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Top 10 Housing Predictions for 2013

by Elite Asset Management Team

Pete Veres and Sean Hellmann would like to share some very good news. Top 10 Housing Predictions for 2013 revealed by RE/MAX Co-Founder and Chairman, Dave Liniger. The housing market made a sharp rebound in 2012, find out if this trend continues in 2013 and what else the New Year has in store homebuyers, sellers, investors and agents. The Elite Asset Management team is here to help with all your real estate requirements.

 

In this new video released today, RE/MAX Chairman and Co-Founder Dave Liniger makes his real estate predictions for 2013, and states that 2013 could be the best year in real estate in many years.

Dave Liniger's Top 10 Real Estate Predictions for 2013:
1. More Homebuyers and Sellers come back to the market
2. Homes sales will rise by 6-7% and prices rise by 3-4%
3. The inventory of homes for sale will hit a bottom
4. Higher-priced homes begin to sell
5. Distressed property numbers continue to fall
6. Shadow inventory continues to fall
7. The number of short-sale closings will rise to a peak
8. Record-low mortgage rates rise slightly by year-end
9. Lending remains tight
10. Home affordability remains the best in years

Preventing and Thawing Frozen Pipes

by Elite Asset Management Team

Preventing and Thawing Frozen Pipes

 With the recent cold snap Pete Veres and Sean Hellmann want to share the following important information.

Why pipe freezing is a problem
Water has a unique property in that it expands as it freezes. This expansion puts tremendous pressure on whatever is containing it, including metal or plastic pipes. No matter the "strength" of a container, expanding water can cause pipes to break. Pipes that freeze most frequently are those that are exposed to severe cold, like outdoor hoses, swimming pool supply lines, water sprinkler lines, and water supply pipes in unheated interior areas like basements and crawl spaces, attics, garages, or kitchen cabinets. Also, pipes that run against exterior walls that have little or no insulation are also subject to freezing. Pipe freezing is a particular problem in warmer climates where pipes often run through un-insulated walls or under insulated attics or crawl spaces.

Preventing Frozen Pipes: Before the onset of cold weather, prevent freezing of these water supply lines and pipes by following these recommendations:

  • Drain water from swimming pool and water sprinkler supply lines following manufacturer's or installer's directions.
  • Do not put antifreeze in these lines unless directed. Antifreeze is environmentally harmful, and is dangerous to humans, pets, wildlife, and landscaping.
  • Remove, drain, and store hoses used outdoors. Close inside valves supplying outdoor hose bibs. Open the outside hose bibs to allow water to drain.
  • Keep the outside valve open so that any water remaining in the pipe can expand without causing the pipe to break.
  • Check around the home for other areas where water supply lines are located and are in unheated areas. Look in the basement, crawl space, attic, garage, and under kitchen and bathroom cabinets. Both hot and cold water pipes in these areas should be insulated. A hot water supply line can freeze just as a cold water supply line can freeze if the water is not running through the pipe and the water temperature in the pipe is cold.
  • Consider installing specific products made to insulate water pipes like a "pipe sleeve" or installing UL-listed "heat tape," "heat cable," or similar materials on exposed water pipes. Many products are available at your local building supplies retailer. Pipes should be carefully wrapped, with ends butted tightly and joints wrapped with tape. Follow manufacturer's recommendations for installing and using these products. Newspaper can provide some degree of insulation and protection to exposed pipes - even ¼" of newspaper can provide significant protection in areas that usually do not have frequent or prolonged temperatures below freezing.


