Remodeling the kitchen? Crunch the numbers first By Les Christie @CNNMoneyFebruary 8, 2013: 12:12 Zillow Digs allows users to select the type of room they want to redo, the styles they want and how much they want to spend. NEW YORK (CNNMoney) For many homeowners, remodeling a kitchen or bathroom can lead to many sleepless nights. Not only do worries abound about picking the right tiles or cabinets, but there are few resources to let you know if you’re paying the right amount But now homeowners can compare costs of similar remodeling jobs based on the size and type of the room, where they live and the materials they want to use with a new tool from real estate web site Zillow. Called Zillow Digs, the free web service and app allows users to select the rooms they want to redo, the styles they want — such as modern, Mediterranean, art deco — and how much they want to spend. The site then returns a series of photos of real renovations that fit those criteria with estimates that are based on an algorithm that takes into account rates from local contractors, as well as material costs and regional labor rates. Related: Million-dollar foreclosures The results include both an average cost estimate and an estimate range, which can vary quite dramatically. Users can input their location to better tailor estimates based on local labor and material prices. A homeowner living in Manhattan, for example, will get a much higher estimate for a kitchen renovation than someone living in Peoria, Ill. Costs are broken down by materials and labor and further subdivided by each aspect of the job. For a bath renovation, for example, the estimate will include the price of a new bathtub and how much it costs to install it. And when homeowners find something they like on Zillow Digs, they can use the site to connect with contractors, architects and designers. Related: 4 tips from a serial remodeler Last year, $125 million was spent on home renovation projects, according to Harvard’s Joint Center for Housing Studies. And, as the housing market continues to improve, spending is expected to rise by nearly 20% this year. “Through the first three quarters of 2012, investment in the residential sector was responsible for one out of every six dollars added to our GDP,” said Eric Belsky, the center’s director. “Moving forward, home improvement spending is expected to make an even larger contribution.” Homeowners are also getting more bang for their remodeling buck. For every dollar spent on an overhaul of a midrange kitchen, a home’s value rises by about 69 cents, according to Remodeling magazine’s annual Cost vs. Value Report 2013. That’s up from about 65 cents on the dollar in 2011-2012. Remodeling jobs that pay off These projects add the most home value per dollar spent, according to Remodeling magazine’s annual survey. Project Average cost Addition to home value % of cost recouped Entry door replacement (midrange) $1,137 $974 85.6% Siding replacement (upscale) $13,083 $10,379 79.3% Deck addition (midrange) $9,327 $7,213 77.3% Garage door replacement (midrange) $1,496 $1,132 75.7% Minor kitchen remodel (midrange) $18,527 $13,977 75.4% Source: Remodeling’s 2013 Cost vs. Value Report Find homes for sale First Published: February 8, 2013: 5:41 AM ET
Real estate broker Granby CT – Best of Advice: Our Home Has Cracked Walls, What Recourse Do We Have? – Real estate agent Granby CT
Best of Advice: Our Home Has Cracked Walls, What Recourse Do We Have? Real Estate News | Feb 22, 2013 | By: Deidre Woollard Each week we feature some of the many questions that come in to the REALTOR®.com Q&A section. Today’s question comes from Richmond, VA: Q: We found foundation problems found after buying a foreclosure house, what recourse do we have? We bought a foreclosure house two years ago. And now we found that there are cracks shown on the wall. Also, there was a big crack outside of the attached garage which we did not notice before buying. Can I ask the bank for any compensation or do I have to eat it up since it was a foreclosure? A: Foreclosure or not, the repairs are your