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Displaying blog entries 1641-1650 of 1998

Will You Owe Capital Gains When Selling Your Montgomery Home

Friday, March 12, 2010
by The Hat Team

Something to consider when selling your home is the Capital Gains ramifications. Will you owe Uncle Sam money after the sale of your Montgomery home? Capital Gains are calculated as the difference between what you paid for your property and what you sell it for. Here is how you calculate your Capital Gains.

Calculating Capital Gains

(+) PURCHASE PRICE - Price paid for property

(+) COST OF PURCHASE - Transfer fees, attorney fees, inspections

(+) COST OF SALE - Repairs, commissions, attorney fees, inspections

(+) COST OF IMPROVEMENT - Room additions, deck, for example, though not replacing existing

(=) ADJUSTED COST BASIS OF YOUR HOME

(-) AMOUNT YOU SELL YOUR HOME

(=) CAPITAL GAIN

A Special Real Estate Exemption for Capital Gains

Even though the above calculation may indicate you owe Capital Gains, there is a special real estate exemption. Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a Montgomery home is exempt from taxation if you meet the following criteria:

  • You have lived in the home as your principal residence for two out of the last five years.
  • You have not sold or exchanged another home during the two years preceding the sale.

NOTE: As of 2003, you may also qualify for this exemption if you meet what the IRS calls "unforeseen circumstances" such as job loss, divorce, or family medical emergency.

Learn more about selling your Montgomery home by visiting HatTeam.com.

What's your Montgomery home worth?

Always consult a tax attorney regarding current tax laws.

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Montgomery Real Estate For Sale: 5910 Carmel Drive Montgomery, AL 36117

Friday, March 12, 2010
by The Hat Team

Montgomery Real Estate For Sale: 5910 Carmel Drive Montgomery, AL 36117

MLS# 272597

Hang onto your heart! From the moment you step into the entry of this handsome patio home, you'll sense it's been loved and cared for. The gleaming hardwood floors and tall ceilings will please your eye. And once you discover all the storage, you'll know it's perfect as your next home! Double closets in one bedroom, two walk-in closets and a kitchen chock-full of cabinetry, too. Plus there's a nifty covered patio out back relaxing. Wish we could include interior photos, but it is tenant occupied. So just call your agent and see for yourself!

Learn more about 5910 Carmel Drive and other Montgomery Real Estate by visiting HatTeam.com.

 

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Montgomery Real Estate For Sale: 3011 Boxwood Drive Montgomery, Alabama 36111

Sunday, March 7, 2010
by The Hat Team

Montgomery Real Estate For Sale: 3011 Boxwood Drive Montgomery, Alabama 36111

MLS #272333

Updated and affordable in desirable McGehee Estates. If you are looking for the McGehee Estates lifestyle without the price tag, and you want a home that has been tastefully updated, this one should make the cut. Current owners have removed some walls turning cramped ranch style rooms into a LARGE family room. Galley style kitchen opens to informal dining area. Four spacious bedrooms perfect for growing family. The real jewel of this home in the expansive privacy fenced back yard with huge party deck and in-ground BBQ grill. Massive tree provides shade in the summer and is perfect for a rope swing! Convenient to shopping and dining.

Learn more about 3011 Boxwood Drive and other Montgomery Real Estate by visiting HatTeam.com.

 Search all Montgomery Real Estate and homes for sale.

 

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Montgomery Real Estate For Sale: 2983 Old Farm Rd,Montgomery Alabama 36111

Sunday, March 7, 2010
by The Hat Team

Montgomery Real Estate For Sale: 2983 Old Farm Rd,Montgomery Alabama 36111

MLS #272390

Are you ready for a re-do?? Desirable location and great floorplan will make it worth your while to check out this end-unit townhome that lives like a "real house!" Needs a good bit of work (click photo for clear structural report, detailed home inspection, roof inspection and re-roof estimate) but priced $31,500 below an identical unit that sold for $141,500. So roll up your sleeves and build some equity. Cash poor? Call about the FHA 203K program, which allows you to finance all the needed improvements with as little as 3.5% down payment and a monthly payment way cheaper than you could rent comparable space!

Learn more about 2983 Old Farm Road and other Montgomery Real Estate by visiting HatTeam.com.

