So far 2012 has shown several positive signs that the real estate market is finally on the upswing.

• Increased activity in our local market
• Modest price gains
• Open houses are attracting crowds, and more listings are slowly coming on the market.
• More buyers are being pre-approved
• Multiple offer situations are still common
• Consumer confidence will likely keep rates low through the elections and into 2013

Gift or Inherit – 6/11/2012

Transferring the title of a home from one person to another may seem simple but it could have a significant tax implication.

When a person inherits property, the basis is “stepped-up” to fair market value at the time of the decedent’s death. On the other hand, a gift has a carry-over basis which means that the recipient receives the unrealized gain also.

As an example, let’s say an elderly parent, in an attempt to get their affairs in order, gives their home to their adult child. The rationale might be that they are the sole beneficiary and will get the property eventually. In an effort to settle things early, unnecessary income tax may be incurred.

If the home was purchased for $20,000 and worth $100,000 at the time of transfer, there is a possible gain of $80,000. However, if the adult child inherited the property at the time of the parent’s death, their new basis would be $100,000 or the fair market value at the time of death and the possible gain would be zero.

This is meant to be an example and many other variables could be involved. If you’re concerned about a situation, you should seek specific advice from a tax professional. As always, I’m here to help you as your real estate professional.

Have you ever wondered how house flippers are able to turn a profit? It’s easier than you may think. In this Yahoo! article you can learn some of the secrets of house flippers and apply them to your own house sale. There are some great tips in here to ensure you get the most bang for your buck.

When buying a home you may hear the word Escrow tossed around. But what is Escrow??

Here is a great article from Yahoo! that explains what Escrow is and why you need it.

The Tacoma News Tribune mentioned us on their blog. Check it out!

Are you a first time home buyer? Here is a great article from www.smartmoney.com on some common mistakes to avoid when looking for your first home.

Read Here

Here are some fun events happening  around Puget Sound

1-3 Edmonds Waterfront Festival
edmondswaterfrontfestvial.com
2 Duvall Days
duvallwa.gov
2-3 The Maritime Gig Festival
Gig Harbor
maritimegig.com
8-10 Everett’s Garden Arts Festival
everettwa.org
9-10 Tastin’ n Racin’ – Issaquah
Lake Sammamish State Park
tastinracin.com
9-17 Marysville Strawberry Festival
maryfest.com
15-17 Edmonds Art Festival
edmondsartfestival.com
15-17 Meeker Days Festival
Puyallup
puyallupmainstreet.com
16-17 Fremont Fair
Seattle, Fremont Ave North
fremontfair.com
23 Seafair Rock ‘n’ Roll Marathon
Tukwila-Seattle
seafair.com
24 Seattle Pride Fest
Seattle Center
seattlepridefest.org
24 Midsommarfest
Kenmore
skandia-folkdance.org
29-7.1 Taste of Tacoma
Point Defiance Park
tasteoftacoma.com

Good news on Real Estate recovery

U.S. home prices could rise 4% a year, forecast says

Are you having trouble selling your house?  Here are a few quick and easy tips that will tip the scales in your favor.

• Paint, paint, paint. Fresh paint can make a world of difference in a room. If you have lots of color in your house it is a good idea to re-paint with neutral colors. Prospective buyers can be distracted by color and have a hard time picturing their things in your home.
• Remove personal items. Family pictures and keepsakes should be taken down when trying to sell your house. These items could also make a buyer feel unable to see their own family in your house.
• Remove the clutter. If you are still living in your house while trying to sell it, remove as much of the “extra” in your home as possible. The less that is in your home at the time of showing the easier it will be for the potential buyer to see the house itself and not focus on your furniture. Off-site storage is ideal for these items so closets and storage spaces can be viewed without clutter as well.

Pre-approval Gives Everyone Confidence

The benefits of buyer’s pre-approval are without question; it is good for the buyers, the sellers and the agents. It saves time, money and removes the uncertainty of knowing whether the buyer is qualified. The direct benefits include:

•  Amount the buyer can borrow decreases as interest rates rise
•   Looking at “Right” homes – price, size, amenities, location
•  Find the best loan – rate, term, type
•  Uncover credit issues early – time to cure possible problems
•   Bargaining power – price, terms, & timing
•  Close quicker – verifications have been made

There a big difference in sitting down with a trusted mortgage professional compared to going through calculators on a website. The cost of being pre-approved is a bargain and generally, limited to the cost of the credit report. Even if you have been pre-approved, a suggestion that can’t hurt but may help is to get a second opinion from a different lender. It will either verify that you have a good deal or you’ll discover that you can improve it. Either way, it works to your advantage. Contact me if you’d like a recommendation.