Own a Home Pay Less Taxes

It's that time of year again, and most of us are diligently trying to come up with as many legal deductions as we can so that we owe less to Uncle Sam and can keep more in our own pockets.

The mortgage Interest deduction continues to be the "number one" largest deduction that a homeowner can enjoy and is happily reminded of at this time of year. Still in place, this deduction can be applied against thousands of dollars of income and you get to enjoy the benefit of owning your own home instead of forking over the money to Uncle Sam each year.

If you are still renting, you are paying your landlord's mortgage so why not consider putting this opportunity to work for you instead. This is often easier than you think and yes, the banks are making loans, contrary to what you may have heard!

Amazingly, some are waiting for property prices to fall even further and are so focused on getting the lowest price, that they are missing out on a great opportunity now. Today is the best day to buy, not tomorrow or next year. Home prices have not been this low for over 10 years! Interest rates are unbelievably low. This period is called OPPORTUNITY and is a period that is allowing many to enter the door of homeownership that were shut out before because prices were so far out of their reach. Haven't we always been taught that when opportunity knocks, open the door?

Don't be fooled into thinking that this current housing situation will last forever. If you look at the historical graphs of the increases and decreases of home values, you will see that we are right on course. A lot of what we hear on the news, including the internet, is either incomplete or inaccurate.

Owning your own home is still the American dream and over 80% of Americans still feel that way. My advice to you is to never give up on your dreams and find out today if you are in a position to buy a home. If you aren't quite ready now, a good Realtor or mortgage lender can evaluate your current situation and put you on track to possibly buy a home by this time next year!

Talk to your tax advisor and ask them how homeownership will save you money. Since I am not a tax professional, I cannot give you tax advice, but as a Realtor for over 30 years and a homeowner myself, I can confidently assure you that this is something that you should get proactive on right now!

Nancy Puder is the owner and broker of Signature Properties, a prestigious real estate sales and property management firm in Arroyo Grande, CA. You may reach her at 805.710.2415 or email Nancy@NancyPuder.com. Website: http://www.signatureproperties1.com/. We always enjoy hearing from you!

Looking out for Landlords

Looking out for Landlords

Whether you are a new landlord or have held this title for a long time, there are some important tips that can help make the management of your properties simple and profitable.

The number one thing that seasoned landlords understand is that time is money. For instance, if the value on your rental unit is $1500 per month, that means that every single day it sits vacant, it is costing you $50 per day.

Now close your eyes and imagine yourself putting $50 cash into an envelope each day there is no occupant in your rental and then when it finally does rent, take all of those $50 bills and put them in the shredder. Sounds radical? Does 3 weeks not sound like a lot of time? Your thinking may change if you were going down to the bank and withdrawing $1000 in cash and then throwing it away!

The point is that if you are going to be a landlord, think smart. Once you know that you are going to have a vacancy, immediately begin your marketing plan to obtain a new tenant. I highly recommend that you visit the property the same week that you get the notice, so that you can determine any work that may need to be done prior to the next tenant moving in. This is also a good opportunity to make your tenant aware of damaged items that they will be charged for if not corrected prior to their move.

Schedule the work in advance beginning the day after the property is vacated. I cannot express this strongly enough. Allow the minimal amount of time possible to complete the work and move your new tenant in as quickly as possible. Don't forget to do a very thorough walkthrough, take pictures and give your tenants copies of the pictures along with the signed inspection. A word of caution..Do not give the keys to the tenant until you have completed this process!

Now, since I know that you have written an excellent rental contract after conducting a thorough background and credit check on your tenant, be sure to enforce timely rental payments and make any necessary repairs that come up immediately. Since you have found a great tenant, treat them well as long as they are holding up their end of the agreement. A great tenant will typically appreciate you and the property and you will often keep them for a long time and enjoy uninterrupted income.

For more information on how to choose a good tenant, tips on how to choose a great property manager, rules regarding security deposits and other matters concerning landlord issues, go to http:http://signatureproperties1.com/ or you can email Nancy@NancyPuder.com or call (805)710-2415. We always enjoy hearing from you!

Nancy Puder is the owner and broker of Signature Properties, a prestigious real estate sales and property management firm in Arroyo Grande, CA

What Should I Expect From My Realtor?

What Should I Expect From My Realtor?

Q. We recently decided to start looking for a home and began calling on a few properties for sale. As a result, we have one agent who is sending properties by email. The problem is whenever we want to see one of the properties, he is always busy with his kids. He also says that we need to go get pre-qualified, but we don't know where to go. He is a nice guy but we feel like we are stuck.

A. You are right to question this agent's ability or level of desire to represent you well in the biggest purchase you have ever made. There are lots of agents out there, but not as many who operate professionally and as a business. Sadly, the general public is often unaware of this and end up in a situation like yours and do nothing about it.

