As they do every year, Bob Erickson and George Bisbee spent a few hours last Friday ringing the bell for the Salvation Army. Not only did they have a fun time seeing and chatting with lots of old friends, as well as making new ones, Thrivent Financial was doing matching funds up to $125,000, for our district! By the end of the day, the buckets contained over $220,000, and with the matching funds, totaled over $340,000!!!!! That is a whole lot of money that goes to those in need. A HUGE THANKS goes out to ALL Salvation Army Bell Ringers!
Wednesday, December 15, 2010
Thank You Salvation Army Bell Ringers!
As they do every year, Bob Erickson and George Bisbee spent a few hours last Friday ringing the bell for the Salvation Army. Not only did they have a fun time seeing and chatting with lots of old friends, as well as making new ones, Thrivent Financial was doing matching funds up to $125,000, for our district! By the end of the day, the buckets contained over $220,000, and with the matching funds, totaled over $340,000!!!!! That is a whole lot of money that goes to those in need. A HUGE THANKS goes out to ALL Salvation Army Bell Ringers!
Monday, November 29, 2010
Thanksgiving in Jacksonport!
Bob and I had such a wonderful day on Thanksgiving Day; I wanted to share some of our day with you. We have a ritual that begins with breakfast at Al Johnson’s Swedish Restaurant. We then take a walk. This year we walked in Whitefish Bay Dunes State Park and Cave Point. It was spectacular! There has been so much moisture that liken has grown on the trees. The trees looked as if they were budding! Lake Michigan’s waves were huge and crashing on the shore.
After our walk, we went to the Jacksonport’s Thanksgiving Day Parade. We have not missed one of their parades! Each year the parade gets a little larger, but it is still so short that the participants turn around and make another pass through town!
Our sincere wish from Bob and me is that you too had a wonderful Thanksgiving holiday! Enjoy our pictures!
All the best and enthusiastically………..
Connie
Tuesday, November 23, 2010
Happy Thanksgiving!
According to Lawrence Yun, the Chief economist of the National Association of REALTORS, it will take a long time before we can say the economy is back to normal. However, as demonstrated by those buying in Door County in 2010 and with whom I’ve worked, with housing at its most affordable level in decades, and with a 30 year rate at 4.5% or lower for a second home property, it is a great time to buy.
I encourage all of you as you plan for 2011 to seriously consider taking advantage of the lower rates and the decrease in prices. It may and probably will, save you 10% over the terms of the loan.
In closing, as you give thanks on this Thanksgiving Day, include Door County for all it's beauty and charm and the peace it provides you. I am so fortunate to live and work here. Thank you for your confidence in my real estate abilities, I am grateful for the referrals you send me. When you know anyone who wants to buy or sell Door County property, give me a call.
Happy Thanksgiving!
I encourage all of you as you plan for 2011 to seriously consider taking advantage of the lower rates and the decrease in prices. It may and probably will, save you 10% over the terms of the loan.
In closing, as you give thanks on this Thanksgiving Day, include Door County for all it's beauty and charm and the peace it provides you. I am so fortunate to live and work here. Thank you for your confidence in my real estate abilities, I am grateful for the referrals you send me. When you know anyone who wants to buy or sell Door County property, give me a call.
Happy Thanksgiving!
Friday, November 19, 2010
Crafty Ideas for Winter Curb Appeal
Yes, it's still possible to create great curb appeal when it's cold and gray outside.By Melissa Dittmann Tracey
During summer months when gardens are in bloom and the sun is shining bright, curb appeal comes naturally to many homes. But when the autumn chill turns to winter cold and the sun sets earlier in the day, it becomes more difficult to create that inviting exterior look that grabs buyers from the curb.
Fortunately, it is possible to create striking winter curb appeal without expensive or complicated exterior changes, says Charlene Storozuk, a home stager and designer with Dezigner Digz in Burlington, Ontario—a city that averages 51 inches of snow per year. It just requires a little creativity.
She and other home-design experts offer these eight tips:
1. Add splashes of green and purple. Plants, grasses, and evergreens can liven up a home’s winter landscape. Experiment with tall grasses, such as fountain grasses, that survive harsh winters. And in late fall and early winter, plants from the cabbage family add a vibrant purple color. Make the front door the focal point with a large wreath adorned with a colorful ribbon. To finish the look, place large, colorful planters filled with evergreens beside the front door, suggests Elizabeth Lord, broker with Carolina Farms & Estates LLC in Rock Hill, S.C.
2. Give it seasonal sparkle. Transform an unused bird bath or fountain into a seasonal display by adding twigs with red berries. Or fill frost-resistant urns with twigs, winter greenery, and sparkly baubles (sold at most craft stores), Storozuk says. For extra sparkle, roll twigs in glitter and incorporate a gazing ball—a mirrored glass ball available in various colors—into the display.
3. Make the garden statuesque. Roman- or Greek-themed outdoor sculptures can add class and elegance to a garden in winter. Be sure to use frost-resistant statues so they don’t crack, Storozuk says. Place the statues strategically throughout the garden to draw buyers’ eyes around the outdoor space.
4. Light it bright. During the winter, it’s more likely that buyers will be viewing home after sunset. Use clear flood spotlights to focus on the home’s architectural features, Storozuk says. Keep exterior lighting fixtures at maximum wattage and clean them regularly. When snow covers the ground, Michele Thompson, broker-owner of White Fence Real Estate in Vevay, Ind., takes photos of listings at night with all of the interior lights on—the light bounces off the white snow to create a warm, inviting glow. For the best results, turn off the flash, and use a tripod to avoid blurring, she says.
5. Show off the lifestyle. Just because it’s cold outside doesn’t mean you can’t use the deck. Shovel your backyard sitting area and leave your grill uncovered so buyers can envision themselves using the space, Storozuk says. If the home has a hot tub, leave that open and running during showings as well.
6. Make the deck an extension of the house. Set up your outdoor tables and chairs just as you would in warmer months. “Home owners often cover their furniture and place lawn objects haphazardly on the deck,” says Kitty Schwartz, president and owner of Classic Home Staging in Katonah, N.Y. For added appeal, she adds a weatherproof cafe set with pillows that play off of interior accent colors. “Glancing out onto this type of vignette can make the indoor space feel larger and more interesting,” she says.
7. Create a photo display of sunnier days. Show buyers what the outside of the home looks like during other seasons by displaying some landscape photos in frames or using a digital photo frame with a slide show of images. “This will give a sense of what the property looks like at other times of year,” Storozuk says. If the home has a garden, make a list of what’s planted where. “Perennials can be expensive,” she says, “so treat them as a selling feature.”
8. Don’t forget to clear a path. If the ground is covered in snow, the simplest and most important thing you can do is shovel the driveway and sidewalks and keep the home’s patios and decks as clear as possible so buyers can get a sense of their true size.
Reprinted from REALTOR® Magazine Online November 2010 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2010. All rights reserved.
Thursday, November 4, 2010
Door County Real Estate Market Statistics 2010
Fall has been, and continues to be, very active….much more than in 2009. The one big difference between 2009 and 2010 is that I’ve not had one Buyer say to me: “I think I’ll wait”, “The economy scares me”, “I think my job may be in jeopardy.” Quite the contrary, 2010 Buyers are buying because our prices have decreased somewhat and the interest rates are great.
To see the up to the minute stats on the market as of October 1, 2010, CLICK HERE.
Tell all your friends to visit my web site, www.ConnieErickson.com regularly for up to date market information.
To see the up to the minute stats on the market as of October 1, 2010, CLICK HERE.
Tell all your friends to visit my web site, www.ConnieErickson.com regularly for up to date market information.
Thursday, October 21, 2010
Architecture Coach: A Different Kind of Dining Room
By Barbara Ballinger
Despite rumors of its demise, the dining room is not disappearing, but going through a transformation as homes get smaller and more energy-efficient and low-maintenance.
Often thought of as a place mostly for enjoying holiday dinners and birthday celebrations, the dining room is morphing into a friendlier, more intimate space as home owners try to maximize existing square footage rather than add on.
One popular trend today is to take down a wall between the dining room and kitchen to fashion one big, casual cooking and eating space, which can also be used for watching a movie or using a computer, says interior designer Janell Rasper of Callen Construction Inc. in Muskego, Wis.
