For years we all heard, "It's coming!" Technology is coming and it will forever change real estate as we know it. Guess what, Realtors, technology has BEEN here for years and it will continue changing the market as we know it. I, for one, think that's great.
The market is changing, we all know that. Baby Boomers are being replaced by Generation X and Y-ers as the new consumers. So why is it that all the new tech "tips and tricks" geared for Realtors have been focused on Baby Boomer agents? This industry has long been dominated by a slightly older demographic. To hear that an agent has 20+ years of experience is not an uncommon thing. However, with the changing landscape of both the real estate market and the American consumer, isn't it time for an industry face lift?
Again, it's happening already. There will always be a place of the 20+ year agent. They, obviously, have a ton of experience and an be valuable resources. However, I personally know that MY clients are looking for someone a little younger, a little more hip, and much, much more technology savvy. Someone who not only does business mobiley via email and text, but can't think of another way you would do business. In fact, the term "Internet savvy" or "tech savvy" is really just a moniker for Baby Boomers who "get it." What self-respecting Gen Y'er would ever utter the lame words, "I'm extremely Internet savvy!" Of course, they're Internet savvy. It's all they've ever known. Gen X-ers, though we loathe the title...and, honestly, all titles, were the first to truly adopt the Internet and other new media devices. We grew up with video game consoles, portable music players and the earlier versions of the cell phone. The brand new options, whether an iPod, iPhone, tablet PC, or PlayStation Portable (PSP), are really just improvements on those humble beginnings. To upgrade from a walkman to a discman to an iPod isn't just logical, it's seamless. There is no learning curve.
Gen Y is beyond that. They never knew a life without all our current toys. There is no adaptation or adoption time, a new media device comes out and Gen Y just has to have it...and intuitively understands it.
My point is, technology has already changed the face of the real estate consumer. Isn't it time our industry recognizes this and catches up? Nothing's worse than an industry that lags behind it's target audience.
In the meantime, I guess I'll just have to sit back and reap the benefits of not only understanding, but BELONGING to the "new generation".
So next time you send me a message needing to know the square footage of that home you drove by, don't be surprised when 5 minutes later I text you the answer.
Showing posts with label realtor. Show all posts
Showing posts with label realtor. Show all posts
Friday, March 7, 2008
Friday, July 13, 2007
Creating Wealth via Home Ownership
Vince’s Finance 101-Creating Wealth via Home Ownership (courtesy of Vince Kingston, Ridge Mortgage Services)
At least for homeowners, the reward is less taxes. As mentioned in previous newsletters, Uncle Sam provides generous tax subsidies to homeowners by way of their mortgage interest deduction. But wait, it gets even better. The IRS literally fawns over homeowners by providing the largest single capital gain exemption available on the sale of their primary residence. This is called the Primary Residence Exclusion.
What does this mean to you, the homeowner? The primary residence exclusion allows you to sell your home and receive all of your gain on the home 100% tax free up to certain limits and after a specific time of ownership. For example, if you sell your $400K home after owning it for more than three years and you only owe $300K, then you will have a $100K gain after you pay off your existing mortgage. Per IRS guidelines, as long as the property qualifies, you will receive this $100K tax free! That is you will pay zero capital gains tax, zero income tax, and have no additional tax liability on this gain!
Consider that it could take you ten years or more to save $100K in your typical retirement fund and then you must pay ordinary income taxes when you withdraw those same funds years later.
What are the requirements to qualify for this most significant exclusion? The capital gain exemption on the sale of your home is limited to $250K for individuals and $500K for married couples. There are no rollover or reinvestment requirements, no minimum age requirements, and the exclusion can be used as many times as you like, but not more frequently than once in every two years. For the property to qualify as your primary residence, you must have owned the home for at least two years of the last five years and lived in the home as your primary residence for at least two years of the last five years.
Many ambitious homeowners have used this exclusion as their primary wealth creation strategy, particularly if you live in an appreciating area such as the west coast. If you sell your home every two years and realize a gain, you could continue to do this every two years indefinitely.
Here are some conservative numbers to consider: Your $350K home appreciates at a very reasonable 5% per year meaning after two years it is worth approximately $387K. Subtract out a 5% Realtor commission to sell the property, and you are left with an $18K tax free gain every two years. Do this every year two years for ten years and you have an additional $90K. Looking at this another way, increase your income by $9,000 per year every year for ten years by simply maximizing your primary residence exclusion.
