Suzanne Dana's Blog

Happy Fourth of July

2011-06-30T12:42:00.000-07:00

Click here for my holiday wishes for you...

It's Time to BUY Again!

2011-04-19T11:21:00.000-07:00

I thought you might find this FORTUNE article interesting. For as much doom and gloom that's been in the news over the past couple of years, it's quite a refreshing change! Remember it is the consumers who will bring the real estate market back.

Whether consumers are looking for a home or investors are looking for a solid investment, now is the time to take advantage of the low prices and low interest rates.

Housing markets across the United States are picking up --the Washington, DC metropolitan area is over it's slow-down and folks are back to bidding on good properties. The Williamsburg area hasn't seen the market shift and prices rise yet, but it is coming.

http://finance.fortune.cnn.com/2011/03/28/real-estate-its-time-to-buy-again/

HouseMaster eNewsletter - SPRING ROOF MAINTENANCE

2011-03-31T08:23:00.000-07:00

What you don't know CAN hurt you--or your house! Few, if any of us, crawl up on our roofs to inspect them, but there can be hidden problems that can turn into big issues if you ignore this important area of your home. One thing that home inspectors often find when folks are buying a home is rotted or damaged vent pipe collars. A roof may have a 20, 30 or 40 year warranty, but the vent pipe collars deteriorate MUCH sooner. So, go up in your attic and, if you can see daylight peeking through around the pipes that run up through the roof or there are moisture stains there, call a repair man.

Here's a great article on end-of-winter roof maintenance/inspection.

HouseMaster eNewsletter - SPRING ROOF MAINTENANCE

Thinking of Investing? NOW is the Time!

2011-03-18T11:21:00.000-07:00

This is a perfect market for investors. There are lots of people out there looking to rent single-family homes...not apartments. In our area there are a large number of military personnel being told to rent not buy--most want a multi-year rental!

Real Estate investing is a conservative way to invest...with the exception of three out of the last 40 years has there been a positive appreciation. The three years of with negative appreciation (depreciation) totaled 13% according to Alex Charfen of the Distressed Property Institute. Whereas, stocks have fluctuated up and down in the last the last 40 years with eleven years of negative appreciation. In the single-year 2008 the loss was 38%! Real Estate is the conservative investment long-term.

There are loads of families waiting for investors to buy homes for them to rent. NOW is the time to make these investments while prices are down and interest rates are at historic lows. We are in a real Buyer market...high inventory is a true investor opportunity. While all of this has gone on, and home prices have depreciated, rental income from single family homes has increased. Vacancies are down in single-family rental homes while they are up in apartments. Single-family investment homes for rentals are recession-resistant investments.

Call me today to discuss some of the options out there for investors--and this doesn’t just mean individual investors--you can invest as a diversification of your retirement plan...invest in the name of your 401K!

Re/Max CEO: Change with the real estate market

2011-03-17T10:16:00.000-07:00

People often ask me why I am with RE/MAX--well this article from INMAN NEWS sums it all up!
Click on this link to read it--

Re/Max CEO: Change with the real estate market

RE/MAX believes in leading the way and knows that the mortgage crisis has left us with "shadow inventory" that lenders are dribbling out to sell. To help serve this need, I have received my CDPE--Certified Distressed Property Expert designation. RE/MAX is ready and waiting to help the economy!

KCM Blog Posts

2011-01-04T14:32:00.001-08:00

Happy New Year!

Periodically, I like to share posts from Steve Harney as I just did. His insight into the housing industry is based upon lots of research. Consequently, I think this information might be useful to my clients. I hope you like them!

As always, I am always happy to receive referrals from you. I promise to take good care of them as your good name rests on the referral!

3 Questions You Must Answer Before Buying a Home

2011-01-04T14:32:00.000-08:00

3 Questions You Must Answer Before Buying a Home

Hurricane Preparedness

2010-08-31T13:43:00.000-07:00

It is that time of year for worrying about hurricanes and we see that hurricane Earl is flirting with our area. Here is some information from the Red Cross and NOAA that is useful.

Hurricanes are strong storms that cause life- and property- threatening hazards such as flooding, storm surge, high winds and tornadoes. Preparation is the best protection against the dangers of a hurricane.

