The recently signed HR4853, otherwise known as the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act, will extend Bush era tax brackets and a capital gains tax rate of 15 percent through 2011 and 2012.
It will also extend numerous energy efficiency credits through December 31, 2011 -- the Energy Efficient New Homes, Energy Efficient Existing Homes, and Energy Efficient Building credits. According to NAR the provisions included in HR4853 are as follows:
Energy-efficient New Homes Credit: A tax credit, based on numerous energy efficiency milestones, has been available to some home construction activities since about 2008. That provision had expired, but is now renewed through 2011. The credit is available to builders/manufacturers of new homes that meet the various milestones.
Energy-efficient Existing Homes: The tax credit for homeowners who make specified energy-related improvements to existing homes was scheduled to expire December 31, 2010. It has been extended through December 31, 2011. The qualified investments include replacement windows, doors, or skylights, some roofing materials and some heating and cooling equipment. The amounts of the credit vary depending on the asset and its energy rating as determined by the Energy Star program. The standards for qualified property are tougher than they were in 2010, so homeowners will need to exercise great care in their acquisitions. The credit is available only for improvements to a principal residence and only if the improvement is original to the property and only if the property will last for at least 5 years. The credit is not available if the improvement is financed using any form of subsidized energy program.
Energy-efficient Buildings: Owners of commercial buildings may qualify for tax credits for investments in designated insulation, windows and roofing improvements. Improvements to the heating/air conditioning systems, water heaters and air circulation fans may also be eligible for the credit. As with the home improvement credits, these credits require compliance with a variety of energy efficiency standards. Investors should exercise great care in determining what assets will satisfy the given criteria. The improvements must be in place on or before December 31, 2011.
Monday, January 3, 2011
Wednesday, December 15, 2010
NAR 2010 Homebuyer Survey Results
NAR conducted their annual Homebuyer survey and the results for 2010 were just released. If you haven’t had a chance yet to review, below is an overview of some of the key findings.
- In 2010, first-time homebuyers constituted 50% of the market. There are a number of factors to explain this significant increase, one of which is that first-time buyers don’t have to sell a home before they can buy. Moreover, prices have been dropping while interest rates remain low by historical standards. Especially, government policies such as tax credits have played a major role.
- Only 4% of buyers purchased a home that had been foreclosed or that was in the process of foreclosure. That is actually lower than a couple of years ago. In 2010 a full 39 % of buyers did not even consider buying a home in foreclosure. Of those who did consider making such a purchase, but did not ultimately do so, the primary reason (26%) was that they simply could not find a home that was right for them. Nineteen percent did not purchase a foreclosure home because the process was too difficult or complex. Another 17% did not buy because the house was in poor condition.
- This year 74% of buyers said that they used the internet frequently during the search process, about the same as 76% last year. In 2003 that number was 42%.
- 36% of buyers went to the internet as the first step in the home search process. 19% contacted a real estate agent first, and 7% began by driving through neighborhoods looking for homes for sale.
- Buyers use multiple sources of information in the process of looking for a home. Far and away the most used sources are the internet (89%), real estate agents (88%) and yard signs (57%).
- Multiple Listing Service (MLS) websites were the primary source of information for buyers who used the internet in their search process. 59% of those buyers went to MLS sites. 45% used Realtor®.com, 43% went to real estate company websites, and 42% went to sites hosted by individual agents. Aggregators such as Zillow, Homegain, and Yahoo were visited by 41% of buyers.
- In 2001 only 8% of buyers found their home on the internet. In 2010 37% of buyers learned about their home through the internet.
- In 2001, a yard sign was the third most likely source of information leading to the home that was purchased (15%). This year it is still the third leading source at 11%. Print media may not be dead, but it has shrunk to insignificance in this arena. In 2001, 7% found the home they purchased through a newspaper ad; in 2010 it was 2%. Fewer than 1% found their home through a home book or magazine.
- In 2010, first-time homebuyers constituted 50% of the market. There are a number of factors to explain this significant increase, one of which is that first-time buyers don’t have to sell a home before they can buy. Moreover, prices have been dropping while interest rates remain low by historical standards. Especially, government policies such as tax credits have played a major role.
