As a renter you are paying someone else’s mortgage for them. As a home owner the money you put toward you home builds equity in your future as well as your home. Not only do get the equity that is built every month you pay, you also get the equity built up by appreciation it the homes value.
Now let us look at the value you get with home ownership through taxes. If your rent is $850 a month you get NO tax deduction. (Unless you run a business out of your home) Now if you were to buy a home for $200,000 at 5% interest your monthly payments would be right around $1200.00 a month with taxes and insurance. But at the end of the year you get to deduct the property taxes and the interest you paid on your mortgage. The deduction you would get off your federal taxes would be approximately $14,000 and if you are in the 28% tax bracket that would be a tax deduction of $3925 per year. If you divide that by 12 months you monthly payment would be equivalent to $875 rent. The different is that your monthly payment will never go up unlike rent that increases 10-15% per year on average.
People who own their own home build wealth faster than those who continue to rent. According to the Federal Reserve Board the median net worth of most moderate-income owners is almost $60,000 compared to less than $10,000 for renters in the same income group.
As a home owner you are 3 times more likely to start your own business. Home equity is one of the largest sources of collateral for bank loans to start new businesses.
Homeownership offers a benefit to the children of homeowners also. Children of homeowners are more likely to own homes, make more money, do better socially, and have better scores in school on average. Children of homeowners score an average of 9% higher on math achievement tests and 7% higher on reading achievement tests. They area also 25% more likely to graduate from high school. 100% more likely to go to college and are 116% more likely to acquire post secondary education.
Todd Clark – broker
Kastings & Associates
(503)524-9494
Todd@IFoundYourNewHome.com
IFoundYourNewHome.com
Sunday, July 09, 2006
Monday, June 19, 2006
You The First Time Home Buyer
You the first time home buyer have a lot of work ahead of you. I want you to make it the smoothest possible transaction with the least hurdles. I advise my clients about 6 months before you plan to buy to get a free copy of their credit report. On average 50% of all credit reports have errors on them of one sort or another. This can mean you will end up paying more for a mortgage than you have to because your credit score is inaccurate. Once you get your credit report, look it over very carefully and dispute any and all errors. This can take up to 3 months to correct. (But well worth your time) Once the corrections have been resolved it is now time to talk to a good mortgage broker. I suggest talking to your real estate agent for at least 3 suggestions of whom they would suggest. I then would interview them all, to find out which one can give you the best deal and also fits your personality the best. You want someone that you can easily talk to and get a long with.
During this entire process I suggest you are getting ALL the listings in the area that you are looking. This will help you become an educated buyer. This helps you become that way by knowing what houses are a good price for the square footage, and the number of bedrooms and bathrooms. By the end of the 2nd month a buyer will be able to look at the new listings and say WOW! Those are a good price, and know that you will have to jump on a property before it is gone.
At this point I would have you start carrying your check book. This is because once you find the home you like; you have to act quickly to ensure you don’t lose it. I’ve seen buyers lose 2 or 3 homes before they have learned this lesson. If you are not prepared to buy the day you go out to look at houses they you are not ready to buy a house. But, when are ready and have a check in hand and a pre-approval letter from a mortgage lender then that is the time to call me Todd Clark at (503)524-9494.
Todd Clark – broker
Kastings & Associates (503)524-9494
Todd@IFoundYourNewHome.com
www.IFoundYourNewHome.com
During this entire process I suggest you are getting ALL the listings in the area that you are looking. This will help you become an educated buyer. This helps you become that way by knowing what houses are a good price for the square footage, and the number of bedrooms and bathrooms. By the end of the 2nd month a buyer will be able to look at the new listings and say WOW! Those are a good price, and know that you will have to jump on a property before it is gone.
At this point I would have you start carrying your check book. This is because once you find the home you like; you have to act quickly to ensure you don’t lose it. I’ve seen buyers lose 2 or 3 homes before they have learned this lesson. If you are not prepared to buy the day you go out to look at houses they you are not ready to buy a house. But, when are ready and have a check in hand and a pre-approval letter from a mortgage lender then that is the time to call me Todd Clark at (503)524-9494.
Todd Clark – broker
Kastings & Associates (503)524-9494
Todd@IFoundYourNewHome.com
www.IFoundYourNewHome.com
Monday, June 05, 2006
1031 Exchanging - Making Money Through Investing
A 1031 exchange is a way to exchange one investment property for one or more investment properties of equal or greater value without having to pay the capital gains tax.
The advantage to the 1031 exchange is that you can increase your portfolio and value of your properties without ever having to invest more that your original down payment from your first property. One investor may buy a property as a rental property and consider that a great investment as long as it brings money in each month. But let’s look at another example and see how the 1031 exchange can increase your portfolio.
