Dear Mary,

In today's market, price is the major driving force. The public has a large inventory to pick and choose from. Today's market is a "Buyer's market," and will remain this way for at least another 3-4 years, as we are in a 5 year cycle now. I know you are tired of the doom and gloom of the media, but consider this. When you move, are you planning to buy or rent? If you are planning to buy, are you prepared to carry two mortgages? Or if you are planning to rent, can you afford to pay a mortgage and monthly rental payment? Can you carry two sets of home expenses; taxes, utilities, payments, upkeep (lawn etc.), and such? Remember, renting doesn't get the tax benefits that home ownership does. Will you be digging yourself deeper in a hole? Why not reduce the price of your home? Again, price is the major key.

If you have owned your home for less than two years and did a 100% mortgage, then you will be in trouble and may be required to bring money to the table. Renting your home out is an option, but you would have the expenses to consider. Also, if your mortgage is high, you may have to take a negative cash flow because people will not rent if the payment is too high.

You said the company you used is strong in your area. Are they strong on internet marketing? According to the National Association of REALTORS, 90% of all home searches begin on the internet. I personally advertise on 40 plus internet sites for my listings. In the Williamsburg, Virginia and surrounding areas, the average time on market for a home is 6 to 9 months. I also place all of my listings on 4 MLS systems and in REALTOR.com. Advertising in print does not help to sell your home.

A national or international company, such as RE/MAX, with a sign in your yard is your best bet.

Another tip is to go and look at your competition (other listings in your neighborhood) and compare them to your house. It is important to have an objective point of view, don't look at it as your house, it is a home.

Now more than ever, curb appeal is very important. Call me or email me if you have further questions.

Remember, price is your driving factor and you may have to bring money to the table to dig your way out.

Dear Heather,

I know that you are not alone in your assumptions. Many homeowners believe they can list their own home and save money on commission. They do not realize how much is involved in a real estate transaction. Not only is selling a home time consuming, but consultation and coordination with professionals at every level is necessary. There are many legal loopholes that leave you vulnerable as a seller. You need the expertise of a Realtor to help you avoid these issues. Also, A staggering 80% of home sales are done through a Multiple Listing Service. Realtors have access to this. Sellers may have as much as several thousand members depending on the area or residence. An MLS listing is the most effective way to bring in qualified potential buyers. Please remember, attendance at a seminar or reading information online does not make you an expert on home selling. For additional information, please visit my website to read my article entitled "Debunking the Myth of More Net Gain with For Sale by Owner".

Dear Iris,

Don't worry; there are some programs which are in place to help people in your situation. One option is a program where you can use alternative trade lines to prove credit, such as cell phone bills, utility bills, etc. The lender that I use, Sam Poole of Breakwater Mortgage could tell you a little more about this type of program. Sam could also help you set up such a program. You will need three total positive trade lines. Other sources could include secure credit cards or car payments on a car loan. If you choose a credit card or car payment as your trade line, be careful. You will have to make all of your payments on time. Don't max out your credit card and be sure to keep a balance of 1/3 or less. Also, be sure to ask if the credit card/car payments are reported to the three major credit reporting organizations. Contact me for more information at (757) 564-1557 if you have any further questions.

Dear Lilly,

An agent in my office came across an interesting new limited service brokerage scenario recently. The agent was a listing agent on a property.

The agent received a call from a couple who wanted to see the house that was listed. The agent showed the home. The agent asked the important question are you working with another agent. The couple answered yes and told the agent that their agent could not be present to show. So the agent doing "due diligence" for the sellers, showed the home.

The agent received another call from the same couple wanting to see the home again. They told the agent that their agent could not show them the home this time either.

At this point in the story, the agent told me about the second showing that the agent could not be present for, I told the agent that they need to ask questions and stop all conversations that they were having with the interested buyers. As they could be perceived as "talking behind the sign" (talking to another agent's client). Even though the couple called the agent, the agent was going to call the couple to get feed back and see the level of interest.

I counseled the agent that this could be perceived as "dual agency".

Another concern was the agent could have weaken her seller's position by maybe in small talk with the potential buyers given information that they could use to their advantage. Another question I asked the agent is why the buyer's agent could never be there for showings? Who would write the contract? Who would do the home inspection; the other agent needs to be present? Can the other agent do business in the state of Virginia?

