McLEAN, Va. – March 23, 2011 – Freddie Mac wants to help consumers separate foreclosure fact from fiction using a new video series launched today on its YouTube Channel.

Each 90- to 120-second video dispels one of five common myths that could prevent people from keeping their homes if they face foreclosure. Freddie Mac based the content on its “Get the Facts on Homeownership” education and outreach materials.

 “The videos provide information and resources that just might keep individuals from losing their home,” says Dwight Robinson, Freddie Mac senior vice president of Corporate Relations and Housing Outreach.

The videos each cover one of the following “myths”:

Myth 1: If my house is foreclosed, I can never buy a house again – the foreclosure will stay on my record forever.
Truth 1: Foreclosure can have a devastating effect on your finances and you personally, but you can recover. Use the time after foreclosure to prepare yourself for successful homeownership the second time around by creating a spending and savings plan, and rebuilding your credit.

Myth 2: I should stop paying my mortgage so I can get assistance with my mortgage payments.
Truth 2: Stopping payment on your mortgage only hurts your situation and can expose you to foreclosure and credit difficulties that could require years to rebuild.

Myth 3: If I’m late on my monthly payments, I’ll lose my house.
Truth 3: If you have a financial hardship and fall behind, it’s possible to keep your house and get back on track if you contact your lender as soon as possible to discuss your options. You can also contact a HUD-approved housing counselor by calling the Homeowner’s HOPE Hotline at (888) 995-HOPE (4673).

Myth 4: I am getting many offers for help from a variety of people. They are probably all scams.
Truth 4: Scam artists often target homeowners who are struggling to meet their mortgage commitment or are anxious to sell their home. It’s important to always open and respond to communications from your lender, particularly if you’ve already missed a mortgage payment. In addition, if you are in a financial crisis or facing foreclosure, make sure you work with your lender or a HUD-approved counseling agency to avoid common scams.

Myth 5: My lender is not responding to my inquiries, so I should just give up and face foreclosure.
Truth 5: Whatever you do, don’t walk away and don’t give up. It may take several attempts to reach your lender because their call volume can be very high.

© 2011 Florida Realtors®

Keeping you informed!

Gainesville-Florida-Realty

SEATTLE – Feb. 4, 2011 – Zillow.com and Yahoo! Real Estate launched an exclusive partnership that brings together the two sites and, according to the companies, “creates the largest real estate network on the web.” The number of listings challenges Realtor.com, which is owned by The National Association of Realtors®.

If Zillow and Yahoo do pass Realtor.com, it will be close. For the week ending Jan. 29, 2011, Realtor.com had 6.05 percent of visits in the “Business and Finance – Real Estate” category tracked by Experian Hitwise. The combined total of Yahoo (2.18 percent) and Zillow (4.63 percent) would have been 6.81 percent. Zillow claims that it has almost 16 million unique monthly visitors.

Under the deal, Zillow will handle all real estate listings, and all ads sold will be posted on both websites. The companies say it also opens up Yahoo to local ads, a service formerly available only through Zillow.

The process leading to this final operating agreement, announced yesterday, first began in 2006 when Yahoo Real Estate incorporated Zillow’s Zestimate home valuations into its platform.

© 2011 Florida Realtors®

Keeping You Informed!  Gainesville-Florida-Realty

Florida Realtors Report: 2010 Profile of Home Buyers and Sellers ORLANDO, Fla. – Jan. 5, 2011 – The 2010 Profile of Home Buyers and Sellers in Florida looks at the traits of the state’s current real estate clients, and it identifies the characteristics of today’s homebuyers. It describes the motivations of recent homebuyers and sellers in Florida so real estate professionals can track the changing demands of consumers.

Characteristics of homebuyers

• Forty-four percent of recent homebuyers were first-time owners compared to 50 percent nationwide.
• The typical first-time buyer was 31 years old, while the typical repeat buyer was 54 years old; nationwide, first-time buyers were typically 30 and repeat buyers were 50 years old.
• The 2009 median household income of Florida buyers was $63,300 – slightly lower than the median income of buyers nationwide, $72,200.
• The median income was $53,500 among first-time buyers and $84,300 among repeat buyers.
• Nineteen percent of recent homebuyers were single females, and 11 percent were single males. Nationwide, twenty percent of recent buyers were single females, and 12 percent were single males.
• For 30 percent of recent homebuyers, the primary reason for the home purchase was a desire to own a home.

Characteristics of homes purchased

• New home purchases were at the lowest level in nine years nationwide – 15 percent of all recent home purchases. But in Florida, 18 percent of homes were new.
• The typical home purchased was 1,800 square feet, built in 1998, and it had three bedrooms and two full bathrooms.
• Seventy-eight percent of homebuyers purchased a detached single-family home.
• The median price of a home was $161,000 compared to $179,000 nationwide.
• When considering the purchase of a home, 73 percent of buyers considered commuting costs very or somewhat important.

