Courtesy of Debbie Duplantis with Home Mortgage
Summer is one of the most popular seasons for holding a yard sale. But simply holding a yard sale doesn't necessarily mean you'll end the day with lots of extra money in your pocket. If you're planning on clearing out your clutter this summer, here are ten tips to help make your yard sale a success:
1-Start your yard sale earlier than other yard sales in your area so shoppers will start their shopping day with you.
2-Don't schedule your yard sale on a holiday weekend or during a big event in your area (like a sporting event or festival).
3-If it rains, take down your signs and reschedule your sale so you can maximize traffic on the day of your sale.
4-Before your own yard sale, visit other sales in your neighborhood to get an idea of typical prices.
5-Place all of your items (except for large items) on tables so shoppers don't have to bend.
6-If you plan to sell electrical items, have an outlet and extension cord handy so you can show shoppers that the items work.
7-If you want to sell larger ticket items, look for those items in a local circular and then attach the ad to your item so shoppers can see that they are getting a great deal.
8-If you have a variety of items that men would like, place them on their own table. If married couples stop by your sale, both parties will enjoy looking.
9-Advertise your sale ahead of time in your local newspaper classified section, on community boards at your local food stores, and online at places like www.Craigslist.org.
10-Wait until the morning of your garage sale to hang signs in your neighborhood, and make sure you take them down that day to avoid any fines from your homeowner's association or your town. You don't want to have to use all the cash you earn to pay a fine!
And remember, a successful sale is also a safe sale. Keep money in a pouch around your waist instead of in a cash box (which could get stolen while you are helping shoppers), don't accept checks (which could bounce), and never allow strangers inside your home to use the bathroom or telephone.
Follow these tips, and you'll be well on your way to having less clutter in your home, and more cash in your pocket!
Friday, June 5, 2009
Monday, March 30, 2009
Downtown Alive! 2009 Schedule
DOWNTOWN ALIVE! 25 YEAR ANNIVESARY CONTINUES WITH SPRING SEASON
Downtown Alive! is now a 25-year-old community tradition and a popular staple in Acadiana’s cultural and social calendar. Downtown Alive! was first produced by Downtown Lafayette Unlimited in fall 1983 and has continued with a spring and fall season of free, family-friendly, outdoor concerts each year since.
The 25th Anniversary continues this spring, with a concert each Friday between March 13 and June 5 from 5:30 to 8:30 pm at two downtown park venues. DTA! is sponsored by Cox, Lafayette Coca Cola, and The Louisiana Campaign for Tobacco-Free Living.
Spring 2009 25th Anniversary Series features four Grammy nominated artists, and DTA! favorites of the past and present with genres from Cajun & Swamp Pop to Reggae and Rock.
Spring 2009 25th Anniversary Season Schedule
March 13 T.K. Hulin, Steve Adams & Smoke w/Special Guest Charlene Howard – Swamp Pop - Parc International
March 20 Louisiana Red - Classic covers & variety - Parc Sans Souci
March 27 Lafayette’s Bayou Boys - Cajun variety - Parc Sans Souci
April 3 Tab Benoit – Blues/Traditional Country/Vintage R&B - Parc International
April 10 Good Friday – No DTA!
April 17 Marcia Ball – New Orleans R&B/ Gulf Coast Blues - Parc International
April 24 Festival International de Louisiane
May 1 Rex Moroux – Roots Rock - Parc Sans Souci
May 8 Steve Riley & The Mamou Playboys w/Special Guest Geno Delafose – Cajun/Zydeco - Parc International
May 15 Krossfyre - R&B/Variety - Parc Sans Souci
May 22 Lil’ Buck Sinegal – Blues - Parc Sans Souci
May 29 Brass Bed w/special guests The Howdies – Rock/Americana - Parc Sans Souci
June 5 True Man Posse – Creole Reggae - Parc Sans Souci
Downtown Alive! is now a 25-year-old community tradition and a popular staple in Acadiana’s cultural and social calendar. Downtown Alive! was first produced by Downtown Lafayette Unlimited in fall 1983 and has continued with a spring and fall season of free, family-friendly, outdoor concerts each year since.
The 25th Anniversary continues this spring, with a concert each Friday between March 13 and June 5 from 5:30 to 8:30 pm at two downtown park venues. DTA! is sponsored by Cox, Lafayette Coca Cola, and The Louisiana Campaign for Tobacco-Free Living.
Spring 2009 25th Anniversary Series features four Grammy nominated artists, and DTA! favorites of the past and present with genres from Cajun & Swamp Pop to Reggae and Rock.
Spring 2009 25th Anniversary Season Schedule
March 13 T.K. Hulin, Steve Adams & Smoke w/Special Guest Charlene Howard – Swamp Pop - Parc International
March 20 Louisiana Red - Classic covers & variety - Parc Sans Souci
March 27 Lafayette’s Bayou Boys - Cajun variety - Parc Sans Souci
April 3 Tab Benoit – Blues/Traditional Country/Vintage R&B - Parc International
April 10 Good Friday – No DTA!
April 17 Marcia Ball – New Orleans R&B/ Gulf Coast Blues - Parc International
April 24 Festival International de Louisiane
May 1 Rex Moroux – Roots Rock - Parc Sans Souci
May 8 Steve Riley & The Mamou Playboys w/Special Guest Geno Delafose – Cajun/Zydeco - Parc International
May 15 Krossfyre - R&B/Variety - Parc Sans Souci
May 22 Lil’ Buck Sinegal – Blues - Parc Sans Souci
May 29 Brass Bed w/special guests The Howdies – Rock/Americana - Parc Sans Souci
June 5 True Man Posse – Creole Reggae - Parc Sans Souci
Thursday, March 19, 2009
Acadiana Residential Market Stats February 2009 vs. 2008
In summary, the number of home sales have dropped by 25% and the time on the market has increased by 21%. The average sales price has only seen a 2% drop in price. These figures are rounded. For a full report courtesy of Van Eaton & Romero and prepared by CEO Bill Bacque...please email me @ Kisha@KishaKana.com
Monday, March 16, 2009
Properties that my realtor can help me with....
Survey Question #6: A realtor can only help me with the homes that their company has listed:
A) True 11%
B) False 84%
C) They can only help me with the properties that they are the listing agent on 5%
I've covered most of this on the other survey Q & A blog. And most of the participants got this question correct. But I still constantly hear that people are confused about this. The correct answer is FALSE. Once again, your designated realtor can assist you with ANY home on the market. That includes homes listed with other realtors, other companies and even for sale by owners. So when you see a sign and you want information, call your realtor before the number advertised for the home. Your realtor can access all of the information and your interest will be represented.
On a different note, the GoGetters have a couple charities we are currently raising money for. Please let us know if you're interested in contributing.
Cystic Fibrosis Foundation. We will be walking in May to raise money to help find a cure for this disease. Our niece, Myla Mistric, was born with this. It is a disease that affects the lungs and causes children and peoople to live a life of constant medical attention. Currently there is no cure and the median life span for someone with CF is 40 years. We are selling donation "certificates" for $1 each.