Those who build from scratch today often go for a simpler approach: In addition to fewer bedrooms and smaller garages, people frequently opt for more casual living and eating spaces, an open great room with a corner for dining, or a smaller dining room, according to the most recent New Homes Started survey from the National Association of Home Builders in Washington, D.C. “Home owners worried about costs are interested in making trade-offs today,” says Stephen Melman, NAHB’s director of Economic Services, Economics and Housing Policy.
Tom Hackett of Orren Pickell Designers & Builders in Lake Bluff, Ill., says his firm regularly scales back on the size of most dining rooms and lowers once-high ceilings for warmth and intimacy. More dining rooms also have become multipurpose with bookshelves, a bar, or paneling that opens to a desk for an at-home office. And some of these rooms are placed at the center of the house so they lie within the main traffic flow to attract attention and use, Hackett says.
You can help your buyers and sellers analyze a dining room’s importance by discussing the following possibilities, based on how they live. The ultimate goal: to feed the eyes and make the space functional.
Click to read the full article.
Reprinted from REALTOR® Magazine Online November 2010 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2010. All rights reserved.
Despite rumors of its demise, the dining room is not disappearing, but going through a transformation as homes get smaller and more energy-efficient and low-maintenance.
Often thought of as a place mostly for enjoying holiday dinners and birthday celebrations, the dining room is morphing into a friendlier, more intimate space as home owners try to maximize existing square footage rather than add on.
One popular trend today is to take down a wall between the dining room and kitchen to fashion one big, casual cooking and eating space, which can also be used for watching a movie or using a computer, says interior designer Janell Rasper of Callen Construction Inc. in Muskego, Wis.
Those who build from scratch today often go for a simpler approach: In addition to fewer bedrooms and smaller garages, people frequently opt for more casual living and eating spaces, an open great room with a corner for dining, or a smaller dining room, according to the most recent New Homes Started survey from the National Association of Home Builders in Washington, D.C. “Home owners worried about costs are interested in making trade-offs today,” says Stephen Melman, NAHB’s director of Economic Services, Economics and Housing Policy.
Tom Hackett of Orren Pickell Designers & Builders in Lake Bluff, Ill., says his firm regularly scales back on the size of most dining rooms and lowers once-high ceilings for warmth and intimacy. More dining rooms also have become multipurpose with bookshelves, a bar, or paneling that opens to a desk for an at-home office. And some of these rooms are placed at the center of the house so they lie within the main traffic flow to attract attention and use, Hackett says.
You can help your buyers and sellers analyze a dining room’s importance by discussing the following possibilities, based on how they live. The ultimate goal: to feed the eyes and make the space functional.
Click to read the full article.
Reprinted from REALTOR® Magazine Online November 2010 with permission of the NATIONAL ASSOCIATION OF REALTORS®. Copyright 2010. All rights reserved.
Wednesday, October 13, 2010
5 STEPS TO OBTAINING A MORTGAGE
Today’s stricter lending environment means that processing a mortgage application is more complex than ever, given the number of steps that lenders, underwriters, and mortgage insurers must all complete before home buyers truly have their financing in place.
To help ensure the process goes smoother, you can also take steps of your own. It’s a good idea to discuss the process with your Accredited Buyer’s Representative (ABR), even before shopping for homes. By planning ahead, you’ll be in a much better position to negotiate and move forward on a purchase—and avoid any unpleasant surprises regarding your mortgage.
1. EVALUATE AFFORDABILITY
Lenders and mortgage insurers look at a variety of factors, but the two most important are your monthly mortgage payment and your total debt loan, relative to your gross income. As a home buyer, it’s also important to consider additional expenses, beyond your mortgage payment, that can impact how much home you can afford. Depending on your situation, these other expenses could include property taxes, mortgage insurance, homeowners insurance, home maintenance expenses, homeowner association fees, parking expenses, and utilities.
2. DISCUSS YOUR OPTIONS
Deciding what type of mortgage is best for you depends on your personal situation, your financial scenario, and your future plans. For example, if your down payment isn’t large enough to qualify for a conventional loan, an FHA mortgage can be an excellent option. Alternately, you may qualify for an attractive program offered at the national or local level. Mortgage programs are always changing, so ask your ABR about current options.
3. INTERVIEW LENDERS
Your ABR can provide several recommendations, based on past home buyers’ experiences. Rates and fees are typically very competitive between lenders, so it’s often more important to focus on other factors including the level of service provided and how well they’ve executed transactions for other buyers. The type of mortgage you are seeking may also impact your choice of lender, since some are more familiar with certain mortgage programs than others.
4. GET PREAPPROVED
Completing a loan application with one or more lenders will help confirm whether your intended mortgage financing plans will work out as hoped, or if you must modify your plans. It’s important to understand since pre-approvals are contingent upon the lender receiving full documentation; your pre-approval does not guarantee that you have a mortgage. Still, it’s an important first step that will also put you in a better negotiating position with sellers.
5. COMMIT TO A LENDER
As soon as you are under contract to purchase a home, commit to working with one lender to complete your mortgage application. You will probably be charged a fee at this point because this is when the lender starts incurring processing expenses on your behalf. Show your lender that you are serious about working in partnership with them by submitting all the required documentation as quickly as possible.
Following these five steps will greatly improve your results in getting a mortgage. Count on your ABR to provide more detailed information on each step on the process and answer any questions.
To help ensure the process goes smoother, you can also take steps of your own. It’s a good idea to discuss the process with your Accredited Buyer’s Representative (ABR), even before shopping for homes. By planning ahead, you’ll be in a much better position to negotiate and move forward on a purchase—and avoid any unpleasant surprises regarding your mortgage.
1. EVALUATE AFFORDABILITY
Lenders and mortgage insurers look at a variety of factors, but the two most important are your monthly mortgage payment and your total debt loan, relative to your gross income. As a home buyer, it’s also important to consider additional expenses, beyond your mortgage payment, that can impact how much home you can afford. Depending on your situation, these other expenses could include property taxes, mortgage insurance, homeowners insurance, home maintenance expenses, homeowner association fees, parking expenses, and utilities.
2. DISCUSS YOUR OPTIONS
Deciding what type of mortgage is best for you depends on your personal situation, your financial scenario, and your future plans. For example, if your down payment isn’t large enough to qualify for a conventional loan, an FHA mortgage can be an excellent option. Alternately, you may qualify for an attractive program offered at the national or local level. Mortgage programs are always changing, so ask your ABR about current options.
3. INTERVIEW LENDERS
Your ABR can provide several recommendations, based on past home buyers’ experiences. Rates and fees are typically very competitive between lenders, so it’s often more important to focus on other factors including the level of service provided and how well they’ve executed transactions for other buyers. The type of mortgage you are seeking may also impact your choice of lender, since some are more familiar with certain mortgage programs than others.
4. GET PREAPPROVED
Completing a loan application with one or more lenders will help confirm whether your intended mortgage financing plans will work out as hoped, or if you must modify your plans. It’s important to understand since pre-approvals are contingent upon the lender receiving full documentation; your pre-approval does not guarantee that you have a mortgage. Still, it’s an important first step that will also put you in a better negotiating position with sellers.
5. COMMIT TO A LENDER
As soon as you are under contract to purchase a home, commit to working with one lender to complete your mortgage application. You will probably be charged a fee at this point because this is when the lender starts incurring processing expenses on your behalf. Show your lender that you are serious about working in partnership with them by submitting all the required documentation as quickly as possible.
Following these five steps will greatly improve your results in getting a mortgage. Count on your ABR to provide more detailed information on each step on the process and answer any questions.
Monday, October 11, 2010
RENTING VS. BUYING
Many purchasers are determining whether to buy a home or rent.
According the USA Today, there is a formula which helps determine whether it is best for you to rent or buy. Of course, it is not always right, and I found it interesting and wanted to share with you.
The ratio is determined by multiplying the rent times 12 months and dividing that number into the average list price. As you may or may not know, the average list price is ALWAYS available on my web site, and if you can’t find it where you are, contact a REALTORS office and ask them for the number. A low ratio indicates that it’s less expensive to own than to rent.
Then your own personality enters into it too, with rent you don’t have to deal with maintenance, with ownership you have to pay to replace items, like an roof and that can be very expensive.
