Real Estate Information

The division of assets between the spouses is an important decision to finalize a divorce.  The exercise looks relatively simple: assign a value for each of the assets and divide them based on a mutual agreement between the parties.

The challenge is to make a fair division which requires an analysis to determine their value after they’re converted to cash.

Assume the two major assets in the example, a retirement account and the equity in the home, are equal at $100,000.  It might seem logical to give the home to one spouse and the retirement account to the other.  However, if the person receiving the home decides to sell the home, the net proceeds could be considerably less than the spouse receiving the retirement account.

Let’s pretend that the spouse with the home negotiates a lower price of $475,000 due to current market conditions.  The former couple had owned the home for many years and refinanced several times, pulling money out of the home each time.  When the remaining spouse sells the home, there could be a considerable gain that was never recognized.

As a single person, he or she is now only entitled to $250,000 exclusion and would have to pay tax on the excess gain.  After paying the sales costs, outstanding mortgage balance and the taxes due on the gain, the remaining spouse would have net proceeds of $24,375 compared to the $100,000 that the former spouse received in the settlement.

The message in an example like this is to examine and consider the potential expenses that may be involved with converting the assets to cash after the divorce. Obviously, expert tax advice is valuable in making such decisions

Are you tired of paying your landlords second house payment?  Why rent when you can buy a home of your own.  Check out these Boone County Area Condos.

1814 Mimosa Trail, Florence, KY
$94,900

* FHA 30 Yr with 3.5% Down, 4.125% Rate 5.79% APR, P&I - $458.39, MI- $102.23, Tax - $88.08, Insurance - $35.83, TOTAL - $684.53
* 2 BR, 2 Full Baths
* Private Entry
* Community Pool, Workout Room, Lake, Walking Trails, Play Area
* Convenient Location, Erpenbeck Elementary, Plantation Pointe in Tara
* HOA Fee is $2221.00/Year

2292 Medlock Ln #206, Burlington, KY
$79,900

26 Rio Grande Circle #8, Florence, KY
$77,500

* FHA 30 Yr 3.5% Down, 4.255% Rate, 5.784% APR, P&I - $374.35, MI-$83.49, Tax - $72.00, Ins-$29.17, TOTAL- 559.01
* 2 BR, 2 Full Baths, 2nd Floor Condo
* Overlooks Lake
* Galley Kitchen w/Ceramic Tile Floors, Pantry & Counterbar
* Community Pool, Tennis Courts & Clubhouse
* Village at Southfork, Erpenbeck Elementary, Cooper High School, Super Convenient to Everything
* HOA Fee is $2124.00/Year

7369 Ridge Edge Ct. #D, Florence, KY
$125,000

* Conventional Loan 30 Yr 5% Down - 4.625% Rate, 5.192% APR, P&I-$610.55, MI-$66.30, Tax -$116.00, Ins - $46.92, TOTAL - $839.77
* 2 BR, 2 Full 2 Half Baths
* Finished Lower Level with Walkout
* 1 Car Garage
* Eat-In Kitchen, Formal Dining Room, Living Rm With Walkout to Lg Deck
* WBFP in Fmaily Room
* Mint Condition
* Summits in Oakbrook, Stephens Elementary, Close to Everything
* HOA Fee is $3078.00/Year

** This scenario is an estimate, and actual interest rate will depend on the specific characteristics of the loan transaction and credit profile up until the time of closing. The displayed APRs include total points and additional prepaid finance charges but do not include other closing costs. For an Adjustable Rate Mortgage (ARM), the Monthly Principal and Interest payment is based on the initial interest rate, which is subject to change after consummation, which may result in a different monthly payment amount. Rates available as of date of printing and subject to change without notice. ** Total Est. Initial Payment (PITI) includes principal and interest as well as tax, insurance, homeowner dues. Mortgage insurance has been included in the initial payment for loans with less than a 20% down payment or if the loan is FHA. For FHA loans, the Upfront Mortgage Insurance Premium amount has been included in the loan amount. HUFF Realty is an affiliate of HomeServices Lending. Please speak to your real estate agent for more information on this affiliation. All first mortgage products are provided by HomeServices Lending, LLC. HomeServices Lending, LLC may not be available in your area. Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. Licensed by the Department of Business Oversight under the California Residential Mortgage Lending Act. Georgia Residential Mortgage License Number: 32253. Kansas Licensed Mortgage Company, License Number: SL.0026321. 333 South 7th St. 27th Floor Minneapolis, MN 55402.