- Only 4% of buyers purchased a home that had been foreclosed or that was in the process of foreclosure. That is actually lower than a couple of years ago. In 2010 a full 39 % of buyers did not even consider buying a home in foreclosure. Of those who did consider making such a purchase, but did not ultimately do so, the primary reason (26%) was that they simply could not find a home that was right for them. Nineteen percent did not purchase a foreclosure home because the process was too difficult or complex. Another 17% did not buy because the house was in poor condition.
- This year 74% of buyers said that they used the internet frequently during the search process, about the same as 76% last year. In 2003 that number was 42%.
- 36% of buyers went to the internet as the first step in the home search process. 19% contacted a real estate agent first, and 7% began by driving through neighborhoods looking for homes for sale.
- Buyers use multiple sources of information in the process of looking for a home. Far and away the most used sources are the internet (89%), real estate agents (88%) and yard signs (57%).
- Multiple Listing Service (MLS) websites were the primary source of information for buyers who used the internet in their search process. 59% of those buyers went to MLS sites. 45% used Realtor®.com, 43% went to real estate company websites, and 42% went to sites hosted by individual agents. Aggregators such as Zillow, Homegain, and Yahoo were visited by 41% of buyers.
- In 2001 only 8% of buyers found their home on the internet. In 2010 37% of buyers learned about their home through the internet.
- In 2001, a yard sign was the third most likely source of information leading to the home that was purchased (15%). This year it is still the third leading source at 11%. Print media may not be dead, but it has shrunk to insignificance in this arena. In 2001, 7% found the home they purchased through a newspaper ad; in 2010 it was 2%. Fewer than 1% found their home through a home book or magazine.
Tuesday, December 14, 2010
Top 10 Real Estate Marketing Tools
1. Relationships- Go The Extra Mile!
2. 95% of your time should be spent getting the listing and 5% finding a buyer; Telemarketing, Mail, Door Knocking and GET THE PHONE NUMBER!
3. Keep in touch with People
4. Internet leads-track where your leads come from
5. Get more by saying less on your marketing materials
6. Quality of service and office consistency
7. Know your business and the business will find you
8. Investors...Do you know anyone that wants to make a 30% return on their investment? To learn more about this, go to www.cias.com
9. Deal of the week- Offer a deal of the week, let one of your listings stand out for the week.
10. The Million Dollar Real Estate Agent-READ IT!
Top Panel of Real Estate Agents (Kenny Klaus, Russell Shaw, Shavani Dallas and Brett Tanner).
2. 95% of your time should be spent getting the listing and 5% finding a buyer; Telemarketing, Mail, Door Knocking and GET THE PHONE NUMBER!
3. Keep in touch with People
4. Internet leads-track where your leads come from
5. Get more by saying less on your marketing materials
6. Quality of service and office consistency
7. Know your business and the business will find you
8. Investors...Do you know anyone that wants to make a 30% return on their investment? To learn more about this, go to www.cias.com
9. Deal of the week- Offer a deal of the week, let one of your listings stand out for the week.
10. The Million Dollar Real Estate Agent-READ IT!
Top Panel of Real Estate Agents (Kenny Klaus, Russell Shaw, Shavani Dallas and Brett Tanner).
Thursday, December 9, 2010
Greening Your REO and Short Sale Properties
Cheryl King, Associate Broker, Keller Williams Realty East Valley/KW Commercial
www.hybridhomeliving.com
It is that time of year when we prepare our business plans for the coming year. We plan out how many transactions we need to close to reach our financial goals, set our budgets for online services and marketing and plan our 33 and 8x8 touch campaigns.
With the growing number of listed properties being REO and short sales, many of us will be focused on buyers or adding buyer’s specialists to our teams. These can be challenging transactions, however the distressed inventory is actually an advantage if you know how to “Green” the properties. Over the next few months, I will share with you how integrating Green into your business (residential and commercial) will grow your business and your bottom line. First, since “Green” has many different meanings, we need a common definition. When I refer to “Green” I am referring to a high performance home – one that saves energy, lowers monthly utility costs and increases the value of a home.
