Real Estate Information Archive

Blog

Displaying blog entries 21-30 of 45

Avoiding Loan Scams

by Jon Smith, CRB, CRS, GRI

One of the major things you will need to do if you are purchasing a new home, is to obtain a home loan. Unfortunately with the difficult economy and the availablity of loans more difficult, loan scams are on the rise. People with bad credit and the elderly are the most vulenderable and often targeted. Below are some tips to help you from being a victim.


Avoid Being A Victim

  • Avoid Unsolicited phone calls. Be wary of any phone call offering remarkably low interest rates on loans, especially if you have registered your phone number with the Do Not Call Registry. Most major nationwide lenders do not solicit business over the phone. Never give out personal information over the phone unless you are absolutely sure who you are speaking with.
  • Don't agree to anything with a too-high interest rate
  • Don't buy insurance from a lender without shopping around first.
  • Watch the terms for reinforcing. They might end up worse than what you've got now.
  • Don't sign anything that's been given to you as a surprise! If the terms aren't what you'd agreed on, do not sign the document.
  • Avoid bad credit mortgage rates when looking for a loan.
  • Many loan scammers use high pressure sales tactics, so if you feel pressured or uncomfortable in anyway, never sign anything. It is a good idea to contact a real estate lawyer if in doubt to review the documents. If the company is legit, they should have no objection to a lawyer looking over the loan agreements before you will sign them.

Warning Signs

  • Do business with reputable companies, stay away from unsolicited calls, e-mails or letters offering you a loan.
  • Never do business with anyone who asks for money to be sent in advance to cover "processing", "application", "insurance", or the "first month's payment". Legitimate lenders never ask for these things to be paid before a loan is disbursed.
  • Requests that you "wire" or "send" money, as soon as possible to a large U.S. city or to another country, such as Canada, England, or Nigeria, by Western Union, Moneygram, or similar means.

What To Do If You Think You Have Been Scammed?

If you feel that you have been scammed or the company you have been in touch with is suspicious, contact the below agencies.

  • The FTC
  • The FBI
  • File fraud alerts with each of the three credit bureaus. This is important if you have provided the scammers with your sensitive information, such as your Social Security Number and information on your driver's license. They can use this to obtain credit in your name.

Reverse Mortgages

by Jon Smith, CRB, CRS, GRI

Reverse mortgages are becoming more popular as a alternative for senior citizens who are homeowners. A reverse mortgage provides a way for seniors to borrow against the equity in their home with no repayment due until the homeowner dies, moves or sells. Any remaining equity after repayment goes to the borrower or the estate.  

 If you are considering a reverse mortgage, it may be of benefit if:

•You need cash assets or income and have no other source available.
•You are unable or unwilling to sell your house.
•You do not care what the costs are to get the income or assets you need. (Recent law has helped limit the outrageous costs of reverse mortgages.)
•You have no concern about which assets are left to your heirs.
Make sure you thoroughly scrutinize all costs and provisions.

The amount of money you can borrow depends on your age, the current interest rate, and the appraised value of your home or FHA's mortgage limits for your area, whichever is less. Generally, the more valuable your home is, the older you are, the lower the interest, the more you can borrow. You can use this online calculator on the AARP website to get an idea of what you may be able to borrow.

There are some cost involved, many of the same costs that someone pays to obtain a home purchase loan, or to refinance their existing mortgage, apply to reverse mortgages too. You can expect to be charged an origination fee, up-front mortgage insurance premium (for the FHA Home Equity Conversion Mortgage or HECM), an appraisal fee, and certain other standard closing costs.In most cases, these fees and costs are capped and may be financed as part of the reverse mortgage. If a reverse mortgage sounds like it might be a solution for your situation, visit this website to locate a lender in your area.

Snow Removal Options

by Jon Smith, CRB, CRS, GRI

Winter is in full swing in the Des Moines area and with the recent storms, snow removal is a necessity. Waking up to a driveway buried in snow is not always a welcome sight--especially on days that you need to be to work on time! Whether you want to remove the snow yourself or you would rather pay for the service, you have some different options to clear the snow from around your home and get on your way.

