"Moving is Fun" and other Rochester Minnesota real estate news

It’s been quite a day for two sellers we represent. Not only did each home sell today, but each home had multiple offer – including three offers on one property! People say it’s a buyer’s market, well, these two sellers might just tell you different. Buyers are out in the market place and the sellers are happy! Is now the time to take advantage of the market? Maybe. Contact us and we’ll give you an insider’s look at the market and give you the advice and input you need so that you can make the best decisions possible.

5304 52 Ave NW Rochester, MN This sparkling, fully finished 4 bedroom 4 bath home close to the new elementary school has just come available. Super clean, very detailed, and nothing to do. Main floor family room with fireplace, formal dining, large master suite with private bath, and 3 bedrooms on one level. Finished lower level with fabulous home theater room. Great yard and deck outside – hot tub negotiable. Pre-inspected – report available.

Spacious Kitchen

Formal Dining

Family Room with Fireplace

Master Suite with Private Bath

Lower Level Media Room

The change is official, our REMAX office here in Rochester has merged with the largest REMAX office in Minnesota to become REMAX Results. This means that we’ll have more tools, more resources, and more connections to be even more effective in helping people buy and sell homes.

REMAX is the most productive real estate firm in Rochester; REMAX Results is the most productive REMAX office system in the Twin Cities. We’re excited about the opportunities that this merger allows us to offer you.

You can count on us continue to offer the same high level of personalized service, Tuesday Update Calls, Holiday Movie Events with Santa, and direct information that you have come to know us for, and now we’ll be known as REMAX Results!

Now you, your friends and co-workers, and other people you refer to us for helpful real estate information and advice will receive an even high level of service!!

Thank you!!

Homeowners around the Rochester area constantly as us, “When is the best time to put a house on the market?”

We constantly study the housing market in Rochester and Olmsted County, looking for trends that benefit our clients. Our research shows that if you’re looking to sell your home as quickly as possible and for the most money, January to early February is often the best time of year to put a house on the market, here’s why:

Reason #1 After stepping out of the market for the holidays, many home buyers begin their ‘spring’ house buying in early January. There is an immediate increase in the number of buyers looking to buy homes, beginning in January.

Reason #2 There are fewer homes on the market in January than any other month of the year. This makes it easier for your home to stand out among the other homes on the market. By April, there will be 30-50% more homes on the market, each competing for buyers.

Conclusion: More buyers, combined with fewer homes competing with yours, means that your Rochester area home can sell as quickly as possible for the highest possible price.

Do you want to get the most when selling your home? Contact us for a free, no obligation consultation to learn the tips to maximizing the value of your home.

The 2012 Housing Market predictions are starting to come in. Here’s a link to one of them that predicts the price GAINS over the next couple of years.

Beth and I have done some serious analysis of the Rochester area market and feel that 2012 will be a better year for local real estate. We predict (and I’m putting in writing here) that local house values will end their decline. Do we see a rise? Well… We consider t he end of the decline in values to be a big win. Rochester area Buyers can feel more confident about making the decision to buy and Rochester Homeowners and Sellers can also relax.

Mortgage rates are amazingly low right now, and combined with the low prices of homes, we feel this is the perfect time to buy into this market.

Houses are all different, so seek the advice of a real estate professional before making any decisions. You can call REMAX at 507-287-7777 and talk to either Beth or Greg for a free consultation to learn more about your options and how the current market might affect your decisions.

The day before Thanksgiving, Beth used the self-cleaning feature to clean our oven. The oven cleaned fine, but quit working immediately after and we were left with a non-working oven. In talking with the service tech today, he said that the self-cleaning feature is really hard on ovens and ideally should not be used. Instead, clean them manually with name brand oven cleaners designed for self-cleaning ovens (is there a joke here?) or use ‘a Magic Eraser, vinegar, and baking soda’. Who’da thought? Made Thanksgiving 2011 a little more memorable around the Hostetter house.