You are always welcome to contact me to determine how to best incorporate your mortgage financing into your most advantageous financial strategy.
*The content of this newsletter is not to be construed as tax advice and will vary based on your unique circumstance, please consult your licensed tax preparer.
You can contact Jesse Knight, Principal Broker of the Realty Network/GMAC Realty at 971-219-4939 or jknight@therealtynetwork.net.
At least for homeowners, the reward is less taxes. As mentioned in previous newsletters, Uncle Sam provides generous tax subsidies to homeowners by way of their mortgage interest deduction. But wait, it gets even better. The IRS literally fawns over homeowners by providing the largest single capital gain exemption available on the sale of their primary residence. This is called the Primary Residence Exclusion.
What does this mean to you, the homeowner? The primary residence exclusion allows you to sell your home and receive all of your gain on the home 100% tax free up to certain limits and after a specific time of ownership. For example, if you sell your $400K home after owning it for more than three years and you only owe $300K, then you will have a $100K gain after you pay off your existing mortgage. Per IRS guidelines, as long as the property qualifies, you will receive this $100K tax free! That is you will pay zero capital gains tax, zero income tax, and have no additional tax liability on this gain!
Consider that it could take you ten years or more to save $100K in your typical retirement fund and then you must pay ordinary income taxes when you withdraw those same funds years later.
What are the requirements to qualify for this most significant exclusion? The capital gain exemption on the sale of your home is limited to $250K for individuals and $500K for married couples. There are no rollover or reinvestment requirements, no minimum age requirements, and the exclusion can be used as many times as you like, but not more frequently than once in every two years. For the property to qualify as your primary residence, you must have owned the home for at least two years of the last five years and lived in the home as your primary residence for at least two years of the last five years.
Many ambitious homeowners have used this exclusion as their primary wealth creation strategy, particularly if you live in an appreciating area such as the west coast. If you sell your home every two years and realize a gain, you could continue to do this every two years indefinitely.
Here are some conservative numbers to consider: Your $350K home appreciates at a very reasonable 5% per year meaning after two years it is worth approximately $387K. Subtract out a 5% Realtor commission to sell the property, and you are left with an $18K tax free gain every two years. Do this every year two years for ten years and you have an additional $90K. Looking at this another way, increase your income by $9,000 per year every year for ten years by simply maximizing your primary residence exclusion.
You are always welcome to contact me to determine how to best incorporate your mortgage financing into your most advantageous financial strategy.
*The content of this newsletter is not to be construed as tax advice and will vary based on your unique circumstance, please consult your licensed tax preparer.
You can contact Jesse Knight, Principal Broker of the Realty Network/GMAC Realty at 971-219-4939 or jknight@therealtynetwork.net.
Thursday, June 28, 2007
What's Really Going On in the Portland Market?
The Market Report – What’s Really Happening in the Portland Metro Housing Market?
The May 2007 Market Action report, courtesy of the RMLS, recently came out with some interesting facts and tidbits. As most of you have heard, suspected or simply guessed, the market has cooled. I know, I know, ground breaking stuff, right? We all know the market has cooled, but it had to. The Portland market ran so hot for so long it simply had to slow down and catch its breath. I, personally, don’t think this is such a bad thing. While home owners clearly enjoyed the nearly 20% appreciation rates we saw for the past couple years, it was obvious that those numbers could not sustain.
However, while much of the nation is suffering through a depressed real estate market, the Portland market continues to chug along with double digit appreciation rates. Granted, the 20% days are gone…for now, but most savvy investors are thrilled to get a 10% return on their borrowed money. Where else are you going to get somebody, much less a bank, to lend you a few hundred thousand dollars to make a 10% return on investment? I guarantee nobody’s lining up to lend you money to play the stocks with.
In any case, the following are the facts and my supporting opinions. The number of new listings is way up. That, coupled with the fact that it’s taking longer for properties to sell, means that our inventory is also up. At the current rate of sale, we would run out of available listings in 4.5 months, assuming no new listings went on the market in that time. Compare that to the 2.3 months and 1.6 months of inventory Portland Metro had in the prior two years, and it is easy to deduce that the market has turned. While 2005 and much of 2006 were true sellers’ markets, 2007 has fluctuated in and out of being a buyers’ market and a balanced market. If I was to simply look at inventory, I would tell you we’re enjoying a balanced market. However, when I take into account the fact that average days on market, or how long it takes for a listing to sell, has gone way up and the number of new listings, I do believe we’re in a classic buyers’ market. Now this isn’t as strong of a buyers’ market as it was a sellers’ market two years ago, but it is, in my opinion, a very good time to be a buyer.