responsibility. The only recourse you might have would be against the home inspector, but it’s doubtful that a judge would hold even that person liable. It’s been at least two years since the home was inspected and a lot can happen to a house in that amount of time. – Stacey A: If you go back to your original contract addendum from the bank you will see that you have no recourse with them as to the foundation problems because you purchased the property “as is.” In fact – it was probably stated in more than one way on the addendum. Because the bank has no knowledge of the property’s history or condition – you assume all of the risk. That’s why the prices on foreclosures are so low. I’m sure you had a home inspection performed for your information on the property before you purchased it and you might want to review the report again to see if the inspector noted any foundation problems at that time. The cracks may be more recent since we have had some interesting weather and a earthquake in recent years. The discounted price is still low enough to compensate you for the issues you are facing now. Consult with a foundation contractor such as Stable Foundations in Richmond to see if the cracks are even serious enough to require attention at this time. I believe they may give you a free consultation or charge a very low inspection fee. It would be worth it for your piece of mind now – and for your information should you ever need to sell the property in the future. I buy and sell foreclosures all the time as they are a great bargain in this market – but you have to be very careful as there can be defects. Buyers need to hire an agent to help them assess the risks and perform a thorough inspection of the property before they enter an offer – one with a background in construction and building would be preferred. In the end, you can’t always leave it to the home inspector to find everything that might be a future issue with the house as they – like everything else – are always changing. I hope it turns out that the cracks are merely from settling and not anything that you need to be worried about. – Wayne Hare, REALTOR®, Investors Realty of Virginia
Real estate agent Farmington Valley – Best of Q&A: We Are Self Employed, Will We Be Able To Get A Mortgage? – Real estate broker Farmington Valley
Best of Q&A: We Are Self Employed, Will We Be Able To Get A Mortgage? Real Estate News | Feb 20, 2013 | By: Deidre Woollard | 1 Response Prev | Next 5 Each week we feature some of the many questions that come in to the REALTOR®.com Q&A section. Today’s question comes from Baytown, TX: Q: Will I be able to get a mortgage being self employed? My husband and I have been self employed for three years and we both have credit scores in the 640-660 range. We have been paying down our debt and currently have a credit utilization of about 45%. Still have two credit cards to pay down. Our income is just under $30,000, is it likely that we will be able to get a mortgage? A: There are many factors involved in getting a loan. However, to answer directly your question, if you are self employed and your tax returns reflect your income needed to qualify, you should be able to get a mortgage. If you are interested, I can set you up with a mortgage professional who can answer all questions you have regarding mortgages. It certainly sounds as if you are doing all things correct. – Linda Cottar, REALTOR®, Ingrid Nel Properties A: For the self-employed that are considering purchasing a home it’s important to be aware of the changes that have occurred in the world of lending. As everyone is well aware, getting a loan is not nearly as easy as it used to be. As you’ve found out, those who are self-employed are having a more difficult time borrowing money and must provide documentation that shows their income. The IRS is being contacted for income verification by many lenders and any fraudulent income claims are being dealt with. In a nutshell, if you are self-employed and applying for a mortgage loan, be prepared and: 1) Line up all of your documents showing your income before going to apply for a loan. 2) Check your credit and do what you can to improve your credit score. 