Contrary to the rumors, people are buying great houses by the time they’re 25. Here’s a CNNMoney video on how to do it. Their system works here in Rochester too.

Here’s a quick video from Minnesota Public Radio on why property taxes are going up.

We have received many questions about a possible 3.8% tax which will be put on home sales beginning in 2013. We want to do our best to clarify this situation for everyone. We are not accountants and give you this information just as a simple answer to the misconception. Understand that, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.

A little history on the confusion
Fact Check.org explains it this way:
The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home.

And just to be sure, we checked with William Ahern, director of policy and communications for the nonprofit, pro-business Tax Foundation. “Some home sales would see a tax increase under this bill,” Ahern told us, “but it would have to be a second home or a principal residence generating [a gain of] more than $250,000 ($500,000 for a couple).”

Simple Explanation:
The following simple explanation comes from midiShaw:
The tax will affect those sellers of real property who will be otherwise taxed on capital gains under current tax laws. Under current laws, if you sell your primary residence and meet the ‘time ‘ criteria, you are exempt up to $250,000 or $500,000 (filing individually or jointly). Any amount realized OVER that amount is taxable under current tax schedules based on income. As such, this new tax will apparently be added to the current capital gains tax burden IF your income is over $200,000/$250,000 (filing individually or jointly). For those selling second homes and investment properties, the tax, once again, will be applied to the amount of gain realized.

Detailed Explanation:
The following also comes from midiShaw in a comment to the above answer:
Beginning in 2013, the national health care reform legislation that became law in March, 2010, imposes a new 3.8 percent tax on certain investment income. The new tax will apply to single filers with incomes over $200,000 and married taxpayers with incomes over $250,000. Under the law, the investment tax provisions in Chapter 2A of the Internal Revenue Code are placed under the heading “Unearned Income Medicare Contribution.” In general, this new Medicare tax will apply to investment income that is subject to income tax, which includes capital gains. Pursuant to IRC Section 1402 (C)(1)(A)(iii), the investment income to which this new tax applies includes “net gain” (to the extent taken into account in computing taxable income) attributed to the disposition of property that qualifies as a capital asset under Section 1221 (capital gains), as well as gains on other property that are considered part of ordinary income.

We offer this just as an explanation. Remember, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.

What do you mean- if it listed it is for sale, isn’t it? That depends on the seller. We picture all houses for sale being owned by sellers that are busy cleaning and waiting by the phone for the showing call/offer to come in. But some people are not emotionally ready to sell, even if the house is listed. Sellers are people, and people have different reasons for putting a house on the market.

Some people might have to sell due to financial hardship, divorce, death or illness. A job transfer – welcome or not – or a job loss. Aging or health issues can also put a house on the market. Often when life forces someone to have to sell their house they will stall the process of getting the house sold. This is often reflected in setting the price too high to so there are no showings, not maintaining the house, not making it available for showings, and/or being irrational when negotiating an offer.

Even when someone is selling for more fun reasons – fears can crop up: fear that the house will sell too quickly, fear of losing the memories in the home, fear of the permanency of the decision.

If you are buying, be aware you might not be able to buy or even view some homes if the seller is in a difficult emotional or financial situation. Until reality starts to take hold on a home seller, many sellers will delay making the changes necessary to really sell the house. Until that time comes, you can only wait.

For sellers facing hard emotional times, be honest with yourself about the situation. Every seller has fears and often delays making the important, necessary decisions. Signs that you are delaying are often masked behind statements like: “I am waiting for the right buyer”, or waiting for “the market to turn around”. If you’re selling, ask yourself if delaying the decision will really change the situation, or is it just a stalling technique to avoid making the tough decision. What is the real cost of delaying? If it turns out you really don’t want to sell, and don’t have to, then don’t sell your home. If you do need to sell, make the decisions that will move the process forward toward really selling the house. Not only will this reduce your stress level, buy it will be better for you in the long run, too.