Picking the RIGHT moving company

There are lots of good reasons to hire a moving company. It lowers your moving day stress, saves your back, and with the right company can ensure that your goods are safe from accidental damage. But for every sweet song of a smooth move, there are an equal number of “moving company blues” tunes out there. From a few sad notes of regret to total devastation, making a mistake when hiring a moving company can be an experience you’ll never forget. Here are some tips to help make the right move when it comes to choosing partners for your next relocation: 1) Get in-house estimates for your move from anywhere between 2 to 4 companies. Many may say they don’t need to see your stuff to estimate the cost, but the fact is a reputable company will want to see your place first-hand. 2) Do your legal homework on the moving company. Trustworthy companies will have their Motor Carrier number and D.O.T. (Department of Transportation) license information posted online (or with their materials). Check with the BBB (Better Business Bureau) for complaints and do a little research on Yelp.com for customer reviews. 3) Don’t commit to a big deposit or other down payment. Shady operators can abscond with you money and/or hold your possessions hostage to extort “excess fuel charges” or other bogus price changes. 4) Never go with the low-ball offer. If you get three estimates within the same range and one that’s substantially lower, what does that tell you about the quote? Don’t let cheap impulses turn into expensive mistakes. 5) Get referrals from friends, co-workers, and even your H.R. department (assuming you work for a company that deals with relocations). Also... ask your real estate agent! Are you looking for referrals for a trustworthy moving company? I’d be glad to provide you with private references. Contact me for the information today: Becca Linnig, RE/MAX REALTOR® (480) 570-8845, bhotaz@hotmail.com

The Right Home for the Right Buyer

Marketing a home is not like marketing a commodity, such as bottled water. While everyone needs shelter, it would be a serious oversimplification to say that’s all a home offers. Many agents take the perspective that a home is the right home for a buyer simply because they happen to be selling it. The truth is it can be a real waste of time and effort convincing people that a home’s qualities are exactly what they’re looking for. It’s far more efficient to market the home’s qualities to the segment of buyers who have a natural lifestyle fit for the home. Profiling and segmenting buyer lifestyle is an excellent way to optimize the budget for marketing a home. Rather than taking a shotgun approach, I like to tailor the home’s story as much as possible to the types of buyers who best represent the projected buyer for a specific listing. Analyzing the specific qualities of the home is a natural first place to start. Is it close to an organic farmers’ market? Next to a country club with a legendary golf course? Does it have a garage fit for two BMWs, or is it a one-Prius sort of place? Has it got natural family sprawl or bachelor appeal? I also like to talk with the sellers about what originally drew them to the home. What caught their eye? Why was it the right place at the right time? What is encouraging them to move on now? All of this adds up to the story of a listing. This story can then inform the marketing plan for the property, staging decisions, open houses, and even the way photos/videos are shot and presented online. We’re no longer looking for a convenient cave for shelter from the elements. We live in homes. Our homes should reflect our lifestyle. Keeping this in mind throughout the entire listing and marketing process is what makes me good at matching properties to buyers for my clients each and every week. Let’s get started selling your home’s lifestyle today! Contact me for a no-obligation meeting: Becca Linnig, RE/MAX REALTOR® (480) 570-8845, bhotaz@hotmail.com

New Year New You?

Are you going to be one of the few who look back one year from now with the extreme satisfaction of having kept your promises to yourself? Or will you be among the millions who vow to try again next year? I want you to be in the first category, and I want to help you see your goals become reality. So in that spirit, I thought I’d share a few strategies and tools for success this year. 1) Have you really articulated your goal? Is it “be in better shape” or is it “lose 30 pounds”? A degree of specificity is a must, because you’ll need an objective against which you can measure your efforts. 2) Have you gotten excited about your goal? Have you imagined the outcome? Don’t be ashamed to really visualize yourself enjoying the spoils of your hard work. Imagine yourself sharing your success story with pride. 3) Share your goals! Don’t keep your dreams in the closet where no one can see them. Public declaration not only helps you find third-party support from friends and family, but putting them out there makes them harder to abandon when motivation flags. 4) Don’t give in to “all or none” thinking. When you slip, lose focus, or encounter setbacks, don’t use them as license to give up. It will feel worse to crawl back after a blow-out than it will to forgive yourself and pick up where you left off. Accept that progress matters more than perfection. 5) Leverage apps and other technology to help you make progress. Automatic reminders, social networks, and other goal-specific tools can help. (Check out this article on “5 Apps for Keeping New Year’s Resolutions: http://mashable.com/2012/12/27/apps-new-years-resolutions/) So what are your goals? Comment below! No time like the present to make your dreams public. (Of course, if one of your goals is to buy or sell a home, I’d be happy to play a big part in helping you reach that objective! Contact me today: Becca Linnig RE/MAX REALTOR(480) 570-8845, bhotaz@hotmail.com

Top 5 tax breaks for homeowners

Top 5 tax breaks for homeowners

Prohibiting fees for the placement of for sale or rent signs

An owner’s right to sell real estate is a property right, and exercising that right requires marketing and signs. In the past, homeowners associations (HOAs) have tried to limit owners from marketing their property with signs on their lawn or even in their own window.