Know the Difference -

Hurricane Watch—Hurricane conditions are a threat within 48 hours. Review your hurricane plans, keep informed and be ready to act if a warning is issued.

Hurricane Warning—Hurricane conditions are expected within 36 hours. Complete your storm preparations and leave the area if directed to do so by authorities.

What Supplies Should I Have Ready? --

Water - at least 1 gallon daily per person for 3 to 7 days

Food - at least enough for 3 to 7 days
— non-perishable packaged or canned food / juices
— foods for infants or the elderly
— snack foods
— non-electric can opener
— cooking tools / fuel
— paper plates / plastic utensils

Blankets / Pillows, etc.

Clothing - seasonal / rain gear/ sturdy shoes

First Aid Kit / Medicines / Prescription Drugs

Special Items - for babies and the elderly

Toiletries / Hygiene items / Moisture wipes

Flashlight / Batteries

Radio - Battery operated and NOAA weather radio

Telephones - Fully charged cell phone with extra battery and a traditional (not cordless) telephone set

Cash (with some small bills) and Credit Cards - Banks and ATMs may not be available for extended periods

Keys

Toys, Books and Games

Important documents - in a waterproof container or watertight resealable plastic bag
— insurance, medical records, bank account numbers, Social Security card, etc.

Tools - keep a set with you during the storm

Vehicle fuel tanks filled

Pet care items
— proper identification / immunization records / medications
— ample supply of food and water
— a carrier or cage
— muzzle and leash

I hope you never need to use this information, but I wanted it to be easy for you to find!

Stress Busters

2010-07-06T05:36:00.000-07:00

Change causes stress--even good change. I know this first-hand because of my recent move to RE/MAX Peninsula. I knew it was the right move for me and my clients. It would provide me with more tools and freedom to serve you better...but it was still a change. I was comfortable where is was. I always did my best to serve my clients, but this opportunity arose and I knew it was the right thing to do. Never the less, it was very stressful leaving old friends and colleagues, leaving my "comfort-zone" and stepping into the uncertainty of a new company, RE/MAX.

This reminded me of the stress everyone goes through with change...and buying or selling a home is a MAJOR change! So, I am posting a wonderful article that originally appeared in Reader's Digest, written by Michael Castleman.

Stress Management Tips

By Michael Castleman

Alternatives to Anxiety

Stress is a fact of life, but being stressed out is not. We don't always have control over what happens to us, says Allen Elkin, Ph.D., director of the Stress Management Counseling Center in New York City, and yet, that doesn't mean we have to react to a difficult, challenging situation by becoming frazzled or feeling overwhelmed or distraught. Being overly anxious is not just a mental hazard; it's a physical one too. The more stressed out we are the more vulnerable we are to colds, flu, and a host of chronic or life-threatening illnesses. And the less open we are to the beauty and pleasure of life. For your emotional and bodily benefit, we've consulted experts and come up with 37 easy, natural alternatives to anxiety. Enjoy!

1. Breathe Easily
"Breathing from your diaphragm oxygenates your blood, which helps you relax almost instantly," says Robert Cooper, Ph.D., the San Francisco coauthor of The Power of 5 (Rodale Press, 1996), a book of five-second and five-minute health tips. Shallow chest breathing, by contrast, can cause your heart to beat faster and your muscles to tense up, exacerbating feelings of stress. To breathe deeply, begin by putting your hand on your abdomen just below the navel. Inhale slowly through your nose and watch your hand move out as your belly expands. Hold the breath for a few seconds, then exhale slowly. Repeat several times.

2. Visualize Calm
It sounds New Age-y, but at least one study, done at the Cleveland Clinic Foundation, has found that it's highly effective in reducing stress. Dr. Cooper recommends imagining you're in a hot shower and a wave of relaxation is washing your stress down the drain. Gerald Epstein, M.D., the New York City author of Healing Visualizations (Bantam Doubleday Dell Press, 1989), suggests the following routine: Close your eyes, take three long, slow breaths, and spend a few seconds picturing a relaxing scene, such as walking in a meadow, kneeling by a brook, or lying on the beach. Focus on the details -- the sights, the sounds, the smells.