3) Pay your bills on time. 4) Most importantly, tell the truth, misrepresentation can cost you. Many lenders are hiring more loan officers. They are convinced that current low rates are going to bring many more new and refinance loans in the next 18 months or so. Mortgage rates are at their lowest, closely tied to the unsteady economy where wary investors are putting their money in safe investments like Treasury Bonds. As these yields go down interest rate goes down as well. In other words, the unsteady global economy equals good news for the home buyer acquiring a mortgage and home owners who are refinancing their home loans. Even though you are self-employed, as long as you can provide decent and accurate documentation there is no reason you shouldn’t be able to secure a home loan. – Lee Dworshak, REALTOR®, Keller Williams LA Harbor Realty
Farmington Valley real estate agent – Annual Home Values Rise 6.2 Percent Nationwide in January – Farmington Valley real estate broker
Annual Home Values Rise 6.2 Percent Nationwide in January Date:February 21, 2013|Category:Market Trends|Author:Cory Hopkins The strong momentum the housing market built up in 2012 has officially carried over into 2013, as home values rose to $158,100 last month, up 0.7 percent from December and 6.2 percent from January 2012, according to the January Zillow Real Estate Market Reports. January marked the 15th consecutive month of home value gains. The 6.2 percent annual gain is the largest since July 2006, when home values rose 7.5 percent year-over-year. The last time national home values were at this level was in June 2004. Home value appreciation was widespread in January, as all of the top 30 metros covered by Zillow experienced year-over-year gains. Major markets where home values rose the most over January 2012 included Phoenix (21.9 percent), San Francisco (17.2 percent), San Jose (16.8 percent), Las Vegas (16.2 percent) and Sacramento (13.7 percent). On a monthly basis, 27 of the top 30 metro markets showed home value appreciation in January. The St. Louis and Orlando metros were the only markets that fell month-over-month. Baltimore was flat. Because of seasonality, national rents fell slightly in January compared with December, down 0.2 percent to a Zillow Rent Index of $1,271. Year-over-year, national rents were up 4.3 percent. Foreclosures, while falling, still remain an important and significant part of the market. Completed foreclosures slowed in January, falling to 5.54 homes foreclosed out of every 10,000 homes nationwide. That was down 0.8 homes over December and down 2.3 homes year-over-year. “The winter months are typically when things cool off in the housing market, but high demand and continued tight inventory in many markets have helped keep things at a boil through the early part of 2013,” said Zillow Chief Economist Dr. Stan Humphries. “Demand will continue to be high throughout 2013, which will help home values and rents alike continue to rise. Foreclosure activity remains high, despite recent drop-offs. This will have the dual effects of nurturing rental demand, as displaced former homeowners seek new lodgings, and of adding supply to many markets, as foreclosed properties re-enter the market.” Zillow Home Value Index Zillow Rent Index Metropolitan Areas Jan. 2013 ZHVI Month-Month % Change Year-Year % Change Jan. 2013 ZRI Month-Month % Change Year-Year % Change United States $158,100 0.7% 6.2% $1,271 -0.2% 4.3% New York $346,100 0.3% 1.4% – – – Los Angeles $421,800 1.4% 9.7% $2,296 0.0% 2.9% Chicago $162,200 0.1% 1.6% $1,512 -0.3% 4.1% Dallas-Fort Worth $131,800 0.5% 5.9% $1,318 -0.2% 4.2% Philadelphia $188,700 0.4% 1.6% $1,474 -0.3% 0.6% Washington, DC $327,100 0.7% 6.5% $2,054 0.0% 3.1% Miami-Fort Lauderdale $155,900 1.3% 10.9% $1,618 0.4% 2.7% Atlanta $115,500 1.0% 1.9% $1,125 0.0% 0.7% Boston $319,500 0.2% 4.8% $1,950 -0.3% 6.3% San Francisco $538,900 2.0% 17.2% $2,522 0.2% 5.4% Detroit $82,600 1.3% 11.3% $1,030 -1.8% 3.8% Riverside $201,300 