The Right Time of the Year to Sell

Many people who wish to sell their home have to face the question of when is the right time of the year to do so. The truth is that there is no clear answer to this question because the answer depends on too many factors and all of them are of a subjective nature. People who are looking to buy a home do so based on many factors. Are they being relocated due to a job transfer? Have they been waiting for their home to sell? The only clear trend is that during spring and summer the number of homes sold is higher.

There are, however, other factors to consider. Do you want to sell in a busy market or a slow market? A busy market means there will be a lot more competition. If you feel that you home may not position well to stand heavy competition then it would be better to wait till the market slows down a bit. If, on the other hand, you position your home so that it is competitive in the market then time of year is less of a consideration.

While seasonal trends are important they not the most important thing. The most compelling factor in selling a home are your own needs. There has to be a reason why you are selling your home and there is probably a deadline by which you have to have done so. Focus on those rather than on the time of the year. Also pay attention to current market conditions. You may not be able to wait for early spring for the market to get busy, so do not damage your position by waiting for months. 

Apart from current market conditions you should also understand where the market is going. This involves a bit of research to figure out future trends from past ones. Though you cannot accurately predict the future of the market you can get a reasonably close picture. Talk to your real estate agent. They have the expertise you need to help make a well-informed decision. If the market is beginning to slow down and turn into a buyer's market then obviously you are better off the sooner you sell your home. Waiting in a slowing market will only lower the market value of your home. If your home is in an area of rising property values, price your home to reflect the direction of the market. Again, talk to your real estate agent for advice and guidance.

There are many factors to consider when selling your home. The time of year is less important than making sure your home is priced correctly and marketed properly.

Remember that you only need one buyer!

Chris is a Realtor with EXIT Realty Associates
www.YourWashingtonRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.Com

4105 Byron Avenue Bellingham, WA 98225

3442 McLeod Road Bellingham, WA 98225

4755 S. Golf Course Drive Blaine, WA 98230

7943 E. Golf Course Blaine, WA 98230

Five First Time Home Buyer Mistakes

Five First Time Home Buyer Mistakes

Buying a home for the first time is an exciting process. At the same time, it is one that
is filled with many steps and details. Deciding which home and which mortgage are decisions that have lasting consequences. As you embark upon your home-buying excursion we suggest you keep in mind
these common mistakes of first time homebuyers.

#1 Purchasing a home too

fast. Perhaps it’s the excitement of buying your first home.
Or maybe it’s a fear that the “perfect” home will be purchased
by someone else. Whatever the reason, many first time homebuyers make
the mistake of rushing through the home purchasing process. They
tend to spend too little time searching for the right home. Often
first time homebuyers end up dissatisfied with the home they’ve purchased.
Keep your options open and continue to search for new homes that come
on the market.

#2 Buying too much home.

Another mistake made by first time homebuyers is purchasing a home that’s
right at, or even a little beyond, their limits. Many times this
leaves the new homeowner with little or no disposable income.
What good is a large home if you are unable to furnish it? None
at all! Purchasing a smaller home and leaving yourself some wiggle room
is much better than eating up your monthly income with a large mortgage
payment.

#3 Holding out for the dream

home. First time homebuyers might pass up several houses they
like because they believe that there is a better house out there for
them – one that is complete with everything they want and need.
In the meantime, houses that have most of the items they are looking
for are being taken off the market by other buyers. If a significant
period of time passes, market prices could go up and the first time
homebuyer ends up paying more for a home than expected. Even worse,
the buyer ends up so worn out from house shopping that he, or she, ends
up settling.

#4 Not getting pre-approved

for a mortgage. A pre-approval will do wonders for the first time
homebuyer’s shopping experience. Being pre-approved for a mortgage
lets you know what you can afford and what your payments will be.
Some first time homebuyers, not realizing the importance of this, forgo
pre-approval to get a head start on home shopping. What’s the
worst that could happen? You could find a home you absolutely
love and fail to obtain financing for it. Also, being pre-qualified
is NOT the same as being pre-approved. We have seen many families
not get their dream home because they were just pre-qualified.

#5 Not comparing mortgages.

Shopping around for a mortgage is just as important as shopping around
for the home. Many first time homebuyers do not realize that mortgages
from different lenders have different costs and different terms.
There are so many factors of that can vary from one lender to the next.
It only makes sense to shop around for the best deal.

Be informed of the steps thatyou must take and the decisions you must make as a first time homebuyer.Information and education are the best tools to equip you during the process of purchasing your first home.

Chris is a Realtor with EXIT Realty Associates

www.YourWashingtonRealtor.com
www.RealBellingham.com
www.WhatcomShortSale.Com

Active Rain Real Estate Professional

2507 Elizabeth

Rare opportunity to affordably own a classic 1900s farmhouse style charmer in the desirable Columbia neighborhood. This larger Elizabeth Park home's open floor plan offers the flexibility of a master bedroom on the main floor or upstairs. The location can't be beat just a few blocks from Elizabeth Park! The private fenced in landscaped backyard gives you the feel of a secluded garden in the middle of town, close to all amenities.

Understanding The 1031 Tax Exchange

Real estate investors looking to sell an investment property and purchase a new one can greatly benefit from the Internal Revenue Code Section 1031. Section 1031 is one of the most powerful tax deferral tools currently available for taxpayers.