According the USA Today, there is a formula which helps determine whether it is best for you to rent or buy. Of course, it is not always right, and I found it interesting and wanted to share with you.
The ratio is determined by multiplying the rent times 12 months and dividing that number into the average list price. As you may or may not know, the average list price is ALWAYS available on my web site, and if you can’t find it where you are, contact a REALTORS office and ask them for the number. A low ratio indicates that it’s less expensive to own than to rent.
Then your own personality enters into it too, with rent you don’t have to deal with maintenance, with ownership you have to pay to replace items, like an roof and that can be very expensive.
Thursday, September 23, 2010
Rates predicted to stay low
I spoke recently with my friend and lender, Laura Seefeldt of Johnson Bank and asked her if she’d write a guest column for my newsletter. If you are in a position to purchase, it is an excellent time. Laura predicts the rates to stay low. Did you know if the interest rate increases just 1%, you will pay 10% more for the property? Take a look at what Laura shares…………………..
I was recently in another meeting where we were talking about some upcoming changes that the Federal government is going to implement regarding the disclosure of costs and fees, interest rates, points, etc to the mortgage consumer. This comes on the heels of many previous changes in the structure, disclosure and underwriting of all mortgage loan applications. The government continues to require more and more disclosure to the consumer along with tighter underwriting standards and higher fees as it relates to loan to value (low down payments), credit score (above 740 is best), property type (condominiums and investment property) among many other factors.
So as I was thinking about how to reply to Connie’s request for a peek in the future and forecast into the remainder of 2010 and into 2011, I recalled this meeting along with the events of this past year believe we will continue to see the trend of tweaking and tightening the current regulations.
During this meeting we also discussed the direction of interest rates and were informed that Freddie Mac forecasts that mortgage rates will be in the 4.5% - 5.0% range over the next 3-6 months. However, much will depend on the continued willingness of the Chinese to purchase US Treasuries and the overall recovery of our economy which remains sluggish at best. Two factors that continue to drag the economy is jobs (unemployment at 9.6%) and home values. A total of 716,128 homes were seized from delinquent homeowners during the first 8 months of this year. That’s almost 3,000 a day!!
Further, in the US today there are 3 million job openings and 15 million unemployed. That’s 5 out of work Americans for every 1 job opening.
Laura Seefeldt
JOHNSON BANK
I was recently in another meeting where we were talking about some upcoming changes that the Federal government is going to implement regarding the disclosure of costs and fees, interest rates, points, etc to the mortgage consumer. This comes on the heels of many previous changes in the structure, disclosure and underwriting of all mortgage loan applications. The government continues to require more and more disclosure to the consumer along with tighter underwriting standards and higher fees as it relates to loan to value (low down payments), credit score (above 740 is best), property type (condominiums and investment property) among many other factors.
So as I was thinking about how to reply to Connie’s request for a peek in the future and forecast into the remainder of 2010 and into 2011, I recalled this meeting along with the events of this past year believe we will continue to see the trend of tweaking and tightening the current regulations.
During this meeting we also discussed the direction of interest rates and were informed that Freddie Mac forecasts that mortgage rates will be in the 4.5% - 5.0% range over the next 3-6 months. However, much will depend on the continued willingness of the Chinese to purchase US Treasuries and the overall recovery of our economy which remains sluggish at best. Two factors that continue to drag the economy is jobs (unemployment at 9.6%) and home values. A total of 716,128 homes were seized from delinquent homeowners during the first 8 months of this year. That’s almost 3,000 a day!!
Further, in the US today there are 3 million job openings and 15 million unemployed. That’s 5 out of work Americans for every 1 job opening.
Laura Seefeldt
JOHNSON BANK
Tuesday, September 21, 2010
Four Factors Involved In Selling Your Property
LocationThe saying, “Location, Location, Location” holds true in Door County as in other markets. We are blessed with a variety of beauty throughout Door County and a diversity of buyers...some wanting waterfront, others preferring secluded acreage, and still others wanting a Village setting. Buyers will generally pay more for properties that feature a great view.
Price
The faster you sell your property, the better
. And research has shown that the faster selling properties are those that are priced right from the start.Properties that are priced above the market take longer to sell and, in the end, tend to sell for less than they should have sold for if priced at the market value in the first place.
Condition
New properties have a marketing edge over resale properties because they are clean and in pristine condition. When we work together as a Seller and Agent Team, I will share my staging DVD with you and my talents to help you stage your property for success.
Agent/Marketing Effort
The agent you choose can dramatically affect how fast your property sells and how much.
I have 26 years experience and pride myself with superior market knowledge. I have a great reputation with other agents, which means your property will get plenty of exposure. We, at the Erickson Team, are proactive in our marketing efforts, not reactive. We also have strong records of customer/client satisfaction in our market place.
I have 26 years experience and pride myself with superior market knowledge. I have a great reputation with other agents, which means your property will get plenty of exposure. We, at the Erickson Team, are proactive in our marketing efforts, not reactive. We also have strong records of customer/client satisfaction in our market place.
Monday, August 30, 2010
Door County Property Values Decline
I've found a great article from the Door County Advocate that talks numbers about the property values in Door County. It explains how the local government will use these numbers to determine property taxes and what is to be expected. You can visit the article by clicking here.
Wednesday, August 25, 2010
Overpricing
Now more than ever, correct pricing sells properties!
I know you’ve heard it before, but I cannot stress the importance of pricing your property correctly! Here are some common results of overpricing…..
• Less “Eyes” on Your Listing. Savvy Buyers research the current market even before working with an agent. Many search available listings on-line and will set a price range to limit the listing they review. If your property is priced outside of their range, even by a few thousand dollars, it may not be on the Buyer’s radar. After researching on their own, most serious Buyers hire a Buyer’s Agent to them help them finalize their search. Most agents know their market and know when a property is overpriced. Because of the current supply of properties on the market, the agent will want to focus on properties that are priced right for their client.
• No Showings. Agents who work with Buyers will know the listing prices of comparable properties. If they feel your property is overpriced, they will be inclined not to show your property to their clients for fear of wasting their time.
• Helping Your Competition. This is a biggy…Overpricing your property can actually help your competition sell. Your property’s higher price will make your competition look like a steal. Astute selling agents for other properties will use the price gap as a selling point for their listing.
• Market Stagnation. By pricing high, you run the risk of being on the market for a long, long time. The longer it sits on the market, the more likely it will become stigmatized as an “overpriced” listing in the real estate community. Once this happens, it is hard, even with a price reduction to restore interest.
Remember, YOUR FIRST IMPRESSION IS A LASTING IMPRESSION!
• Tough Negotiations. Anyone who has worked with me knows that negotiating deals is one of my best abilities. A high listing price can be a warning flag that Buyers use during the negotiation process. Buyers will assume that you are either:
A) not well informed on the market,
B) not highly motivated,
C) have a need for money, or
D) are creating bargaining room.
With these assumptions, Buyers are likely to make low offers to find out how low you will go.
• Appraisal Problems. Let’s say you are lucky enough to find a Buyer willing to pay your high price, you then run the risk of the property not appraising. The appraiser will use sales data of comparable properties to justify your sales price. If there are not recent sales that justify the price, your property will not appraise out. Most Buyers finance a portion of their purchase, but many cash Buyers today are requiring appraisals of properties in their Offers to assure them of market value.
I work the Door County real estate market 24/7 and talk with Buyers and Sellers every day. Real estate values have declined and it can be hard to face the facts. There is a smaller pool of motivated Buyers and these motivated Buyers tend to be educated on the market. Without the assumption of value appreciation, few Buyers are willing to gamble and overpay for a property.
I want to thank, David C. Brenton of REMAX Select REALTORS in Greenwood, IN for providing the above information to me.
I know you’ve heard it before, but I cannot stress the importance of pricing your property correctly! Here are some common results of overpricing…..
• Less “Eyes” on Your Listing. Savvy Buyers research the current market even before working with an agent. Many search available listings on-line and will set a price range to limit the listing they review. If your property is priced outside of their range, even by a few thousand dollars, it may not be on the Buyer’s radar. After researching on their own, most serious Buyers hire a Buyer’s Agent to them help them finalize their search. Most agents know their market and know when a property is overpriced. Because of the current supply of properties on the market, the agent will want to focus on properties that are priced right for their client.