 Snow Blowers

Also called snow throwers, these come in both gas and electric. If you don't have too long a driveway, electric snow blowers provide an alternative to heavy, high-maintenance gas snow blowers. While they are sometimes less powerful, they typically require less maintenance. Gas snowblowers will have a wider clearing width and you don't have to worry about the cord but they are more expensive and require more maintenance such as tuning and yearly checkups.

Professional Snow Removal Services

If you prefer to just hire a professional to clear the snow for you, commercial snow removal companies are the way to go. Snow removal cost can vary greatly, some companies will offer a lump sum seasonal rate for businesses or residential. Others will charge on a each time basis which can range from $35 to $100. The downside can be a long wait if you are not a regular customer and a big storm hits. It is important to make sure the person you hire is experienced and insured. Visit the Snow and Ice management association's website to find a qualified company near you.

Lawnmower/Tractor Attachments

If you have a long driveway and have a riding lawn mower or lawn tractor, you may want to invest in a blade attachment or snow blower attachment for snow removal.  These attachments fastens to the front of the mower and throws snow or plows to the front or side. For longer and wider driveways, a snow plow attached to the front of the mower can quickly remove large amounts of snow. You can also purchase tire chains to help prevent the mower's wheels from spinning in their tracks.

 Shovels

Some homeowners prefer to use the tried and true traditional snow shovels and moves the snow themselves. It is important however to consider your physical condition. If you have a heart condition or other health issues, you should proceed with caution. Snow is heavy and shoveling is hard work - you don't want to risk a serious injury or jeopardize your health. On the positive side, it is a great way to burn calories and it doesn't cost you a thing! 

 

 

Deductions For Homeowners

by Jon Smith, CRB, CRS, GRI

With the new year also comes tax time, and homeowners may be able to deduct many home-related expenses. Keep in mind these tax breaks are available for any type of home whether it be a mobile home, single-family residence, townhouse or condominium.


Deducting Loan Points Paid on a Purchase or Refinance
The points you pay on a loan for a
home purchase are tax-deductible for the year you made the purchase. You can deduct the points you paid as well as those a seller paid on your behalf if you meet the following criteria:

  •   The loan is secured by your primary residence
  •   The loan was used to buy, improve or build the home
  •   Paying points is a common practice in your geographic area
  •   The points are calculated as a percentage of the loan principal

First-time home buyer credit.  A $7,500 tax credit is available to eligible taxpayers must have bought, buy, or enter into a binding contract to buy, a principal residence on or before April 30, 2010 and close on the home by June 30, 2010. For qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 return. and before July 1, 2009.  You are considered a first-time home buyer as long as you did not own a home during the three years leading up to the purchase of your new home.

Moving expenses. If a move is connected with taking a new job that is at least 50 miles farther from your old home than your old job was, you can deduct travel and lodging expenses for you and your family and the cost of moving your household goods. 

Deducting Real Estate Taxes. Real estate taxes are deductible in the year paid. They are generally reported on Form 1098, Mortgage Interest Statement, the annual statement from the financial institution holding your mortgage, or on your county real estate tax assessment statement. You should also deduct any prorated taxes collected from you at closing. These amounts are not always included on Form 1098, but may be itemized on your real estate closing statement.

Make sure you’re not missing out on important home-related tax deductions. Everyone has a different situation and you may actually qualify for other deductions you were not aware of, so always check with your tax advisor to find out which deductions apply to you.

Do You Have Hard Water?

by Jon Smith, CRB, CRS, GRI

You may have heard the term 'hard water' but many homeowners do not understand exactly what it is and even if they have this problem. According to the U.S. Geologic Survey, 85 percent of the homes in the United States have hard water.  While hard water is not considered to be unhealthy for people to drink, it can be damaging to household plumbing, water-using appliances and it can make it difficult to clean. Below are the basics of hard water, how to tell if you have it and what can be done about it.

 
What Is Hard Water?

Hard water contains calcium and magnesium and while this is quite natural, excessive amounts create what is commonly referred to as hard water. Hard water is not considered a serious health risk but people who are more prone to rashes and skin problems can have problems because it changes the skin’s pH and soap remains on the skin, clogging pores.

