Many areas of the country are experiencing buyers markets, and current tax laws make this a very attractive time for parents to help their children become homeowners.  Prices and interest rates may never be lower than they are now, so strongly consider this potential investment in your children’s future.

As parents, you can provide a significant downpayment, free of taxation.  Individuals may gift up to $13,000 per year, so two parents making gifts to their child and spouse can give a total of $52,000 in one year without paying gift tax!

Above and beyond the outright gift, you may loan your family money, as long as you charge a minimum interest rate, which is currently very low.  Then you can make your gifts each year, and your child’s family can use the gifts to pay the loan!

If neither of these options is attractive, you could purchase the home yourself and then set up a Qualified Personal Residence Trust (QPRT), with the home passing to the children at the end of an established term, tax free.  You will need to consult with your financial advisor and employ an attorney to handle this kind of transaction.

Begin by meeting with a REALTOR® from Don Kingsley Real Estate and explaining your situation.  Contrary to what you may have been hearing, there is practically no better investment today than real estate.  Call or stop by our office to speak with one of our Associate Brokers.  If you prefer, email me at donkingsley@kingsleyrealestate.com.

If you own or plan to purchase a home, then you know that insurance is not just a luxury, it’s a requirement.  While you should not skimp on certain coverage items, there are some steps you can take to reduce your overall premium.

If you have a security system installed (and operating!), you might lower your premium by 5% or more.  You’ll just need to provide your insurer with a copy of your contract or latest statement.  Also, while newer homes have smoke alarms already installed, hooking them up in an older home might also reduce your premium by as much as 10%.

Just like health or auto insurance, if you increase your deductible on homeowners insurance, you’ll reduce your premium.  Just be sure you’re prepared to pocket smaller repairs like broken windows or damages from leaks.

If your policy is held by a company that also offers auto or health insurance, look into discounts for multiple policies.  You could save a percentage on both your homeowners and auto policies, for example.

Another money (and time and stress) saver is to document everything in your home with a photographic inventory.  Store photos, cds or videos in a fireproof box or, preferably, a safe deposit box off site.  This will reduce the time and effort required to complete a claim, and guarantee an accurate replacement payment.

Speak to your agent today to find out ways you may be able to reduce your insurance premiums.  Do a review of all your policies and make sure everything is up to date.

If you are ready to make the move, whether selling or buying, call or stop by our office and I will be happy to share my knowledge with you at no cost or obligation.  If you prefer, you can email me at donkingsley@kingsleyrealestate.com.

When a homeowner faces default on their mortgage, there may be two options: foreclosure or short sale.  Foreclosure can be devastating, both emotionally and financially.  A short sale, or one in which the lender accepts a selling price less than the amount owed, is a better option for both the lender and the homeowner. 

Regrettably, nearly seven out of ten homeowners proceed through foreclosure without ever listing their home for sale.  This is due largely to perceived myths about the process, and we need to put a few of these misconceptions to rest.

First, homeowners assume the bank would rather foreclose than accept a short sale.  Not true - foreclosure is often more costly for the lender, and short sales often sell for more than foreclosed listings.  The banks are trying anything possible, within reason, to avoid the foreclosure process.

Next, homeowners believe there is a stigma attached to short sale listings, and that buyers have no interest in such properties.  Not true - to the contrary, many smart buyers are specifically seeking out such offerings for the value they present compared to traditional listings.

Finally, homeowners often assume that there’s not enough time to close a short sale before foreclosure is final.  Not true - foreclosure is a lengthy process and there is time to negotiate a better result, but you need to start today.

If you have questions regarding foreclosures or short sales, please call or stop by our office to speak to one of our Associate Brokers.  We will help you sort out the truths from the myths.  If you prefer, you can email me at donkingsley@kingsleyrealestate.com.