• No Showings. Agents who work with Buyers will know the listing prices of comparable properties. If they feel your property is overpriced, they will be inclined not to show your property to their clients for fear of wasting their time.
• Helping Your Competition. This is a biggy…Overpricing your property can actually help your competition sell. Your property’s higher price will make your competition look like a steal. Astute selling agents for other properties will use the price gap as a selling point for their listing.
• Market Stagnation. By pricing high, you run the risk of being on the market for a long, long time. The longer it sits on the market, the more likely it will become stigmatized as an “overpriced” listing in the real estate community. Once this happens, it is hard, even with a price reduction to restore interest.
Remember, YOUR FIRST IMPRESSION IS A LASTING IMPRESSION!
• Tough Negotiations. Anyone who has worked with me knows that negotiating deals is one of my best abilities. A high listing price can be a warning flag that Buyers use during the negotiation process. Buyers will assume that you are either:
A) not well informed on the market,
B) not highly motivated,
C) have a need for money, or
D) are creating bargaining room.
With these assumptions, Buyers are likely to make low offers to find out how low you will go.
• Appraisal Problems. Let’s say you are lucky enough to find a Buyer willing to pay your high price, you then run the risk of the property not appraising. The appraiser will use sales data of comparable properties to justify your sales price. If there are not recent sales that justify the price, your property will not appraise out. Most Buyers finance a portion of their purchase, but many cash Buyers today are requiring appraisals of properties in their Offers to assure them of market value.
I work the Door County real estate market 24/7 and talk with Buyers and Sellers every day. Real estate values have declined and it can be hard to face the facts. There is a smaller pool of motivated Buyers and these motivated Buyers tend to be educated on the market. Without the assumption of value appreciation, few Buyers are willing to gamble and overpay for a property.
I want to thank, David C. Brenton of REMAX Select REALTORS in Greenwood, IN for providing the above information to me.
Door County Century
"Since its inception in 1980, the Door County Century has fast become one of the most popular rides in Wisconsin with an average of 2,000 participants each year. The ride is a recreational and social tour scheduled in early September -- a time when the crowds of summer have departed and the rush of the Fall color season has not yet begun.
The Door County Century has moved. This year's ride, September 12, 2010 will start and finish at the Door County Fairgrounds just north of Sturgeon Bay. This year's ride will feature a Finish Line Celebration with food, music and hearty "job well done" to all riders.
Door County is a bike pedaler's paradise. Scenic backroads blanket a peninsula with over 300 miles of shoreline and an endless array of gift shops, restaurants and lodging options.
Three routes of varying lengths provide options for cyclists of all ability levels. Routes of 30 miles, 50 miles, 70 miles and 100 miles (Century) bring the riders progressively further up the peninsula. Rest stops spaced along the route will provide food, refreshments and rest room facilities along with unforgettable views. All routes start and end at Door County Fairgrounds on the north side of Sturgeon Bay.
Experience the scenic beauty of Door County from the unfettered vantage point of a bicycle."
Monday, August 23, 2010
Second Quarter 2010 Statistics
The second quarter market statistics are out for 2010. Comparing Northern Door County sales prices occurring during the second quarter 2010 vs. 2009, 2010 shows the following: Residential Waterfront up 17%, Residential Inland down 4%, Waterfront Land up 115%, Inland Land down 1%, Commercial up 367%, Residential Condominium down 16%, and Hotel Condominium down 37%. For up to date market information, you can always visit my web site.
_________________________________
Wisconsin Home Sales Up, Prices Stable in Second Quarter
by David Clark, Economist
by David Clark, Economist
MADISON, WI For the second straight quarter, Wisconsin has seen robust growth in existing home sales combined with stable median prices, according to data for the second quarter of 2010 released by the Wisconsin REALTORS Association (WRA). Visit the WRA web site to read the full report and find housing data for Door county.
Thursday, August 12, 2010
Connie's Video Blog
Today was the tall ships day at the canal. On display for the audience was large sailing vessels in action. Connie talks about the event in her latest video blog. Below are the pictures that are mentioned in the video:
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Monday, August 9, 2010
Julie's Park Café & Motel
Have you been to Julie’s Café this year, located right at the entrance to Peninsula State Park and right across the street from my office, Door County Realty, Inc.?Every time I go I have the veggie sandwich with the black bean salad. Usually these sandwiches are dry and boring, this one they serve is knock down delicious!!!!! Lots of other choices too and breakfast all day long too.
Try Julie’s the next time you’re in town, and all the best…………
Connie
Thursday, July 15, 2010
Zip-Lock Bags, Pennies & Water: a Recipe for Deterrence From Connie's Experience
I love my secretary, Becky Bittorf, and one day I came to work and over two windows in my area are baggies full of water and pennies. I say, "Becky, there are baggies with coins over two windows up here." Becky replies that I should read a tip she received in her email (described below). Now I am NOT a believer in this type of thing, BUT, I am hugely allergic to bees and wasps, and there is an area in this cute office of mine where they get in, usually in the Spring and Fall because they gather on the back side where the sun hits and it's warm. They find their way in and eventually to me.
I am AMAZED, since my great Becky put these baggies up, we have NO bees or wasps. This is sooooooooo great, I just had to share with you, pass it on, I have no idea who these people are in these testimonials which are attached, all I can say is this really works!!!!
Spring & summer are just around the corner. This experiment is inexpensive and worth a try.
ZIP LOCK BAG - Good tip!
We went with friends to Sweety Pies on Sunday for breakfast and sat in the patio section beside the house. We happened to notice zip lock baggies pinned to a post and a wall. The bags were half filled with water, each contained 4 pennies, and they were zipped shut. Naturally we were curious! Ms. Sweety told us that these baggies kept the flies away! So naturally we were even more curious! We actually watched some flies come in the open window,stand around on the window sill, and then fly out again. And there were no flies in the eating area! This morning I checked this out on Google. Below are comments on this fly control idea. I'm now a believer!
Ann Says:
I tried the ziplock bag and pennies this weekend.. I have a horsetrailer. The flies were bad while I was camping. I put the baggie with pennies above the door of the living quarters. NOT ONE FLY came in the trailer. The horse trailer part had many. Not sure why it works but it does!Danielle Martin Says:
Fill a ziplock bag with water and 5 or 6 pennies and hang it in the problem area. In my case it was a particular window in my home. It had a slight
passage way for insects. Every since I have done that, it has kept flies and wasps away. Some say that wasps and flies mistake the bag for some other insect nest and are threatened.Maggie Says:
I swear by the plastic bag of water trick. I have them on porch and basement. We saw these in Northeast MO at an Amish grocery store & have used them since. They say it works because a fly sees a reflection & won't come around.DJ Says:
Regarding the science behind zip log bags of water? My research found that the millions of molecules of water presents its own prism effect and given that flies have a lot of eyes, to them it's like a zillion disco balls reflecting light, colors and movement in a dizzying manner. When you figure that flies are prey for many other bugs, animals, birds, etc., they simply won't take the risk of being around that much perceived action. I moved to a rural area and thought these "hillbillies" were just yanking my city boy chain but I tried it and it worked immediately! We went from hundreds of flies to seeing the occasional one, but he didn't hang around long.
Lenders pulling 2nd credit report on buyers Pre-closing
Under Fannie Mae's new Loan Quality Initiative (LQI) that went into effect on June 1, 2010, lenders are pulling a second credit report on the buyer right before closing to verify that the buyer's credit status has not changed and that all debts were disclosed. In other words, the buyer is not officially approved for the mortgage until the second credit report is approved. The lender may also re-verify job status and check other sources to make sure there are no undisclosed debts.
Other lenders also have been known to pull second credit reports right before the closing, but the Fannie Mae LQI will likely cause many more lenders to conduct last-minute verifications.
What this means for buyers is that they are well advised to not make any major purchases or apply for new credit until after closing. For instance, applying for a new credit card may lower a buyer's credit score. Under the LQI, the lender could delay the closing, increase the interest rate or the down payment, or even cancel the closing, depending upon the actual change.