Ways To Tell If You Have Hard Water

The best way to tell whether water is hard or soft is the soapy factor. Soap and toothpaste do not lather up as quickly in hard water as it clogs skin pores and coats hair. The minerals in hard water can affect the ability of soap to clean kitchen and bath surfaces, dishware and laundry. Most homes have hard water problems without necessarily knowing about it.

Hard Water Solutions

If you suspect you have hard water, call a professional to test your water and recommend soft water solutions. The most common solution is to use a water softeners or water treatment systems. While many systems use salt, there are several water softeners available that have a salt free system. However if you are concerned about the presence of sodium ions in their water, use of sodium ions does not make the water noticeably salty or cause a significant increase in a person’s sodium intake. In fact, the FDA defines water that would result from softening 75 gpg hard water (where much more sodium ions would have to be exchanged that is typically the case) as a “low sodium” beverage.

There are many affordable solutions available for both purchase and for rent. If you are interested in a system for purchase, a typical household water softener costs around $1,000 to $1,500 with a monthly operating expense of around $2 to $8 if sodium is used. Many companies offer systems for rent with monthly costs ranging from $25-$85 depending on the model. Be sure to look for the WQA Gold Seal to find products that have been successfully tested to industry performance standards.

Des Moines Named #1 Most Livable Market

by Jon Smith, CRB, CRS, GRI

Des Moines was just named #1 in the 2009 MSN Real Estate Most-Livable Bargain Markets! According to their report, Des Moines may be one of the best and most overlooked places to jump-start your career.  They also rate the economy of our area as solid, with a large number of well-paying jobs in the insurance, bioscience and agribusiness fields. Yet the median house costs just $150,000. Forbes has ranked it one of the best places for business and careers three years running.

The report also notes that the Des Moines area has some of the cleanest air in the country. The residents reported that there’s enough outdoor recreation, culture and fine art to keep most people happy.  According to Lauren Burt of the Greater Des Moines Partnership “There’s so many things that are accessible here,”  “There’s a lot of volunteerism and ways to be engaged with the community.”

MSN Real Estate asked Bert Sperling of Sperling’s Best Places to evaluate the most affordable housing markets from the 100 largest U.S. metro areas and pinpoint 10 of the most livable areas: places where unemployment is low, commute times are mercifully short and there are enough interesting entertainment and cultural amenities to keep most people busy and satisfied. Congratulation Des Moines for making #1 on this list!

New Law Offers Credits For Homebuyers

by Jon Smith, CRB, CRS, GRI

Initially scheduled to expire on December 1, 2009, the first time home buyer tax credit will now be extended to May 1, 2010. An addition to the extension, the new law also features some significant changes to this new tax credit that should allow many more home buyers to qualify for it.  Below are some new elements of the extension:

  • Credit available for purchases before May 1, 2010. Prospective purchasers with binding contracts in place as of April 30, 2010 will be allowed an additional 60 days to complete the transaction.
  • Credit remains at $8000 for first-time purchasers. 
  • New $6500 tax credit for repeat buyers who purchase between December 1, 2009 and May 1, 2010. The buyers must have lived in their homes consecutively for 5 of the previous 8 years.
  • Income limits are expanded to $125,000 on a single return and $225,000 on a joint return. 

Homebuyers who purchased a home in 2008 or 2009 may be able to take advantage of the first-time homebuyer credit. The credit applies only to homes used as a taxpayer's principal residence. This reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar and is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

For more information on how to file for this credit or for frequently answered questions, visit the IRS website.  

 

Local Sculpture Adds New Views

by Jon Smith, CRB, CRS, GRI

In an area of Des Moines that once was full of old and decaying buildings and closed up storefronts now boasts a sculpture park with works by Willem de Kooning, Louise Bourgeois and Sol Lewitt, among others.

