Mary Baggett's Real Estate Blog

Helpful Tax Tips for Home Sellers

2011-09-24T09:39:00.000-07:00

Helpful Tax Tips for Home Sellers

September 23rd, 2011 by Leslie Ortega

Believe it or not, homes are still being sold and many of them are resulting in a gain for the home seller. For people fortunate enough to earn a profit when selling their home it’s essential you know the guidelines on deducting all or part of the gain from your annual income. The IRS.gov website offers helpful tips for people who have recently sold their home or are about to sell.

It’s important to consider these tips before or during the sale of your home. There is plenty of time before the official tax season begins, so do yourself a big favor and start getting the necessary information and preparing now.

Here are a few of the tips from the IRS:

In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.
If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).
You cannot deduct a loss from the sale of your main home.
If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.
If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year’s tax return.

To see additional tax tips for sellers click here.

Source: Ten Tax Tips for Individuals Selling Their Home

Photo Source: IRS Building

As always, for ALL of your Real Estate needs feel free contact me anytime!

“I love what I do…So you can love what I do for YOU!”

Mary Baggett, CRS, e-Pro, SFR
Realtor, Montgomery Realty, Inc
(850) 524-2777 cell
(850) 514-3030 fax
Mary@RealEstateInTally.com
http://www.realestateintally.com/

28 Fun and Interesting Things about Tallahassee and Havana Florida - Thing 1

2011-09-05T13:00:00.000-07:00

This Realtor LOVES a good hamburger..... So, my favorite place to eat a hamburger is the littlest whole-in-the-wall place in Tallahassee (well, I think it is). Birds Aphrodisiac Oyster Shack is located at 325 North Bronough Street and if you haven't tried it yet, you are missing out!!!!! Once you have tried it, let me know what you think or let me know which place is your favorite....

As always, for ALL of your Real Estate needs feel free contact me anytime!

“I love what I do…So you can love what I do for YOU!”

Mary Baggett, CRS, e-Pro, SFR
Realtor, Montgomery Realty, Inc
(850) 524-2777 cell
(850) 514-3030 fax
Mary@RealEstateInTally.com
http://www.realestateintally.com/

Tallahassee lands on the top 10 BEST Real Estate Market at #5! An Inman News Special Report

2011-06-22T08:31:00.000-07:00

The Tallahassee metro area saw the biggest year-over-year drop in median sales price among the 10 markets in fourth-quarter 2010: down 28 percent to $144,000. That drop resulted in a leap in affordability in the market: while 56.8 percent of homes were affordable to households making the median income in fourth-quarter 2009, 84.7 percent were affordable a year later.

Tallahassee, Fla.

