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Tuesday, December 28, 2010
Monday, December 13, 2010
Should the Minnesota Vikings get a new stadium?!
With the dome deflated... is it time? It is always a matter of funding but we are in favor of racino/gambling money being used for the project and limited outside public funds unless given ownership/ stock within the team and stadium like in Green Bay...
Poll to the right posing the question and leave your vote today ------>
If in support of a new stadium check out the FB page linked to this post!
Friday, December 3, 2010
Got Questions... but can't find answers?
Stop waiting for some random person on yahoo, ask or realtytrac and others to respond to you-- these which are great resources are not as personal as the page created here just for you-- below is a note from our FB page.. Enjoy and ASK AWAY!
If you ever are wondering anything in regards to real estate, the twin cities area, housing, rentals etc.. feel free to post a comment on here and you will get a response right away-- stop wondering and start asking!!
No matter what your question is as simple or complex we are happy to help provide a professional REALTOR response and advice. Stop posting to random websites and people hoping someone answers you and get connected with a profession who wants to answer you!
First time/Move-up buyers, Estate sales, Taxes, Where/how to's, Pricing/Listing property, Investing, Schools, Contracting/remodel's, Utilities, and more! Let's here em'-- don't have to raise your hand, just comment! :)
We also have a website to track and ask questions anonymously- visit http://www.formspring.me/CribConnection
How low can home prices go?!
Who knows the truth about this but we do know things are not getting any better, anytime soon! With the foreclosure mess amongst us the low prices and high inventory is here to stay.
On Wednesday, research firm RealtyTrac said 12 percent of all home sales in Minnesota during the third quarter were houses that have been through foreclosure. Nationwide, a quarter of all sales were foreclosures. Statewide, that number is down from last year, but at the current pace of foreclosure activity, the Home Ownership Center estimates that by the end of the year there will be a 13 percent increase in the number of foreclosures.
Likely to be the second worst year on record for home foreclosures and at a time when homeowners are facing increasingly dire circumstances. An extension of unemployment benefits has expired and Congress has yet to renew them. Home prices have continued falling. And lenders are swamped with an unprecedented supply of houses that owners can no longer pay for.
Real estate research firm Realtytrac found that in Minnesota the average sales price of properties in some stage of foreclosure was more than 32 percent below the average sales price of properties not in the foreclosure process.
--Daren Blomquist from Realtytrac said foreclosures accounted for about 25 percent of all residential sales.
"We are seeing in the third quarter basically what the true market is like without the artificial stimulus of the tax credit," Blomquist said. "If you look at overall sales numbers from other sources, overall sales are down as well quite a bit."
Blomquist said that he believes the sharp drop is largely because of the homebuyer tax credit that basically pulled forward a lot of demand to the second quarter.
A slate of data releases shows the Twin Cities residential and commercial real estate markets are still struggling to recover. The Standard & Poor's Case-Shiller home price index indicates Twin Cities home prices dropped 2.1 percent from August to September. Among the 20 cities the index tracks, that drop was the second worst. Cleveland had the biggest decrease. The Twin Cities index showed home prices had been ticking up in the spring and early summer before starting to drop again. In an email, David Guarino, a spokesman for Standard & Poor's, says the Minneapolis market's volatility "is due to foreclosure sales (as a proportion of total sales) increasing rapidly over the past 3 years." Foreclosed properties sell at a lower price relative to comparable non-foreclosed properties. "Increasing and more volatile volumes of foreclosure sales generate more volatility in the Case-Shiller price index," Guarino noted. But Scott Anderson, an economist with Wells Fargo, has another explanation for the apparent volatility in the Twin Cities Case-Shiller numbers for September. "The drop in housing demand has been more severe in the Twin Cities than it has been nationally, so I guess I am not surprised that the Twin Cities had some of the largest home price declines in the nation," Anderson said in an email. Anderson says housing demand has been weak since May, while housing inventory -- the number of homes for sale -- has been on the rise. That dynamic of greater supply and lower demand pushes home prices down. Anderson projects home prices will continue to drop over the coming year."This will increase the financial pressure on households, and prolong the credit problems in the banking system, sapping the vitality of the economic recovery again next year," he said.
