We are approaching Spring and also the prime time for real estate activity. Trees in our area are starting to bloom and the weather is changing as will our clocks as of this weekend. I love this time of year. I am a runner and I love to lounge in the pool so we are getting into my favorite two seasons for outdoor activity. My running decreases considerably in the winter and it shows! Back to real estate, I have every confidence that we will see some pick up this Spring and that is good, but I don't think it will be at outstanding levels. There are still too many distractions out there for buyers and sellers alike. I liked this article on the best time to buy things from MSN. The link is below.

Real estate
Best time: spring

Buying and selling season starts in March and goes through the summer. Spring invigorates the real estate market, meaning there are more homes to choose from. "In the spring market, homes look the best, grasses are green, flowers and trees are in bloom. There's a whole new energy out there after the beginning of the year," says Tom Stevens, president of the National Association of Realtors. Because spring is historically the time of the year when inventories are highest, competition is at its peak as well. Contrarian shoppers may find negotiating more to their liking in the fall and winter.

http://articles.moneycentral.msn.com/SavingandDebt/SaveMoney/TheBestTimeToBuyAnything.aspx
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Kristin Minugh

www.allshasta.com
www.allshastarealestate.com
530-227-5968

Real Estate Open Houses

Realtors have differing opinions on open houses. I personally like them. Some Realtors think they are a waste of time. Some Realtors are of the opinion that you only do open houses to keep sellers happy. To me there are several benefits to open houses and here are a few:

1. Don't be discouraged if only neighbors visit the open house. Neighbors talk and you are giving them something to talk about. They will tell their friends or their friends will ask when they come to visit. You never know and it is free advertising anyway.

2. Bring your laptop and be prepared. I see open houses as a way to meet potential buyers. Some things I do:
a. Have comparables available for potential buyers to look at. This shows that your home is priced right and a great value. If they are interested in another home, offer to show it later and set up a time.
b. Have your laptop ready. If you have done your best to interest them in the home but are unsuccessful, search your MLS for some that might be of interest and give them the addresses to drive by. If you have a portable printer that is even better, print the listing so they have all the information when they leave. Set up an appointment to show any listings when your open house is over. Some Realtors may be against this because they say you are there to sell the home that is open and that is true. But if you have active potential buyers why let them go. Note: I use my judgement on this one. If you are really busy, just set an appointment to meet with a potential buyer later, after your open house. You don't want the seller to feel you are not trying to sell their home If you do find a buyer, they may need to sell a home you don't want them thinking you are not going to represent them well for their transaction. Again, this is all a judgement and time factor. Some open houses are not that busy and you have time to do research for potential buyers.

3. Have treats (granola bars are good) for kids. Parents usually don't want their kids to have sugar, but you want to keep kids happy while you are talking with their parents. If you have a potential buyer and need to spend time working on details or answering questions, have an activity for kids to do that is mess-free and can be supervised but will allow the parents to feel comfortable staying to discuss a possible offer.

4. Have a hard copy of a blank contract and important disclosures handy in case you are not able to utilize your computer and/or you have a hot buyer and need to get a contract written while all parties are there and available. Hand written contracts may not be the preferred way, but they can work in the right situation and it is good to be prepared. Technology is not always reliable.

5. After introducing yourself to new visitors of your open house, go write the names down with a clue to trigger who they were for later. It is always impressive when you can remember people and call them by their name. Also any details you may have noted are good conversation starters. I do this because sometimes I don't always remember names and if you have a busy open house it may be harder to remember everyone. You never know which visitor may be the buyer of your listing. I use this as well as trying to have people sign a guest book so that you can market to the visitors of your open house. It is important to note which visitors are already represented by a Realtor so you do not infringe on agency relationships.
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Kristin Minugh

