Understanding Recapture of Depreciation

Understanding Recapture of Depreciation

The Understanding Recapture of Depreciation Before 1997, capital gains and recapture of depreciation were taxed at the same rate. The 1997 tax changes reduced the tax on both capital gains and recapture of depreciation although not by the same amount. The capital gains rate was reduced from 28 percent to 20 percent, but the recapture of depreciation was reduced to only 25 percent.

Everyone initially celebrated the capital gains reduction, but a closer look showed that in almost all real estate situations a significant portion of the gain would be recapture of depreciation, and the gain would therefore be taxed at the 25 percent rate instead of the celebrated 20 percent rate.

The recapture of depreciation consideration is important because many property investors don’t think in terms of adjusted basis. The average property investor owns one or two rental properties, usually rental houses, rental condominiums, or small multifamily buildings. Most of these investors have taken significant depreciation over the years and are appalled when they find out how that will impact their capital gains. Worse, in some cases market values have fluctuated so that perhaps the
current value is approximately what an investor paid originally for the property, but because the adjusted basis is low, the tax liability is high.

Example:
When Carl bought a triplex 15 years ago, the real estate market was strong and getting better. For a few years after he bought the property, the value of his purchase continued to increase, but then real estate values declined sharply. Carl was unable to sell the property for a number of years without taking an unacceptable loss, so he held it through the bad times and now values are rising. Having managed the property for 15 years, Carl no longer wants to be a landlord. Because real estate values are now back to where they were, Carl feels he can get his money out. Let’s say he paid $300,000 for the triplex and can now sell it for $320,000. After selling expenses, Carl figures he will net the $300,000 he originally paid for it. However, Carl has taken the allowable depreciation each year on his taxes, and his adjusted basis currently stands at $190,000. Although Carl has no true gain because he is selling the property for approximately what he paid for it, he will still have to pay taxes on the recapture of depreciation. In this example, the recapture of depreciation is $110,000 that is taxed at 25 percent, a federal tax liability of approximately $27,500 (plus state taxes).

As you can imagine, anyone in a situation similar to Carl’s is going to deeply resent having to pay any taxes at all. It’s usually perceived as an insult added to the injury of bad investment timing. But is it really? Don’t get me wrong; I don’t usually take the IRS’s side on anything, but in this instance a significant benefit was realized.

In the example above, if Carl is normally in the 30 percent tax bracket for income tax purposes, he was able to use that depreciation deduction over the years to shield himself from $33,000 in income taxes. So he actually would be $5,500 ahead. Okay, that doesn’t really make it any better, but it is at least a silver lining in the dark cloud. In any case, because recapture of depreciation is taxed at a higher rate, it is a crucial factor when estimating taxes.

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How to Estimate Your Capital Gains Taxes

How to Estimate Your Capital Gains Taxes

This How to Estimate Your Capital Gains Taxes  Before you can make any decisions about deferring capital gains taxes, you have to start by knowing the extent of your taxes. Any one particular method of deferring taxes may seem like too much trouble for a $10,000 tax savings, but it might be much more tolerable for a $50,000 tax savings, and for a $100,000 tax savings, it might seem the ideal solution. In fact, the extent of your tax liability will usually dictate how openminded you are about exploring options. With that in mind, it makes sense to start with a discussion of how you can estimate your own taxes.

To estimate your tax liability on the sale of a property, you have to know what the gain will be. The gain on a property is the difference between the net sales price and the adjusted basis on the property. The adjusted basis of a property is:

Original purchase price
+ Purchase expenses
+ Capital improvements
− Depreciation taken
= Adjusted basis

This information is usually calculated each year for filing your tax returns on a particular investment property; so most people just call their tax preparer and ask. You can also look at a previous tax return to see the amount of yearly depreciation and come up with a pretty good estimate.

Once you have your adjusted basis on the property, estimating the capital gain is fairly straightforward:

Sales price
− Selling expenses
− Adjusted basis
= Capital gain

Your capital gain on a property has two components: actual gain and recapture of depreciation. So before you can estimate the actual tax on the gain, you need to know how much of the gain will be considered recapture of depreciation. I’ve already covered the basic tax rate for capital gains, so if you have never taken any depreciation on the property, you can estimate your taxes now as simply 20 percent of your capital gain (plus state taxes). However, if you are like most people, you have taken the available depreciation on the property over the years and thereby reduced your adjusted basis. As such, your tax estimate will have to take into account the higher tax rate on the recaptureof depreciation portion of the gain.

Adjusted Basis Change over Time

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The Right Decisions

The Right Decisions

Making The Right Decisions of real estate Making the right decisions starts with identifying your objectives and then seeking good advice on how to meet them. It defies common sense, but many people do start on a course of action before they really know what they are trying to achieve. The best advisors in the world are useless if they don’t really know what it is you want to accomplish.

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Estate Planning

Estate Planning

The Estate Planning For some investors there comes a time when the most important factor guiding their investment or reinvestment decisions is estate planning. You don’t have to be rich to do estate planning—just smart. Everyone dies; it’s not a question of if; it’s a matter of when.

Many investors reach a point where they decide to make changes in their investments so that their estate is more manageable for their heirs or is structured properly to minimize any potential estate taxes. Sometimes a highmaintenance property has to be exchanged for a low-maintenance one.

Or perhaps a partnership interest in a property investment has to be divided to eliminate the potential for future disputes. Or maybe an investor wants to remove certain investments from her taxable estate through a charitable remainder trust or private annuity trust. Whatever the specific situation, there are savvy ways to restructure property investments so capital gains taxes can be deferred now and possibly eliminated completely for an investor’s heirs.

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Providing or Restructuring a Stream of Income

Providing or Restructuring a Stream of Income

The Providing or Restructuring a Stream of Income In some cases an investor has property that has been in the family for a long time. Perhaps it’s a piece of vacant land, a rental house, or some other type of investment property. Many times it is producing little or no real income in relation to its current market value if it were to be sold.

Example:
Mary is 70 years old and lives in northern California. Her mother passed away 20 years ago, leaving Mary a small house located in southern California. There is no mortgage on the house, and it is rented for $800 per month. After management fees, repairs, property taxes, and insurance, Mary’s yearly income on the property is about $7,200. The current market value of the house is $220,000, so the stream of income on this asset is only about 3.3 percent.

If Mary in the previous example were trying to provide the best stream of income, the intelligent financial decision would be to sell the house and invest the money another way. However, Mary has had the house for 20 years, so having to pay taxes on her capital gain and recapture of depreciation will reduce proceeds in her situation by about 28 percent. For Mary, a better choice would be to defer her capital gain taxes through an installment sale, defer her taxes through a private annuity trust, or eliminate the tax liability through a charitable remainder trust.