The home search process

• For four in ten homebuyers, the first step in the home-buying process was looking online for properties.
• Eighty-nine percent of buyers used the Internet to search for homes.
• Real estate agents were viewed as a useful information source by 98 percent of the buyers who used an agent while searching for a home.
• The typical buyer searched for 12 weeks and viewed 15 homes. This compares to 12 weeks and 12 homes viewed by the typical buyer nationwide.

Home buying and real estate professionals

• Seventy-nine percent of buyers purchased their home through a real estate agent or broker.
• Seven percent of buyers purchased a home in foreclosure – slightly higher than the share of buyers nationally.
• Forty-four percent of buyers found their agent through a referral from a friend or family member.
• Seventy-two percent of buyers would definitely use their real estate again or recommend the same agent to others.

Financing the home purchase

• Eighty percent of homebuyers financed their home purchase compared to a much higher percentage, 91 percent, of buyers nationwide.
• The typical buyer financed 93 percent of their home purchase.
• Forty-six percent of buyers said they made some sacrifices, such as reducing spending on luxury items, entertainment or clothing.
• Twenty-eight percent of buyers reported their mortgage application and approval process was somewhat more difficult than expected, and 16 percent reported it was much more difficult than expected.

Home sellers and their selling experience

• A real estate agent assisted 86 percent of home sellers. Nationwide, 88 percent of sellers used a real estate agent when selling their home.
• Recent sellers typically sold their homes for 94 percent of the listing price, and 63 percent reported they reduced the asking price at least once. Among all sellers nationally, sellers typically sold their homes for 96 percent of the listing price, and 57 percent reduced the asking price at least once.
• Thirty-nine percent of sellers offered incentives to attract buyers, most often assistance with home warranty policies and closing costs.

Home selling and real estate professionals

• Thirty-nine percent of sellers who used a real estate agent found their agents through a referral by friends or family, and 23 percent used the agent they worked with previously to buy or sell a home.
• Eighty-eight percent of sellers reported that their home was listed or advertised on the Internet.
• Among recent sellers who used an agent, 81 percent reported they would definitely (61 percent) or probably (20 percent) use that real estate agent again or recommend the agent to others.

For-sale-by-owner (FSBO) sellers

• The share of home sellers who sold their home without the assistance of a real estate agent was 10 percent, or slightly higher than the national share of 9 percent.
• The primary reason that sellers chose to sell their home using a real estate agent was to avoid paying a commission or fee.

Keeping You Informed!  Gainesville-Florida-Realty

Article Provided by © 2011 Florida Realtors®

Jill Schmitt Is a Registered Selling Broker for HUD?

If you are interested in looking at HUD homes you have found the right place!

You need to do the following:

1.  Get Pre- Approved for Financing First!

2.  Search for a HUD Home to Purchase!

3.  Make a Bid online with a registered HUD Selling Broker!!! (Jill Schmitt)

To Search HUD Listings - Click Here!!

HUD Home Store is the listing site for HUD real estate owned (REO) single-family properties. This new site provides the public, brokers, potential owner-occupants, state and local governments and nonprofit organizations a centralized location to search the inventory of HUD properties for sale.

WASHINGTON – Dec. 9, 2010 – Despite confusion created by recent and probable year-end tax legislation changes, the 2010 federal income tax environment is still quite favorable, noted Robin Christian, senior tax analyst for the Tax & Accounting Business of Thomson Reuters. “However, we may not be able to say that after 2010; therefore, tax planning actions taken between now and year-end may be more important than ever. Be careful though – Congress could change the ball game before the end of the year.”

Following are seven planning ideas to consider while there is still time to act before the end of the year.

1. Accelerate itemized deductions into this year. If your Adjusted Gross Income (AGI) will be more than $170,000 ($85,000 if you are married and file separately) next year, you may want to accelerate into 2010 your state and local tax payments that are due early next year. You may also want to prepay in 2010 some charitable donations that you would normally make in 2011. Why? Because for 2010, the phase-out rule that previously reduced write-offs for the most popular itemized deduction items (including home mortgage interest, state and local taxes, and charitable donations) is gone, but is scheduled to come back in 2011, unless Congress takes action to prevent it, which looks increasingly unlikely.

If the phase-out rule comes back as expected, it will wipe out $3 of affected itemized deductions for every $100 of AGI above the applicable threshold. For 2011, the AGI threshold will probably be around $170,000, or about $85,000 for married individuals who file separate returns. Individuals with very high AGI may have up to 80 percent of their affected deductions wiped out.

2. Think twice before deferring income into 2011. This strategy makes sense if you are confident you will be in the same or lower tax bracket next year, but the tax picture for 2011 is blurry. With just weeks left in 2010, the fate of many tax provisions for 2011 and beyond is still unknown.