We are also selling raffle tickets for the Catahoula Church Fair. This is my hometown. Tickets are $2 each and the drawing will be on April 26, 2009. Prizes are as follows:
1st place Homemade Quilt
2nd Cypress Gun Cabinet
3rd Gas BBQ pit
4th 20" digital LCD TV
5th Kitchen Aid Mixer
6th Canon Digital Camera
7th AM/FM/CD player
8th $100 Cash
A) True 11%
B) False 84%
C) They can only help me with the properties that they are the listing agent on 5%
I've covered most of this on the other survey Q & A blog. And most of the participants got this question correct. But I still constantly hear that people are confused about this. The correct answer is FALSE. Once again, your designated realtor can assist you with ANY home on the market. That includes homes listed with other realtors, other companies and even for sale by owners. So when you see a sign and you want information, call your realtor before the number advertised for the home. Your realtor can access all of the information and your interest will be represented.
On a different note, the GoGetters have a couple charities we are currently raising money for. Please let us know if you're interested in contributing.
Cystic Fibrosis Foundation. We will be walking in May to raise money to help find a cure for this disease. Our niece, Myla Mistric, was born with this. It is a disease that affects the lungs and causes children and peoople to live a life of constant medical attention. Currently there is no cure and the median life span for someone with CF is 40 years. We are selling donation "certificates" for $1 each.
We are also selling raffle tickets for the Catahoula Church Fair. This is my hometown. Tickets are $2 each and the drawing will be on April 26, 2009. Prizes are as follows:
1st place Homemade Quilt
2nd Cypress Gun Cabinet
3rd Gas BBQ pit
4th 20" digital LCD TV
5th Kitchen Aid Mixer
6th Canon Digital Camera
7th AM/FM/CD player
8th $100 Cash
Tuesday, March 10, 2009
FIRST‐TIME HOMEBUYER TAX CREDIT
Frequently Asked Questions
In 2008, Congress enacted a $7500 tax credit designed to be an incentive for first‐time homebuyers to purchase a home. The credit was designed as a mechanism to decrease the over‐supply of homes for sale.
For 2009, Congress has increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009.
Tax Credits ‐‐ The Basics
1. What’s this new homebuyer tax incentive for 2009?
The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.
2. Who is eligible?
Only first‐time homebuyers are eligible. A person is considered a first‐time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.
3. How does a tax credit work?
Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of
the tax due. ($9,500 ‐ $8000 = $1500)
4. So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?
This tax credit is what’s called “refundable” credit. Thus, if the eligible purchaser’s total tax liability was $6000, the IRS would send the purchaser a check for $2000. The refundable amount is the difference between $8000 credit amount and the amount of tax liability. ($8000 ‐ $6000 = $2000) Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.
5. How does withholding affect my tax credit and my refund?
A few examples are provided at the end of this document. There are several steps in this calculation, but most income tax software programs are equipped to make that determination.
6. Is there an income restriction?
Yes. The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return. Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000. Married couples who file a Joint return may have income of no more than $150,000.
7. How is my “income” determined?
For most individuals, income is defined and calculated in the same manner as their Adjusted Gross Income (AGI) on their 1040 income tax return. AGI includes items like wages, salaries, interest and dividends, pension and retirement earnings, rental income and a host of other elements. AGI is the final number that appears on the bottom line of the front page of an IRS Form 1040.
8. What if I worked abroad for part of the year?
Some individuals have earned income and/or receive housing allowances while working outside the US. Their income will be adjusted to reflect those items to measure Modified Adjusted Gross Income (MAGI). Their eligibility for the credit will be based on their MAGI.
9. Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit?
Not always. The credit phases‐out between $75,000 ‐ $95,000 for singles and $150,000 ‐ $170,000 for married filing joint. The closer a buyer comes to the maximum phase‐out amount, the smaller the credit will be. The law provides a formula to gradually withdraw the credit. Thus, the credit will disappear after an individual’s income reaches $95,000 (single return) or $170,000 (joint return).
For example, if a married couple had income of $165,000, their credit would be reduced by 75% as shown:
Couple’s income $165,000
Income limit 150,000
Excess income $15,000
The excess income amount ($15,000 in this example) is used to form a fraction. The numerator of the fraction is the excess income amount ($15,000). The denominator is $20,000 (specified by the statute). In this example, the disallowed portion of the credit is 75% of $8000, or $6000
($15,000/$20,000 = 75% x $8000 = $6000)
Stated another way, only 25% of the credit amount would be allowed.
In this example, the allowable credit would be $2000 (25% x $8000 = $2000)
10. What’s the definition of “principal residence?”
Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%). It is also defined as “owner‐occupied” housing. The term includes single-family detached housing, condos or co‐ops, townhouses or any similar type of new or existing dwelling. Even some houseboats or manufactured homes count as principal residences.
11. Are there restrictions on the location of the property?
Yes. The home must be located in the United States. Property located outside the US is not eligible for the credit.
12. Are there restrictions related to the financing for the mortgage on the property?
In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit.
Congress eliminated the financing restriction that applied in 2008. (In 2008, purchasers were ineligible for the $7500 credit if the financing was obtained by means of mortgage revenue bonds.) Now, mortgage‐revenue bond financing will not disqualify an otherwise‐eligible purchaser. (Mortgage revenue bonds are tax‐exempt bonds issued by a state housing agency. Proceeds from the bonds must be used for below market loans to qualified buyers.)
13. Do I have to repay the 2009 tax credit?
NO. There is no repayment for 2009 tax credits.
14. Do 2008 purchasers still have to repay their tax credit?
YES. The $7500 credit in 2008 was more like an interest‐free loan. All eligible purchasers who claimed the 2008 credit will still be required to repay it over 15 years, starting with their 2010 tax return.
Some Practical Questions
15. How do I apply for the credit?
There is no pre‐purchase authorization, application or similar approval process. All eligible purchasers simply claim the credit on their IRS Form 1040 tax return. The credit will be reflected on a new Form 5405 that will be attached to the 1040. Form 5405 can be found at www.irs.gov.
16. So I can’t use the credit amount as part of my downpayment?
No. Congress tried hard to devise a mechanism that would make the funds available for closing costs, but found that pre‐funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction.
17. So there’s no way to get any cash flow benefits before I file my tax return?
Yes, there is. Any first‐time homebuyers who believe they are eligible for all or part of the credit can modify their income tax withholding (through their employers) or adjust their quarterly estimated tax payments. Individuals subject to income tax withholding would get an IRS Form W‐4 from their employer, follow the instructions on the schedules provided and give the completed Form W‐4 back to the employer. In many cases their withholding would decrease and their take‐home pay would increase. Those who make estimated tax payments would make similar adjustments.
Some “Real World” Examples
18. What if I purchase later this year but can’t get to settlement before December 1?
The credit is available for purchases before December 1, 2009. A home is considered as “purchased” when all events have occurred that transfer the title from the seller to the new purchaser. Thus, closings must occur before December 1, 2009 for purchases to be eligible for the credit.
19. I haven’t even filed my 2008 tax return yet. If I buy in 2009, do I have to wait until next year to get the benefit of the credit?
You’ll have a helpful choice that might speed up the process. Eligible homebuyers who make their purchase between January 1, 2009 and December 1, 2009 can treat the purchase as if it had occurred on December 31, 2008. Thus, they can claim the credit on their 2008 tax return that is due on April 15, 2009. They actually have three filing options.