 

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Credit Score Myths & How To Avoid Them When Buying A Montgomery Home

Thursday, March 4, 2010
by The Hat Team

The most important piece of a person’s financial life is their credit score. Whether buying a new Montgomery home, applying for a job, refinancing your Montgomery home, paying off debt, or getting utility service, your credit score will drive the outcome. One would think that Americans are all aware of what the scores are measuring and what factors play a part. But, most Americans do not know enough about the three digit rating or what is involved. Avoid these credit score myths when preparing for the purchase of your next Montgomery home.

montgomery homeMyth: Checking a credit report can either damage or lower your score.
A credit report can be conducted by you or someone like an employer as many times as desired with out having any impact on your credit score. Reviewing your credit report will never change your credit score. Just make sure that reports are retrieved through the bureaus or a legitimate score seller.

Myth: Age, sex, and income are factors that affect your score.
None of this information plays a role in determining your score. A higher income may make it easier to pay off debts, but income and net worth have no impact of credit scores.   

Myth: A credit score can be destroyed by shopping for a loan.
When seeking to extend credit, too many inquiries can have a negative impact your credit score. However, when several inquiries are made by the same type of lender with in a 14 day period they only count as one inquiry against your credit.

Myth: Your score can be hurt by credit card offers.
When companies offer you their credit cards it does not have any affect on your score. Unless, your take advantage of all the offers and carelessly use all of the credit available. The number of credit cards a person manages does not matter. The important thing is maintain a low ratio of used to available credit.

Myth: Credit scores of married couples are shared.
A credit score can only belong to one person, just as one person can only have one score. A married could does not share a credit score, but their scores could have an affect each others. When opening a joint account, the information accumulated from that account’s activity will be reflected on both people’s credit report. If all of the couple’s accounts are joint, then their scores will be somewhat similar.

Myth: Closing unused accounts improves credit scores.
Unused accounts most likely contain available credit, which is an important part of a credit score. Closing unused accounts removes available balances from the equation. This causes your ratio of used to available credit to increase, ultimately affecting your credit score.

Myth: Paying off bills is a quick way to boost credit.
Over time, a good record of properly paying bills will improve credit. Credit reports reflect your long term history, scores do not change overnight.

Search all Montgomery homes for sale.

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Montgomery Foreclosure Statistics

Thursday, February 25, 2010
by The Hat Team

There are 1,336 Montgomery foreclosure homes for sale with 162 new foreclosures in January 2010. The average selling price of a Montgomery home is $177,628 and the average foreclosure selling price is $145,404, a $32,224 savings, according to RealtyTrac.com.

Montgomery Foreclosure Activity and Home Price Index

Home price appreciation remained the same in January while the number of new Montgomery foreclosure homes dropped to 162.

montgomery foreclosure

Montgomery foreclosure activity is based on the total number of properties that receive foreclosure filings - default notice, foreclosure auction notice or repossession notice - each month. Home price appreciation is based on month-over-month percentage change of the Home Price Index. The Home Price Index is calculated from home sales records.

Montgomery Foreclosure Geographical Comparison

Montgomery foreclosure activity is 0.09% lower than national statistics and 0.08% higher than Alabama statistics.

montgomery foreclosure

Montgomery Foreclosure Activity by Month

The number of Bank-Owned properties increased from 86 in December to 123 in January. The number of Auctions decreased from 106 to 39. The 6-month trend reflects an increase in Montgomery foreclosures.

montgomery foreclosure

Are you or someone you know behind on mortgage payments and facing a Montgomery foreclosure? You do have options. A short sale may be the answer to saving you, your family and your home. I am a Certified Distressed Property Expert (CDPE) with specialized training in helping families avoid foreclosure. Give me a call for a private consultation.

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Midtown Montgomery Real Estate Sales Statistics - January 2010

Friday, February 19, 2010
by The Hat Team

Home sales surged in the fourth quarter of 2009 with many areas seeing double digit gains according to the National Association of Realtors. Total existing-home sales (single-family and condo) jumped 13.9 percent above the third quarter and 27.2 percent above the fourth quarter of 2008. Distressed property sales accounted for 32 percent of the fourth quarter transactions, down from 37 percent from 2008.