3. Time your investment gains and losses and consider being bold. As you evaluate investments held in your taxable brokerage firm accounts, consider the impact of selling appreciated securities this year instead of next year. The maximum federal income tax rate on long-term capital gains from 2010 sales is 15 percent. However, that low rate only applies to gains from securities that have been held for at least a year and a day. In 2011, the maximum rate on long-term capital gains is scheduled to increase to 20 percent. That will happen automatically unless Congress takes action, which currently seems unlikely.

To the extent you have capital losses from earlier this year or a capital loss carryover from pre-2010 years (most likely from the 2008 stock market meltdown), selling appreciated securities this year will be tax-free because the losses will shelter your gains. Using capital losses to shelter short-term capital gains is especially helpful because short-term gains will be taxed at your regular rate.

What if you have some poor performing securities (currently worth less than you paid for them) that you would like to dump? Biting the bullet and selling them this year would trigger capital losses that you can use to shelter capital gains, including high-taxed short-term gains, from other sales this year. If you think your investments that are currently underwater are poised for a comeback, you can buy them back after taking a loss as long as you do not reacquire them within 30 days.

If selling many poor performing securities would cause your capital losses for this year to exceed your capital gains, no problem. You will have a net capital loss for 2010. You can then use that net capital loss to shelter up to $3,000 of this year’s high-taxed ordinary income from salaries, bonuses, self- employment, etc. ($1,500 if you are married and file separately). Any excess net capital loss gets carried forward to next year.

Selling enough poor performing securities to create a big net capital loss that exceeds what you can use this year might turn out to be a good idea. You can carry forward the excess net capital loss to 2011 and beyond and use it to shelter both short-term gains and long-term gains recognized in those years, plus up to $3,000 of ordinary income each year-all of which may well be taxed at higher rates after 2010. This can also give you extra investing flexibility in future years because you will not necessarily have to hold appreciated securities for more than a year to get better tax results.

4. Maximize contributions to 401(k) plans. If you have a 401(k) plan at work, you can tell your company how much you want to set aside on a tax-free basis for next year. Contribute as much as you reasonably can, especially if your employer makes matching contributions. You turn down “free money” when you fail to participate to the maximum match.

5. Take advantage of flexible spending accounts (FSAs). If your company has heath or child care FSAs, before year-end you must specify how much of your 2011 salary to convert into tax-free plan contributions. You can then take tax-free withdrawals next year to reimburse yourself for out-of-pocket medical and dental expenses and qualifying child care costs (depending on the type of plan). Watch out, though, FSAs are “use-it-or-lose-it” accounts – you do not want to set aside more than what you will likely have in qualifying expenses for the year. And, starting in 2011, over-the-counter drugs (e.g., aspirin and antacids) will no longer qualify for reimbursement by health FSAs, so you may need to consider that when determining your 2011 contribution amount.

If you currently have an FSA, make sure you drain it by incurring eligible expenses before the deadline for this year. Otherwise, you will lose the remaining balance. For health FSAs, it is not difficult to drum up some items such as: new glasses or contacts, dental work you may have been putting off, or prescriptions that can be filled early. Also, for 2010, over-the-counter drugs still apply.

6. Adjust your federal income tax withholding. If it looks like you are going to owe income taxes for 2010, consider bumping up the federal income taxes withheld from your paychecks now through the end of the year. When you file your return, you will still have to pay any taxes due less the amount paid in. However, as long as your total tax payments (estimated payments plus withholdings) equal at least 90 percent of your 2010 liability or if smaller, 100 percent of your 2009 liability (110 percent if your 2009 adjusted gross income exceeded $150,000; $75,000 for married individuals who filed separate returns), penalties will be minimized, if not eliminated.

7. Make energy efficiency improvements to your home. A great way to cut energy costs and save up to $1,500 in federal income taxes this year is to make energy efficiency improvements to your principal residence. Basically, if you install energy efficient insulation, windows, doors, roofs, heat pumps, furnaces, central A/C units, hot water heaters or boilers, or advanced main air circulating fans to your home during 2010, you may be entitled to a tax credit of 30 percent of the purchase price. However, the maximum total credit you can claim for 2009 and 2010 combined is limited to $1,500. Without Congressional action, the credit will not be available after 2010.
Taxpayers should consult with a personal tax advisor before applying these or other tax strategies.
 
Copyright © 2010 The Associated Press.

Keeping you informed Gainesville-Florida-Realty!

NEW YORK – Nov. 19, 2010 – Rates on fixed mortgages jumped from their lowest levels in decades this week.

Mortgage buyer Freddie Mac said Thursday the average rate for 30-year fixed loans rose to 4.39 percent from 4.17 percent, the lowest level on records dating back to 1971. The 15-year loan also climbed to 3.76 percent from 3.57 percent, the lowest since that survey began in 1991.

Rates rose because Treasury yields climbed to their highest level since July. Mortgage rates tend to track those yields.