The Tallahassee metro area saw the biggest year-over-year drop in median sales price among the 10 markets in fourth-quarter 2010: down 28 percent to $144,000. That drop resulted in a leap in affordability in the market: while 56.8 percent of homes were affordable to households making the median income in fourth-quarter 2009, 84.7 percent were affordable a year later.
Some 38 percent of all real estate sales in the area so far this year have been all-cash purchases, according to Joe Manausa, broker-owner of Century 21 First Realty in Tallahassee.
"Currently, homes are selling below the cost it would take to replace them, and in a market with a growing population like Tallahassee, this will not last forever," Manausa said.
The Tallahassee area's population grew 14.7 percent in the past decade and is projected to grow 13.1 percent in the next 10 years.
"It is a natural 'buy' cycle for buy-and-hold real estate investors, and they currently have little competition due to the weakness in the mortgage markets. Cash buyers are kings right now, and they have the ability to buy homes at a fraction of what they will sell for when the population growth catches up to the oversupply that was created during the boom of the housing market," Manausa said.
"Investors only have something to worry about if they are 'flippers.' We still have a few more years at the bottom of our market, and flippers could well make some mistakes."
Tallahassee-area homes are expected to appreciate 42.8 percent in the next 10 years, with an estimated 182.9 percent ROI, according to SmartZip. As of March 31, Tallahassee had the highest share of active investor loans among the 10 markets: 8 percent, compared with 5.5 percent nationally, according to data from LPS.
As the state's capital, Tallahassee's biggest employer by far is the state of Florida, followed by Florida State University, Leon County Schools and Tallahassee Memorial Healthcare. The area had 7.8 percent unemployment in March and has 33.4 percent projected job growth -- the second-highest expected growth among the 10 markets. (Gainesville, the other Florida market on this list, is expected to see the greatest job gains in the next 10 years.)
That job environment and population growth provide investors with a level of safety not found in many other markets, Manausa said.
"Business cycles come and go, and many areas rely strongly on a singular industry to provide the jobs that attract and retain the population core," he said.
"Tallahassee has a strong mix of state and federal government and three large schools of higher education, and thus is the infrastructure of one the faster-growing states in the U.S."
As with other markets on this list, foreclosures accounted for a significant, but not overwhelming, share of sales in the area. Foreclosures made up 23.7 percent of overall sales in fourth-quarter 2010, a 21.8 percent year-over-year rise in market share. The average foreclosure discount compared to a nondistressed property was 33.8 percent.
RealtyTrac defines a foreclosure sale as the sale of a property that occurs while the property is actively in some stage of foreclosure, including when it has received a default notice, been scheduled for public auction, or been repossessed by the lender.
The term only includes sales to third-party buyers or investors not involved in the foreclosure process and does not include property transfers from the owner in default to the foreclosing bank or lender, RealtyTrac said.
The area also had the second-highest share of loans either delinquent or in the foreclosure process (13.5 percent) among the 10 markets, compared with 12 percent nationally.
In March, the Tallahassee metro area had the highest median age of inventory among the 10 markets, at 142 days. Manausa attributed the relatively long time on market at least partially to oversupply.
"Tallahassee has over 12 months of supply, and our surrounding counties have as much as 30 months of supply of homes. This has an impact on market time when a seller is not realistic about selling price and waits months (or) years to reduce the price to a salable amount," he said.
"Motivated sellers are able to sell their homes in weeks if they are in a price range with liquidity — anything under $400,000."

Tallahassee, Fla.	Metro	U.S.
Population (2010)	367,413	308,745,538
% ch. population (2000-2010)	14.7%	9.7%
10-year projected population growth %	13.1%
Unemployment rate (March 2011)	7.8%	9.2%
% pt. chg. in unemployment rate (March 2011 vs. March 2010)	-0.4%	-1%
10-year projected job growth %	33.4%
Median sales price (Q4 '10)	$144,000	$175,000
% ch. median sales price (Q4 '10 vs. Q4 '09)	-28%	-2.8%
Median list price (March 2011)	$165,000	$189,900
% ch. median list price (March 2011 vs. March 2010)	-2.4%	-4.8%
Projected 10-year appreciation %	42.8%
% homes affordable at median income (Q4 '10)	84.7%	73.9%
SmartZip Affordability Index	130
Total cost of ownership/rent ratio	1.09
Share of foreclosure sales (Q4 2010)	23.7%	26.5%
% ch. share of foreclosure sales (Q4 2010 vs. Q4 2009)	21.8%	4.1%
Average foreclosure discount (Q4 2010)	33.8%	28.2%
% active loans noncurrent (as of March 31, 2011)	13.5%	12%
% active investor loans (as of March 31, 2011)	8%	5.5%
SmartZip InvestorScore	53
10-year return on investment (ROI) %	182.9%
Median age of inventory on Realtor.com in days (March 2011)	142	108
Search ranking on Realtor.com (March 2011)	115
Walk Score	43

Click on the link below for the full report from Inman News
Inman Reports the Top 10 Markets for Real Estate

Tallahassee FAMU Students on America's Got Talent

2011-06-22T07:53:00.000-07:00

Take a look at some of our local FAMU students representing at America's Got Talent! Great
job guys. We wish you luck on your journey!!
http://www.youtube.com/watch?v=jofFAGw3SgQ

Tallahassee and Havana Through Your Eyes Contest

2011-05-12T12:26:00.000-07:00

Tallahassee and

Havana Through Your Eyes Contest

One of my most favorite hobbies is taking

pictures. So, I thought, why not hold a contest to find the best picture of Tallahassee or Havana taken by you, my friends, family and my Real Estate family…

What will you win you ask? I am giving away a $25 gift card to a local Restaurant of your choice!!!! All for just

taking a picture!