The first example is of a person who bought the rental property and rents it out for 15 years making money from the rental every month. If that investor bought a $250,000 property with $45,000 down minus the mortgage interest deduction and the money earned from the rental income will earn 19% on his money the first year. But each year the percentage earned on the $45,000 will decrease. By the end of the 15 year your percentage earned on your $45,000 will decrease to only about 3%. But if you were to do a tax exchange every year, your $45,000 would continue to earn 19% every year and your taxable income will continue to decrease. If you are an Oregon or SW Washington resident please feel free to contact me and I will gladly meet with you and show you how you could earn 19% every year instead of in just the first year.
Todd Clark – broker
Kastings & Associates
(503)524-9494
Todd@IFoundYourNewHome.com
IFoundYourNewHome.com
The advantage to the 1031 exchange is that you can increase your portfolio and value of your properties without ever having to invest more that your original down payment from your first property. One investor may buy a property as a rental property and consider that a great investment as long as it brings money in each month. But let’s look at another example and see how the 1031 exchange can increase your portfolio.
The first example is of a person who bought the rental property and rents it out for 15 years making money from the rental every month. If that investor bought a $250,000 property with $45,000 down minus the mortgage interest deduction and the money earned from the rental income will earn 19% on his money the first year. But each year the percentage earned on the $45,000 will decrease. By the end of the 15 year your percentage earned on your $45,000 will decrease to only about 3%. But if you were to do a tax exchange every year, your $45,000 would continue to earn 19% every year and your taxable income will continue to decrease. If you are an Oregon or SW Washington resident please feel free to contact me and I will gladly meet with you and show you how you could earn 19% every year instead of in just the first year.
Todd Clark – broker
Kastings & Associates
(503)524-9494
Todd@IFoundYourNewHome.com
IFoundYourNewHome.com
Sunday, April 30, 2006
The Commission Question
The question is why is there such a variance in what one agent charges over another agent? The reason for this is the amount of service they provide to you for their commission.
What some people don’t realize is that the commission isn’t paid by the buyer. So a Real Estate Agents services are free to the buyer. You can have a agent represent you in a transaction for free. What most sellers don’t understand is that not just your agent gets a cut of the commission. The listing agent gets only a portion, and the company he works for get a portion. Then the buyers agent and his company get a cut also.
So why does one company charge so much more than another? The difference is usually the amount of service you get. When you pay your agent. 2.7% of that usually goes to the buyers agent the company that they work for. Now if an agent will offer a buyers agent 2.7% for one home and the home next to it is selling for the exactly same price but is only offering 1% to the buyers agent, what home is the agent more likely to want to show and present in a more favorable light to their buyer?
That doesn’t mean all agents think this way. But there are agents that are not willing to even show that other home. This can effect how fast you sell your home, even in a hot market. It also will effect how much money the listing agent is willing to put toward advertising your home, or even having an open house.
My best advise is you usually get what you pay for, and if it sounds to good to be true it usually is. What you end up saving in commission you will usually lose in price.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
Todd@IFoundYourNewHome.com
What some people don’t realize is that the commission isn’t paid by the buyer. So a Real Estate Agents services are free to the buyer. You can have a agent represent you in a transaction for free. What most sellers don’t understand is that not just your agent gets a cut of the commission. The listing agent gets only a portion, and the company he works for get a portion. Then the buyers agent and his company get a cut also.
So why does one company charge so much more than another? The difference is usually the amount of service you get. When you pay your agent. 2.7% of that usually goes to the buyers agent the company that they work for. Now if an agent will offer a buyers agent 2.7% for one home and the home next to it is selling for the exactly same price but is only offering 1% to the buyers agent, what home is the agent more likely to want to show and present in a more favorable light to their buyer?
That doesn’t mean all agents think this way. But there are agents that are not willing to even show that other home. This can effect how fast you sell your home, even in a hot market. It also will effect how much money the listing agent is willing to put toward advertising your home, or even having an open house.
My best advise is you usually get what you pay for, and if it sounds to good to be true it usually is. What you end up saving in commission you will usually lose in price.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
Todd@IFoundYourNewHome.com
Sunday, April 23, 2006
How to Make Your Investment Property Work for You
Do you own an investment property? Do you ever worry about how you are going to make money with that property? Most investors think the only way to make money is the rent. This is just not the truth! If you have a real estate agent that is telling you this property will make you money for years to come is doing you a disservice. YOU can make up to 19% on your investment property without ANY money out of pocket!
Most owners of rental property only look at the money they bring in each month. This is not the way to look at rental property. It is just one of the four ways a rental property can make you money. The four parts are: debt service, cash flow before taxes, taxable income and appreciation.
If you take your present investment property and purchase a new property, with only the equity that you have built in your current property you could do this year in and year out with NO out of pocket expenses. With the help of the right real estate agent you could buy a duplex that could not only put money in your pocket each month, it could also pay for the mortgage, be a great tax write off and with the appreciation could earn you 19% or more on your original investment! That original investment was paid for you by the equity in your present rental property. This 19% can also be earned EVERY YEAR and I will gladly sit down with you and show you how this can be done.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Most owners of rental property only look at the money they bring in each month. This is not the way to look at rental property. It is just one of the four ways a rental property can make you money. The four parts are: debt service, cash flow before taxes, taxable income and appreciation.
