewer listings at the end of August than at the same time a year ago.

Measured by months of supply, King County, with only 1.7 months of supply, is well below the 4-to-6-month level that many analysts use as an indicator of healthy levels or a balanced market. The selection is also squeezed in Snohomish County, where there is 1.8 months of supply. System-wide, the figure is at 2.9 months.

Gain, the CEO and president of Prudential Northwest Realty Associates, said many industry-watchers predicted rising interest rates would slow down the market. “Well, it has not, because despite jumps in prices and interest rates, homes are still more affordable than they have been in decades.” He said buyers are on “heightened alert” because of the recent upward movement in interest rates. “We don’t expect interest rates to stay as low as they are today and prices in our area are expected to continue to rise. For anyone who is thinking of buying, now is the time,” he suggests.

Darin Stenvers, a director with Northwest MLS, called the current market “the strongest in four or five years,” with signs of stability that should continue into 2014. “If a buyer finds the home of their dreams, they should make their first offer their best offer or risk losing that home,” he stated.

Stenvers, the managing broker at John L. Scott in Bellingham, also offered advice to sellers who have unrealistic expectations. “Sellers should still be concerned about overpricing their homes,” he emphasized. “Some markets may handle the overpricing, others will not,” he noted, adding, “While sales are brisk, many sellers are not getting the full listing price.” Price reductions and/or financing contributions may be needed to assist buyers.

The condominium market is rebounding in some areas, offering a good alternative for renters who are seeking good housing at affordable prices. Although the inventory is still below year-ago levels (down 4.8 percent), Stenvers said there is a good selection with great pricing options. Also, he pointed out buyers can purchase with a down payment that is in line with landlord demands for upfront rent and large deposits, and have a more affordable monthly payment.

Pending sales of condos area-wide rose about 6.3 percent during August. Closed sales jumped more than 17.4 percent, with prices surging 26.7 percent.

“We are definitely working our way nicely through this housing recovery, with all of the latest data showing strong year-over-year gains in prices and sales of both pending and closed transactions,” Gain commented. He also noted the National Association of Realtors® (NAR) reported the national median existing home price increased at an annual rate of 12.2 percent – the biggest yearly price increase since Q4 of 2005.
Northwest Multiple Listing Service, owned by its member real estate firms, is the largest full-service MLS in the Northwest. Its membership includes more than 21,000 real estate brokers. The organization, based in Kirkland, Wash., currently serves 21 counties in Washington state.
Statistical summary follows.

Statistical Summary by Counties: Market Activity Summary – August 2013

Single
Family
Homes
+ Condos
LISTINGS PENDING
SALES
CLOSED SALES MONTHS
SUPPLY
New
Listings

Total
Active

# Pending
Sales

#
Closings

Avg.
Price

Median
Price

King
3,893
6,171
3,567
3,227
467,308
392,500
1.73
Snohomish
1,424
2,565
1,402
1,143
321,265
295,000
1.83
Pierce
1,598
3,769
1,486
1,250
246,808
225,000
2.54
Kitsap
493
1,559
461
383
305,872
253,750
3.38
Mason
162
849
115
101
190,301
158,900
7.38
Skagit
241
890
205
171
247,363
229,000
4.34
Grays Hrbor
151
886
101
95
133,063
110,000
8.77
Lewis
160
770
106
86
163,194
149,700
7.26
Cowlitz
144
519
123
97
164,438
156,000
4.22
Grant
96
572
80
80
170,623
162,750
7.15
Thurston
509
1355
410
361
246,638
235,000
3.30
San Juan
37
449
30
31
466,435
389,000
14.97
Island
203
904
157
160
296,384
244,500
5.76
Kittitas
85
490
80
58
241,643
186,700
6.13
Jefferson
64
510
69
55
271,681
252,000
7.39
Okanogan
61
493
46
32
259,738
192,765
10.72
Whatcom
484
1722
348
274
277,350
253,400
4.95
Clark
63
199
56
57
242410
235,800
3.55
Pacific
71
497
52
38
147,861
140,000
9.56
Ferry
8
69
5
3
155,000
125,000
13.8
Clallam
75
481
71
59
205,744
185,000
6.77
Others
150
714
95
70
244,831
204,500
7.52
MLS TOTAL
10,172
26,433
9,065
7,841
$348,736
$283,000
2.92

