10 Questions to Ask Your Real Estate Agent Before You Hire Them

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Is this your full time job? Can you provide a schedule for your daily activities?

A lot of agents are not on point full time. Knowing how much time they choose to devote to the real estate profession can help you determine how much time and effort you can expect them to put into helping you. Find out if they consider real estate a job or a career. 

How many clients have you served this year? How many clients did you service last year?

The difference between an agent that averages 10 transactions in a year versus 10 transactions in a month is the difference between how aggressively they put forth an effort into their work. Naturally you want to work with a team that is on top; their experience level will reflect directly on your home buying or selling experience.

How many sales have you handled in my neighborhood?

If not a particular neighborhood then you should find out if they specialize in the same type of transaction that you will be going through. Residential or Commercial property? Multi-unit properties? Condos? Investment properties?

What do you charge? And how long is your contract?

Contract length can become a major concern for people if they don’t realize what they are signing. From the start, it’s a good idea to ask your agent how long they typically set up a contract. Keep in mind that contract length, just like many other things in real estate, is negotiable. You can also negotiate listing commissions. If you don’t agree with their pricing or time frame – you have no reason to work with them.

What services do you offer?

Many agents revert to the traditional methods of selling a home. They just put out a sign in the yard, post the listing on the MLS, host one open house and that’s that. They wait.

The same thing applies with helping buyers find a home. Less than aggressive buyer’s agents might rely on their clients to search homes online. Proactive teams will go out there and get the connections you need to buy or sell your home.

What are you going to do to advertise my home or how do you help find a home?

There’s advertising and then there’s marketing. Find out what the agent plans to do to market your home. Will they rely only on traditional methods or will they get outside the box and cater to today’s buyers and sellers? Will they use technology? Are they well versed in the latest tools out there to get more exposure on your home when selling?

Who else will be working with you?

What happens to your home and search when your agent is not well or is out of town or on vacation? Is everything put on hold? Is there a team in place? It’s important to find out if you have a strong team on your side so that when your agent goes on vacation, your listing or home search doesn’t have to go on vacation too.

Do you represent buyers and sellers in the same transactions?

At times, some agents will profess their allegiance to only one side of the transaction. But truth be told, a good agent will recognize being hired to bring business to your property. Taking a proactive stance is key in finding the perfect home or bringing buyers to your house.

What sets you apart from other agents?

This is an important question to ask since there are so many agents in the field. What really sets them apart? Are they one of the 90% that only contributes to 10% of the sales volume in your area? Or are they among the 10% that contributes to 90% of the sales volume in your vicinity?

Will you provide a list of references of past client you’ve worked with?

This one may take some agents by surprise. If not prepared, it may be the best way to gain an accurate understanding of how their clients perceive them on a service level, communication level, updates and more. You can learn how the agent conducts business, how they are in negotiation and how they treat their clients. 

How to Use a 1031 Exchange to Save a Bundle When Buying Investments

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If you're a real estate investor or thinking of becoming one, then you can definitely take advantage of this law, and I recommend you do so.

Basically, the "1031" allows you to sell one property and buy another without incurring capital gains taxes.

You simply have to re-invest all your profits into the next property (or properties) within a specific timeline (described later).

However, the property must be “qualifying property.” This is property held for investment purposes or used in a taxpayer's trade or business.

Investment property includes real estate, improved or unimproved, held for investment or income producing purposes.

Be aware that real estate must be replaced with like-kind real estate. This means that “like-kind replacement property” can be any improved or unimproved real estate held for income, investment or business use. 

Here are some examples:

·    Improved real estate can be replaced with unimproved real estate and vice versa.

·    A 100% interest can be exchanged for an undivided percentage interest with multiple owners and vice-versa.

·    One property can be exchanged for two or more properties.

·    Two or more properties can be exchanged for one replacement property.

·    A duplex can be exchanged for a fourplex.

·    Investment property can be exchanged for business property and vice versa.

Be Aware: Your personal residence can't be exchanged for income property, and income or investment property cannot be exchanged for a personal residence in you'll reside!

What Are the Types of 1031 Tax Deferred Exchanges?

There are three types of 1031 tax deferred exchanges that can take place:

·    Straight exchanges—two parties trade properties of equal or approximate value. This is the simplest exchange.

·    Multi-party exchanges—this involves three or more parties buying, selling, or exchanging properties. Don't attempt these exchanges without the aid of a tax professional; they tend to be very complex.

·    Delayed exchanges—this exchange allows the sale of the relinquished property and the buying of the replacement property to occur at different times as long as stringent rules are followed. This is the exchange most often used.

