http://www.trulia.com/blog/taranelson/2013/04/5_emotional_mistakes_sellers_make?ecampaign=cnews201304B&eurl=www.trulia.com%2Fblog%2Ftaranelson%2F2013%2F04%2F5_emotional_mistakes_sellers_make

-Mark Brace

US top Cities for Job Growth

-Mark Brace

The National Association of Realtors has prepared a new guide on the 3.8% tax affecting some real estate transactions. The tax is not a transfer tax on real estate sales and similar transactions (The Real Estate Transfer Tax is a tax on the sale, granting, and transfer of real property or an interest in real property).  Not long after the tax was executed, misleading documents went viral on the internet and created a great deal of confusion. Due to this confusion the tax was generally misunderstood.  

The new tax does NOT eliminate the benefits of the $250,000/$500,000 exclusion on the sale of a principal residence.  Therefore, only that portion of a gain above those thresholds is included in Adjusted Gross Income (AGI) and could be subject to the tax.

For example: John and Mary sold their principal residence and realized a gain of $525,000. They have $325,000 AGI (before adding taxable gain). The tax applies as follows:

AGI Before Taxable Gain $325,000 

Gain on Sale of Residence $525,000

Taxable Gain (Added to AGI) $25,000  ($525,000 – $500,000) 

 New AGI $350,000 ($325,000 + $25,000 taxable gain)

Excess of AGI over $250,000 ($100,000)= ($350,000 – $250,000)

Lesser Amount (Taxable) $25,000 (Taxable gain)

Tax Due  $950 ($25,000 x 0.038).

REALTORS® should familiarize themselves with the tax, but should advise upper income clients or clients who have a large capital gains to seek the guidance of a tax professional.  The amount of tax will vary from individual to individual because the elements that comprise AGI differ from taxpayer to taxpayer.

Sources and links:

http://www.realtor.org/topics/health-care-reform/top-10-things-you-need-to-know-about-the-38-tax

http://speakingofrealestate.blogs.realtor.org/2010/11/24/the-3-8-tax-is-not-a-real-estate-transfer-tax/

http://www.realtor.org/small_business_health_coverage.nsf/Pages/health_ref_faq_med_tax?OpenDocument

Below is a chart listing the tax changes with the expiration of the Bush tax cuts.

http://www.realtor.org/small_business_health_coverage.nsf/docfiles/government_affairs_health_ref_marg_tax_rates.pdf/$FILE/government_affairs_health_ref_marg_tax_rates.pdf

http://www.revenue.nh.gov/faq/dra_800.htm

http://www.ksefocus.com/billdatabase/clientfiles/172/8/1437.pdf

Affordable home energy audits are available in the Grand Rapids area.

Normally, these consultations would cost $300-$400, but the State of Michigan has designed a program through BetterBuildings for Michigan with $30 million in federal grant money to help homeowners reduce energy usage. This is available in Grand Rapids currently.

Before you decide that this will not save you any money in the future, or even right now, you should think about the facts of having a free home energy audit. Many people have reported that after having an audit they saw savings as low as $235 and as high as $800 a month.  Seems like a no brainer right? 

The Team installs energy efficient light bulbs, showerheads,faucets, and programmable thermostats at no additional charge. The team can also consult you on whether or not your old appliances are weighing down your electric usage.  The team will suggest alternative solutions to help lower your energy costs. Speaking of costs, the team offers financial assistance to people who are wanting to take greater diligence in reducing energy consumption. There are rebates available for this of up to $5000.

BetterBuildings for Michigan in Grand Rapids: 616-451-3051 ext. 40 or go to MIHomeEnergy.org

 There is only $15 Million reserved for this. My best guess is that this may only be available for 2 weeks in Grand Rapids since it is on a first come first serve basis. This is part of a nationwide class action lawsuit, so it is not the same as the first time home buyers assistance of the past where there is a chance for more funds to be allotted. A $3,000 grant is available for first time, non-military buyers, and a $5,000 grant available for first time buyers who are veterans, or currently active in the military.

 Files must be fully approved and clear to close before they can be sent to MSHDA for approval of the grant. That being said, anyone who is out looking at homes currently may not have a chance to get these funds. Most likely only those buyers with files in process at this time.

 Funds can only be used towards:

• Down payment
• Closing costs
• Pre-paid items

Any funds that are not used toward the above can be used to execute a principal reduction at close. (No cash back at close except for EMD, or application fees).

•  No re-payment of grant and no income restrictions
• Valid for FHA, RD, VA, Conventional, and JUMBO purchase mortgages
• Payoff of a land contract not acceptable
• Buyer purchasing a home for cash, not eligible for grant

 IMPORTANT:

• Title Company must be approved through MSHDA to receive these grants as the money comes directly from MSHDA to the title company. PLEASE make sure your title company is signed up and approved for this grant.
• From the time that our file is clear to close, until we can close with this grant program, plan on 10 days. This could cause delays or needed extensions with the purchase agreement.

