Real Estate Home Mortgage Deduction Soon to Vanish

The American Dream is often paired with owning one’s own home. For decades Legislator’s have protected that dream with allowing home owners to claim the mortgage interest paid on their homes as a tax deduction. With a possible phase out of this deduction, could the dream fade?

“There are no cows more sacred in the tax code than the deductions for mortgage interest and property taxes. Together, they add up to at least the $ 75 billion annual subsidy for housing and Homeowners. ” The New York Times.

In 2002, 37.2 million taxpayers claimed the deduction, writing off $336.6 billion, or about $9,000 per taxpayer. Representing about 37% or so of itemized deductions, it was slightly more than itemized deductions for deductible state and local taxes, and twice as much in deductions as charitable donations. Clearly, the mortgage deduction is important and worth a huge amount of money.

In 2005 it was estimated that:

* The mortgage interest deduction will cost the Treasury $72.6 billion, according to congressional estimates.

* The $250,000 and $500,000 tax-free exclusions of home sale profits for single sellers and joint filers, respectively, will cost $23 billion .

* Property tax write-offs cost $20 billion, and tax subsidies for local and state housing bond programs account for $1 billion.

When a congressional committee examined the distribution of homeowner benefits for 2004, it found that people earning $200,000 and more a year – just one-half of 1% of all homeowners filing for deductions – pocketed 22% of the $70.2 billion in write-offs in 2004.

In 2007, Rep. John D. Dingell (D-Mich.) unveiled a draft of his “carbon tax” legislative reform package. Part of this draft legislation was a phase out the mortgage interest deduction on large homes. The phase-out schedule for the mortgage interest write-off, beginning with houses of 3,000 square feet, which would lose 15 percent of their deductions, and ending with houses of 4,200 square feet and larger, which would receive no deductions at all.

Dingel said: “In order to address the issues of climate change, we must address the issue of consumption-we do that by making consumption more expensive.”

Naturally, with the real estate market bust, the Dingell package was shelved. Once the housing market recovers, lets’ say two years from now, it’s a very good bet the administration will be looking hard at ways to increase taxes to pay down the huge bailouts. The unusual financial troubles and the move to green, will be the perfect time to push through such legislation. Unlike the Dingel proposal ,which was aimed at larger homes, the future legislation will most probably cover all mortgage interest deductions. To increase its’ chance at passage, it is a good bet it will be a phased in plan with deductions decreasing over a number of years.

To get the reversal of the sacred deduction started, President Obama’s impending budget proposes a cap on the mortgage interest rate deduction. Couples earning $208,850 or more would loose the deduction. Where currently households at the 33% and 35% tax rates are allowed the deduction, Obama would reduce their deduction to only 28% of the value of those payments. This is likely a first step to what seems to be a total elimination of mortgage tax deduction. If (when) this passes, Obama will find it easier to lower the earning cap for the mortgage tax deduction, leading up to an even lesser amount in the future. It seems on the horizon that the mortgage interest rate will be only for low income earners.

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Real Estate Broker Price Opinion – The Importance of Hiring a Local Real Estate Appraiser to Value Your Property

Real Estate Broker Price Opinion

Many people try to determine the values of their real estate by researching websites that value a home based on aggregate data collected through various means. While these online services can be quick and seem easy, computer generated reports can be grossly inaccurate. More often than not, computer data collected from outdated and often unreliable resources can cause issues when trying to determine a fair value of real estate in any specific market. These websites may be of some value in showing valuation trends, but can in no way replace the services of a local real estate appraiser. Real Estate Broker Price Opinion

Highly trained professional real estate appraisers, while more expensive, can effectively determine a home’s true value and also take into account variables a computer generated report can’t. Desirable factors such as a highly rated school system, economic development and surrounding neighborhoods can drastically affect a home’s value positively. Areas that are run down but in the midst of a gentrification process are unlikely to get a fair appraisal from a computer model, someone untrained or out of the area. Only a local appraiser will be familiar with rising or declining valuations and building trends in specified locations.

While obtaining a professional real estate appraiser to correctly determine a home’s value can be critical during a divorce, to value an estate, or to satisfy a lender requirement for a mortgage, choosing a reputable local appraiser that knows their market area can mean the difference between a good appraisal and a bad one. If an appraiser does not intimately know the market area they serve, many factors used to determine a home’s value can be left out of the process. Without knowledge of the current market area trends, property values given by an appraiser outside of their locale can be skewed.