The yields rose mostly because traders dumped Treasurys they bought up before the Federal Reserve announced its $600 billion bond-buying program to spur the economy. Republican economists and lawmakers have criticized the Fed program, saying it could lead to runaway inflation. Those fears have led investors to sell their bonds.

Before last week, mortgage rates had been at or near historic lows since April as investors, worried about the economy, shifted money into the safety of U.S. Treasurys. Mortgage rates fell to their lowest point as traders snatched up Treasurys ahead of the central bank’s announcement.

The recent jump in rates rippled through the mortgage market. The number of people filling out mortgage applications slumped last week, the Mortgage Bankers Association said Wednesday. Purchase applications dropped by 5 percent from the previous week, while refinance applications tumbled 16.5 percent.

While refinancing activity got a boost, low rates did little to buoy the struggling housing market. Potential buyers are worried about their jobs or unable to qualify for a loan because of tighter credit standards. Others can’t sell their own homes before buying another.

To calculate average mortgage rates, Freddie Mac collects rates from lenders across the country on Monday through Wednesday of each week. Rates often fluctuate significantly, even within a single day.

Rates on five-year adjustable-rate mortgages averaged 3.40 percent, up from 3.25 percent, the lowest rate on records dating back to January 2005.

Rates on one-year adjustable-rate home loans were unchanged at 3.26 percent.

The rates do not include add-on fees, known as points. One point is equal to 1 percent of the total loan amount.

The average fee for 30-year mortgage in Freddie Mac’s survey was 0.9 point. It was 0.7 point for 15-year fixed loans and five-year mortgages. It was 0.6 point for 1-year mortgages.

Copyright © 2010 The Associated Press, Janna Herron (AP real estate writer). All rights reserved. This material may not be published, broadcast, rewritten or redistributed

Brought to you by Gainesville-Florida-Realty

How to Know if You're Hit by the Taxman

It isn't until 2013 that the new Medicare Tax starts for home sales. You have a while not to even care. And when it does take effect it will not apply to certain homes that are sold. To be eligible for this tax you have to have in excess of $250,000 of adjusted gross income if married filing joint or $200,000 filing as individual. That gets a lot of taxpayers out of the category immediately. Presently, the capital gains exclusion is still in existence for gains on home sales. $500,000 of gain is exempt for married filing joint and $250,000 of gain is exempt for individuals. Next, if you are still eligible there still may be a reduction for you because the 3.8% Medicare Tax applies to your "net investment income". This is easy right? The good news is that many people will be excluded from this new tax based on income and excess home gain on the sale.

Explain A Little More Please

First, a review of the sale of main residence rules:

• You must have owned and lived in the home for at least 2 of the prior 5 years and it must be your main residence.
• When you sell your home and you have a gain you can exclude the amounts as shown in the preceding paragraph. The important term is gain on the home sale and not the proceeds. Gain is the difference between the sale proceeds with allowed adjustments less the adjusted basis of the home you sold. In order to compute the basis of the home you sold you should refer to IRS Publication 523. However, if you still have a taxable gain after you calculate the adjusted home sale proceeds minus the adjusted basis of the home minus the allowable exclusion, first congratulations, then this remaining gain could be subject to the new 3.8% Medicare tax.
• Yet this new tax applies to the gain on the residence that in included in the "net investment income".

Thus One More Explanation Is Necessary

Could this gain on the residence be reduced further? Well again yes or no but possibly. But to save our sanity and for this discussion, let's just look at what is "net investment income" and leave it there for now. The real worry can kick start in 2013.

"Net investment income" as reported on IRS Form 4952 shows that your gross income from property held for investment can be reduced by investment expenses and the result is net investment income. The point is that the home gain that is lumped in with other gain on investments might be adjusted for certain expenses and the difference or net will then be subject to the new 3.8% Medicare tax. Just be aware that there is a new tax on the gain on certain home sales possibly looking for you!

Article brought to you by Gainesville Florida Realty

For all your Real Estate Needs!!

for Real Estate Sold in

Gainesville and  Alachua County, Florida

For the Period July 1^st through September 30^th

Years 2010 and 2009

                                                                                  2010                        2009

Sales Price Volume                                  $85,371,237          $114,043,786

List Price Volume                                     $90,961,605          $120,465,859

Average Sale Price                                    $188,042               $189,757

Average List Price                                     $200,356               $200,442

List/Sell Ratio                                               94%                     95%

Median List Price                                       $165,000               $169,900

Median Sale Price                                      $159,900               $165,000

Average Days on Market                                 164                      159

Type of Financing:                                              2010                    2009

Conventional                                                     178                      258

Cash                                                                    141                      119

FHA                                                                     100                      190

VA                                                                        22                        24

Other                                                                  13                        10

Jill’s Analysis of Activity Report for July 1 through September 30, 2010

The level of overall sales activity is down approximately 25% from 2009 to 2010. The good news is that a trend of stabilization appeared. The Average Days on the Market, the Average List and Average Sale Price are extremely close for a year over year comparative. The other good news is that the List/Sell Ratio was 95% in 2009 and only fell 1% to 94% in 2010. The List/Sell Ratio compares the price asked for the property to the final price the property was actually sold for. The only noticeable decrease was in the comparison of the Median List Price to Median Sale Price. The Median Price is where the larger majority of homes being sold are priced.