In short, this section allows for a tax-deferred exchange. This means that taxpayers do not have to pay income taxes when they sell an investment property and reinvest the proceeds from that property into a like-kind or similar asset.

A 1031 Exchange comes with numerous advantages for taxpayers and paves a road of encouragement for real estate investors so that they might continue to invest. First and foremost, Section 1031 gives the taxpayer the ability to sell business, investment and income property and not pay federal income taxes on it if they replace the sell with a like-kind property.

According to the IRS, like-kind properties must be the same in character or nature. They can, however, be different in quality or grade. Real estate investment properties that qualify under this IRS code include rental houses, retail and commercial properties, apartment buildings, office and industrial buildings, ranches and undeveloped land.

Properties that do not qualify under a 1031 Exchange are personal residences, interests in partnerships, business inventory, and property owned by dealers.

While Section 1031 obviously presents a big perk for real estate investors, there is a disadvantage. Because the exchange reduces the basis for depreciation on the replacement property, the replacement property will then include a deferred gain that will be taxed in the future when the taxpayer sells his or her investment.

There are four types of exchanges made possible through Section 1031. First, is a simultaneous exchange. This type of exchange occurs when the taxpayer closes both properties on the same day. This is usually a back-to-back transaction with no lapse of time between the closings.

Second is a delayed exchange, also known as a "Starker Exchange." This type of transaction refers to the closing of the replacement property after the closing of the relinquished property. A delayed exchange does not take place on the same day. The delayed exchange is mandated by strict time frames pursuant to Section 1031. Specific timelines are in place to allow the taxpayer a certain amount of time to search for a replacement property and sign a contract to purchase it.

Next is the reverse exchange also known as the title-holding exchange. This is an exchange that occurs when the replacement property has been closed on prior to the selling of the relinquished property. When entering into this type of an exchange, the intermediary will retain the replacement property's title until the taxpayer closes the relinquished property.

Lastly, is the improvement exchange which also serves a title-holding exchange. This type of exchange refers to a situation that involves the taxpayer purchasing property and arranging improvements for it before it is actually received as the replacement property.

Since Section 1031 does not allow the taxpayer to improve the property, a mediator is employed to retain and close on the title of the replacement property until it is ready to enter as an exchange. Once the improvements are complete the liaison then passes on the title to the taxpayer.

As you can see, there are several situations applicable to Section 1031 that benefit real estate investors. To learn more about IRS Code Section 1031 and how to profit from it, contact your financial advisor or accountant.

Omar Johnson is a real estate investor and author of the home study course "The Real Estate Investors Guide To Finding Motivated Sellers" For more info visit http://www.findingthemotivatedsellers.com

Chris Farkas is a Realtor with EXIT Realty

Choosing the Debt Consolidation Service That's Right for You

Isn't Debt Consolidation a Good Thing?
Debt consolidation, which is the process of bringing together all accounts of debt into one whole account (consolidating), would be considered a good thing to take advantage of to many people. How can anyone go wrong with choosing to apply for debt consolidation? Look at all the pros from choosing to consolidate debt:

There are the benefits of having reduced interest rates, one Morgul low monthly payment, one person to deal with (as opposed to creditors for each debt), and chances of having a better credit history in a shorter amount of time. What can possibly be wrong with applying for debt consolidation? There are some cons that many people do not consider.

Cons of Debt Consolidation
One major thing to consider is getting back into the habit of spending above budget. With only one low monthly payment to worry about, a person may be tempted to spend the extra money on other unnecessary items (the money that is now being saved from now making only one monthly payment toward all bills). Even worse, with a person paying their credit cards down through debt consolidation may begin to get back into the habit of reusing their credit cards again and repeating the same mistake; the one that got them in that situation of needing debt consolidation in the first place.

Also, the application fees for a particular debt consolidation program may be unreasonable. With so many companies or organizations that supply debt consolidation programs, they have to compete. A person should carefully research the different companies and organizations that offer debt consolidation, and choose one that does not have unreasonable fees. Also, beware of those that offer promises of free service. The free service could apply to the initial consultation, but then fees may kick in after the fact.

What's a Debt Consolidation Service to Begin With?
You'll better understand what a debt consolidation service can do for you if you understand what debt consolidation is. And a good definition of debt consolidation is the process of combining all of the "balances due", on which you make monthly payments to your creditors, into a single larger debt that enables you to make a single monthly payment.

And generally in this situation, the kinds of debts you're combining are your unsecured debts, i.e. you credit card debts, medical bills, and personal (signature) loan debts. Debt consolidation typically doesn't include mortgages, car loans, boat loans, or any other kind of secured debt secured, or taxes or utilities.

So, a debt consolidation service is an organization that can help you do just that, combine multiple unsecured debts into a single larger debt. But these services can also help with other things as well. Reputable debt consolidation services will work with you creditors to help reduce your total debt, reduce the interest rate you'll pay, and possibly have them waive late fees and other charges. They'll also work with both you and your creditors to come up with a repayment plan that both you and your creditors can live with.

Are There Any Alternatives to a Debt Consolidation Service?
But before diving in and selecting a debt consolidation service to help you out of your current financial dilemma, you need consider other alternative. This is especially the case since when you start working with the debt consolidation service to help lower your debt and come up with a repayment plan, your creditors will report this fact to the credit reporting agencies and your credit history becomes, well, be-smirched. No single solution, including using a debt consolidation service is right for all people.

Chris Farkas is a realtor for EXIT Realty in Bellingham, WA