During Cold Weather, Take Preventive Action:

  • Keep garage doors closed if there are water supply lines in the garage.
  • Open kitchen and bathroom cabinet doors to allow warmer air to circulate around the plumbing.
  • Be sure to move any harmful cleaners and household chemicals up out of the reach of children.
  • When the weather is very cold outside, let the cold water drip from the faucet served by exposed pipes.
  • Running water through the pipe - even at a trickle - helps prevent pipes from freezing because the temperature of the water running through it is above freezing.
  • Keep the thermostat set to the same temperature both during the day and at night.
  • By temporarily suspending the use of lower nighttime temperatures, you may incur a higher heating bill, but you can prevent a much more costly repair job if pipes freeze and burst.
    If you will be going away during cold weather, leave the heat on in your home, set to a temperature no lower than 55ºF.

House Passes Senate ‘Cliff’ Bill

by Elite Asset Management Team

Real Estate Provisions in “Fiscal Cliff” Bill

On Jan. 1 both the Senate and House passed H.R. 8, legislation to avert the “fiscal cliff.” The bill will be signed shortly by President Barack Obama.

Below is a summary of real estate related provisions in the bill:

Real Estate Tax Extenders
• Mortgage Cancellation Relief is extended for one year to Jan. 1, 2014
• Deduction for Mortgage Insurance Premiums for filers making below $110,000 is extended through 2013 and made retroactive to cover 2012
• 15 year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012.
• The 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012.

Permanent Repeal of Pease Limitations for 99% of Taxpayers

Under the agreement so called “Pease Limitations” that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers. These limitations will only apply to individuals earning more than $250,000 and joint filers earning above $300,000. These thresholds have been increased and are indexed for inflation and will rise over time. Under the formula, the amount of adjusted gross income above the threshold is multiplied by three percent. That amount is then used to reduce the total value of the filer’s itemized deductions. The total amount of reduction cannot exceed 80 percent of the filer’s itemized deductions.

These limits were first enacted in 1990 (named for the Ohio Congressman Don Pease who came up with the idea) and continued throughout the Clinton years. They were gradually phased out as a result of the 2001 tax cuts and were completely eliminated in 2010-2012. Had we gone over the fiscal cliff, Pease limitations would have been reinstituted on all filers starting at $174,450 of adjusted gross income.

Capital Gains

The Capital Gains rate stays at 15 percent for those at the top rate of $400,000 (for individuals) and $450,000 (for those filing a joint return). After that, any gains above those amounts will be taxed at 20 percent. The 250/500k exclusion for sale of principle residence remains in place.

Estate Tax

The first $5 million dollars in individual estates and $10 million for family estates are now exempted from the estate tax. After that the rate will be 40 percent, up from 35 percent. The exemption amounts are indexed for inflation.

Albuquerque population could reach 1 million in 2018

by Elite Asset Management Team

Albuquerque could have a big boost in population during the next five years, according to an American City Business Journals On Numbers report.

Fifty-two U.S. metropolitan areas currently have more than 1 million residents. Tucson, Ariz., was the latest to join the million-plus club, crossing the threshold just five months ago.

But it won’t be the last entry. On Numbers has identified 28 other metros that have a decent shot at reaching a population of 1 million by 2050.

The closest to that goal are Honolulu, Fresno, Tulsa and Albuquerque, according to the report.

Honolulu should get there first. It’s Jan. 1, 2013, population was 976,894, based on On Numbers’ latest estimates. If its recent growth patterns continue, Honolulu will reach 1 million on July 28, 2015.

Albuquerque is expected to grow from 918,876 at the start of 2013 to 1 million on Sept. 21, 2018.

On Numbers has developed a computer program that analyzes more than a decade’s worth of demographic data to project the populations of states, metropolitan areas, counties and cities at any given moment.

Albuquerque #1 of Best Place's to Retire, Thank you CNN Money

by Elite Asset Management Team

25 Best Places to Retire

Whether you dream of retiring to a big city, small town, resort area or college town, these great places offer reasonably priced homes, low crime and tax rates, quality health care, and more.

