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.

Columbus Day Sales in Full Swing - Houses Too!

Yes, retail stores are starting their holiday sales on Columbus Day! Too soon? Well, maybe, but not for homeowners who want to sell their houses and homebuyers who want move before the holidays or at least before the winter...who wants to be moving in the snow and ice?

Serious sellers who are putting their houses on the market now need to make sure they are pricing their homes realistically and those who have been on the market for a while and over estimated what buyers would be willing to pay need to reduce their prices; and many are doing that. We're seeing price reductions everyday in towns where you may not expect it - Concord, Weston, Newton, Arlington, Wayland, etc.. Luxury home buyers have some especially good opportunities right now. If you are planning to buy a house and want to be in for the holidays or soon after, Columbus Day is the day to get going!

Unlike shopping for clothing, electronics, mattresses, or even a car where you can get same day
pickup or take possession within a couple of days, it takes time to close on a house. If you're selling you need to get the house ready and your agent needs time to market the property in order to secure the right buyer. If you are buying, you need to contract with a buyer agent, decide on a property, do your due diligence, have your home inspection, have your attorney review documents and have your mortgage approved and cleared to close.

 The timeline from offer acceptance to closing on a home is generally 45 to 60 days. Some lenders can get everything done in 30 days if all of your paperwork is in order and the appraisal can be completed quickly, but that is too stressful for most buyers and most offer 45 to 60 days. Even cash deals can take a couple of weeks - title searches and paperwork still need to be completed by attorneys, etc.

The Fall real estate market is in process and if you want to be home for the holidays, take a page from retailers and start now. Oh and about those great retail sales, it's a good idea to hold off on your purchases and not run up debt on your credit cards. Lenders don't like to see a lot of new debt when they are reviewing your eligibility for a mortgage. They'll be plenty of bargains, especially on home-goods, after the holidays... and you'll have a great time filling your new home! Check out homes for sale and contact me if you'd like to be home for the holidays - https://www.marilynmessenger.com

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About Marilyn - https://www.marilynmessenger.com/recommendations-for-marilyn-messenger

Hot Times for Condos!

Everyone has heard by now that the real estate market is as hot as the weather this summer! The demand for condominiums, including townhouses, detached single-family, duplex, and high-rise and mid-rise apartment-styles is especially high. This is partly due to the lack of supply of single-family homes for sale but also because condominiums offer the easy life-style that is attractive to first-time buyers, down-sizers, and anyone who wants to enjoy the benefits of home-ownership without a lot of the work.

The Regency at Stow, still under construction, is sold out!

New communities that are being built for active adults/55+ are selling out faster than they can be completed. The Regency at Stow, a 66 unit development is sold out. Highcrest at Meadow Walk near the Whole Foods in Sudbury is also moving fast with 13 units already under contract. There have also been resales at Mohoney Farms and Dudley Brook in Sudbury; and at WestRidge in Hudson. 

SOLD at WestRidge - Single family condo - $595,000

As the supply of non-age restricted condominiums continues to remain low, prices are continuing to rise!

Year-to-date, the median sale price of $454,950 for all styles of condominiums in Middlesex County is up 7.05% over last year and the average price of $510,365.42 increased by 5.60%.

Good news for sellers but tough times for buyers who need to be prepared to step up and in many cases be willing to compete, especially for units that are completely updated and move-in ready. For buyers who are willing to do some updating on their own, competition is a bit less fierce.

If you are looking for easy living in a great location near Concord, Acton, and Sudbury, here is an excellent opportunity at Deer Hedge Run in Maynard that's listed for $290,000 with 3 finished levels plus a full basement, 2016 furnace and a/c, an eat-in kitchen, open-concept living/dining room, and parking directly in front of the unit. Click for details.

             

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Homes for sale at www.marilynmessenger.com
Contact Marilyn
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7984 Reasons to Sell Your House Over the Holidays

Holiday Season is a Great Time to Sell!

The holiday season is such a hectic time for people. Getting together with family and friends, traveling, shopping, decorating, company parties, charity events... So why would a home-seller keep their house on the market and even more, why would anyone list their house for sale during this busy time? A lot of real estate agents (who don't work over the holidays) will tell you that no one buys houses over the holidays anyway and you'll get more money if you wait until Spring like everyone else does, right?

Well actually, there are 7984 reasons why! That is the number of single-family and condominium home sellers in Middlesex County who accepted offers on their houses last year between November 15 and January 15. That includes 22 in Sudbury, 12 in Wayland, 17 in Concord, and 18 in Maynard. In Weston, there were 16, 22 in Hudson, and in Acton there were 30!

Sale prices for the properties that accepted offers during the holidays ranged from $108,000 for a condominium in Acton to $5,500,000 for a luxury estate in Weston; and all prices ranges in between. 

So why do houses sell over the holidays? Because:

• Buyers have time to look; unused vacation days; companies give their employees extra time for shopping.
• Holiday/year-end bonuses.
• Pay-raises.
• Motivated buyers who missed out or were out-bid in the Spring, Summer and Fall markets.
• New jobs - companies hire for the new year. Relocating buyers need to make decisions soon.
• People get engaged, married, combine households and need more space.
• Visiting family brings out the nesting instinct.
• Down-payment holiday gifts - click here to out how your family can give money tax-free.
• Good deals; buyers are seeing price reductions from sellers who are ready to move.
• People are in the mood to shop and there's nothing better than buying a house!

As for selling for more money in the Spring, if you are selling your house you are most likely going to buy another place to live. If prices are higher in the Spring, then you will also pay more for your next house. You may sell for less at this time of year but you will also pay less. If your end-goal is to buy another house, then understand that selling is just a step n the process toward buying. You will be ready to act as soon as houses come on the market while other buyers are waiting to sell.

