Navy Fellas Realty Group

Real Estate, Residential sales and purchase

Buying or Selling a Home This Winter? Keep These Tax Tips in Mind!

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Buying or Selling a Home This Winter? Keep These Tax Tips in Mind!With all of the expense that can go into buying and selling a home, it’s good to be aware of what you can claim and how a home can benefit you come tax time. When the New Year rolls around and you’re sitting down to the task of completing your taxes, here are a few things that you’ll want to keep in mind.

Gaining from Capital Gains

In the event that you’ve made money off the sale of your home through a capital gain, it’s possible that you may be able to exclude this amount from your tax filing. If you’ve lived in the home you just sold for at least two of the five years before the sale date, not having to report this amount on your taxes may come as a financial win.

Reporting Your Gain

If you have not lived in your home for two of the five years, you will have to report the sale of your home and the capital gain when you file your taxes. This is necessary whether or not you decide to claim the amount. If this happens to be the case for you, it’s a good idea to educate yourself on ‘Net Investment Income Tax’ before filing your return so you can ensure your claim’s accuracy.

A Two-Year Claim For Capital Gain

While there is definitely a great financial benefit in not having to report your gain in all situations, it’s important to be aware that you can only exclude any gain you’ve received from a home sale every 2 years. So, if it happens to be the case that you’ve moved more than once in the last few years, you will have to report any amount that you’ve made from these home sales.

Selling Your Home At A Loss

The boon of a capital gain is certainly ideal if you’ve made some money on your home, but if you’ve sold your home for less than you paid, you won’t be able to claim this. While the end result may be a bit disheartening, this amount cannot be deducted off of your tax return.

Beyond the benefits of buying or selling your home, there are ways that your tax filing can be more pleasant next year if you know some of these tips. If you think you may be perusing the real estate market in the near future, you may want to contact your trusted real estate professional for more information.

What Happens at a Mortgage Loan Closing Meeting? Let’s Take a Look

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What Happens at a Mortgage Loan Closing Meeting? Let's Take a LookSo you’ve found the perfect home, the seller has accepted your offer, and now you’re just waiting for the mortgage to close before you wrap up the sale and take possession. It’s time for the closing meeting.

But what does this meeting entail? And what do you need to prepare for it? Here’s what you need to know.

The Day Prior: Walking Through The Property

24 hours before the closing meeting, you’ll be given an opportunity to walk through the property and do a final inspection. During this inspection, you’ll be able to look for any damage that may have occurred between contract and closing, which means you can negotiate repairs with the seller.

It can be a good idea to schedule your closing date around the 20th of the month, so that if you do find any problems during the walkthrough, you can address them before you take possession.

The Closing Meeting: Title Insurance, Contracts, And More

Typically, the mortgage closing and the home sale closing happen at the same time. During your closing meeting, you’ll need to sign – and bring – a variety of documents in order to take possession of the home. You’ll want to ensure that you bring your good faith estimate, proof of homeowners insurance, contract, and inspection reports to this meeting.

You’ll also want to bring any and all documents that you sent to your bank as part of the home buying process. At this meeting, you’ll discuss the sale with the seller, the seller’s agent, the representative from the title company, the closing agent, the lender, and any attorneys that may be present. By the end of the meeting, you’ll receive a variety of documents, including a deed of trust or mortgage contract and a settlement statement.

You may also be required to sign a mortgage note, which is a note that states you intend to repay the mortgage loan. This note details the terms of your mortgage, including the amount of the loan and what action the lender is entitled to take if you miss payments.

A mortgage loan closing meeting doesn’t have to be complicated. Although there’s a lot that will happen at this meeting and there are a number of documents you’ll need to bring, a qualified mortgage advisor can guide you through the process. 

$500 Renovations That Will Boost Your Home’s Value and Speed Up Your Sale

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$500 Renovations That Will Boost Your Home's Value and Speed Up Your SaleThe idea of home renovations when you’re selling your home can be unpopular because of the cost and time that can go into sprucing up a place you’re about to leave behind. However, making a few simple, economical touches can go a long way to capitalizing on your home’s value and making a difference in dollars. If you’re curious about cheap options for an easier sale, here are a few that may make the deal a little sweeter.

Kick Up The Kitchen A Notch

With all of the time that a family spends in the kitchen, it’s unsurprising that it is fast becoming one of the most important features that go into a potential buyer’s interest in a home. For less than a thousand, you may want to consider an upgraded appliance that will serve as a sparkly new selling feature or even some slightly revamped cabinet fronts that will keep the price down and the look up-to-date.

A Little Bathroom Fix-Up

With the bathroom being one of the smallest spaces in any home, it can be hard to know how to properly enhance this minimal space for maximum effect. Instead of re-doing the floor or the tub, consider the basic cost of a new light fixture and an updated mirror. Simply updating these two items will completely shift the look of an aging bathroom.

Clean Up The Carpet

With carpet making a bit of a comeback, it’s certainly not going to be worth your while to replace any damage it’s incurred before leaving your home. Instead of leaving things to chance, though, consider a relatively economical carpet cleaning that will drastically improve the look of your carpet and may convince potential buyers it’s less worn than it is.

Lighting Is Everything

There are few things that can lend or detract from the look of a room more than the lighting you choose. While you may want to consider a new, nice fixture to change up your living room, kitchen or foyer area, a shade of light that is complimentary to the space it’s illuminating will have more of an impact than anything on how your home is viewed.

Renovations may seem like unnecessary work if you’re planning on selling your home in the near future, but some minor upgrades can make a huge difference on the price tag that your home sale will pull in. If you’re wondering about home upgrades and other factors that will be considered in selling your home, you may want to contact your local real estate agent for more information.

