Although not for the same reason as our once brisk housing market of the mid-2000’s, today’s home buyers are once again faced with contending with others for the same home. Who would have thought? This returning dilemma is due to the shortage of homes on the market and the pent-up demand for affordable housing, both of which are due to low mortgage interest rates and current home prices, the lowest since the early l990’s.

Even here in West Michigan, Realtors are experiencing a shortage of homes for their clients. Networking is becoming more frequent among agents and buyers are beginning to understand that they must be ready to have an immediate response, if a house comes available that meets their needs. Actually, “sold before broadcast” listings are hitting our local SWMRIC Association, which is both refreshing and a bit daunting!

Basics of a Credit Card Score and how it relates to buying your Grand Rapids Home

Lenders use credit scores to assess your ability to pay your bills. We Americans (and more locally Grand Rapidians) have many credit scores, not just one, and these scores can change daily or whenever there is activity or a new piece of information.

The credit score “model” was created by the three major credit reporting companies: TransUnion, Experian and Equifax. There also exists another model, created by Fair Isaac, which is called FICO and it is most commonly used to determine ones credit worthiness, which is typically used by mortgage lenders.

The spring market for Grand Rapids, Michigan real property sales is upon us. In fact, it seems to me that there isn’t a start or beginning—it just happens. Each year is different. Is it the weather pattern, favorable economics, mortgage interest rates, or fairy dust (?!) that determines "The Date"?

Interestingly, after networking with agents outside of our West Michigan region, reading the local Grand Rapids and national news, and listening to the radio, it becomes clear to me that West Michigan’s market is not unlike markets that are hundreds of miles away from here. It is also clear that we are already in the spring market.

Are you aware that almost 6-MILLION American adults (ages 25-34) are living with their parents? These young people are “prime” would-be, might-be clients for buyer-agent Realtors. This number of youth represent close to a 50% increase since 2003 available statistics. If you are among the “parents” supporting your adult children, there is no better support for today’s Realtor: You, as parents, are encouraging your children to buy real property! Yes!

Middle-aged parents, who are home owners themselves, not only understand the benefits of owning a home but are happy to encourage and help their family with what they consider to be a great long term financial investment as well as a true value in today’s economy. Homeownership usually does lead to long term wealth.

Per my email friend and broker in New Hampshire, Mary, here are the real facts behind the Obama healthcare bill: “In the healthcare bill is the additional Medicare tax due on investment income. It is applicable IF the taxpayer has an income of over $250,000. If ones investment income (interest, dividends, capital gains and real estate investment property income and gains) is over $250,000, it is taxable at 3.8%. It is NOT a sales tax. It is NOT just a tax on real estate. It CANNOT apply to a personal residence, because that is not an investment property. It MIGHT apply to the gain on a second home and it will most likely apply to rental property. REMEMBER, ones income has to be over $250,000.”

Beginning in 2013, the national health care reform legislation that became law in March, 2010, imposes a new 3.8 percent tax on certain investment income. The new tax will apply to single filers with incomes over $200,000 and married taxpayers with incomes over $250,000. Under the law, the investment tax provisions in Chapter 2A of the Internal Revenue Code are placed under the heading “Unearned Income Medicare Contribution.” In general, this new Medicare tax will apply to investment income that is subject to income tax, which includes capital gains. Pursuant to IRC Section 1402 (C)(1)(A)(iii), the investment income to which this new tax applies includes “net gain” (to the extent taken into account in computing taxable income) attributed to the disposition of property that qualifies as a capital asset under Section 1221 (capital gains), as well as gains on other property that are considered part of ordinary income.

Proper Pricing & Help:   "Staged To Sell" By Julie

With fewer homebuyers in today's marketplace, we agents need all of the help we can get!  Clients that understand the dynamics of our economy are a true blessing.  They are proactive, appreciative and willing to do whatever it takes to make sure their home is the one that sells!

Are you in the saving mode?  Here are ten tips to make your household more energy efficient!

Forced air heating systems work best where air can flow freely:  Rearrange your furniture.

Which is most important, buying a home or money?  Indecision may be a costly mistake.  There is no formula for rock bottom, best price or finding that last little bit of depreciation when purchasing a home.  In truth, if one were to find that ultimate bargain, the mortgage rates may not be at the historic lows we’ve been enjoying.

Why buy a home today?  Owning a piece of our American dream gives one a quality of life:  a great school for families with children, a location near work, or having a close proximity to family and friends.  If one can experience income stability, have the financial situation of savings and the ability to shoulder costs of home ownership, there only remains a long term commitment to stay and enjoy!  Are you straddling the fence?

This piece from The KCM Blog has so much interesting information regarding homeownership.  Click to read more...