What To Do:

1. Take a picture of scenery in either Tallahassee Fl or

Havana Fl

2. Go to my Facebook Page (Mary Baggett, Realtor)and click the “Like” button

https://www.facebook.com/pages/Mary-Baggett-Realtor/112402855439977

3. “Share” your picture

Once my page hits 100 “Likes” I will make my choice of the best picture. So, re-post to your Facebook page and let your friends know about my contest so that the winner can be announced soon!!!

Thank You and Have Fun!!!!!

For all of your Real Estate Needs http://www.realestateintally.com/

Affordable Or Free Creative Teacher Gifts

2011-05-12T10:58:00.000-07:00

AFFORDABLE OR FREE CREATIVE TEACHER GIFTS

May 12, 2011 By Frugal Coupon Living Leave a Comment

Well with April, we are approaching the end of the year. I wanted to share with you theCreative and Affordable Teach Gifts that I wrote for Baby Cheapskate.

Labels: Teachers will have to pack up and move many things. To easily identify their belonging, these FREE 140 ct of labels is great. Shipping adds around $3.

Postcards: Teachers often have to send home notes. Having a generic note, perhaps with their first name on the front, their classroom grade, school mascot/name, etc makes a nice personalized card. Pick up 100 for FREE! Shipping adds around $5.

Business Cards: Business Cards are great for teachers to share contact information with one another or with parents. Pick up 250 for FREE! Shipping adds around $5.

Flip Books: Make them a small flip book of the year.Pick up a FREE Flip Book with around $4 S&H. (get one HERE too!)

Gift Cards: Use services like Groupon, Living Social, or Eversave to find deals for your area. If you get credit to a restaurant/spa use that certificate price to go buy a gift card.

Daily Deal Sites: I find that Rue La La, One Kings Lane, Jasmere, and Gilt are great daily deal sites. Check back each day to see what new items they have as unique gifts. Shopping now ensures arrival in time for the end of the year. Plus if you have the $20 credit in your account (on Rue La La) you have a bonus savings.

Don’t forget the creative idea for using FREE prints to make your teachers a great card!

Thank you Frugal Coupon Living for these wonderful ideas!!!!

For all of your Real Estate Needs http://www.realestateintally.com/

FREE DAY AT BOTANICAL GARDENS

2011-05-04T13:48:00.000-07:00

FREE DAY AT BOTANICAL GARDENS

BETTER HOMES AND GARDENS wants you to enjoy an afternoon at your nearest botanical garden so they have cut a deal with many of the gardens across the country! This Friday only, May 6th, enjoy a day at a participating botanical garden near you. Just sign up ahead of time for the FREE admission pass which enables you and 9 friends to get in free! That’s right, your pass is good for 10 people!

Perhaps you could get your mother out for an early Mother’s Day in the park!

Thanks, FrugalCouponLiving

http://www.realestateintally.com/

The Home Ownership Dream Is Still Alive!

2011-05-04T08:42:00.000-07:00

A majority of Americans – both owners and renters – still believe in the importance of home ownership. That’s according to a study conducted by Fallon Research & Communications Inc., which reveals that 91 percent of owners and 72 percent of renters believe owning a home is a good financial investment.
As people age, their beliefs in the value of home ownership seem to be reinforced, according to the survey’s results. The study found that 69 percent of people ages 18-29, 76 percent of people ages 30- 44, 81 percent of people ages 45-59, and 86 percent of those over 60 believe home ownership is a good investment.
The study also revealed that 68 percent of renters agree that home owners experience a better quality of life due to more stable communities and greater pride in their neighborhoods

For More Information Please contact

http://www.realestateintally.com/

Upcoming Havana Fl Events...

2011-04-25T08:47:00.000-07:00

Come out to the Havana Fl Day Festival.....

Date: Saturday, May 7, 2011

Time: 9:00 AM

Location: Downtown Havana

Charity Benefactor: Community Cares Outreach of Havana

Havana has been steeped in history since the Town was founded in 1906. Remembering and celebrating "Historic Havana" is the theme of this family-friendly, all-day festival that includes a variety of games & activities. Arts, crafts and food vendors will line the downtown streets and there will be hayrides, pony rides, an obstacle course and more to entertain the young and young-at-heart. All shops/cafes will be open for your shopping and dining pleasure. Kids can visit the Game Pavilion where everyone gets a prize. Entry Fee is $1 or a Canned Food item to be donated to Community Cares Outreach of Havana. Enjoy the Hot Dog & Sausage Cook-out at the Fountain from 5:30 PM - 7:30 PM. Proceeds will go to the Downtown Stage Fund. Make plans now to spend the Mother's Day week-end in historic downtown Havana!