What came out was the other agent work for an online limited brokerage firm. So the listing agent was in a sense doing both sides of the transaction and the commission was going as a referral fee to an out of state firm. This leaves the buyer with no representation on the transaction. This could open a whole chapter of negative fall out.

Buyers and Sellers beware of limited brokerage firms and whose interest they protect. It seems like the only protection is the limited service firm's.

Thanks for Asking,

Folks,

I am so sorry to hear about your misfortune. There are good companies in the business. I do have a lender that you can talk to help you get your credit straight and to be able to purchase a home again. I will post this on the ask Elaine and my blog. Call me or my office to get the name and number of Sam. Also I would contact the FCC about this company, your local state senator. The FCC is the main one you need to contact. Also talk with a lawyer or legal counselor.

Thanks for sharing,

Dear Joyce,

Thanks for asking. As for research do the following points:

1. Talk to the tenants and find out who they pay the rent to each month, then go and talk to that person or company ask them if the owner is will to sell. If not see item #3 on this list and find the owner and write the owner a letter expressing your desire to buy the property and how you qualify to pay for the property.
2. Call the City housing authority and find out if there are grants to apply for to help with the cost of rehabbing - a lot of times there are. You may have to write a business plan or proposal in order to get the grant. Go to your local business college or school and ask for help to do this. It can't hurt.
3. Go to city hall where they real estate tax records and titles to real estate properties are kept. Look up the records for this property and you will find all owners and what the taxes are and the history of the property and the price each time it was sold.
4. I would also call the city code and compliance department and see if the building is up to code. This may prompt the city to investigate the property which in turn will put heat on the owner so they may want to sell.
5. Make a budget for your self. Are you a contractor? Are you doing most the work your self? If not you will have to have a large cash budget to draw from to do the rehab. If not, this be a money pit for you. You should have a inspector or contractor check the property over before you buy it and tell you what needs to be done to the property and have some estimates in hand.
6. As for tax purposes, any improvements can be used as a tax write off. You will need a CPA to do the taxes because of the rent issues - they can answer you questions on taxes.

Good Luck,

Dear Donna,

The deed restrictions are recorded witht he deed at the courthouse. If this is the case then yes they do indeed convey. That si how it works in Virginia. I would contact the courthouse in the city or county and have someone help you look up the ded in the deed book to see. The information is public and you may look up any deed.

Thanks for Asking,

Sue,

Thank you for the nice words about my web site. Now to your question.

You would get more "bang for you buck" here in Williamsburg. If you went to my web site under articles i had one published about retirement in this area. Their are a several articles on retirement, as I have an SRES designation.

About rentals.......again read the several articles I have written on property management and investment in rentals ( not all property managers are created equal....and you are very lucky to have had a good one in the D.C. area.....be careful of the extra add on expenses that a lot of property managers charge, this is covered in my articles)..

In the Williamsburg area, most builders and HOA's have place a cap on rentals, condos and townhomes. Too many investors were buying and renting and this was deflating property values. If their is a cap on the subdivision that someone wants to buy a property and rent it, then they may go on a waiting list. The quota of rentals is 10% of the total ownership of the subdivision.

The good news is detached homes have fewer renters in them. And if you choose to purchase a detached home you would not run into a cap in 98% of the time.

If you have any more questions, please email me or call me and I will be glad to help you. And if you have the time read the articles on my web site. My articles are published all over the internet by all kinds of sites (mortgages, single parent magazine, none re/max agents, investment groups, etc.) I hope this has helped answer your question.

Thanks for Asking,

Dear Joni,

I have a mortgage lender that is licensed in three states. They are a local lender here in Hampton Roads. They can help you finance raw land in Virginia. Contact Breakwater Mortgage, and ask for:

Dan Wood at (757)817-5840

Or

Kevin Onizuk at 1-877-45-BREAK

Thank you,

Dear Charmaine,

Thanks for visiting my website and "Ask Elaine". I contacted both my CPA who is a retired IRS agent as well as my Attorney. Both of my authorities said that if you have owned the timeshare for more than one year and you make a profit when you sell it, you will pay 15% Capital Gains on the profit of the sale. The profit margin being if the sale price is different (higher) than the purchase price. If you have owned it for less than a year, are taxed at a 28% Capital Gains rate. I would suggest that you ask your attorney or CPA for verification.

Thank you,

Dear Vicki,

REALTORS can sell time shares. And some REALTORS do that here in the Williamsburg area, but I am not one of them. Call around and you will find one of the Real estate companies who do resell time shares. Or call me and I will tell you one.

