Real Estate Information Center

You have heard the horror stories. A friend buys a home that is now literally crumbling around her. Somebody took shortcuts, and her home was not inspected before she bought it. Now she is stuck and can not do anything about it. A home inspection before the sale would have made the deal honest and prevented headaches and heartache later for this friend and concerned family members.

These days it is tempting to cut corners, usually with the idea of saving money. However, a home inspection is a worthwhile investment. If you are planning to sell a home, an inspection can identify problems in the making and suggest preventive measures that might help avoid costly future repairs. A home inspection gives you the opportunity to make any necessary repairs now that will put the house in better selling condition. In the real estate market today, having your home pre-inspected can be a great selling point.

Plus, you’ll have the satisfaction of knowing you are doing the right thing for the people who will be buying the home. It means a lot for them to know they can count on their new home to be a place they are proud to live in with few hassles. It also protects you from possible problems.

Continue reading ‘If You Are Selling a Home – A Home Inspection Helps Seal the Deal’ »

Financial Planners often focus on developing tax-free cash flow streams in order to manage taxes during retirement. While many mention the Roth IRA, few talk about the benefits you can receive by downsizing your home and moving into a lower priced one. How can one get tax-free income from downsizing? If you have met certain requirements, up to $500,000 of the gain you realize on the sale of your current residence can be tax-free. The IRS suggests that you keep the following tips in mind when contemplating a home sale:

1. You and your spouse each area allowed a $250,000 capital gains exclusion when you sell your home.

2. To qualify for this exclusion, you must have lived in the home at least two out of the last five years.

3. You must have used the home as your main residence.

4. If your capital gain does not exceed your exclusion, you do not need to report any gain on your tax return.

5. If your capital gain exceeds your exclusion, you then must file the capital gain on Schedule D of your 1040 return. You will only be taxed on the gain that exceeds your exclusion. Currently, the maximum tax for long term capital gains is 15%.

Continue reading ‘Seven Things to Know Before Selling Your Home’ »

Basic rule in real estate is that all properties are unique and no two transactions are alike. Whether you are a first time home buyer or a repeat, it makes sense to obtain a service and to work with an experienced broker or agent who knows the community, has seen numerous homes for sale, knows local values and has spent years negotiating property transactions.

–Search. The best place to find a local agent is the internet. The others are a local builder association, open houses, local advertising, referrals from other agents, recommendations from neighbors, and suggestions from lenders, attorneys, financial planners, and past clients.

–Interview. Talk with many agents to get a personal “feel” before selecting one to work with. A good agent you eventually chosen to work with could be one of your most valuable resources. The interviewing process will help you evaluate the agent’s ethical stance and trustworthiness issues as well as his or her competency. Agents should have a thorough knowledge of the property market in their communities, familiar with local zoning and tax laws.

Continue reading ‘Choosing a Real Estate Agent’ »

Once you have learned all the scripts and persuasion techniques and committed them to memory, you still have one more thing to do. That’s practice! You need to practice your prospecting techniques over and over again until you know the material backwards and forwards. It’s best to practice by sitting in front of a mirror so you can watch yourself. Do you hesitate, do you move around a lot, are your confident and so on? When you feel confident that you know the material and how you are going to present it, practice on a spouse or friend and ask for feedback.

Remember, when you make a call or presentation to a potential seller, you are basically performing and will be judged based upon that performance. The old saying that “practice makes perfect” is especially applicable to the real estate business. The more you practice, the better you’ll be. The better you are, the less scripted you will appear.

Continue reading ‘Practice Makes Perfect’ »

There are many ways available today to get money to deal with your specific needs. Payday loan is an option to get money in your bank account in not more than few hours. But, these types of loans come with a lot of interest which is the reason why some people don’t like this particular option. Also, it is not possible to use this option if you need a lot of money. That’s exactly the situation when you can actually make use of an option, called “sell and rent back” your home.

What is sell and rent back?

Although lots of people now use this option and its widespread use have helped this industry to grow in an amazing way but there are people who still no nothing about it. If you are also one of those persons, it is enough to know that it is an option where you sell your home to an investor and start living as a tenant in the same home. What it means it that you get the money you need without saying goodbye to your home sweet home.

Continue reading ‘Learn Why and When You Must Consider the Option of Sell and Rent Back’ »

Finding a renter in Boise is easier than you think. Many property owners try to do their own management and I do not recommend that. From my own personal experience, each time I have directly managed a property that I owned, I was taken advantage of by the tenants. A good property manager does several things to protect the property owner from being taken advantage of, and is something you should consider for the following reasons.