As banks and other financial institutions are now dealing with untenable volumes of foreclosed homes, there is a growing trend among banks and other financial institutions to hire real estate brokers to complete BPOs (Broker Price Opinion), rather than pay appraisers for a home’s valuation. Although BPOs should be more accurate than computer generated reports in determining a property’s value, there is considerable controversy as to whether or not these real estate agents have adequate training to complete these reports effectively. Real Estate Broker Price Opinion

BPO services cost less than a uniform appraisal report; however, much like their computer generated counterparts, BPOs often omit crucial information. Many lenders do not even require an in-depth inspection or interior inspection of a home, for example. How can anyone hope for any type of realistic property valuation without an on-site inspection?

Appraisers are required to complete a stringent course of training through accredited educational facilities before they are licensed or certified. In some states, appraisers must also complete an apprenticeship under a more seasoned professional prior to being permitted to value property independently. A good appraiser will look at all aspects of the property, including square footage, room count, types of rooms, condition of property, lot size, neighborhood trends and comparable properties in the area that have sold recently, as well as comparable properties currently on the market.

Appraisals take longer than a BPO provided by a real estate broker or online computer generated reports. But, the report from appraisers is in depth and lengthy. All variables used to arrive at the valuation are in black and white.

Searching for a qualified appraiser in your area is relatively easy. Neighborhood banks and lenders are a great referral source. Searching an online directory or your local yellow pages can be another viable source as well when looking for a professional appraiser. Real Estate Broker Price Opinion

In 3 months (or less) you can quickly and easily become a mini real estate tycoon… by flipping houses! Looking to increase your net worth? Read a guide that will change the Way you look at real estate investing forever at Flipping Houses 101.

Real Estate Bidding Wars Can Be Stressful

Purchasing a house can be very thrilling, however when you are tackling multiple offers, it is extremely crucial to keep focused and not let your feelings — or your competitive nature — overshadow the facts because there are many unscrupulous tactics a seller can implement when confronted with potential purchasers attempting to outbid one another for their home. Real estate professionals are likewise susceptible to taking advantage of both the buyers and sellers to boost their commissions higher and transaction numbers more impactful. Without a doubt there are accepted rules of engagement that deal with these situations, however they are not always honored — so everyone involved needs to stay focused and alert for signs of foul play.

To curtail unethical tactics that arise in the bidding procedures, some provinces actually make it against the law for homeowners to list any price that they do not plan to accept just to start a bidding war. Naturally, aggressive bidders should not be informed either by the real estate agent or the homeowner the dollar amount and clauses of pending offers, and any changes to the bidding activity need to be fully disclosed to all parties interested in the home. Unfortunately, in the real world, this kind of pertinent knowledge can be disclosed or be exaggerated to try and produce a larger bid. A large metropolitan region is accustomed to multiple offers but now real estate in Barrie is is experiencing a similar scenario.

Ideally, when buyers find themselves up against multiple offers, they will propose an offer that has the fewest terms and conditions as possible and offers a competitive amount for the home with the intention it will appeal to the seller. It is generally hard for prospective buyers to resist the urge to make extravagant offers in the heat of the moment, a behavior that may be taken advantage of by unscrupulous homeowners and realtors who could send back a perfectly good offer to in an attempt to boost it. In small pockets of real estate, like Alton Village, there may not be an abundance of available properties which may increase the demand and volume of offers.

Some homeowners insist that their agents do not disclose when they receive multiple offers, which creates a condition where bidders are not told that their bids need to be the best they can offer. The majority of homeowners, however, are very keen on letting all purchasers know that they are expecting other offers, but it then becomes their responsibility to make certain no sensitive facts leak out and that the bidding stays equitable for all parties. This does not stop some real estate agents from shopping around with their colleagues by making it public that bidding has started on one of their properties. Homeowners are always trying to get the most from their homes and in smaller sectors there may not be as many purchasers looking for Windsor real estate so these efforts may help to get more offers.

A further dubious strategy employed to misguide possible buyers, as well as hardworking agents, is to look at offers that are not going to be accepted in order to panic the other buyers into a bidding war. A few homeowners even start with a very cheap price in hoping to produce massive interest that will get bids so high they actually exceed the value of the property. But these tactics can go wrong when people talk among the real estate community that a homeowner is manipulating a bidding war because they will refrain from bringing their buyers to view the property.

In 3 months (or less) you can quickly and easily become a mini real estate tycoon… by flipping houses! Looking to increase your net worth? Read a guide that will change the Way you look at real estate investing forever at Flipping Houses 101.

Real Estate Asset Managers List – Why It's Challenging to Get Into the REO Listings Business

Real Estate Asset Managers List

I get many questions from agent. The most common is “Why is it so challenging to get into the REO listing business?” The best way I can answer this is by addressing the corporate sellers major concerns. A corporate seller will more often than not, want someone with property management experience. If they don’t have experience in property management, they’ll want a proven track record with the handling of assets. That’s the reason, for those of you who have been in real estate for a while, you see the same agents getting REO listings, as in the previous REO market. They are usually agents that are in contact with the lenders during the markets when there isn’t REO listings.