If you take your present investment property and purchase a new property, with only the equity that you have built in your current property you could do this year in and year out with NO out of pocket expenses. With the help of the right real estate agent you could buy a duplex that could not only put money in your pocket each month, it could also pay for the mortgage, be a great tax write off and with the appreciation could earn you 19% or more on your original investment! That original investment was paid for you by the equity in your present rental property. This 19% can also be earned EVERY YEAR and I will gladly sit down with you and show you how this can be done.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Sunday, April 16, 2006
How To Make More From Your Rental Property
Do you own a rental property? Or are you thinking of owning one? Ever worry about how to increase your profits without losing renters? You can make more money every month without raising the rent! Now your thinking about it, aren’t you? Let me give you just a few suggestions that may help increase your profit each month without losing those renters.
Do you have a washer and dryer hookup? Most renters don’t have the money to buy a washer and dryer, so they end up driving to the local coin-op. How about contract with a local coin-op to install them in each of your units and split the profit? It is a win-win for everyone involved. With this suggestion there is also a benefit that most owners of rental property haven’t thought about, that I suggest to all my income property owners. By offering this service, you have it written in to the rental contract that you will enter the home once a month and collect the change from the machine. By doing this you can also do a visual inspection of the unit every month. This will help keep illegal activity to a minimum if not stop it all together.
How about a rent to own situation? This is a great profit center for a lot of owners! The main reason this is such a great deal for investment property owners is that most rent to own buyers can not get regular financing through a bank or lending institution. But by offering them a chance to purchase with a NON-REFUNDABLE deposit you can charge them a higher rent and about 70% the time after just a few years they change their minds and move on. You get the deposit and also the benefit of higher rents for the time they were there.
Always think outside the box when it comes to getting more from your rental properties. There are always ways to make more money that do not involve charging more rent. Ask your Realtor about ideas they may use or have heard being used on other rental properties in the area.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Do you have a washer and dryer hookup? Most renters don’t have the money to buy a washer and dryer, so they end up driving to the local coin-op. How about contract with a local coin-op to install them in each of your units and split the profit? It is a win-win for everyone involved. With this suggestion there is also a benefit that most owners of rental property haven’t thought about, that I suggest to all my income property owners. By offering this service, you have it written in to the rental contract that you will enter the home once a month and collect the change from the machine. By doing this you can also do a visual inspection of the unit every month. This will help keep illegal activity to a minimum if not stop it all together.
How about a rent to own situation? This is a great profit center for a lot of owners! The main reason this is such a great deal for investment property owners is that most rent to own buyers can not get regular financing through a bank or lending institution. But by offering them a chance to purchase with a NON-REFUNDABLE deposit you can charge them a higher rent and about 70% the time after just a few years they change their minds and move on. You get the deposit and also the benefit of higher rents for the time they were there.
Always think outside the box when it comes to getting more from your rental properties. There are always ways to make more money that do not involve charging more rent. Ask your Realtor about ideas they may use or have heard being used on other rental properties in the area.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Sunday, April 09, 2006
Finding the Right Fixer Upper for You
Ever thought about buying a fixer upper and then selling it to make a profit? If you answered yes to this question you are just like thousands of others before you. Not all of them made money, but others have made thousands. What is the difference? Why did one person make money and the other lose it?
The reason one person can make thousands on a fixer upper and one loses thousands is the way they planned it out. The person who lost thousands usually sees what they thinks is a great deal, buys it, spends $30,000 fixing it up, and then puts it back on the market for $45,000 more than they bought it for. That is great if the homes in the area are selling for that price. Now lets look at the person making thousands of dollars, they start at the price they can sell the home for! Let us say he can sell a home in an area for $250,000, he will then take that price subtract the price of closing, selling and fixing it up and add $10,000 for profit. Now let us say that is the same $45,000 the person who will lose thousands thought he would sell the home for. Now that means they cannot buy a home for more than $205,000. This will get him the price he wants when he goes to sell. The first buyer might lose money because the neighborhood prices may not be able to justify a $45,000 price increase.
Real Estate is not game for the faint at heart! It is something that if done right and with the right Real Estate agent can make you very rich. But if you don’t plan ahead and have an agent that will help you do the math beforehand, it can end up being a very costly life lesson.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
The reason one person can make thousands on a fixer upper and one loses thousands is the way they planned it out. The person who lost thousands usually sees what they thinks is a great deal, buys it, spends $30,000 fixing it up, and then puts it back on the market for $45,000 more than they bought it for. That is great if the homes in the area are selling for that price. Now lets look at the person making thousands of dollars, they start at the price they can sell the home for! Let us say he can sell a home in an area for $250,000, he will then take that price subtract the price of closing, selling and fixing it up and add $10,000 for profit. Now let us say that is the same $45,000 the person who will lose thousands thought he would sell the home for. Now that means they cannot buy a home for more than $205,000. This will get him the price he wants when he goes to sell. The first buyer might lose money because the neighborhood prices may not be able to justify a $45,000 price increase.