www.allshasta.com
www.allshastarealestate.com
530-227-5968

Five Ways To Best Serve Your Client

Here are five ways that I think best serve real estate clients in any situation:
1. Communicate an a regular basis, whether you have good news, bad news or no news, your clients want to know what is going on. If there is nothing new, simply call and ask if they need anything, they may have questions but don't want to bother you. I think that in the end, even if you have bad or disappointing news to report, as long as you do your best and communicate, your clients will appreciate your efforts.
2. Do what you say you are going to do. If you make a promise, keep it. If you can't keep it, don't make it. If you need to make commitments to your clients, think it through; can you keep your word? There is nothing wrong with saying you will try or telling your clients you will have to get back to them on something- as long as you do get back to them.
3. Nothing speaks louder than your actions or lack of. You can talk a great game, but if you lack action it will show. Don't rely on others to do your job. Be an active participant in the transaction for your client. It serves no one to blame others for your inaction. When and if something goes awry, you will know that you have done your best.
4. Introduce yourself and communicate regularly with other parties to the transaction such as the lender, escrow officer, inspectors etc. You will have a better handle on what is going on and be able to head off potential problems quicker. If you have an assistant that you work with, still communicate for yourself. I think that you should be updating your assistant, not your assistant updating you.
5. Realize that the client is making a big investment and sometimes for the first time. Treat them with respect and not like they are just a commission. Give personal attention. Don't make the sale and them dump them off with an assistant. Stay connected, after all it is usually you that they bonded with and they will not appreciate your sudden disappearance. I think that no matter how big you get it should always be personal, even with the internet being such a factor.

These are just some thoughts that I have on serving clients in a real estate transaction. Of course each Realtor and transaction is different. There is no one right way, and several wrong ways. It is always best to remember that your clients will talk, what do you want them saying about you?
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Kristin Minugh

www.allshasta.com
www.allshastarealestate.com
530-227-5968

IRS is Eyeing Real Estate Practitioners

Hello,

This article from REALTOR Magazine Online was sent to you by:
Kristin Minugh, kristinminugh@charter.net

IRS is Eyeing Real Estate Practitioners
http://www.realtor.org/RMODaily.nsf/pages/News2008022204?OpenDocument

Message from sender:

***********************************************************************
For tip-filled articles, blogs, and multimedia presentations
that can boost your real estate career,
visit REALTOR® Magazine Online.

Find us at:
http://www.realtor.org/realtormag

Real Estate Purchase Contracts

Below are some terms that sellers will need to be aware of when reviewing a purchase contract. Although it is always recommended that you have your Realtor help you with this, you should read the entire contract and make sure you understand it completely, if you don't understand - ASK! These are areas of special attention:

1. The closing date. See if the date the buyer wants to take title is reasonable for you. This is negotiable and needs to work well for both parties. It is important to know that this can be changed during the contract via addendum, but it has to be reasonable and agreed to by all parties in order for it to be effective.

2. Date of possession. See if the date the buyer wants to move in is reasonable for you. Make sure to consider where you are moving and how that will transpire. I can't tell you how many times escrow closes, the buyer is ready to move in and the seller is either forced to rent back from the buyers or move to temporary housing because the home they are moving to has not closed or is not ready. Make special note that the date you agree upon for closing is the time and date the buyer gets possession so you as the seller need to be out by that date and time (unless otherwise agreed!).

3. The earnest money. Look for the largest earnest-money deposit possible; since it is forfeited if the buyer backs out after the contingency period (under most conditions), a large deposit is usually a good indication of a sincere buyer. Remember though, there are contingency periods and if they are not removed in writing they can remain in effect throughout the contract leaving the earnest deposit going back to the buyers if they change their mind.

4. Fixtures and personal property. Check the list of items that the buyer expects to remain with the property and be sure it's acceptable. Don't assume! It is important that this is clear to both parties.

5. Repairs. Determine what the requested repairs will cost and whether you're willing to do the work or would rather lower the price by that amount. A way to possibly avoid this is to have a home inspection done prior to listing the home. That way you know in advance what may require fixing or what the potential buyers may request. You can also use this in negotiations. The buyer may still hire their own inspector and that is ok. If you have fixed items noted on your home inspection, it can give you additional bargaining power.

6. Contingencies. This is important, make sure your Realtor goes over these with you so that you fully understand. See what other factors the buyer wants met before the contract is final—inspections, selling a home, obtaining a mortgage, review of the contract by an attorney. Set time limits on contingencies so that they won't drag on and keep your sale from becoming final. Again, it is very important that you have your Realtor get these contingencies removed in writing at the expiration date of each contingency. Another helpful thing when possible, have all contingencies expire on or as close to the same date.