Lawrence Yun , NAR chief economist, said the first-time home buyer tax credit, combined with record low interest rates, played a dominant role in fourth quarter sales. Yun went on to say, “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”

Let's look at January real estate sales to see how the housing recovery is progressing in Midtown Montgomery.

Midtown Montgomery Real Estate Sales Statistics - January 2010

Midtown Montgomery real estate sales statistics for January show pending sales have increased by 21% in 2010 compared to January 2009. The average sales price increased by 25% to $104,275 while sold listings were up by 23% from 2009.  Market times were 9 days less than 2009.

Midtown
Montgomery

Pending
Sales

Sold
Listings

Average
Market Times

Average
Sales Price

Jan 2010

43

31

85

$104,275

Jan 2009

34

24

94

$78,109

For the latest Midtown Montggomery real estate market conditions in your area, please call me at 800-HAT-LADY or visit HomesForSaleInMontgomeryAlabama.com.

Information is provided by the Montgomery Area Association of Realtors and is deemed accurate but not guaranteed.

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Selling Your Montgomery Home In Todays Economy

Friday, February 12, 2010
by The Hat Team

In today’s rapidly changing economy, many Montgomery home ownersmontgomery home wonder or worry about selling their home for the best price, and terms in the shortest period of time. 

Here are 9 helpful hints if you are considering selling your Montgomery home:

  • Be realistic, and price your home right by using market comparisons.
  • Know your true bottom line for both price and time.
  • As the market shifts, be prepared to evaluate your price.
  • Advertise your property with yard signs, local MLS and newspapers.
  • Get rid of the clutter! It makes your house appear smaller.
  • Clean your walls, floors, baseboards, stove and refrigerator. Buyers will know your house is well cared for.
  • Clean up outdoors! Remove tools, toys and be sure lawn and shrubs are neatly trimmed.
  • Have the carpets cleaned to eliminate odors, smoke, and pet smells.
  • Make minor repairs such as leaky faucets, sticky doors, etc.
  • Be sure to ask for a Market Analysis before listing your property.

Learn more about selling your Montgomery home by visiting HatTeam.com. 

What’s your Montgomery home worth? 

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What's So Great About Home Buyer Tax Credit Anyway?

Monday, February 8, 2010
by The Hat Team

April 30th seems like a long way off, but for prospective Montgomery home buyers who are on the fence about making a home purchase, the next few months represent a countdown of sorts as huge tax credits are about to expire. Here are important details for you to know:

montgomery homeTax Credit for First-Time Home buyers
First-time home buyers may be eligible for the tax credit. The credit is 10% of the purchase price of the home, with a maximum available credit of $8,000. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

Tax Credit for Current Homeowners
The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years. Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What Are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010. Those in the military do have some special extensions on the time lines available.

What's So Great About a "Tax Credit"?
The benefit of a tax credit is that it's a dollar-for-dollar benefit, rather than a "tax deduction", or reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time home buyer who qualified for the entire benefit were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.

Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little or no income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!

Higher Income Caps
The amount of income someone can earn and qualify for the full amount of the credit has been increased. Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.

Maximum Purchase Price
Qualifying buyers may purchase a Montgomery home with a maximum sales price of $800,000.

It's also important to note another upcoming deadline as the Federal Reserve winds down a program that has been keeping home loan rates artificially low. The fact is that the lowest rates of 2009 were driven down to their attractive levels because of the Fed's Mortgage Backed Securities (MBS) purchase program, which the Fed once again emphasized in its January 27, 2010 Rate and Policy Statement will end on March 31, 2010. As the Fed's program winds down and ends, rates could rise over time since MBS will have less support from the Fed.

If you have any questions regarding the tax credit, pick up the phone and call me. I'm here to help you take advantage of one of the greatest opportunities Montgomery home buyers may ever have.

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The Montgomery Real Estate Podcast - February 2010

Friday, February 5, 2010
by The Hat Team

Sandra Nickel of The Hat Team presents:



montgomery real estate, podcastThis month's edition covers Montgomery real estate market activity and then we'll offer three top tips to make sure you get the most of today’s opportunity!

Features special guest Terri Murphy of US Learning.


Program length: approximately 8 minutes

 

download podcast mp3 file | subscribe to podcast feed
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