• If they purchase between January 1, 2009 and April 15, 2009, they can claim the $8000 credit on the 2008 return due on April 15.
• They can extend their 2008 income‐tax filing until as late as October 15, 2009. (The IRS grants automatic extensions, but the taxpayer must file for the extension. See www.irs.gov for
instructions on how to obtain an extension.)
• If they have filed their 2008 return before they purchase the home, they may file an amended
2008 tax return on Form 1040X. (Form 1040X is available at www.irs.gov)
Of course, 2009 purchasers will always have the option of claiming the credit for the 2009 purchase on their 2009 return. Their 2009 tax return is due on April 15, 2010.
20. I purchased my home in early 2009 before the stimulus bill was enacted. I claimed a $7500 tax credit on my 2008 return as prior law had permitted. Am I restricted to just a $7500 credit?
No, you would qualify for the $8000 credit. Eligible purchasers who have already claimed the $7500 credit on a 2008 return for a 2009 purchase may file an amended return (IRS Form 1040X) for the 2008 tax year. This amended return will enable them to obtain the additional $500 credit amount.
21. If I claim my 2009 $8000 credit on my 2008 tax return, will I have to repay the credit just as the 2008 credits are repaid?
No. Congress anticipated this confusion and has made specific provision so that there would be no repayment of 2009 credits that are claimed on 2008 returns.
22. I made an eligible purchase of a principal residence in May 2008 and claimed the $7500 credit on my 2008 tax return. My brother, who has never owned a home, wishes to purchase a partial interest in the home this spring and move in. Will he qualify for the $8000 credit, as well?
No. Any purchase of a principal residence (or interest in a principal residence) from a related party such as a sibling, parent, grandparent, aunt or uncle is ineligible for the tax credit. Since you and your brother are related in this way, he cannot qualify for the credit on any portion of the home that he purchases from you, even if he is a first‐time homebuyer.
23. I live in the District of Columbia. If I qualify as a first‐time homebuyer, can I use both the $5000 DC credit and the $8000 credit?
No; double dipping is not allowed. You would be eligible for only the $8000 credit. This will be an
advantage because of the higher credit amount, plus the eligibility requirements for the $8000 credit are somewhat more easily satisfied than the DC credit.
24. I know there is no repayment requirement for the $8000 credit. Will I ever have to repay any of the credit back to the government?
One situation does require a recapture payment back to the government. If you claim the credit but then sell the property within 3 years of the date of purchase, you are required to pay back the full amount of any credit, including any refund you received from it. A few exceptions apply. (See below, #24). Note that this same 3‐year recapture rule applies, as well, to the $7500 credit available for 2008.
This provision is designed as an anti‐flipping rule.
25. What if I die or get divorced or my property is ruined in a natural disaster within the 3 years?
The repayment rules are eased for many circumstances. If the homeowner who used the credit dies within the first three years of ownership, there is no recapture. Special rules make adjustments for people who sell homes as part of a divorce settlement, as well. Similarly, adjustments are made in the case of a home that is part of an involuntary conversion (property is destroyed in a natural disaster or subject to condemnation by eminent domain by an authorized agency) within the first three years.
26. I have a home under construction. Am I eligible for the credit?
Yes, so long as you actually occupy the home before December 1, 2009.
WITHHOLDING EXAMPLES:
Note: The impact of estimated tax payments would be the same.
Situation 1: Sally plans her withholding so that her withholding is as close as possible to what she
anticipates as her income tax liability for the year. When she fills out her 1040, her liability is $6000.
She has had $6000 withheld from her paycheck. She also qualifies for the $8000 homebuyer credit.
Result: Sally’s withholding satisfies her tax liability and reduces it to zero. She will receive a refund of the full $8000.
Situation 2: Nick and Nora file a joint return. Nick is self‐employed and makes estimated payments; Nora has taxes withheld from her salary. When they compute their taxes, their combined withholding and estimated tax payments are $11,000. Their income tax liability is $9800. They also qualified as first time homebuyers and are eligible for the $8000 refundable tax credit.
Result: Ordinarily, their combined estimated tax payments and withholding would make them eligible for a refund of $1200 ($11,000 ‐ $9800 = $1200). Because they are eligible for the refundable tax credit as well, they will receive a refund of $9200 ($1200 income tax refund + $8000 refundable tax credit =$9200).
Situation 3: Cesar and LuzMaria both have income taxes withheld from their salaries and file a joint return. When they file their income tax return, their combined withholding is $5000. However, their total tax liability is $7200, generating an additional income tax liability of $2200 ($7200 ‐ $5000). They also qualify for the $8000 first‐time homebuyer tax credit.
Result: Cesar and LuzMaria have been under‐withheld by $2200. Ordinarily, they would be required to pay the additional $2200 they owe (plus any applicable interest and penalties). Because they are eligible for the refundable homebuyer tax credit, the credit will cover the $2200 additional liability. In addition, they will receive an income tax refund of $5800 ($8000 ‐ $2200 = $5800). If they owed penalties and/or interest, that amount would reduce the refund.
NOTE: This information was developed by The National Association of REALTORS Governmental Affairs Division. It is being distributed by Van Eaton & Romero, Inc. as a public service and is not intended to replace or supersede the advice of a competent tax professional.
We recommend that you direct any specific questions beyond the scope of the information contained herein to your tax advisor.
Frequently Asked Questions
In 2008, Congress enacted a $7500 tax credit designed to be an incentive for first‐time homebuyers to purchase a home. The credit was designed as a mechanism to decrease the over‐supply of homes for sale.
For 2009, Congress has increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009.
Tax Credits ‐‐ The Basics
1. What’s this new homebuyer tax incentive for 2009?
The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009.
2. Who is eligible?
Only first‐time homebuyers are eligible. A person is considered a first‐time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.
3. How does a tax credit work?
Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of
the tax due. ($9,500 ‐ $8000 = $1500)
4. So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?
This tax credit is what’s called “refundable” credit. Thus, if the eligible purchaser’s total tax liability was $6000, the IRS would send the purchaser a check for $2000. The refundable amount is the difference between $8000 credit amount and the amount of tax liability. ($8000 ‐ $6000 = $2000) Most taxpayers determine their tax liability by referring to tables that the IRS prepares each year.
5. How does withholding affect my tax credit and my refund?
A few examples are provided at the end of this document. There are several steps in this calculation, but most income tax software programs are equipped to make that determination.
6. Is there an income restriction?
Yes. The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return. Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than $75,000. Married couples who file a Joint return may have income of no more than $150,000.
7. How is my “income” determined?
For most individuals, income is defined and calculated in the same manner as their Adjusted Gross Income (AGI) on their 1040 income tax return. AGI includes items like wages, salaries, interest and dividends, pension and retirement earnings, rental income and a host of other elements. AGI is the final number that appears on the bottom line of the front page of an IRS Form 1040.
8. What if I worked abroad for part of the year?
Some individuals have earned income and/or receive housing allowances while working outside the US. Their income will be adjusted to reflect those items to measure Modified Adjusted Gross Income (MAGI). Their eligibility for the credit will be based on their MAGI.
9. Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit?
Not always. The credit phases‐out between $75,000 ‐ $95,000 for singles and $150,000 ‐ $170,000 for married filing joint. The closer a buyer comes to the maximum phase‐out amount, the smaller the credit will be. The law provides a formula to gradually withdraw the credit. Thus, the credit will disappear after an individual’s income reaches $95,000 (single return) or $170,000 (joint return).
For example, if a married couple had income of $165,000, their credit would be reduced by 75% as shown:
Couple’s income $165,000
Income limit 150,000
Excess income $15,000
The excess income amount ($15,000 in this example) is used to form a fraction. The numerator of the fraction is the excess income amount ($15,000). The denominator is $20,000 (specified by the statute). In this example, the disallowed portion of the credit is 75% of $8000, or $6000
($15,000/$20,000 = 75% x $8000 = $6000)
Stated another way, only 25% of the credit amount would be allowed.
In this example, the allowable credit would be $2000 (25% x $8000 = $2000)
10. What’s the definition of “principal residence?”
Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%). It is also defined as “owner‐occupied” housing. The term includes single-family detached housing, condos or co‐ops, townhouses or any similar type of new or existing dwelling. Even some houseboats or manufactured homes count as principal residences.
11. Are there restrictions on the location of the property?
Yes. The home must be located in the United States. Property located outside the US is not eligible for the credit.
12. Are there restrictions related to the financing for the mortgage on the property?
In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit.
Congress eliminated the financing restriction that applied in 2008. (In 2008, purchasers were ineligible for the $7500 credit if the financing was obtained by means of mortgage revenue bonds.) Now, mortgage‐revenue bond financing will not disqualify an otherwise‐eligible purchaser. (Mortgage revenue bonds are tax‐exempt bonds issued by a state housing agency. Proceeds from the bonds must be used for below market loans to qualified buyers.)
13. Do I have to repay the 2009 tax credit?
NO. There is no repayment for 2009 tax credits.
14. Do 2008 purchasers still have to repay their tax credit?
YES. The $7500 credit in 2008 was more like an interest‐free loan. All eligible purchasers who claimed the 2008 credit will still be required to repay it over 15 years, starting with their 2010 tax return.
Some Practical Questions
15. How do I apply for the credit?
There is no pre‐purchase authorization, application or similar approval process. All eligible purchasers simply claim the credit on their IRS Form 1040 tax return. The credit will be reflected on a new Form 5405 that will be attached to the 1040. Form 5405 can be found at www.irs.gov.
16. So I can’t use the credit amount as part of my downpayment?
No. Congress tried hard to devise a mechanism that would make the funds available for closing costs, but found that pre‐funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction.
17. So there’s no way to get any cash flow benefits before I file my tax return?
Yes, there is. Any first‐time homebuyers who believe they are eligible for all or part of the credit can modify their income tax withholding (through their employers) or adjust their quarterly estimated tax payments. Individuals subject to income tax withholding would get an IRS Form W‐4 from their employer, follow the instructions on the schedules provided and give the completed Form W‐4 back to the employer. In many cases their withholding would decrease and their take‐home pay would increase. Those who make estimated tax payments would make similar adjustments.
Some “Real World” Examples
18. What if I purchase later this year but can’t get to settlement before December 1?
The credit is available for purchases before December 1, 2009. A home is considered as “purchased” when all events have occurred that transfer the title from the seller to the new purchaser. Thus, closings must occur before December 1, 2009 for purchases to be eligible for the credit.
19. I haven’t even filed my 2008 tax return yet. If I buy in 2009, do I have to wait until next year to get the benefit of the credit?
You’ll have a helpful choice that might speed up the process. Eligible homebuyers who make their purchase between January 1, 2009 and December 1, 2009 can treat the purchase as if it had occurred on December 31, 2008. Thus, they can claim the credit on their 2008 tax return that is due on April 15, 2009. They actually have three filing options.
• If they purchase between January 1, 2009 and April 15, 2009, they can claim the $8000 credit on the 2008 return due on April 15.
• They can extend their 2008 income‐tax filing until as late as October 15, 2009. (The IRS grants automatic extensions, but the taxpayer must file for the extension. See www.irs.gov for
instructions on how to obtain an extension.)
• If they have filed their 2008 return before they purchase the home, they may file an amended
2008 tax return on Form 1040X. (Form 1040X is available at www.irs.gov)
Of course, 2009 purchasers will always have the option of claiming the credit for the 2009 purchase on their 2009 return. Their 2009 tax return is due on April 15, 2010.
20. I purchased my home in early 2009 before the stimulus bill was enacted. I claimed a $7500 tax credit on my 2008 return as prior law had permitted. Am I restricted to just a $7500 credit?
No, you would qualify for the $8000 credit. Eligible purchasers who have already claimed the $7500 credit on a 2008 return for a 2009 purchase may file an amended return (IRS Form 1040X) for the 2008 tax year. This amended return will enable them to obtain the additional $500 credit amount.
21. If I claim my 2009 $8000 credit on my 2008 tax return, will I have to repay the credit just as the 2008 credits are repaid?
No. Congress anticipated this confusion and has made specific provision so that there would be no repayment of 2009 credits that are claimed on 2008 returns.
22. I made an eligible purchase of a principal residence in May 2008 and claimed the $7500 credit on my 2008 tax return. My brother, who has never owned a home, wishes to purchase a partial interest in the home this spring and move in. Will he qualify for the $8000 credit, as well?
No. Any purchase of a principal residence (or interest in a principal residence) from a related party such as a sibling, parent, grandparent, aunt or uncle is ineligible for the tax credit. Since you and your brother are related in this way, he cannot qualify for the credit on any portion of the home that he purchases from you, even if he is a first‐time homebuyer.
23. I live in the District of Columbia. If I qualify as a first‐time homebuyer, can I use both the $5000 DC credit and the $8000 credit?
No; double dipping is not allowed. You would be eligible for only the $8000 credit. This will be an
advantage because of the higher credit amount, plus the eligibility requirements for the $8000 credit are somewhat more easily satisfied than the DC credit.
24. I know there is no repayment requirement for the $8000 credit. Will I ever have to repay any of the credit back to the government?
One situation does require a recapture payment back to the government. If you claim the credit but then sell the property within 3 years of the date of purchase, you are required to pay back the full amount of any credit, including any refund you received from it. A few exceptions apply. (See below, #24). Note that this same 3‐year recapture rule applies, as well, to the $7500 credit available for 2008.
This provision is designed as an anti‐flipping rule.
25. What if I die or get divorced or my property is ruined in a natural disaster within the 3 years?
The repayment rules are eased for many circumstances. If the homeowner who used the credit dies within the first three years of ownership, there is no recapture. Special rules make adjustments for people who sell homes as part of a divorce settlement, as well. Similarly, adjustments are made in the case of a home that is part of an involuntary conversion (property is destroyed in a natural disaster or subject to condemnation by eminent domain by an authorized agency) within the first three years.
26. I have a home under construction. Am I eligible for the credit?
Yes, so long as you actually occupy the home before December 1, 2009.
WITHHOLDING EXAMPLES:
Note: The impact of estimated tax payments would be the same.