It is very important to feel good about your relationship with your agent and to know that your aget has your best interests in mind. While no one should be expected to work on demand, a professional agent will have a backup system and other agents in place to accomodate their client 's schedule on those occasions when they are not available. A good agent will also personally introduce you to one or two reputable lenders in the area and will help walk you through the process.

You should feel free to look around for another agent who is as excited about you buying a home as you are. I recommend that you look for an agent who is experienced and who has a good track record of selling homes even duing the past couple of years. A good agent will not tell you that their performance is based on the market because a good professional agent should be able to naviagate through any market, adjusting their game plan so that they continue to sell homes and serve their clients. If your agent is telling you that they haven't sold much because of the market, that is a sign that they may not have the skills necessary to give you the representation you need.

Once you find an agent that you feel comfortable with, stop speaking to other agents. A great agent will give you what you need to have a successful experience but you should return the trust by only working with them from that point forward.

Nancy Puder is the owner and broker of Signature Properties, a prestigious real estate sales and property management firm in Arroyo Grande, CA. You may contact her at (805)710-2415 or email Nancy@NancyPuder.com http://www.signatureproperties1.com/. Your calls are always welcome!

Five Reasons Why Homes Don't Sell

Five Reasons Why Homes Don’t Sell

With the market now returning to a normal rhythm, some homes sell right away, but often some sit on the market for several months. It can be a very frustrating time for homeowners when they need to sell but just can’t find a buyer.

The best thing to do in this situation is to step back and examine why there is no interest in your property and what you might need to do to attract potential buyers.
Here are five reasons why your home may not be selling.

1. Want to sell your home but it won’t sell?
Perhaps it is over-priced! Everyone wants the best price when they sell their home but it is important to be realistic when you list your property. Over-pricing is the most common reason that homes don’t sell. The truth is, ultimately the buyer, not the seller will determine the price of a home. You must take a look at comparable properties in your area and determine whether you have priced your home at the high end of the curve.
2. Maybe it doesn’t show well?
Even the best kept older homes show their age. The good thing is that you can make some relatively minor changes that will enhance the buyer appeal. The absolutely number one best bang for your buck is paint. Think $10 in the can and $1000 on the wall! Touching up the rooms will give the house a fresh appeal and a clean smell.
3. Bad real estate agent
Yes, they do exist. While most agents are hard-working and earn their commissions, there is always the chance that your agent just isn’t up to the job. If your agent is difficult to work with and doesn’t communicate clearly and frequently, chances are you may have to start looking around for another representative.
4. Poor or ineffective marketing to try and sell your home
It used to be a “for sale” sign and an advertisement in the paper would be all the marketing you would have to do to sell your home. Nowadays, most agents use a multi-level system which may include professional photography and extensive internet advertising. Talk to your agent to see how much exposure your home is getting in digital media.
5. Location.
If your neighborhood is in a less than desirable area, next to a noisy highway, or has a large number of messy neighbors, your location may just be the problem. The bad news is there is nothing much that you can do about it. The other side of the coin is to lower your price. It may not be your number one choice to sell your home, but if your location is bad, it just might be the only way.

Take a few moments to consider these suggestions and how each one may apply to you. Sometimes it’s a question of getting good advice from the right real estate agent. Nancy Puder is the owner and broker of Signature Properties, a prestigious property management and real estate sales company in Arroyo Grande, CA. You may contact her at (805)710-2415 or email Nancy@SignatureProperties1.com

Landlords Should Make Repairs Now

Landlords Should Make Repairs Now

As we all know, a repair made sooner is usually handled more simply than one that is done much later. This is because most problems only get worse when left unaddressed. The cost that we are trying to save by putting the repair off until “later”, often ends up costing us 2-3 times more than if we had just fixed it (and fixed it right) in the first place!

I think that some landlords honestly believe that the tenant should just be grateful for a place over their heads and actually get irritated when the tenants ask to have repairs done, or worse, improvements to the property! Of course, I’m teasing “those few of you out there” a little, but for some of you, it hurts to hear this.

My company has worked with landlords for many years now and has helped many of them to bring their properties up to a standard that a good tenant expects. (Now…if you are satisfied with below average tenants who only pay their rent sometimes and who aren’t interested in a nice, clean residence and enjoys living like a slob, this article won’t be for you). But, if you want a nice, clean tenant who treats the property in a respectful, appreciative way and who runs down to pay you on the first of the month, every month, then you may want to hear the rest of what I have to say.

It makes sense that a tenant will want to get the most they can for their rental dollar and feel safe in their surroundings. That said, It is almost always less expensive to make repairs immediately, than to delay action and allow the problem to worsen. Ongoing preventive maintenance to reduce the need for large maintenance expenditures should be the goal of all landlords. This approach makes good sense and, ultimately, provides more profit for the owner.

When there is a tenant move-out, the landlord should not be only concerned with what they are going to charge the out-going tenant before their security deposit is returned. Normal wear and tear should be expected. The realistic landlord should usually factor in some expense out of their own pocket to keep the property in optimal condition in between tenancies. Some landlords feel that the outgoing tenant should bear all of that cost, however, the law actually forbids landlords from charging the outgoing tenant cost of normal wear and tear.