What's the Advantage of the 1031 in Terms of Taxes?

As the law's title indicates, the capital gains tax is deferred, but not eliminated.

However deferral is a great way to leverage small real estate holdings into larger ones!

Since you can postpone gains, you're able to use a tax-deferred exchange strategy to transfer equity to a larger property, all without paying taxes! 

Another advantage is that there’s no limit on exchanges. This means you can make as many exchanges as you want!

So, over the course of your lifetime, you can keep growing income and appreciation by adding new properties without having to pay the capital gains tax! 

If you specialize in buying and renovating properties and want to keep reinvesting your profits into larger properties, then this strategy is especially attractive.

Note: If you don’t keep reinvesting, you risk being classified as a real estate dealer by the IRS and will not be able to participate in exchanges.

What Are the Basic 1031 Qualification Rules?

There are some basic rules that must be followed in order to qualify for a 1031 exchange. These include the following:

·    The properties to be exchanged must be located in the United States. Note: You can exchange foreign property for foreign property and domestic for domestic. However, you can’t mix these exchanges together.

·    You must trade only like-kind real estate.

·    An exchange must be made that’s equal to or greater in both value and equity. Any cash or debt relief received above this amount is considered “boot” and is taxable.

·    The like-kind property must be identified within 45 days of the closing on the initial property.

·    All proceeds from the initial sale must be turned over to a "qualified intermediary" (also called a QI, facilitator, exchanger, etc.) who is the person or company playing the role of middleman.

·    Any of the proceeds not under the control of the middleman are subject to taxation.

           

            The middleman holds the funds from the initial property in escrow until such time as the closing on the second property occurs.

            The middleman also assists the owner with the preparation of paperwork and other services to ensure the transaction progresses in a smooth manner.

·    The closing on the second property must take place within 180 days following the close on the first property.

Wow, as you can tell, this is a pretty complex subject and can't be completely covered here! But if you're an investor or plan to be one, I hope I whetted your appetite for this subject.

What Money Can Buy These Days

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Everyone knows that the property market has had some really bumpy ups and downs over the past several years. With everything from a strong market to an unstable one filled with foreclosures and short sale and back to a recovery – a lot has happened.

Today, we are sitting very comfortably in the midst of a sellers’ market and though it may seem as if buyers can’t get much of a deal anymore, the truth is there are still some great deals to be had. Here is a sampling of some of the excellent homes out there right now that you can buy and end up paying close to or less than what you’d expect to pay for a rent.

Perfect Small Sized Home With Nice Amenities

Bank Approved Short Sale

Very affordably priced at $164,000

880 square feet

3 beds plus an additional room that can be used as an office space or den

2 full bathrooms

2-car garage

Monthly payment with today’s interest rate of 3.5% is just $740

Lots of Space, Fantastic Home

5 bedrooms, 2 full bathrooms

2-car garage

2724 square feet

Today’s price is just $179,900

$807 a month with a 3.5% interest rate

An Exquisite Newly Remodeled Home

6 bedrooms, 3 full bathrooms

Huge garage with room for 3 cars

Beautifully remodeled

Today’s very affordable price is $214,000

The low monthly payment is $963 a month with an interest rate of 3.5%

Gorgeous Home Loaded With Amenities

4 bedrooms, 2 full bathrooms

2497 square feet

Nice 2-car garage

Completely loaded with all the bells and whistles

Priced at just $270,000

Monthly payment amount just over $1200

Simply Stunning Six-Bedroom Home

Huge home with 4400 square feet of space

6 bedrooms, three full baths

3-car garage

$394,000

Completely loaded with gorgeous upgrades

The payment is very affordable at $1770 a month with a 3.5% interest rate

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What are you waiting for? It won’t be long before interest rates will climb up again and they will rise quickly when they do. Do you want to be one of those homeowners paying way too much for a mortgage? Call us today. We’d love to show one of these, or any home. Hurry! Inventory levels are lower than they have been in a long time and the really great ones are selling fast.

435-327-2090

jared@jaredzimmer.com

Now’s the Time!

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Our market update compares this time in 2013 to last year at the same time. With a shrinking supply, there is a smaller number of homes on the market, so we closed fewer homes—57 as opposed to 71, which was a decrease of 19.7%. A sign of strength is the average and median sales prices increased from $107,000 in 2012 to $122,000 in 2013, so prices are up 23.7%. If you’re an investor or first-time buyer, anything around $122,000 is moving quickly. Recently, two properties had multiple offers within two days of being on the market—and they went for higher than what we anticipated selling them for.  