According to an article in the New York Times, the park which is part of a redevelopment project started back in 1991. It will be named for John and Mary Pappajohn, a Des Moines venture capitalist and his wife, who have given the 24 sculptures — valued at some $40 million — to the community through the Des Moines Art Center. The enterprise is a collaboration among the Pappajohns, other private donors, the city and the center, a contemporary-art museum west of downtown.

Community leaders raised $6.5 million to create the park and finance an endowment for security and upkeep. Diana Agrest and Mario Gandelsonas, architects based in New York, designed an undulating lawn with grassy mounds and crescent-shaped cutaways to display sculptures by artistic style.

Admission to the park is free and is open from 6 a.m. to midnight. The park has  has around-the-clock security, including foot patrols, cameras, motion sensors and speakers. The John and Mary Pappajohn Sculpture Park is located between Locust Street and Grand Avenue, 13th and 15th Streets. For more information please call 515-277-4405 or click here to visit the website.

Iowa Property Taxes

by Jon Smith, CRB, CRS, GRI

The Iowa Department of Revenue issued its annual assessment limitations, or rollback, order today for property values. No adjustments were ordered for the commercial, industrial, railroad and utility property classes because their assessed values did not increase enough to qualify for reductions, the department said. The total assessed value of residential properties was calculated at $132.4 billion with a taxable value of $62.1 billion, or 46.9094 percent of the assessed value. By comparison, the 2008 residential rollback was 45.5893 percent of the assessed value. Agricultural property, which is assessed at its productivity value, had a 2009 assessed value of $38 billion; the taxable value is $25.2 billion, which is 66.2715 percent of the assessed value. State law permits no more than a 4 percent annual increase in taxable value for agricultural, residential, commercial and industrial properties. County auditors will apply the adjustments to each property class to compute the taxable values used for property taxes.

Halloween Events In Des Moines

by Jon Smith, CRB, CRS, GRI

Pumpkins, candy and costumes..Halloween is here! If you are looking for some spooky fun, the Des Moines area has several events for everyone. Have a safe and fun holiday!

Living History Farms

Horse-drawn wagon rides, marshmallow roast, storytellers, scarecrow and jack-o-lantern displays delight all during this non-scary family event. Children ages 12 and younger can trick-or-treat in the 1875 Town of Walnut Hill. Free pop and popcorn for everyone. Cost is $5 nonmembers, $4.50 members. For more information click here.

The Sleepy Hollow Haunted Scream Park

The Sleepy Hollow Haunted Scream Park is a way for young and old to get scared this halloween. There are a variety of scares, from the gruesome and gory to the startles and screams, our Haunted Village has something for everyone.  This year, there is are newly redesigned  haunted attractions, bringing all new scares and terrifying, mesmerizing, pantswetting, runawayscreaming fright to one of the biggest haunted attractions in the Midwest!  For the younger and more easily frightened, there aer many attractions available. The Haunted Scream Park has food vendors offering everything from corn dogs,  hot chocolate, and warm cider to buffalo burgers, brats, and pizza.  Plus all the food vendors have a free activity for your group to play.  There is also a free inflatable obstacle course where you can challenge a friend to see who can get through it the fastest.

October 9-10, 16-17, 22-25, 29-31.  7 PM nightly.

Pumpkin Decorating Workshop

Learn a little about the pumpkin's interesting history while decorating one of these scary squashes for Halloween. Each participant will get to decorate and take a pumpkin home with them.

Reiman Gardens, 1407 University Boulevard, Ames, IA 50011
(515) 294-2710

The Haunted Barn

What is better than a haunted barn at Halloween? If you dare, visit The Haunted Barn which opens Oct. 23rd. Located at  4516 N.E. 78th Avenue
Bondurant, IA 50035. This new haunted house in the Ankeny area is hosted in a big barn just a couple miles east of Ankeny.  Open from 7pm-12am. Free Parking.

Displaying blog entries 21-30 of 45

Share This Page

Contact Information

Photo of Jon Smith, CRB, CRS, SRES, SFR Real Estate
Jon Smith, CRB, CRS, SRES, SFR
Iowa Realty
3521 Beaver Ave.
Des Moines IA 50310
515-240-2692
Fax: 515-453-6404
 

 

 

Licensed in the State of Iowa