2013 REAL ESTATE TAX - 11/29/10 07:08 AM
Lots of myths on this "tax".  First, it is not called a sales tax.  It is called a Medicare tax.  To me a tax is a tax no matter what you call it.  The tax money goes into the Medicare Trust Fund.  Let me make something very clear.  There are NO trust funds, NO lock boxes!  They are just IOU's.  The money for these funds is used to pay the current bills.
If your individual adjusted gross income is less the $200,000 then this tax does not apply to you.  If you are married and file a joint tax return then … (41 comments)

SURVIVAL OF THE FITTEST - 11/27/10 11:16 AM
I just finished reading a blog by Thom Abbott about "survival"  These are really difficult times for everybody involved in the real estate business.  He will worry about thriving as long as he survives.  Tough questions about getting a real job and maybe working part time in real estate.
I never saw part timers being very successful in the good times.  Thom said that he had an excellent back round in sales and great training.  So what happened?  He is a victim of the times.  We have become a global economy.  The United States catches a cold and the world has … (1 comments)

HAPPY THANKSGIVING TO THE UNSUNG HEROES - 11/25/10 08:31 AM
What a great time of the year.  Thanksgiving has to be the best holiday of them all.  No presents to buy.  Enjoying a great meal with family and friends. Great parades and football.
 The real UNSUNG heroes are the cooks who got up at 4 in the morning to get the turkey cooking.  They work to prepare the meal with relentlessness and an eye to the clock.  Everything has to come together all at the same time and be warm.  Precision and dedication to a perfect meal.
HAPPY THANKSGIVING TO THE UNSUNG HEROES - THE COOKS
… (0 comments)

FANNIE MAE'S NEW SYSTEM - 11/23/10 05:24 PM
This new system is an interesting concept.  Basically it is calling the listing agents liars, incompetents and/or conspiring to defraud Fannie Mae.  You heard right.  In the three beta test areas only buyer's agents can submit offers on Fannie Mae REO's.  No listing agents need apply.  Even buyers are eliminated from submitting offers.  Only buyer's agents.
The three test markets are Orlando, San Diego and Detroit.  Apparently this is going to prevent listing agents from withholding multiple offers and steering the purchase to certain buyers.  Oh did I tell you you can only submit the offers through HomePath.com.  Talk about a … (2 comments)

WILL LENDERS LEAD THE RECOVERY? - 11/23/10 05:02 PM
We all know that rates are at historically low numbers.  Banks have lots of money.  Realtors have lots of inventory.  There are buyers out looking to buy.  So what is the problem?
LENDER'S UNDERWRITING standards have risen to almost impossible standards to meet.  If you don't need a loan, you qualify.  If you do, then you don't qualify.  The Federal Reserve continues to pump money into the economy.  Terrific except it is not going back out in the form of loans.  Businesses have trillions of dollars in their coffers.  Why are they not spending?  One issue is the tax question.  Will … (2 comments)

THE APPRAISAL PROCESS IS NOT CHANGING - 11/15/10 07:35 AM
I have been a Realtor for 30+years.  I am also a licensed and certified appraiser.  Other than who orders the appraisal nothing has changed in the appraisal process.  I agree with the premise that 12 month old comparables are not relevant.  The appraiser is always looking for relevant comparables.  It is a never ending battle.  This is especially true when values are going down.  
It is the principle of substitution that drives the buyers and appraisers.  There are three approaches to determining value: cost, market and income.  The appraisal is ordered by the lender.  The appraiser's obligation is to the lender not … (11 comments)

HOME VALUE DECREASES RIVAL GREAT DEPRESSION. HUH? (edit/delete) - 11/12/10 08:22 PM

Re-blogged by 0 agents
I keep reading titles like this in different publications.  You really don't have to go back 77 years to find 25% drop in values.
How about a history lesson.  In 1986, congress decided to re-write the tax laws relating to real estate tax deductions.  In their infinite wisdom they declared that real investing was a "passive" activity.  Tell that to people who own income property.  Passive investing my behind.  What did that mean?  It meant that you could only deduct $25,000 in real estate losses.  Even if you had a property that broke even from a … (2 comments)

HOME VALUE DECREASES RIVAL GREAT DEPRESSION. HUH? - 11/12/10 08:16 AM
I keep reading titles like this in different publications.  You really don't have to go back 77 years to find 25% drop in values.
How about a history lesson.  In 1986, congress decided to re-write the tax laws relating to real estate tax deductions.  In their infinite wisdom they declared that real investing was a "passive" activity.  Tell that to people who own income property.  Passive investing my behind.  What did that mean?  It meant that you could only deduct $25,000 in real estate losses.  Even if you had a property that broke even from a cash flow stand point you … (0 comments)