So if your house is currently on the market, hang in there; the inconvenience can be worth it. If you are planning to sell, do it now. You'll be ahead of the competition and be ready to move forward.
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If you are ready to buy or sell in Concord, Wayland, Sudbury, or any of the towns west of Boston - call Marilyn at 508-596-3501 or visit www.marilynmessenger.com to see homes for sale in Massachusetts.

Who Saves the Commission?

When the market heats up it is always tempting for sellers and buyers to think they can get a better deal on their own without a real estate agent to represent them. But who's really getting the better deal?

One of the most common reasons buyers want to deal directly with the seller is because they feel they can save the commission.  It’s a valid consideration but interestingly, it’s the same reason the seller isn’t employing an agent; they feel they can save the commission.

Both parties cannot save the commission.  The buyer feels they have earned it because they’ve had to find the home, determine its value and negotiate with the seller.  They had to arrange their own financing, title and inspections.

The seller equally feels that they have earned the commission because they have incurred all of the marketing expenses and have invested hours upon hours to be available to show the property, hold open houses and answer inquiries. They have had to research value, financing, title work and make decisions.

There is certainly value in all of the things that buyers and sellers are willing to do to save the commission but only one person can save the commission only if the buyer and seller can reach a written agreement.

There is value to having a third party advocate helping each party to the transaction.
The Profile of Home Buyers and Sellers (Exhibit 8-1) reports that 14% of sales were For-Sale-by-Owners in 2004 compared to just 9% in 2013.  The trend shows that agent-assisted sales rose to 88% in 2013 from 82% in 2004.

The three most difficult tasks identified by for-sale-by-owners is attracting potential buyers, getting the price right and understanding and performing the paperwork. When surveyed, sellers most value the home selling in an anticipated time frame and for an expected amount.

Buying or selling a house may look easy - just take some pictures, put it on the Internet, have an open house...so why pay a commission? The reality is that both parties cannot save the commission.  It is earned by providing specific services that are essential to the transaction.  The capital asset of a home represents the largest investment that most people make.  An investment that important certainly deserves the consideration of a professional trained and experienced to handle the complexities involved.
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BTW - all real estate is local and while the media is reporting on inventory shortages leading to bidding wars, cash buyers, contingencies being waived, the market is Sudbury is actually starting to turn a bit. Current inventory is higher that is was last year at this time and also up from last month. A lot of houses came on the market in May. The median list price is also a bit lower; and there have been 24 price reductions on 23 single-family homes during the past month. Want to know more? Call 508-596-3501 or check out houses for sale at www.marilynmessenger.com. 

Don't Do It!

You’ve seen lists telling buyers what to do to find the right home but knowing what not to do can be just as important.  After finding the right home, negotiating a contract, making a loan application and inspections, buyers, understandably, start making plans to move and put their personal touches on the home.

In today’s tenuous lending environment, little things can derail the process which isn’t over until the papers are signed at settlement and funds distributed to the seller. Verifications are made by a lender at the beginning of the loan process to determine if the buyer qualifies for the mortgage. The verifications are usually done again just prior to the closing to determine if there have been any material changes to the borrower’s credit or income that might disqualify them.

Simply stated:

1. Don’t make any new major purchases that could affect your debt-to-income ratio
2. Don’t apply, co-sign or add any new credit
3. Don’t quit your job or change jobs
4. Don’t change banks
5. Don’t open new credit accounts
6. Don’t close or consolidate credit card accounts without advice from your lender
7. Don’t buy things for your new home until after you close
8. Don’t talk to the seller or the seller's agent without your agent

 

Your real estate professional and lender are working together to get you into your new home. It’s understandable to be excited about one of the biggest decisions you’ll make and that you feel you need to be getting ready for the move.

Planning is smart but don’t do anything that would affect your credit or income while you’re waiting to sign the final papers at settlement. This is also true for homeowners who are planning to refinance or take out a home equity loan.
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Homes for sale, ask Marilyn, or learn more about buyer agency, market condition reports for Wayland, Sudbury, Concord, Stow, and Maynard at www.marilynmessenger.com

Written Agreements Benefit Buyers

Most consumers know that if they want to “hire” a real estate broker/agent to sell their home and represent their interests, they must sign a contract. Realtors® cannot list a property and represent a seller without one. The contract clearly spells out the terms of the agreement including length of time, compensation and each party’s responsibility.

A buyer agency agreement/contract does the same thing. It is an agreement for an exclusive arrangement between a buyer and a broker/agent for a period of time. It spells out how much the agent is to be compensated and by whom – it is in the buyer’s best interest to be clear about this. It describes each party’s responsibility and obligation. It lists the geographical areas covered, as well as the home search method. The contract also explains the terms “dual agent” and “designated agent” – very important to understand before the negotiation process.

While buyer agency is not a new concept – it has been legal in MA for about 15 years and a couple of years ago the law that governs agency relationships was updated to further ensure consumer protection, many buyers and some agents still don’t understand the benefits of a written Buyer Agency Agreement/contract. I have had many buyers call me to ask for help finding a home and they tell me they have had disappointing experiences with their “buyer” agents. When I ask if they had a contract with these agents, they answer is almost always “no”. Well, of course they are disappointed!

Satisfaction is tied to expectation. Know what to expect – get it in writing!

Find your next home at http://www.marilynmessenger.com/ - complete MLS listings with addresses and maps, news and information from an Accredited Buyer Representative and Certified Residential Specialist - Sudbury MA and west of Boston.