4-County Puget Sound Region Pending Sales (SFH + Condo combined)
(Totals include King, Snohomish, Pierce & Kitsap counties)

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
2000 3706 4778 5903 5116 5490 5079 4928 5432 4569 4675 4126
3166
2001 4334 5056 5722 5399 5631 5568 5434 5544 4040 4387 4155
3430
2002 4293 4735 5569 5436 6131 5212 5525 6215 5394 5777 4966
4153
2003 4746 5290 6889 6837 7148 7202 7673 7135 6698 6552 4904
4454
2004 4521 6284 8073 7910 7888 8186 7583 7464 6984 6761 6228
5195
2005 5426 6833 8801 8420 8610 8896 8207 8784 7561 7157 6188
4837
2006 5275 6032 8174 7651 8411 8094 7121 7692 6216 6403 5292
4346
2007 4869 6239 7192 6974 7311 6876 6371 5580 4153 4447 3896
2975
2008 3291 4167 4520 4624 4526 4765 4580 4584 4445 3346 2841 2432
2009 3250 3407 4262 5372 5498 5963 5551 5764 5825 5702 3829 3440
2010 4381 5211 6821 7368 4058 4239 4306 4520 4350 4376 3938 3474
2011 4272 4767 6049 5732 5963 5868 5657 5944 5299 5384 4814 4197
2012 4921 6069 7386
7015
7295
6733
6489
6341
5871
6453
5188
4181
2013
5548
6095
7400
7462
7743
7374
7264
6916

__________
Copyright © 2013 Northwest Multiple Listing Service
ALL RIGHTS RESERVED

USDA Zero down program is disappearing for Home Buyers!!!!

Current Map

Wow this is definitely the year for Real Estate news! Yesterday I brought you news on Short Sales and today its one of my favorite programs for helping families get into a home with virtually ZERO down and is a perfect loan for First Time Home Buyers.

Check this out: Effective October 1, 2013, the  USDA will be imposing their revised property eligibility changes as a result of the 2010 Census findings (unless Congress extends the date which has happened twice now).

This is going to prevent several families from buying right now and it’s hard for me to see changes such as the one’s proposed as it almost eliminates entire areas that once qualified for USDA financing. For example, above is the current eligibility map and with this change much of Lake Stevens, Marysville and Arlington will not qualify as of October 1, 2013.

Here is a link that you can use to search property addresses, or look at regions that may be affected by the proposed changes. 

If you, or you know of someone, wanting to start looking for a home using the USDA program please have them get in contact with me. I have several great lenders I use that can get you pre-qualified and we can start looking right away. If we get in a contract before October 1st and they do change the boundaries you most likely can be grandfathered in but, the sooner the better!!

Sellers who currently live in these areas you should also take note if you are thinking of listing do it ASAP! Expanding your buyer pool keeps you competitive and sells you home quicker!

As always, please feel free to call me directly with questions – (425)422-7243.
www.snohomishcountyhomes4u.com

Know of anyone thinking of a Short Sale?? Important changes coming.

I am a Short Sale negotiator but I am not a lawyer and cannot give legal advice so for my short sales I team up with a law firm which has worked out great for my sellers. I thought I would share one of their most recent law updates with you as so many people do not realize the changes that are coming their way.  If you, or you know of someone, that is thinking of a short sale send them this information and tell them to get in touch with me so we can help.  Its a long read but remember from a Law firm and great info!
WE ARE AT THE TIME OF YEAR THAT WE REALLY NEED TO FOCUS ON THE ISSUE OF FORGIVENESS OF DEBT TAX

I am not convinced that Real Estate Professionals are taking this type of tax into enough consideration as we progress through the rest of 2013. Heck it’s almost over as far as a typical short sale is concerned.

This is a real tax and a tax that needs to be analyzed with each and every seller with whom you encounter. I am concerned as I hear real estate professionals consistently talk of the end of the year as a deadline for the special law that eliminates the tax for many taxpayers, but not for everybody.

I DON’T THINK WE HAVE BEEN SERIOUS ENOUGH IN BRINGING THIS ISSUE TO SELLERS’ ATTENTION

This is a tax law that has allowed many homeowners to escape thousands of dollars of tax liability based upon their meeting certain criteria.

In my practice of dealing with distressed homeowners, THIS IS A HUGE MATTER each time I meet with a seller. It is an important matter handled in each and every consultation. Not all sellers qualify for the exception. I am concerned as some are Brokers are sloppy and have it apply to almost everybody. It was not designed to protect everybody or even benefit everybody.