©2013 HomeServices Lending, LLC. All Rights Reserved. NMLSR ID 490683
Contact Colleen Parsons - Home Services Lending
Colleen.r.parsons@hslcincinnti.com - 513-647-5582

For more information feel free to contact Mike Parker/HUFF Realty.  Mike@MikeParker.com.  859-647-0700

When you’re buying or selling, the obvious source to get your real estate question answered is your agent but where do you go the rest of the time?  As a homeowner for many years to come, you’ll need reliable help and solid suggestions.

Our business goal is to have a select group of our friends and past customers who consider us their lifelong real estate professional. We want to earn that trusted position so they’ll enthusiastically refer their friends to us.  Our plan to achieve this is simply to help these people with all of their real estate needs not just when they buy or sell but for all the years in between.

Throughout the year, we offer reminders and suggestions by email and social media that benefit your homeowner experience.  When we find good articles to help you be a better homeowner, we’ll pass them along.  You’ll discover new ways to maintain your property, minimize expenses and manage debt and risk.

We want to be your “Go-To” person for everything to do with real estate.  If we don’t have the answer you need, we’ll point you in the right direction to find it.

We’re here for you and your friends…now and in the future.  Please let us know how we can help you.

10-28-13

I wanted to share some interesting numbers on the Northern Kentucky Residential Real Estate market.

When comparing where Northern Kentucky real estate market is today vs. where we were a year ago:

2012

4117 single family, condos, farms closed from the following dates 1/1/12 to 10/28/12.

Average sold price was $145,690 with 95 days on the market being the average.

2013

There are 2988 single family, condos and farms currently for sale.

• 765 homes under contract (Pending)
• 4803 sold from 1/1/13 to 10/28/13
• Average sold price $155,051
• Average days on the market -111

Within the same time frame, there were 686 MORE sales in 2013 than in 2012.

The average sales price in 2013 is $9,361 more than 2012, that is 6.1% increase.

In 2013, the average days on the market are up by 16 days over the 2012 market.

In the last 30 days there have been 372 homes (single family, condo, farm) that have gone under contract.

The Northern Kentucky market is moving.

If you have any real estate questions, feel free to contact Mike Parker – Northern Kentucky Real Estate Expert at 859-647-0700.  Feel free to email me at Mike@MikeParker.com.

*all information taken from the Northern Kentucky Multiple Lisitng Service.

Lenders, like any business, have to make a profit.  The cost of acquiring the funds, the operating costs to service and the expected profit margin are easily identified.  The variable in pricing is the type of mortgage and the credit worthiness of the borrower. 

A loan with a 3.5% down payment is riskier than a loan with 20% down payment.  If the lender has to take the property back to recover their expense, the margin is greater between what is owed and what the property is worth on an 80% mortgage. 

Credit scoring is a risk-based pricing method that allows a lender to be competitive in the market for the best loans from different borrower groups.  Individual lenders set their own levels for what they consider “A” credit which is reserved for the best rates.  If good credit is approximately 710 to 740, scores below that are considered higher risk and will have higher rates.

Risk must be assessed for both the borrower and the property that collateralizes the loan.  The borrower’s credit history and income stability are strongly evaluated by the lender but if a default should occur, the property must secure the loan to avoid a loss to the lender. 

The challenge for some buyers is they are unaware of what their credit score is and how it will affect the interest rate offered by the lender.  It is to the buyer’s advantage to be pre-approved by a reputable lender prior to starting the process of looking for a home.  In some cases, the lender can actually improve the borrower’s credit score to help them qualify for a lower interest rate.

Contact me for a recommendation of a trusted mortgage professional - Mike@MikeParker.com

One of the anxiety highpoints during the sale of a home is waiting for the buyer’s home inspection report.  Most sellers willingly disclose what they know about their home to any potential buyers.  The concern stems from the inspector finding something that they’re totally unaware of and that it will either cost them a lot of money to correct or the buyer will simply use it to void the contract.

If the inspection does reveal some unknown problem with the home, it’s probably as big a surprise to the buyer who is not as emotionally or financially invested as the seller.  It is human nature to fear what you don’t understand and when a report identifies defects, they may simply opt-out of the home.

The solution to the situation may be for the seller to have the home inspected prior to putting it on the market.  There is still a risk of becoming surprised by an unknown defect which at that point, would have to be disclosed to potential buyers or repaired by the seller.  The advantage is that it creates a baseline to compare discrepancies that may arise when a future buyer has the home inspected.