On the other side of the price spectrum, we’re seeing more closings for high-end properties than we have in the past three to four years. Many high-end buyers are wanting to make a move to take advantage of low interest rates, which are hovering around 4%, and they understand inventory is continuing to shrink.  

Low inventory is definitely an interesting factor to consider. Supply is drying up. If we look at what’s happening in the REO sector—the foreclosures are decreasing. Short sales are dropping as well. With all types of inventory dropping comes the increase in price because it’s all about supply and demand. This is good for home owners because the lack of inventory drives the home prices up and puts value back in the economy. On the flip side, when mass amounts of homes flood the market, prices drop. It’s all about supply and demand. Our current situation also has an effect on new construction because when inventory is low and we’re not seeing certain price points, new construction becomes an attractive option. 

So what does this market have to offer the seller? To get top dollar when selling your property, you should take advantage of the low inventory. Now’s the time! When everyone who has been thinking about selling their home puts their home on the market is not the time to dive in—if you want to get the most out of your home. If you wait for all the other For Sale signs to sprout up, you’ll have lots of homes to compete with. At the end of the day, you have a better chance at success if you decide to sell now, instead of waiting until all the Joneses get into the market.

What does this mean for the buyer? When a home that you’re interested in hits the market, plan to see it as soon as possible and make the best possible offer that’s at an appropriate price point for the seller. Remember, homes are moving quickly. If you hesitate, the property could be gone tomorrow because others will be making offers.     

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To prepare yourself as a buyer, you can think about what you want out of a dream home so you are ready to decide on a property. Ask yourself questions such as how close do you want to be to your job? To shopping? To your place of worship?  Would you like to have a garden? Do you need a garage? How close do you want to be to a grocery store? Based on all the information you provide, a knowledgeable agent will help you land your dream home in this market.   
It’s a stellar time to dive into the market. Give me a call so I can tell you where to be positioned and how to be successful in this market. Please contact me at (435) 327-2090 or jared@jaredzimmer.com. We’d be happy to assist you. 

Thank You!

With Thanksgiving having recently passed, it is the time to be grateful for all of the blessings we have. In the spirit of the holiday, I would like to share with you two of the most moving, inspiration, and inspiring videos I have ever seen. Each of these videos has the power to move you to tears. It is amazing what people can do when they focus, work hard and dare to dream. 

The Story of Rick and Dick Hoyt - Team Hoyt (watch on your mobile device)

Nick Vujicic - No Arms, No Legs, No Worries (watch on your mobile device)


I would like to take this opportunity to say “THANK YOU” to all of the people and families that put their confidence and allowed us to help them buy or sell a home this year. We have been able to help over 120 families achieve their various real estate goals this year. It has been such a great experience to be a part of your quest to fulfill your dream. Thank you!

 

New Construction is BACK!

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When the housing market crashed in 2007 we saw an abundance of homes on the market – and most remained on the market as sellers struggled to sell them. But today, there is a world of difference in our marketplace. Buyers are actually having a hard time finding the perfect home as inventory levels have dropped significantly. And they continue to fall.

One solution is building a new home. In fact, new construction for one company, Infinity Builders, has been on the rise steadily since last year with a stark comparison of new builds on the market from 6 homes just three years ago to being on target for 24 this year. Andrew Blake of Infinity shares his insight with us about the marketplace and what his company offers to homebuyers seeking their dream home.

These days, the most popular floor plan that is offered by Infinity Builders runs for about $180,000. The plan includes a vast array of amenities plus upgrades and features that will satisfy the appetite of homebuyers that otherwise are unable to find everything they are looking for in an existing home.

This particular floor plan is about 2,200 square feet, has a very large 800 square foot garage and is loaded with all the bells and whistles that new homebuyers love to see – granite countertops, stainless steel appliances plus many more upgrades throughout the home. Bathrooms are finished with high-end fixtures and gorgeous ceramic tiling. Lighting fixtures and hardware are also high-end throughout the space.

Another popular floor plan that they offer is the 1,600 square foot plan that was also a parade home. Running for about $180,000 to $190,000 these homes are ideal as a starter home or for a homebuyer that wants to upgrade into something newer. And contrary to popular belief, the time frame is not more than a few months; in fact the typical build for Infinity Builders is about 3 months from the point of beginning to when homeowners can move in.

With fewer and fewer choices of existing homes available on the market to choose from homebuyers are either settling for something that just does not cut it or they are turning to new builds. Without a doubt, the process of a newly constructed home is exciting not to mention the fresh start that comes with a brand new home.

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For more information about buying a home that will be built from scratch – contact us today. We look forward to serving you!