The Gift of Home Tax-free!

December is not only when we give gifts to our loved-ones for the holidays but it's also the time to review tax-saving options for 2019 and plan for 2020 and what could be a better gift than tax-free help with a down-payment for a new home?

Parents, grandparents, aunts and uncles, and even friends can start to pass along/gifting their estates while reducing inheritance taxes and getting to see their family enjoy the benefits of their gift

Under current IRS guidelines (please consult your accountant for tax advice and ramifications) each

parent or relative can give up to $15,000 to each child or relative every year. That would mean that a mother and father can each give $15,000 a year to each son, daughter, and/or grandchild that would amount to $30,000 a year in total per couple for each person that you gift.

If both sets of parents want to help with the down-payment on a house; each of the parents can give each borrower a gift of $15,000 per year. That would add up to $60,000 for both of you! That is a significant amount of tax-free money to help you buy a home for your family! Of course, a gift can also be less than $15,000, so give what you can.

That amount is per calendar year and not based on every twelve months. That would mean that they could give $60,000 (or more) in December 2019 and an additional $60,000 (or more) in January

2020. With less than one-month left , this is the time to bring up the subject with your family. What could make them happier than helping you buy a house and saving money on taxes?

For most types of mortgage loans, you will need to have 5% of the amount of the down-payment on your own, however, there are exceptions. To find out the exceptions and details about how gift money can be applied to your down-payment contact a reputable mortgage broker.

More about tax-free gifts and life-time limits: https://smartasset.com/retirement/gift-tax-limits

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About the author: Marilyn Messenger, a licensed real estate broker, Certified Residential Specialist, and Accredited Buyer Representative, and Certified Luxury Homes Marketing Specialist is associated with Andrew Mitchell and Company in Concord has been representing home buyers and sellers in Wayland, Sudbury, Maynard, Stow, and Concord MA since 1993. www.MarilynMessenger.com for more. Visit www.marilynmessenger.com to see homes for sale, get the latest real estate market reports, and learn about having your own buyer agent on your side.

10 Questions to Find Out if You're Qualified to Sell Your House

Most people think that being qualified is for home buyers and that it means being pre-approved for a mortgage. Being qualified is not just for buyers, sellers also need to be qualified!

Sure, anyone who owns a property can sell it (assuming there are
no legal restrictions) but owning a property does not make for a “qualified” seller. In real estate, the definition of qualified is “ready, willing, and able.” Buyers and sellers both need to be ready, willing, and able; that means financially, logistically and emotionally.
Here are some questions to answer to determine if you are qualified to sell:

1.   Do you have enough equity in your house to cover closing and moving costs or else have enough cash to bring to the closing table?

2.   Are you and everyone involved committed to selling? Do your spouse and/or children want to move? Do you have adult children who have their own ideas about the house and what you should be doing?

3.    Is your house ready to go on the market? Has it been de-cluttered with everything in working condition, fixed or replaced, fresh paint, refinished floors, lighting, landscaping, etc., with updates that will appeal to today’s buyers?

4.   If you plan to sell “as is” and are you willing to reflect that in your list price?

5.   Do you have a place to go when you sell?

6.    Do you have the money/financing to buy a new property before you close on your current home?

7.   If you need to sell before you can buy, is temporary housing a realistic option for you, your family, pets…until you can find the right home? Inventory is extremely low right now, it could take a while.

8.    Are you willing and able to make some compromises/trade-offs?

9.      Do you have a realistic understanding of the current market and will you listen to feedback? 

10.   Are you ready to detach yourself from the memories you made in the house?
Selling your home is a lot of work and can certainly be stressful. Making sure you are qualified/ready, willing and able will make the process easier and result in a better outcome for everyone involved!

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Marilyn Messenger is a licensed real estate broker, Certified Residential Specialist, Accredited Buyer Representative, and Certified Luxury Homes Marketing Specialist/Million Dollar Guild Member associated with Andrew Mitchell and Company, Concord. With 25+ years of experience in Concord, Sudbury, Wayland, Maynard, Stow and the towns west of Boston, Marilyn will make the selling and/or buying process efficient and cost effective for you. Visit http://www.MarilynMessenger.com for more.

Summer Mark-Downs in August - Appliances, Furniture, Clothing...And Houses Too!

August is mark-down time! ! Appliances, home furnishings, back to school items, clothing, gas grills, air conditioners...just about everything goes on sale in August making it a great time to get the deal you've been waiting for and that may include the dream home you've had your eye on but thought the price was a too high for you to make an offer.

Sure, the housing market is still hot and there are some bidding wars happening and buyers need to be prepared to step up, but as hot as the market may be, things are slowing down. August is always the time of year when we see price reductions. Sellers who were overly optimistic when they priced their houses finally recognize that they may not sell for the amount they wanted and are ready adjust their expectations. They know that they've missed out on the buyers who needed to be in for the start of the school year and if they are serious about moving, they will do what is necessary.