"It seems everywhere is requiring credit checks nowadays. Credit inquiries, although not a serious hit, still can reduce a credit score. I was setting up my utilities before closing, and each one of them requested a social security number and credit check to get utilities set-up. I refused to have them check my credit, and instead paid the cash deposit for setting up a new account. I get the deposit back in 4-6 months, and it prevented any dings to my credit before closing."
-Scott MacCallum (recent home buyer)
Tuesday, July 6, 2010
Incredibly Low Interest Rates
Jodi Kaye, a lender in Door County says she has money available at 3.99% for a 15 year and 4.55% on a 30 year loan.
If that rate increases 1%, you will pay 10% more for the property you buy. The time to buy is NOW, call me or email me to discuss.
If that rate increases 1%, you will pay 10% more for the property you buy. The time to buy is NOW, call me or email me to discuss.
Thursday, July 1, 2010
Extension of Tax Credit and Flood Insurance
After a close brush with the deadline, Congress has passed an extension of
the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and
Improvement Act (H.R. 5623). The extension applies only to transactions that
have ratified contracts in place as of April 30, 2010 that have not yet
closed. The legislation is designed to create a seamless extension the new
closing deadline for eligible transactions is now September 30, 2010. There
is will be no gap between June 30 and the date the President signs the bill
into law.
NAR worked closely with Congressional leaders on both sides of the aisle to
enact this important legislation. Extending the Tax Credit Closing deadline
will help provide additional stability to real estate markets across the
nation.
For additional information on the extension visit
www.realtor.org/government_affairs
Additionally, the United States Senate has passed the National Flood
Insurance Program Extension Act of 2010 (H.R. 5569) an extension of the
National Flood Insurance Program until September 30, 2010. This will allow
transactions to move forward. The bill is retroactive and covers the lapse
period from June 1, 2010 to the date of enactment of the extension.
For more information on the flood insurance program visit
www.realtor.org/government_affairs
Provided to Connie from the Door County Board of REALTORS.
the Homebuyer Tax Credit closing deadline, the Homebuyer Assistance and
Improvement Act (H.R. 5623). The extension applies only to transactions that
have ratified contracts in place as of April 30, 2010 that have not yet
closed. The legislation is designed to create a seamless extension the new
closing deadline for eligible transactions is now September 30, 2010. There
is will be no gap between June 30 and the date the President signs the bill
into law.
NAR worked closely with Congressional leaders on both sides of the aisle to
enact this important legislation. Extending the Tax Credit Closing deadline
will help provide additional stability to real estate markets across the
nation.
For additional information on the extension visit
www.realtor.org/government_affairs
Additionally, the United States Senate has passed the National Flood
Insurance Program Extension Act of 2010 (H.R. 5569) an extension of the
National Flood Insurance Program until September 30, 2010. This will allow
transactions to move forward. The bill is retroactive and covers the lapse
period from June 1, 2010 to the date of enactment of the extension.
For more information on the flood insurance program visit
www.realtor.org/government_affairs
Provided to Connie from the Door County Board of REALTORS.
Wednesday, June 30, 2010
Did you hear? STAR POWER Conference is back!
It's official ... STAR POWER is being re-launched under new leadership! As a STAR POWER Star it's incredibly exciting to be involved in the continuation of STAR POWER into a new era of industry leadership. Since you are a part of my database you automatically get $100 discount to this event.
The 2010 Conference has been booked and this years key note speaker is Dave Ramsey . I do not personally profit if you sign up on my recommendation, but if you try to sign up without going through me it is going to cost you extra money. Use the link below to get the discount.
http://www.gostarpower.com/go?w=conference&p=a254
STAR POWER also has a new saying that fits perfectly with the organization's goals:
STAR POWER is ... Success Shared™.
I'm proud to be a part of this extraordinary organization helping thousands of agents across the country learn how to be more successful, both professionally and personally. I'll be speaking on the subjects of Clients for Life and Listing Spotlight (20 question you should ask in the pre-listing meeting to get the listing every time).
Agents interested in elevating their business should definitely look into going to STAR POWER Conference. Again, the site is: http://www.gostarpower.com/go?w=conference&p=a254
The 2010 Conference has been booked and this years key note speaker is Dave Ramsey . I do not personally profit if you sign up on my recommendation, but if you try to sign up without going through me it is going to cost you extra money. Use the link below to get the discount.
http://www.gostarpower.com/go?w=conference&p=a254
STAR POWER also has a new saying that fits perfectly with the organization's goals:
STAR POWER is ... Success Shared™.
I'm proud to be a part of this extraordinary organization helping thousands of agents across the country learn how to be more successful, both professionally and personally. I'll be speaking on the subjects of Clients for Life and Listing Spotlight (20 question you should ask in the pre-listing meeting to get the listing every time).
Agents interested in elevating their business should definitely look into going to STAR POWER Conference. Again, the site is: http://www.gostarpower.com/go?w=conference&p=a254
Wednesday, June 2, 2010
Medicare Tax on "Unearned" Net Investment Income
According to the National Association of REALTORS, “Contrary to reports and newspaper articles circulating widely on the Internet, there is not a 4.0% “sales tax” or “transfer tax” on the sale of a home included in the recently signed health care reform bill. The analysis underlying these reports is incorrect and fails to take into account the interplay of the bill’s provisions with already existing real estate tax laws that remain unchanged.”
Below are frequently asked questions regarding the new legislation published by the National Association of REALTORS:
New Medicare Tax on "Unearned" Net Investment Income
Q-1: Who will be subject to the new taxes imposed in the health legislation?
A: A new 3.8% tax will apply to the “unearned” income of “High Income” taxpayers. Another 0.9% tax will apply to the “earned” income of many of these same individuals. Both levies are referred to as “Medicare” taxes. (For a description of the new 0.9% tax, see separate Q&A entitled “New Tax on EARNED INCOME: Wages, Salaries and Commissions.”)
Q-2: Who is a “High Income” Taxpayer?
A: Those whose tax filing status is “single” will be subject to the new unearned income taxes if they have Adjusted Gross Income (AGI) of more than $200,000. Married couples filing a joint return with AGI of more than $250,000 will also be subject to the new tax. (The AGI threshold for married filing separate returns is $125,000.)
Q-3: Are the $200,000 and $250,000 thresholds indexed for inflation?
No. Thus, over time, more individuals may become subject to this tax.
Q-4: When does the new 3.8% Medicare tax take effect?
A: The new Medicare tax on unearned income will take effect January 1, 2013.
Q-5: What is “unearned” net investment income?
A. Unearned income is the income that an individual derives from investing his/her capital. It includes capital gains, rents, dividends and interest income. It also comes from some investments in active businesses if the investor is not an active participant in the business.
The portion of unearned income that is subject both to income tax and the new Medicare tax is the amount of income derived from these sources, reduced by any expenses associated with earning that income. (Hence the term “net” investment income.) Thus, in the case of rents, the taxable amount would be gross rents minus all expenses (including depreciation) incurred in operating the rental property. So if gross rents were $100,000 with associated expenses of $40,000, net rents of $60,000 ($100,000 minus $40,000) would be included in Adjusted Gross Income (AGI).
Q-6: So the new tax will apply to rents from investment properties that I own?
A: Maybe. Remember that net investment income includes only net rental income. Thus, gross rents would not be subject to the tax. Rather, gross rents would be reduced (as they are under the income tax) by all allowable expenses, including depreciation, cost of repairs, property taxes and all other expenses related to the property. AGI includes net income from rent, so if your AGI is above the $200,000/$250,000 thresholds, then the rental income might be subject to the tax. For many investment real estate owners, the net rents will be the same as or similar to the amounts reported on their Schedule E, filed with their Form 1040 Income Tax Return. (For calculations, see Q-8, below. See also Q-9 through Q-12 related to capital gain from sale of principal residence, losses on sale and to vacation homes, below.)
Q-7: Does the tax apply to the yearly appreciation of an asset?
No. Capital gains are subject to this new tax only in the year when the asset is sold. The amount of the gain will be measured in the same way that it is for income tax purposes. This rule applies to real estate and all other appreciating capital assets. Net capital gains are taxable only in the year of sale.
Q-8: How is the new 3.8% Medicare tax calculated?
A: The new 3.8% Medicare tax is assessed only when Adjusted Gross Income (AGI) is more than $200,000/$250,000. (See Q-2 above.) AGI includes net income from interest, dividends, rents and capital gains, as well as earned compensation and several additional forms of income presented on a Form 1040 Income Tax Return.