All three of these options dramatically improve Mary’s stream of income. Which one is best depends on determining Mary’s secondary goal. For example, if she is primarily interested in improving her income stream and only secondarily interested in removing the asset from her estate, a private annuity trust or charitable remainder trust might be best. If her secondary goal is to pass the remaining asset to her children, then an installment sale or private annuity trust might be best. And a charitable remainder trust might be best if the secondary goal was charitable giving.

Each person’s situation is going to be slightly different based on his or her own specific needs and objectives. Mary was actually a real client. What did she do? She sold the property to a long-term investor by way of an installment sale. After receiving a 10 percent down payment that covered the expenses of the sale and the capital gains tax that would become due on the down payment, Mary carried a first mortgage of $198,000 at 7.5 percent amortized over 30 years and all due in 15 years. Mary no longer has tenant problems, repairs, property taxes, management fees, or insurance expenses. Her interest income from the asset is now approximately $14,850 per year (a 106 percent improvement), and she will still be able to leave a significant portion of the asset’s value to her children when she dies.

Mary’s choice was based primarily on her desire to restructure and improve her income stream, but her secondary goal was to provide for her children, which discounted the idea of a charitable remainder trust. And the private annuity trust option would have returned more of the principal and gain to her more quickly than she wanted, so the best choice for her needs was a straight installment sale.

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Protecting Assets

Protecting Assets

The Protecting Assets Everyone who invests money has some degree of desire to protect the asset. The desire to protect is simply another way of looking at an investor’s acceptable level of risk. As mentioned previously, there are varying degrees of acceptable risk. The aggressive wealth-builder will take chances that an asset-protection-minded person would not.

Most of the time, the asset protection person will simply opt not to sell, but sometimes a need arises to geographically relocate the investment or perhaps improve the quality of the property without expanding the investment or increasing the risk.

Many times, clients simply want different but similarly valued property in a different or “better area.” These clients have no real need to explore all the possible ways to defer the taxable gain because the shortterm goal is a lateral move of the investment. The obvious choice is to do a 1031 exchange, selling (relinquishing) one property and purchasing (replacing it with) another. However, this is also a good time for clients, including you, to consider long-term objectives.

Retirement and estate planning considerations may make a private annuity trusp more attractive than a st2aigh| 1031 exchange. With a private annuity trust you can still meet your short-term goal of selling one property, buying another, and deferring the taxes. But a private annuity trust, as a result of its characteristics, also allows planning for a guaranteed stream of retirement income and may mean huge estate tax savings because it removes the asset from your taxable estate.

A private annuity trust also protects the investment from future creditors and personal or professional lawsuit liability. But on the negative side, a private annuity trust has more formalities, requires more planning, and commits the asset/investment to an irrevocable family trust.

Whether a 1031 exchange or private annuity trust is right for the asset-protection-minded person simply depends on each individual’s set of circumstances and personal objectives.

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Building Wealth

Building Wealth

If you think that the only objective anyone ever has for investing is building wealth, then you are not old enough or have not accumulated enough assets to start trying to balance the potential growth with the acceptable risk. When you are 25 years old, you have a lifetime to make up for a high-risk investment that goes bad.

When you are 65, it would be hard to recover from that same bad investment. At a younger age, investors make financial decisions primarily based on growth and future
return, but retirement-minded investors focus on income flow and stability. Of the four main tools for selling real estate without paying taxes, only two will appeal to the investor who is aggressively trying to build wealth.

The first and easiest to understand is the tax-deferred 1031 exchange. By using a tax-deferred exchange, property investors are able to continually step up their real estate investments. You may start with a rental house that you trade up to a 4-unit building.

Then some years later you may decide to trade up to a 20-unit apartment, and so on. All of these transactions will be protected from capital gains taxes if properly done by using the provisions of section 1031 of the Internal Revenue Code (hence, the nickname “1031 exchange”). There are, of course, certain restrictions and formalities that must be followed, but for the most part, 1031 exchanges are very common in real estate transactions.

The second method, a private annuity trust, also offers the potential for building wealth. For this tool to be appropriate, however, the goals must be long term and calculated to provide a return in the future.

Placing a property into a private annuity trust removes the asset from the reach of the investor but allows the trust to invest the proceeds with a high degree of flexibility. The growth of wealth in this case is usually for retirement-oriented thinking, but the growth potential, when done properly, is hard to dispute.

The other two options, installment sales and charitable remainder trusts, are not really suitable for growthoriented investors because each locks in the proceeds from the sale, allowing little or no flexibility.

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Four Goals of Investment or Reinvestment

Four Goals of Investment or Reinvestment

The Four Goals of Investment or Reinvestment There are basically four stages of investment and reinvestment in the selling of real estate that may take place throughout a lifetime:

(1) building wealth,
(2) protecting assets,
(3) creating a stream of income, and
(4) estate planning.

Presuming a person has a normal life span and has invested well, he or she will usually have had objectives that fall into one or more of these four categories. Each stage has different levels of acceptable risk and different goals.

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Deferral Versus Elimination of Taxes

Deferral Versus Elimination of Taxes

The Deferral Versus Elimination of Taxes If you are going to sell a capital asset at a gain, you have to make a choice: you can pay the taxes, defer the taxes, or eliminate the taxes. Each has its pros and cons, so the answer is not as easy as it may appear. You don’t need a book to show you how to pay taxes, so presumably you are reading this to learn how to defer or eliminate taxes. Nevertheless, sometimes the option to just pay the taxes is a choice worth considering.

If the gain is a small one and you are at a point in your life where the goal is to simplify, the choice of just paying the taxes may be a good one. If you are like most people, however, you are looking for alternatives. Methods are available for both deferring and eliminating capital gains taxes, but each method comes at a cost and each has advantages and disadvantages.

Most of the time, the decision comes down to “doing the math,” but not always. For example, people can completely eliminate their capital gains taxes through a charitable remainder trust, but the property has to ultimately be given to the charity. Some people choose this alternative strictly for the personal financial benefits.

Others may choose this same option, not for the financial benefits, but because they like the idea of giving Uncle Sam’s money to their favorite charity. Likewise, deferral methods like 1031 exchanges and private annuity trusts accomplish the goal of deferring the taxes but have costs and disadvantages that must be taken into account. And like the example above, different people may use the same method of tax planning but for completely different reasons.

The immediate short-term objective for all of these people is to not pay capital gains taxes, but which method is best depends on each person’s specific long-term objectives.

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If It Isn’t Broken, Don’t Fix It

If It Isn’t Broken, Don’t Fix It

If It Isn’t Broken, Don’t Fix It In sum, the idea of eliminating the capital gains tax sounds great but at what real cost? It is unrealistic to think that the IRS’s concept of taxing increases in wealth is going to carve out a major exception and allow significant income from capital investments to flow to individuals tax free.

It may be a great promise in an election year, but anyone who looks past the political rhetoric will quickly see that it’s not going to happen in the real world.

