Smart Ways To Spend Your Tax Refund

Smart Ways To Spend Your Tax Refund

Three out of four taxpayers are expected to get a refund this year, and the average refund is about $3,000.  Is this money coming your way? Here are some smart ways to put it to use:

Invest In Your Career

Feel like you’re not getting anywhere in your current position? No new opportunities or additional responsibilities?  Haven’t had a raise in years? It’s a good time to freshen up your skill set, attend networking conferences, or take on a career counselor, for example, and look for new opportunities elsewhere because they’re starting to emerge.  In fact, in a sign that the labor market is slowly improving, workers are no longer doing whatever they can – and then some — to keep jobs they don’t necessarily even like.  They’re now quitting their jobs — at a rate we haven’t seen in over three years.

Put A Dent In Your Debt

Did you know that this year’s class will graduate with about $25,000 in student loan debt, on average? Or that the average household has about $14,000 in credit card debt? This is debt that could stick around for decades unless you make an effort to attack it!  And, bonus: when you pay down this debt, you are essentially earning a guaranteed return that is likely much higher than any available investment. Pay off a credit card balance with an 18% APR, for example, and it’s like earning 18% on your investments!

Build Your College Savings

The cost of college tuition is up 300% since 1990 so the sooner you start saving, the better.  Consider opening a 529 account (minimum lump sum investment: generally just $250).  It’s an easy way to invest for in higher education.  Your money grows tax-free and withdrawals used to pay for college are tax-free, too. You could even get a state income-tax deduction for your contribution as well. To learn more about these plans, go to www.savingforcollege.com.

Invest In Your Home

How about making your home more energy efficient (by investing in new Energy Star appliances, sealing the leaks or buying new energy efficient windows, doors, etc.?) or using the refund money to pay for small home improvements? This may be something to think about if you’re looking to sell your home, and a little paint, updated light fixtures, or new shrubs out front, for example, can make a big impact.

Make Extra Mortgage Payments

One of the primary benefits to making extra mortgage payments is seeing the principal visibly reduced every month. Consider this: If you owe $200,000 @ 4.25% interest, then your monthly payment would be around $1,000. Paying an extra $200/month would save you about $50,000 in interest and the loan would be paid off almost 10 years earlier. Compelling, eh?

Vera Gibbons is a financial journalist based in New York City and is a contributor to Zillow Blog. Connect with her athttp://veragibbons.com/.

The American Dream Of Homeownership IS Stronger Than Ever!

The American Dream Of Homeownership IS Stronger Than Ever (Video)

May 28, 2012

For decades it was assumed that every American’s goal was to own their own home. Many believe (myself included) that the core desire to own a home will never simply go away. Is The American Dream still to own a home?

It's in our DNA.

With that said, I am sure we will all agree viewing a home as an ‘investment’ that will always appreciate HAS changed. Do you still consider your home and investment…do you SELL homes based on their hypothetical future appreciation?

Watch this video and share your comments. Please be patient for the first 30 seconds! Unfortunately the initial 30 second preview commercial is blacked out. The rest is great and very informative. Thank you! 

BREAKING NEWS: Housing Recovery Here?

Breaking News: New Foreclosures Fall, Short Sales Closing Faster…Housing Recovery Here?

May 17, 2012 ·

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First the good (great?) news:  New foreclosure report (video) is equally good and bad. 

* The real estate market has clearly hit bottom and now is showing some signs of life. Inventories of homes across the US are decreasing.

* New mortgage delinquencies saw the largest drop ever, finally back to the historical long-term average of around 3.1%.

* In most markets home sellers are receiving multiple offers.

And Now…the bad news:

* Loans in the foreclosure process are rising, now 4.9%

* FHA loans, 12% are delinquent.

* There are still millions (and millions) of underwater mortgages.

Bottom line: the housing markets have finally hit bottom. Expect the road back to full recovery to take years.

!* FHA loans are climbing up 83%

Moms Share Their Advice For Real Estate

Stand up straight! Tuck in your shirt! Mind your manners!

If there’s one thing most mothers carry in spades, it’s advice. Whether they’re exhorting us to eat our vegetables, or send thank you notes, moms have a tip for nearly every situation — even when it comes to buying a home.

In honor of Mother’s Day, we asked moms to share on the advice they gave their children when they were buying a home. Here are the few best tidbits.

Do any of them sound like something your mother would say?

Have Financial Sense

The most common bit of advice moms shared centered on their children’s financial well-being”

“Don’t confuse the highest quote a lender gives for you with how much you should spend on a house,” said Kristie Caron-White. “If you are pre-approved for a $150,000 house and you don’t have any other money saved, don’t look at $150,000 houses.”

Another tip?