THIS SPECIAL TAX BENEFIT HAS A HIGH LIKELIHOOD OF ENDING THIS DECEMBER 31ST!!!

I don’t like to always bring up fear, but if I am advising clients that may qualify for this rule I am advising them to take advantage and SELL SHORT RIGHT NOW as it becomes more dangerous as we get closer and closer to the end of December. As we often say: “There is nothing short about a short sale”. I am not convinced that it will be extended. Frankly, I fear that it won’t  and I think, as a result, that I would encourage taking short sale action NOW as opposed to waiting until later on this year. A word to the wise.

I ALWAYS TALK TAX WITH EVERY DISTRESED HOMEOWNER I MEET

Now as we are already almost into September, this whole subject takes on new importance. I am writing this message today to make sure that you Brokers out there are taking this tax matter seriously. TODAY…….NOT FOUR MONTHS FROM NOW!!!!!
Why worry, you say, about something happening four (4) months from now? You should worry. You should plan now and change your methodology dramatically for the rest of this year.

I AM ENCOURAGING SELLERS TO ENGAGE “NOW” IN THEIR SHORT SALE… NOW IS A TIME NOT TO WAIT

So we are suggesting that sellers really engage and start moving forward and listing and selling. It makes good sense if they want to take advantage of the forgiveness of debt tax before the end of the year. You have to get going now to make sure the deal gets closed before the end of the year. In fact, that is asking for a lot to happen in a very short time. As we all know, there is nothing short about a short sale.

A SHORT “CLIFF NOTES VERSION” OF THIS TAX RULE

Every real estate licensee out there that is talking with any distressed homeowner about doing anything for those folks has to at least know that this tax exists. It’s simple really, but most sellers have no clue about it and, frankly, don’t understand it at all. I see their eyes glazing over every time I bring it up to a typical client, but I get their attention when I tell them the tax is easily over $28,000.00 unless they pay close attention. They wake up immediately. You see that is the tax on $100,000.00 of debt forgiveness, which is a pretty typical amount in our practice. That is a serious tax consequence. Have you thought about that in relation to that listing you just took? I tell short sale sellers that in most cases we are able to have an exception because of special rules that assist homeowners who have lived in their primary residence property for a prescribed period of time.

There are exceptions, but in many cases THEY CAN TOTALLY AVOID THAT TAX AND DO A SHORT SALE!!

EVERY SHORT SALE ALWAYS PRODUCES SOME DEBT FOREGIVENESS [YOU CAN COUNT ON THAT!!]

You can count on debt forgiveness in every short sale. It comes with the territory. The key factor is whether it will adversely affect your seller or not. In many cases it won’t. However, one has to go through that tax law with a fine tooth comb and account for each and every refinance that your sellers did on their home during their time of ownership. Many used their property as cash registers!!! We do all those calculations in our consultation.
I have to tell all of you that tax advice is not part of your license as a real estate professional and I am happy to give you information in this outline of the tax law. I am NOT suggesting that you all go out and apply it to your sellers’ situation. There are a lot of traps for the unwary here folks.

EVERY CONSULTATION MY ATTORNEYS CONDUCT INCLUDES TAX ADVICE…REMEMBER NOT ALL ATTORNEYS INCLUDE TAX ADVICE

It’s part of what we do. We discuss tax matters in everyone on of our $150.00 Consultations. So you don’t have to send your seller to their CPA. We can handle that AND include all the law and credit aspects as well.  An integral part of our practice is tax. We attorneys are happy to talk tax. Be cautious as many attorneys do NOT include tax as part of their consultations, and as a result, your client has to also see a CPA or tax accountant. We are a one stop shop.

NOW IS THE TIME TO PLAN…WHAT HAPPENS IF THE CONGRESS DOES NOT FURTHER EXTEND THIS FAVORABLE TAX TREATMENT?

This favorable tax law that allows your clients to avoid this tax on debt forgiveness expires in about four (4) months on December 31st. I monitor this daily through our Bar Association Committee on Taxation back in Washington, D.C. Very little is happening on that front and conventional wisdom indicates that there is a likelihood of this tax law NOT being extended!!
We need to prepare now. We need to change the “talk track” you have with your sellers. Sellers are coming in to me now with this issue on their mind as many have been informed by others about the adverse consequences if the tax law goes out of existence at the end of the year.
HECK….WE ARE ALREADY DOING IT!!!! WE ARE PREPARED ALREADY
You see, F.H.A. deals take a long time. For us they typically are about a year from the first meeting with the seller and the day of closing. They are government deals and they take a long time in most cases. So I am talking tax to folks who are asking what is going to happen if they don’t pass that law.

