According to REcolorado, the housing market in the Denver metro and surrounding area continued its cooling trend in September. As inventory levels and prices remain steady, the market is seeing a slow shift to one that is more pleasing to the buyer.
There is a new fear among those selling real estate. The fear is that there is a tax on all real estate transactions under Obamacare. There’s no need to worry; not every transaction will be taxed. Let’s look at what this tax really will be.
The tax affects investment properties, and only after certain income requirements. It’s not a sales tax, but a levy tax. The tax was created as a Medicare tax of 3.8% for high income households. Not all real estate transactions are subject to this new tax, nor will all investment transactions be subject to the additional rate.
The first hurdle that needs to be cleared for the tax to apply to your transaction is your household has to earn a combined income of $250,000.00 or greater, and individuals must earn more than $200,000.00. Clearly, this stipulation alone doesn’t apply to the average home seller.
Next, the investment property must have a return on investment above the capital gains threshold of $250,000.00 for an individual or $500,000.00 for a couple.
So, basically you have to earn $200,000.00 individually, or $250,000.00 combined and sell the investment property for more than $250,000.00 individually, or $500,000.00 combined for the Obamacare tax to affect your real estate deal.
Hopefully, this clears up some confusion about the new tax. If you have any further questions regarding selling real estate we will be happy to help you, so give us a call.
It is certainly a seller’s market right now, and bidding wars are more common than not. How can you help your offer stand out from the rest? Consider writing a letter.
Writing a letter is the easiest thing a buyer can do to stand out from other buyers. Think about it: When was the last time you wrote a letter? With email, Facebook status updates, tweets, texts, and all those other places to leave a comment in the electronic universe, nobody sends or receives letters anymore. The fact that you took the time to include something personal in your offer will at least get it a closer look from the seller.
Your letter should include something personal. Appeal to the seller’s humanity. Have children? Tell the seller how much your kids would love playing in the backyard, or how the finished basement would make the perfect playroom. Let them know your dog has never had a yard complete with his own doggy door, and how great it would be. Compliment the crown molding. Wax poetic about the wood floors. However, you have to be honest. Nobody likes a canned or empty compliment. Consider thanking the current owners for making time for their house to be available for a showing.
Keep in mind the best letter won’t make up for a low offer in today’s market. If the house in question is the one for you, make sure to put your best offer on the table. A letter to go with your strong offer will help you stand out in the crowd. If you are ready to purchase a home of your very own, give us a call. We will help you find the perfect house to call home.
The former Marathon Oil research facility, located in Littleton, has been purchased by WIP Littleton Village LLC. It is destined to become Littleton’s largest mixed-use project. Marathon Oil closed its doors 13 years ago, and the 77 acre property has been vacant since.
The approved plans for the site include retail space, single family homes, multi-family homes, open space, and a central park. The site is located between East Geddes Avenue, and East Dry Creek.
Members of Littleton’s city council are excited for Littleton Village to be built. This will be the first time in years
single family homes have been built in the city center. The mayor is hopeful the development will bring an influx of families.
Employees of Littleton Adventist Hospital are thrilled. Littleton Village is located just south of the hospital, and when the residences are complete, employees who live there will be able to walk or bike to work.
The property has been fenced off and is ready for development to begin.
If you are interested in finding a place to call home in Littleton, give us a call. We will meet all your real estate needs.
Don’t expect the crazy loans that were available a few years ago, but you can expect it to be a bit easier to qualify for a mortgage loan.
Several lending companies are relaxing their credit score caveat if you have a healthy down payment. You also need solid, dependable income to qualify for a lower credit score friendly loan.
Some companies are also bringing back low-down payment loans. Some loans only require as little as three to five percent down. You will need a good credit score, and track record with paying debts. These programs don’t include the FHA loans which only require 3.5 percent down.
Stated-Income loans are making a comeback which will help perspective borrowers who are self-employed. These loans are not nearly as easy to obtain as they used to be. You will need a big down payment, and the rates are higher than more traditional style mortgage loans. It is believed that climbing rates are driving these relaxed requirements for obtaining a mortgage loan. As the rates slowly climb higher, it’s likely more lenders will relax their requirements for securing a home loan.
Ready to buy a place to call home? Call us! We would love to help all your real estate dreams come true.