The tax is NOT imposed on the total AGI, nor is it imposed solely on the investment income. Rather, the taxable amount will depend on the operation of a formula. The taxpayer will determine the LESSER of (1) net investment income OR (2) the excess of AGI over the $200,000/$250,000 AGI thresholds. Thus, if net investment income is the smaller amount, then the 3.8% tax is applied only to the net investment income amount. If the excess over the thresholds is the smaller amount, then the 3.8% tax would apply onlyto the excess amount.
For example, if AGI for a single individual is $275,000, then the excess over $200,000 would be $75,000 ($275,000 minus $200,000). Assume that this individual’s net investment income is $60,000. The new 3.8% tax applies to the smaller amount. In this example, $60,000 of net investment income is less than the $75,000 excess over the threshold. Thus, in this example, the 3.8% tax is applied to the $60,000.
If this single individual had AGI if $275,000 and net investment income of $90,000, then the new tax would be imposed on the smaller amount: the $75,000 of excess over $200,000.
Rules of thumb for predicting the application of this tax year to year are not readily determinable, largely because the proportion of net investment income compared to AGI will vary from year to year and from individual to individual.
Q-9: Will the $250,000/$500,000 exclusion on the sale of a principal residence continue to apply?
A: Yes. Any gain from the sale of a principal residence that is less than $250,000 (individual) or $500,000 (joint return) will continue to be excluded from the income tax. The new 3.8% tax will NOT apply to this excluded amount of the gain.
Q-10: Will the 3.8% tax apply to any part of the gain on the sale of a principal residence?
A: The new Medicare tax would apply only to any gain realized that is more than the $250K/$500K existing primary home exclusion (known as the “taxable gain”), and only if the seller has AGI above the $200K/$250K AGI thresholds.
So, for example, if the taxable gain was $30,000 and a married couple had AGI (which would include the taxable gain) of $180,000, the 3.8% tax would not apply because AGI is less than $250,000. If that same couple had AGI of $290,000, then the application of the 3.8% tax would be subject to the same formula described above. The $30,000taxable gain on the sale would be less than the $40,000 excess above $250,000 AGI, so the $30,000 gain would be subject to the new 3.8% tax.
Q-11: Is rent from a vacation home subject to the 3.8% tax? And what about the gain on sale of a vacation or rental property?
A: The application of the tax will depend on whether the vacation home has been rented out, the period for which it has been rented and whether the property is solely for the enjoyment of the owner. If the owner has rented the home out to others, then the 14-day rent exclusion will continue to apply. Thus, if the owner rents the property to others (including family members) for 14 or fewer days, there would be no net investment tax. (Note that no deductions for expenses would be available, as under current law.)
If the home has been rented to others (including family members) for more than 14 days, then the rents (minus related expenses) would be considered as part of net investment income and could, depending on AGI and the calculations described above, be subject to the new tax.
If the vacation home has been used solely for personal enjoyment (i.e., there is no rental income and no associated expenses), then a gain on sale would be treated as net investment income and could be subject to the tax, depending on AGI. Similarly, if the property had generated rents, any net gain on sale could also be included in net investment income. The amount of the tax (if any) would depend on the calculation formula, above in Q-8.
Q-12: My rental property generates a net loss each year. How will those losses be factored into the new tax? And what if I have net capital losses when I sell?
A: Net losses from rents and net capital losses reduce AGI. Thus, the losses themselves would not be subject to the tax. If, after losses, AGI still exceeds the High Income thresholds, the 3.8% tax would still apply if there were any interest or dividends income. (Capital losses reduce capital gains. If losses exceed gains, no more than $3000 of capital losses may reduce other income in any year.)
Note that passive loss limitations will continue to apply to rental income and loss.
Q-13: All of my income is derived from real estate investments that I own and operate myself. Will my rents and gains be subject to the new tax?
A: No. If the ownership and operation of real estate you own is your sole occupation, then those activities are what’s called your “trade or business.” Income derived from a trade or business is not subject to the new 3.8% tax, but could be subject to the 0.9% tax on earned income.
If the owner of rental properties has a “day job,” however, real estate investments are not considered as a trade or business, but are rather considered as investments, even if they are a major source of income. Note that many Realtors engage in business activities are that are the “typical” selling, leasing and brokerage endeavors usually associated with the term “REALTOR®.” If they also own real estate assets as part of their own personal investment portfolio, the rents from that portfolio could become subject to the new 3.8% tax on net investment income, depending on AGI.
Q-14: Is there a real estate “sales tax” or a transfer tax in the new health care bill?
A: No. There is neither a real estate “sales tax” nor a real estate transfer tax in the bill.
Q-15: Will “High Income Filers” lose any portion of the Mortgage Interest they are allowed to deduct?
A: No. The mortgage interest deduction is unchanged. No cap was imposed on any itemized deductions.
Q-17: Why is this new tax called a “Medicare tax?”
A: The revenues generated from this tax will be allocated to the Medicare Trust Fund that is part of the Social Security System. That fund is currently on shaky financial footing. The additional revenues generated from the new earned income and unearned income taxes are intended to shore up the Medicare Trust Fund.
Q-18: How will this new tax affect marginal (the highest) tax rates when it is combined with existing law and with the possible expiration of the Bush tax cuts enacted in 2001?
A: Marginal tax rates are the tax rates assessed on the “last” dollars included in taxable income. If the Bush tax cuts are allowed to expire, then the marginal rates for upper income individuals will increase, particularly for capital gains income.
For information on The National Association of REALTORS, go to: www.realtor.org/healthreform
Below are frequently asked questions regarding the new legislation published by the National Association of REALTORS:
New Medicare Tax on "Unearned" Net Investment Income
Q-1: Who will be subject to the new taxes imposed in the health legislation?
A: A new 3.8% tax will apply to the “unearned” income of “High Income” taxpayers. Another 0.9% tax will apply to the “earned” income of many of these same individuals. Both levies are referred to as “Medicare” taxes. (For a description of the new 0.9% tax, see separate Q&A entitled “New Tax on EARNED INCOME: Wages, Salaries and Commissions.”)
Q-2: Who is a “High Income” Taxpayer?
A: Those whose tax filing status is “single” will be subject to the new unearned income taxes if they have Adjusted Gross Income (AGI) of more than $200,000. Married couples filing a joint return with AGI of more than $250,000 will also be subject to the new tax. (The AGI threshold for married filing separate returns is $125,000.)
Q-3: Are the $200,000 and $250,000 thresholds indexed for inflation?
No. Thus, over time, more individuals may become subject to this tax.
Q-4: When does the new 3.8% Medicare tax take effect?
A: The new Medicare tax on unearned income will take effect January 1, 2013.
Q-5: What is “unearned” net investment income?
A. Unearned income is the income that an individual derives from investing his/her capital. It includes capital gains, rents, dividends and interest income. It also comes from some investments in active businesses if the investor is not an active participant in the business.
The portion of unearned income that is subject both to income tax and the new Medicare tax is the amount of income derived from these sources, reduced by any expenses associated with earning that income. (Hence the term “net” investment income.) Thus, in the case of rents, the taxable amount would be gross rents minus all expenses (including depreciation) incurred in operating the rental property. So if gross rents were $100,000 with associated expenses of $40,000, net rents of $60,000 ($100,000 minus $40,000) would be included in Adjusted Gross Income (AGI).
Q-6: So the new tax will apply to rents from investment properties that I own?
A: Maybe. Remember that net investment income includes only net rental income. Thus, gross rents would not be subject to the tax. Rather, gross rents would be reduced (as they are under the income tax) by all allowable expenses, including depreciation, cost of repairs, property taxes and all other expenses related to the property. AGI includes net income from rent, so if your AGI is above the $200,000/$250,000 thresholds, then the rental income might be subject to the tax. For many investment real estate owners, the net rents will be the same as or similar to the amounts reported on their Schedule E, filed with their Form 1040 Income Tax Return. (For calculations, see Q-8, below. See also Q-9 through Q-12 related to capital gain from sale of principal residence, losses on sale and to vacation homes, below.)
Q-7: Does the tax apply to the yearly appreciation of an asset?