1.7% 12.0% $1,578 0.2% 2.9% Phoenix $159,300 0.9% 21.9% $1,152 0.0% 2.3% Seattle $273,000 0.8% 7.6% $1,610 -0.3% 2.2% Minneapolis-St. Paul $175,000 0.2% 7.4% $1,439 0.0% 4.1% San Diego $381,900 1.8% 12.9% $2,101 -0.1% 0.9% Tampa, FL $116,300 2.0% 9.1% $1,186 -0.1% 2.7% St. Louis $126,700 -0.2% 1.4% $1,094 -0.6% 1.0% Baltimore $222,100 0.0% 2.4% $1,662 -0.4% 4.1% Denver $229,800 0.6% 12.6% $1,528 0.9% 7.5% Pittsburgh $112,900 1.0% 2.9% $942 -4.4% -3.0% Portland, OR $231,500 0.5% 8.1% $1,390 0.5% 5.1% Sacramento, CA $228,600 1.5% 13.7% $1,456 0.0% 3.5% Orlando, FL $125,000 -0.4% 7.1% $1,204 0.0% 1.7% Cincinnati $122,100 0.1% 0.9% $1,073 0.4% -2.4% Cleveland $109,800 0.2% 0.8% $1,087 0.5% 1.6% Las Vegas $131,100 1.3% 16.2% $1,142 -0.3% -1.0% San Jose, CA $639,500 1.2% 16.8% $2,668 0.8% 5.5% Columbus, OH $127,600 0.6% 4.5% $1,153 1.7% 0.3% Charlotte, NC $138,100 0.4% 3.4% $1,138 -0.1% 6.3
Granby CT realtor – 5 Home ‘Upgrades’ You Should Avoid – Farmington Valley realtor
5 Home ‘Upgrades’ You Should Avoid Date:February 13, 2013|Category:Tips & Advice|Author:BobVila.com Source: Landmark Custom Homes By Joanne Cleaver Of all the misfired home improvements that Daniel Fries has observed in his 30 years as a home appraiser, aquariums top his list of 2012 loss leaders — home improvements that offered little to no return on investment. “It’s not a prudent investment,” deadpans Fries, who is based in Atlanta. The tank’s glass fogs, while grimy filters emit an odor of rotting seaweed. Even worse — yes, it gets worse — some owners repurpose fish aquariums as reptile dwellings. And few things send a potential home buyer fleeing faster than the sight of a bull snake in the dining room. Aquariums top our list of “improvements” with poor return on investment, but every project on that list has at least one thing in common: a profound mismatch between a homeowner’s intent and a neighborhood’s standards. Local culture, preferences, and market conditions dictate return on improvements. Sink your money into amenities that don’t reflect the norm for your immediate area, and you won’t even gain a 5 percent premium over neighboring homes, regardless of what you spent, says Kevin Cross, owner of the Anchorage, AK-based real estate agency Cross & Associates. Case in point: Granite countertops actually undermine market value in Alaska. Extreme temperature changes force constant settling and resettling of home foundations, which results in warping and cracking of solid stone surfaces. Laminate gives just enough to make it the counter material of choice. “Understand that anyone looking for a house is going to stand in front of yours with their cellphone looking at all the estimated values of the houses all around yours,” he continues. “When a buyer looks at a house, they’re not looking for reasons to buy a house. They’re looking for reasons to not buy yours. Your job is to remove as many of those reasons ‘not to buy.’ If it’s priced right, clean, staged and looks inviting, an older house will sell faster than a new house even with superior amenities.” Buyers pick up on price discrepancies immediately and aren’t willing to pay for misguided improvements … like the rest of the items on our list of top don’ts. Loss leader No. 2: Built-in electronics Bragging rights last only a few months when it comes to the latest televisions and sound systems. Once the next gizmo lands on the market, today’s shiny toy quickly tarnishes. The value added by splurging for top-of-the-line freestanding electronics may be debatable, but at least you can easily take the gear with you. Built-ins often dominate the entire room, and their reverberations can erode the usability of adjoining rooms, too. The owner of a $3 million house bragged to Fries that his built-in sound system cost $650,000. That was overkill even for a mansion. “He could have spent $50,000 on the media room and gotten just as much value from it,” says Fries. “You have to consider electronics as personal property, even if they are built-in.” Loss leader No. 3: Eliminating a third or fourth bedroom Sure, a walk-in closet