UNDERWRITING STANDARDS HAVE GONE TOO FAR - 11/10/10 01:40 PM
The pendulum has swung from the borrower fogging up a mirror and qualifying for a loan to no one qualifies for a loan except for Bill Gates.
Every time the horse leaves the barn lenders run around nailing the door shut.  We had the no doc loans or those affectionately called "liar loans".  What is truly amazing about this financial meltdown is how it started.  The sub prime market was made up of 15% of the total mortgage market.  15% of the 15% did not pay their mortgages as agreed.  Because this small market was broken down and sold as derivatives this caused the … (5 comments)

ARE YOU VIOLATING THE CODE OF ETHICS, ARTICLE 11? - 11/09/10 03:44 PM
Article 11 requires Realtors to be knowledgeable and competent in fields of practice in which they ordinarily engage.  Standards of Practice 11-1 require that the Realtor, when giving an opinion of value, comply with 7 steps.  One of these 7 steps is that the Realtor give their basis of opinion including applicable market data.
How does one do that when they don't work in that market and have no idea of values?  Every market has different nuances with respect to the various neighborhoods.  Unless you work there or spend a couple of days viewing similar properties that are active, under agreement … (6 comments)

BEARS AND BULLS MAKE MONEY, PIGS GET SLAUGHTERED - 11/09/10 12:07 PM
There are so many great deals to be had with historically low interest rates.  Yet there are buyer agents running around having buyers present ridiculously low offers on properties priced to sell.  These buyers never do get an accepted offer.
Is the buyer agent representing the buyer in a professional and ethical way?  I don't think so.  Not if the buyer is looking to occupy this home with their family.  Interest rates are bound to go up.  Inflation is on the rise.  Have you bought corn or eggs lately?  Inflation is all around us.  It just hasn't hit the indicators that … (1 comments)

WHO ARE THE BUYERS? - 11/08/10 07:50 AM
NAR completed a survey of the buyers who bought between July 2009 and June of 2010.  First time home buyers made up 47% of all the buyers.  According to NAR this is the highest percentage of first time home buyers since the surveys started in 1981.
Want to know why sales have slowed since April 30, 2010?  71% of these first time home buyers took advantage of federal home buyer tax credit.  Almost 3/4 bought because of the tax credits and those credit expired 7 months ago.  These numbers speak volumes about the current market.
It was the tax credits that … (2 comments)

ET TU FANNIE & FREDDIE? - 11/07/10 10:06 AM
Fannie & Freddie are bleeding money almost as fast as social security. 2011 brings the republicans in control of the House. Fannie & Freddie's function is to channel trillions of dollars in mortgage lending. There obviously should be continued support for housing. Having said that I question the effectiveness of these programs. The United States is ranked 17th out of 26 economically advanced countries in home ownership rate. FHA has been in place for 80 years. FHA has been self-sustaining through the insurance premiums paid by borrowers. Absolutely no cost to the tax payers. The mortgage interest tax dedcution must not … (5 comments)

OUT OF STATE LISTING LAWSUITS - 11/04/10 02:46 PM
States are now insisting that you have a license if you place a listing in places like ForSaleByOwner.com, etc.  States like Nebraska and Alaska have issued cease and desist orders against a California broker.  This broker was using Realtor.com, mls's and other services to advertise listings in states where they didn't have a license.
I am located geographically between Rhode Island and Connecticut.  Webster is the last town before Connecticut.  I belong to MLS's in CT and Mass.  I get call from agents in Ct wanting to show a listing of mine in Mass.  The first question I ask is do … (2 comments)

WILL THE REPUBLICAN WIN MEAN A BETTER ECONOMY? - 11/03/10 08:20 AM
I hope the republicans learned their lesson from the 90's.  They spent, spent and then spent more than the Democrats.  Fiscal sanity must be restored.  There must be new approaches to solving the economic issues.
Grid lock will serve no one.  Congress needs to start with the Bush tax cuts.  They must not expire.  Rand Paul said this morning that "the great recession could turn into the great depression" if the tax cuts are not continued.
Health care program must be repealed and a new one that is not so heavy with governmental regulations.  This bill that was passed still hasn't … (4 comments)

VOTE, VOTE, VOTE!!!! - 11/02/10 07:14 AM
The world is run by those who show up.  Show up and vote today.  We need congressional people who understand fiscal responsibility.  We cannot spend more than we take in.  We need politicians who would run the country the way they pay thier bills at home.
If you don't have enough money to pay the bills then stop spending!  Our grandchildren are tens of thousands of dollars in debt.  There is a real chance that they will never see social security payments.  We had 37 people working for every one person retired when social security began.  We now have less than … (6 comments)

 

Find MA real estate agents and Webster real estate on ActiveRain.