Searching for Homes?  Visit Gainesville-Florida-Realty

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Those snapshots of life for Alachua County children are why Gen. Colin Powell and his wife Alma's organization, America's Promise Alliance, named the county one of the "100 Best Communities for Young People" in the nation.

"The 100 Best Communities for Young People are taking bold and effective steps to help their youth graduate and lead healthy, productive lives," Alma Powell, chair of the Alliance, said Tuesday. "Each community has proven that they are developing programs and implementing initiatives to provide young people with the essential resources they need to graduate from high school and succeed in college and a 21st century career."

Brent Christensen and Eric Godet from the Gainesville Area Chamber of Commerce along with Alachua County Children's Alliance member Beck O'Brien accepted the award in Washington, D.C., on Tuesday at a ceremony in front of the Washington Monument. A local celebration is scheduled for Nov. 7 to recognize the agencies that contributed to the recognition. County officials will receive two road signs designating the area as one of the 100 best as well as a trophy.

The award comes as the Alachua County Children's Alliance continues to work toward increasing after-school help for those in need, reducing dropout rates and increasing graduation rates, along with reducing the number of children in foster care. The alliance is a nonpartisan group that meets monthly to promote better outcomes for children.

"It's really congratulations to the community and the community alliance," said Esther Tibbs, Department of Children and Families circuit administrator and county alliance board member. "While we have work ahead of us, this marks a milestone as public and private agencies have found new ways to cooperate and collaborate to better meet the needs of Alachua County's children."

Alachua County — like most counties in Florida — struggles with Florida Comprehensive Assessment Test scores, along with poverty and drop-out rates.

The Gainesville Sun reviewed statistics provided by the Florida Department of Education and found Alachua County graduation rates and FCAT reading scores improving, along with a decline in the dropout rate. But the numbers also highlight the work that lies ahead:

Nearly 23 percent of high school students didn't graduate last year.

55 percent of 10th-graders did not pass the FCAT reading test this year.

Nearly 50 percent of students receive a free or reduced-price lunch.

"It's only a beginning," Tibbs said about the work and the award.

One bright spot is that Alachua County's SAT scores are the highest in the state. High school students nationwide take the test, which can determine college scholarships and placement at universities.

Part of the reason Alachua County won the 100 Best award, organizers say, is not because it's at the top of the heap in test scores or athletics but because residents are working to make a difference in children's lives each day, especially those in need.

"These winning communities refuse to let the challenges they face be the determining factor in the lives of their children and youth," Alma Powell said. "Instead, they are helping to build an infrastructure of assertive, successful and dynamic young people that are the future of this country."

Alachua County agencies have revved up or started new programs in the past few years, including:

Success By 6, a United Way program to encourage children to be ready for school. The organization has spent $1.8 million on programs dedicated to improving school readiness.

Boys and Girls Clubs, a stalwart of after-school activities for decades.

Snuggle-Up Centers, a program in which volunteers read to children at Alachua County Public Libraries.

Welcome Baby Kits, which sends volunteers into homes with books to encourage families to read.

In addition, community leaders in 2008 successfully campaigned to get a one-cent sales tax passed to pay for arts programs in the schools at a time when budget cuts were killing similar programs throughout the state.

The Alachua County School District last year received a 21st Century Learning Community Grant, a federally funded program that provides after-school help for elementary and middle school students. The first-year grant was for $700,000. It is allowing the district to provide after-school and summer help for every middle school student in the district — more than 10,000 sixth-, seventh- and eighth-graders.

"And absolutely everything is free ... not a nickel out of parents' pockets," Melissa Montgomery, the program's coordinator, said when it was announced last fall. "Students do not have to financially qualify. As long as a student is enrolled at a school in Alachua County, they can attend one of these sites."

In addition to tutoring, the program provides extracurricular activities such as dance, photography, martial arts, mad scientist, art, furniture design and technology-based activities. It is designed to improve academic performance along with the behavior of adolescents and preteens.

One student who says after-school programs made her life better is Jaterra Bonds, a freshman basketball player at the University of Florida. She participated in the city of Gainesville's recreation programs at the Northeast Community Center.

"I learned patience, social interaction, how to take criticism, discipline and many other valuable lessons," said Bonds, a graduate of P.K. Yonge Developmental Research School at UF. "I have changed as a person, because now I'm more mature and know how to handle the different situations of life."