Situation 1: Sally plans her withholding so that her withholding is as close as possible to what she
anticipates as her income tax liability for the year. When she fills out her 1040, her liability is $6000.
She has had $6000 withheld from her paycheck. She also qualifies for the $8000 homebuyer credit.
Result: Sally’s withholding satisfies her tax liability and reduces it to zero. She will receive a refund of the full $8000.
Situation 2: Nick and Nora file a joint return. Nick is self‐employed and makes estimated payments; Nora has taxes withheld from her salary. When they compute their taxes, their combined withholding and estimated tax payments are $11,000. Their income tax liability is $9800. They also qualified as first time homebuyers and are eligible for the $8000 refundable tax credit.
Result: Ordinarily, their combined estimated tax payments and withholding would make them eligible for a refund of $1200 ($11,000 ‐ $9800 = $1200). Because they are eligible for the refundable tax credit as well, they will receive a refund of $9200 ($1200 income tax refund + $8000 refundable tax credit =$9200).
Situation 3: Cesar and LuzMaria both have income taxes withheld from their salaries and file a joint return. When they file their income tax return, their combined withholding is $5000. However, their total tax liability is $7200, generating an additional income tax liability of $2200 ($7200 ‐ $5000). They also qualify for the $8000 first‐time homebuyer tax credit.
Result: Cesar and LuzMaria have been under‐withheld by $2200. Ordinarily, they would be required to pay the additional $2200 they owe (plus any applicable interest and penalties). Because they are eligible for the refundable homebuyer tax credit, the credit will cover the $2200 additional liability. In addition, they will receive an income tax refund of $5800 ($8000 ‐ $2200 = $5800). If they owed penalties and/or interest, that amount would reduce the refund.
NOTE: This information was developed by The National Association of REALTORS Governmental Affairs Division. It is being distributed by Van Eaton & Romero, Inc. as a public service and is not intended to replace or supersede the advice of a competent tax professional.
We recommend that you direct any specific questions beyond the scope of the information contained herein to your tax advisor.
Friday, February 27, 2009
Shopping Experiment
I have a confession. I don’t cook very often. Everyone in my family cooks really well. For me? It’s a swing and a miss. I decided recently (as I’ve done before) that I want to start cooking. Not all the time. But I definitely want to contribute to my family’s meal experience. By doing this I’ve learned many things.
#1: I’m about to be banned from the kitchen. It’s quite funny how bad I am at it. Rather than learning how to cook, I’m actually learning what I can pull off and what to stay away from.
#2: The crock pot and I don’t always get along.
#3: My son loves to help me cook so I can get in QT with him
#4 My husband will eat anything….God bless him.
#5: It really takes strategic planning……….or shopping rather.
My typical shopping consists of a minimum of 3 weekly trips to the grocery store to buy items of need, as they come up. (this is in theory of course because I rarely do the shopping) That’s a lot of wasted time when you think about it. Each trip is a minimum of 30 minutes. 30 minutes x 3 times per week= 6 hours per month. Not to mention the cost of gas and impacting the environment with the trips. For people who are so pressed for time these days, 2 hours is a lot. That’s enough time for a monthly massage and a trip to the park. I remember my mother and grandmother taking weekly grocery trips. In which they would buy massive amounts of food, usually hitting sales. Sales were their thing. It was a sport for them. I remember them discussing what needs to be done (what meat to take out of the freezer) the night before, planning dinner for the next day. Everything was already there. I never remember them starting a dinner and then realizing that they were out of something. Well, I didn’t pick up this lifestyle. For New Year’s Day while cooking for friends/family, I sent my poor husband four, that’s right FOUR, times to the store. So I decided now I want to have more of plan like the women before me.
I have a tight nit group of friends whom I talk to about everything. A friend of mine told me her secret. Which, now I know, is not a secret at all, lots of people do this. She takes the weekly sales papers that come in the mail (I usually throw it directly in the recycle box, without even glancing) and brings it to Wal-Mart where she normally does her shopping and they match any sales price. I’m thinking that sounds like a lot of work. I want to minimize my time not add to it. But she claims it really saves money. So I decided to conduct a little experiment, because I was not convinced.
Next time the sales papers came in, I started looking at them. I found things we normally buy and started circling all these great prices. My husband saw me and wanted to know what I was doing. I told him and he pointed out that most of the items I circled are what Wal-Mart usually charges. This is when it hit me. I have no earthly idea how price of things. How is this possible? My hobby is planning and budgeting for crying out loud! I can tell you right now how much we spend per month, how much we save, how much we donate, how much we invest, etc but I can’t tell you how much individual items are such as gas, food, etc. It really hit me hard when I realized that a gallon of milk isn’t $2.16. I really thought I was close too. It’s embarrassing. I started surveying people to see if they knew the price of things and most of them did. It took me a week to get over this.
And the sale papers came once again. So my experiment began…again. This time, I circled everything we normally buy. I typed up a grocery list with the items, the sale price and which paper it’s from. I did this because I’m used of shopping with a list and didn’t want to dig in each sale paper for each item. I dragged my husband with me to Wal-Mart for help. He totally thought I was nuts trying to save a few cents here and there. But it was for research!
I had to find each item and compare. Wal-Mart was already cheaper than half of items on my list. As for the other half, I saved a grand total of $12.73. That was actually a lot more than I expected. The discount on each item varied from $.06 to $4.84. Still, I’m thinking that the time spent circling the items, typing the list, having to point out each discounted item to the cashier and holding up the line of growing disgruntled shoppers at the register isn’t worth the savings.
On the other hand, let’s look at the big picture. Let’s say that $12.73 would be the average savings per week. $12.73 x 52 weeks= $661.96 per year. A huge chunk of Americans don’t have a nest egg (savings account). Let’s say you take those savings and put it in a savings account that earns 4% interest. How much do you think it’ll grow? Yep, you guessed it, I researched that too.
Current Savings:
$0.00
Years to Enrollment:
10 years
Interest Rate on Savings:
4.00%
Contribution Frequency:
Annually
Amount Saved Per Period:
$661.96
Total Contributions:
$6,619.60
Number of Contributions:
10
Total Interest Earnings:
$1,645.87
Interest Earnings Percentage:
19.91%
Total Projected Savings:
$8,265.47
This could help you in a number of ways 10 years from now. This is nothing but money you would have normally spent on food. Even if you’re not looking that far ahead, couldn’t you use an extra $661.96 per year? You can use it towards Christmas gifts, pay an extra mortgage/car payment, buy yourself something nice. Don’t care about having that extra money? Don’t need it? There are people in this world who greatly need it. You can donate it to the ones that do need it. Most people don’t donate money because they don’t have disposable income. Saving money that you normally spend on food can create disposable income to be able to give back.
Even in a recession, Americans are still very fortunate in comparison to the rest of the world. Yet we take our luxury for granted.
It’s not only about saving a buck. Most of us are fortunate enough not to worry about each nickel and dime. But I think it’s time for us to start thinking about how our actions affect us, our family and the world around us. Any small alteration to our lifestyle could greatly impact us, our family and others.
Will I continue to search for the sales? Maybe. Maybe not. But the research on this was fun and definitely a learning experience. I’m curious to hear your feedback.
