2 min read

HOME PRICES JUMP BY 7.8%. HERE ARE TWO WAYS TO BENEFIT.

By Chris on Jan 19, 2021 8:08:39 AM

Home prices jumped by a whopping 7.8% from the third quarter of 2019 to the third quarter of 2020 according to the Home Price Index published by the Federal Housing Finance Agency. Click here to view the full report. This marks the fastest year-over-year increase in house prices since 2006 as demand continues to outpace the supply of homes available for sale. This also signifies that house prices have risen for 37 consecutive quarters (9 years straight), since September 2011. Here are two ways to benefit:



1: Sell Your Home with Tax-Free Capital Gains
If you’ve lived in your house as your primary residence for two out of the past five years, you may be able to sell it at a profit without having to pay capital gains taxes.  The limitations on this are $500,000 of tax-free gains for married couples filing a joint tax return and $250,000 of tax-free gains for individuals or married couples filing separate tax returns.  For more info, see my article: How to Get the Primary Residence Capital Gains Tax Exclusion.


Topics: Real Estate WeAreBrokers Mortgage Loans EstaR Mortgage reverse mortgage alameda Home Buying Home Appraisal mortgage rates home prices
3 min read

HOW TO UNDERSTAND YOUR HOME APPRAISAL ($200K)

By Chris on Jan 5, 2021 7:40:48 AM

A home appraisal is an estimate of your home's value.  It's simply a professional appraiser's opinion of what he/she thinks your home may be worth.

Topics: Real Estate WeAreBrokers Mortgage Loans EstaR Mortgage Mortgage Alameda Home Buying Appraisal Home Appraisal
3 min read

3 Ways to Avoid Getting Outbid on Your New Home

By Chris on Nov 16, 2020 9:11:18 AM

Bidding for a new home can get pretty fierce in today's market.  Here are three potential solutions to avoid getting outbid on your new home:


  1. Turn in your loan paperwork BEFORE you place an offer. 
    In many cases, you are bidding against cash buyers who don't need to wait for financing approvals.  Look at it this way:  if you were the seller, would you prefer to do business with a buyer who needs to wait for financing approvals or a cash buyer who can close the deal quickly?  With that in mind, it's important to be proactive and provide your mortgage lender with things like your source of down payment funds, your asset documentation, your credit report, and your income documentation.  This way, you'll be in a better position to close the deal quickly and compete with those cash buyers.
  2. Pay cash, but do it right. 
    Keep in mind that you only have 90 days after closing to place a mortgage on a property that you bought with cash if you want to secure your tax deduction.  (For more info, see my article entitled, 90 Day Rule for Cash Buyers.)  In order to get that loan approval after closing, you'll need to document the source of funds that you used for your cash purchase.  Talk to me for more details so that you can avoid problems down the road.
  3. Write your offer correctly.  
    Mortgage lenders are implementing some pretty significant changes this year to the legal requirements for mortgage paperwork as part of the Dodd-Frank Act. When real estate agents and loan officers aren't familiar with some of these changes, it causes unnecessary delays in the loan process. That's why it's important to work with someone like myself who keeps up to date on all the new requirements. I can work with your real estate agent to make sure you write your offer correctly in the beginning so that you won't have to redo the paperwork and delay the closing.

 

 

Contact me so that we can further explore any/all of these ideas together!

 

Topics: Real Estate Mortgage Loans EstaR Mortgage Home Mortgage Alameda

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