3. Make Time for a Mini Self-Massage
Maria Hernandez-Reif, Ph.D., of the Touch Research Institute at the University of Miami School of Medicine, recommends simply massaging the palm of one hand by making a circular motion with the thumb of the other. Or use a massage gadget. The SelfCare catalog offers several, such as the S-shaped Tamm unit, that allow you to massage hard-to-reach spots on your back. For a free catalog, call 800-345-3371 or go to www.selfcare.com.

4. Try a Tonic
A study at Duke University in Durham, NC, found homeopathy effective in quelling anxiety disorders. Look for stress formulas such as Nerve Tonic (from Hyland) or Sedalia (from Boiron) in your health food store, or consult a licensed homeopath. To find one near you, contact the National Center for Homeopathy, 801 North Fairfax St., Suite 306, Alexandria, VA 22314; 703-548-7790 or go to www.healthy.net/nch/.

5. Say Cheese
Smiling is a two-way mechanism. We do it when we're relaxed and happy, but doing it can also make us feel relaxed and happy. "Smiling transmits nerve impulses from the facial muscles to the limbic system, a key emotional center in the brain, tilting the neurochemical balance toward calm," Dr. Cooper explains. Go ahead and grin. Don't you feel better already?

6. Do Some Math
Using a scale of one to 10, with one being the equivalent of a minor hassle and 10 being a true catastrophe, assign a number to whatever it is that's making you feel anxious. "You'll find that most problems we encounter rate somewhere in the two to five range -- in other words, they're really not such a big deal," says Dr. Elkin.

7. Stop Gritting Your Teeth
Stress tends to settle in certain parts of our bodies, the jaw being one of them. When things get hectic, try this tip from Dr. Cooper: Place your index fingertips on your jaw joints, just in front of your ears; clench your teeth and inhale deeply. Hold the breath for a moment, and as you exhale say, "Ah-h-h-h," then unclench your teeth. Repeat a few times.

8. Compose a Mantra
Devise an affirmation -- a short, clear, positive statement that focuses on your coping abilities. "Affirmations are a good way to silence the self-critical voice we all carry with us that only adds to our stress," Dr. Elkin says. The next time you feel as if your life is one disaster after another, repeat 10 times, "I feel calm. I can handle this."

9. Check Your Chi
Qigong (pronounced chee-gong) is a 5,000-year-old Chinese practice designed to promote the flow of chi, the vital life force that flows throughout the body, regulating its functions. Qigong master Ching-Tse Lee, Ph.D., a professor of psychology at Brooklyn College in New York, recommends this calming exercise: Stand with your feet shoulder-width apart and parallel. Bend your knees to a quarter-squat position (about 45 degrees) while keeping your upper body straight. Observe your breathing for a couple of breaths. Inhale and bring your arms slowly up in front of you to shoulder height with your elbows slightly bent. Exhale, stretching your arms straight out. Inhale again, bend your elbows slightly and drop your arms down slowly until your thumbs touch the sides of your legs. Exhale one more time, then stand up straight.

10. Be a Fighter
"At the first sign of stress, you often hear people complain, 'What did I do to deserve this?'" says Dr. Cooper. The trouble is, feeling like a victim only increases feelings of stress and helplessness. Instead, focus on being proactive. If your flight gets canceled, don't wallow in self-pity. Find another one. If your office is too hot or too cold, don't suffer in silence. Call the building manager and ask what can be done to make things more comfortable.

11. Put It on Paper
Writing provides perspective, says Paul J. Rosch, M.D., president of the American Institute of Stress in Yonkers, NY. Divide a piece of paper into two parts. On the left side, list the stressors you may be able to change, and on the right, list the ones you can't. "Change what you can," Dr. Rosch suggests, "and stop fretting over what you can't."

12. Count to 10
Before you say or do something you'll regret, step away from the stressor and collect yourself, advises Dr. Cooper. You can also look away for a moment or put the caller on hold. Use your time-out to take a few deep breaths, stretch, or recite an affirmation.