Real Estate is not game for the faint at heart! It is something that if done right and with the right Real Estate agent can make you very rich. But if you don’t plan ahead and have an agent that will help you do the math beforehand, it can end up being a very costly life lesson.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Sunday, March 26, 2006
How To Sell Your Home Quickly
When you put your home on the market your agent assumes that you want to sell your home as quickly as possible for the highest amount of profit. If this not what you have in mind, you need to tell your agent up front what you want.
A home that sits on the market for a long time doesn’t do you or your agent any good. The best way to sell your home quickly is to price it accurately from the start! A lot of people think that you should price your home high and then come down over time. This is not a good strategy to get your home sold for top dollar. There are two reasons why it is not a good idea to employ this strategy: First is today’s buyers are far more educated and know what a good price is and will just skip your home and move to one that is priced right. The second reason this doesn’t work is that as a home sits on the market for a long time you are paying for the mortgage every month that it is on the market and a buyer will end up offering you a lot lower amount for the home than you originally wanted, knowing that you may be getting impatient and may just accept any offer that comes in. Homes that are overpriced from the start end up selling for 2% lower than the homes that were priced properly from the time they went on the market. (Information obtained from the National Association of Realtors.)
The second problem that can keep a home from selling is curb appeal. Curb appeal can be as simple as putting a few flowers in the front yard to spruce up how a home looks. But it can be much bigger of a problem, like a neighbor with a yard that you are embarrassed by every time your friends come over. The messy neighbor may be a smaller problem to solve than you may think. If you hire a landscaper for you and your neighbor’s yard, at your expense, it will only cost you a couple hundred, but net you thousands and also a quicker sale. Just explain to your neighbor that you want to sell your home and that you are offering the neighbors on both sides of your home free landscaping to bring about a quicker sale and they probably will not say no.
Remember, a home that a buyer falls in love with before they even enter through the front door is one they are more likely to purchase and forget what is inside. Remember when you found your home? You remembered what the outside looked like, but you couldn’t tell your best friend if it even had a closet in the master bedroom. The curb appeal is what sells a home; it is rarely what is on the inside. So buy a new door handle and mailbox, and cheers to a quick and profitable sale.
For more information on how to sell your home more quickly and for the highest possible price, please contact me anytime.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
A home that sits on the market for a long time doesn’t do you or your agent any good. The best way to sell your home quickly is to price it accurately from the start! A lot of people think that you should price your home high and then come down over time. This is not a good strategy to get your home sold for top dollar. There are two reasons why it is not a good idea to employ this strategy: First is today’s buyers are far more educated and know what a good price is and will just skip your home and move to one that is priced right. The second reason this doesn’t work is that as a home sits on the market for a long time you are paying for the mortgage every month that it is on the market and a buyer will end up offering you a lot lower amount for the home than you originally wanted, knowing that you may be getting impatient and may just accept any offer that comes in. Homes that are overpriced from the start end up selling for 2% lower than the homes that were priced properly from the time they went on the market. (Information obtained from the National Association of Realtors.)
The second problem that can keep a home from selling is curb appeal. Curb appeal can be as simple as putting a few flowers in the front yard to spruce up how a home looks. But it can be much bigger of a problem, like a neighbor with a yard that you are embarrassed by every time your friends come over. The messy neighbor may be a smaller problem to solve than you may think. If you hire a landscaper for you and your neighbor’s yard, at your expense, it will only cost you a couple hundred, but net you thousands and also a quicker sale. Just explain to your neighbor that you want to sell your home and that you are offering the neighbors on both sides of your home free landscaping to bring about a quicker sale and they probably will not say no.
Remember, a home that a buyer falls in love with before they even enter through the front door is one they are more likely to purchase and forget what is inside. Remember when you found your home? You remembered what the outside looked like, but you couldn’t tell your best friend if it even had a closet in the master bedroom. The curb appeal is what sells a home; it is rarely what is on the inside. So buy a new door handle and mailbox, and cheers to a quick and profitable sale.
For more information on how to sell your home more quickly and for the highest possible price, please contact me anytime.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Sunday, March 19, 2006
Investing in the Numbers Game
Every successful investor knows what the numbers are before purchasing an investment property. You might say to yourself, “that is easy, does the rental on the property pay for the mortgage?” That is a good start, but there are so many other numbers that you need to know about. That is where an experienced Realtor can help you find out what ALL the numbers are and if you can make a profit.
When you buy an investment property, most first time investors think that once they have purchased the property there are never any more costs. So let me go through with you some other things you need to consider before putting an offer in on an investment property. Is this a multi-plex unit or a single family home? If this is a single family home you need to look at the appreciation over time. Is the property in a neighborhood of mostly owner occupied homes? More owner occupied homes in an area mean higher resale value and more community involvement.
Does the property come with long term renters or is it vacant? This can either add value to a property or decrease the value. An owner of an investment can say they charge $800 a month in rent a month, but if it is vacant they might as well charge $0. No renters means no money. If the investment property is vacant you need to consider the cost to fill it, such as newspaper ads, signs, internet, flyers, and so on. Also, if it is rented you need to consider these same costs if someone should move out. Plus if you have a tenant move out you need to consider that you will have the cost of at least one month without rental income, and also carpet replacement, painting, etc. These are all things that need to be considered when planning your budget on an investment property.