#1: I’m about to be banned from the kitchen. It’s quite funny how bad I am at it. Rather than learning how to cook, I’m actually learning what I can pull off and what to stay away from.
#2: The crock pot and I don’t always get along.
#3: My son loves to help me cook so I can get in QT with him
#4 My husband will eat anything….God bless him.
#5: It really takes strategic planning……….or shopping rather.
My typical shopping consists of a minimum of 3 weekly trips to the grocery store to buy items of need, as they come up. (this is in theory of course because I rarely do the shopping) That’s a lot of wasted time when you think about it. Each trip is a minimum of 30 minutes. 30 minutes x 3 times per week= 6 hours per month. Not to mention the cost of gas and impacting the environment with the trips. For people who are so pressed for time these days, 2 hours is a lot. That’s enough time for a monthly massage and a trip to the park. I remember my mother and grandmother taking weekly grocery trips. In which they would buy massive amounts of food, usually hitting sales. Sales were their thing. It was a sport for them. I remember them discussing what needs to be done (what meat to take out of the freezer) the night before, planning dinner for the next day. Everything was already there. I never remember them starting a dinner and then realizing that they were out of something. Well, I didn’t pick up this lifestyle. For New Year’s Day while cooking for friends/family, I sent my poor husband four, that’s right FOUR, times to the store. So I decided now I want to have more of plan like the women before me.
I have a tight nit group of friends whom I talk to about everything. A friend of mine told me her secret. Which, now I know, is not a secret at all, lots of people do this. She takes the weekly sales papers that come in the mail (I usually throw it directly in the recycle box, without even glancing) and brings it to Wal-Mart where she normally does her shopping and they match any sales price. I’m thinking that sounds like a lot of work. I want to minimize my time not add to it. But she claims it really saves money. So I decided to conduct a little experiment, because I was not convinced.
Next time the sales papers came in, I started looking at them. I found things we normally buy and started circling all these great prices. My husband saw me and wanted to know what I was doing. I told him and he pointed out that most of the items I circled are what Wal-Mart usually charges. This is when it hit me. I have no earthly idea how price of things. How is this possible? My hobby is planning and budgeting for crying out loud! I can tell you right now how much we spend per month, how much we save, how much we donate, how much we invest, etc but I can’t tell you how much individual items are such as gas, food, etc. It really hit me hard when I realized that a gallon of milk isn’t $2.16. I really thought I was close too. It’s embarrassing. I started surveying people to see if they knew the price of things and most of them did. It took me a week to get over this.
And the sale papers came once again. So my experiment began…again. This time, I circled everything we normally buy. I typed up a grocery list with the items, the sale price and which paper it’s from. I did this because I’m used of shopping with a list and didn’t want to dig in each sale paper for each item. I dragged my husband with me to Wal-Mart for help. He totally thought I was nuts trying to save a few cents here and there. But it was for research!
I had to find each item and compare. Wal-Mart was already cheaper than half of items on my list. As for the other half, I saved a grand total of $12.73. That was actually a lot more than I expected. The discount on each item varied from $.06 to $4.84. Still, I’m thinking that the time spent circling the items, typing the list, having to point out each discounted item to the cashier and holding up the line of growing disgruntled shoppers at the register isn’t worth the savings.
On the other hand, let’s look at the big picture. Let’s say that $12.73 would be the average savings per week. $12.73 x 52 weeks= $661.96 per year. A huge chunk of Americans don’t have a nest egg (savings account). Let’s say you take those savings and put it in a savings account that earns 4% interest. How much do you think it’ll grow? Yep, you guessed it, I researched that too.
Current Savings:
$0.00
Years to Enrollment:
10 years
Interest Rate on Savings:
4.00%
Contribution Frequency:
Annually
Amount Saved Per Period:
$661.96
Total Contributions:
$6,619.60
Number of Contributions:
10
Total Interest Earnings:
$1,645.87
Interest Earnings Percentage:
19.91%
Total Projected Savings:
$8,265.47
This could help you in a number of ways 10 years from now. This is nothing but money you would have normally spent on food. Even if you’re not looking that far ahead, couldn’t you use an extra $661.96 per year? You can use it towards Christmas gifts, pay an extra mortgage/car payment, buy yourself something nice. Don’t care about having that extra money? Don’t need it? There are people in this world who greatly need it. You can donate it to the ones that do need it. Most people don’t donate money because they don’t have disposable income. Saving money that you normally spend on food can create disposable income to be able to give back.
Even in a recession, Americans are still very fortunate in comparison to the rest of the world. Yet we take our luxury for granted.
It’s not only about saving a buck. Most of us are fortunate enough not to worry about each nickel and dime. But I think it’s time for us to start thinking about how our actions affect us, our family and the world around us. Any small alteration to our lifestyle could greatly impact us, our family and others.
Will I continue to search for the sales? Maybe. Maybe not. But the research on this was fun and definitely a learning experience. I’m curious to hear your feedback.
Thursday, February 26, 2009
Viewing Properties for Sale
I recently conducted a survey among friends, relatives and clients. There are many...many misconceptions about the home buying process. Here is one of the Q & A, which I elaborated on:
As a buyer, when I see a listed property I like, it's best to:
a) Call the listing agent/company who has the property I'm interested in 11%
Note: If the realtor currently represents the seller, and you don't have a buyer-agent agreement with that realtor....how well are you being represented in the event you decide to buy the home? Were you even offered a buyer-agent agreement? Who's interest does the agent hold? Yours? the sellers? Is she/he just seeing dollar signs?
b) Call my realtor to ensure my interest are represented 74%
Note: This is the best answer possible and the majority knew this. Most people start their search online (which is great!). However, they usually end up with whatever realtor they get on the phone when calling/emailing to inquire or schedule a showing. What most buyers don't realize is that they have a choice of many realtors who provide different levels of professionalism and service. Before you start searching online on your own, you should interview realtors and choose the one that suits you and your needs. By doing this, you'll have a realtor to call in the event you find something (online or driving by) you'd like
to view. Realtors can help you with anything on the market regardless of what company it's listed with. And with a buyer-agent agreement, you will have mutual promises in writing to ensure your interests are represented. The GoGetters conduct interviews via phone, online chats, webcam and in person....whatever fits your lifestyle. Email us: Kisha@KishaKana.com or Call 337.291.4754 for a buyer counseling session.
c) Call the list agent/company to get info and look at the property, then call my agent to assist me in buying it 16%
Note: I cannot stress enough on how big of a "no-no" this is. By doing this, you are unintentionally leading another agent into thinking that you are their client. By doing this, it causes unneccessary problems that are easily avoidable by communicating only to your realtor for information and showings.
For more information, please contact us.