Politicians may eliminate the capital gains tax as currently defined, but increase in wealth is going to be taxed in some other way. When you consider that the present method of taxing capital gains is given preferential treatment by being a flat tax at the lowest rate, as noted earlier, any alternative is likely to be a step backward.

Add to that the now-existing certainty for planning and the present ability to defer capital gains for wealth building and you start to appreciate the current capital gains tax environment.

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Capital Gains Deferral as a Wealth-Building Tool

Capital Gains Deferral as a Wealth-Building Tool

The Capital Gains Deferral as a Wealth-Building Tool Almost any form of investment must be done with after-tax dollars. The capital gain you make from real estate investing, however, is the exception. You cannot sell 100 shares of Microsoft stock in a high market and reinvest it in 100 shares of another stock without cashing out, paying the taxes due, and then buying the replacement stock with after-tax dollars.

However, in real estate you can sell (1031 exchange, explained later) an investment property and buy another using the untaxed dollars from the returns on the first investment. This ability to defer all taxes on the investment returns has made more than a few people very wealthy.

Example:
Paul is an insurance agent; he bought a triplex 10 years ago for $100,000, and its current value is $220,000. Recently, he has considered opening his own insurance office and has found a perfect office building for sale at $300,000 that he wants to buy. Paul sells his triplex under the provisions of a 1031 tax-deferred exchange and purchases the office building replacement property. He is able to fully defer any capital gains tax or recapture of depreciation. Paul operates his insurance company for 15 years and is ready to retire. He would like to move to another state and buy an income-producing investment property there. The office building’s value has grown to $500,000, and the 12-unit apartment building he would like to buy is priced at $550,000. Again, Paul uses a 1031 exchange to sell the office building, and he purchases the 12-unit apartment, completely deferring all capital gains and recapture of depreciation.

There is no limit to the number of times you can use a 1031 exchange to trade up without incurring any tax liability. The key is that current IRS regulations allow this continuing deferral on capital gains but not on any other types of increases in wealth.

The ability to defer capital gains in the now commonly known 1031 exchange was a hardfought- for right that had to been pounded out in the courts and forced upon the IRS through legislative mandate over a period of 20 to 30 years. This wealth-building tool now works extremely well, and any changes in the capital gains tax rules can only harm wealth-building tools like 1031 exchanges.

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Certainty Allows Planning

Certainty Allows Planning

The Certainty Allows Planning Another reason the current capital gains tax is good is because it permits planning. If you know that the taxable consequence of selling a capital asset is going to be the same now as it will be in the future, you are more able to achieve intelligent tax planning. Most capital assets have a built-in variable: the resale market. Real estate values have cycles just like any other investment. Anyone who has held real estate for more than ten years can tell you the market has highs and lows.

The last thing an investment needs to compound its uncertainty and risk is a variable tax environment. In one worst-case scenario, politicians could eliminate the capital gains tax to get votes, but the next administration would decide that same increase in wealth should be taxed at the (higher) ordinary income tax rates.

The last thing we need is politicians messing around with tax rates that are already the lowest they have been in a half century. Stability and certainty in an investment or business environment encourage additional investment by allowing intelligent growth planning.

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Capital Gains Taxes are Good

Capital Gains Taxes are Good

The Capital Gains Taxes are Good Because the Alternative Is Bad The idea of having the capital gains tax eliminated sounds appealing, but in reality it may not be. Remember that the focus of the IRS is to tax increases in wealth, not income. Right now, the capital gains rate set at a flat 20 percent is one of the lowest taxes available. If you had $100,000 of income in a year, your tax rate would be approximately 30 percent.

A taxable gift of $100,000 would be taxed at approximately 37 percent. A taxable estate inheritance would be taxed at approximately 37 percent. So what’s so bad about a 20 percent flat rate tax on capital gains? Naturally, zero tax on capital gains would be better, but it is unimaginable that the IRS and a constantly changing political climate in the country are going to completely eliminate the capital gains tax.

To do so would allow this obvious increase in wealth to be taxed in some other way. At least, there is some certainty now, and the increase in wealth is taxed at the lowest available tax rate. So from this perspective, the current capital gains tax is good because the alternative is sure to be less desirable.

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What are capital Gains

What are capital Gains

The What are capital Gains The IRS considers just about everything you own and use for personal purposes or for investment a capital asset. Examples it gives are your home, household furnishings, and stocks or bonds held in your personal account. It divides capital gains into three foundational taxation

categories: long-term, midterm, and short-term capital gains. If you hold an asset for more than one year before you dispose of it, your capital gain is a long-term gain. If you hold it for one year or less, your capital gain is considered a short-term gain. And although that definition came directly from the IRS, the agency also says that the longterm

capital gains rate is based on an 18-month holding period. When you sell a capital asset, the difference between the amount for which you sell it and your cost or adjusted basis is a capital gain or a capital loss. In the case of real estate investments, most people take depreciation and make improvements to the property over time so the basis of the property changes each year. In a normal property investment situation, two forces are at work creating a gain on the property

First, appreciation increases the fair market value of the property; and, second, depreciation taken on the property over the years correspondingly reduces the property’s basis and thus adds another component of taxable gain when the property is eventually sold.

What are capital Gains

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Selling Real Estate Without Paying Taxes

Selling Real Estate Without Paying Taxes

The Selling Real Estate Without Paying Taxes tax-deferral and elimination methods, discuss the pros and cons of each, and offer examples of how each method works in everyday practice. When the average person thinks of taxes, he or she usually thinks of income taxes. However, the tax system in the United States is not based on taxing income; instead, our tax system is based on taxing increases in wealth. The subtle difference in this terminology is very important, because taxing all forms of wealth increases allows the IRS to tax things other than just the earnings we take home. So in addition to income taxes, we also have taxes on gifts, interest income, debt forgiveness, capital gains, and even on death (estate taxes). All of these represent increases in wealth according to the IRS and, as such, are taxed in one manner or another.

Both income taxes and gift taxes are scaled to essentially provide that the more you make or give, the higher the percentage of taxes you pay. Likewise, estate taxes as a percentage are higher in larger estates. Taxing debt forgiveness is an odd concept but necessary in the eye of the IRS. If debt forgiveness were not taxed, companies could circumvent income taxes by simply paying wages to their employees with “loans” each month and then forgiving the debts at the end of the year. That’s a simple example of tax-planning creativity, but it makes the point that the IRS needs to focus on increases in wealth instead of merely income.

The focus of this book will be on capital gains taxes. Capital gains are actually given preferential tax treatment by the basing of the applicable tax on a flat rate. At the time of this writing, the longterm federal capital gains tax rate is 20 percent. Okay, it’s not quite that simple.

Two major revisions of the rules on capital gains taxes have been made in the last six years, and the current rates and holding periods in effect As you can see, exceptions and lower capital gains rates exist for situations where the taxpayer is in the lowest tax bracket. Also, there is certain legislative blurring of the rate lines creating the old-old capital gains rate, an old capital gains rate, and a new capital gains rate for investments
made after 2001 and held for over five years.