Good time to buy if you need to move and build long-term equity but dangerous time to flip with a lack of qualified buyers and over-supply of active listings!
Thursday, December 2, 2010
Mortgage Interest Deduction here to stay? Hopefully...
If you are currently paying interest on a mortgage you need to check out the below info and new website!
Save My Mortgage Interest Deduction <--- New Site from NAHB for homeowners.. Peep below- Don't let the government take this tax deduction away and keep rasing them every way possible!
Save My Mortgage Interest Deduction <--- New Site from NAHB for homeowners.. Peep below- Don't let the government take this tax deduction away and keep rasing them every way possible!
Mortgage Interest Deduction Under Attack
Americans overwhelmingly oppose any action by Congress to tamper with the mortgage interest deduction, but it could be eliminated or scaled back as Congress and the Administration move forward with the important task of deficit reduction.
The consequences of such an approach to deficit reduction would be devastating for home owners, the housing market and the nation’s economy.
SaveMyMortgageInterestDeduction.com is dedicated to preserving the mortgage interest deduction and protecting homeownership. Please join us in this important effort.
^ FOLLOW THEM!
Frequently Asked Questions About the Mortgage Interest Deduction
Q: The mortgage interest deduction is considered a cornerstone of American housing policy. How does it work?
A: The mortgage interest deduction helps make homeownership more affordable by allowing home owners to deduct the interest that they pay on the mortgage for their home when calculating their annual federal income tax. The mortgage interest deduction has been a part of the nation’s income tax code since its inception in 1913.
Q: Can you give me an example of how the deduction benefits a typical home owner?
A: Let’s look at a family with a joint income of $80,000 and a mortgage of $180,000. Assuming that the interest rate on the mortgage is 5.5 percent, the family will save $7,050 in taxes during the first five years of ownership. The amount of the deduction declines slightly each year as the amount of interest that the home owner pays drops and the portion of their monthly payment that is applied to the loan principal increases.
Q: What forms do I need to submit to the IRS to claim the mortgage interest deduction?
A: You will need to itemize on your tax return to claim the mortgage interest deduction. At the end of every year, your mortgage lender will provide you with a statement showing how much interest you paid during the year. The lender will also provide that statement to the IRS, so you do not need to send a copy with your tax return. However, be sure to keep that statement for your records.
Q: Is it true that only wealthy people benefit from the mortgage deduction? Who benefits most from the mortgage interest deduction?
A: Opponents falsely argue that the deduction is only for the wealthy. In fact, according to Congressional estimates, nearly 70 percent of the tax benefit of the deduction is collected by home owners with incomes of less than $200,000. Moreover, the deduction is most valuable for younger households who tend to be recent home buyers with large mortgages, small amounts of home equity and growing families. IRS data indicates that the largest deduction dollar amounts go to people aged 35 to 44. As a share of household income, the largest amounts go to those aged 18 to 34.
Q: How does the mortgage interest deduction make the tax code more progressive?
A: A tax system is “progressive” when higher-income taxpayers pay a higher average tax rate.
Sixty-eight percent of the tax benefit from the mortgage interest deduction goes to taxpayers with incomes under $200,000. However, these households pay only 43 percent of all taxes, so the deduction makes the tax code more progressive by reducing the average effective tax rate for these home owners.
Eliminating the deduction would increase the share of total taxes paid by those earning less than $200,000 and make the tax system less progressive.
Q: Is there a limit on how much mortgage interest a taxpayer can claim?
A: Home owners may deduct interest on up to $1 million of debt on a mortgage used to purchase a home and up to $100,000 in home equity loan debt. These limits were set in 1987, and they have not been adjusted for inflation since then.
Q: Can a home owner deduct the mortgage interest on more than one home?
A: Interest on the mortgage on a principal residence and a second non-rental home is deductible. This rule helps home owners who sell an existing home to buy a new home by allowing the owner to deduct the interest allocable to both homes in a given year.
Q: Can I claim the mortgage interest deduction on a construction loan used to build my home?
