The Buyers Agent
The buyers agent plays a pivotal role in the process of the home sale. Buyer’s agents are specialized real estate agents who concern themselves with assisting buyers to find their prefect home. Usually the buyers agent will network with the other agents in he area and in their office to keep abreast of the inventory of available homes. In being aware of an area’s inventory the buyers agent can use this knowledge to match listed homes to potential buyers with ease.
The second aspect of the buyers agent’s responsibility comes after an offer has been made on a home. Negotiations can be a tricky and emotional thing a buyers agent is a skilled negotiator who will strive to get you the best deal possible on the most favorable terms. The buyers agent also arranges all of the inspections that are necessary for a home to sell. Should the home not pass the inspection the buyers agent can liaise with the listing agent to attempt to come to a fair and reasonable solution for all involved parties. This may involve the buyer walking away from the deal or perhaps the listing agent and home seller making some concessions on price.
When purchasing a home you deserve the same service and protection that the seller of the home is receiving. The services of a buyers agent are a valuable asset that will help to ensure that your concerns and needs are seen to in a timely and professional manner. They protect you at every stage of the buying process informing you seeing that you have the proper resources to make your decision and ensuring that the other participants in the deal fulfill their obligations.
About the writer: REW Writers is a collective publication network facilitated by Real Estate Webmasters each article is contributed by a member of our real estate community. This particular article was submitted on behalf of Liz Bacall the Palm Beaches Florida realty professional.
Tax Advantages For Buyers Of A Second Home
Is it your second home you are purchasing?
Buying a second is good news and it worth celebration. But do you know that you can actually reduce your tax allowance by this good news? You can learn how to tap into this tax rebate in this article. You can learn what the various tax deductions you can benefit from as you purchase your home.
Mortgage interest:
Using a credit facility or a mortgage to finance your second home has its benefit. If you should use the place as a residing place for you rather than for rental you can claim full mortgage interest as a tax deductible. However if you rent it out you cant deduct the mortgage interest from the rental income. But if you use the house for at least 1421 days in a year the house is regarded as a residential home
Property tax:
Property tax is also deductible from your income when buying your
second house.
Do you want to rent the house out?
If you want to rent your home out at any point of the year without paying any tax on such income you can do so as long as the renting does not exceed 14 days. No matter what you receive as income it can be pocketed by you. If it is more than 14 days you would have to report such income. You can deduct expenses associated with the rent on schedule E. expenses like advertising cleaning maintenance insurance management fees repairs mortgage interest taxes utilities and depreciation. If however you decide to rent as well reside in the home your expenses is prorated accordingly. For instance if the property is rented out 80 of the time your rental expenses on those rental incomes would be prorated.
Rental/ residential claim:
You can actually kill two birds with a stone. You can optimize your tax benefit by having your home rented for less than two weeks and get a tax break and keep the rental income. If it is more than two weeks you will have to declare the rental income however you will be able to claim some tax deductions because the home is regarded as a residential since you will have to stay in the house for at least 23 weeks. these allowable tax deductions are charged against the rental income. If there are more expenses than income the loss is not carried forward to a new year. These are the tax deductibles;
- Mortgage interest
- Upkeep
- Maintenance
- Mortgage insurance
- Utilities
- Real estate taxes
- Insurance
- Depreciation
- Supplies and miscellaneous expenses
In conclusion remember the following:
- If the property is not used expenses are deductible against the rent
- If you rent the property less than fourteen days in a year the rent you receive should not be reported in your tax returns
- If it is rented more than 14 days a year your expenses are prorated against your income.
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Subject To Real Estate Investing: A Win-Win-Win Deal
As a real estate investor you should be familiar with alternative nontraditional financing methods. Every property owner you meet will be in a different situation and have different motives for selling. When you are able to choose from a variety of financing options then you can tailor the purchase to each situation increasing your profits and reducing your risk.
“Subject to” is an excellent option when the seller is highly motivated to move their home as quickly as possible. Subject to means that you purchase a property subject to the existing financing. Ownership of the property is transferred to you but you don’t assume the existing loan. Rather you just take over the payment book and start making the loan payments yourself each month. Once you have control of the property you can rehab it flip the house for a profit or find a tenant.
Why would a seller even consider this arrangement? There are many reasons. The seller is almost always in a situation where they want to sell the house quickly. They have a problem that needs a fast solution. It may be due to a relocation for work an impending foreclosure or they may have even inherited another house.
The most common concern sellers have is whether you’ll make the payments as promised. You should have no trouble gaining the seller’s trust if you’re confident about what you’re doing and fully accept that you are responsible for keeping up the payments.
Subjectto real estate investing is not without risk. You should be aware that many home mortgages include a “due on sale” DOS clause. This means the lender has the right to call in the loan that is demand payment of the balance in full upon transfer of the title.
Most experts think that in today’s economic climate lenders are unlikely to exercise the due on sale option especially if the loan payments are made regularly on time and without interruption. However this is a contingency you need to consider. If the lender exercises the DOS clause you’ll need to arrange for your own financing or find a joint venture partner who has the cash to cover the balance.
Subjectto investment deals can be completed quickly because there’s no need for qualifying with a lender. And with no closing costs a subject to agreement is less expensive than a traditional sale. Once you understand the mechanics of subject to you’ll find it to be one of the easiest and least complicated financing arrangements you can put together.
Although some may question the ethics or legality of the arrangement subjectto is a legal and ethical way to purchase property. In most cases you’ll be helping sellers out of a tight spot providing rescue in their time of need. Everyone gets what they want in subject tothe seller gets rid of the property the lender keeps receiving their payments with interest and you stand a good chance of making a tidy profit.
About the writer: Raj Aloke is an experienced real estate agent and writer of the same. He feels Real estate is one of the best investing strategies.To contact raj.alokegmail.com and to know more on real estate investmentreal estate investing resources please visit http://www.realestateinvestingresources.net.