In a few years there will probably be a new-new capital gains rate as well, but for our purposes here, we won’t spend time on trying to analyze or predict possible
upcoming changes. The significant fact is that for the regular person in an ordinary real estate capital gain situation, the federal capital gains tax rate right now is generally 20 percent. State taxes are another matter. Each state can make its own rules for taxing capital gains.

Some states impose no state capital gains taxes, but most require that some tax liability is incurred on the sale of an appreciated property. In addition, each state has its own rules covering capital gains tax deferral. Most states mirror the federal taxation rules and
guidelines, but not all do.

The focus of this book is on federal taxation and those states, California for example, that mirror the federal rules. A state-by-state analysis is beyond the scope of this book, but I have included a list of the capital gains tax rates for the individual states in the appendix. Nevertheless, I suggest you see your local tax advisor regarding your state’s tax treatment of capital gains on the sale or exchange of property.

As previously mentioned, true income tax is scaled to tax larger incomes at higher percentage rates. Capital gains tax, however, is currently based on a flat 20 percent rate. This is the lowest capital gains rate in almost 40 years. And unlike other types of taxes, capital gains taxes can be deferred indefinitely and, in some situations, eliminated completely. In the next section, I look at the types of wealth increases categorized as capital gains.

Figure;


Capital Gains Tax Rates and Holding Periods


Date Property Sold                     Tax Rate                                       Required Holding Period



Before May 7, 1997                      28 percent                                      1 year +


On or after May 7, 1997                20 percent or 10 percent if             1 year +
And before July 29, 1997               taxpayer is in 15 percent
                                                      income tax bracket

On or after July 29, 1997               20 percent or 10 percent                18 months +
                                                      if taxpayer is in 15 percent
                                                      income tax bracket


Assets acquired on or                     18 percent or 8 percent                 5 years +
                                                       if taxpayer is in 15 percent
                                                      or less income tax bracket
after January 1, 2001

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How to Sell a Home in Conway, Arkansas?

How to Sell a Home in Conway, Arkansas?

Conway is located in Central Arkansas, 30 miles north of Little Rock on Interstate-40. Other major highways serving Conway are US highways 64 & 65. It is the County seat of Faulkner County.

This central location makes Conway a major distribution and service center for the Central Arkansas population. Within a 500 mile radius there are 17 states and 24 metropolitan areas which include over a third of the nation's population.

The Conway area has four distinct seasons: Mild winters, delightful springs, balmy summers and cool falls. Summer temperatures from June until August average 82 degrees. Water skiing, swimming and baseball season usually begin in May and last well into September.

Many people choose the spring or summer months to move in Conway, Arkansas. So the strategy for selling home can start heating up as early as February. This is most true with families whose children are living with them. The reason for this is that so they can move during the summer vacation and be settled before the new school year starts. The market can still be busy into the fall. But traditionally November and December have been the slow months. The holidays are the primary reasons.

In order for you to market your house to possible clients, you must prepare your house for selling. There are some easy, quick and low cost stuff you can do to increase your chances of getting your asking price and selling fast. When people make a venture commitment as huge as a house, they can be choosy, and will be searching for perfection. You can be practical and make it an enjoyable experience by being ready.

Here are some tips to help you in selling a home in Conway, Arkansas:
•  Being sure that there is no chipped paint can make a big difference too. If your house was built before 1979, there is a new federal law that requires the broker to complete a lead base paint disclosure statement. Be positive in this area as well. Have the inspection done earlier, it looks good to the prospective buyer, and it saves time.

•  Please clean your house before you let somebody see it. It is simple and free! And it can make all the difference in the world. Clean your windows as much as possible. The bathroom is another spot where people seem to make judgments, so make sure your bathrooms are spick and span! And very pristine!

•  Set an atmosphere. Researches have shown that soothing smells in the house can help make a house seem more like a home. People like to be reminded of good memories. You can do it by playing some soft background music and light candles if you are present when the buyers are viewing your house. This will make your place seem cozy and inviting. This will definitely attract your buyer!

But of course when you are planning to sell your home in Conway, Arkansas, there will be of course many factors that can influence your selling techniques.

Here are some of those tips:

1.  Price the property between wholesale and retail.

2.  Be willing to consider offers based on government conditions which give many buyers a head set up on the capability to pay for a home.

3.  You should allow the property to be shown with or without a scheduled time.  It will be improper if you do not let your prospective client have a glimpse of your house.

4.  Please move out whenever a potential buyer, accompanied by your realtor, wants to see the house.

5.  Remove any obstacle to a free flow of traffic in your property. Items bulky or extra furniture, house plants that stick into traffic ways, toys or clothes not put away, or beds not made slow down traffic and make rooms look smaller and darker.

6.  Put away your dogs out of your property when a prospective buyer is present in your house.

7.  Look at the front of your house.  Size it up objectively and critically. If you are confident enough that your house is beautiful in and out, then also be confident to have it sold in just a matter of days.

8.  Make any and all recommended improvements with an eye toward neutral marketing.

9.  Be willing to consider any offer at anytime.  Remember, you are the final judge of what is accepted and what is not!

At this instance, if you are already had a buyer who makes an offer and you have accepted it, you both have firm responsibilities you must live up to. After you had agreed with each other’s proposition, it is high time that you talk about home legal issues which are really very important.

There are two standard contingencies that ensure both parties are covered. There is the financing contingency which makes the deal reliant upon the buyer’s ability to get a loan. If they cannot, the seller is free to open the house back up to the market. And then there is an inspection contingency which ensures the buyer a certified inspection of the property to their satisfaction. Once a buyer has put down a deposit, they forfeit it if they back out of the deal for any reason not predetermined in the contract.

And remember, first impressions are not just for people, they are just as important when you are trying to sell your house. So, make a good impression to your buyer as necessary as possible!!

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Sizzling Hot Selling Home tips by Owner to Go By

Sizzling Hot Selling Home tips by Owner to Go By

People use their home as their investment. They build homes and sell it to other people to have a budget in building up a new home. It is very sad on their part if they will sell their houses after so many years of spending their lives in them.

But some Americans even sell their homes within two weeks. If you plan to sell your home, there are still some considerations that must prevail because, it will be a two way process, the transaction will be between you and your buyer.

Here are some of the tested home selling tips that will serve as your guide.

Home selling tip #1: Prepare your home before putting up a "for sale" sign.
Attract buyers and sell your own home with low cost cosmetic steps. Cut the grass, clean up the outside, paint drab walls and remove inside clutter. Because most people buy homes that appear clean, solid and well maintained.

Home selling tip #2: Set your price right and sell your own home fast.
Find the true value of your home by comparing it to similar homes recently sold in your neighborhood.

