Govt. Allowing For Higher Estate and Gifts Tax Exemptions

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Estate Planning can be a harrowing experience. Involving lawyers, deciding how to distribute your assets and finally after putting your decision in writing, implementing it. But one aspect of this relatively easy process is better this year than it will be in 2013. 

Steve Thompson of Aspey, Watkins & Diesel, P.L.L.C., deals with many estate-planning cases and he helps us to understand why this year is particularly beneficial from a taxation standpoint. Through the end of 2012, the federal government is allowing higher tax exemptions for estates and cash or property gifts. What this means is that people that want to gift their assets this year or owners of property that have passed away will be able to transfer more this year than they will be able to at the turn of the year.

Where the typical exemption amount is $1M, through the end of 2012 the amount of exemptions is a very significant $5.12M, proving the remaining time left this year to be a very useful opportunity for those choosing to avail this tax benefit.

Though the process is not too lengthy nor complex, it does involve a few steps – that is why if one is planning to engage in any gift, cash or property transfer this year they should begin the process soon. Not to mention that though unlikely, there is always the chance that Congress could make additional changes to the tax exemption allowance prior to year’s end.

To learn more about this, contact Steve or Valerie for a closer look.

Steven can be reached either via email at sthompson@awdlaw.com or by telephone at 928.774.1478. For all your real estate related inquiries, please call or email Valerie at 928.214.7100 or Valerie@flagstaffhouses.com.

7 Reasons You Should Be Buying or Selling in Today’s Real Estate Market

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After what may seem the longest ever housing slump, we are finally seeing some great conditions after five, seven years that are leading to even greater results for countless Americans. There are many reasons for this increase in activity and today I wanted to share them with you. If you have been on the fence about buying or selling or if you know someone that has been contemplating entering the real estate market, consider the seven must-know factors below. In short, if you know someone that wants to buy or sell, now is the time.

Low, Low Cost of Borrowing

Never before in the history of our real estate industry have interest rates been as low as they are today. There’s no sign at least for now of them going up and what these low rates translate to – especially when combined with other factors mentioned below, is an unprecedented opportunity for buyers and sellers.

There’s Plenty of Money for the Taking

In the past several years, banks have been wary of lending and this was particularly during a time when the housing finance industry was dealing with several scandals and subsequent settlements. But now, banks are finally able and willing to lend again, allowing deserving homebuyers the chance to finance their homes.

Low Home Prices Make Buying Better

In a traditionally stronger renters’ market, we are finally looking at buying being more affordable. This works really well in the favor of sellers that have previously been unable to sell in the wake of our recession.

Fewer Homes, More Demand

Inventory is systematically dwindling downward, causing a stronger demand for homes across our marketplace. Not only is this due to increased sales but also the number of REO and bank-owned properties is going down.

Plenty of Buying Power Floating Around

There are a large number of first-time homebuyers on the prowl at this time. With prices edging down, interest rates already at their record setting lows and inventory declining – buyers have a lot of buying power and they are out there to exercise it.

Comparable Sales Are Working Favorably

After many, many months of not-so-favorable comparable sales and appraisals, we are finally seeing numbers that work in sellers’ favor. Homes are being appraised at higher values and other sales indicate higher sales prices – leading to a good result for sellers getting top dollar for their properties.

Economy Boost With Presidential Election

Historically an election year has usually posed a good environment in terms of our national economy. Better economic times, no matter how temporary they may seem, always point to increased activity in the housing market. This works in the favor of buyers and sellers; buyers will see more quality homes on the market and will have the money to spend to purchase those homes while sellers will enjoy increased buyers vying for their property.

Flagstaff Real Estate Market Update - August 2012

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As a trusted real estate advisor, everywhere I go I am asked about the current state of our market – and it’s a question I love answering, particularly these days! Right now, we are enjoying a huge surge of sales, fantastic interest rates, low inventory and enough buyer interest out there to keep things interesting. Here are some details:

Active Listings

Right now we are reporting a total of 574 active residential listings on the MLS with only 60 of them being distressed sales (either bank-owned properties, HUD homes, short sales, etc.).

Listings Under Contract

Currently there are 177 homes under contract with just 52 of them being distressed sales. Representing about 30% of the entire homes under contract, distressed sales are slowly being flushed out of the system and we can expect a more normal, stable market soon. Time will tell how the election impacts our housing industry over the next couple months but usually it has been a positive influence.