13. Switch to Decaf
Wean yourself slowly, or you might get a caffeine-withdrawal headache that could last for several days, cautions James Duke, Ph.D., the Fulton, MD, author ofThe Green Pharmacy (Rodale Press, 1997). Subtract a little regular coffee and add some decaf to your morning cup. Over the next couple of weeks, gradually increase the proportion of decaf to regular until you're drinking all decaf. You should also consider switching from regular soft drinks to caffeine-free ones or sparkling mineral water.

14. Just Say No
Trying to do everything is a one-way ticket to serious stress. Be clear about your limits, and stop trying to please everyone all the time.

15. Take a Whiff
Oils of anise, basil, bay, chamomile, eucalyptus, lavender, peppermint, rose, and thyme are all soothing, say Kathy Keville and Mindy Green, coauthors ofAromatherapy: A Complete Guide to the Healing Art(Crossing Press, 1995). Place a few pieces of rock salt in a small vial, then add a couple of drops of the oil of your choice (the rock salt absorbs the oil and is much less risky to carry around in your purse than a bottle of oil). Open the vial and breathe in the scent whenever you need a quick stress release. Look for the oils in your local health food store, or try one of the following mail-order companies: Aroma-Vera, 5901 Rodeo Rd., Los Angeles, CA 90016, 800-669-9514; or Leydet Aromatics, P.O. Box 2354, Fair Oaks, CA 95628, 916-965-7546.

16. Warm Up
Try this tip from David Sobel, M.D., in San Jose, CA, author of The Healthy Mind, Healthy Body Handbook (I S H K Book Service, 1997) : Rub your hands together vigorously until they feel warm. Then cup them over your closed eyes for five seconds while you breathe deeply. The warmth and darkness are comforting.

17. Say Yes to Pressure
Acupressure stimulates the same points as acupuncture, but with fingers instead of needles. Michael Reed Gach, Ph.D., director of the Acupressure Institute in Berkeley, CA, recommends pressing on the following three points:

The Third Eye, located between the eyebrows, in the indentation where the bridge of the nose meets the forehead.

The Heavenly Pillar, on the back of the neck slightly below the base of the skull, about half an inch to the left or right of the spine.

The Heavenly Rejuvenation, half an inch below the top of each shoulder, midway between the base of the neck and the outside of the shoulder blade.

Breathe deeply and apply firm, steady pressure on each point for two to three minutes. The pressure should cause a mild aching sensation, but not pain.

18. Schedule Worry Time
Some stressors demand immediate attention -- a smoke alarm siren or a police car's whirling red light. But many low-grade stressors can be dealt with at a later time, when it's more convenient. "File them away in a little mental compartment, or make a note," Dr. Elkin says, "then deal with them when the time is right. Don't let them control you."

More Tips for Easing Stress

19. Shake It Up
This quick exercise helps loosen the muscles in your neck and upper back, says Dr. Sobel: Stand or sit, stretch your arms out from your sides and shake your hands vigorously for about 10 seconds. Combine this with a little deep breathing, Dr. Sobel says, and you'll do yourself twice as much good.

20. Munch Some Snacks
Foods that are high in carbohydrates stimulate the release of serotonin, feel-good brain chemicals that help induce calm, says Dr. Cooper. Crackers, pretzels, or a bagel should do the trick.

21. Boost Your Vitamin Intake
Elizabeth Somer, R.D., author of Food and Mood (Owl Books, 1999), in Salem, OR, recommends that women take a daily multivitamin and mineral formula that contains between 100% and 300% of the recommended dietary allowances of vitamin B, as well as the minerals calcium, magnesium, chromium, copper, iron, manganese, molybdenum, selenium and zinc. Avoid stress formulas, which often contain large amounts of randomly formulated nutrients, such as the B vitamins, but little or nothing else, Somer says.

22. Get Horizontal
If sex has been on the bottom of your to-do list for too long, move it to the top. Sex increases levels of endorphins, those mood-boosting chemicals in the brain, and it's one of the best total-body relaxers around, says Louanne Cole Weston, Ph.D., a sex therapist in Sacramento, CA. Make a date with your mate, and don't let anything get in the way.