No. Capital gains are subject to this new tax only in the year when the asset is sold. The amount of the gain will be measured in the same way that it is for income tax purposes. This rule applies to real estate and all other appreciating capital assets. Net capital gains are taxable only in the year of sale.
Q-8: How is the new 3.8% Medicare tax calculated?
A: The new 3.8% Medicare tax is assessed only when Adjusted Gross Income (AGI) is more than $200,000/$250,000. (See Q-2 above.) AGI includes net income from interest, dividends, rents and capital gains, as well as earned compensation and several additional forms of income presented on a Form 1040 Income Tax Return.
The tax is NOT imposed on the total AGI, nor is it imposed solely on the investment income. Rather, the taxable amount will depend on the operation of a formula. The taxpayer will determine the LESSER of (1) net investment income OR (2) the excess of AGI over the $200,000/$250,000 AGI thresholds. Thus, if net investment income is the smaller amount, then the 3.8% tax is applied only to the net investment income amount. If the excess over the thresholds is the smaller amount, then the 3.8% tax would apply onlyto the excess amount.
For example, if AGI for a single individual is $275,000, then the excess over $200,000 would be $75,000 ($275,000 minus $200,000). Assume that this individual’s net investment income is $60,000. The new 3.8% tax applies to the smaller amount. In this example, $60,000 of net investment income is less than the $75,000 excess over the threshold. Thus, in this example, the 3.8% tax is applied to the $60,000.
If this single individual had AGI if $275,000 and net investment income of $90,000, then the new tax would be imposed on the smaller amount: the $75,000 of excess over $200,000.
Rules of thumb for predicting the application of this tax year to year are not readily determinable, largely because the proportion of net investment income compared to AGI will vary from year to year and from individual to individual.
Q-9: Will the $250,000/$500,000 exclusion on the sale of a principal residence continue to apply?
A: Yes. Any gain from the sale of a principal residence that is less than $250,000 (individual) or $500,000 (joint return) will continue to be excluded from the income tax. The new 3.8% tax will NOT apply to this excluded amount of the gain.
Q-10: Will the 3.8% tax apply to any part of the gain on the sale of a principal residence?
A: The new Medicare tax would apply only to any gain realized that is more than the $250K/$500K existing primary home exclusion (known as the “taxable gain”), and only if the seller has AGI above the $200K/$250K AGI thresholds.
So, for example, if the taxable gain was $30,000 and a married couple had AGI (which would include the taxable gain) of $180,000, the 3.8% tax would not apply because AGI is less than $250,000. If that same couple had AGI of $290,000, then the application of the 3.8% tax would be subject to the same formula described above. The $30,000taxable gain on the sale would be less than the $40,000 excess above $250,000 AGI, so the $30,000 gain would be subject to the new 3.8% tax.
Q-11: Is rent from a vacation home subject to the 3.8% tax? And what about the gain on sale of a vacation or rental property?
A: The application of the tax will depend on whether the vacation home has been rented out, the period for which it has been rented and whether the property is solely for the enjoyment of the owner. If the owner has rented the home out to others, then the 14-day rent exclusion will continue to apply. Thus, if the owner rents the property to others (including family members) for 14 or fewer days, there would be no net investment tax. (Note that no deductions for expenses would be available, as under current law.)
If the home has been rented to others (including family members) for more than 14 days, then the rents (minus related expenses) would be considered as part of net investment income and could, depending on AGI and the calculations described above, be subject to the new tax.
If the vacation home has been used solely for personal enjoyment (i.e., there is no rental income and no associated expenses), then a gain on sale would be treated as net investment income and could be subject to the tax, depending on AGI. Similarly, if the property had generated rents, any net gain on sale could also be included in net investment income. The amount of the tax (if any) would depend on the calculation formula, above in Q-8.
Q-12: My rental property generates a net loss each year. How will those losses be factored into the new tax? And what if I have net capital losses when I sell?
A: Net losses from rents and net capital losses reduce AGI. Thus, the losses themselves would not be subject to the tax. If, after losses, AGI still exceeds the High Income thresholds, the 3.8% tax would still apply if there were any interest or dividends income. (Capital losses reduce capital gains. If losses exceed gains, no more than $3000 of capital losses may reduce other income in any year.)
Note that passive loss limitations will continue to apply to rental income and loss.
Q-13: All of my income is derived from real estate investments that I own and operate myself. Will my rents and gains be subject to the new tax?
A: No. If the ownership and operation of real estate you own is your sole occupation, then those activities are what’s called your “trade or business.” Income derived from a trade or business is not subject to the new 3.8% tax, but could be subject to the 0.9% tax on earned income.
If the owner of rental properties has a “day job,” however, real estate investments are not considered as a trade or business, but are rather considered as investments, even if they are a major source of income. Note that many Realtors engage in business activities are that are the “typical” selling, leasing and brokerage endeavors usually associated with the term “REALTOR®.” If they also own real estate assets as part of their own personal investment portfolio, the rents from that portfolio could become subject to the new 3.8% tax on net investment income, depending on AGI.
Q-14: Is there a real estate “sales tax” or a transfer tax in the new health care bill?
A: No. There is neither a real estate “sales tax” nor a real estate transfer tax in the bill.
Q-15: Will “High Income Filers” lose any portion of the Mortgage Interest they are allowed to deduct?
A: No. The mortgage interest deduction is unchanged. No cap was imposed on any itemized deductions.
Q-17: Why is this new tax called a “Medicare tax?”
A: The revenues generated from this tax will be allocated to the Medicare Trust Fund that is part of the Social Security System. That fund is currently on shaky financial footing. The additional revenues generated from the new earned income and unearned income taxes are intended to shore up the Medicare Trust Fund.
Q-18: How will this new tax affect marginal (the highest) tax rates when it is combined with existing law and with the possible expiration of the Bush tax cuts enacted in 2001?
A: Marginal tax rates are the tax rates assessed on the “last” dollars included in taxable income. If the Bush tax cuts are allowed to expire, then the marginal rates for upper income individuals will increase, particularly for capital gains income.
For information on The National Association of REALTORS, go to: www.realtor.org/healthreform
Thursday, May 20, 2010
New Carbon Monoxide Detectors Law
New Law Will Require Carbon Monoxide Detectors in All Homes
MADISON, WI – On March 10, 2010, Governor Doyle will sign into a law Senate Bill 415, legislation that will require all homes to have carbon monoxide detectors beginning on February 1, 2011.
Carbon monoxide is a dangerous, poisonous gas, which cannot be detected by human senses. Dubbed the “silent killer,” carbon monoxide claims more than 2,000 lives each year and sends more than 40,000 people to the emergency room in the U.S. alone. At high concentrations, carbon monoxide can be fatal within minutes. Twenty-three other states already have laws requiring carbon monoxide alarms in residential properties.
This new law will expand the current carbon monoxide detector requirements to all one and two-family homes and parallels requirements for smoke alarms for ease of installation. Specifically, this new law will require carbon monoxide alarms to be installed in the basement of the dwelling and on each floor level except the attic or storage area of both newly constructed and existing homes. For new construction, the alarms must be hard-wired in order to be current with national model safety codes. For existing homes, the alarms can be battery operated and can be multi purpose (smoke and carbon monoxide). Dwellings with no attached garages, no fireplaces and no fuel-burning fireplaces are exempted from this requirement.
Similar to the smoke alarm law, the new carbon monoxide detector law does not have a fine or penalty associated with non-compliance. However, all home inspections will be required to check for carbon monoxide alarms.
The above is a news release by Tom Larson, Director of Regulatory and Legislative Affairs
Wisconsin REALTORS® Association
About the WRA
The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing more than 14,000 real estate brokers, sales people and affiliates statewide. Sales estimates for the states, broad national regions, and the U.S. are provided by the National Association of REALTORS®, which seasonally adjusts quarterly sales figures. All county and regional sales figures and median prices within Wisconsin are compiled by the Wisconsin REALTORS® Association and are not seasonally adjusted.
MADISON, WI – On March 10, 2010, Governor Doyle will sign into a law Senate Bill 415, legislation that will require all homes to have carbon monoxide detectors beginning on February 1, 2011.
