A common reason why buyers want to deal directly with sellers is that they feel they can save the commission. Although a valid consideration, it seems to be the same reason the seller isn’t employing an agent.

However, both parties cannot save the commission. Because the buyer had to find a home, negotiate with the seller and  commission. On top of that, they had to arrange inspections, their own financing and title.

Homeowners with homes for sale in Northern Virginia, feel they have earned the commission due to researching value, title work and financing. Plus they incurred marketing expenses, invested time to be available to show their home, hold open houses and answer inquiries from buyer prospects.

Certainly, there is value in everything that buyers and sellers are willing to do. However, assuming the buyer and seller can reach a written agreement, only one person can save the commission.

For-Sale-by-Owner accounted for 14% of sales in 2003 and 2004 reports The Profile of Home Buyers and Sellers survey. This is compared to just 9% in 2012. The trend is that agent-assisted sales rose to 88% in 2012 compared to 82% in 2004.

Identified as the three most difficult tasks, getting the price right, understanding and performing the paperwork and attracting potential buyers. Sellers, when surveyed, most valued the home selling for an expected amount and in a set time frame. Homeowners with homes for sale in Northern Virginia more often than not are hiring real estate agents to assist with their home sales.

Valuable contributions to the transaction are experienced, third-party advocates helping buyers and sellers which may determine whose commission it is.

If you have tried selling your home on your own and need help, contact me today at 703-322-0600. As an experience Realtor® in the Northern Virginia area, I can help you through the valuation, paperwork and find buyers for your home.

Homeowners with homes for sale in Northern Virginia have found that the housing climate has changed very quickly. Buyers, who still think it’s a buyer’s market have been surprised to find listing prices rising and they are missing their opportunity to buy the home they really want.

Multiple offers are increasingly more common for homeowners with homes for sale in Northern Virginia and buyers are frustrated when even a full-price offer doesn’t guarantee that they’re going to get the home. An emerging trend is buyers including a personal letter to the seller with their offer in an effort to add an emotional appeal and make the offer more personal.

Ideally, a seller wants maximum net proceeds, highest price, least amount of expenses and assurances that the sale will close on time no surprises. A seller looking at multiple offers with close to the same net might take into consideration an emotional appeal from the buyer. That is where the buyer’s letter becomes important.

Write a letter that gets right to the point but is relatively short. Make the tone humble while being positive. Do not mention that you might have lost other homes to multiple offers.

1. Mention an important common feature of the home that is important to you and the seller.
2. Don’t detail improvements you will need to make to justify your offer and don’t criticize the home in anyway.
3. Do tell the seller why living in this home is important to you and your family.
4. Give the seller assurance that you qualify for the loan and if they accept your offer, the sale will be consummated.

Once written, read the letter to your spouse or friend. Eliminate non-essential items. Check your spelling and grammar and polish your verbiage. If handwriting the letter isn’t easy to read, type and print it, but use stationary paper to appeal to their tactile senses. Always hand sign the letter. Submit the letter with your offer so they are received simultaneously.

As a buyer, you will be favorably positioned if you are pre-approved, have good credit, adequate financial resources, good employment, generous earnest money and a reasonable offer with minimal contingencies. Writing a personal letter might be the deciding factor in your favor.

Homeowners, excited about lowering their mortgage rate by refinancing, have a tendency to ignore the costs because they are rolled into their new mortgage. If there’s no money out of pocket and the payment is lower than what they’re paying, it often seems like a good deal.

Being able to refinance your home for sale in Northern Virginia to get a lower mortgage rate is one thing, but be careful not to add several thousand dollars to your mortgage balance because of closing costs associated with that new loan. To reduce the expense of refinancing, follow some of the suggestions below.

• First off, tell the lender to quote the loan with minimal closing costs.
• Check with your existing lender to see if the rate and closing costs might be cheaper.
• Consider a streamline refinance if you are refinancing a FHA or VA loan.
• Compare rates and closing costs by shopping other lenders.
• Credit unions may have lower closing costs because they are generally loaning deposits and their cost of funds is less.
• Reduce expenses by reducing the loan-to-value so that mortgage insurance is not required.
• Ask if the lender can use an automated valuation model or AVM instead of an appraisal.
• If no changes have been made to your property, you may not need a survey.
• There may be a discount on the mortgagee’s title policy available on a refinance.
• Points on refinancing, unlike purchase, are ratably deductible over the life of the loan.
• Build equity faster and pay off the loan in half the time by considering a 15-year loan. Often times you can get a lower interest rate than a 30 year loan if you can afford the higher payments.

Every dollar counts! Within three days of making a loan application, the lender must provide you a list of the fees involved as a Good Faith Estimate. Use this estimate to see exactly what you will be expected to pay outside the mortgage amount. We suggest you consult a lawyer, accountant or tax advisor before making any decisions.

Homeowners with homes for sale in Northern Virginia may have already weighed this option and found they need to sell. I can help you sell too!