-Mark Brace

Below is a link for an awesome video showcasing the best breweries in Grand Rapids, and also below are more detailed articles on G.R winning Beer City USA 2012.

http://www.youtube.com/watch?v=7BMQ6cc5DJs

http://www.examiner.com/article/grand-rapids-asheville-share-beercity-usa-2012-title

http://articles.chicagotribune.com/2012-08-12/travel/ct-trav-0812-grand-rapids-20120812_1_leinenkugel-beer-city-usa-darker-beers

-Mark Brace

ABC's weekday hit "The View" interviewed nationally renowned real estate mogul and expert Barbara Corcoran, on Where the best place to buy in America are. She listed Grand Rapids MI real estate the #1 place in America to buy real estate!!!!

ABC's "The View" Click to see her interview:

Barbara Corcoran Mentions that a typical home is $108,000, and prices are going up quickly! That $150,000 will buy you a Castle! "which is all true" She also said the cost of living is also 15% lower than anywhere else in the country. That Grand Rapids has lots of jobs and lots of good schools, which always assures good real estate values.

I'm so happy Grand Rapids is finally getting the national attention it deserves; it is such a cool place to be with ArtPrize and all of the local philanthropy from business owners, and being very close to some of the best fresh water beaches in world. We have been also working our way to become the microbrewery capital of America too!!! It seems like every other week a new microbrewery is opening. If you haven't figured it out yet Grand Rapids is the Place to be!!!

Sometimes the home you think you don't like ends up being the best one, after you see everything that is available.

I think more and more home buyers in the Grand Rapids, MI area are starting to feel like this since we are sooo short on quality inventory!

Zac Ellerbroek

Loan Originator – Lake Michigan Credit Union / Knapps Corner

616-234-6864 – Direct

616-893-6024 – Cell

616-643-0783 – Secure Fax

NMLS# 138717

To Send Secure E-Mail Click Here

2. Make sure the home isn’t being overshadowed outside. Nothing kills curb appeal more than a home you’re selling that you can’t even see. Be sure to trim trees or bushes to ensure they aren’t blocking any windows or the exterior of the home.

3. Remove wallpaper. Wallpaper and borders can be a nuisance to remove so you might want to take these personal decor touches down before you list the home. Neutralize the homes in subtle colors that will appeal to the most buyers and allow buyers to better visualize their personal decor moving in.

4. Don’t keep an empty home empty. Buyers can struggle in picturing themselves moving in if a home is left empty. Vacant homes can feel cold and rooms can look smaller than they really are. That’s why O’Ryan reminds us why builders spend thousands of dollars staging model homes. If your listing is vacant, consider staging it to bring in furniture and accessories to help define the various rooms functions.

By Melissa Dittmann Tracey, REALTOR Magazine

A small stain on the carpet? Forget it. Distracting paint colors? They can’t look past it. No granite countertops? Onto the next house!

As home values drop, offering buyers some of the best bargains in years, more home buyers have realized they can get more choosy when home-shopping. And with inventories high in many areas, sellers realize their home needs to exude perfection if its going to stand out.

During the housing boom a few years ago, buyers were more willing to overlook flaws, or accept them, that is. They may have negotiated with the seller over repairs or upgrades, but some buyers were willing to even take the home “as-is” to win a bidding war or to get the home in the area they wanted.

Times have changed.

Even first-time buyers, who once were lured to the “starter home” (a.k.a. a fixer-upper), are getting choosier. A Coldwell Banker survey earlier this year found that 87 percent of first-time buyers say they want a “move-in” ready home over a fixer-upper–and they want it to be affordable too!

Buyers are “missing out on some excellent, older lived-in houses,” Holly Kirby Weatherwax, a real estate professional in Reston, Va., told the Toledo Blade. “It’s a shame, simply because they can’t overlook” flaws that wouldn’t have bothered most buyers in the previous two decades. Those flaws could be anything from minor imperfections like kitchen appliances by different manufacturers to the home’s color not matching the buyer’s furniture, Kirby notes.

“Anything that can be a distraction, you want to eliminate,” a Tennessee home seller noted in a recent news article. “A light bulb isn’t a big issue, but it can affect [buyers’] subconscious.”

So how did buyers get so picky anyway? Is it just the power of a buyer’s market? Some also blame the rising popularity of home design shows on TV for making buyers more selective when viewing homes. But in recent months, more home design TV programming is showing a slight shift to fixer-upper housing make-overs, showing how a home’s flaws can be overcome to still become a dream home. Will such TV shows eventually make more buyers give less-than-perfect homes a second chance?