“Buy as if you have one income,” shared Melissa Nowak.

Overall, as summed up by Lisa Myers Gammill: “Buy what you can afford now… being house poor is not worth it.”

Do Your Research

From choosing a real estate agent to picking out the location for your dream home, many moms want first-time home buyers to do all the necessary legwork.

“Do your own research as to what the comps are in the market and really know the demographics of your neighborhood,” said Kameron Lavinder.

Dixie L. Henderson’s advice was similar:
            “Do your homework,” she said. “This is the biggest investment in your future.  Pick a           home which requires little immediate repair and can be resold, based on location, good school districts, walkability and security.”

Sandy Brown gives the best sound advice:

“You can start your research online, but choose a local Realtor that has experience, knowledge of the area, and is associated with a reputable real estate agency. It does not cost anything to use a Realtor to purchase a home!”

Don’t Forget The Home Inspection

The perfect location and perfect home price won’t make up for a crumbling foundation or flooding basement.

“Write a contingency into the contract pending ‘your approval’ of the home inspection,” said Kathryn Hoffmann. “Then hire a CERTIFIED home inspector with experience and “errors and omissions” insurance, even for brand new homes.”

“Inspection, inspection, inspection!” reiterated Jennifer Brown.

So far, dozens have offered similar motherly advice. The comments show that some of the savviest minds reside in those we already knew we could count on!

(Thanks, Mom! Now, can we talk about a down payment?  :)

Why Your First Offer Is Always Your Best Offer

Your house has been on the market for quite some time. You've finally received an offer .... so exciting!! Real estate agents around the world generally go by the same mantra when discussing this first offer that a seller receives on their home:

“The first offer is always your best offer.”

Of course, this isn’t true in every situation, but there are reasons why agents believe this, and why they often suggest that sellers either accept the first offer or at least give it serious consideration.

Get In The Buyer’s Head

Think long and hard over that first offer.

To understand why the first offer is usually the one you should accept, consider the buyer and the journey he or she’s on.

Buyers in the real estate market usually start by dipping their feet into the water. This may be before they even engage a real estate agent. They generally go to a few open houses, check out prices online, and start to do their homework. They may even make first contact with an agent to assess what the agent thinks about the state of the local market.

From there, buyers begin to get more serious. They may start going on private, second or third showings with their agent. They really start to get engaged in the process. They become “the real dealer” — a buyer who is completely in the game, approved for a mortgage, and actively engaged with their mortgage lender or broker. Maybe they’ve even written an offer or two. They’ve narrowed down their search parameters, spent months learning the market, pricing and checking the comparables. (To learn more about the three types of homebuyers, read “Seller’s Guide to Understanding Today’s Buyer.”)

Real dealers are often the ones who write the first offer a seller receives on a property. And that’s why their offers should be taken seriously.

Real dealers will likely get an email notification about your listing within hours of it going online. Or, since they are so engaged with their agent at this point, the agent may spot it first and send them a text or email.

This buyer will want to get in and see the property ASAP. Since they’re so familiar with the market, they’ll be able to tell once they step foot inside if it will work for them, if it’s priced right, if it shows well, and if it’s in line with present or past comparable sales. If the property meets their criteria, the real dealer, armed with all their knowledge and motivation, will make an offer.

The Real Dealer

Their offer may not come in within days of a property going on the market. But it will come from an informed buyer who is knowledgeable of the market. If a home is priced too high and a month or two goes by without an offer, it will be the real deal buyer who has been watching the listing and waiting to see how the market responds. If they note that there aren’t any offers on it and there is no activity after some time, the real dealer will come in with a low offer, which actually may be a good offer, on the seller’s home.

While you may see it as an insulting “low ball” offer coming out of left field, you should still look closely at this offer. Who is the buyer? How long have they been looking? Have they written other offers nearby? Are they working with a good local agent? Does the offer come with a pre-approval letter? Is this offer actually a number that is close to the number your real estate agent initially suggested?

As hard as it may seem to contemplate an offer much lower than your asking price, serious sellers should look at all the signs leading up to it and consider if this is the offer to accept. Trust your agent. And even better, trust the phrase, “The first offer is always your best offer.”

Homeownership Rates Continue To Drop Despite Perfect Buyers Market

Homeownership Rates Continue To Drop Despite Perfect Buyers MarketShare on twitter

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Its not surprising that the trend towards renter-ship has picked up pace.Homeownership rates continue to drop from the record 2004 levels as millions of Americans recover from the popping of the real estate bubble.

Remember, thus far close to 4 million owners have lost their homes to foreclosure, 6 million are currently in default and its predicted that 11,000,000 are currently underwater in their homes. Sobering statistics that point to a long road to a true housing recovery.