Jan 22

Using Retirement Money to Buy Real Estate

You may be unaware that special provisions under the
tax laws allow you to withdraw funds from your retirement
accounts to buy real estate.

1. First-time homebuyers can tap their IRA without tax
penalty.

You can withdraw up to $10,000 once in a lifetime from your
IRA without tax penalty to purchase a principal residence
for yourself or for a family member. A family member is
defined as

your spouse

your child

your grandchild or ancestor

your spouse’s child

your spouse’s grandchild or ancestor.

The homebuyer must be someone who has not owned a home in
the previous two years. If the homebuyer is married, the
spouse must not have owned a principal residence during
that period, either.

2. You can get a loan tax-free from your retirement funds
to buy real estate, even if it’s not a first-time home.

If you are you self-employed, or a small business owner you
get even more flexibility to tap into your retirement
money. Your business does not have to be elaborate.. for
example, you can operate a part-time business as a sole
proprietor, a 1099 income consultant, or as an independent
contractor.

As long as you are the only employee in your business you
can establish a Self-Employed 401(k) plan. You can then
transfer funds from your IRA, qualified pension plan, like
a 401(k) or a 403(b) tax-sheltered plan, into your Self-
Employed 401(k) plan. Assuming your plan has a loan
feature, you may borrow up to $50,000 from your account
balance (or 50 percent, whichever is less). The loan will
stay tax-free and penalty-free, as long as the money is
paid back on time. You can use the loan for any purpose,
but if you use the money to buy a primary residence, the
loan can be extended from the regular 5 years payback
period to 10 years.

Jan 11

Real Estate and Tobacco

Could anti-smoking measures affect real estate sales in New Hanover County?  New Hanover County Board of Health members are looking to team up with Mecklanburg County to pass stricter anti-smoking measures that must pre-empt NC laws for public places (ie.your favorite bar or restaurant).  This will be attractive to non-smokers to are looking to move NC but the two pack a dayers might not feel the same

Dec 30

Condo Guide

Looking for a condo in Toronto? With so many developments in different neighbourhoods, are you being overwhelmed by the search itself.  Well visit Toronto Condo Guide and get a fresh look and see an overall layout of Toronto’s condo developments.  With a summary about each condo that is being built in the GTA, you can compare and get up to date news concerning specific condos that you are interested in.

Need a real estate agent, the Toronto Condo Guide will be able to assist you, and direct you to the proper real estate representative that is overseeing the condo that you fancy.

With the latest news concerning any new or pre construction condo that is available in Toronto,  you will find the condo of your dreams.  Just visit Toronto Condo Guide today!

Toronto Condo Guide

Toronto Condo Guide

 

Dec 30

Real Estate Closing on your new Home

“Closing” refers to the final meeting where ownership and conveyance of title to the property is legally transferred and accepted by the buyer. The closing is a formal meeting that is attended by all of the parties involved including the buyers and sellers in this process. Closing procedures are usually held at an attorney’s office or lawyer’s or a title company. Your title company officer coordinates and executes the document signing and collection along with the disbursement of funds. Real Estate Agents will be present at the closing to help explain the documents, answer any questions you may have, or help to resolve any last minute or unexpected details or issues that may arise.
To ensure the closing goes smoothly, both parties involved should bring the necessary documentation and be prepared to pay any transaction related fees. Usually there can be more than one form of acceptable payment for your closing costs and transaction related fees, so ask the closing officer from the title company which form of payment will be acceptable and to whom it should be made out. As a general rule of thumb expect your closing costs to total an amount equal to 2 to 3 percent of the total loan amount, not including the down payment.
Sellers sometimes agree to pay for some or all of the closing costs, depending on the terms of the purchase contract, and the seller’s equity and timing considerations. Any such concessions should be clearly made in writing in the contract. Generally lenders will allow some sort of credit from the seller to the buyer for non-recurring closing costs related to the closing of the transaction. However, they usually won’t allow the seller to issue a credit that reduces the amount of the buyer’s down payment or any of the buyer’s recurring closing costs, examples of this are expenses for home owners insurance policy, PMI, or property taxes.

Dec 23

Real Estate Closing day Preparation

As the closing date approaches, Real estate agents will communicate with the escrow company and your lender to ensure that all the necessary documents are being prepared, they are completed, accurate and precise, and delivered in a timely and professional manner. Your agent will also need to make sure that all necessary documents will be delivered to the correct location so they can be reviewed and approved by both parties and that they will be ready for the agreed upon closing date.
At this point, your lender should communicate what form of payment you will need to bring to the closing for any owed and unpaid fees. Make sure that your payment is in good funds and made out to the appropriate closing company. Did we mention not to forget your legal Identification card such as a drivers license or state issued ID!
Ensuring that the necessary closing documents are ready, accurate, and available will enable you to have a quick, stress free closing.