Back in May, I wrote a post entitled  "Price Reductions in a Hot Market" that talked about the fact that price reductions were happening and some of the reasons why. Many of those houses have sold but others still have not. There were sellers who held off adjusting their prices and waited until July and going into August are ready to make a deal! And by the way, you may be surprised to hear that these reductions are happening in towns you never thought you would see them in - Concord, Sudbury, Wayland, Weston, and even Newton!

Concord - 87 price reductions during the 12 months ending 7-30-2018

Sudbury - 127 Price Reductions during 12 months ending 7-30-2018

So whether you were one of the many buyers who lost out to higher bids in the Spring or just starting to look and wondering if you'll be able to get an offer accepted, this is the time! Remember though, markets change continuously and come mid-September, they'll be a whole new group of buyers competing again. If you want to take advantage of August sale month, visit www.MarilynMessenger.com where you can see homes for sale and contact me to talk about which sellers might be ready to make a deal!

The Golden Rule for Home Buyers

Buying a home is an emotional experience that can bring out the best and sometimes the worst in people. Even people who are generally considerate sometimes forget how to behave when they are looking for a house. After-all it’s not something people do every day, it’s a big purchase and it’s at least a little scary for most people.
 
When there’s more than one person involved they may not agree, the kids are cranky from driving around, and everyone is concerned about making the right decision. All of these stress factors can cause people to act in ways they never would otherwise.

Here are some things to keep in mind to help you through the process:

1. When you contact a real estate agent or call an office be prepared to give some basic information – name, address, phone number, and if you are pre-approved for a mortgage.

 

2. If you are not pre-approved for a mortgage, don’t be offended if an agent won’t show you a house. Instead, ask who you can contact to get pre-approved. It’s a waste of everyone’s time and agents have a responsibility to show homes only to qualified buyers. If you’re not ready to get pre-approved, then you’re not ready to look at houses!

3. If you go to an open house be prepared to sign-in and give correct information. If you are under contract with a buyer agent make sure you write that on the sign-in sheet. If you don’t want the agent at house to contact you just write please do not contact next to your information. Refusing to sign-in is rude and sets a tone of distrust – what if you really like the house? You’ve already gotten off on the wrong foot. Giving false information is never OK. Remember, you’re in someone’s home!

4. Houses are shown by appointment, so plan ahead. If someone is living there, they need some notice to pick up and get out – very few people can keep their house ready for visitors with a moment’s notice – can you? Even new construction is shown by appointment – there might be workers at the house, etc.

5. Real estate agents and home sellers have schedules. It is not realistic to call an agent or an office from in front of a house and expect an agent come right out to meet you.

Imagine calling your accountant, hair-dresser, plumber, mechanic, financial planner, or anyone else and expecting on the spot service!

6. Set up a meeting with an agent so you can talk about your needs and get to know each other. Buying a home is a big investment and can take several months – don’t you owe it to yourself to invest an house upfront?

7. Buying a home involves the whole family, so it’s OK to bring the kids (although, you will certainly be able to focus better without them…) If you bring them, make sure they understand that they are visiting someone’s home. Keep them by your side at all times, especially in new construction where things are unfinished and may be dangerous. It’s for their safety and for the safety of the homeowners’ possessions – wouldn’t you feel awful if they broke something? And please don’t let them play with the home-owners’ kids toys – they wouldn’t want anyone playing with their things.

8. Treat the house with respect. Of course, you need to look in closets and cabinets, etc. but dresser drawers, medicine cabinets, personal belongings are off limits. Never sit on someone’s bed or use the master bath – sellers know they give up some privacy when their homes are on the market but again, put yourself in their shoes!'

9. Relationships are about trust and mutual respect - loyalty matters. If you are under contract with a real estate agent, always contact that agent when you need information. People can get impatient sometimes or they don’t want to “bother” their agent so they start calling offices or listing agents demanding information or pretending that they are going to be clients.

Call your agent – he/she will call you back. If your agent doesn’t return calls and give you the information you need then find another agent. If you can’t stop yourself from calling an office or listing agent directly, make sure that you disclose that you are working with an agent right away and that you would appreciate some information.

10. The Golden Rule – as with everything else, if you treat people (real estate agents) and property the way you want to be treated, the home-buying process will be efficient, and the transaction will be a lot easier. If you’re not sure what the protocol is, just ask – we’re here to help.

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Marilyn Messenger, a Certified Residential Specialist and an Accredited Buyer Representative (ABR®) and associated with Andrew Mitchell & Company, has been representing buyers and sellers in Sudbury, Maynard, Wayland, Stow, Acton, and west of Boston MA since 1993. See what clients say.

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