Albuquerque, NM

Albuquerque, NM
Albuquerque's biggest draws: Diversity, beautiful scenery, and pleasant weather.
Best if you're looking for: Big city
Median home price: $174,000
Top state income tax: 4.9%

There is much to be said for a place where you can ski in the morning and golf in the afternoon; drink Italian-style espresso at breakfast and eat homemade sopapillas for lunch; see ancient petroglyphs one day and gallery hop the next.

With the Rio Grande river near downtown and the Sandia Mountains to the east, Albuquerque is as diverse in its landscape as it is in culture. Downtown revitalization projects have added considerably to the appeal.

One caveat: Crime is on the high side, though locals say it's easy to avoid the problem areas.

The Reality of Short Sales

by Elite Asset Management Team

4 Signs that a Short Sale is right for your buyer

Today, everyone wants a deal.  In fact, many real estate buyers expect them in today’s market.  In order to get the best “deal” consumers are looking at the distressed and short sale market for their best opportunity.

Unfortunately, short sales are not the best buys for every house hunter.  Pete Veres, CDPE, Certified Distressed Property Expert says "Our responsibility as agents is to spot the signals and understand the key aspects of a short sale to determine if our clients should pursue purchasing this type of property or focus on a non-distressed deal". We also need to qualify the listing agent to make sure they are experienced and certified in short sales.

Here a few signs to help you find out if a short sale can work for your buyer-clients:

1. Your buyers aren’t working against a clock

Sean Hellmann, CDPE agent says "The phrase “short sales “is an oxymoron".  Short sales are short because the bank is taking a, sometimes significant, loss and allowing the borrower to transfer the property without the credit and legal implications of a foreclosure.

If your client needs a house tomorrow, short sale properties should be as far away from their radar as possible.  Consumers who can afford a 3-6 month waiting period from the time they write their offer to get a bank approval or denial are much better suited for a short sale.

Timeframes vary from state to state, lending institution, and type of loan; but there will be a wait in almost all cases.  If your client has time on their hands and an interim place to live, a short sale may be a great option. Those buyers have a leg up on other consumers who will forgo looking at short sales because of the time frame for approval.  Less competition equals a lower sales price. It’s a supply and demand principle.  If they have the time, they may save some money but that’s if the home will actually make it to closing. Many things can come up to prevent the sale from actually taking place. A perfect example is the home being foreclosed prior to the close date.

2. Your buyers like change and surprises.

Short sales purchasers cannot be averse to change.  This type of transaction is all about change and surprises.  Rigid, type-A personality clients are usually not the best candidates for purchasing a short sale.

There is no rhyme or reason for short sale approval/ denial sometimes.  The banks make decisions that they feel are in their best interest, sometimes ask for the same form multiple times, and in some cases will send you contradictory forms.

In addition, there are a variety of things that can go wrong and cause you to have to restart the short sale process in the middle of negotiations. These include the bank selling the lien to another loan servicer after the short sale is initiated, policy and regulation changes, and many other changes you can’t predict until you’re working on the transaction. We have also seen the loan servicing company transfer the loan and most recently lately loan companies being bought out. Great example is the Nationstar buyout of Aurora Loans. This means you have to start the process all over from the start.

A short sale purchaser has to be change tolerant to change (I like this better) and willing to work with the system when change arises.  Flexibility is a virtue when involved in this type of transaction.

3. Your buyers are willing and have the funds to renovate.

Short sales may seem cheaper to purchase than most traditional sales and foreclosures, but there is one very important caveat for the purchaser to consider; repairs will be on them.  That’s right; most short sales are sold “as-is.” Also note that the banks will not pay for inspections, appraisal fee’s and also limit some of the closing costs. This results in more out of pocket costs for the buyer.

Many short sales carry the condition that the seller can’t invest any more money into the property.  That means, buyers who have loans that require repairs be made before the loan can be issued shouldn’t shop for a short sale.  FHA and VA loan products are good examples of loans that may require repairs before lending. This could mean extra out of pocket costs.

In these cases, if the purchaser or seller bank is unwilling or unable to make the repairs, the deal could be dead.