As a buyer, when I see a listed property I like, it's best to:
a) Call the listing agent/company who has the property I'm interested in 11%
Note: If the realtor currently represents the seller, and you don't have a buyer-agent agreement with that realtor....how well are you being represented in the event you decide to buy the home? Were you even offered a buyer-agent agreement? Who's interest does the agent hold? Yours? the sellers? Is she/he just seeing dollar signs?
b) Call my realtor to ensure my interest are represented 74%
Note: This is the best answer possible and the majority knew this. Most people start their search online (which is great!). However, they usually end up with whatever realtor they get on the phone when calling/emailing to inquire or schedule a showing. What most buyers don't realize is that they have a choice of many realtors who provide different levels of professionalism and service. Before you start searching online on your own, you should interview realtors and choose the one that suits you and your needs. By doing this, you'll have a realtor to call in the event you find something (online or driving by) you'd like
to view. Realtors can help you with anything on the market regardless of what company it's listed with. And with a buyer-agent agreement, you will have mutual promises in writing to ensure your interests are represented. The GoGetters conduct interviews via phone, online chats, webcam and in person....whatever fits your lifestyle. Email us: Kisha@KishaKana.com or Call 337.291.4754 for a buyer counseling session.
c) Call the list agent/company to get info and look at the property, then call my agent to assist me in buying it 16%
Note: I cannot stress enough on how big of a "no-no" this is. By doing this, you are unintentionally leading another agent into thinking that you are their client. By doing this, it causes unneccessary problems that are easily avoidable by communicating only to your realtor for information and showings.
For more information, please contact us.
Wednesday, February 18, 2009
Mardi Gras, Charity & Opportunities
Acadiana’s Mardi Gras Parade Schedule
Carencro Mardi Gras ParadeFeb 21
The Carencro Mardi Gras Parade is held each year on the Saturday before Mardi Gras beginning at 11 a.m. The parade travels down University Avenue from Butcher Switch Road to Railroad Street.
Youngsville Mardi Gras Parade
Feb 21 1pm
Starts at the Public Works building and ends at Fountain View
Children's Parade
Feb 21
Mardi Gras parade featuring Lafayette's children's krewes.Lafayette. 12:30 p.m.
Krewe of Bonaparte Mardi Gras Parade
Feb 21Lafayette. 6:30 pm
Queen's Parade
Feb 23Mardi Gras parade honoring the Southwest Mardi Gras Association's
Queen Evangeline.Lafayette. 6 p.m.
King's Parade
Feb 24
Mardi Gras parade honoring King Gabriel, reigning royalty for the
Southwest Mardi Gras Association.Lafayette. 10 a.m.
Lafayette Mardi Gras Festival Parade
Feb 24
Mardi Gras parade honoring King Toussaint L'Ouverture and Queen Suzanne Simonn.Lafayette. 1 p.m.
Independent Parade
Feb 24
Sponsored by KADN Fox 15/KLAF UPN TV.Lafayette. 2 pm.
January Charity Event Report:
In January we collected donations for the Faith House of Acadiana. This charity helps abused women break free from their abuser and start fresh. Thank you to those of you who were kind enough to contribute. We were able to bring four bags of clothes/household items along with a monetary donation to the Faith House.
February Charity Event Goal:
Help us support the Big Brothers/Big Sisters of Acadiana. This program provides mentors to under privileged kids who are missing that adult figure in their life. Radim, Khaison and I will be bowling to raise money for this great cause. Please consider donating (even small amounts help). Minimum amount we need to raise is $105.
Please respond if you'd like to contribute.
Take advantage of every opportunity: The tax credit in the Stimulus Bill is $8000, or 10% of the value of the home for any first time homebuyers who purchase homes from the start of the year until the end of November. It starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000, and buyers will have to repay the credit if they sell their homes within three years.
Sunday, February 8, 2009
Slow down.....
What a gorgeous weekend Lafayette LA displayed! Perfectly clear blue skies, sunny and about 70 degrees with a breeze. Why the weather report? It has a lot to do with how I structured my weekend.
Normally, I work seven days a week. Even in my free time, I'm working. Filing paperwork, analysis, statistics...all which I consider fun. I can't sit still. I'm constantly in motion. And I'm not alone. We live in a very fast paced society. Everything was due yesterday and we are programmed to constantly do things quickly, with little to no tolerance for delay.
With today's technology, we are constantly connected. We are available to everyone all the time. But how connected are we to the things around us? Are we so immersed with our cell phone and the internet that we don't notice others around us? How often do we sit in silence? How often, when running from place to place, do we really notice the view?
I make it a point to be in the moment, no matter where I am. When I'm with clients, I don't answer the phone because I believe it's rude. Same when I'm having lunch or dinner with someone. When I'm attending a continuing education class...I don't text or email. I save that for the breaks, along with returning calls. I don't bring my phone down at all in church. You get the point. I'm pretty good about balancing "being connected" with "being in the moment".
But where I find I lack is enjoying the simple things. Paperwork and statistics will be there tomorrow. How often to I sit still and do nothing? The day was so gorgeous Saturday that I gave away my afternoon phone duty to venture out and do something different. I was going donate blood for a friend in need and couldn't go to the park if I showed up for phone duty (which is floor time at the office to answer incoming calls, for those of you not in real estate). So I packed up the car with a blanket, soccer ball, husband(who had to cancel his workout) and son and headed to the park. I thought about bringing a book because I knew I'd be bored otherwise but decided against it. The whole point was to do nothing. And not feel guilty for it. We did make a pit stop for sandwiches from Quiznos. (if you haven't realized, I'm not all that domestic and was not prepared for a real picnic)
The park was packed with people but not in an annoying way. There was plenty of space for everyone. We sat and ate our sandwiches. Then we sprawled out on the blanket. Sometimes talking, sometimes not. We stared at the sky. We watched other people. We even did yoga. Khaison, our son, didn't want to play on the playground. He was content kicking around a soccer ball.
The theme continued to the night. We didn't watch tv or play the Wii. We played Monopoly for three hours. Khaison seriously beat his two realtor parents....go figure.
For those of you that are thinking, "What is this chic writing about? My weekends are always like that." Good for you! You get it! You are already enjoying the little things in life. For those of you who can relate to me...you should definitely try just doing nothing. I felt the grass beneath my feet yesterday. How often do you feel the grass beneath your feet? How often do you take in the scenery? How often do you play a board game?
I now feel rejuvenated. Remember that life is good but if you don't slow down and enjoy it, it'll pass you by.
Normally, I work seven days a week. Even in my free time, I'm working. Filing paperwork, analysis, statistics...all which I consider fun. I can't sit still. I'm constantly in motion. And I'm not alone. We live in a very fast paced society. Everything was due yesterday and we are programmed to constantly do things quickly, with little to no tolerance for delay.
With today's technology, we are constantly connected. We are available to everyone all the time. But how connected are we to the things around us? Are we so immersed with our cell phone and the internet that we don't notice others around us? How often do we sit in silence? How often, when running from place to place, do we really notice the view?
I make it a point to be in the moment, no matter where I am. When I'm with clients, I don't answer the phone because I believe it's rude. Same when I'm having lunch or dinner with someone. When I'm attending a continuing education class...I don't text or email. I save that for the breaks, along with returning calls. I don't bring my phone down at all in church. You get the point. I'm pretty good about balancing "being connected" with "being in the moment".