WE HAVE ANOTHER TAX LAW…THIS ONE WILL NOT EXPIRE ON DEC. 31ST!!!

Some of you have heard about it. Most haven’t. Don’t feel bad. It is kind of the domain of attorneys and CPA’s. It can get a bit complicated and it requires some credentials that are really beyond the scope of your license out there my friends, but I want you all to be aware that it exists and then get your seller in for a consultation with one of our attorneys and we are happy to go over all their tax issues.

THE INSOLVENCY EXEMPTION FROM THE INTERNAL REVENUE SERVICE IS AN INTEGRAL PART OF OUR TAX PRACTICE

This exemption has been a part of the tax code for a long time. This exemption does NOT expire on December 31st. This exemption is useful even if your seller is not occupying the subject short sale property.

We ALWAYS go over the insolvency exemption when it applies in each of our consultations. We have a whole raft of literature including worksheets and the like to allow sellers to feel comfortable EVEN IF the Congress sits on its hands and does nothing.
Thanks as always to McFerran Burns and Stoval for the great info!

Know of anyone thinking of a Short Sale?? Important changes coming.

I am a Short Sale negotiator but I am not a lawyer and cannot give legal advice so for my short sales I team up with a law firm which has worked out great for my sellers. I thought I would share one of their most recent law updates with you as so many people do not realize the changes that are coming their way.  If you, or you know of someone, that is thinking of a short sale send them this information and tell them to get in touch with me so we can help.  Its a long read but remember from a Law firm and great info!

WE ARE AT THE TIME OF YEAR THAT WE REALLY NEED TO FOCUS ON THE ISSUE OF FORGIVENESS OF DEBT TAX

I am not convinced that Real Estate Professionals are taking this type of tax into enough consideration as we progress through the rest of 2013. Heck it’s almost over as far as a typical short sale is concerned.

This is a real tax and a tax that needs to be analyzed with each and every seller with whom you encounter. I am concerned as I hear real estate professionals consistently talk of the end of the year as a deadline for the special law that eliminates the tax for many taxpayers, but not for everybody.

I DON’T THINK WE HAVE BEEN SERIOUS ENOUGH IN BRINGING THIS ISSUE TO SELLERS’ ATTENTION

This is a tax law that has allowed many homeowners to escape thousands of dollars of tax liability based upon their meeting certain criteria.

In my practice of dealing with distressed homeowners, THIS IS A HUGE MATTER each time I meet with a seller. It is an important matter handled in each and every consultation. Not all sellers qualify for the exception. I am concerned as some are Brokers are sloppy and have it apply to almost everybody. It was not designed to protect everybody or even benefit everybody.

THIS SPECIAL TAX BENEFIT HAS A HIGH LIKELIHOOD OF ENDING THIS DECEMBER 31ST!!!

I don’t like to always bring up fear, but if I am advising clients that may qualify for this rule I am advising them to take advantage and SELL SHORT RIGHT NOW as it becomes more dangerous as we get closer and closer to the end of December. As we often say: “There is nothing short about a short sale”.

I am not convinced that it will be extended. Frankly, I fear that it won’t  and I think, as a result, that I would encourage taking short sale action NOW as opposed to waiting until later on this year. A word to the wise.

I ALWAYS TALK TAX WITH EVERY DISTRESED HOMEOWNER I MEET

Now as we are already almost into September, this whole subject takes on new importance. I am writing this message today to make sure that you Brokers out there are taking this tax matter seriously. TODAY…….NOT FOUR MONTHS FROM NOW!!!!!

Why worry, you say, about something happening four (4) months from now? You should worry. You should plan now and change your methodology dramatically for the rest of this year.

I AM ENCOURAGING SELLERS TO ENGAGE “NOW” IN THEIR SHORT SALE… NOW IS A TIME NOT TO WAIT

So we are suggesting that sellers really engage and start moving forward and listing and selling. It makes good sense if they want to take advantage of the forgiveness of debt tax before the end of the year. You have to get going now to make sure the deal gets closed before the end of the year. In fact, that is asking for a lot to happen in a very short time. As we all know, there is nothing short about a short sale.