There is a law in effect, since January 2004, that gives the tenant a right to a pre-inspection prior to their move-out. This is a good time to take a good look and start making plans for perhaps paint, if needed, minor or larger repairs, replacement of toilet seats, etc.

It has been my experience that a happy tenant is usually a good tenant. I am, of course, not referring to the constant complainers who are never happy with whatever you do. My advice is to establish good communication when you show the home to a prospective tenant and do a thorough walkthrough. This will all but eliminate complaints shortly after their move in and throughout their tenancy. Let the tenant know that you are trusting them to take good care of the property and that you can be reached easily if there is a concern.

If you have any questions concerning your rental property, please call me anytime at (805)710-2415 or email Nancy@SignatureProperties1.com. I always enjoy hearing from you! Nancy Puder is the owner of Signature Properties, a prestigious real estate sales and property management firm in Arroyo Grande, CA.

Becoming a Real Estate Investor

Becoming a Real Estate Investor

Becoming a real estate investor can be one of the best decisions that you will ever make to ensure your financial freedom. You don't have to invest a lot of money to be an investor, but you do have to be smart in how you go about it.

If you have heard that real estate is no longer a good investment, do not believe it! Think about it this way. Can you go to a bank and ask them to finance an investment in the stock market? Imagine yourself, with good credit, going into your financial institution and telling them that you want to purchase stock and that you have 20% down, but you would like them to finance the rest. If you don't already know what they will say, I will tell you. The bank will politely say that they don't finance investment in the stock market because it is too much of a risk. That is if they even bother to explain it at all.

Ask the bank the same question about investment in real estate and they will most likely thrust an application in front of you and begin to try and convince you that their bank will be your best choice to obtain your financing goal to purchase real estate. Why do you think that is? It is because the most financially intelligent minds that run these financial institutions understand that no matter what the economy or current market conditions, real estate is always a good investment.

Think about how simple real estate is to keep track of too. There are only 5 components to think about: foundation, structure, hvac ventilation, electrical and plumbing. Compare that simple formula to all of the intricasies of the stock market that need to be kept track of for several hours each day!

Keep in mind that It is important to understand that cash flow should be your number one goal when purchasing an investment property. The amount of your down payment will determine your cash flow amount in most cases. In addition, different geographical areas will typically require more down than others to achieve this purpose. Always remember that appreciation should always be considered a bonus only. Try not to buy emotionally and do the math.

Statistics show that 90% of millionaires made their fortune by investing in real estate. If you are thinking of taking that first step or need some help getting started, I recommend that you contact a real estate professional who understands the investment process and who will help guide you to your financial success!

Nancy Puder is the owner and broker of Signature Properties, a prestigious real estate firm in Arroyo Grande. Contact information is 805.710.2415 or Nancy@SignatureProperties1.com.

Reasons Why Sellers Should List Their Homes In January

Reasons Why Sellers Should List Their Homes In January

Reasons that sellers should list their homes in January. The holidays are behind us again and here we are about to experience a new year in 2012. If you have been contemplating on whether to sell this year, this is a good time to put your home on the market. Let me explain why.

One reason is that many buyers have put their home search on hold over the holidays. As the decorations are being put away, most people reflect on the past year and think about how they would like to improve their lives over the next 12 months. Often, these thoughts include a move whether up or down or for the first time.

Another reason to sell now is that buyers have pent up energy after trying to gauge what the market is going to do over the past couple of years. They are beginning to realize that prices have stabilized in many areas, homes are affordable and interest rates are historically low. Those who have been waiting for the bottom are making the decision to go forward now.

The mortgage interest deduction is a big factor as people are beginning to think about what they will pay in taxes soon. The mortgage interest deduction is still a wonderful opportunity to pay less to Uncle Sam while enjoying the benefits of owning your own home. Most buyers realize this and resolve to get into a home so that they will have a big tax deduction to write off next year.

Retirement is also a factor in buyer decisions to move forward at the first of the year. As we all know, the Central Coast of California is one of the most beautiful areas that someone can choose to retire in. Many of these buyers are purchasing their retirement home now and leasing it until they are ready to actually move.

After a long slump in the market, this buyer energy is exciting and should be taken advantage of. As in any recovery, it usually surges, slows down, sometimes stops and then gets going again. Timing can be everything so this is a good time to take action.

If you need to short sale your home, this is also a good time to make a move in that direction. There are new laws to protect homeowners from the banks going after them for the difference owed. This is a good time to make a decision on whether to go ahead and sell or not and make a plan for you and your family. If this is your situation, refer to my last post on Short Sale or Foreclosure.

If you need help to sort it all out, contact me for a free consultation and I will do all I can to help guide you to the best decision and show you how to accomplish your goals. Nancy Puder at (805)710-2415 Nancy@SignatureProperties1.com