Home selling tip #3: Good Advertising sells Homes.
In any kind of product, a quality advertisement helps a lot in grabbing buyers’ attention. New low cost web sites will put multiple pictures of your house on the Internet.

Home selling tip #4: Sell your own home with an open house.
Kick off your home selling campaign with an open house. Invite all the neighbors for blocks around your house. Show them your home's best points and tell them your price. This is because neighbors will serve as best promoters when it comes to their relatives, friends and other people related to them.

Now, here are also some Home selling tips for negotiating with buyers.
•  Always make a counter offer when selling your own home. The buyer who offers less than your asking price can be encouraged to pay more or agree to other terms like accepting the house without repairs.

•  The home selling process differs from state to state, but there are some important steps that most home sellers should take before listing a house with an agent or selling it for sale by owner. Every bit of prep work you do helps you get the most return from your investment.

•  To secure your investments, get pre approved for a home loan. This is to help you avoid ending up renting a house after you sold yours.

•  Check Your Mortgage Payoff

•  Determine How Much Your House Is Worth. It is a task on your part to determine your home’s fair market value; you can seek for the help of a real estate agent.

•  Estimate Your Costs to Sell. Real estate agents deal with transactions every day and can give you a very close estimate of seller closing costs.

•  Estimate Costs to Buy a New Home. Calculate moving expenses, loan costs, down payment, home inspections, title work and title policy, paying for a new hazard insurance policy--all expenses related to buying a home. Your lender should give you a disclosure of estimated costs when you apply for loan pre-approval.

•  Calculate Your Estimated Proceeds. It is necessary for you to estimate the proceeds of your money for you to assess the needed changes if any to the price that your going to sell your house.

•  Make Necessary Repairs. Buyers are very particular with the quality of the products. Particularly when it comes to the home that they are going to purchase, because it is where they will spend their everyday life. Meticulous customers must also be taken into consideration. Usually, first impression lasts for these kinds of people, so on the first time they will enter your home, everything must be fixed properly.

•  Get the House Ready to Show. After all the preparations you made. This is no the exact time when a buyer will be visiting your home so be ready for all their possible critics if ever.

•  Get Psyched Up to Let People In. Make the house accessible. That means it should always be ready to show. Many agents won't bother showing a house that takes 24 hours to get into.

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Some Tips in Selling Homes

Some Tips in Selling Homes

Selling homes can bring lots of fun and excitement but it also takes hard work.

It requires fixing and all those small problems that you have not bothered to look into for many years. You also need to decide if you are going to sell it all by your self or contact a professional real estate broker. The transaction will take time, depending on the local real estate market.

Some mental and emotional preparation is needed too. Are you looking forward to moving up to a new dream house or facing the uncertainty of a major move across the country? This will make you feel so hard leaving the memories behind or keen to start a new life without the home you have lived in.

The turbulent feelings that you will be facing should be replaced by a plenty of practical matters that need more attention.

There are many questions that will be considered in deciding if your home will caught up in the selling market. A for sale home should be visually appealing and in good condition that will attract potential buyers driving down the street.

It should be attractive to an outsider’s eyes. This check list will help you decide if it passes the standard of an outsider’s eyes.

•  Are the lawn and shrubs well maintained?
•  Are there cracks in the foundation or walkways?
•  Does the driveway need resurfacing?
•  Are the gutter, chimney (if the for sale home has it) and walls in good condition?
•  Do the window casing, shutters, siding or doors need painting?
•  Are garbage and debris stored out of sight?
•  Are lawn mowers and hoses properly stored?

It is important to clean the mess inside, this will affect the transaction. Buyers prefer clean and comfortable home. It is better to touch up the interior part of your home. Like put a fresh coat of paint in the most used areas. This will clean as well as brighten up the rooms.

Wash the walls where paints are not appropriate (for example wall paper, paneling and tiles). Wash all floor and bathrooms tiles. Clean or better yet shampoo dirty carpets. Get rid of clutter. Clean out all closets, basement and attic. Use self storage if necessary. Replacing air filters and put some fresh plants that will help keep the dust down.

It is common that sellers want to get top dollar for their home, but consider that it will scare off potential buyers. This may also cause the property to languish on the market for many months. And reducing price later may lead buyers to wonder if there is something wrong with the home. Here are some factors to consider in putting in the right price for your home:

•  The location
•  Economic conditions
•  Supply and demand in the local housing market
•  Seasonal influences
•  Local schools
•  Average home prices in the neighborhood
•  Home’s extras (like pool, fireplace, central air etc)

In determining the value of the home, you probably will want the advice of an estate agent or appraiser. Agents can prepare a market analysis for you, showing the recent selling prices of three neighborhood properties comparable to your own. They can also help you adjust for the unique features of the home you’re selling.

If the seller has less of information around home selling market, it’s better to contact a realtor. In finding realtor, find someone that you feel comfortable with.

First ask your friends and acquaintances for any recommendations, still the final decision and choice should be based on your needs. Realtor should show you research to support any recommendations, this includes information about recent sales, current listings and recent expired listing in your neighborhood.

The realtor should be more knowledgeable in the area that the home located. And will get better co- operation from other agents. You should ask references from the realtor, he or she should be willing to give you names of previous clients. Look for a realtor who can tells you what he or she knows from experience in the market, and not what they think you want to hear.

This home selling tips can help seller stop headaches about selling his or her home. All these can be a source of problem and sellers should be serious about it. Do not make yourself regret everything for not doing the right thing.

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Naples: a Paradise within Reach

Naples: a Paradise within Reach

The paradise of sun Naples, Florida on the Gulf of Mexico is harmoniously blended of shore and nature with the multinational and artistic center, regardless of its metropolitan population and countless housing developments. This city is a great place to live in and to visit.

With over 35 golf courses, Naples has the highest ratio of golf courses to golfers in the USA. Water lovers discover perfect white beaches of supreme tropical beauty, complete with splendid shells and full array of sea sports. Naples is known for world class shopping, dining and abundant, challenging golf courses.

Naples grew up around seashore and a boat pier, which served as the town's lifeline in the 1880s. Well-to-do northerners built homes around the pier and in the neighborhood today known as Old Naples. With first the extension of a railroad to Naples in 1926, and the completion of the Tamiami Trail (Highway 41) two years later, the town grew eastward, but the heart remained where the first shell-paved roads once ran.

The Lutgert Companies and Premier Properties present Naples' and Southwest Florida's best real estate. From Marco Island north along the Gulf Coast to Port Royal, Old Naples, Park Shore, Pelican Bay, Bonita Bay and Estero, the area offers choice opportunities for high rise, single family home, villa or townhouse living. If you prefer to live in a beautiful golf course community, along the beach or bay or in a traditional neighborhood, it can be found in Naples.