and expanded master bath would be a selling point — but only if that space isn’t hijacked from a third or fourth bedroom. If the neighborhood norm is 3 bedrooms, a 2-bedroom house is at a severe disadvantage. The number of bedrooms should be in balance with the common living space. A house with too many or too few bedrooms has a lopsided layout that won’t be useful to many buyers. Still want that master closet? You might be able to justify it if you apply the second cardinal rule of return (keep reading). Loss leader No. 4: Over-improving the basement Below-grade improvements never pay back as much as space renovated or added above grade. Carefully compare the cost of renovating the attic, adding a dormer or even raising the roof, to a high-end basement remodel. This is especially true for mid-priced houses. High-end houses may well be able to retain the value of a finished basement, but only if all the above-grade space is livable. Loss leader No. 5: Expansive outdoor living space out of sync with the climate Outdoor kitchens with manly grills and wood counters can be used 10 months a year in the South, so those projects retain value, says Fries. Not so much in the North, where a fireplace is a cozier investment. Cross reports that water features don’t sell Alaskan houses, considering that they are under 4 feet of snow for half the year. Especially if you are relocating, settle in to the local lifestyle before creating a sunroom, screened porch, elaborate deck or outdoor kitchen. Each of these horrors is grounded in the grand misconception of home improvement: if you build it, they will pay. Fries explains that appraisers’ guidelines will force a challenge from the lender if improvements boost the market value of the house more than 10 percent from its value without the improvement. As you scope out the budget for your project, keep the total tab to no more than 10 percent of the current value of your house. Spend more only if you count the payback in terms of personal enjoyment. Use as a reference Remodeling magazine’s annual Cost vs. Value Report. The regional breakouts chart the cost of remodeling, the return and the difference. The averages are useful for benchmarking estimates and can help you set expectations from the start. It can be a balancing act to polish to the point of perfect return, especially if you expect to sell the house soon. Consider putting in one moderately priced focal point improvement that can make the room memorable. For example, one — just one — built-in specialty appliance in the kitchen can be a selling point. That appliance might be a warming drawer, a wine cooler or a five-burner stove with a griddle instead of the standard four-burner stove. Even then, calculate your payback in terms of a shorter selling time, not in terms of dollar return. There is an antidote to misfired improvements. Appraisers call it the “cost to cure,” and it’s the second cardinal rule of return. How much will it cost to rip out the offending amenity and make that part of the house look, well, normal? The cost to cure a derelict aquarium is only about $1,000. The cost to revert a walk-in closet to a bedroom could be as little as $500. But the cost to rip out an algae-clogged, crumbling swimming pool could run 10 times that. When in doubt, get two estimates: one to put in the improvement, the other to take it out. If you must have it, budget time and money for the “cure” and make sure you squeeze every moment of happiness from that feature in the meanwhile. Related: Is Housing Really Back? 5 Market Trends to Cash in on This Year Bob Vila Radio: Return on Investment Bob Vila is the home improvement expert widely known as host of TV’s This Old House, Bob Vila’s Home Again, and Bob Vila. Today, Bob continues his mission to help people upgrade their homes and improve their lives with advice online at BobVila.com. His video-rich site offers a full range of fresh, authoritative content – practical tips, inspirational ideas, and more than 1,000 videos from Bob Vila television. Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.