Another way to save on costs is to manage the property yourself. If you plan to do this, make sure you get a property within 10 miles. You don’t want to spend all day driving to units clear across town; Remember time is money! Management costs vary, so if you are planning to use a management company shop around and get references.
Who pays for the everyday maintenance and utilities? These can add up to thousands per year in incremental costs. Who waters and mows the lawn? Who pays the water, electric, sewage, garbage etc? These are all things you need to ask before you purchase a property. There are also the maintenance costs that will have to be covered by you like a new roof or a failing exterior of a property.
Now for the nasty word that everyone hates to hear…TAXES! This is a number that changes every year. It isn’t a fixed cost like a mortgage payment. So if you run the numbers and they look good, will the taxes going up next year and you not giving a rent increase change your mind on this property? It is a good idea to talk to your tax professional before deciding. Remember even if you buy a property that has a zero cash flow in every month, it will still give you tax benefits that at the end of the year will put money in your pocket.
So if you decide to get into investment property to increase your net worth, sit down with a Realtor and run the numbers with him/her and find out what type of property will best suit your needs immediately and in the future.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
When you buy an investment property, most first time investors think that once they have purchased the property there are never any more costs. So let me go through with you some other things you need to consider before putting an offer in on an investment property. Is this a multi-plex unit or a single family home? If this is a single family home you need to look at the appreciation over time. Is the property in a neighborhood of mostly owner occupied homes? More owner occupied homes in an area mean higher resale value and more community involvement.
Does the property come with long term renters or is it vacant? This can either add value to a property or decrease the value. An owner of an investment can say they charge $800 a month in rent a month, but if it is vacant they might as well charge $0. No renters means no money. If the investment property is vacant you need to consider the cost to fill it, such as newspaper ads, signs, internet, flyers, and so on. Also, if it is rented you need to consider these same costs if someone should move out. Plus if you have a tenant move out you need to consider that you will have the cost of at least one month without rental income, and also carpet replacement, painting, etc. These are all things that need to be considered when planning your budget on an investment property.
Another way to save on costs is to manage the property yourself. If you plan to do this, make sure you get a property within 10 miles. You don’t want to spend all day driving to units clear across town; Remember time is money! Management costs vary, so if you are planning to use a management company shop around and get references.
Who pays for the everyday maintenance and utilities? These can add up to thousands per year in incremental costs. Who waters and mows the lawn? Who pays the water, electric, sewage, garbage etc? These are all things you need to ask before you purchase a property. There are also the maintenance costs that will have to be covered by you like a new roof or a failing exterior of a property.
Now for the nasty word that everyone hates to hear…TAXES! This is a number that changes every year. It isn’t a fixed cost like a mortgage payment. So if you run the numbers and they look good, will the taxes going up next year and you not giving a rent increase change your mind on this property? It is a good idea to talk to your tax professional before deciding. Remember even if you buy a property that has a zero cash flow in every month, it will still give you tax benefits that at the end of the year will put money in your pocket.
So if you decide to get into investment property to increase your net worth, sit down with a Realtor and run the numbers with him/her and find out what type of property will best suit your needs immediately and in the future.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Sunday, March 12, 2006
Making a House a Home
You started prepping your home to put on the market. This is the time to consult a Realtor®. Why, you may ask? The professional Realtor® will help you with hints that will make your house a home to a potential buyer. A competent professional Realtor® will not try to list the home until it is ready. They want to see you get the most for your home and not worry about losing it to another agent, because they wanted to do what was right for you.
The thing I do with most of my clients is I take them out to the street in front of their home and put them in my car. I then tell them, “OK, you are a buyer who I have just pulled up with. Now let us get out of the car and evaluate your home and tell me if you would buy it?” This really scares most sellers immediately because they realize that the curb appeal that was there when they bought their house is no longer there. They thought they were selling their home, when what they were really selling is a picture. A buyer wants something that they can take a picture of and show their friends. “Look what we just bought!”
When you have lived in a home for a long time, clutter happens. No avoiding it! But now you want to move. Why not pack everything up except the essentials? Empty the closets, the garage, and even the kitchen. You are going to have to do it anyway, why not do it now? A buyer wants to see a home that has plenty of storage for all their clutter, but if you have every space filled to the roof in the home, they look at it and say, “This house doesn’t have enough room for all our stuff.” The sad part is, they end up buying the house 2 blocks down for $10,000 more that has 200 less square feet.
Time to have a painting party! Invite all your friends over for pizza and pop, and have them help you paint your home in record time! Paint your walls in white or off-white colors. The reason for this is it makes the home more inviting and seem more open.
This is a big one and is the most difficult for most sellers. Take down all the personal photos and colorings from all walls and the refrigerator. When potential buyers come into a home they look at that stuff and comment. Yes they like it, but it takes their mind off the purchase of you home. They see you in it, instead of trying to move themselves in mentally.