23. Admit It
Each of us has uniquely individual stress signals -- neck or shoulder pain, shallow breathing, stammering, teeth gritting, queasiness, loss of temper. Learn to identify yours, then say out loud, "I'm feeling stressed," when they crop up, recommends Dr. Rosch. Recognizing your personal stress signals helps slow the buildup of negativity and anxiety.

24. Space Out
Look out the window and find something natural that captures your imagination, advises Dr. Sobel. Notice the clouds rolling by or the wind in the trees.

25. Try Tea
By now most of us know about the calming properties of chamomile tea. But a steaming cup of catnip, passionflower, skullcap or kava kava also work, according to Dr. Duke. Whether you use tea bags or loose tea (one teaspoon of tea per cup of boiling water), steep for about 10 minutes to get the full benefits of the herbs.

26. Take a Walk
It forces you to breathe more deeply and improves circulation, says Dr. Cooper. Step outside if you can; if that's not possible, you can gain many of the same benefits simply by walking to the bathroom or water cooler, or by pacing back and forth. "The key is to get up and move," Dr. Cooper says.

27. Soak it Up
"When I have the time, nothing is more stress relieving for me than a hot bath," Dr. Weston says. "But when I don't have time, I do the next-best thing: I wash my face or even just my hands and arms with hot water. The key is to imagine that I'm taking a hot bath. It's basically a visualization exercise, but the hot water makes it feel real."

28. Play a Few Bars
A number of recent studies have shown that music can do everything from slow heart rate to increase endorphins. Good bets: Bach's "Air on the G-String," Beethoven's Pastorale symphony, Chopin's Nocturne in G, Handel's Water Music, or pianist George Winston's CDs Autumn or December..

29. Fall for Puppy Love
In a study of 100 women conducted last year at the State University of New York at Buffalo, researchers found that those who owned a dog had lower blood pressure than those who didn't. If you don't have a pooch, visit a friend's: Petting an animal for just a couple of minutes helps relieve stress, researchers have found.

30. Practice Mindfulness
Heighten your awareness of the moment by focusing intently on an object. Notice a pencil's shape, color, weight and feel. Or slowly savor a raisin or a piece of chocolate. Mindfulness leads to relaxation.

31. Dial a Friend
Sharing your troubles can give you perspective, help you feel cared for and relieve your burden.

32. Stretch
Muscles tighten during the course of the day, and when we feel stressed out, the process accelerates. Stretching loosens muscles and encourages deep breathing. Molly Fox, creative fitness director at the Equinox Fitness Center in New York City, says one of the greatest stress-relieving stretches is a yoga position called the child pose, which stretches the back muscles. On a rug or mat, kneel, sit back on your heels, then lean forward and put your forehead on the floor and your arms alongside your legs, palms up. Hold for one to three minutes.

33. Say a Little Prayer
Studies show that compared with those who profess no faith, religious and spiritual people are calmer and healthier.

34. Make Plans
"Looking forward to something provides calming perspective," Dr. Elkin says. Buy concert tickets, schedule a weekend getaway, or make an appointment for a massage.

35. Goof Off
It temporarily removes you from a potentially stressful situations. Esther Orioli, president of Essi Systems, a San Francisco consultant company that organizes stress-management programs, keeps a harmonica in the drawer for when she's feeling stressed out. Bonus: Playing it promotes deep breathing.

36. Straighten Up
When people are under stress, they slump over as if they have the weight of the world on their shoulders. "Slumping restricts breathing and reduces blood and oxygen flow to the brain, adding to muscle tension and magnifying feelings of panic and helplessness," Dr. Cooper explains. Straightening your spine has just the opposite effect. It promotes circulation, increases oxygen levels in your blood and helps lessen muscle tension, all of which promote relaxation.

37. Tiptoe Through the Tulips
Tending your garden helps get you out of your head and lets you commune with nature, a known stress reliever. If you're not a gardener, tend to a houseplant. Plants = growth = cycle of life, a nice reminder that stress, too, will pass.

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2010-04-29T12:16:00.001-07:00

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The year ends with a flourish!

2009-12-28T07:56:00.000-08:00

I am pleased to say that the housing market has picked up here and that the end of this year has been very busy.

I think it is important to update everyone on the status of homebuyer credits. As you may have heard, the first-time homebuyer credit has been extended--but more exciting than that, there is a tax credit now for existing homebuyers!