7. The contract expiration date. See how long you have to make a decision on the offer. Make sure you pay extra close attention to this date. Some buyers may cut you slack, but others may hold you to the contract if you wait until after the expiration date to make any decisions. Make sure all of this is in writing.

I may be saying "in writing" a lot, but I cannot express how important this is. There are a lot of real estate transactions that go very smoothly, but it never hurts to have all of your ducks in a row and be prepared. It is just good business. Your Realtor should handle all of this for you and your Realtor should also be well aware of all the important dates.

Written with the assistance of Realtor.org.
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Kristin Minugh

www.allshasta.com
www.allshastarealestate.com
530-227-5968

Capital Gains in Real Estate

With tax season in full swing I thought that this might be of interest to some.

When you sell a stock, you owe taxes on your gain—the difference between what you paid for the stock and what you sold it for. The same is true with selling a home (or a second home), but there are some special considerations.

How to Calculate Gain
In real estate, capital gains are based not on what you paid for the home, but on its adjusted cost basis. To calculate this:
1. Take the purchase price of the home: This is the sale price, not the amount of money you actually contributed at closing.
2. Add adjustments:
- Cost of the purchase—including transfer fees, attorney fees, inspections, but not points you paid on your mortgage.
- Cost of sale—including inspections, attorney's fee, real estate commission, and money you spent to fix up your home just prior to sale.
- Cost of improvements—including room additions, deck, etc. Note here that improvements do not include repairing or replacing something already there, such as putting on a new roof or buying a new furnace.
3. The total of this is the adjusted cost basis of your home.
4. Subtract this adjusted cost basis from the amount you sell your home for. This is your capital gain.

A Special Real Estate Exemption for Capital Gains
Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a home is exempt from taxation if you meet the following criteria:
- You have lived in the home as your principal residence for two out of the last five years.
- You have not sold or exchanged another home during the two years preceding the sale.

Also note that as of 2003, you also may qualify for this exemption if you meet what the IRS calls "unforeseen circumstances," such as job loss, divorce, or family medical emergency.

I always recommend consulting your accountant and/or attorney for personal attention to your particular situation but this may help understand the basics of capital gains.

Copyright 2005. All rights reserved. www.REALTOR.org/realtormag

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Kristin Minugh

www.allshasta.com
www.allshastarealestate.com
530-227-5968

Cell phones and texting

Kind of an offbeat topic, but I am often curious about how many agents, assistants, anyone in the real estate industry use text messaging. I know that I use it a lot when communicating with my daughter, as this is her prime form of communication. At first I rebelled at the notion that I would text her. But, my curiosity forced my to spend hours trying to figure out just how it all works. I eventually learned how. Now I text quite a bit. Mostly just friends and my daughter and her friends. Don't get me wrong, I don't think that it should replace verbal communication but it sure does save time and I don't have to worry as much about tumors from having the phone to my ear. I love my cell phone and I have loved the concept of them since their inception. Texting can be so much cheaper, you can get a quick message to someone and be on with business. It is also a bit more private. Similar to email and IM. Is this something that may work its way into the virtual assistant arena or be utilized between agents and clients? I have not encountered many that use texting and I will continue to be curious about what the younger generation will do with texting in the future.
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Kristin Minugh

www.allshasta.com
www.allshastarealestate.com
530-227-5968

CAR's ClientDirect Newsletter

The California Association of Realtors (CAR) is offering their ClientDirect newsletter to Realtors/CAR members for free. On the site, it states that they normally charge $149/month for the service. So I decided to give it a try.

This is a personalized newsletter that you really don't have to do too much to. You enter the email addresses of the recipients that you would like to have receive the newsletter. One of the nice features is that there are several pre-written articles to choose from or you can write your own. You can load your picture and personal contact information. You can add your listings. Each month you get an email letting you know that new articles are available to choose from. CAR (or ClientDirect) sends the newsletter out for you. It really was easy.

For Realtors, this could be a good way to stay in contact with your sphere of influence and minimize the workload of you or your assistant. If you are a Realtor and have ever wanted to send out a newsletter but did not want to do a lot of work, this may just be the thing for you. It is not for everyone, but for free... who knows, give it a look and decide for yourself.

www.clientdirect.net

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Kristin Minugh

www.allshasta.com
www.allshastarealestate.com
530-227-5968