Sold Properties

In the first six months of 2012 we saw 424 home sales go through with an average sale price of about $260,000. The big news however, is in the sales numbers in the couple months since then. From the first of June this year until now, we have reported a total of 261 sales – a HUGE surge is sales that almost blows away the first six months’ numbers. The average sales price did go down a bit to $239,000 but this is a good sign because lower priced properties are moving as well, which is good for our marketplace overall.

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In summary, regardless of what the media might have you believe the truth is that our market is doing quite well. We are enjoying a strong number of sales, our inventory continues to dwindle down making demand rise and sales more competitive. Interest rates also remain historically low, which are driving buyers out there to lock in the amazing rates available right now. All this makes it a great time to buy and a great time to sell too

For more information on our market, more details or how your particular neighborhood is doing in our marketplace – contact me directly at 928 214 7100 or via email at valerie@flagstaffhouses.com.

Local Property Management Company Goes Extra Mile

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Here in Flagstaff we get a lot of property owners that choose to come here primarily for vacations and special occasions. During the rest of the year, their property either sits waiting or is rented out to others. But for owners that live quite a distance away it can be a daunting task to care for a second property like this.

Pristine Property Services is a company founded and run by local Flagstaff residents that know the area. They have a background in the construction business so they are very familiar with the housing industry. But there is something about this company that makes it different from the rest.

Full Service Menu Offered to Clients

The services provided by the company are not limited to just the average list of things you might expect to see in a typical rental unit managed by a property management firm. Pristine Property Services provides a unique blend of facilities that go well above and beyond just taking care of maintenance issues. In addition to the standard property management items of assisting with finding a renter during off-seasons and handling routine (and emergency) maintenance, the list of provided services expands into day-to-day household tasks.

As you can see in the video, Katherine Spillman and her husband Dave take care of everything. Their website lists in great detail the extent of what everything is but you’ll be surprised at just how much they will take care of. Their tagline says “Let Us Take Care of the Details” and this could not be truer. Anything from checking on the property while the owners are absent, taking care of plants, making sure that linens are changed, kitchens are stocked – they truly do take care of almost anything.

Property Management Firm With a Twist

Outdoor care whether it means snow removal, landscaping, gutter cleaning or lawn care – are all passed on to the company by many clients, leaving them the peace of mind to focus on more important things. Given the fact that many owners of second homes in Flagstaff come here only seasonally, the task of making sure pipes do not freeze and the home continues to appear occupied, also falls within the realm of Pristine Property Service’s care.

One of the things that sets this company apart from others is the unique list of concierge services they provide. Not only can they drop off and pick up clients from airport or other transportation hubs, but they will also arrange cars if necessary. Their goal is that their clients can show up and immediately enjoy their vacation. No need to fuss with things like cleaning up the home or cleaning up after tenants that have just vacated the place. They’ll even run errands for their clients!

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Handling a second home for anyone that needs their property cared for is Pristine Property Service’s specialty. To find out more, you can visit their website or contact them via email at info@pristineflagstaff.com or call 928 699 6772.

SAVE THE DATE! Flagstaff Community Luncheon to Support the Boys & Girls Club Alongside Team Emily to Give Back to Our Children

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Stop whatever plans you’re making for September and listen to this! Our very own community is putting together a fantastic event to benefit the new Boys & Girls Club of Flagstaff as they prepare to open their doors on July 23, 2012.

Working together with Team Emily and the Emily Marie Benson Memorial Scholarship, I’m excited to share with you an amazing upcoming event that will be fun, feel-good and plenty filling! There will be a luncheon hosted at the Outback Steakhouse here in Flagstaff, with lots of great prizes and not one – but TWO auctions! A live auction and a silent auction will help contribute to this amazing cause to give our kids lots to do. Check out their website (linked above) to see what plans they have in store.

September 8, 2012 – a very awesome date, with a lot of fantastic people, doing a fabulous job to help give our kids more of what they need.  There’s nothing like serving our community and this event is a great way to do it!

Tickets are just $25 and you can pick them up by either contacting anyone on my team (call us at 928.214.7100) or through the Boys & Girls Club of Flagstaff at 928.420.3535. If this organization touches your heart and you want to donate – we LOVE it and welcome any monetary gifts you’d like to give to help this terrific club!