Tip #1: Rebates and tax incentives: A lender recently told me that 25% of the REO homes in the Arizona market fail to close because the homes do not have an AC unit or the existing one needs to be replaced and the buyer doesn’t have the funds to purchase a new AC. If the home is in an APS service area, APS will subsidize the cost of the new AC (www.aps.com) and there are federal tax credits as well (SRP will have a program similar to the APS program). Truly win/win: the buyer gets their home, a utility company rebate check after closing (some contractors will even advance the rebate), lower monthly electric bills and a federal tax credit. You close a sale and make a client for life. Next month, I will provide more information about how your buyer can benefit from energy efficient loans in addition to the utility company rebates and federal tax credits. Many tax credits expire on 12/31 so suggest that your clients contact their tax accountant today!
If you have a question you would like answered, please send me an email at cking@hybridhomeliving.com or call me at 480.747.8339. Also, watch our events page for the next Greening Your REO and Short Sale class.
As you brush up on your buyer mastery skills for 2001, add a touch of Green!
www.hybridhomeliving.com
It is that time of year when we prepare our business plans for the coming year. We plan out how many transactions we need to close to reach our financial goals, set our budgets for online services and marketing and plan our 33 and 8x8 touch campaigns.
With the growing number of listed properties being REO and short sales, many of us will be focused on buyers or adding buyer’s specialists to our teams. These can be challenging transactions, however the distressed inventory is actually an advantage if you know how to “Green” the properties. Over the next few months, I will share with you how integrating Green into your business (residential and commercial) will grow your business and your bottom line. First, since “Green” has many different meanings, we need a common definition. When I refer to “Green” I am referring to a high performance home – one that saves energy, lowers monthly utility costs and increases the value of a home.
Tip #1: Rebates and tax incentives: A lender recently told me that 25% of the REO homes in the Arizona market fail to close because the homes do not have an AC unit or the existing one needs to be replaced and the buyer doesn’t have the funds to purchase a new AC. If the home is in an APS service area, APS will subsidize the cost of the new AC (www.aps.com) and there are federal tax credits as well (SRP will have a program similar to the APS program). Truly win/win: the buyer gets their home, a utility company rebate check after closing (some contractors will even advance the rebate), lower monthly electric bills and a federal tax credit. You close a sale and make a client for life. Next month, I will provide more information about how your buyer can benefit from energy efficient loans in addition to the utility company rebates and federal tax credits. Many tax credits expire on 12/31 so suggest that your clients contact their tax accountant today!
If you have a question you would like answered, please send me an email at cking@hybridhomeliving.com or call me at 480.747.8339. Also, watch our events page for the next Greening Your REO and Short Sale class.
As you brush up on your buyer mastery skills for 2001, add a touch of Green!
Friday, November 5, 2010
REAL ESTATE SALES TAX TO GO INTO EFFECT 2013 (Part of HC Bill)
Under the new health care bill all real estate transactions will be subject to a 3.8% Sales Tax. The bulk of these new taxes don't kick in until 2013. That's a $3,800 tax on a $100,000 home. If you sell your $400,000 home, there will be a $15,200 tax. This bill will most negatively affect the retiring generation who often downsize their homes. (http://www.businessweek.com/news/2010-03-18/health-bill-said-to-add-3-8-medicare-tax-on-unearned-income.html)
"Any tax on the Real Estate industry right now or in the next 3-5 years will not only hurt an already decimated market, but will also deter even more people from trying to purchase or sell a home. It is just bad business." Said a Fidelity National Title representative, Maricopa County.
www.fntarizona.com
480-214-450
info-fntarizona@fnf.com
"Any tax on the Real Estate industry right now or in the next 3-5 years will not only hurt an already decimated market, but will also deter even more people from trying to purchase or sell a home. It is just bad business." Said a Fidelity National Title representative, Maricopa County.
www.fntarizona.com
480-214-450
info-fntarizona@fnf.com
Monday, October 18, 2010
The key to getting better results in the Arizona Market is the Right Realtor
We have had four straight months of Record Short Sale closings in Arizona, 62% of all Pending sales are now distressed and the days on market have gone from 157 days, to 130for short sale closings.