But, on another note to sell time shares, most of the times share sells associates are not license due to the fact in Virginia time share sales persons do not have to be licensed.

Time share sales persons do not have the training that REALTORS are required to have by state and federal guidelines. REALTOS are required to have ongoing training to renew their license every two years.

I wish you luck in the sell of your time share.

Dear Diana,

Your situation is very different from what I have talked about before. Your fiancé should have waited to close after the 2 year window. There are a few acceptations 1. Being multiple births 2. Relocation due to his job situation. Other than that he will have to pay capital gains.

My next question to you is you going to put him on your deed when you get marry? He will have to be on your deed to get the tax credit and it will only be for the amount of profit in your home. Say your profit margin is $300,000; the both of you could not take the $250,000. You would divide it in half or one person takes the $250,000 credit and the other person take what is left of the profit. This also depends on how you will file your taxes.

I do not know of any way you can get around him not living there for 2 years, newly married could be one, but again I think he has to be place on the deed. Check with you CPA or tax lawyer. You can even call the info line of the IRS.

Dear Natalie,

I understand what you are saying. Yes you are holding the mortgage. So you are doing owners financing. I do not think I made myself clear to you.

1. What was the original sales price that YOU paid for this property?
2. Subtract the current sales price that you are selling the property for, what you originally paid for it (if it was a gift or you inherited it then it will be price the market price at that time). This will give you what the taxes will be based on for capital gains.
3. You still would fall in the 45 day window of having a contract on another property that is at least the price of the profit you are getting for your property.
4. By owner financing I do not know what that would entail with this transaction till I call my CPA and ask him.

Does this make it clearer for you?

Good luck...

Dear Natalie,

Again I am not a tax advisor or accountant. MY question to you is, "What was the original sales price you paid for the property?" Say you paid $300,000 and you sold it for $1,000,000j, you would owe taxes on $700,000. The capital gains are about 50%, you would owe the profit to the state/federal tax people. When you make large profits in investment you need to do a 1091 tax exchange. You do not notify anyone. You have a lawyer hold the proceeds of the sale (the profit) in an escrow account and you have 45 days to procure a contract on a property. Read my articles I have written to real estate investment. The articles are all on my web site.

I do not know how owner financing would play in this scenario. I would call the state bar association of your state and ask them to recommend a good tax consultant. I do not know of any in your area. I use a retired IRS agent to do my taxes, so I keep out of trouble.

Good luck...

Dear Natalie,

You will own capital gains on the profit of what you purchased the land for. If in fact you have used all the profit for the investment purchase of $600,000 in real estate, then you should be alright. The one question I would ask is did you identify the investment property in the 45 day window that you had from the day you closed on the sale of the $1,000,000 property? If not then you will probably owe capital gains on the profit of the sale of the $1,000,000 property. Check with an accountant or tax advisor.

Thanks for asking,

Dear Manley,

That is for owner occupied only that you are talking about. The sentence you refer to is for investment property that the owner has identified as a non-owner occupied property when the property was purchased. Always check with your accountant as laws constantly change.

Dear Dolores,

Brickshire, which is in New Kent County currently has 3 schools. A High School, Middle School and a Primary School. Due to the New Community that was passed on a 3 to 2 vote the Farms At New Kent should start in 2 years as soon as the infra structure is in place. Due to the upscale community of Brickshire and the Farms New Kent will be adding 3 more new schools (purposed) and a new library. Public School Office number is 804-966-9650.

The county SAT scores are:

• Verbal: 501
• Math: 502
• Total: 1003

Average total expenditure per student is $6,602. Students Attending College 75%. The scores are higher than most of the Tidewater/Hampton Roads area with the exception of York, Poquoson, James City/Williamsburg and West Point.

In answer to your question New Kent has some very good schools.