But where I find I lack is enjoying the simple things. Paperwork and statistics will be there tomorrow. How often to I sit still and do nothing? The day was so gorgeous Saturday that I gave away my afternoon phone duty to venture out and do something different. I was going donate blood for a friend in need and couldn't go to the park if I showed up for phone duty (which is floor time at the office to answer incoming calls, for those of you not in real estate). So I packed up the car with a blanket, soccer ball, husband(who had to cancel his workout) and son and headed to the park. I thought about bringing a book because I knew I'd be bored otherwise but decided against it. The whole point was to do nothing. And not feel guilty for it. We did make a pit stop for sandwiches from Quiznos. (if you haven't realized, I'm not all that domestic and was not prepared for a real picnic)
The park was packed with people but not in an annoying way. There was plenty of space for everyone. We sat and ate our sandwiches. Then we sprawled out on the blanket. Sometimes talking, sometimes not. We stared at the sky. We watched other people. We even did yoga. Khaison, our son, didn't want to play on the playground. He was content kicking around a soccer ball.
The theme continued to the night. We didn't watch tv or play the Wii. We played Monopoly for three hours. Khaison seriously beat his two realtor parents....go figure.
For those of you that are thinking, "What is this chic writing about? My weekends are always like that." Good for you! You get it! You are already enjoying the little things in life. For those of you who can relate to me...you should definitely try just doing nothing. I felt the grass beneath my feet yesterday. How often do you feel the grass beneath your feet? How often do you take in the scenery? How often do you play a board game?
I now feel rejuvenated. Remember that life is good but if you don't slow down and enjoy it, it'll pass you by.
Monday, February 2, 2009
Perception of a realtor
What do people think of when they picture a real estate agent? Most likely they will see a very busy individual that is constantly running around on the phone , emailing, texting and driving all at the same time. Most people probably see someone who is constantly in a hurry to make that next commission. People most likely will feel that there agent is overpaid. Why pay this person when I can do it myself for free?
Problem is…there is some truth to the perception, depending on what type realtor that person has dealt with. Bottom line is, the public has no clue what realtors do nor do they need to know exactly all what we do. What they do need to know is that we know what we’re doing when we are providing services to them.
How do the Real Estate GoGetters overcome the negative perception the public has of realtors?
Everywhere we go, people want to talk to us about real estate. We take that opportunity to listen and learn from it. People are quick to tell us negative experiences. We rarely hear of the positive ones. We try to take those negative perceptions and use them as a tool to perfect our services.
Effectively communicating is key. Most complaints are due to poor communication between realtor and client.
First off, before engaging in a realtor/client relationship…we conduct a counseling session, tailored for a buyer or seller, whatever the case may be. In this session, the process of buying or selling is broken down and explained to them. Our roles as well as theirs are identified. We feel that by doing this, the client knows what to expect.
Our services are systematic and consistent. Through continuing education, such as CRS courses…we have been able to put a system in place that allows us to cater to our growing clientele. Clients see that we are steadily busy but not frazzled nor overwhelmed.
Our means of communication is flexible and tailored to the comfort level and preference of each individual client. Our clients have the option of phone calls, internet chatting, text messaging, emails and webcam chats. Our clients also have our full attention when interacting with us. We do not answer our phone when we are with clients. We live in the here and now. It’s not necessary to constantly be “plugged” in order to be successful. We return calls and emails the same day. Clients respect that about us. They are okay with waiting on a return call because they are confident that it will be returned and with full attention.
Throughout any process, listing or selling, the client is constantly informed of what’s going on through weekly updates and copies of emails regarding the transaction.
As far as perception on honesty, integrity and ethics…there should be no problem. I’m appalled that this is not obvious. If you, as a client question your realtor’s honesty, integrity and ethics—run fast!
GoGetters on Honesty: Don’t ask if you don’t want an honest answer. It’s like diarrhea of the mouth for us…it’s coming right out! We don’t use “sales” tactics. We’re not in sales. We are service providers. We are here to assist you in accomplishing your real estate needs/goals.
GoGetters on Integrity: Our clients’ needs are put first. Seriously. We love what we do. We get paid for it. But our clients are not a paycheck to us. We only work with clients that are committed to us. We work with clients with different needs in all price ranges.
GoGetters on Ethics: We work with buyers and sellers by contract only. We pay close attention to our fiduciary duties. We do not steal other realtor’s clients. If we learn that you were working with a realtor prior to us, we are willing to work with you only if there services were unsatisfactory to you. We also give the realtor a courtesy call and possibly more depending on the situation. We don’t compete…we create! Maintaining professionalism is very important to us.
In a nutshell, we run our real estate services as a business. An honest, professional, successful real estate business. Money comes and goes but relationships last a lifetime.
Please contact me with questions or if you’d like for me to elaborate.
Problem is…there is some truth to the perception, depending on what type realtor that person has dealt with. Bottom line is, the public has no clue what realtors do nor do they need to know exactly all what we do. What they do need to know is that we know what we’re doing when we are providing services to them.
How do the Real Estate GoGetters overcome the negative perception the public has of realtors?
Everywhere we go, people want to talk to us about real estate. We take that opportunity to listen and learn from it. People are quick to tell us negative experiences. We rarely hear of the positive ones. We try to take those negative perceptions and use them as a tool to perfect our services.
Effectively communicating is key. Most complaints are due to poor communication between realtor and client.
First off, before engaging in a realtor/client relationship…we conduct a counseling session, tailored for a buyer or seller, whatever the case may be. In this session, the process of buying or selling is broken down and explained to them. Our roles as well as theirs are identified. We feel that by doing this, the client knows what to expect.
Our services are systematic and consistent. Through continuing education, such as CRS courses…we have been able to put a system in place that allows us to cater to our growing clientele. Clients see that we are steadily busy but not frazzled nor overwhelmed.
Our means of communication is flexible and tailored to the comfort level and preference of each individual client. Our clients have the option of phone calls, internet chatting, text messaging, emails and webcam chats. Our clients also have our full attention when interacting with us. We do not answer our phone when we are with clients. We live in the here and now. It’s not necessary to constantly be “plugged” in order to be successful. We return calls and emails the same day. Clients respect that about us. They are okay with waiting on a return call because they are confident that it will be returned and with full attention.
Throughout any process, listing or selling, the client is constantly informed of what’s going on through weekly updates and copies of emails regarding the transaction.
As far as perception on honesty, integrity and ethics…there should be no problem. I’m appalled that this is not obvious. If you, as a client question your realtor’s honesty, integrity and ethics—run fast!
GoGetters on Honesty: Don’t ask if you don’t want an honest answer. It’s like diarrhea of the mouth for us…it’s coming right out! We don’t use “sales” tactics. We’re not in sales. We are service providers. We are here to assist you in accomplishing your real estate needs/goals.
GoGetters on Integrity: Our clients’ needs are put first. Seriously. We love what we do. We get paid for it. But our clients are not a paycheck to us. We only work with clients that are committed to us. We work with clients with different needs in all price ranges.
GoGetters on Ethics: We work with buyers and sellers by contract only. We pay close attention to our fiduciary duties. We do not steal other realtor’s clients. If we learn that you were working with a realtor prior to us, we are willing to work with you only if there services were unsatisfactory to you. We also give the realtor a courtesy call and possibly more depending on the situation. We don’t compete…we create! Maintaining professionalism is very important to us.
In a nutshell, we run our real estate services as a business. An honest, professional, successful real estate business. Money comes and goes but relationships last a lifetime.
Please contact me with questions or if you’d like for me to elaborate.
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