One thing most over look is that during the good times of real estate, there is still some foreclosure activity. Most forget about foreclosure during “good markets.” They’re to much work, they don’t pay enough, there’s to many demands. This is something they typically hear from agents. That’s precisely the reason they go back to agents that have served their needs. Taking on new agents exposes them to inexperience, miss-management of the asset and liability for anything that may happen in the property while its in the care of the agent. Not to mention they make less money if they have to be taking the listings from one agent to another, when one fails to perform.

The best way to be considered for listing assignments is by proving to your contacts or asset managers that you are serious about the business. You need to learn the language and get educated in that side of the business. Certifications help. It tells them you at least take the time to get some education on the subject. Not just ask for listings because you have a license. Real Estate Asset Managers List

For that reason you see agents that complete BPO’s day and night getting a listing here and there. They have proven they have the work ethic it takes to be an REO agent. I know colleagues who have been tenacious about they’re pursuit of listings and have attained them, through constant contact with asset managers. Via any means possible, face to face, email and phone. It’s not always necessary to do BPO’s till your blue in the face. It’s a good way, just not the only way. Consistently contacting asset managers, if you know where to find their information, will also get you listings.

Finally, as I mentioned above, get educated in the REO side of real estate. It will take dedication to learn. Complete BPO’s and most importantly, be consistent when you contact asset managers. They will blow you off. Expect it, yet understand that at some point in time you will catch them with their guard down and they will let you in, hopefully with a listing. Real Estate Asset Managers List

In 3 months (or less) you can quickly and easily become a mini real estate tycoon… by flipping houses! Looking to increase your net worth? Read a guide that will change the Way you look at real estate investing forever at Flipping Houses 101.

Real Estate America: A Premiere American Flat Fee Mls Broker

A flat fee MLS broker can help you sell your home much more affordably than is normally possible with a conventional real estate broker. Real Estate America is a flat fee MLS broker with the infrastructure and experience necessary to help you reap the benefits of this innovative method of listing and selling a property.

If this all sounds too good to be true, realize that flat fee MLS brokerages have been a fixture in the real estate industry for years. MLS stands for “multiple listing service.” A multiple listing service is nothing more than a database of real estate listing information, shared among real estate brokers and buyers.

Under ordinary circumstances, the services of a real estate agent come bundled into a large, indivisible suite of services. An MLS listing is usually among these services, but a full suite of services also includes a number of other agent-provided services. Agents providing a full suite of services will conduct open houses, communicate with potential buyers, and even handle contracts and the final transfer of funds from one party to the other.

A flat fee MLS broker is different in the sense that they offer only one type of service: listing in an MLS. All the other things a real estate agent normally does are not done by a flat fee MLS broker, and the bare-bones nature of this type of real estate service, is, naturally, reflected in the price.


The listing fee for a flat fee MLS broker is usually somewhere between $200 and $800, plus a 2.5 to 3 percent commission for a cooperating broker who finds a buyer for the seller’s property. This is considerably less than one would ordinarily pay for a full suite of real estate service, which makes using an flat fee MLS broker truly the most cost-effective option for the average seller.

A cheaper alternative to listing with a flat fee MLS broker would be to simply sell one’s property without a real estate agent, but doing so puts an enormous burden upon the seller. Selling property yourself requires you to take on all of the job functions of a real estate agent, including advertising and showing the property. This can be a lot of work for one person, or even a small group of people. It’s best to enlist professional help–and for a thrifty seller, a flat fee MLS broker is the most cost-effective means of doing that.

A flat-fee MLS broker is less a full-service hireling than a moderately compensated business partner. He or she will provide the bare-bones real estate listing services you need to ensure that a steady stream of interested buyers is actively considering your property. No other method of real estate listing provides such excellent value.

Real Estate America is a flat fee MLS broker. For more information, visit www.Real-EstateAmerica.com.

In 3 months (or less) you can quickly and easily become a mini real estate tycoon… by flipping houses! Looking to increase your net worth? Read a guide that will change the Way you look at real estate investing forever at Flipping Houses 101.

Real Estate Agent Marketing

Real Estate Agent Marketing: Real Estate Agent Marketing Suggestions That Rock!

The real estate industry is turning ferocious. There are innumerable real estate agents in the United States, making excelling an actual challenge. Every real estate agent is different, therefore, every real estate agent marketing campaign must match its subject. It is fundamental to utilize the trial and error rule with a number of ideas until you find the right plan for you, one that serves your style, finances and aims.