Billy Dean Concert with Guest, Daryle Singletary

Date: Saturday, May 7, 2011

Time: 6:00 PM

Location: Downtown Havana

A native of Quincy, Florida, BILLY DEAN has a diverse array of musical influences. Although he has sold over 4 million albums, has scored 11 top ten singles, and 5 number 1 songs in the Country music genre, this multi-award winning singer/songwriter, prefers not to be limited to one music genre. His music style is a blend of folk, rock,
americana and country.

DARYLE SINGLETARY

was among the brightest new stars to arrive on the contemporary country scene of the mid-'90s, winning fans with his simple honest songcraft and distinctively gravelly vocals. Born and raised in Cairo, GA, he grew up singing gospel along side his cousins and brother.

Advance ticket sales at local Havana merchant shops

Reserved Seating: Advance Purchase, $10; at the Gate, $12

General Admission: Advance Purchase, $5; at the Gate, $7

Foreclosure Assistance Kicks Off Statewide

2011-04-20T08:18:00.000-07:00

Tallahassee, FL - A $1 billion program aimed at helping homeowners avoid foreclosure kicked off Monday, though it is less ambitious than originally proposed.
The Florida Housing Corp. began taking applications Monday morning for the federally funded program that will provide nearly 40,000 unemployed and underemployed homeowners with up to six months of cash assistance to make payments on mortgages that would otherwise go unpaid.

Created by the U.S. Treasury in February 2010, the Housing Finance Agency Innovation Fund for the Hardest-Hit Housing Markets sets aside funds from the 2008 federal stimulus package to five states: Arizona, California, Florida, Michigan and Nevada, states with the highest levels of foreclosures. The program was later expanded to 18 states. Florida’s cut to date is $1 billion of nearly $9 billion in federal funds.
Florida is the last state of five original recipients to get its program underway. The program was rolled out last year in Lee County as a pilot. The region was the epicenter of a housing bust resulting in thousands of foreclosures.
“For the homeowners who qualify, this temporary relief from their mortgage payments will provide some ‘breathing room’ so they can focus on becoming re-employed at a level that will allow them to resume making payments on their own,” said Steve Auger, executive director of Florida Housing Finance Corp.
Florida’s original program would have provided as much as $35,000 in assistance over an 18 month period for homeowners who were looking for work and behind on their mortgages. After taking office, however, Gov. Rick Scott ordered a review of the program and changed its parameters.
The new program reduced the maximum award up to $12,000 and shortens the duration of benefits, which advocates said could reduce the program’s effectiveness for recipients whose job search takes longer to complete, as Florida’s economy recovers more slowly than other states.
The program also offers up to $6,000 for residents who have gone back to work to pay delinquent mortgage payments.
“Shortening it to six months is going to create more of a challenge,” said Jaimie Ross, president of the Florida Housing Coalition. But, she said, “the coalition is going to do everything it can to make the program a success.”
About 70 agencies are assisting in outreach efforts including local SHIP offices, non-profit groups and for-profit companies
Click on the link below for video and further information.
Foreclosure Assistance Kicks Off Statewide

Different Types of Loans

2011-02-08T11:55:00.000-08:00

Understanding Different Types of Loans

Today's homebuyer has more financing options than have ever been available before. From traditional mortgages to adjustable-rate and hybrid loans, there are financing packages designed to meet the needs of virtually anyone.
While the different choices may seem overwhelming at first, the overall goal is really quite simple: you want to find a loan that fits both your current financial situation and your future plans. Though this article discusses some of the more common loan types, you should spend time talking with different lenders before deciding on the right loan for your situation.
General categories of loans
Most loans fall into three major categories: fixed-rate, adjustable-rate, and hybrid loans that combine features of both.