Contact Kimberly C. Moore at kimberly.moore@nytrng.com.

Keeping you informed www.Gainesville-Florida-Realty.com

What a Price Reduction!  Regents Park Condo! 

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Penhouse suite in the heart of downtown Gainesville. Custom built with all the upgrades you could imagine. One of two elite condos in this condo community. Custom kitchen, granite, crown molding, hardwood staircase and floors. Currently a two master suite set up as a three bedroom condo but could be converted back to a 4 bedroom very easily. 14 ft ceilings, huge balcony for outdoor living in town. Open and bright with windows everywhere! This is a must see unit.

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How to Know if You’re Hit by the Taxman

Well the bottom line is that the new 3.8% Medicare tax on a home sale takes effect in 2013. So it will be a while to even concern yourself. And when it does take effect it will not apply to certain homes that are sold. To be eligible for this tax you have to have in excess of $250,000 of adjusted gross income if married filing joint or $200,000 filing as individual. That takes a number of taxpayers out of the eligibility factor immediately. The next factor to be considered is that the capital gains exclusion on home sales still applies. That is $500,000 and $250,000 of gain is exempt if filing as married joint or as individuals respectively. After all these exclusions and you still are subject to the tax you might have hope because it is imposed on your "net investment income". This is easy right? The good news is that many taxpayers will escape the new 3.8% Medicare Tax on the home sale.

Explain A Little More Please

It would be good to go over the present rules of excluding gain on the sale of your principal residence.

• It must be your main home which is the one you owned and lived in most of the time for at least 2 years out of the prior 5 years.

• Upon selling your home you can exclude the amount of the gain as shown in the paragraph above. The important term is gain on the home sale and not the proceeds. Gain is the difference between the sale proceeds with allowed adjustments less the adjusted basis of the home you sold. IRS Publication 523 is a good resource to use to compute the basis of the home you sold. However, if you still have a taxable gain after you calculate the adjusted home sale proceeds minus the adjusted basis of the home minus the allowable exclusion, first congratulations, then this remaining gain could be subject to the new 3.8% Medicare tax.

• But even then this new Medicare Tax on the home gain refers to including the residence gain in a household’s “net investment income”.

Thus One More Explanation Is Necessary

Could this gain on the residence be reduced further? Well again yes or no but possibly. To keep things simple let's determine what is "net investment income". The real worry can kick start in 2013.

IRS Form 4952 states that your gross income from property held for investment can be reduced by investment expenses resulting in net investment income. So the gain from the sale of the home is mingeled with other gains on their investment and then is reduced for investment expenses. The difference will be subject to the new Medicare tax. Just be aware that there is a new tax on the gain on certain home sales possibly looking for you!

Blog Article provided by Gainesville-Florida-Realty!

Keeping you up to date and informed!  www.Gainesville-Florida-Realty.com

Should I Do That Remodel Project?

Home values in the United States have suffered over the last few years. The result has been homeowners forced to resort to short sale or even in some cases foreclosure. The large number of unsold homes on the market has caused the problem to grow further. Putting your earnings into a devaluing asset does not really seem to make much sense. You really want to avoid paying out funds for a remodeling project when you are anticipating to leave in the near future. In this case you should look at other alternatives in preparing and repairing your house for sale. However, let’s say you are planning to remain in your home for a longer period of time and you want to remodel. Then you can and should know the facts about remodeling projects and what you can expect to see as a return on your investment.

Home Remodeling Surveys

The following information is taken from a survey conducted by Home Tech Information Systems at www.hometechonline.com. The company compiles cost data taken from suppliers and contactors who work in remodeling. This information is then adjusted by regional factors. The Regional areas are broken down into New England, Middle Atlantic, South Atlantic, East and West North Central, East and West South Central, Mountain and Pacific. Project cost and saving comparison for the National Averages are displayed. The resale data information is provided by Realtors based upon estimates. The added house value from the remodeling was supported by surveys submitted to appraisers, real estate agents and brokers. Normal sale circumstances were considered when assigning a cost recovery value. The surveys have a 95% confidence level of accuracy.

National Homes for Remodeling Projects

The surveys for which remodeling projects to pick for a home emphasizes cost restraint is needed. So should you remodel your Gainesville Fl Homes?  Unless you have a lot of money to burn and don't care about what you are spending on the house, you should do the projects that give the best return to you. General comments are that adding living space around or in your home is still attractive to buyers. So is adding items as a mid-range entry door for your home. Wood decking is likewise giving high returns of over 80% of your cost investment. The costs projected here are based on mid range type improvements and will vary depending on materials you choose and the size of your house and rooms. The main purpose of this article is to give you an idea of what to expect to recapture on your cost investment. 