A good property manager will screen prospective renters and filter them according to rent history, background history and credit score. Keep in mind that each of those reports will cost money but may be worth it when placing someone in a real estate investment you own. The reason that the property manager will look into the rent history of the renter is to establish a consistent record of payment of rent, and maintaining the property. If a renter doesn’t maintain the lawn or keep the house up as they should, that is important information for a property owner to have. The background history of an applicant is important because if they have a history of vandalism or some kinds of violent crime, the property owner has the right to decline their application. The credit score comes into play just as a character validation. If the applicant has the history of keeping up their bills their credit report will indicate that.

Continue reading ‘What Can I Expect From a Good Property Manager?’ »

Did you know that to rent a 4′ x 6′ floor mat costs about $5.00 per week or about $260.00 annually. Most floor mat rental companies require a three year contract to lease their mats. Under this scenario the cost over a three year contract can be well over $700.00. The unfortunate fact is that most companies that lease or rent their floor mats use more than one mat, so the financial impact is usually much greater. Add the following fees and the real expense for floor mats starts to snowball:
- Bogus “delivery fees” (Seriously, if I pick the mat up will these be waived?)
- Cleaning charges (If they don’t clean the floor mats, will these also be waived? What am I paying for?)
- Fuel surcharges (Again, will these charges be waived if I decline delivery and cleaning?)
- Environmental Charges (What’s this for – global warming?)

When faced with the option of either purchasing or renting your floor mats the following question is often posed, “Who will clean the mats if I purchase them?” I would hazard a guess that regardless of whether one buys his entrance mats outright or chooses to enlist the services of a mat rental company, that the end user will still be tasked with periodically cleaning the mats.

Continue reading ‘Floor Mats – Why Renting Floor Mats is Like Flushing Money Down the Commode For Most Businesses’ »

Investors spend hundreds and even thousand on “motivation” and education for real estate purchases. Hours with agents combing property profiles, data and formulations for ROI. Weeks even months evaluating “deals”. And in the climate of today, upwards of 45 days in escrow if using traditional financing methods. Yet when it comes to tenant selection it is a few questions and a “how fast can I get a tenant” approach. I’m in the business of minimizing vacancy so I recognize and understand the mentality.

Most don’t realize tenant selection and screening as a skill or art. By making the right selection initially it can make everything that happens from that point forward much easier to deal with. Most problems with the tenant actually began prior to giving them the keys because they handle the presentation and viewing wrong.
You must first eliminate and then investigate. With the initial phone call don’t just jump the gun on getting them inside the property. Ask questions based on needs, desires and direction. Identify the motivation for moving, selection of property and area. So unless they lie on the phone or leave “something” out, you can attempt to eliminate and then investigate. During the initial elimination period you can ask questions [with the proper approach] about income, credit, evictions and convictions.

Continue reading ‘Tenant Selection – Process Or Skill?’ »

Basement apartments are a great way for renters to gain cheep, affordable space in very hip urban cities like Boston and New York City. Renting basement areas out is a great way for owners and landlords to make storage space usable with a simple basement-refinishing project. With the rise of these “basement conversion” apartments, cities and towns are now enforcing laws regarding habitable space, and basement-waterproofing companies are urging them to listen.

An apartment in an exciting urban area is great to have, but if the apartment you’re buying was constructed prematurely and not brought up to code, your apartment can be a very unsafe place for you and your family.

When you have your basement inspected before finishing make sure that you have enough head height to accommodate refinishing in the first place. A full head height basement ranges (by state) between 7′-9′. If you install a drop ceiling or a rigid board ceiling, your “after head height” has to allow for access to pipes and still allow for a person to stand with no obstructions. Each town has different ordinances so check with your local building inspectors before starting construction.

Continue reading ‘Basement Apartments For Rent – What Owners Should Know Before Renting’ »

Problem tenants can be a Landlords worst nightmare. Some characteristics of problem tenants are destroying your property, not paying rent, and even suing you. So, people who invest in rental property want to avoid problem tenants like the plague.

Pre-screening renters is a good way to avoid problem tenants. As a Landlord, the first interaction you have with a perspective tenant is usually on the phone. Once you make the initial contact with your potential renter, you should have a list of questions ready to determine if you move on to the next step or not. Some questions you should ask would be rental history, income, employment history, credit history, and if they have any pets or children. Most potential tenants will be happy to answer your questions, but be leary of people who seem reluctant to answer. Also, be cautious of people who complain about the property managers at their current residence.

After you pre-screen your tenants; you would then move on to the rental application, as long as you were satisfied with the potential renters previous answers. In order to fill out the paperwork, you should have the applicant physically come in to pick it up. Continue reading ‘Problem Tenants – Just Say No!’ »