Finally, go to a new housing development and take a look at the model home. Does your home look like this? The reason model homes sell is because the home is staged. This means that they took the home and made it look livable, but not lived in. This is a major difference.
Remember a buyer needs to feel welcome, like they were walking into their own home. If they feel like they are home, it will be easier for them to imagine themselves living there.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
The thing I do with most of my clients is I take them out to the street in front of their home and put them in my car. I then tell them, “OK, you are a buyer who I have just pulled up with. Now let us get out of the car and evaluate your home and tell me if you would buy it?” This really scares most sellers immediately because they realize that the curb appeal that was there when they bought their house is no longer there. They thought they were selling their home, when what they were really selling is a picture. A buyer wants something that they can take a picture of and show their friends. “Look what we just bought!”
When you have lived in a home for a long time, clutter happens. No avoiding it! But now you want to move. Why not pack everything up except the essentials? Empty the closets, the garage, and even the kitchen. You are going to have to do it anyway, why not do it now? A buyer wants to see a home that has plenty of storage for all their clutter, but if you have every space filled to the roof in the home, they look at it and say, “This house doesn’t have enough room for all our stuff.” The sad part is, they end up buying the house 2 blocks down for $10,000 more that has 200 less square feet.
Time to have a painting party! Invite all your friends over for pizza and pop, and have them help you paint your home in record time! Paint your walls in white or off-white colors. The reason for this is it makes the home more inviting and seem more open.
This is a big one and is the most difficult for most sellers. Take down all the personal photos and colorings from all walls and the refrigerator. When potential buyers come into a home they look at that stuff and comment. Yes they like it, but it takes their mind off the purchase of you home. They see you in it, instead of trying to move themselves in mentally.
Finally, go to a new housing development and take a look at the model home. Does your home look like this? The reason model homes sell is because the home is staged. This means that they took the home and made it look livable, but not lived in. This is a major difference.
Remember a buyer needs to feel welcome, like they were walking into their own home. If they feel like they are home, it will be easier for them to imagine themselves living there.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Sunday, March 05, 2006
Thinking Of Moving
This is the best time to get a free copy of your credit report. As a Real Estate agent I can’t count the times that I’ve seen people find their perfect home and then lose it when they couldn’t afford the payments because of an error on a credit report. They can’t figure out why they didn’t get the interest rate that they wanted. Then they get the credit report and see mistakes on it, but it is too late to fix anything. By getting your credit report early, you can fix the errors that do appear on it in plenty of time, and not have it hold up the purchase of your dream home.
If you own a home already, this would be a good time to call me and get my “Home Sellers Checklist”. This is a list of all the things you should do to your home, prior to putting it on the market, that will help insure a faster sale and net you the most money. Most people put their home on the market and then try to fix things. This is the incorrect order to do things if you want to get the most out of your home. First, you lose a lot of potential buyers. They saw the home prior to the fixes and will not come back again. Second is you may lose thousands of dollars in the price of your home to a buyer that may put in an offer, but not for what you are asking. A desperate agent will tell you to list now! I advise my clients to wait, do the repairs, and net the profit later. Why lower the price by $15,000 when in less than 2 weeks, the home could be show ready, and sell a lot quicker than if you just listed it immediately. For more tips on what to do prior to buying or selling a home, please feel free to call me anytime or visit my website for other helpful tips.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
Todd@IFoundYourNewHome.com
If you own a home already, this would be a good time to call me and get my “Home Sellers Checklist”. This is a list of all the things you should do to your home, prior to putting it on the market, that will help insure a faster sale and net you the most money. Most people put their home on the market and then try to fix things. This is the incorrect order to do things if you want to get the most out of your home. First, you lose a lot of potential buyers. They saw the home prior to the fixes and will not come back again. Second is you may lose thousands of dollars in the price of your home to a buyer that may put in an offer, but not for what you are asking. A desperate agent will tell you to list now! I advise my clients to wait, do the repairs, and net the profit later. Why lower the price by $15,000 when in less than 2 weeks, the home could be show ready, and sell a lot quicker than if you just listed it immediately. For more tips on what to do prior to buying or selling a home, please feel free to call me anytime or visit my website for other helpful tips.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
Todd@IFoundYourNewHome.com
Sunday, February 26, 2006
I Can't Sell My Home - Now What?
There are lots of ways to sell a home that most agents don’t know about or will ever learn about. They will list your home, cross their fingers, and be happy if they sell the home. But you have already tried that agent. So now what? Talk to an agent in your area that specializes in expired and canceled listings. They may have options that you have never heard of or been offered. How about a Lease Option on a property you own? A lease option can greatly increase your chances on selling a property at a great profit. There is also the option of doing a seller carry back on a mortgage. Have you thought about a 3-2-1 buy down program for your home? (This is where the seller buys down the interest rate for the first 3 years of a home purchase for the buyer – saving them, sometimes, hundreds of dollars per month – while costing you less than paying for their closing costs) You could also offer a home warranty. This option only cost between $200 and $400 and greatly increases the buying decision between two homes. (I believe in this one so much I will buy it at my expense for my sellers.) There are literally 100’s of options for homes that don’t sell right away. Yes, sometimes it is price, but it could be the marketing plan. Is your home being marketed to the audience that needs to see it? You don’t want to be looking for a first time home buyer for a $1,000,000 property, and also you don’t want to market in Fortune 500 for a manufactured home. Both are great, but only to the correct buyer.