Here is a partial list of remodeling projects and how they will possibly be of value to you for your home investment:

Improvement Type  Job Cost Resale Value 


Bathroom Addition $39,046 $23,233 


Wood Deck $10,634 $ 8,573 


Sun Room Addition $73,167 $37,118 


Garage Addition $58,432 $36,361 


Bathroom Remodel $16,142 $11,454 


Major Kitchen Remodel $57,215 $41,260 


Minor Kitchen Remodel $21,411 $16,773 


Roof Replacement $19,731 $13,133 


Vinyl Siding $10,607 $8,476 


Entry Door Steel Gauge $1,172 $1,470 


Replace Vinyl Windows $10,728 $8,217 


Roof Replacement $19,731 $13,133 


Vinyl Siding $10,607 $8,476 


Entry Door Steel Gauge $1,172 $1,470 


Replace Vinyl Windows $10,728 $8,217 

Three quotes should be obtained from contractors to perform any remodeling work. Make sure you get references and check out these references. Contact state and local regulatory agencies asking about the contractor for filed complaints. Inquire if complaints are on file about this contractor and what is the nature of the complaint. Nothing will be more costly that hiring the wrong contractor to do your project. Perform your due diligence and don't cut corners on this step. I hope you enjoyed reading the post by Realty Gainesville!

As always keeping you informed.  Gainesville-Florida-Realty

WASHINGTON – June 30, 2010 – Homebuyers would get an extra three months to complete their purchases and qualify for a generous tax credit under a bill overwhelmingly passed by the House on Tuesday.

Under current law, homebuyers who signed purchase agreements by April 30 have until today, June 30, to close on the sale to qualify for tax credits of up to $8,000. The bill would give buyers until Sept. 30 to complete their purchases.

The extended deadline only applies to people who signed purchase agreements by April 30. The National Association of Realtors estimates that about 180,000 homebuyers who already signed purchase agreements are likely to miss the deadline.

“We owe this to the people who have essentially followed the rules who are caught by a closing date,” said Rep. Sander Levin, D-Mich., chairman of the House Ways and Means Committee.

The bill passed 409-5. It now goes to the Senate, where senators were working Tuesday evening on a bill that would extend the tax credit and extend unemployment benefits for workers who have been laid off for long stretches.

The Senate could vote on its bill as early as this week – if senators can round up 60 votes to overcome a filibuster.

The popular tax credit has helped to stabilize the nation’s slumping housing market. Nearly 3 million taxpayers claimed the tax credit through May 22 – claiming more than $21 billion – according to the Treasury Department.

The Realtors group says the tax credit has generated 1 million new home sales that wouldn’t have happened otherwise.

The bill would also make it easier for the Internal Revenue Service and state prison officials to share information about inmates in an effort to fight fraud. The Treasury Department’s inspector general for tax administration reported last week that nearly 1,300 prison inmates had improperly received more than $9 million in homebuyer tax credits while they were locked up.

The report said the IRS did not have up-to-date information on inmates.

The tax credit for first-time homebuyers was part of President Barack Obama’s economic recovery package enacted last year. In November, Congress extended the credit and expanded it to longtime owners who bought new homes. First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.

The Realtors group has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month.

Delays with mortgage lending and appraisal companies have meant that home sales are taking far longer to complete this year.

“A lot of lenders weren’t able to handle the influx of loans that came with the tax credit,” said Lucien Salvant, a spokesman for the National Association of Realtors.

There have been particularly long delays for buyers of so-called short sales – ones in which banks agree to accept less than the total mortgage amount. In Las Vegas, for example, short sales made up nearly a third of all sales last month.

Many banks “just don’t have the process to the point where they can do it in a reasonable amount of time,” said Jack Woodcock, a real estate agent in Las Vegas. Extending the tax credit deadline, he said, would be a welcome relief to those borrowers, many of whom “made their decision based upon that tax credit.”

Copyright © 2010 The Associated Press, Stephen Ohlemacher, Associated Press writer. All rights reserved. This material may not be published, broadcast, rewritten or redistributed. Associated Press writer Alan Zibel contributed to this report.

As always, keeping you informed!  www.Gainesville-Florida-Realty.com

WASHINGTON – June 29, 2010 – According to the National Association of Realtors® (NAR), up to 180,000 homebuyers will lose their federal homebuyer tax credit through no fault of their own if Congress fails to pass an extension by June 30 when the closing deadline expires.

Included in that number are thousands of homebuyers in every state of the union, from 390 in Wyoming to 17,700 in California, according to estimates by NAR. In Florida, 14,830 homebuyers could lose the tax credit if closings are delayed.

“We are strongly urging the Senate and the House to act quickly to pass this legislation and ease the minds and pocketbooks of these homebuyers,” said NAR President Vicki Cox Golder.

“These are not buyers who just entered into the market. These are buyers who previously met all the qualifications for the tax credit, but find themselves at the mercy of a workflow jam with lenders or other delays such as lapses in the National Flood Insurance Program, Rural Housing Service, and new home construction, and might not be able to complete the purchase of their homes by the current deadline,” said Golder. “It would be a tragedy for them not to be able to complete the purchase in time to claim the credit.”