Look at the facts, inventory is up, interest rates are still very low (though they have risen), days on market is up and add that to the number of stale listings (properties that have been on the market for a long time) and an uneasy feeling sweeping through the minds of sellers, and it all equates to a great time to be a buyer. I know I’m working with some very happy buyers.
Of course, nothing exists in a vacuum, so there are sections of the market, be it location or price point, that are much more competitive. As you know, I work with quite a few first time home buyers who generally want to live in close-in SE/NE Portland and, for the most part, are in the 250K to 300K price range. Well, it’s still pretty competitive within those parameters. I’ve actually seen multiple offer situations at times. Having said that, my clients have all found wonderful and affordable homes within their price ranges and in their locations of choice. So a good Realtor will still secure you an excellent property.
In many cases, we’re finding buyers’ incentives, such as “free” home warranties. So if you’ve been scared off by The Oregonian’s “the sky is falling attitude”, don’t be. Portland Metro, including the suburbs, is doing just fine.
With everything going on in the lending/finance industry right now, please find a good mortgage broker. I work with an amazing one in Vince Kingston, but I do have other referrals if you need them. Please stay away from any out-of-state or online lenders that you don’t have a personal relationship with. The decision and purchase is just too important to be handled by a stranger that you can’t physically meet.
APPRECIATION RATES:
Portland Metro (as a whole) – 10.1%
N Portland – 11.5%
NE Portland – 9.4%
SE Portland – 11.5%
Lake Oswego/West Linn - 13.3%
Gresham – 16.15
Milwaukie/Clackamas – 11.2%
Home Buying 101 – Demystifying the Home Buying Process is still going strong. Vince and I have been doing it every other Monday evening for just over two years. We’ve probably met a couple hundred people and have helped many dozen people realize their home ownership dreams. If you know anyone who might benefit from the informal workshop, please have them contact me. Also, we’re branching out and heading for the big time. After a long conversation with a corporate HR manager, who will go unnamed, we were convinced that Buyer 101 would be a great value added service for HR managers to provide their employees. So we’re moving up in the world and offering to hold the class, for free, for small and mid-sized companies all over town. We’re happy to hold them at the lunch hour or we’ll work around any schedule you need. If any of you would be willing to introduce me, via email, phone, however, to your HR manager, president, company owner, operations manager, etc., I would greatly appreciate it. The numbers show that employees who own homes are much more likely to stay with their current company and work their way up the ladder. We see our services as something a company can provide their employees…at no cost. So please let me know if you can help.
Also, outside of the home buying workshop, I survive 100% on referrals. I believe in giving my all to every client and I hope in so doing, that they will, in turn, refer me to their friends, family and colleagues. If you can give my name and info to three people, I would forever be in your debt. I am not a part-time Realtor; this is what I do for a living. I take it very seriously and have put a lot of time into learning and growing. As many of you know, I am now a principal broker and I hire, train and mentor new agents. I’m currently working on getting my “green” designation, as well as my “technology expert” designation. I continue to grow as a Realtor in the hopes that I can better serve you and your referrals in the future.
Thank you in advance.
Market Action report: http://www.rmlsweb.com/temp%2Fdocuments%2F1500-1699%20Market%20Action%20and%20Statistics%20Menu%2F1505%20Market%20Action%20-%20May%202007.pdf
Cheers!
Jesse
All-Blogs.net directory
The May 2007 Market Action report, courtesy of the RMLS, recently came out with some interesting facts and tidbits. As most of you have heard, suspected or simply guessed, the market has cooled. I know, I know, ground breaking stuff, right? We all know the market has cooled, but it had to. The Portland market ran so hot for so long it simply had to slow down and catch its breath. I, personally, don’t think this is such a bad thing. While home owners clearly enjoyed the nearly 20% appreciation rates we saw for the past couple years, it was obvious that those numbers could not sustain.
However, while much of the nation is suffering through a depressed real estate market, the Portland market continues to chug along with double digit appreciation rates. Granted, the 20% days are gone…for now, but most savvy investors are thrilled to get a 10% return on their borrowed money. Where else are you going to get somebody, much less a bank, to lend you a few hundred thousand dollars to make a 10% return on investment? I guarantee nobody’s lining up to lend you money to play the stocks with.