Granby CT realtor – 3 Tips for Avoiding House-Hunt Heartbreak – Granby CT broker
3 Tips for Avoiding House-Hunt Heartbreak Date:February 12, 2013|Category:Tips & Advice|Author:Brendon DeSimone It’s been said over and over and over: House hunting is like dating. A buyer sees a series of homes, much like going on dates, before finding “the one” and settling down, or purchasing. How will you know when you’ve found “the one,” and how can you determine when it’s time to move on? It’s important to keep your eye on the prize. “The one” doesn’t show up overnight. Much like dating, house hunting is an evolution. A buyer needs to see many houses, learn about the market and maybe even have a heartbreak or two. All of these experiences will inform the buyer and provide serious context when “the one” presents itself. Here are three tips for not getting your heart broken in the home search process. Prepare to get your feelings hurt by a seller The seller doesn’t have to sell to you. It’s entirely possible that, especially given the lack of inventory and the influx of home shoppers today, even if you offer the seller their list price the home may not be yours. Another buyer may offer more than you, may have a larger down payment or may offer the seller a swift closing and more favorable terms. Even if you think this is the perfect home for you and your family, starting a love affair with it in your head will only lead to disappointment down the road. Don’t obsess over one home Most buyers begin their home search with a list of wants, needs, must-haves and nice-to-haves as well as deal-breakers. You will never get it all, so it’s important to know when to compromise. Often the “perfect” home will come along, but the buyer loses sight of their objective. Saw a home with a designer kitchen that you can’t get out of your head? That might be great, but if the home doesn’t have room for two cars, doesn’t have the required square footage or lacks that all-important second bathroom, you need to move on. Harboring feelings for a home that you know won’t work only serves to get you sidetracked and out of focus Don’t fall too hard It’s no longer a done deal once the contract is signed. Many times a buyer and seller come to an agreement on terms and price, even sign a contract, only to have a series of issues come up in the disclosure and inspection phase. Don’t fall hard once you have a signed contract. This will only make the discovery process more heartbreaking. Know that dozens of issues can come up in escrow. If it’s not working out, be ready to move on. The longer you hang around and obsess over one home, the bigger the chance that you’ll miss out on Mr. or Ms. Right around the corner. Know upfront that the home shopping process will be a journey. Expect to see a lot of homes and learn a lot along the way. No matter how frustrating the process is, believe that the journey will eventually come to an end and that “the one” will present itself. Much like dating, touring many homes will allow you to play the field, see what’s out there and learn the market. The more you see, the more you will know when the right “one” comes along and you’re ready to seal the deal. Related: 3 Things Home Buyers Should Know About Today’s Sellers What to Expect When You’re Inspecting Bidding War? 5 Ways to Beat Out the Competition Brendon DeSimone is a Realtor licensed in both California and New York. He has collaborated on multiple real estate books, and his real estate expertise is regularly sought out by print, online and television media outlets like FOX News, CNBC and Forbes. An avid investor, Brendon owns real estate around the U.S. and abroad. You can find Brendon online or follow him on Twitter and Google + Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.
Farmington Valley realtor – 5 Design Tips to Cure ‘Model Home Syndrome’ – Farmington Valley broker
5 Design Tips to Cure ‘Model Home Syndrome’ Date:February 21, 2013|Category:Tips & Advice|Author:BobVila.com Source: raleighdurham.about.com By Chris Gardner Most homes built in the U.S. these days are done by developers, which can be great — contractor-built homes are energy efficient, contain the latest features and technologies, and look brand new! But depending on your taste, that brand-new look can be awesome… or totally bland. So if you want all the benefits of contemporary living but prefer an old-home feel, check out these tips for adding some architectural details to give a new house lots of character. 1. Install (lots of) architectural molding Source: Greenside Design Build, LLC Built-in decorative features are an almost guaranteed escape from “model home syndrome.” Crown molding, ceiling coffers, baseboards, chair rails, transoms, cornice molding, wainscoting and recessed panels all impart new drywall with loads of vintage charm. Note: The earlier you install molding in a new house the better, as walls and floors are likely to become less square over time. 2. Change up your cabinet pulls Source: Cabinet Cottage You know what they didn’t have in the days of antique houses? Brushed aluminum and acrylic. So you know what you should replace in your house? The same! In your kitchen and bathroom, consider using glass knobs, which came to popularity in the early 1900s (when metal was in short supply due to the Great Depression and world wars). To echo the look throughout your home, do the same with your door knobs, desk-drawer handles and dresser pulls. 