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.

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.

An article appeared recently in the New York Times that beautifully illustrates the opportunities today’s real estate market offers.  A mother working two jobs saved up for a downpayment and managed to buy a large home with a pool for $187,000.  Three years ago, that same home had sold for $370,000!

While sellers are still feeling pressure, buyers with stable incomes and good credit histories are beginning to spread a “feel good” vibe throughout the industry.  Conditions have literally never been better for first-time buyers.  Affordability has seldom been higher and interest rates have hardly been lower.  Selection of inventory is vast, and sellers are highly motivated.

As more buyers enter the marketplace, the ripple effect will be felt far and wide.  When they purchase a highly affordable foreclosure or “short sale,” they have removed a distressed property from the listings, improving values for other homes in the area.  When they buy a “traditional” listing, that in turn sets off a chain reaction whereby the sellers in turn will purchase another home, from sellers who will in turn buy another home, and so on and so on. 

You probably get the picture now.  As we approach some stability in real estate, all indications are that prices will begin rising again.  As the market approaches recovery, don’t miss your opportunity for the buy of a lifetime.

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.