Carbon monoxide is a dangerous, poisonous gas, which cannot be detected by human senses. Dubbed the “silent killer,” carbon monoxide claims more than 2,000 lives each year and sends more than 40,000 people to the emergency room in the U.S. alone. At high concentrations, carbon monoxide can be fatal within minutes. Twenty-three other states already have laws requiring carbon monoxide alarms in residential properties.
This new law will expand the current carbon monoxide detector requirements to all one and two-family homes and parallels requirements for smoke alarms for ease of installation. Specifically, this new law will require carbon monoxide alarms to be installed in the basement of the dwelling and on each floor level except the attic or storage area of both newly constructed and existing homes. For new construction, the alarms must be hard-wired in order to be current with national model safety codes. For existing homes, the alarms can be battery operated and can be multi purpose (smoke and carbon monoxide). Dwellings with no attached garages, no fireplaces and no fuel-burning fireplaces are exempted from this requirement.
Similar to the smoke alarm law, the new carbon monoxide detector law does not have a fine or penalty associated with non-compliance. However, all home inspections will be required to check for carbon monoxide alarms.
The above is a news release by Tom Larson, Director of Regulatory and Legislative Affairs
Wisconsin REALTORS® Association
About the WRA
The Wisconsin REALTORS® Association is one of the largest trade associations in the state, representing more than 14,000 real estate brokers, sales people and affiliates statewide. Sales estimates for the states, broad national regions, and the U.S. are provided by the National Association of REALTORS®, which seasonally adjusts quarterly sales figures. All county and regional sales figures and median prices within Wisconsin are compiled by the Wisconsin REALTORS® Association and are not seasonally adjusted.
Thursday, May 6, 2010
Wednesday, April 14, 2010
Door County's First Quarter Mkt Stats
In reviewing Door County's first quarter market statistics, I find it interesting that for the first time (as long as I can remember), the List Price to Sales Price (LP/SP) statistic has decreased below 90% in ALL property types except condominiums. Door County's LP/SP statistics have held in the 90% bracket until now.
The time it takes to get a property sold (TOM) is on average 1.5 years. Take note, vacant waterfront lots took, on average, 1,036 days to sell!
The market is the market. We cannot change it, but by understanding it, we can position ourselves to make the best of it. Knowledge is key!
Visit my web site often to stay on top of Door County's real estate market: www.ConnieErickson.com
I post updated Door County real estate market statistics quarterly and am available to discuss current market conditions anytime. I welcome your call or e-mail. I love talking real estate!
Wednesday, March 31, 2010
Markets Even Out Over the Long Term
In a recent article entitled, “Markets Even Out Over the Long Term”, published by the National Association of REALTORS, Lawrence Yun, chief economist of the National Association of REALTORS stated:
“…With about 4 million births, 2 million deaths, and 1 million newly arriving immigrants in the United States each year, there will be a steady demand for homes over time. Historically, the net number of home-owning households rises by 1 million each year. The 2 million weddings and 1 million divorces each year also add to changes in living patterns. Furthermore, home owners look for a new place to live every seven to 10 years on average. As a result, over the next 10 years, we can expect anywhere from 50 million to 70 million home sales...”
You can stay on top of Door County’s real estate market by visiting my web site. Current market stats are posted at: http://www.connieerickson.com/
“…With about 4 million births, 2 million deaths, and 1 million newly arriving immigrants in the United States each year, there will be a steady demand for homes over time. Historically, the net number of home-owning households rises by 1 million each year. The 2 million weddings and 1 million divorces each year also add to changes in living patterns. Furthermore, home owners look for a new place to live every seven to 10 years on average. As a result, over the next 10 years, we can expect anywhere from 50 million to 70 million home sales...”
You can stay on top of Door County’s real estate market by visiting my web site. Current market stats are posted at: http://www.connieerickson.com/
Wednesday, March 24, 2010
2009 National Assoc. of REALTORS Buyer/Seller Survey
Below is interesting information received from the 2009 National Association of REALTORS survey....
2009 Buyer Profile of Buyers and Sellers
1. New home construction and sales were down significantly during the recession, and home buyers purchased a high share of previously owned homes than at any point during the past decade.
2. Nationally home buyers moved a median 12 miles from their previous residence. There are slight regional differences. Buyers in the South moved a median of 13 miles from their previous residence, while buyers in the Northeast and Midwest typically moved 10 miles.
3. The typical home purchased was built in 1991.
4. Home buyers typically spend 12 weeks searching for a home and looked at 12 homes before deciding on their purchase. Before contacting and agent, home buyers spent about two weeks gathering their own information on the homes.
5. Internet users spent twice as much time searches for a home and visit three times as many homes. Connie with an upfront consultation appointment can cut that time in half because of her knowledge of the market. That way you have more time to enjoy the arts, crafts and environmental activities in Door County.
6. 9 out of 10 home buyers use the internet as one of the information sources in their home search process. A real estate agent is the second most frequently sided information source. The third most frequently used source is a yard sign.
7. In 2009, 13% of home buyers had a purchased agreement that was cancelled, terminated, or fell through. 90% of the buyers in their home search process used the internet, up 30% during the past 6 years.
8. 79% of home buyers using the internet bought their home through an agent.
9. First time buyers are less likely to use REALTOR.com than repeat buyers.
How do buyers find a real estate agent:
1. 44% used a referral.
2. 10% use of an agent previously.
3. First time buyers tend to rely more on referrals (53%).
4. Repeat buyers are more likely to revisit and agent they have used before.
5. When choosing a real estate agent buyers rate honesty and trustworthiness as the two most important factors in selecting and agent.
6. 66% of home buyers indicated they would defiantly use the real estate agent again or recommend the agent.
7. An additional 22% said they would probably use the same agent or recommend the agent.
2009 Buyer Profile of Buyers and Sellers
1. New home construction and sales were down significantly during the recession, and home buyers purchased a high share of previously owned homes than at any point during the past decade.
2. Nationally home buyers moved a median 12 miles from their previous residence. There are slight regional differences. Buyers in the South moved a median of 13 miles from their previous residence, while buyers in the Northeast and Midwest typically moved 10 miles.
3. The typical home purchased was built in 1991.
4. Home buyers typically spend 12 weeks searching for a home and looked at 12 homes before deciding on their purchase. Before contacting and agent, home buyers spent about two weeks gathering their own information on the homes.
5. Internet users spent twice as much time searches for a home and visit three times as many homes. Connie with an upfront consultation appointment can cut that time in half because of her knowledge of the market. That way you have more time to enjoy the arts, crafts and environmental activities in Door County.
6. 9 out of 10 home buyers use the internet as one of the information sources in their home search process. A real estate agent is the second most frequently sided information source. The third most frequently used source is a yard sign.
7. In 2009, 13% of home buyers had a purchased agreement that was cancelled, terminated, or fell through. 90% of the buyers in their home search process used the internet, up 30% during the past 6 years.
8. 79% of home buyers using the internet bought their home through an agent.
9. First time buyers are less likely to use REALTOR.com than repeat buyers.
How do buyers find a real estate agent:
1. 44% used a referral.
2. 10% use of an agent previously.
3. First time buyers tend to rely more on referrals (53%).
4. Repeat buyers are more likely to revisit and agent they have used before.
5. When choosing a real estate agent buyers rate honesty and trustworthiness as the two most important factors in selecting and agent.
6. 66% of home buyers indicated they would defiantly use the real estate agent again or recommend the agent.
7. An additional 22% said they would probably use the same agent or recommend the agent.
Wednesday, February 24, 2010
Who's Bragging?
People are not comfortable when you speak of your accomplishments - they call it bragging. I feel just the opposite. I love hearing of people's success and accomplishments. Marianne Williamson conveys exactly the way I feel.....
OUR GREATEST FEAR
by Marianne Williamson
Our greatest fear is not that we are inadequate,
but that we are powerful beyond measure.
It is our light, not our darkness, that frightens us.
We ask ourselves, who am I to be brilliant, gorgeous,
handsome, talented, and fabulous?
Actually, who are you not to be?
You are a child of God.
Your playing small does not serve the world.
There is nothing enlightened about shrinking so that
other people won't feel insecure around you.
We were born to make manifest
the glory of God within us.
It is not just in some; it is in everyone.
And, as we let our own light shine,
we unconsciously give other people
permission to do the same.
As we are liberated from our fear,
our presence automatically liberates others.
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