What’s Ahead For Mortgage Rates This Week – December 07, 2015

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Closing Paperwork: How to Read and Understand the Truth-in-Lending Disclosure Statement

Multiple economic reports released last week indicate further improvement in economic conditions. Pending home sales, construction spending and ADP payrolls increased while Non-farm Payrolls fell and the national unemployment rate held steady. The details:

Pending Home Sales, Construction Spending Increase

According to the Commerce Department, pending home sales increased by 0.20 percent in October as compared to September’s reading of -2.30 percent. Construction spending of 1.00 percent for October exceeded September’s reading of 0.60 percent growth and expectations that October’s reading would hold steady with a growth rate of 0.60 percent. Increased construction spending suggests that home builders may increase home building projects, which could relax tight inventories of available homes and ease demand for homes.

Mortgage Rates, New Jobless Claims Rise

Average mortgage rates fell last week according to Freddie Mac. The average rate for 30-year fixed rate mortgages fell by two basis points to 3.93 percent; average rates for 15-year fixed rate and 5/1 adjustable rate mortgages also fell by two basis points with readings of 3.16 percent and 2.99 percent respectively. Average discount points were 0.60 percent for 30-year fixed rate mortgages and 0.50 percent for fixed rate mortgages. Average discount points for a 5/1 adjustable rate mortgage held steady at 0.50 percent.

New jobless claims rose last week with 269,000 new claims filed as compared to the prior week’s reading of 260,000 new claims and analysts’ expectations of 265,000 new claims. The level of new jobless claims neared levels not seen since 2000. The four week rolling average of new claims dropped by 1750 claims to a reading of 269,250 new claims filed. The four-week rolling average of new jobless claims is considered less volatile than weekly readings which can be impacted by holidays and other anomalies that can cause volatility.

Labor Reports Show Growth, Unemployment Rate Unchanged 

Hiring increases and lower layoffs have contributed to the lowest national unemployment rate since 2007. The national unemployment rate held steady at 5.00 percent. ADP reported 217,600 new jobs in November as compared to October’s reading of 196,000 new private sector jobs. Non-Farm Payrolls reported lower job growth of 211,000 jobs as compared to expectations of 200,000 jobs added and October’s reading of 298,000 jobs added. Non-Farm Payrolls covers government and private-sector jobs.

What’s Ahead

This week’s scheduled economic releases include reports on job openings, retail sales and consumer sentiment. Weekly reports on mortgage rates and new jobless claims will also be released.

Video: For Sale By Owner?

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Most people don’t know enough to sell their own house. Here’s why.

1. They Can’t List It!
– Only licensed brokers and agents can create a listing in the MLS sale-by-owner houses will be invisible to agents and unavailable on the Web.

2. Agents Won’t Show It.
– Typically, a buyer’s agent gets part of the commission paid to the seller’s agent. Sale-by-owner houses don’t have that commission commitment so a buyer’s agent might not get paid. No agents makes the pool of buyers MUCH smaller.

3. It’s Probably Overpriced.
– Most homeowners don’t have enough data and emotional distance to put a market price on their own home. and overpricing is another deterrent to potential buyers.

4. Buyers Prefer Neutrality
– Buyers will spend less time in the home and be less likely to make an offer because owners aren’t neutral about the transaction.

5. Legalities & Complexities.

-Real estate transactions are complicated. Most homeowners don’t know enough to avoid potentially expensive liabilities Overlooking a form or required disclosure exposes the seller to lawsuits AFTER the transaction is closed.

There are some sellers with a real estate background that do have enough experience to sell their own home but in most cases you probably shouldn’t try selling your own home.

Video-ForSaleByOwner

Real Estate Investing: 3 Secrets of Successful Home Buyers That You Can Use Today

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Real Estate Investing: 3 Secrets of Successful Home Buyers That You Can Use TodayWhile making a real estate purchase can be a matter rife with many questions, buying to invest in a long-term property can be even more confusing. If you’re looking into investing in real estate and wondering what variables to consider, here are a few tips that you’ll want to keep in mind before deciding on a fruitful investment property.

Be Aware Of The Market You’re Buying Into

Since you’ll need to be aware of what other people are looking for in a property if you’re diving into real estate to invest, you’ll want to carefully consider the neighborhood and city that you’re buying in and think about what the future holds. While becoming knowledgeable about home prices in the area you’re thinking of buying is a must, you’ll also want to think about market projections, trendy new neighborhoods and what the appeal will be to renters or buyers of the home you’re contemplating.

Consider A Diamond In The Rough

It might seem like a home that is a little rough around the edges is going to be a high-maintenance endeavor that doesn’t balance out in the end, but a fixer upper of a place may be end up being the best option. While you may need to renovate a little here and there to unearth some of its natural features, improvements to a home with a good structure in a good neighborhood can be more economical than spending more on a home that instantly appeals. It can also provide a better return on your investment in the long-term.

Stay Within Your Spending Means

When considering an investment property, it can be quite easy to get derailed and think about what you’ll be making instead of the expenditure of the initial investment. However, it’s important to determine beforehand that what you’re choosing to afford is going to be manageable in case you have to swing it on your own. By determining whether or not it’s an affordable expense, you can have a successful investment that will balance out in your favor at the end of the day without having to worry about sinking beneath the cost.

There are many questions that can come along with choosing to invest in real estate, but by carefully considering the market and keeping your purchase at a reasonable price point, you may have a long-term moneymaker on your hands. If you’re interested in other tips for real estate purchasing success, you may want to contact your local real estate expert for more information.