For buyers with loans that don’t have the repair requirement, it comes down to willpower (?).  If your buyer client is squeamish about cosmetic issues or a little construction dust, he or she probably isn’t a good candidate for a short sale.

4. Your buyers are willing to wait for a return

A good deal today could mean great profit tomorrow, but “tomorrow” is a figurative term in the world of short sales.  Gone are the days of accruing 32 percent price appreciation in 6 months.  Purchasing real estate is a long-term investment of at least 5 years.  The more focused on the long-term bottom-line a short sale purchaser is, the more likely they will enjoy the outcome of the transaction and future profits.

Short sale purchasers need to be able to examine the dollars and cents of the property and determine if they are truly getting a bargain.  They may be paying more for the short sale, in the long run, than had they purchased a traditional property

Making sure your buyer clients are good candidates for a short sale property is very important.  If they are willing to wait for bank approval, are not averse to change, willing to make repairs to the property, and can keep the long term bottom-line as a top priority, you are more likely going to have a successful transaction.

RE/MAX CEO Margaret Kelly talks about new home sales in June 2012 on Bloomberg TV

by Elite Asset Management Team

Pete Veres and Sean Hellmann want to share some more good news. RE/MAX CEO Margaret Kelly talks about new home sales in June 2012 on Bloomberg TV. Our inventory in the Albuquerque area has been dropping and prices are starting to stabilize in certain areas. Margaret has some great information to share. Thanks for watching!

 

5 Steps to picking the right agent to Sell your Home

by Elite Asset Management Team

 Are you thinking of selling your home? Here is a great article that I found on Kiplinger's that discusses how to find the right Real Estate Agent to sell your home. In a quick summary there are 5 steps to selecting the right agent;  

1. Round up good prospects. 

2. Ask Tough Questions. 

3. Find out who the agent is working for.  

4. Make sure your agent has a back up.  

5. Sign the right contract.  

For more details please read the following article on each 5 steps. http://realestate.msn.com/5-steps-to-picking-the-right-agent-to-sell-your-home 

The Spring time is here and if you know anyone that is thinking of selling please contact Sean Hellmann or Pete Veres of the Elite Asset Managment Team with Re/Max Elite. Many of you have had the pleasure to work with us and any referral would be greatly appreciated. You can be assured that your referral will be treated to the same level of service we provided to you. Have a great Spring.

Real Estate is still one of the Best Investments

by Elite Asset Management Team

Pete Veres and Sean Hellmann want to share this quick video. Warren Buffet continues to state that SF homes are the Best Investments. Pete Veres, CIAS - Certified Investment Agent Specialist also wants to add that right now multi family units are providing a great ROI & cash flow as prices are extremely low right now and rental demand is high.

 

Why Rent when you can Buy

by Elite Asset Management Team

Buying is more affordable than renting in 98 out of the nation’s 100 largest metropolitan areas – even in New York, Los Angeles and Boston, according to real estate company Trulia’s rent vs. buy index. To read more from this report from Housingwire please visit this link: http://www.housingwire.com/news/buying-cheaper-renting-nearly-100-major-us-markets-trulia

Pete and I are also seeing this trend in the Albuquerque Real Estate Market. We are working with a number of clients that are purchasing properties where their mortgage payments are less than their current rent. One of the major factors that are allowing lower mortgage payments is that interest rates are at all time lows. If you would like to know more about how you can save money and STOP renting please contact Pete Veres or Sean Hellmann.

The Elite Asset Management Team has some great relationships with lenders with great First Time Buyer loan programs and other affordable loan programs.

Enjoy the article and have a great week!

Pete & Sean

Displaying blog entries 221-230 of 240

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Photo of Elite Asset Management  Real Estate
Elite Asset Management
RE/MAX SELECT
8300 Carmel Ave. NE Ste. 203
Albuquerque NM 87122
(505)362-2005

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