NAR issued the following state-by-state estimate of the number of home sales that would be delayed beyond the June 30 deadline; numbers are rounded to the nearest 10:

Alabama, 2,590
Alaska, 830
Arizona, 5,440
Arkansas, 2,090
California, 17,700
Colorado, 3,390
Connecticut, 1,770
Delaware, 400
District of Columbia, 300
Florida, 14,830
Georgia, 6,270
Hawaii, 710
Idaho, 1,270
Illinois, 7,030
Indiana, 3,560
Iowa, 2, 030
Kansas, 1,840
Kentucky, 2,540
Louisiana, 1,800
Maine, 840
Maryland, 2,630
Massachusetts, 3,930
Michigan, 6,470
Minnesota, 3,760
Mississippi, 1,530
Missouri, 3,600
Montana, 760
Nebraska, 1,110
Nevada, 3,800
New Hampshire, 690
New Jersey, 4,300
New Mexico, 1,160
New York, 9,190
North Carolina, 4,890
North Dakota, 460
Ohio, 8,510
Oklahoma, 2,760
Oregon, 2,090
Pennsylvania, 5,830
Rhode Island, 500
South Carolina, 2,460
South Dakota, 500
Tennessee, 3,910
Texas, 15,340
Utah, 1,130
Vermont, 400
Virginia, 3,890
Washington, 3,190
West Virginia, 940
Wisconsin, 2,690
Wyoming, 390

© 2010 Florida Realtors®

 Keeping You Informed through www.Gainesville-Florida-Realty.com

What is a Short Sale?

If you are looking at homes and see one that is designated a real estate short sale you might inquire "what is a short sale?" A quick definition of a real estate short sale is when a lien holder to the property reduces the amount of the lien to accommodate a real estate transaction. A refusal of the lien holder to accomodate a short sale could likely result in foreclosure.

What is Involved in a Short Sale?

Just because your home has fallen in value since you bought it and you feel it is a waste of money to pay for a declining asset does not qualify you for a short sale. A lender will only approve a short sale if only a true financial hardship is in existence. In addition, foreclosure of the property seems to the next step as a result. To consider a short sale request from the borrower a lender must be satisfied that no assets are available to pay the mortgage. Lenders will not consider short sales if funds can be applied to pay the mortgage loan. Once all paperwork has been submitted and it has been determined that the borrower can qualify for a short sale then the property is listed for sale to potential buyers. Now the property owner can accept bids to purchase the property. These bids will usually be less than the fair market value of the encumbered property. If the borrower approves the purchase offer, then the offer is forwarded to the mortgage lender. The next step is for the lender to determine the actual hardship status of the borrower. The lender will review the borrower's financial situation and make a determination if a short sale will be accepted and the amount for loan release. Keep in mind that the mortgage lender is not approving the sale of the house. The lender is only acknowledging that the receipt from the property sale will be applied to settle the outstanding mortgage on the property.

What are the Consequences of a Short Sale for th Borrower?

There is no doubt an impact on the borrower. For a while the borrower will have a financial impact from the release of the encumbered home loan. However, the penalties of having the property foreclosed are far more severe. 

Some of the more pertinent effects of a short sale on a borrower are:

1. An impact on a credit score of about 80 to 100 points
2. A 2 year wait before a borrower can obtain another mortgage
3. A possible deficiency judgment from the lender although this can usually be negotiated away with a professional negotiator.
4. Tax consequences for an investor property. Primary residences are exempt for debt forgiveness.

Does It Makes Sense for a Bank to Accept a Short Sale?

Mortgage lenders are not in the business of holding homes and therefore want to avoid foreclosure if at all possible. The financial resources of a lender are compromised by a foreclosure. Costs of foreclosing for a lender could be in the $30,000 range. If the property becomes bank owned or an REO, then up to 6 times the value of the REO has to be held in cash reserves. This restricts the use of these monies, not allowing for better investments. One of the first jobs of an REO Officer is to liquidate properties acquired by foreclosure. Therefore, it is truly in the best interest of the lender to work out a short sale where permitted as opposed to going thru the foreclosure process.

There are Negative Points that Accompany Short Sales

Short sales can often take much longer for approval than a regular home sale. This is due to the third party approval for acceptance of the pay off amount. While the results may be beneficial to the potential buyer, patience is needed in a short sale transaction.What can go wrong with a buyer purchasing a Short Sale? - Even with short sale approved properties, banks and lenders can still reject offers from buyers. Some of these causes could be buyer qualification, appraised value showing a large variance between offer price and appraised value, etc. Having an educated agent help buyers with the short sale process is important to make the transaction move forward toward a purchase. You can get more information about short sales from Homes in Gainesville.