New Kent Primary School
11705 New Kent Hwy
New Kent, VA 23124
(804) 966-9663

Principal: Fred Balmer - FBalmer@nkcps.k12.va.us
Asst. Principal: Lynn Sodat - LSodat@nkcps.k12.va.us  

New Kent Middle School
11825 New Kent Hwy
New Kent, VA 23124
(804) 966-9655

Principal: Howard Ormond - HOrmond@nkcps.k12.va.us
Asst. Principal: John Moncrief - JMoncrief@nkcps.k12.va.us

New Kent High School
7501 Egypt Road
New Kent, VA 23124
(804) 966-9671

Principal: Yvonne Jones - YJones@nkcps.k12.va.us
Asst. Principal: David Ditzler - DDitzler@nkcps.k12.va.us
Asst. Principal: Scott Bray - SBray@nkcps.k12.va.us

Thank You for writing to "Ask Elaine",

Dear Kevin,

I belong to four MLS systems that cover the Tidewater and Hampton Roads area. If you would like I will place you and the criteria that you instruct me to use for your home search to be placed in 1 or more MLS Systems so you will receive within 24 hours of the posting all new listings that fit your criteria. The 1st time you will receive all the listings within the areas you are interested in. After that they will be in real time as to when they post on the MLS systems. Are you interested in this feature? It is of no cost and you are under no obligation.

Thanks for Asking,

Dear Hoang,

The 3 reason a property does not sell is location, price or condition of home.

1. Does the walls need painting
2. Are to floors in good shape, carpets not worn or dirty, title or vinyl not cracked or torn, wood floors polished not scarred up.
3. How are you advertising the property? Home books? Newspaper ad? Web sites? MLS? Are you using an agent? Exposure is important.
4. I do not know what market you are in. Here the market is taking a curve to adjust. Instead of 30% to 40% increase in equity a year you will see 5% to 13% a year (which is the normal growth rate it should be at)…..read my article on my web site, "Up, Up and Away in my Real Estate Balloon".
5. In my area the curve is not having a seller's market now, but it will adjust to an equal sellers/buyers market. This has homes selling in 30 to 90 days instead of 1 hour to 1 week as it was before. It is still early to panic on the 2 week mark.
6. What is your house number and what is your selling price? You need to do numerology on this aspect as well. See my article on my web site about this subject.

If you still have questions please, feel free to call me at my office 757-564-1558 or 757-288-4685 on my cell.

Best Regards,

Dear Bruce,

Start by making sure that the home you are purchasing has a layer of sand under it and a plastic moisture barrier. The plastic should have a few very small holes in it, in order to allow the plastic to breathe. A good termite and moisture company or contractor can do this if you choose not to do it yourself. Another recommendation of mine is to keep bushes, shrubs and other plants trimmed at least 5 inches from the house as well as to have a 6-inch buffer of pea-gravel between the house and any mulch or landscaping areas. This is vital to keep moisture away from the house. Drains and gutters are very important to divert moisture from your home. The black plastic drain extenders that go on the end of the gutter spouts are a great idea.. There is no reason to be nervous. If you have any electric or plumbing work to be done, it is a lot easier to do it in a crawlspace than if the house is on a slab. The base of your home is all about personal preference, there is really no right choice.

Dear Angela,

The most important thing is choosing the right lender and getting pre-approved before you start your search. I use and recommend a mortgage broker. A mortgage broker is not an hourly employee and works on commission only. Therefore, they work very hard to find the right loan to fit your needs. A mortgage broker also works with a multitude of lenders. The broker I use works with 75 lenders, including some of the major players in the mortgage market. After you choose your lender, then interview several realtors to find a realtor you feel comfortable with and that you feel is motivated to help in the search for your new home. If you have any more questions, please feel free to contact me at the office.

Happy house hunting,

Dear Jason,

If you are purchasing a home and the home is 10 years old or older I would suggest a home warranty. In fact, a lot of my first time home buyers are people relocating to the area who I give home warranties as a closing gift. If you are listing a home and the home has any age on it, or if you are in a competitive marker and you know you will be getting multiple offers where people will not ask for a home inspections, then by all means offer a home warranty. A home warranty will also cover the home from the time you list it from the time you close it and it will be passed on to the buyer. The coverage period is one year after purchase of the home warranty and you may also extend your coverage every year. Some home warranties I feel are better than others. I use 2-10 which covers the roof, unlike most home warranties. Home warranties range in price depending on how many options you have. A home warranty will rarely cost you over $400. Where else can you get this kind of insurance for such a bargain price? Thank you for you question Jason, if you need a more detailed response please feel free to call me.

Dear George,

I will let my loan officer, Dan Wood of Breakwater Mortgage answer this question.

Having a house payment can be inconvenient, but a mortgage of any kind is a good tax shelter as the interest on the mortgage is a tax deduction. It depends on if you need this tax write off or if you don't. There are a lot of new programs out there, such as adjustable rates and interest only. Fixed mortgages are becoming a thing of the past. Feel free to call me so we can go over your unique situation.

Dan Wood of Breakwater Mortgage