A: Yes, you can claim interest on a construction loan for up to 24 months while your new home is being built. Consult with your tax advisor or the IRS for details.
Q: What happens if I refinance my mortgage loan? Is the interest still deductible?
A: Yes, interest on a refinanced mortgage loan is deductible if the mortgage meets all of the other criteria for the mortgage interest deduction. Your tax advisor or the IRS can provide you with the specifics.
Q: I have heard that only about 25 percent of all taxpayers benefit from the mortgage interest deduction. Is that true?
A: No, it is not true. Such a claim is misleading because it ignores the consumer’s “life cycle” of renting and owning homes. Most home owners will claim the mortgage interest deduction during their lifetime. Typically, a taxpayer will begin his/her working life as renter, become a first-time home buyer, claim the deduction, and then stop claiming the deduction after his/her mortgage debt is sufficiently paid down.
Near the end of a mortgage term, significantly less of the home owner’s monthly payment goes toward interest, so owners with older mortgages may find it to their advantage financially to take the standard deduction and not itemize.
The more relevant question is: What percentage of mortgage interest paid is claimed as a tax benefit? Since 2000, 86 percent of all mortgage interest paid by home owners has been claimed on income tax returns. Clearly, most home owners with a mortgage benefit from the deduction.
Q: I have always thought of the mortgage interest deduction as being very important, and I would oppose any effort to eliminate it or limit it in some way. What do other people think about eliminating or altering the mortgage interest deduction?
A: Americans overwhelmingly oppose any action by Congress to tamper with the mortgage interest deduction. Seventy-nine percent of voters polled by Public Opinion Strategies, a national political and public affairs research firm based in Alexandria, Va., said they support retaining federal tax incentives to promote homeownership.
Both home owners and renters were polled in the September 2010 survey, and support for the mortgage interest deduction cut across gender, age, partisan, ideological, education and regional lines.
Q: How many of the renters who were polled said they support homeownership tax incentives?
A: A slightly higher percentage of renters – 82 percent – indicated that they favor providing tax incentives to promote homeownership. Among the renters who were polled, 58 percent said they have used the mortgage interest deduction in the past or hope to use it in the future.
In ranking the importance of current deductions, renters indicated that the mortgage interest deduction is second in importance only to the deduction for medical expenses. (72 percent vs 71 percent).
Many renters expect to become home owners, so this support for the mortgage interest deduction is natural given the high share of interest payments these buyers will make in terms of their total monthly mortgage payment.
Q: What would happen if Congress eliminated the mortgage interest deduction or limited it in some way?
A: Home owners do not expect to lose their mortgage interest deduction, and prospective buyers anticipate taking the deduction. Changing “the rules of the game” would have a significant impact on the market in terms of home owner and home buyer behavior.
As a result, after-tax housing costs would increase, and demand for housing would decrease. In turn, reduced demand would depress home prices, producing a sizeable loss for existing home owners. With housing markets already struggling due to the ongoing effects of the recession, such a change in home values could weaken the economic recovery and perhaps drive the nation’s economy back into recession.
Q: What can I do to make sure that Congress doesn’t tamper with the mortgage interest deduction?
A: Most important, let your Senators and Representatives know that you oppose any change to the tax code that would alter the mortgage interest deduction in any way.
You can also help spread the word. The majority of the nation’s households – almost 70 percent – are home owners, and most would be negatively affected if the mortgage interest deduction was eliminated or cut back. They need to be warned about this serious threat.
Copyright © 2010 National Association of Home Builders.
TRUTH IN HOUSING EVALUATIONS (TIH/TISH) - REQUIRED TO SELL IN MOST MN CITIES! 12/2/2010
Several communities in the Twin Cities metro area require homes to be inspected by a licensed evaluator before they are offered for sale, whether the sale is public or private. Many companies offer these inspections and most cities also have lists of approved/certified TIH inspectors for your area.
*Above chart kept updated by Structure Tech (highly recommended inspection company) and available at their website: http://www.structuretech1.com/truth-in-housing.php
The Truth-in-Housing ordinance is meant to provide accurate information on the condition of property for sale and to help Minnesota cities keep up the quality of housing available. Truth in Sale of Housing reports are valid for 2 years or one sale.