Fixed-rate mortgages
As the name implies, a fixed-rate mortgage carries the same interest rate for the life of the loan. Traditionally, fixed-rate mortgages have been the most popular choice among homeowners, because the fixed monthly payment is easy to plan and budget for, and can help protect against inflation. Fixed-rate mortgages are most common in 30-year and 15-year terms, but recently more lenders have begun offering 20-year and 40-year loans.
Adjustable-rate mortgages (ARM)
Adjustable-rate mortgages differ from fixed-rate mortgages in that the interest rate and monthly payment can change over the life of the loan. This is because the interest rate for an ARM is tied to an index (such as Treasury Securities) that may rise or fall over time. In order to protect against dramatic increases in the rate, ARM loans usually have caps that limit the rate from rising above a certain amount between adjustments (i.e. no more than 2 percent a year), as well as a ceiling on how much the rate can go up during the life of the loan (i.e. no more than 6 percent). With these protections and low introductory rates, ARM loans have become the most widely accepted alternative to fixed-rate mortgages.
Hybrid loans
Hybrid loans combine features of both fixed-rate and adjustable-rate mortgages. Typically, a hybrid loan may start with a fixed-rate for a certain length of time, and then later convert to an adjustable-rate mortgage. However, be sure to check with your lender and find out how much the rate may increase after the conversion, as some hybrid loans do not have interest rate caps for the first adjustment period.

Other hybrid loans may start with a fixed interest rate for several years, and then later change to another (usually higher) fixed interest rate for the remainder of the loan term. Lenders frequently charge a lower introductory interest rate for hybrid loans vs. a traditional fixed-rate mortgage, which makes hybrid loans attractive to homeowners who desire the stability of a fixed-rate, but only plan to stay in their properties for a short time.

Balloon payments
A balloon payment refers to a loan that has a large, final payment due at the end of the loan. For example, there are currently fixed-rate loans which allow homeowners to make payments based on a 30-year loan, even though the entire balance of the loan may be due (the balloon payment) after 7 years. As with some hybrid loans, balloon loans may be attractive to homeowners who do not plan to stay in their house more than a short period of time.
Time as a factor in your loan choice
As has been discussed, the length of time you plan to own a property may have a strong influence on the type of loan you choose. For example, if you plan to stay in a home for 10 years or longer, a traditional fixed-rate mortgage may be your best bet. But if you plan on owning a home for a very short period (5 years or less), then the low introductory rate of an adjustable-rate mortgage may make the most financial sense. In general, ARMs have the lowest introductory interest rates, followed by hybrid loans, and then traditional fixed-rate mortgages.
FHA and VA loans
U.S. government loan programs such as those of the Federal Housing Authority (FHA) and Department of Veterans Affairs (VA) are designed to promote home ownership for people who might not otherwise be able to qualify for a conventional loan. Both FHA and VA loans have lower qualifying ratios than conventional loans, and often require smaller or no down payments.
Bear in mind, however, that FHA and VA loans are not issued by the government; rather, the loans are made by private lenders. FHA loans are insured to the actual lender and VA loans are guaranteed in case the borrower defaults. Remember too, that while any U.S. citizen may apply for a FHA loan, VA loans are only available to veterans or their spouses and certain government employees.
Conventional loans
A conventional loan is simply a loan offered by a traditional private lender. They may be fixed-rate, adjustable, hybrid or other types. While conventional loans may be harder to qualify for than government-backed loans, they often require less paperwork and typically do not have a maximum allowable amount.

With you in Mind,
Mary Baggett, CRS, e-Pro, SFR
Realtor, Montgomery Realty, Inc
(850) 524-2777 cell
(850) 514-3030 fax

Mary@RealEstateInTally.com
http://www.realestateintally.com/

About Me and My Real Estate Services

2011-02-04T14:35:00.000-08:00

I'm a proud Tallahassee (and surrounding areas) REALTOR®. My experience, knowledge, continuing education, and expertise in the area real estate market will benefit you whether you are looking to buy or sell a home in the area. I am a passionate, talented, Full Time Real Estate Professional, dedicated and committed to providing the excellent service of real estate consulting and marketing services to my clients, making the process stress-free and pain-free. I believe in Personal Customer Service beyond your expectations. My desire is to be the first and last Real Estate Consultant you ever work with because you received... "Service Beyond Your Expectations"!

“I love what I do…So you can love what I do for YOU!”

Mary Baggett, CRS, e-Pro, SFR
Realtor, Montgomery Realty, Inc
(850) 524-2777 cell
(850) 514-3030 fax
Mary@RealEstateInTally.com
http://www.realestateintally.com/