In 2007, the law governing HOAs was changed so that they may not prohibit the indoor or outdoor display of a for sale sign by a condominium unit owner or single family homeowner on their own property. In 2010 the Arizona Association of REALTORS® fought for and successfully modified statute to prevent an HOA from prohibiting or regulating temporary open house signs, a unit owner’s or owner’s agent’s for sale or lease sign and open house hours for property that is available for sale or lease.

It was recently brought to AAR's attention that some HOAs are attempting an illegal requirement that in order to use signs in certain condominium and planned communities by unscrupulously charging a fee for the use or placement of the indoor or outdoor signs. Some examples of such practice include HOAs that prohibit the use of sign installation from any other company than their “preferred vendor” which can cost upwards of $75 for the installation.

As a result of the continued efforts by HOAs to skirt current law as well as their continued creativity in finding ways to charge fees to homeowners as it pertains to for rent and sale signs, AAR has asked two Representatives to run language that would strengthen current law and penalize those associations that violate the law. HB 2609 (homeowners' associations; signs; political; leasing) sponsored by Representative Barton passed out of the House last week with a vote of 36 ayes, 21 nays and 3 no votes. The bill has been transmitted to the Senate and assigned to the Senate Government Reform Committee. The other is HB 2717 (homeowners' associations; penalties; attorney fees) sponsored by Representative Carter. This bill was amended on the House floor on last Thursday to add language pertaining to this issue.

The language in both bills would do the following:

·Prohibit an HOA from charging a fee for the use or placement of the indoor or outdoor display of for rent, sale or lease signs and sign riders, in any combination, displayed by a property owner on their property.

·States that an HOA or managing agent that violates specific statutes governing the use of indoor or outdoor signs by a property owner on their property forfeits and extinguishes the lien rights authorized by statue against that unit or property for a period of six consecutive months from the date of the violation.

Where to Put your Investment Dollars: Real Estate as an Investment

Investors have many choices in today’s market as to where to place their investment dollars. Many choose the stock market, in part because it is the easiest place to get started as an investor. However, those wanting to build significant wealth over the long term should consider real estate. Aside from the fact that over time, as populations tend to increase, land values should naturally increase, investing in real estate has many strategic advantages not available with other investments. Some of those strategic advantages include:

Income and Appreciation
It is very possible in today’s market to find properties that will be cash flow positive. This means that the rents collected from the tenants will more than cover the costs (expenses and financing) associated with owning the property. Few stocks in today’s market pay significant dividends, most are held for future appreciation. Those stocks or bonds that are acquired for cash flow tend not to appreciate well. With real estate, investors can have the best of both worlds: income and appreciation.

Leveraged Appreciation
The basic idea of leverage is that an investor can acquire a very high valued asset for a much lower investment amount. This works in the investors favor in an appreciating market, magnifying the returns on investment. For example, an investor may purchase a million dollar property with 30% down. If that property appreciates 10%, the return on investment is 33%. In the same example, with 10% down, the investor can achieve a 100% return on investment.

Although not impossible, it can be difficult to use leverage when investing in the stock market. Using leverage to acquire stocks is referred to as “buying on margin” and at best investors may only borrow 50% of the purchase price of the stock. Investors who choose to buy on margin are also subject to margin calls (adding more funds to the brokerage account) should the value of the stock decline significantly. The Federal Reserve Board also regulates which stocks are marginable, so options may be limited.

Tax Advantages
Although Wall Street can offer investors tax advantaged vehicles like the tax free municipal bond or the ability to buy and sell stocks through an IRA or 401K, the tax advantages Wall Street can offer pale in comparison to what is available with real estate. With real estate, there are tax advantages available while both owning and selling real estate. Let’s first discuss the advantages available during the course of real estate ownership:

Mortgage Interest Expense
The government allows all of the interest associated with the financing of the property to be written off as an expense of owning the property. For many real estate investors, especially those with interest only loans, this expense deduction can be substantial.

Depreciation
Depreciation is a method for matching the costs of acquiring property over the properties estimated economic life. The IRS now requires that most properties be depreciated using the straight-line method of depreciation (27.5 years for residential properties, 39 years for commercial properties). Depreciation will act as an intangible expense and will shelter income from taxes.

Expense Deductions
Many of the costs associated with owning and managing a real estate investment, such as management fees and insurance premiums, are deductible. One deductible expense worthy of note is the travel expense. Many real estate investors acquire real estate in places they like to (or have to) visit, and each time they travel to the property, the travel costs are a deductible expense. Not a bad deal if the property happens to be in Maui, or around the corner from a relative.