3. Address your staircase Source: Gast Architects Most new houses are modeled after colonial-era homes with the staircase front-and-center and the various rooms stemming off a main hall. Consider replacing the handrails and newel post with more elegant woodwork. Check local salvage yards, classified ads and online sites to snag pieces that will make an impression. And if you really want to go for it, rip up your wall-to-wall carpeting and install a stair runner for a signature-antique look. 4. Upgrade your light switch and outlet plates Source: My Knobs For very little time and money, you can easily upgrade all your switch plates and outlet covers. Look for nickel and brass finishes to stay era-appropriate. You can check antique shops if you’re a purist, but there are plenty of reproduction pieces that’ll do just fine. 5. Switch up your lights Source: Free House Interior Design Ideas Nothing screams contractor-built home like contractor-grade lighting. Though energy-smart and inexpensive, such fixtures make everything look as generic as can be. Neutrality is the goal when you’re trying to entice buyers, not when you want to create a beautiful space. Look for antiques like chandeliers — but old wiring can be problematic, so consider reproductions. Wall sconces especially will evoke the era you’re after. Related: 10 Great Looks in Tin Ceiling Tiles 5 Things to Do… With Beadboard 11 Sneaky Storage Ideas Bob Vila is the home improvement expert widely known as host of TV’s This Old House, Bob Vila’s Home Again, and Bob Vila. Today, Bob continues his mission to help people upgrade their homes and improve their lives with advice online at BobVila.com. His video-rich site offers a full range of fresh, authoritative content – practical tips, inspirational ideas, and more than 1,000 videos from Bob Vila television. Note: The views and opinions expressed in this article are those of the author and do not necessarily reflect the opinion or position of Zillow.
Granby CT realtor – Using Gift Money for a Down Payment – Granby CT real estate agent
Using Gift Money for a Down Payment Date:January 16, 2013|Category:Finance|Author:Justin McHood It’s not uncommon for first-time home buyers to ask: “Can my mom and dad give me money to help me buy this house?” The good news is yes, you can receive a gift from your parents to buy a house, but the way that you actually receive the gift is very important. Mom and dad can’t just leave money under your pillow like the Tooth Fairy did when you were younger. The process of accepting a gift for your down payment isn’t complicated, and by following these simple rules, you can be sure that the underwriter who is reviewing your file will look at it with an approving eye. Write a gift letter If someone is going to be gifting you money to help you buy a house, you’ll first need a gift letter. The gift letter needs to be a short, sweet letter that is hand-signed by you and the person giving the gift. It needs to contain the following: The relationship between the home buyer and the person giving the gift. The amount of the gift. The address of the home being purchased. A statement that the money is a gift and not a loan that must be paid back. Establish a paper trail Next, you’ll need to create a paper trail. This is important because underwriters will look for where the money came from and where it went. In simple terms, they will look for proof that the money came from your parents’ account and went into yours. Each situation will be slightly different, but be ready to provide paper proof of your parents’ account having money in it, money coming out of that account, a deposit into your account and proof that your account now has the money in it. Accuracy matters when creating this paper trail, so make sure each transaction is for the exact amount of the gift. Write a gift letter and use this shortcut Creating a paper trail correctly has proven to have its fair share of hassles. Getting copies of transactions is time-consuming, and underwriters seem to question every little thing in the process (“where exactly did the $10,000 transfer that I see coming into mom and dad’s account come from?”). The good news is that there’s a shortcut when it comes to gift letters — one that makes the entire process easier. Simply add one sentence to the letter that says: “Will wire the gift directly to escrow at time of closing.” If you add this line to your gift letter, you can avoid all of the paper chasing that most underwriters will require. A day or two before closing, you can get wiring instructions from your escrow agent for mom and dad to wire the exact amount of the gift directly to the escrow company working on your transaction.