There are many real state agents that can help the buyer find their choice of home. It's important to choose someone with a strong knowledge of the area. They are called as the Naples Finest Real State Professionals. These elite agents offer a willingness to invest an inordinate amount of time and energy to ensure that you find that prefect dream home you desire. Naples Real estate agents can be found on about in any high street. They usually have ads posted up in their windows, displaying the various properties they have to offer. Some real estate agents specialize in specific types of houses, and others are more general.

One of the strategies of the Naples real state agents for the buyer is to put the homes that are for sale to Multiple Listing Service (MLS), an online list of all of different homes for sale that nearly all other agents have access to. The MLS usually garners the bets result because it reaches such a great number of agents and it also include information about the home, like the number of rooms, square foot area, photos and other information that makes the home unique and interesting.

The Harris- Peppe Team (Chip Harris and Michele Peppe) rank first in the real state agent ranking nationally, they were awarded Top Listing and Top Sales Agent at the prestigious Coldwell Banker Previews International office in Olde Naples in 2003, 2004 and 2005. They are the number one source in real state information in Naples, Florida. It’s been almost 50 years of knowledge and experience in living and selling. The Harris- Peppe Team especially loves showing property by boat.

There are one group who provide Naples, Florida the information and resources to guide homeowners and homebuyers through the process of buying and selling house, condo, and other Naples realty property, they are called HomeGain. They help people to find top Naples real state broker and agents, get the values of your wanted Naples home and a comparative market analysis. HomeGain with the help of the U.S. Census Bureau track and make a survey that will give people (especially buyers) know the information inside Naples, Florida.

According to the U.S. Census Bureau the total housing units that have been constructed in Naples is about 40, 785. There are about 56%, who own the houses. The average price of one housing unit is about $269, $338 and the rental is about $700 per month. The available housing units are about 27% and for rentals is 17%.

There are also three known real state offices that can be contacted about the available home in Naples, Florida; the Cameron Real State Services, John R. Woods Realtors and Mason Realty Inc. They supply information in almost all the agents that deals in selling and buying around Naples, Florida.

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Home Buying Surnames, Who is Buying Homes? The Demographics of Potential Buyers

Home Buying Surnames, Who is Buying Homes? The Demographics of Potential Buyers

The land of opportunity, the United States of America. Many immigrants have made the trek to this country, hoping for the American dream. The diversity of race has been a mishmash of sorts with each contented to have a peaceful environment working hand in hand for a better standard of living. Everyone is working hard trying to better their lives and one of their goals is to have a house of their own to call home.

In a survey done about the surnames of top home buyers, anyone could see that
Hispanic and Asian surnames have ranked high. In 2005, eight out of ten home buyers in California were either Asian or Hispanic as reflecting on the surnames of those who bought houses.

In Florida on the same year, the surname Rodriguez was ranked third in the top ten surnames that bought houses. Although ranked two notches below the top, the surname Rodriguez had a higher average on the prices of the house they bought.

More studies from before has also shown that many immigrants lists owning a house, home and properties as their top priority. Many of them work hard to save up to one day owning a home.  Roughly from 60 to 50 percent of them wants a roof over their head that they have a deed on.

Real estate agents have seen the buying force and have capitalized on this. There is really nothing new with this, this nation was built on the backs of many immigrants who have worked hard to build it. Many off them have done the races and treks to new found lands to claim their own properties. They braved the wilds and worked hard to make their homes. Having a house or property is something anyone can be greatly proud of.

Now it is the influx of a new kind of immigrants. There may be no undiscovered or chartered lands to claim anymore, no more wild races to run, but there is the hardships of competition and the endurance of daily sacrifice to lay claim to a property. Many immigrants have to work doubly hard to enhance their quality of life and buying a home of their own is their reward.

Real estate agents have felt the sudden change in the trends and this is brought upon by the influences of their culture. Non-white surnames regularly calls for a different approach when selling homes. Real estate agents study their culture and their way of thinking when purchasing and choosing a home to buy.

The Hispanics for example brings great pride and self-worth when deciding upon a house. They want a home that can reflect on their characters. They want their hard work to reflect on the house they buy. This gives them a sense of pride in themselves.

Many of the Hispanics look highly upon people who have done all he could to get a house of their own. Home ownership commands respect. This shows you are a made person and is highly responsible.

Asians on the other hand choose homes that can be quite practical and very accommodating to their needs. Also, age-old traditions such as feng-shui can come into play. Many of the Asians would temporarily leave other priorities on the backseat and everyone in the family chips in to make their dreams and goals come true. Asians are known to be very hardworking and can give up many things and do sacrifices to achieve their goals.

Many real estate agents have created special divisions already who can cater to the needs of the Nguyen’s, the Chan’s and the Garcia’s. These divisions are highly trained on the cultures and mindsets of non-white surnames in the market for a home.

Also, the different ethnic groups are represented well in the market. Studies show that Hispanics and Asians are more likely to believe one of their own. This is because they know what the other has gone through and they respect each other for that.

Reports have shown that the continual growth of immigrant sounding surnames will continue to grow in years. Aside from the high number of houses that are being bought by immigrants, they also show that they are getting prime properties. This is a market that is hard to ignore.

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Some Tips on Buying A Property In Spain

Some Tips on Buying A Property In Spain

It has become a trend for foreigners to buy properties in Spain. The reason maybe for such popularity is that, the country offers a delightful and excellent climate conducive for healthful and restful living. Aside from that, there has been a great effort by the local authorities to lure more foreign tourists and residents.

It was found out that tourism is the biggest contributor to their booming economy. If you are planning to buy a property in Spain, then this the best time because the interest rates in Europe is practically low. So do not waste your time. You should grab immediately the opportunity. I assure you, there will be no regrets.

With the great culture and the rich heritage of Spain, you will never run out of places to go, people to meet and activities to do. Spanish people have shown their great love for the arts and their sprawling fields and countries have been a perfect choice for a romantic vacation or a retirement place.

Many tourists have fallen in love with Spain, and why not. A lot about history can be found in Spain. They have traveled far and wide even before the others and have great influences all over the world.  There are many museums you can go to and so many artifacts to see, plus there is so much to say about the food.

So, I wouldn’t blame anyone for considering buying a property in Spain.  If you are indeed considering or actually buying a property in Spain, then some congratulations are in order. You are making a decision which will change your life in the future. Life changing decisions and huge purchases such as buying a property in Spain needs a lot of consulting and thinking before being acted upon.

If you are really interested in buying a property in Spain, you may consult the many real estate agents from Spain or check out websites that are dedicated to properties for sell in Spain. But before you do this, you are supposed to weigh things, plan in order to avoid the same fate some foreigners have experienced in the past years, which had painful stories regarding their disadvantageous transactions and no clear idea regarding the property they are going to buy in Spain. We will be dealing with the guidelines and tips on how to purchase a property in a very fair and satisfactory deal.