Marketing can be intimidating; we show here several suggestions we hope can turn the path easier for you and are useful for attracting the correct users. We promise that one, two or all of these will be good for you once you are set to begin your real estate agent marketing adventure.

First idea. Start a blog. A blog will serve you in expanding your real estate company in many manners and is simple to manage, making it effortless to share interesting and pertinent real estate articles. A bigger amount of superior content equals stronger Internet presence that equals being found on the Internet more easily and inspiring a positive response out of users. A blog gives you the chance to talk with your customers and meet them intimately, which is an important characteristic of any real estate agent marketing campaign trying to to convey to your customers that you care for them and their wishes.


Idea number two. Increment on line presence. Your real estate agent marketing strategy wants you to gain as many future customers as you can. The web is an amazing instrument to touch persons in any corner of the globe, and once you unite a site, a blog, Internet news and writings, you can be positive users will reach you, as you are everywhere. You will pass as an authority as your business is widely covered.

Third idea. Increase your direct marketing plans. The web is a significant real estate agent marketing means, however, there are others of the same worth. Direct marketing is highly effective to fortify and establish your real estate company too. Test several direct marketing instruments and research what is efficient; offer extra value to your communications so that people are prompted to act.

Idea number four. Do public relations. Use it to boost your real estate agent marketing plan and strengthen your image. A piece in the town’s paper, a relevant press release or a free seminar in your community regarding hints to get a home, go a long way when aiming to imprint a solid image among customers.

Fifth idea. Give people something to tattle about. Your venture counts almost completely on word of mouth, thus, help people to want to talk about you and your services continuously. Give distinctiveness which will turn you irresistible and that everybody will desire to communicate to others. Nothing is invalid, simply visualize what would impress your customers and find a way to offer it to them: free interior design tips, free landscape tips or a tour around their new city. Options are infinite.

A real estate agent marketing plan is about imagination and, as any other business, about placing yourself in the customers’ place and surpassing their expectations. Go for it!

In 3 months (or less) you can quickly and easily become a mini real estate tycoon… by flipping houses! Looking to increase your net worth? Read a guide that will change the Way you look at real estate investing forever at Flipping Houses 101.

Pros and Cons of Selling Short Sale Foreclosure Real Estate

Short sale foreclosure involves property that has been returned to the bank as the mortgagor wasn’t able to maintain their loan payments. The lender takes possession of the property and is responsible for its care till it is sold.

Currently, banks are holding a large number of non-performing loans. The amount of money received from the Fed. Treasury is predicated on lenders’ performance.

By law, banks are only permitted to hold a certain number of foreclosed properties. With the consistent in-flow of mortgage defaults, many lenders are fast approaching their quota. Short sales give banks the chance to liquidate property inventory.

Short selling a property could be a saving grace for borrowers unable to refinance or get a loan modification. The method sometimes takes between four and six months to complete, but permits debtors to walk away without owing additional funds.

An exception is when lenders issue deficiency judgments. When 2 or more mortgages are concerned, this amount can be staggering.

Multiple fiscal results happen when deficiency judgments are issues. Borrowers may have to engage in months of phone calls and problem if the court does not report the judgment paid.


Deficiency judgments can prevent borrowers from getting credit of any sort for several years. Debtors have tiny chance of qualifying for another mortgage while the judgment is attached. It affects all levels of credit worthiness and can take a whole life to recover from the financial fallout.

Borrowers should negotiate for Payment in Full without Pursuit of Deficiency Judgment. This legally-binding agreement states the bank accepts the sale price as payment in full and won’t chase the borrower for the difference.

However, they aren’t not as damaging as foreclosure or bankruptcy. If borrowers can get back on track financially, they can sign up for another mortgage loan within two years.

However, borrowers can expect to provide mountains of financial documentation to prove they are financially insolvent.

Most mortgage lenders need borrowers to have a professional buyer lined up before debating about the idea of short selling. Others OK the householder time to list their real estate through a realtor. This window of opportunity is typically two to 3 months. Otherwise, the bank will initiate foreclosure proceedings.

A tip for locating a buyer for short sale foreclosure property is to seek out personal speculators or investment groups.
Both borrowers and banks save time and cash selling to financiers. Banks can expedite the transaction because there is no need to find a buyer. Borrowers do not need to spend countless hours worrying how they are going to find a buyer. Financiers benefit because they purchase the property at a reduced price. When correctly built short sales offer a win-win to all parties involved.
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In 3 months (or less) you can quickly and easily become a mini real estate tycoon… by flipping houses! Looking to increase your net worth? Read a guide that will change the Way you look at real estate investing forever at Flipping Houses 101.