Available to homeowners is the Mortgage Interest Deduction for up to $1,000,000 of acquisition debt on both their first and second home. If they have Home Equity debt they can also deduct interest on up to an additional $100,000.

Home Equity Debt can be used for any purpose such as educational or medical expenses, buying a personal car or boat, or consolidating and paying off credit cards, while Acquisition Debt is used to buy, build or improve a principal residence.

Homeowners with homes for sale in Northern Virginia and sufficient equity in their home could replace a credit card with $15,000 debt at 19%  interest with a home equity loan at a much lower interest rate. Now the interest rate gained by the equity loan becomes about 1/3 of the credit card rate and it is tax deductible. You read right, Tax Deductible.

If the taxpayer was in the 28% bracket, the net interest on a 6.5% loan would be 4.68% after tax benefits are considered.

By shifting personal debt to Home Equity debt, a homeowner will get an interest deduction and probably, a lower interest rate. Homeowners with homes for sale in Northern Virginia can earn a net savings by shifting away from higher credit card debt.

For more information, see IRS Publication 936 page 10 and consult your tax professional.

However if you need to sell your primary or secondary residence rather than take on a home equity loan, contact me about my marketing plan and let’s get it sold. Need a new home? We can review homes for sale in Northern Virginia and find your dream home.

During the recession, some homeowners were not able to sell and chose to rent their homes instead.  These homeowners did not need to sell their home at the depressed prices and opted to rent it until the market recovered.

This strategy is valid, but there are time restrictions that could have serious tax implications for some homeowners.

Enter the section 121 exclusion for gain in a principal residence. This requires that the home is used as a main home and owned by the homeowner for at least two years during the five year period ending on the date of the sale.  Section 121 allows a homeowner to rent their home for up to three years and still have some part of the exclusion available.

Selling a home with a $200,000 gain that qualifies as a principal residence would result in no tax being paid by the owner.  Comparably, selling a rental property with the same gain could have a $30,000 or higher tax liability depending on the length of ownership and tax brackets of the investor.

Our housing market has improved dramatically in the last year.  If you have a home that has been rented less than three years, was a principal residence at one time and you have a gain in that home, it might be time to sell it while you still qualify for the exclusion. You may not be alone, there may be many homeowners with homes for sale in Northern Virginia in this same situation.

Be sure to consult with your tax professional for advice when considering a sale on a principal residence that is or has been rented. For additional information, see IRS Publication 523.

Need to sell your primary residence rental property? Contact me about my marketing plan and let’s get it sold. Need a new home? We can review homes for sale in Northern Virginia and find your dream home.

Buyers who lost homes in the past five years, will purchase an estimated 10% of the homes sold in 2013. Approximately 500,000 buyers who may have thought they wouldn’t own a home anytime in the near future will be homeowners again.

Several million of these previous homeowners will purchase again in the next eight years per estimation.  This kind of activity will contribute significantly to homes for sale in Northern Virginia and the housing recovery.

Some people thought that the housing crisis would cause a shift in values placed on owning  homes for sale in Northern Virginia but the boomerang buyers definitely don’t support that theory.  Having a home of your own, where you can raise your family, share with your friends and feel safe and secure is still part of the American Dream.

Increasing prices, rising rents and low, low mortgage rates are also influencing buyers into the market.  In many cases, it is cheaper to own than to rent.

All new buyers, including those who have experienced foreclosures or bankruptcies, must have good credit history and the ability to repay the loan.  Reestablishing credit may not take as long as some would-be buyers might have previously thought.

If you are one of these “Boomerang Buyers,” I can assist you with your new purchasing process. We can review homes for sale in Northern Virginia and find your dream home. Contact me today!

Having low mortgage interest rates can be a drawback if the total interest and property taxes paid are below the amount paid for a standard deduction.  If you plan a little you may be able to improve your situation at least every other year.

Anyone that keeps tabs on their taxes knows that you can deduct your qualified mortgage interest and property taxes on your schedule A on the 1040 tax form.  If your deductions are lower than the standard deductions you don’t use them.   See article “Home Mortgage Interest Deduction” written on March 16^th.

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Everyone knows that if you pre-pay your mortgage you can save a lot of money in interest and you will also build equity faster.  Even though mortgage rates are low right now, they are still higher than what you can earn in a savings account.  If you have a little extra money, then pre-paying your mortgage may be a better idea.   Fairfax VA Real Estate is growing, so by pre-paying now you will have more equity in your home as the home prices increase.

One aspect of pre-paying your mortgage on FHA loans is that you can also benefit by eliminating the mortgage insurance premium.  Here is an example: Let’s say you paid $175,000 with 3.5% down and you have a 4% FHA Loan, the mortgage insurance premium would be around $179.   In this case it would take you 116 months (9 ½ years) to lower your principal enough to cancel the mortgage insurance premium.  But if you pre-paid somewhere around $285 a month that would eliminate the mortgage insurance premium in 5 years.