A SHORT “CLIFF NOTES VERSION” OF THIS TAX RULE

Every real estate licensee out there that is talking with any distressed homeowner about doing anything for those folks has to at least know that this tax exists. It’s simple really, but most sellers have no clue about it and, frankly, don’t understand it at all.

I see their eyes glazing over every time I bring it up to a typical client, but I get their attention when I tell them the tax is easily over $28,000.00 unless they pay close attention. They wake up immediately. You see that is the tax on $100,000.00 of debt forgiveness, which is a pretty typical amount in our practice. That is a serious tax consequence. Have you thought about that in relation to that listing you just took?

I tell short sale sellers that in most cases we are able to have an exception because of special rules that assist homeowners who have lived in their primary residence property for a prescribed period of time. There are exceptions, but in many cases THEY CAN TOTALLY AVOID THAT TAX AND DO A SHORT SALE!!

EVERY SHORT SALE ALWAYS PRODUCES SOME DEBT FOREGIVENESS [YOU CAN COUNT ON THAT!!]

You can count on debt forgiveness in every short sale. It comes with the territory. The key factor is whether it will adversely affect your seller or not. In many cases it won’t. However, one has to go through that tax law with a fine tooth comb and account for each and every refinance that your sellers did on their home during their time of ownership. Many used their property as cash registers!!! We do all those calculations in our consultation.

I have to tell all of you that tax advice is not part of your license as a real estate professional and I am happy to give you information in this outline of the tax law. I am NOT suggesting that you all go out and apply it to your sellers’ situation. There are a lot of traps for the unwary here folks.

EVERY CONSULTATION MY ATTORNEYS CONDUCT INCLUDES TAX ADVICE…REMEMBER NOT ALL ATTORNEYS INCLUDE TAX ADVICE

It’s part of what we do. We discuss tax matters in everyone on of our $150.00 Consultations. So you don’t have to send your seller to their CPA. We can handle that AND include all the law and credit aspects as well.

An integral part of our practice is tax. We attorneys are happy to talk tax. Be cautious as many attorneys do NOT include tax as part of their consultations, and as a result, your client has to also see a CPA or tax accountant. We are a one stop shop.

NOW IS THE TIME TO PLAN…WHAT HAPPENS IF THE CONGRESS DOES NOT FURTHER EXTEND THIS FAVORABLE TAX TREATMENT?

This favorable tax law that allows your clients to avoid this tax on debt forgiveness expires in about four (4) months on December 31st. I monitor this daily through our Bar Association Committee on Taxation back in Washington, D.C. Very little is happening on that front and conventional wisdom indicates that there is a likelihood of this tax law NOT being extended!!

We need to prepare now. We need to change the “talk track” you have with your sellers. Sellers are coming in to me now with this issue on their mind as many have been informed by others about the adverse consequences if the tax law goes out of existence at the end of the year.

HECK….WE ARE ALREADY DOING IT!!!! WE ARE PREPARED ALREADY

You see, F.H.A. deals take a long time. For us they typically are about a year from the first meeting with the seller and the day of closing. They are government deals and they take a long time in most cases. So I am talking tax to folks who are asking what is going to happen if they don’t pass that law.

WE HAVE ANOTHER TAX LAW…THIS ONE WILL NOT EXPIRE ON DEC. 31ST!!!

Some of you have heard about it. Most haven’t. Don’t feel bad. It is kind of the domain of attorneys and CPA’s. It can get a bit complicated and it requires some credentials that are really beyond the scope of your license out there my friends, but I want you all to be aware that it exists and then get your seller in for a consultation with one of our attorneys and we are happy to go over all their tax issues.

THE INSOLVENCY EXEMPTION FROM THE INTERNAL REVENUE SERVICE IS AN INTEGRAL PART OF OUR TAX PRACTICE

This exemption has been a part of the tax code for a long time. This exemption does NOT expire on December 31st. This exemption is useful even if your seller is not occupying the subject short sale property.

We ALWAYS go over the insolvency exemption when it applies in each of our consultations. We have a whole raft of literature including worksheets and the like to allow sellers to feel comfortable EVEN IF the Congress sits on its hands and does nothing.

Thanks as always to McFerran Burns and Stoval for the great info!