Below from the city of Minneapolis website explains more on the ordinance and process: http://www.ci.minneapolis.mn.us/ccs/tih-home.asp
*ALL LINKS BELOW DIRECT TO CITY OF MPLS WEBPAGE
Below is a complete list of cities in Minnesota requiring a Truth-in-Housing/Time-of-Sale Evaluation. If a city is not listed here, there is no requirement for a Truth-in-Housing Evaluation. 12/2/2010
| CITIES | TYPE OF PROPERTIES | WHO TO CONTACT |
| Bloomington | Single Family, Two Family, & Multiple Family (condominiums, townhouses, mobile homes) Bloomington Homeowners: See the list of Common Hazards for Bloomington | Structure Tech |
| Brooklyn Park | Single Family, Two Family, Townhouses, Condominiums, and any other residential dwellings | The City of Brooklyn Park 763-488-6379 |
| Crystal | Single Family, Two Family, & Multiple Family (condominiums, townhouses, mobile homes) | The City of Crystal 763-531-1000 |
| Golden Valley | All properties, Residential and Commerical | The City of Golden Valley 763-593-8030 |
| Hopkins | All one to four-unit dwellings, including condominiums and townhouses. Hopkins Homeowners: See the list of Common TISH Repairs for Hopkins | Structure Tech |
| Maplewood | All Dwellings | Structure Tech |
| Minneapolis | Single Family, Two Family, Townhouses, and first time condominium conversions. Minneaplis Homeowners: See the list of Common TISH Repairs for Minneapolis | Structure Tech |
| New Hope | All Dwellings | The City of New Hope 763-531-5127 |
| Osseo | All one to four unit dwellings, including condominiums and townhouses. | The City of Osseo 763-425-2624 |
| Richfield | All Dwellings | The City of Richfield 612-861-9882 |
| Robbinsdale | Single Family, Two Family, Three Family, Townhouses, Condominiums Robbinsdale Homeowners: See the list of Common POS Repairs for Robbinsdale | Structure Tech |
| Saint Louis Park | Single Family, Two Family, Townhouses, and Condominiums. | The City of Saint Louis Park 952-924-2588 |
| Saint Paul | Single Family, Two Family, Townhouses, Condominiums, and Co-ops. | Structure Tech |
| South Saint Paul | Single Family, Two Family, Multiple Family, and mobile homes. South Saint Paul Homeowners: See the list ofCommon TOS Repairs for South Saint Paul | Structure Tech |
The Truth-in-Housing ordinance is meant to provide accurate information on the condition of property for sale and to help Minnesota cities keep up the quality of housing available. Truth in Sale of Housing reports are valid for 2 years or one sale.
Below from the city of Minneapolis website explains more on the ordinance and process: http://www.ci.minneapolis.mn.us/ccs/tih-home.asp
*ALL LINKS BELOW DIRECT TO CITY OF MPLS WEBPAGE
Truth in Housing ordinance requires:
- An evaluation to say what condition a house is in.
A copy of the evaluation, the Certificate of Approval (if issued), the list of violations, can be found on the City’s Property Information Web site. - Repairs must be made when a house is sold.
Learn more about required repairs. - A licensed evaluator must complete a Truth in Housing evaluation and provide a disclosure report before any single-family house, duplex, townhouse, or first-time condo conversion can be shown to prospective buyers.
- The Truth in Housing Evaluation, also known as the disclosure report, must be displayed on the property so potential buyers can look at it.
- A re-inspection must be done after any required repairs have been completed. This is separate from the initial evaluation.
Common Repair and Replace Items
Please note: Only homeowners who live in single family houses or townhouses can take out a permit. If the homeowner hires someone to do the repair work and the work requires a permit, that person must be licensed to do that particular type of work. Rental property, duplexes, and non-owner occupied single family/townhouses need licensed contractors for permit work. City inspectors do all re-inspections for repairs that require permits. For repairs that do not require a permit, call your Truth-In-Housing evaluator for your re-inspection.
Common Required Repairs, By Household System
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