Real Estate Information

Today is the day that everyone dreads.  We have an audit with the IRS.  As I worked for several weeks to get my data in order I discovered that I could have done a much better job of record keeping.  It's such a simple task and as a result it doesn't get the priority that it should.  Some of the sources for backup data that you may be counting on either no longer exist or can be difficult to get a hold of.  Trying to get 3 year old bank statements from a bank that I no longer do business with is difficult.  Financial institutions change or upgrade software from time to time and may no longer have back records. 

The lesson that I have learned is to get my business recording in order and keep it that way.  In the long run it will save time and stress.

Happy Record Keeping.

John Graham

For owners who can on longer afford to keep mortgage payments current, there are alternatives to bankruptcy or foreclosure proceedings. One of these options is called a Short Sale.

When lenders agree to do a short sale it means the lender is accepting less than the total amount due. Not all lenders will accept short sales or discounted payoffs, especially if it would make more sense to foreclose; moreover, not all sellers or properties qualify for short sales.

If you are considering buying a short sale, there could be drawbacks. For your protection we suggest that you obtain legal advice from a competent real estate lawyer and call a CPA to discuss short sale ramifications.

Except for certain conditions pursuant to the Mortgage Forgiveness Debt Relief Act of 2007 be aware that the IRS could consider debt forgiveness as income, and there is no guarantee that a lender who accepts a short sale will not legally pursue a borrower for the difference between the amount owed and the amount paid.

Most importantly, work with a Realtor that is experienced in Short Sale transactions and can help guide you through this process.

FOXTAILS:

Foxtails are a type of sticker prevalent in the spring and summer season. Foxtails range from 1/2" to 3" in length, and are very sharp at one end then branch into wispy tails at the other. Foxtails have the ability to burrow under the skin and migrate to different areas of the body. Foxtails commonly invade the pets's ears causing discomfort and shaking or tilting of the head. Foxtails can penetrate the skin of the feet causing painful abscesses to form. When a foxtail enters the nose, severe sneezing can occur, often accompanied by a bloody discharge. Basic precautions include checking your pet's feet, ears and hair after outdoor activities. When foxtails are suspected, your pet's veterinarian may need to use anesthetics and special surgical instruments to remove them.

This summer be sure to watch for any swelling, drainage, limping, violent sneezing or head shaking which may be an indication of foxtails intrusions.

This information is courtesy of Community Animal Hospital in Reno, NV.

Somersett in NorthWest Reno will hold their first Farmer's Market of this year on Wednesday June 10th.

This is a terrific fun event for the whole family, support our Nevada Certified Farmers and buy fresh, buy local!

Local artists and craft vendors also attend this event and have many unique items that you can't buy in the stores. Enjoy weekly food specials by Roundabout Bistro and drink specials from Whispering Vine. Live music for the kids and adults to dance to and don't forget to enter the grand prize drawing.

This event will run every Wednesday from 4pm-8pm June10th-August 26th in Somersett's Town Square.

Come & Join the fun!

This week mortgage rates hit 25-week high.  Conventional mortgages reached their highest rates year to date.  According to Freddie Mac the 30-year fixed rate mortgage hit a 25-week high of 5.29 percent during the week ended June 4, up from 4.91 percent the prior week. As recently as two months ago, rates had been 4.78 percent. 
The 15-year fixed rate also increased, rising to 4.79 percent from 4.53 percent.  The five-year adjustable mortgage rate climbed to 4.85 percent from 4.82 percent, and the one-year ARM surged to 4.81 percent from 4.69 percent.

Are rates on the way back up?

We have never seen this type of weather pattern in all the years that we have been in Reno.  It looks like the thunderstorms are going to continue for several more days.  WOW.  The good news is that I haven't run my sprinkler system in over a week and the Truckee River flow looks really good.  Hopefully, some of the water is making its way into the reservoirs and underground wells too.

I'm often asked if this is a good time to buy a home. Some clients are concerned that home prices may fall further than they have already. They are assuming that the best course of action is to wait for the bottom in the market and then buy. The problem with this approach is that you don't know where the bottom is until you see it in the rear view mirror, meaning until you've missed it!

Home prices are one factor in determining your cost of ownership, but so are interest rates and financing availability. Even though interest rates have gone up in the last six months, they are still near historic lows. Since your monthly mortgage payment is a combination of paying down your principal and paying the interest owed, if home prices come down a little further but interest rates go up, it could cost you even more to service a mortgage on an identical home!

While a home is a major investment, it is also the center of your personal life. It's important to live in a home that reflects your taste and values, yet is within your financial "comfort zone." To that end, it may be more important to lock in today's relatively low interest rates and low home prices, rather than to hope for a further break in prices in the future.

Please give me a call if I can be of any assistance in determining how much home you can afford in today's market.