The following are the tips and guidelines in buying a property in Spain:
1. Fix your budget for the operation.
2. Before making a decision, be sure to have an ocular visit of the property at least twice.
3. Know what amenities are installed to the property.
4. Consult an architect or a contractor to check out the building structure.
5. Confer with residents around your prospective property.
7. Take some pictures, in case you are in doubt of the property.
8. Consult your lawyer to examine the ownership of the property before signing a contract.
9. Learn about the easy access of the property to the center of the town or city.
10. Have a licensed lawyer and a notary.
11. Be a Spanish literate.
12. What is it that you really want?
13. Have a financial adviser.
14. Have a trusted and reputable agent of property.
15. Study your situation (your employment status, financial situation, your family’s decision and etc.)

After you have weighed everything down and have finally decided to buy a property in Spain be sure that you are not only financially ready, but physically and emotionally set as well. Also, your family’s well-being and life situations must be taken under great consideration.

Also, try to study about the culture of Spain, many foreigners tend to forget it and they stick out like a sore thumb. “When in Spain, Do what the Spaniards do.” Try also to learn about their laws, this will save you a lot of trouble in the end.

After all that, you can go on and start living a wonderful laidback relaxing life in good old Spain. Sit back, relax and enjoy your life as a Spanish resident with a good glass of wine on your hand and the rolling hills of Spain as your front yard.

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A Simple Guide to Buying Property in France

A Simple Guide to Buying Property in France

Buying a property in France is never an easy undertaking especially to those who are first time buyers. Lots of things have to be considered before arriving at a concrete decision as to what is the property that best suit ones needs.

Basically, the process of buying a property in France is quite straight forward, that is, if you have a clear understanding of the process involved. Always the key to a successful purchase is research and a little patience. It is imperative that you know the basic information in order to guide you in your decision.

Initial Agreement
Purchase or sale of any property raises many questions and even fear especially when you buy overseas. So just like in any other types of sales, an initial agreement is important as it sets the sale’s terms and conditions. It is a provisional or a preliminary contract that is legally binding upon the buyer and the vendor. A professional like a notary should draft this.

There are basically three types of initial contract depending on who is acting on your behalf. That is why it is highly recommended that you do a thorough research on these types before buying. And whatever type you choose, you should keep in mind that this is legally binding upon you. Make sure that you spend time analyzing the terms in details and never hesitate to ask questions if there are conditions that are not clear to you.

The goal of this contract is to concretize the agreement between the vendor and the purchaser and allow the notary to prepare the final sale of deed, so there is no need for you to pay any amount yet before signing.

Signature of Final Sale Contract
The true transfer of property takes place only at the time of the signature of the Title Deeds or also known as Acte Authentique at the office of the notary. The signing transpires once the notaire has carried out the relevant checks and searches and all the conditions are met.

If you cannot attend the contract signing, a proxy can sign but take note that on the power of attorney, your signature should appear on it and should be legalized by the French Consulate or a solicitor or a notary public in your originating country.

Planning Permissions
This should be obtained for any new construction or for refurbishing an existing building. An application for a representative can file planning permission provided a proxy is signed in that regard. Your representative can be the architect who drew up the plan, a solicitor, or the builder.

A planning permission application should include the identification details of the applicant, as well as the land on which there are plans to erect a building, the plot of land’s location map, and the layout plans.

Tax
Taxes and costs are always associated with buying property in France. And these should be considered when planning your investment. Usually there are high taxes for a start, which include income, property, residential taxes, wealth and capital gains. Keep in mind that tax in France is rather high and there are penalties for late payers, so you should check your French tax return for the deadline.

French Inheritance Law
It is important that you know the inheritance law in France because it may be different from your originating country. If you have a property in France, French Succession Law will govern this. Children automatically inherit part of their parents’ estate but there is a limit to how much may be left by Will to non-blood relatives.

These are just a few of the information that you should know to guide you in buying property in France. Before you purchase one, be sure what you are buying.

Take your time and consider all the factors and gather all the information you need that can help you in your decision-making. Remember that as a buyer, you should take responsibility for the condition of the items you purchase so you should inspect them before you purchase.

Seeking legal advice is the best thing that you can do in order to know all the details that come with buying a property in France. Impulsive buying can never do you any good, so be in total control.

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Things to Consider when Selling a Home in Florida

Things to Consider when Selling a Home in Florida

The choice and decision of selling your house is never made on the spur of a moment. It may have impel because of your desire to live in a more beautiful home, the necessity to move for a new job or it could be a need to get a handle on out-of-control costs.

Florida is not called the sunshine state for nothing. The weather is one of the plethoras of reasons why many people flock to Florida for either a vacation or for settling down. That is why the real estate market of Florida is a booming industry. Many have decided to sell their house because they can come up with a good profit. While it is easier said than done, many Florida homeowners have lost a great deal because they don’t know what preparations to do before selling their home in Florida.

Nonetheless, whatever your reason is for making up your mind, you have got a lot of work that waits ahead of you, before you can really say that you are ready to really sell your house on the market, if you wish to get the best possible price for your property.

If you are planning of selling your home, chances are you are caught up in a bunch of mixed emotions. You may be looking forward to moving up to a new home in Florida or facing the vagueness of a major move across other country. Or probably you may be reluctant to leave your memories behind or eager to start new and exciting adventures to your new home.

You have to ensure that when selling your home it must be on the best possible condition. Bear this in mind; you have to consider that when you are in a soft market you really have a lot of competitors. You must do something about it to make your house stand out.

You should take care of any repairs that a buyer might be concerned about before putting the house on the market. But if you do not have that enough money to do expensive repairs such as the roof, carpeting, ceiling, floor, etc, then it is necessary for you to provide an allowance that will cover the cost of these items.

In addition, most buyers also require an inspection at time of contract. These are the possible benefits if you will have a home inspection before putting the house on the market:

•  You will be able to know what repairs will be needed and can still have an ample time to fix them.

•  It will help in processing the contract faster which means that you can be able to receive your money earlier. Don’t worry because home inspections are not that pricey because it could actually make you more money. Usually, it rates at about 10 cents per square foot.

Some of the other important things to be considered in selling house are the following:

Pricing your home right is the key factor in selling it in a reasonable amount of time. Statistics shows that owners, who usually do over-pricing in their properties, are actually loosing more money than if they were only to price it with accurate and reasonable prices.

Setting a price too high will make your home undesirable to buyers. Pricing it too low may, in fact, deter buyers who may wonder about what's wrong with it.

Over-priced houses normally stay on the market longer then those that are priced competitively. This usually happens on the home owners that want to take advantage over some buyers, so just beware of them. Now is the time to do your research.

Making your house as accessible as it could is also a big help for you. The main reason for this is that, you may never know when the right buyer may come along and pass by your home.