I can’t wait to see you there and when you see me walking around with a huge smile on my face – stop and say hello. I look forward to seeing you.

New Mortgage Partnership With Chase Offers Clients Some Great Perks

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We already know that this is a fantastic time to buy or refinance your property! In fact, it is not too bad a time to sell either. So if you are among the many smart people that have made the decision to jump off the fence and invest in a new home or refinance your existing one, there is great news!

So many homeowners and prospective buyers are stumped when it comes to financing. In fact, there is little to no advice out there in the mainstream for consumers to look into when deciding which financier to approach. Short of hiring an attorney or getting some light advice from their real estate agents, consumers are on their own to decide which lenders make the best sense for their purchase or refi.

But we have recently joined forces with a bank that is familiar, stable and solid and in our area employs none other than our very own local Flagstaff community members. How does this impact you as a borrower? You can go in confidently that you will be meeting face to face with a local person rather than working through telephones, faxes and emails to secure your mortgage. So to help guide you with your choices of lenders, here are two programs offered by Chase that are totally customer driven and completely beneficial to a new homeowner or one seeking to refinance.

$1,500 in Closing Costs Subsidy Available

This little known program offered to Chase customers covers almost all homes. Though not all borrowers may qualify, most homes do so it is worth the time to inquire with our local branch to see if your loan qualifies to receive closing cost subsidy.

1% Cash Bank Each Year on Principal and Interest

Chase customers have an exclusive benefit that allows qualified banking customers to receive 1% of their principal and interest back each 12-month period. This can either come in the form of cash or as a principal reduction. The only qualifying factors are that you must be a chase customer (don’t worry, you can set up a new account prior to your home purchase) and set up automatic payments from your account each month.
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If you are unsure who to obtain your mortgage from, contact me at 928 214 7100 or call TJ at our local Chase Bank branch 928 779 7351 so you can find out exactly how they can help you with the best possible deal on the purchase of your home!  And remember, it’s not often that we hear “free money” these days, but when we do – I say, GRAB it!

Major Shift in Local Flagstaff Real Estate Market

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For the first time in eight years, we are seeing a tremendous shift in selling trends across the board. Our existing inventory of homes on the market available for sale is now forty percent lower!  What does this mean to you as a player in the game of real estate?  It means that now, as a seller, you finally have some leverage. A lot of leverage, in fact. Here are some of the things we are seeing as a result of this huge change toward the sellers’ favor:

Low Competition

Fewer homes on the market translate to fewer competitors to contend with. Wouldn’t you like to be the only house on the street that is for sale?  Often times a buyer will home in on a certain area and then seek to find the property of their liking within that vicinity. If your house is available for sale then imagine the type of interest you will receive if yours is among the very few listed in that neighborhood?

Multiple Offers

When you do factor in that many buyers are out there still trying to take advantage of the phenomenally low interest rates, sellers are clearly in a win-win situation. Buyers have no idea how long these interest rates will remain so low, so naturally they are scrambling to get theirs now. Sellers are being met with multiple offers now, with the leverage to be able to be choosy with the offers that come in.

Bidding Wars

Along with multiple offers comes another aspect of selling in a sellers’ market – bidding wars. Some buyers are so dead set on the home they want that they make an offer the seller can’t refuse. Usually all the buyers that are interested tend to make various offers within the fair market value range to start but then move up slowly in competition with one another.

Near or At 100% of Asking Price

The bidding wars almost always end up in the seller receiving top dollar. Whether this means achieving a number very close to the asking price or even above, the bottom line is that when there are more buyers vying for you property, you (the seller) have the edge.

Many Trading Up

A lot of sellers have more than just selling in mind; they are planning to buy in these phenomenal market conditions. Keeping in mind that it is currently a “dollar for dollar” market, what you receive in the sale of your home will also be translated into what you afford to get in a new home. That means that this is the perfect time to trade up while locking in very low interest rates in the process. The low cost of borrowing right now is ample incentive for many sellers to trade up nowadays.
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So here is the question I ask you: Would you like to drop your house into a growing pool of buyers or would you rather sit the market out and wait for it to change again?

Contact me today so we can get started on getting you a fantastic deal on your home!