Until then, before the for-sale sign goes up, more sellers are heeding the advice of their real estate agent to clean, paint, upgrade and stage to avoid lowball offers. Plus, with the huge glut of low-priced foreclosures, such finishing touches may help home owners rise above the competition.

By Melissa Dittmann Tracey, REALTOR® Magazine

Read the full article by clicking the link below:

http://www.marketwatch.com/story/the-10-best-places-to-live-in-the-us-2011-08-02

With all else being equal, home buyers prefer the look of an uncluttered home over one that is stuffed with “stuff.”  Why is this?  Uncluttered homes tend to look cleaner than ones where there are piles of books, boxes, and other items lying around.  A highly cluttered home also gives the perception of having less square footage than it really does.  And when potential buyers see open floor areas and unbroken wall space inside your home, they can more easily envision their furniture and other belongings fitting into that space.

But how can you move all that stuff out of sight without marching it down to the basement or jamming it all into your closets?  After all, prospective buyers will walk through those areas of the house also.

Consider renting temporary storage space.  Self-storage facilities offer a convenient way to relocate items that can clutter up a home.  These facilities, commonly called “mini-storage,” are fairly numerous in most towns and offer spaces with different storage volumes.  These units can be rented on a monthly basis and may be just the solution you are looking for.  All you need is a truck and some helpers to move the clutter out of the house ahead of that open house this weekend.

An even more convenient temporary storage solution for the home seller is a portable storage unit.  These enclosed containers are delivered to your home and securely protect your belongings from the outside elements.  They are especially handy when you are moving from one home to another.  The units can be loaded up at your old home and transported to your new house where they can be unloaded at your convenience.

Whether your house is located in Grandville, Ada, or any other Grand Rapids neighborhood, making your home stand out from all the others in this real estate market is an important component in getting it sold faster.  Decluttering your home by utilizing temporary storage may make the difference between going through yet another open house and finally hanging that SOLD sign in what will soon become your old front yard.

Brian Sinnott is with Zippy Shell of West Michigan, a trusted provider of temporary self-storage in Grand Rapids

Buying up in a down market is actually advantageous because while you might get less for the home you're selling, you're also getting the larger home for less.  For instance, if you had to sell a $200,000 home for a 10% discount, you might feel that you left $20,000 on the table.  However, buying a $300,000 for the same 10% discount would put you $10,000 ahead on the sale and purchase.

The other obvious matter is that when the mortgage rates increase while you're waiting for the market to improve, it dramatically increases your cost of housing with higher payments.  The cost of housing is affected by price and mortgage rates.

To accurately evaluate your current options, you need facts and assessment tools that will provide you the information to make an informed decision. Contact me, Mark Brace, today to discuss your options. Whether buying or selling I am here to help make the process enjoyable and exciting! 

First 3 Paragraphs Taken from Pat Zaby's Blog

Via CNN Money.com talking about Grand Rapids:

In the late 19th and early 20th centuries, lumberjacks took down many square miles of Michigan's hardwood forests to feed the numerous furniture makers of this city in the center of the lower peninsular. There are some furniture makers left, but they tend to use metal rather than golden oak.

There's been a gentle slope to population growth over the post-war years; the metro area gained about 5% during the past decade.That means low demand for housing and the median price of about $80,000 in early 2011 is down about 10% from the boom years. A tidy three-bedroom home can be bought for less than $90,000.

Still, gardeners need  to make judgment calls. How much water does this shrub need? Will that tree get enough sun? Is this hole deep enough? It’s easy to misjudge and make a mess out of the landscaping. Here are common garden blunders.

1. Too many changes too soon. The excitement of warm spring weather often creates a passion for yard work. But what looks like a spring weed might be a fall-blooming vine. Encourage buyers to: Live with their land for a year and observe how many hours of sunlight each part of the garden gets. Test the pH of the soil to determine if acid- or alkaline-loving plants will be happy in that particular patch of heaven.

2. Too much togetherness. Trees and shrubs that look properly spaced when you plant them will crowd each other and compete for water, sun, and nutrients in a few years. Encourage buyers to: Read spacing instructions. Give trees plenty of space—they can always fill in later. Stagger bushes and plants and create two rows, which will create more breathing room. The results will look absurdly sparse at first. But live with it. In a few years, shrubs will fill empty spaces without suffocating each other.

3. Planting without a plan. Planting new garden beds without a long-term landscape plan is like pouring a house foundation without blueprints. Encourage buyers to: Draw a simple sketch of their yard—what’s there now and what they might add later, including patios and pools. Learn about the trees and shrubs that grow best in their soil and climate. A professional landscape designer can create a starter plan for as little as $250 to $500.

Taken from Realtor Mag

Source-Rick Newman of USNews, On Tuesday December 21, 2010