For more information on your home that didn’t sell feel free to call or e-mail me anytime.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
For more information on your home that didn’t sell feel free to call or e-mail me anytime.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Monday, February 20, 2006
The Tax Man Cometh
So you are thinking of selling you home and you are worried about the tax implications. Well worry no more! The current tax law for the sale of your primary residence, after May 6, 1997, states that you can have up to $500,000 in capital gains for a married couple and $250,000 for a single person. So unless you are single and paid only $10,000 for your home and plan to sell it for $300,000 you don’t have too much to worry about.
One of the requirements of this tax law is that you must have lived in that home at lease 2 of the past 5 years. If you are a married couple and as long as at least one of the spouses meets this requirement then you are eligible for the exclusion.
These restrictions can be waived and your exclusion will be prorated if you are unable to meet the two year ownership and use requirement for any unforeseen circumstances; such as health or relocation of employment. (Check with the IRS for a complete list of eligible circumstances)
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
Todd@IFoundYourNewHome.com
One of the requirements of this tax law is that you must have lived in that home at lease 2 of the past 5 years. If you are a married couple and as long as at least one of the spouses meets this requirement then you are eligible for the exclusion.
These restrictions can be waived and your exclusion will be prorated if you are unable to meet the two year ownership and use requirement for any unforeseen circumstances; such as health or relocation of employment. (Check with the IRS for a complete list of eligible circumstances)
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
Todd@IFoundYourNewHome.com
Sunday, February 12, 2006
Insurance Renewal Time Already?
A lot of insurance companies have their renewal time at the beginning quarter of the year. As the bill gets bigger and bigger each year, you are wondering what to do to lower it.
Here are just a few suggestions:
Finally, review the insurance company’s financial rating. You want to hire a company that has an A+++ rating to insure that the company is strong enough, that if there should be a major disaster, that they will be able to pay your claim.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Here are just a few suggestions:
- Most people insure their home for the cost to buy a new home. When deciding how much to insure your home for, don’t include the value of the land. Only the cost of rebuilding.
- Inquire about special discounts with your present insurer. Are you eligible for a long time customer discount? Can you get a discount for also having your automobile insurance with them? Do they offer a discount to you if you are over the age of 55?
- Ask your employer if they offer a group coverage rate. Just like health insurance, some employers offer home and auto coverage at a discounted group rate.
- Call around! Even through your present insurer may offer long term discounts, it still may be a far better value to go somewhere else.
- Is your home safe? Ask you insurer to do an evaluation of your home and if they give a discount on insurance if this is done. (Smoke Detectors, Burglar Alarms, Carbon Monoxide Detectors)
- Raise your deductible to $1,000 or maybe $2,000 if your insurer will let you. This maybe able to save you over 20% on your monthly payments.
Finally, review the insurance company’s financial rating. You want to hire a company that has an A+++ rating to insure that the company is strong enough, that if there should be a major disaster, that they will be able to pay your claim.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Sunday, February 05, 2006
Investing In Your Future: The Safe Investment
Did you know that in a recent survey seventy percent f Americans view home ownership as the smartest and safest investment you could make? Yet only ten percent felt that way about the stock market.
More and more investors are leaving the stock market and going in to the investment property market. Why is this? One reason is that over the past 5 years stocks have risen in value at about a three percent increase per year. Compare that to the 14%-20% increase in the housing market. Now combine that with people buying that investment property and renting it out, and you have a huge profit machine.
For example: Let us say you bought a $200,000 investment property and it was earning a modest 10% per year. Then, you were able to rent that property for $800 a month for that same year. After one year you would have a capital gain on the property of $20,000 + $9600 in rental income for a total of $29,600. Not many people would complain if their 401K was doing that well.
Time is on your side! Most would be investors major concern is what if the housing bubble bursts? True, this can happen, but look at th1 1980 bubble burst with interest rates nearing 25% on a home loan. The people that held on to their properties that they bought in 1977 for $60,000 were able to make huge profits in the mid to late 80’s when the market recovered. In some cases, they sold the home that dropped in value in 1980 to only $45,000 for $150,000 in 1988 just because they didn’t panic and sell. Time is always on your side in real estate.
For more information on investing in real estate please feel free to call or e-mail me anytime.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
More and more investors are leaving the stock market and going in to the investment property market. Why is this? One reason is that over the past 5 years stocks have risen in value at about a three percent increase per year. Compare that to the 14%-20% increase in the housing market. Now combine that with people buying that investment property and renting it out, and you have a huge profit machine.