In any case, the following are the facts and my supporting opinions. The number of new listings is way up. That, coupled with the fact that it’s taking longer for properties to sell, means that our inventory is also up. At the current rate of sale, we would run out of available listings in 4.5 months, assuming no new listings went on the market in that time. Compare that to the 2.3 months and 1.6 months of inventory Portland Metro had in the prior two years, and it is easy to deduce that the market has turned. While 2005 and much of 2006 were true sellers’ markets, 2007 has fluctuated in and out of being a buyers’ market and a balanced market. If I was to simply look at inventory, I would tell you we’re enjoying a balanced market. However, when I take into account the fact that average days on market, or how long it takes for a listing to sell, has gone way up and the number of new listings, I do believe we’re in a classic buyers’ market. Now this isn’t as strong of a buyers’ market as it was a sellers’ market two years ago, but it is, in my opinion, a very good time to be a buyer.
Look at the facts, inventory is up, interest rates are still very low (though they have risen), days on market is up and add that to the number of stale listings (properties that have been on the market for a long time) and an uneasy feeling sweeping through the minds of sellers, and it all equates to a great time to be a buyer. I know I’m working with some very happy buyers.
Of course, nothing exists in a vacuum, so there are sections of the market, be it location or price point, that are much more competitive. As you know, I work with quite a few first time home buyers who generally want to live in close-in SE/NE Portland and, for the most part, are in the 250K to 300K price range. Well, it’s still pretty competitive within those parameters. I’ve actually seen multiple offer situations at times. Having said that, my clients have all found wonderful and affordable homes within their price ranges and in their locations of choice. So a good Realtor will still secure you an excellent property.
In many cases, we’re finding buyers’ incentives, such as “free” home warranties. So if you’ve been scared off by The Oregonian’s “the sky is falling attitude”, don’t be. Portland Metro, including the suburbs, is doing just fine.
With everything going on in the lending/finance industry right now, please find a good mortgage broker. I work with an amazing one in Vince Kingston, but I do have other referrals if you need them. Please stay away from any out-of-state or online lenders that you don’t have a personal relationship with. The decision and purchase is just too important to be handled by a stranger that you can’t physically meet.
APPRECIATION RATES:
Portland Metro (as a whole) – 10.1%
N Portland – 11.5%
NE Portland – 9.4%
SE Portland – 11.5%
Lake Oswego/West Linn - 13.3%
Gresham – 16.15
Milwaukie/Clackamas – 11.2%
Home Buying 101 – Demystifying the Home Buying Process is still going strong. Vince and I have been doing it every other Monday evening for just over two years. We’ve probably met a couple hundred people and have helped many dozen people realize their home ownership dreams. If you know anyone who might benefit from the informal workshop, please have them contact me. Also, we’re branching out and heading for the big time. After a long conversation with a corporate HR manager, who will go unnamed, we were convinced that Buyer 101 would be a great value added service for HR managers to provide their employees. So we’re moving up in the world and offering to hold the class, for free, for small and mid-sized companies all over town. We’re happy to hold them at the lunch hour or we’ll work around any schedule you need. If any of you would be willing to introduce me, via email, phone, however, to your HR manager, president, company owner, operations manager, etc., I would greatly appreciate it. The numbers show that employees who own homes are much more likely to stay with their current company and work their way up the ladder. We see our services as something a company can provide their employees…at no cost. So please let me know if you can help.
Also, outside of the home buying workshop, I survive 100% on referrals. I believe in giving my all to every client and I hope in so doing, that they will, in turn, refer me to their friends, family and colleagues. If you can give my name and info to three people, I would forever be in your debt. I am not a part-time Realtor; this is what I do for a living. I take it very seriously and have put a lot of time into learning and growing. As many of you know, I am now a principal broker and I hire, train and mentor new agents. I’m currently working on getting my “green” designation, as well as my “technology expert” designation. I continue to grow as a Realtor in the hopes that I can better serve you and your referrals in the future.
Thank you in advance.
Market Action report: http://www.rmlsweb.com/temp%2Fdocuments%2F1500-1699%20Market%20Action%20and%20Statistics%20Menu%2F1505%20Market%20Action%20-%20May%202007.pdf
Cheers!
Jesse
All-Blogs.net directory
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