Janie's Blog Clarksville,TN Real Estate Marketing Expert

I've had the opportunity of working with Wes Stamey at Crye-Leike, Realtors here in Clarksville, TN for almost a year now, and it is with pleasure that I introduce you to him as a new member of our wonderful Active Rain community.  Wes is a great guy and an excellent agent.  Please welcome him as I know only AR can! 

 Just to let everyone know in case you have not heard the IRS announced an increase in the optional standard mileage rates for the final six months of 2008. We may use the optional standard rates to calculate the deductible costs of operating an automobile for business, charitable, medical or moving purposes.  I for one and glad to see this, we've been getting some good increases the past couple of years and it does make a difference when you spend as much time on the road as we do.

The rate will increase to 58.5 cents a mile for all business miles driven from July 1, 2008, through Dec. 31, 2008. This is an increase of eight (8) cents from the 50.5 cent rate in effect for the first six months of 2008,

The increase is due to the rising gas prices. The optional business standard mileage rate is used to compute the deductible costs of operating an automobile for business use in lieu of tracking actual costs. This rate is also used as a benchmark by the federal government and many businesses to reimburse their employees for mileage.

The new six-month rate for computing deductible medical or moving expenses will also increase by eight (8) cents to 27 cents a mile, up from 19 cents for the first six months of 2008. The rate for providing services for charitable organizations is set by statute, not the IRS, and remains at 14 cents a mile.

We will also have the option of calculating the actual costs of using our vehicles rather than using the standard mileage rates.

Mileage Rate Changes

FIRST. Do you know what ANWR is?

ANWR = Arctic National Wildlife Refuge.

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Now. A comparison




And some perspective.



NOTE WHERE THE PROPOSED DEVELOPMENT AREA IS.
(it's in the "ANWR Coastal Plain")



THIS IS WHAT THE  "GREENS" SHOW YOU WHEN THEY TALK ABOUT ANWR
.and they are right. these ARE photographs of ANWR



ISN'T ANWR BEAUTIFUL? WHY SHOULD WE DRILL HERE (AND DESTROY) THIS BEAUTIFUL PLACE?
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WELL. THAT'S NOT EXACTLY THE TRUTH


Do you remember the map?

The map showed that the proposed drilling area is in the ANWR Coastal Plain

Do those photographs look like a coastal plain to you?


WHAT'S GOING ON HERE?
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THE ANSWER IS SIMPLE.

THAT IS NOT WHERE THEY ARE WANTING TO DRILL!

THIS IS WHAT THE PROPOSED EXPLORATION AREA ACTUALLY LOOKS LIKE IN THE WINTER


AND THIS IS WHAT IT ACTUALLY LOOKS LIKE IN THE SUMMER



HERE ARE A COUPLE SCREEN SHOTS FROM GOOGLE EARTH





AS YOU CAN SEE, THE AREA WHERE THEY ARE TALKING ABOUT DRILLING IS A BARREN WASTELAND.




OH. AND THEY SAY THAT THEY ARE CONCERNED ABOUT THE EFFECT ON THE LOCAL WILDLIFE.

HERE IS A PHOTO (SHOT DURING THE SUMMER) OF THE
"DEPLETED WILDLIFE" SITUATION CREATED BY DRILLING AROUND PRUDHOE BAY*.
DON'T YOU THINK THAT THE CARIBOU REALLY HATE THAT DRILLING?



HERE'S THAT SAME SPOT DURING THE WINTER.


HEY, THIS BEAR SEEMS TO REALLY HATE THE PIPELINE NEAR PRUDHOE BAY*.

*The Prudhoe bay area accounts for 17% of U.S. domestic oil production

Tips for Moving

Whether you have moved once or a dozen times, it never seems to get any easier. Here are some hints that I hope you will find helpful as you prepare for moving day. 

• Make agreements with buyers about possession of the home and moving date. Having sellers and buyers meet on the front walk - each with a house full of furniture - is not a happy situation.
• Start planning early. Once you are confident that you will be proceeding with the sale, start weeding out your current possessions. Toss (or give away, sell at a yard sale, or on-line) things that you don't want to move. Remember GoodWill and don't forget to get your receipt for tax purposes.
• Make a list on any important items you will need to buy for your new house. Examples: draperies, blinds, shower curtains, etc. Having these things with you on the day you move in prevents unnecessary surprises. One of the most important for me is cabinet shelf paper.  Take plenty!
• Start packing early. Anything that you are sure you will not be using before moving day should get boxed.
• Mark every box and carton. Again, it makes it much easier if you need an item before you move, and makes it much simpler after you move. Unpacking will probably be somewhat of a gradual process--this way you know where the most necessary items are located.  Don't pack any of the documents for the sale or purchase of the home, if you are the buyer, don't pack anything that the Lender might need,,,,,,check stubs, tax returns, bank statements.