For example: Let us say you bought a $200,000 investment property and it was earning a modest 10% per year. Then, you were able to rent that property for $800 a month for that same year. After one year you would have a capital gain on the property of $20,000 + $9600 in rental income for a total of $29,600. Not many people would complain if their 401K was doing that well.
Time is on your side! Most would be investors major concern is what if the housing bubble bursts? True, this can happen, but look at th1 1980 bubble burst with interest rates nearing 25% on a home loan. The people that held on to their properties that they bought in 1977 for $60,000 were able to make huge profits in the mid to late 80’s when the market recovered. In some cases, they sold the home that dropped in value in 1980 to only $45,000 for $150,000 in 1988 just because they didn’t panic and sell. Time is always on your side in real estate.
For more information on investing in real estate please feel free to call or e-mail me anytime.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Thursday, February 02, 2006
Time To Clean Those Gutters
It is cold and wet outside. Welcome to the Pacific Northwest! You walk up to your house. It is pouring outside; you look up, and splash! You get drenched from your over flowing gutters. The gutter is not really there to keep you dry; its main purpose is to protect you home.
The gutter system is designed to direct water away from the wood work of you home and in to the drainage system. If it were not there, water would flow directly in to you home through small cracks in walls and continue on to the foundation. This could very quickly cause serious problems in your home such as dry rot; mold, and flooding. All of these are major issues that can occur if the gutters are not kept clean. To ensure proper drainage gutters should be cleaned 3-4 times a year. By doing this it will actually make it easier to clean each time. You can by an attachment for your hose for just a few dollars to help with this task.
If it is presently raining and you see water running over the gutters and or down the house, this is something you have to fix immediately. Also watch for puddles at the bottom of a drain spout this could also be a sign of improper drainage. The water should flow freely away from you home at all times, even in the heaviest of down pours. Yes it maybe raining and you could do it yourself. But if this isn’t what you have in mind as a fun Saturday afternoon, might I suggest you hire a professional to clean out the gutters? For just a couple hundred dollars, you could save your self thousands in home repair bills in the future.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
The gutter system is designed to direct water away from the wood work of you home and in to the drainage system. If it were not there, water would flow directly in to you home through small cracks in walls and continue on to the foundation. This could very quickly cause serious problems in your home such as dry rot; mold, and flooding. All of these are major issues that can occur if the gutters are not kept clean. To ensure proper drainage gutters should be cleaned 3-4 times a year. By doing this it will actually make it easier to clean each time. You can by an attachment for your hose for just a few dollars to help with this task.
If it is presently raining and you see water running over the gutters and or down the house, this is something you have to fix immediately. Also watch for puddles at the bottom of a drain spout this could also be a sign of improper drainage. The water should flow freely away from you home at all times, even in the heaviest of down pours. Yes it maybe raining and you could do it yourself. But if this isn’t what you have in mind as a fun Saturday afternoon, might I suggest you hire a professional to clean out the gutters? For just a couple hundred dollars, you could save your self thousands in home repair bills in the future.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Sunday, January 22, 2006
How To Make Money and Not Lose It When Investing
People ask me, “How do you make money and not lose it?” First of all, you need write down what your needs and wants for your investments are. Do you plan to hold the property for a long time while renting it out to a tenant? Are you looking for a fixer that you can fix up and sell in 6 months or rent out? Do you want to own commercial property or a multi family housing unit? There are lots of questions that need to be asked before you jump into any investment. Are you an out of town buyer that doesn’t know the area? Some agents will just find you a house that is a deal. Afterward, you find out the mortgage is $1300 a month and the rents in the area are only $700 a month. Wow, are you are going to be in trouble with your CPA!! Even an in-town investor can have trouble from time to time deciding what they need or what they want. A good Realtor will know the difference and will help you put into writing what your long term goals are. If you have any questions about Real Estate investing in Oregon or SW Washington feel free to contact me anytime.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
Monday, January 16, 2006
Things that you should know before relocating
If you are moving from one state to another state toyou may want to look up , a “Salary Calculator”. (I have one you can go to under Buyers on my home page) A salary calculator will take what you make in your city and state and tell you how much you will need to make in Oregon or SW Washington to be living at the same level you are currently used to. Let us say your company offers you a $20,000 raise to move to Oregon or SW Washington and work here. You and your family get really excited about the move until you get here and find out that you needed a $30,000 raise just to remain at the same level you were at in your previous state. But in some cases a $20,000 raise maybe equivalent to a $40,000 raise because the cost of living is so much cheaper here in Oregon. You just need to be careful and talk to a Realtor in Oregon / SW Washington to make sure that the offer from your company really is a good deal or not. In some cases we have people move from one state to Oregon or SW Washington and do very well. These people are able to sell their home in their state, buy a larger home here, and then still have enough to invest in a rental property as a security net for their future. Feel free to call me or e-mail anytime with questions or comments.
Todd Clark – broker
Kastings & Associates
(503)524-9494
IFoundYourNewHome.com
YourLifetimeAgent@Yahoo.com
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