The absolute best description I have seen comes from our marvelous Prosperity Mortgage expect, Pam Catts. Here it is--

In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure also opens up opportunities for others who are not buying a home for the first time.

So Who Gets What?
The program that has existed for FTHBs remains intact with the one exception that more people are now eligible based on an increase in the amount of income someone may now earn.

Additionally, the program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.

Deadlines
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

Higher Income Caps in Effect
The amount of income someone can earn and qualify for the full amount of the credit has been increased.

Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sales price of $800,000.

First-Time Homebuyer Tax Credit – Frequently Asked Questions
Here are answers to some commonly asked questions about the tax credit.

What is a tax credit?
A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual's primary residence.

What is the tax credit for first-time homebuyers (FTHBs)?
An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.

Who is eligible for the FTHB tax credit?
Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.

How do I claim the credit?
For those taking advantage of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405 (http://www.irs.gov/pub/irs-pdf/f5405.pdf).

Can you claim the tax credit in advance of purchasing a property?
No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.

Can a taxpayer claim a credit if the property is purchased from a seller with seller financing and the seller retains title to the property?
Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Examples of this would include a land contract, contract for deed, etc. According to the IRS, factors that would demonstrate the ownership of the property would include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Are there other restrictions to taking the credit?
Yes. According to the IRS, if any of the following describe your situation, a credit would not be due.

You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.
You do not use the home as your principal residence.
You sell your home before the end of the year.
You are a nonresident alien.
You are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)
Your home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)
You owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2006, through July 1, 2009.

Can you buy a home from a step-relative and be eligible for the credit?
Yes. Provided the person you are buying a home from is not a direct blood relative, the purchase would be allowed.

Can parent(s) who will not live in the property cosign for a mortgage for their child and the child that is a qualifying FTHB still be eligible for the credit?
Yes.

Can a separated spouse who has not owned a home for four years qualify for the FTHB tax credit if the spouse has owned a property anytime in the last three years?
No. However, the spouse may be eligible for the repeat buyer credit. The best path to take in any situation regarding income taxes is to speak with a professional tax preparer or CPA.

If you have any questions that fall outside the situations here, give Pam Catts a call at 757-564-2626 and if you do not have an accountant to speak with, she can refer you to one.

See-Saw News Stories!

2009-08-31T11:14:00.000-07:00

News is what sells newspapers, captures your attention as you pass the TV or while listening to the radio in your car. To capture your attention news needs to be short and sound exciting--whether it is good or bad.

We have been conditioned to react to extremes. Not so long ago, we were hearing only gloom and doom from the media regarding the housing market. Now, everyone is suddenly excited by all of the recent headlines that say "homes sales are increasing."

What home sellers often interpret such headlines as meaning is--the market is doing much better so I can ask the same price as my neighbor did last year or the year before. Okay--that might seem logical, but what if the reason more houses are selling is because they have been foreclosed on and are selling for much lower than market value, driving prices down further?...or perhaps prices are increasing 2% after something like a 22% drop? Well, that turns the Seller's assumption upside down!

Now look at an actual recent headline that said "New Construction is up 11%." Sounds WONDERFUL. Let's celebrate! We're fine! Wahoo!!! But, if you take the time to look deeper and see that looking back at the average increase historically shown in that particular month, this was the worst increase since 1982. Suddenly, you see that all of the excitement and celebrating is unfounded.

Unfortunately, people who rely only on what they read, hear or see in headlines and soundbites can be misled by phrasing, as well. Take this statement that is written in the manner of many headlines--"The chicken is ready to eat." Depending on how you read this, it can be determined that your chicken dinner is served--or--looking at it another way, your pet chicken is hungry and waiting to be fed.

Another thing the press does can give us whiplash. You get one headline--like when the Wall Street Journal--a very respected publication--prints a story in July that says Home Sales are Up All Around and that is followed less than a month later with one saying that the housing market's "Foundation Appears Firm but Prices Keep Falling."