The tendency and mindset will be, if potential buyers can’t get in then your home will not be sold. Having your home on a lock box system can make it much easier to get into as well as a lot less inconvenient than having to chase down keys. But if you are concerned about valuables, such as your jewelry, money, etc., then better store them in a safety deposit box.

In Florida, there are already some real estate industries that are offering professionals that show a lot of expertise to this kind of industry and positioned to stay ahead of the market curve. These real estate industries ensure that the public are well informed about the fact that your home is for sale. They also use some traditional and innovative advertising and marketing techniques when it comes to catching the attention of some potential buyers.

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Buying Your Dream House in Denver

Buying Your Dream House in Denver

Looking forward to buying a new home? How exciting! Buying a home should be a fun adventure but it can be confusing at times when there are lots of options to choose from and decisions to be made.

Denver, the “Gateway to the Rocky Mountains,” the capital of Colorado, the state’s centre of business and government and the largest city in the state has a rich and diverse atmosphere with a vibrant downtown. Furthermore, Denver is also near to some of the best school districts in the nation as well as some of the top university in the country. It a home for everybody from the city. It has a great combination of entertainment, education and great people.

Denver has a semi-arid climate characterized by dry snowy winters, wet springs, low-humidity summers, and enjoyable falls. While it is located on the Great Plains, the weather is greatly influenced by the closeness of the Rocky Mountains to the west. Due to the city’s large geographical boundaries, Denver is divided into seventy-nine residential districts offering a variety of housing options with single family homes and condominiums.

That’s why tourism is still one of the biggest components of Colorado’s economy, and Denver offers easy access to some of the premier snow and golf vacation resorts in the country. Diversifying the economy with technology caused a housing boom in the late 1990s. With the tech bust, housing has slowed, but it could well be taking a short breather.

If you are looking for a home in Denver, the Buyer’s Resource Team is prepared to represent your Denver real estate interests whether you are looking for sale.

There are many factors to consider when looking for a home:
•  Types of Denver homes - There are many different types of homes: single family, condominium, townhouse, and duplex. Additionally, the type of Denver home you select may impact your buying power.

•  New or existing Denver home - Consider whether you want to move into a new Denver home or an existing home. In general, new Denver homes are more costly than existing homes. However, the condition of an existing Denver home can significantly increase your maintenance requirements.

•  Quality of Denver home - Examine the condition of the home. Carefully inspect the structure, interior and exterior of the house for defects. The additional renovation costs may add up over time and exceed your maintenance estimates. Will the house need a lot of repairs? How old are the appliances? The purchase of the Denver home is one step, but the renovations and repairs are added costs that need to be considered. Would you prefer to purchase a newer, costlier Denver home or would you prefer to invest additional time and money into renovations and repairs for an older, less expensive home.

•  Location - Would you rather live in the city, in country, or the suburbs? Do you want to be near parks or the library? What about a shopping mall? Is it important for you to be near major highways or public transportation? Get a feel for the surrounding area by exploring the Denver neighborhood and talking to residents.

•  Crime rate - Look into the safety of the Denver neighborhood, does the Denver neighborhood have a high crime rate? Has there been an increase in crimes committed in the area? If so, how will this influence the future Denver home value of your home?

•  School system - The quality of the school system in a particular area is not only important to families with children but can influence the Denver home value of your home. We should always keep in mind that quality education is a very essential. Giving our children the best schools they can belong can help them inspire to their studies.

•  Economic stability of area - The economic growth and stability of the area surrounding a Denver home can influence its future Denver home value.

Homes with a pleasant view of the horizon often sell at a premium above similar homes without the view. However, if a view is important to you, buy it mostly for your own pleasure and not as an investment. Though you may place a considerable dollar value on the view, future buyers may not be so like-minded. It may take you longer to find a buyer when it comes to reselling the house. Or you may end up dropping your price to more nearly match other sales prices in the neighborhood.

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Some Great Tidbits and Nuggets on Buying and Selling Homes

Some Great Tidbits and Nuggets on Buying and Selling Homes

There are particular ways and standards set for you to progress when purchasing a home. It varies depending on the real estate laws and customs where you live. But do not be frustrated because the success may not be achieved all at one hand and cannot be accomplished in the same order in every location.

It adds confidence on your part if you go about on a home buying journey when you understand the necessary things that you must do and the person who are involved in the transaction.

These are the 5 helpful steps for you to follow:

Step 1.  Get Your Finances in Order
Your credit reports are an ongoing look at how you manage your finances. You must know exactly what your credit reports say about your financial history before you apply for a mortgage, because the reports play an important role in the mortgage approval process and in determining the interest rate and other loan terms that a lender offers you.

If you haven't looked at your credit reports yet, you might be surprised at their contents, because errors are very common on this matter.

Step 2.  Get Familiar with the Mortgage Industry
Finding the right loan and lender is crucial to your home buying success. It's up to you to determine which lender is best for your needs, and it's always a good idea to have at least a bit of background about the loan process before you talked to a lender.

Step 3.  Get Pre-Approved for a Mortgage
Do you know how much house you can afford? Probably not, unless you've talked with a lender.

Pre-approval helps you in other ways. Consider this scenario. A home seller gets two similar offers. One is accompanied by a letter from the buyer's bank that states she is pre-approved for a mortgage in the amount of the offer. The other has no supporting documents. Which offer do you think the seller will consider first?

Step 4. Determine Your Wants and Needs
Buying a home isn't as difficult as you might think, even if you're short on funds, but the process will go a lot smoother if you get familiar with your real estate market and narrow down your wants and needs before you start looking at houses.

Step 5. Learn to Work with Real Estate Agents
Real estate agents represent buyers, sellers, or both--and in some states they can work as neutral facilitators for either party. It's essential to understand agent duties and loyalties before you make that first phone call.

On the contrary, here are some pointers for you for selling your homes. The most important decision you will make in the sale of your home is the Realtor you choose. Some points to consider:

1.  Find someone you feel comfortable with.
If you don’t feel you can ask questions or go to your Realtor, you have the wrong Realtor.

2.  Your Realtor should show you research to back up any recommendations.
This includes information about recent sales, current listings and recent expired listings in your neighborhood.

3.  Choose a local Realtor.
He or she will know your area better than an outsider, will be seen as a source for people looking to relocate in your neighborhood, and will get better co-operation from other agents. It is likely that any amount you might save by having a friend or relative from outside the area serve as your Realtor will be lost in their lack of knowledge about the very specific local market.

4.  Ask for references from the Realtor.
He or she should be willing to give you names of previous clients.

5.  Ask your friends and acquaintances for recommendations, but make your final choice based on your needs.

6.  Ask the Realtor to show you what will be done to market your home.
Consider the office and company support available to him or her as well as the initiative and professionalism shown by the individual.

7.  Look for a Realtor who tells you what he or she knows from experience in the market, and not what they think you want to hear. With this simple steps to follow, you can truly get your moneys worth whether your buying or selling a home.

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