Hope Leitner, Realtor®, CRS

One of the first steps in a good outcome is knowing a little bit about what you're about to undertake.   By being aware of some of the areas regarding homes that may not come up every year in a tax return, you'll be able to point them out to your tax professional or seek more information from IRS.gov. Look through this list of items for things that could affect your tax return.   Even if you have relied on the same tax professional for years to look out for your best interests, they need to be aware that there could be something different in this year's return. If you bought a home for a principal residence last year, check your closing statement and identify any points or pre-paid interest that you or the seller paid based on the mortgage you received.   These can be deducted on your Schedule A as qualified home interest if you itemize your deductions.   See Home Mortgage Interest Deduction | IRS Publication 936 (2018 version not released as of this newsletter...

One of the most common loans you can get to buy a home is a 30-year fixed rate mortgage. If the thought of paying for your home over the course of 30-years seems daunting, here are some easy ways to shorten that term which will actually end up saving you money over the life of your loan. Any additional payments to the principal amount (the original sum of money borrowed in a loan), helps to cut down the amount of interest that you will pay over the life of your loan and can also help to shave years off the loan as well. When you make ‘extra’ payments toward your loan, the key is to let your lender/bank know that you want the extra funds to go toward your principal balance as they will not automatically do this for you. You don’t have to double your mortgage payment to make a big difference either! If you have a 30-year mortgage on a median-priced home ($250,000) with a 5% interest rate, you’ll be responsible for a $1,342.05 monthly principal and interest payment. Over the course ...

There is a lot of uncertainty regarding the real estate market heading into 2019. That uncertainty has raised concerns that we may be headed toward another housing crash like the one we experienced a decade ago. Here are four reasons why today’s market is much different: 1. There are fewer foreclosures now than there were in 2006 A major challenge in 2006 was the number of foreclosures. There will always be foreclosures, but they spiked by over 100% prior to the crash. Foreclosures sold at a discount and, in many cases, lowered the values of adjacent homes. We are ending 2018 with foreclosures at historic pre-crash numbers – much 2. Most homeowners have tremendous equity in their homes Ten years ago, many homeowners irrationally converted much, if not all, of their equity into cash with a cash-out refinance. When foreclosures rose and prices fell, they found themselves in a negative equity situation where their homes were worth less than their mortgage amounts. Many just wa...

We frequently talk about why it makes sense to buy a home financially, but more often than not the emotional reasons are the more powerful or compelling ones. No matter what shape or size your living space is, the concept and feeling of a home can mean different things to different people. Whether it’s a certain scent or a favorite chair, the emotional reasons why we choose to buy our own homes are typically more important to us than the financial ones. 1. Owning your home offers stability to start and raise a family From the best neighborhoods to the best school districts, even those without children at the time of purchase may have this in the back of their minds as a major reason for choosing the location of the home that they purchase. 2. There’s no place like home Owning your own home offers you not only safety and security, but also a comfortable place that allows you to relax after a long day! 3. You have more space for you and your family Whether your family is expa...

Some Highlights: •Existing home sales are currently at an annual pace of 5.32 million and have increased on a monthly basis for the last two months. •The inventory of existing homes for sale remains below the 6-months needed for a normal market and is now at a 3.9-month supply. •Inventory remains low due to high demand from buyers who are still looking for houses to buy!

Being a better homeowner is a full-time job.   It's not just about making better decisions when you buy and sell; it's making better decisions throughout the time you own the home. It takes good information to make good decisions.   Think of times when you need advice on financing, taxes, insurance, maintenance, finding reasonable and reliable contractors and lots of other things.   Imagine how nice it would be to have a real estate information line you could call whenever you have a question. During the purchase or sale, the obvious place to get real estate answers is your agent but where do you go the rest of the time? Since homeowners are now staying in their homes for ten to twelve years or more, they need a reliable resource for good information and advice. Our objective is to move from a single purchase or sale to customers for life; a select group of our friends and past customers who consider us their lifelong real estate professional.     We belie...

Here are five reasons listing your home for sale this winter makes sense. 1. Demand Is Strong The latest Buyer Traffic Report from the National Association of Realtors (NAR) shows that buyer demand remains strong throughout the vast majority of the country. These buyers are ready, willing and able to purchase… and are in the market right now! More often than not, multiple buyers are competing with each other to buy a home. Take advantage of the buyer activity currently in the market. 2. There Is Less Competition Now Housing inventory is still under the 6-month supply that is needed for a normal housing market. This means that, in the majority of the country, there are not enough homes for sale to satisfy the number of buyers in the market. This is good news for homeowners who have gained equity as their home values have increased. However, additional inventory could be coming to the market soon. Historically, the average number of years a homeowner stayed in their home was si...

Smart home technology promises to make your home more comfortable, convenient and secure.  It may not be the home from the Jetson's but artificial intelligence is the hope to make it the home of the future which is available now and controlled from anywhere you have an Internet connection. When Alexa appeared at Christmas-time two years ago, most people thought it was a novelty to ask what the weather will be or to play a song.  Few people understood the vision of Amazon would be verbally purchasing everything imaginable and that your calendar, contacts, lights, and appliances would all be connected. There are plenty of players in the market including Amazon Alexa, Google Assistant, Samsung Smart Things, Apple and others.  It starts with a hub that acts like a brain for your system to connect the different home automation devices.  You'll establish an online account with the hub manufacturer so that you can adjust settings and controls. You could start sim...

Price, condition and terms are factors that any owner must consider when marketing their home.   Price is usually the easiest to adjust to compensate for shortcomings in location or condition of the home.   Improving the condition of the property is more time consuming but updates to kitchens, baths and other things can appeal to a buyer. One of the most overlooked marketing factors are terms which are also referred to as financing concessions. Paying part or all a buyer's closing costs is the most common financing concession.   By doing so, the buyer doesn't need as much cash to get into the home which can be attractive to more buyers. There is another financing concession that is not used very often in today's market but it is still allowed and can increase the marketability of a home. A temporary buy-down of the interest rate makes a lower payment for an initial period. It is still a fixed-rate mortgage that the buyer must qualify for at the note rate and there...

The Federal Reserve Board's Triennial Survey of Consumer Finances recently revealed the net worth of a homeowner was $231,400 compared to $5,200 for a renter.   The net worth of homeowners increased 15% from 2013 to 2016 while renters' decreased by 5%. Appreciation and principal reduction are the two dynamics that affect a homeowner's equity.   Each payment is applied to the interest for the previous month and the principal reduction to retire the mortgage. A $300,000 home purchased with a $294,566 FHA mortgage at 5% for 30 years has an average monthly principal reduction $362 in the first year. Two percent appreciation would benefit the buyer by $500 a month.   In this example, the equity grows by $860 a month for the homeowner.   A tenant would have to invest $660 a month over and above the rent they're paying. Based on the assumptions listed above, the $10,500 down payment would become approximately $85,000 of equity in seven years. Leverage and forced savin...