Our Lender partners, Wells Fargo, Bank of America and GMAC have all improved dramatically on their Short Sale process, communication and making quicker decisions. We are going through some transition, with all Lenders no longer postponing as many trustee Sales and in turn sending the extended pipeline properties to foreclosure to get them pushed through.
There is ONE more big thing, that needs to happen to really help all of us to push through the Distressed Property challenge that faces Arizona, we need to engage our very BEST Real Estate Practitioner’s, the very best REALTORS in the state, in the process. I can tell you as someone who closes over 1500 transactions a month in our state, it is clear the Lenders that have used our assistance to put the best REALTORS in our state into both their Short Sale and REO programs, have clearly had more closings, with less hassles and in the end the Consumer and the Lender is the big winner!!!!
The key to getting a better result, for the Consumer, the Bank and in turn our Real Estate Market is getting the right Realtor, our stats show this fact clearly, feel free to reach out to me, if you want access into our Distressed Property Division, which highlights our very best Realtor Partners.
Steve de Laveaga
Senior Vice President of Sales and Marketing
Fidelity Natioanl Title Maricopa County
steve.delaveaga@fnf.com
480-214-4500
Our Lender partners, Wells Fargo, Bank of America and GMAC have all improved dramatically on their Short Sale process, communication and making quicker decisions. We are going through some transition, with all Lenders no longer postponing as many trustee Sales and in turn sending the extended pipeline properties to foreclosure to get them pushed through.
There is ONE more big thing, that needs to happen to really help all of us to push through the Distressed Property challenge that faces Arizona, we need to engage our very BEST Real Estate Practitioner’s, the very best REALTORS in the state, in the process. I can tell you as someone who closes over 1500 transactions a month in our state, it is clear the Lenders that have used our assistance to put the best REALTORS in our state into both their Short Sale and REO programs, have clearly had more closings, with less hassles and in the end the Consumer and the Lender is the big winner!!!!
The key to getting a better result, for the Consumer, the Bank and in turn our Real Estate Market is getting the right Realtor, our stats show this fact clearly, feel free to reach out to me, if you want access into our Distressed Property Division, which highlights our very best Realtor Partners.
Steve de Laveaga
Senior Vice President of Sales and Marketing
Fidelity Natioanl Title Maricopa County
steve.delaveaga@fnf.com
480-214-4500
Monday, October 11, 2010
Make More on the Listings You Don’t Take Than the Ones You Do!
What does that mean? And why is the concept of making money on the listings you don't take even possible?
As discussed in the "Thriving in a Down Market" event we sponsored on October, 5th, it was discussed why doing a seller consultation before taking the listing will actually make you more money than just taking and working as many listings as you can. The reason is Time is money. Here are some suggestions on how to ensure your seller is "ready for business":
1. Talk to you seller to make sure they have all the right paper work together.
2. Make sure the paperwork is complete
3. Make sure the seller has met with an attorney,
4. Qualifying the seller, is there a hardship?
5. Not taking a listing 45-60 days before foreclosure.
6. What type of loan does the seller have?
7. Who is the lender?
8. Are they considering bankruptcy?
9. Is there Mortgage Insurance?
10. Will the seller have any money to contribute to closing?
Jean Clements
Marketing Director Fidelity National Title
jean.clements@fnf.com
As discussed in the "Thriving in a Down Market" event we sponsored on October, 5th, it was discussed why doing a seller consultation before taking the listing will actually make you more money than just taking and working as many listings as you can. The reason is Time is money. Here are some suggestions on how to ensure your seller is "ready for business":
1. Talk to you seller to make sure they have all the right paper work together.
2. Make sure the paperwork is complete
3. Make sure the seller has met with an attorney,
4. Qualifying the seller, is there a hardship?
5. Not taking a listing 45-60 days before foreclosure.
6. What type of loan does the seller have?
7. Who is the lender?
8. Are they considering bankruptcy?
9. Is there Mortgage Insurance?
10. Will the seller have any money to contribute to closing?
Jean Clements
Marketing Director Fidelity National Title
jean.clements@fnf.com
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