During the 5 year that you are paying the $285 extra you would have paid $17,100 toward your principal which takes you to a point that you don’t have to pay mortgage insurance premium.  If you did not pay that amount you would have paid $19,332 on the mortgage insurance premium.  Total savings is $2,232 plus you would lower your payment or be able to retire the loan sooner if you kept paying the $285 extra.

On FHA mortgages of longer than 15 years the mortgage insurance premium can be cancelled with the loan-to-value (LTV) ratio of 78% after at least 5 years payments on the home.    So if you do this, then on year 5 you can ask the mortgage company to appraise your home to see if you have reached the 78% of LTV ratio required to eliminate the mortgage insurance premium.

You can also refinance with a conventional loan if your LTV ratio is less than 80% to remove the mortgage insurance premium.  Also remember that if Fairfax VA Real Estate keeps increasing in value that will also improve your loan to debt ratio.

For a FREE report on CD of the 10 Best ‘Insider’ Home Selling Strategies http://www.allfairfaxvahomesforsale.com/  that I extracted from over 8 years on my Real Estate Radio Show interviewing the Industry’s Top Experts.

Get my FREE report on CD of the Top 10 Insider Home Buying Secrets of the Wealthy on How to save $25,000 to $50,000. http://www.allfairfaxvahomesforsale.com/form-save-thousands.php.  We use these same proven strategies every day.

People have gotten used to staying comfortable in their homes.  Your air conditioning and heating system are the “comfort systems” for your home.  If you have ever had problems with these on a hot summer day or a cold winter night, you know how uncomfortable you can be.

These are also great tips if you are planning on selling your Fairfax VA real estate.

You should have a maintenance checklist that you set up in your calendar, so that you don’t have to suffer the loss of these.

Periodic Maintenance

• Every 90 days you should change your filter.  If you have pets, then you may want to do this every 30 days.
• Keep a clearance space around your heat pump or air conditioner unit outside.  These can get clogged and run less efficient when they have plants or other things blocking air flow.   A two feet clearance area should be sufficient.
• Leaves, lint, grass clippings, paper or other things can block the circulation of coils on your outdoor system.  Keep this area clean.
• Insulation on refrigerant lines going into the house can be lost or damaged, you should check this regularly.
• Make sure your pad that supports the air conditioner or heat pump is level and has not settled.
• Pour a little bleach in the air conditioners condensation drain to clear algae or mold.  These can cause a clog.
• Never close more that 20% of the vents in your home.  Your system works harder when these are closed.
• Replace your batteries in smoke and carbon monoxide detectors.

Annual Spring Maintenance

Although it is great to do these things, you should have your system checked by a licensed contractor.  It is a good idea to have your heater system checked for carbon monoxide leaks and make sure it has no gas leaks.  .  If you’d like a recommendation or want to know more about Fairfax VA real estate please contact me.

For a FREE report on CD of the 10 Best ‘Insider’ Home Selling Strategies http://www.allfairfaxvahomesforsale.com that I extracted from over 8 years on my Real Estate Radio Show interviewing the Industry’s Top Experts.

Get my FREE report on CD of the Top 10 Insider Home Buying Secrets of the Wealthy on How to Save $25,000 to $50,000.   http://www.allfairfaxvahomesforsale.com/form-save-thousands.php.   We use these same proven strategies every day.

Thoughts and choices

If you are trying to decide to take standard tax deduction or itemize when filing your income tax return, you need to look at what gives you the highest return.   Most people that make over $75,000 a year itemize their deductions, but with lower interest rates is this wise?

For 2012 a standard deduction of $11,900 is available to married couples and $5,950 is available for singles.   These are standard deductions that every person can take.  So this is the minimum that you should expect.

Now let’s look at the numbers.  If you are married filing jointly and you have a $150,000 mortgage with a 3.5% interest rate, the standard deductions would give you $2,650 larger deduction than itemizing.    In this example you would have paid $9,250 in interest and property taxes versus $11,900 for the standard deduction.  Let’s say the couple was in a 28% tax bracket, then they would have saved $742 using the standard deduction.

In the past mortgage interest rates were higher in the Fairfax VA Real Estate market, so your taxes and interest rate would have been much larger and it would have been automatic for you to itemize your deductions.

Today you should really analyze whether this is beneficial.   Also you need to consider your other deductions.   Medical expenses, losses, contributions all need to be considered, because you add them to your itemized mortgage interest, so you  need to talk with a Tax professional that can compare your itemized versus standard deductions.   If you have questions about the Fairfax VA Real Estate market, please contact me.

You can consult a tax advisor and see http://www.irs.gov for more information.

For a FREE report on CD of the 10 Best ‘Insider’ Home Selling Strategies http://www.allfairfaxvahomesforsale.com/  that I extracted from over 8 years on my Real Estate Radio Show interviewing the Industry’s Top Experts.

Get my FREE report on CD of the Top 10 Insider Home Buying Secrets of the Wealthy on How to save $25,000 to $50,000. http://www.allfairfaxvahomesforsale.com/form-save-thousands.php We use these same proven strategies every day.