If the seller’s inspection report is made available during the marketing process, it could give buyers a sense of confidence about the home even though they may still choose to have the home checked by their own inspector.

The cost of the inspection, possibly $500, keeps some sellers from taking this initiative when selling their home.  In an effort to minimize their expenses, they forego getting valuable, disinterested 3rd party advice that could help sell their home.  On a $175,000 home, the fee for the inspection will probably be less than 3/10 of one percent of the sales price.

Another option to the seller to increase marketability of the property and bolster buyer confidence in the home would be to offer a home protection plan.  Generally, the seller doesn’t incur cost for this coverage until the home is sold and there may even be some coverage for the seller during the listing period.  The benefit to the buyer is avoiding unanticipated expenses for specific items that are covered during their first year of ownership.

Contact me for recommendations of home inspectors or home protection plans.

How will the government shutdown effect mortgages?  Watch this brief video for an explanation:

I was reading an article posted on the website Brightnest, and thought I would share it.  It gives homeowners some great spots to hide a spare housekey instead of using the obvious.  By using the obvious spots...under a rock by the front door, the front door mat etc. you could be opening yourself up to an easy robbery.  These tips could save yourself from the hassle of getting locked out or the even worse diaster of getting robbed.

1. Inside of a tree. Is there a tree on your property? Then you’ve got a perfect key hiding place. Simply cut out a square chunk from the bark that’s large enough to cover your key. Then trim a bit off the back of the “chunk” so there’s enough space to leave your key in the hollow. Replace the bark chunk, and enjoy your perfectly camouflaged key. Tip: Consider marking the location of the hollow with something like an old nail so that it isn’t too camouflaged and is easy to find.

2. Wedged between two bricks. We’re all for well-maintained brick, but one small chink in the mortar can be good news! Put the brick blemish to good use – if there’s enough space for a key, wedge it in there. Just make sure the key fits in a way so that it’s both inconspicuous and easy-to-remove. Spending an hour trying to dig a key out from between two bricks is almost as frustrating as paying a locksmith to let you back in.

3. Inside of a wind chime. Pop quiz: What do burglars hate? Noise! That means that if a potential robber is searching for a spare key, they’re probably not going to go digging inside your wind chimes. Tip: To make this method even more secure, replace the wind chimes’ “knocker” with an entire ring of keys (only one of which actually opens your door). Even if a burglar finds the keys, they’ll have to struggle with the ring of decoys.

4. On your car. There are a lot of magnetized lock boxes on the market meant to hide a spare key for your car, but we think these can be used for house keys, too. Think about it: When is a burglar most likely to try and break in? When you (and your car) aren’t at home. There are certainly some flaws to this method (no car, no keys), but it’s still worth considering.

5. With a neighbor. Okay, this one may not be super-spy clever, but it’s worth mentioning because it is super effective. Leaving a spare key with a trustworthy friend or neighbor means that access to your home is just a knock (or phone call) away. Plus, you’ll never have to worry about a burglar finding it on your property. Again, there are problems – if your neighbor isn’t home, you can’t get inside – but if you have a close friend next door, give this method some consideration.

Brightnest.  Author: Brain

Its finally summer and we've got a slew of things to do right here in our own backyard in Northern Kentucky.  And best of all, these won't break your bank.  Enjoy your summer!!!

Things To Do In Northern Kentucky

Taxpayers are allowed to decide each year whether to take the standard deduction or to itemize their deduction when filing their personal income tax returns.  Roughly, 75% of households with more than $75,000 income and most homeowners itemize their deductions.

The 2012 standard deduction, available to all taxpayers, regardless of whether they own a home, is $11,900 for married filing jointly and $5,950 for single taxpayers.

Let's look at an example of a homeowner couple with a $150,000 mortgage at 3.5%.  The standard deduction would give them $2,650 more than the total of their interest paid and property taxes of approximately $9,250.  If they were in the 28% tax bracket, the actual tax savings would be $742.00.

When mortgage rates were considerably higher, many people expected the interest and property taxes to easily exceed the standard deduction but with today's low rates, a comparison is certainly justified.

There are other things that could come into consideration like charitable contributions, medical expenses and casualty losses.  Tax professionals will compare available alternatives to find the one that will benefit the taxpayer most.

For more information, see www.IRS.gov and consult a tax advisor.