Passive Losses
Due to depreciation and expense deductions, it is possible to own a property that is producing positive cash flow, but for tax purposes showing a loss. These “passive losses” are subject to certain restrictions, but in many circumstances can be used to offset passive income from another investment.

There are also specific tax breaks available when selling real estate. The tax breaks available depend on the type of real estate sold. If a primary residence is sold, Section 121 of the Internal Revenue Code allows the seller to avoid paying capital gains taxes. If an investment property is sold, Section 1031 of the Internal Revenue Code allows the seller to defer the payment of capital gains taxes. Both sections of the tax code merit further discussion:

Section 121
Upon the sale of a primary residence a taxpayer can avoid paying capital gains taxes on the first $250K of gain if single, or the first $500K of gain if married. The seller(s) must have owned and lived in the home as their primary residence for two out of the past five years.

Section 1031
Upon the sale of an investment property a taxpayer can defer the payment of capital gains taxes. In order for the entire tax liability to be deferred, the taxpayer will need to reinvest all of the sale proceeds and purchase a property of equal or greater value. The new property must be acquired within 180 days.

Many investors can use both Section 121 and Section 1031 together for maximum tax advantage. An example would be an investor who conducts a 1031 Exchange into a rental home. After establishing the property as a rental for two years, the investor moves into the property. Once the property is established as a primary residence, taxes can be avoided on the sale via Section 121.

Obviously investors have many choices available to them on Wall Street. With a little education however, many investors might find that investing in Main Street, or Elm Street, might be a better long term decision.

The Six Worst Items To Appear On Your Credit Report

It’s easy to make mistakes or experience hardship when it comes to paying your bills. Some mistakes are so detrimental; want to avoid them at all cost. Since future creditors and lenders use your credit report to make decisions about you, it’s important to understand how each of these impact your credit file.
1. Charge-offs
Missing your payments for 6 months or more could cause your creditors to deem your account as uncollectible. When this happens, the creditors write that debt off as a loss against their income taxes. Charged-off accounts are allowed to be reported on your credit report for seven years. Just because a debt is charged off (or written off) does not mean the debt is forgiven. The money is still owed. The creditor will usually sell or assign the debt to a collection agency or a lawyer to effect collection.
Some companies continue to charge interest, but most don’t. If they do decide to keep charging interest, they have to continue to report it as income. Most companies would rather just write it off and be done with it.
Having charge offs on your credit report usually results in the consumer being denied credit by other lenders. Even worse, it can also affect the interest rate that other lenders charge on current debts even if those lenders were not impacted by the charge off themselves.
If you find yourself late on your payments, you should always try to contact the lender and let them know you are having problems meeting your financial obligations. Ignoring the situation and letting it get to charge off status always makes it worse. You can usually avoid your account being charged off by at least letting them know you intend to pay and by at least making small payments as often as you can.
It’s much easier to get a paid charge off removed from your credit report than it is an unpaid charge off. When you dispute the charge off with the credit bureaus, they have 30 days to verify the account with the creditor. If the account is paid, many times the creditor will just ignore the verification request. They really only report charge off so that they can damage your credit hoping that it will turn make you want to pay them off.
2. Collections
Not only will creditors charge-off your account after a period of non-payment, they may also hire a third-party debt collector to attempt to collect payment from you. Your credit report may or may not be updated to reflect a collection status. Sometimes the debt collector places an entry on your credit report or the original creditor places a note on your report indicating the account is in collection status.
3. Bankruptcy
Filing bankruptcy allows you to legally remove liability for some or all of your debts, depending on the type of bankruptcy you file. Your credit report will reflect each of the accounts you included in your bankruptcy. Even though the bankruptcy information can legally remain on your credit report for seven to 10 years, you can begin rebuilding your credit soon after your debts have been discharged.
4. Foreclosure
If you default on your mortgage loan, your lender will repossess your home and auction it off to recover the amount of the mortgage. This process is known as foreclosure. When your home is foreclosed it can severely damage your credit, limiting your ability to obtain new credit in the future. A foreclosure can remain on your credit report for seven years.
5. Tax liens
When you don’t pay property taxes on your home or another piece of property, the government can seize the property and auction it off for the unpaid taxes. Even if your home is foreclosed because of a tax lien, you are still responsible for the mortgage loan. Non-payment of the mortgage will also hurt your credit. Unpaid tax liens can remain on your credit report for 15 years, while paid tax liens remain for 10 years.
6. Lawsuits or judgments
Some creditors may take you to court and sue you for a debt, if other collections fail. If the lawsuit is accurate and a judgment is entered against you, it can remain on your credit report for 7 years from the date of filing, even after you satisfy the judgment.