Dec 16

Real Estate Hiring and Finding Vendors

After the contract has been mutually accepted, Real estate agents will supervise and coordinate of all necessary professionals and vendors while serving as your advocate when working and communicating with each vendor. Real estate agents will make sure that each vendor has access to the home at the agreed upon times to perform their duties of expertise and oversee the completion and execution of those procedures on your behalf.
For example, the property will need a detailed examination and inspection. Working with your chosen lender, you will have to execute a formal appraisal and possibly a survey completed for the property designated in the executed contract. A thorough home inspection, a foundation inspection, and an environmental inspection will also need to be completed to ensure that the home is up to the standards outlined in your written contract. If there are inspection related issues or inconsistencies found during this time, it could possibly delay or even nullify the contract depending on the contingencies and verbiage written in the agreement.
Homeowner insurance is also a very important item that will need to be taken care of, getting multiple quotes from various agencies is always recommended. Insurance professionals advise that you obtain home owners insurance equal to or exceeding the full replacement value of the property. If you do not find and obtain adequate home owners insurance, the closing will not proceed. Having the insurance policy completed in a timely and professional manner that meets all dates and guidelines per the agreement is a must

Dec 09

Real Estate Negotiate The final purchase price

Once your offer is presented to the seller,negotiations between both parties will start in order to reach a final agreement. A good rule of thumb is that everything is negotiable when you are buying a house. Leverage is the key negotiating factor in the buying process — that is, if you have appropriate information and you use it in a strategic manner. Real Estate Agents will have the market knowledge and aggressive negotiating expertise necessary to ensure that your offer is accepted at the optimal terms and price possible for you.
Some of the things that you may have to negotiate are:

The final purchase price
Financing and assistance
Seller concessions including Closing costs
Issues and Repairs that need to be fixed
Appliances and attached fixtures
Landscaping and painting
Closing date
Occupancy time frame

Successful negotiating has an end result that must make both you, the buyer and the seller, happy. Otherwise, negative and awkward feelings will be present throughout the remainder of the transaction and someone may finish the process feeling that they were not respected or treated fairly.

Dec 02

Making an Offer on Real Estate

Now that you have found that perfect home you would like to purchase, it’s time to present an offer to the seller. Analyzing the recent sales of comparable homes in the neighborhood which are comparable in size, quality and condition, upgrades, and amenities, what are you going to offer for the home? You and your real estate agent will look at the comparable sales information and put together an action plan to create an offer that will have a good chance of being accepted by the seller.
Real Estate Agents will ensure that you have all pertinent information in written form… verbal agreements are not considered binding and should not be used when buying a new home. After working with you to put your offer and purchase guidelines in a written contract that meets all the legal requirements to both local and national guidelines, Real Estate Agents will present the seller with a written contract fully detailing what needs to be agreed upon and done by both parties to execute and complete the transaction. The contract should be written to protect the best interests of both parties along with being comprehensive and detailed. Real Estate Agents will also ensure your strength as a buyer and financial position by including any necessary contingencies, which would protect you if a particular requirement or deadline was not met. Once the seller signs and accepts the contract, it will be too late to make any adjustments or changes.

A well written contract should include the following:

The legal description of the subject property
The offering price for the purchase
The amount being used as down payment
Financing and loan arrangements
A detailed list of fees and which party will pay them
Amount of the earnest money
Inspection rights and resolution guidelines
The method of conveying and what type of title
A list of appliances and fixtures that will be included in the purchase
The date of closing
Any relevant and necessary contingencies

Please remember that the legalities of this phase of the home buying process are very important. Any questions or concerns you may have must be addressed right away. Think about this, no one has ever said after their closing, “I wish I had asked fewer questions.”

Nov 27

Hardship Letter For a Short Sale – Proven Tips For Success

Having to go through a short sale is never something, anyone wants to go through. When anyone decides to purchase their home, they plan on staying in it for, well, all their lives. If, on the other hand something bad happens to our economy, their home will either have to be foreclosed upon or sold to their lender at a discounted payoff.

This is what a short sale is. When the homeowner’s property is sold to their lender, at a discounted payoff price. Once the property is sold at a discounted price, the lender can release the lien that is on that property. With knowing what a short sale is, let me show you how to now write a short sale hardship letter to avoid a foreclosure.

When writing the short sale letter to your lender, please be respectful in your words and phrases. This letter will be read by the lender’s loss mitigator. If this letter is to have any effect or evoke any empathy from your lender, remember, they are human too.

As you write your letter, make it as personal as possible. You can talk about how you’ve made your home your own, how you love coming home everyday and being able to call it, home. Let your lender know how you and your family have done in ways of home improvements to increase your home’s value.

When you write this letter, it is best to keep it under a page. This will ensure the lender will read it and give you the benefit of the doubt. It is also a good idea to, in a nutshell; tell the lender why you are writing this letter. In the first paragraph of your short sale letter, tell the lender exactly why you are writing this. They will not want to know why in the last paragraph of your letter.

Remember, even though this letter has to be written, please treat your lender with respect. This is no time for harsh words or attitudes either.

Nov 26

Real Estate Search and view Listings

At this point you will know exactly what you can afford and the type of area and neighborhoods you will want to invest in. With the completion of the previous steps you are now ready to begin your new home search. If you have limited knowledge about the city and area you’re considering moving to, you will want to start your home search by finding areas and neighborhoods that meet your list of needs and wants and then focusing your search to individual properties in the area and neighborhoods of choice.

Probably the most efficient and effective way to find properties is to allow your real estate agent to send you up-to-date information new listings and available properties that meet fit your needs and wants, and then allow your agent to screen these new listings and properties for you. When your agent sends you a property that interests you, your agent can then arrange for a private tour the property at your convenience.
Other tools that are effective to help you in your home search are searching for homes on dedicated local real estate web sites, real estate based print magazines, driving around and looking at individual neighborhoods.

Older posts «

» Newer posts