Granby CT realtor – $166,000 a Year Is Middle Class? Only in Manhattan – Farmington Valley realtor
$166,000 a Year Is Middle Class? Only in Manhattan Date:February 7, 2013|Category:Finance|Author:LearnVest It’s hard to pinpoint the American middle class, but an income $166,000 per year probably isn’t it — except in Manhattan. The New York Times recently published a piece, “What’s Middle Class in Manhattan?” that’s either fascinating, appalling or just factual, depending on where you live. It explains how, due to the exorbitant cost of living in New York, the city’s residents exist within a social structure unique to the city and eons away from most of the country. Basically, the traditional markers of a middle-class lifestyle — a solid job (police officer or teacher) and a mortgage — don’t apply in New York. Due to the cost of living in the Big Apple, people in such occupations don’t fall in the middle of the pack income-wise as they would in other cities, and the astronomical cost of housing erases the stigma of renting. Among the points made by The Times: Rent for the average Manhattan apartment is $3,973 a month, $2,800 more than the average rent nationwide. Last year, the average Manhattan home sold for $1.46 million, compared to the nationwide price of a little under $230,000. The Pew Research Center found that, in terms of purchasing power, a $70,000 annual income is considered middle class for a family of four, but that same family living in Manhattan would need to make $166,000 to achieve the same purchasing power. To be considered part of the 1 percent in Manhattan, you must make more than $790,000 per year. To most Manhattanites, the numbers inspire more resignation than shock. For the rest of us, it adds some hard facts to those stories about one-percenters feeling poor or unable to keep up. Of course, they aren’t poor, but it’s quite possible that, living in New York City, they’re unable to keep up with their neighbors. Not that their myopia is necessarily excused — about half of the world’s 1 percent live in the United States. Above all, The Times article is a conversation piece, so let’s have a conversation: Where do you live? How does your home compare to New York? And if you live in Manhattan, how do you feel about the high cost of living?
Farmington Valley real estate broker – Hit by a Disaster? You May Get Tax Relief – Granby CT realtor
Hit by a Disaster? You May Get Tax Relief Date:February 19, 2013|Category:Tips & Advice|Author:Mary Boone Wildfires in the West, flooding and landslides in Alaska and hard-hitting Superstorm Sandy were just a few of the major natural disasters that hit the United States last year. In all, 112 federal disaster declarations were issued in 2012. For those living in an area where a federal disaster has been proclaimed, tax relief may be available. Claiming losses If you have been affected by a federally declared disaster, you have the option of claiming disaster-related casualty losses on your federal income tax return for either this year or last year. Claiming the loss on an original or amended return for last year will get you an earlier refund, but waiting to claim the loss on this year’s return could result in greater tax savings, depending on other income factors. You may deduct disaster-related personal property losses that are not covered by insurance or other reimbursements; typically the IRS requires that the first $500 in losses be deducted from any claims. Disaster victims claiming their disaster loss on last year’s return are advised to write the Disaster Designation (i.e., “Superstorm Sandy” or “Noble Wildfire”) at the top of their tax forms so the IRS can expedite refund processing. Deadline extensions For some, the most welcome aspect of this tax relief will come in the form of extended tax filing and payment deadlines. The IRS has promised to abate any interest, late-payment or late-filing penalty that would otherwise apply. Affected taxpayers need not contact the IRS; this relief is automatically afforded to all taxpayers located in the disaster area. Beyond the relief provided to taxpayers in FEMA-designated counties, the IRS works on a case-by-case basis with taxpayers who reside outside disaster areas but whose books, records or tax professionals are located in the areas affected a disaster — specifically Superstorm Sandy. Affected taxpayers from outside the covered disaster area must call the IRS disaster hotline at 1-866-562-5227 to request tax relief. The IRS is waiving the usual fees for copies of previously filed tax returns for disaster-affected taxpayers. Taxpayers should write the assigned Disaster Designation in red ink at the top of Form 4506 (Request for Copy of Tax Return) or Form 4506-T (Request for Transcript of Tax Return) before submitting it to the IRS. Additionally, workers assisting with relief and recovery activities in the covered disaster areas who are affiliated with a recognized government or philanthropic organization may be eligible for tax relief. For additional information regarding disaster-related tax relief, visit the IRS website or consult a qualified tax professional.