Relying on just headlines and soundbites to tell the true story doesn't work. Aug. 25, 2009 MSNBC posted an AP story with this headline--"Home prices post first quarterly rise in 3 years." Continue farther down in this same article and you get this summation--"Prices, however, have a long way to go to recover completely. Every metro showed annual declines, with fifteen reporting double-digit drops." Again, not the rosy picture you expected from the headline.

Delving deeper into the facts is what we need to do. As your Real Estate professional, it is my responsibility to keep up with the facts and to be ready to interpret the headlines based upon the reality of the facts that are behind the headlines. I will be happy to discuss the current market conditions with you and to explain how things are going. Just call or email me anytime!

Appraisals versus Assessments

2009-07-13T13:34:00.000-07:00

TRUE OR FALSE? Property Appraisals and Assessments are the same.

FALSE!

There can be a significant differences between the two.

Assessed Value:

Assessed value is a value placed on a home by your local jurisdiction’s tax assessor. It strictly for tax purposes and is used determine tax payments. An entire jurisdiction is usually assessed yearly with values determined by a qualified team who'll ideally survey numerous properties in different neighborhoods and look at recent sales. Ideally this assessed value should reflect the going market value of the properties in your town, and neighborhood, but since these calculations are not based upon specific details a visit to your home might reveal, they are generally less accurate than an appraisal.

While tax assessors are required to determine the value a property is to be taxed on each year, they're not required to adjust the assessed value of those properties to reflect market value. Also, different places may have differing parameters for determining assessed values, so it's very possible that the assessed value will not reflect the true market value of a home.

Appraised Value:

A qualified appraiser comes to your home, takes measurements and notes the specific features and attributes of you home. The appraiser will complete a report this visit to your home and how your home relates to comparable homes in the area to determine it's market value. An appraisal is an accurate way to determine the market value of your home.

Generally an appraiser will use a combination of approaches to accurately determine a fair and current value of your home. The Market Approach, is one method whereby an appraiser will compare recently sold, similar properties and make adjustments between the subject properties and it's comparables. The Cost Approach is a method where the appraiser will determine the cost to re-build the property in question. Lastly, the Income Approach is a method that relates to income-producing properties such as apartments. It is based on the theory that a home's value includes the present worth of the income stream that the property is capable of producing when developed to it's highest and best use.

So, before you assume that your home's assessed value is a fair representation of it's current market value, consider hiring an appraiser to get a more accurate view of the current worth of your home. If you are buying a home, your Realtor should do a Comparative Market Analysis to see if the asking price is close to market value.

An important thing to remember is that both assessments and appraisals are merely snapshots in time giving you an idea of the value of the home at the time the assessment or appraisal was done. Based upon the economy, the market and other factors, they are subject to change in either direction--up or down!

Market Assessment....for today

2009-03-23T14:27:00.000-07:00

Now that Spring has arrived, we see new activity in the local market. The $8,000 first-time homebuyer credit (anyone who hasn't owned in 3 years also qualifies) and low interest rates have started a flurry of interest in homeownership. With home prices down and the interest rates at all-time lows, this is the perfect time for Buyers.

Homeownership continues to outstrip most other investment opportunities. Historically, the value of homes nationally has increased at a n average rate of between about 5 and 6% a year. If you look back to the 1980's in five year increments, you will see averages around the 25% range + or - 2%. However, in the period between 2000 and 2006 there was an unprecidented increase---not 28%-- not 30% or even 50%, but almost 89%!

An increase of this magnitude should have sent up red flags, but our entire economy was in an unprecidented boom, so we were all happy to believe that this might be a "new norm." Well, it is not and our markets have suffered as we deal with the necessary correction.

Sellers who have owned their homes for awhile will still be in great shape if they want to sell. They just have to remember that what homes sold for in the past few years was an anomaly. It really is only those who bought in the last few years financed at close to 100% of the value or took out interest only loans and have not paid down the principle on their loans who are in dire straights if they need to sell. For these folks it might just be that their home's current value is below what they still owe!---Of course, changes in administration policies take place daily and there may be hope for people caught in this predicament.

Welcome to Suzanne Dana's Blog

2009-03-19T11:44:00.001-07:00

Welcome to my real estate Blog. Please check back often as I will be posting regular updates.

Sincerely,
Suzanne Dana