Closing

In the old days, everyone dressed up for the Closing on the sale or purchase of their new home.  Not the case now, most people just come in ready to sign!  Of course the buyer is going to be signing alot more documents than the Seller, so in many instances, the Seller signs first and then the Buyer.  Closing in Clarksville, TN is a very easy process on most transactions, we have some great title companies and attorneys that we work with.

Closing -- or "settlement" or "escrow" -- is essentially a meeting where the closing agent (the party who conducts settlement) takes in money from the buyers, pays out money to the owner and makes sure that the purchaser's title is properly recorded in local records along with any mortgage liens. All papers have been prepared by closing agents, title companies, lenders and lawyers. This paperwork reflects the sale agreement and allows all parties to the transaction to verify their interests. For instance, buyers get the title to the property, lenders have their loans recorded in the public records and state governments collect their transfer taxes.

The closing agent reviews the sale agreement to determine what payments and credits the owner should receive and what amounts are due from the buyer. The closing agent also assures that certain transaction costs are paid (taxes, title searches, hazard insurance, etc) 

Closing is also the time when "adjustments" will be made. For instance, suppose you've pre-paid taxes four months in advance. In this case, the closing agent will compensate you for the prepayment at closing by having the buyer pay you additional money.

It could also work in reverse. If you are behind on property taxes, the closing agent will reduce the money due to you at settlement by the amount of the unpaid taxes.

And most importantly, Closing is when you get the keys to your new home.  Call me if you have any questions about the Closing Process.

Home Inspections, a vital key to Purchasing a Home.

Your home is in escrow, and the buyer has scheduled a home inspection. A home inspection is a thorough visual examination of the home and property. The process usually takes two to three hours, during which time the house is examined from the ground up. The inspection includes observation and, when appropriate, operation of the plumbing, heating, air conditioning, electrical, and appliance systems, as well as structural components: roof, foundation, basement, exterior and interior walls, chimney, doors, and windows.

It's important to remember that a home inspection does not detect every conceivable flaw. It is an inspection of those areas and items that can be seen. Home inspectors cannot see through foundations, floors or walls, and cannot inspect areas or items that are inaccessible.  It is also important to note that the Realtor is not responsible for the work of the Home Inspector.  The Home Inspector is hired by the Buyer!

If you are planning to put your house on the market a pre-sale inspection enables you to attend to problems ahead of time, it also removes any questions about the condition of your home for you and a potential home buyer.  Buyers are positively influenced by a professionally produced home inspection report, which improves the speed, price, and likelihood of a sale.  I recommend a pre-sale inspection to all of my clients here in Clarksville, TN

Some home sellers elect not to correct every defect reflected in the inspection report. Instead, they acknowledge the defects to buyers and explain that the asking price has been adjusted to reflect the estimated cost of repairs. Such candor tends to shorten negotiation time because buyers have fewer objections that could thwart a sale. In addition to facilitating the sale of a home, an inspection helps the homeowner comply with full-disclosure real estate laws, governed by state laws. By focusing on the condition of your property, you are less likely to overlook a defect or material fact for which you later could be held liable.

Qualified inspection companies will provide a sample report to substantiate that they abide by industry standards. One of the key standards is that ethical inspectors neither perform repairs nor refer clients to repair companies (thus avoiding a conflict of interest). Obviously, inspectors who make repairs on homes they inspect are more likely to "find" problems.

Once you have arranged for a home inspection, plan to accompany the inspector for the entire procedure. You have the right to be there, and leading home inspection companies will encourage your presence. It helps you to better understand the findings in the report, and will reduce post-closing hassles. Don't forget your list of questions and items of concern. A thorough home inspection covers more than 1,000 items, everything from the foundation to roof and takes two to three hours depending on the size of the property. The report should reflect the condition of about 400 items.

Financing by the Seller

If a seller helps to finance a real estate transaction by taking back a second note or even financing the entire purchase if the seller owns the home free and clear it is called seller financing. Usually sellers do this when a buyer has difficulty qualifying for a conventional loan or meeting the purchase price.  We don't have as much seller financing today in Clarksville, TN as we did a few years ago due to the mortgage crisis.  Their is just too much risk for Sellers.

Seller financing differs from a traditional loan because the seller does not give the buyer cash to complete the purchase, as does a lender. Instead, it involves extending a credit against the purchase price of the home while the buyer executes a promissory note and trust deed in the seller's favor. These special circumstances must be acceptable to the lender who makes the first mortgage on the property.

The necessary paperwork is prepared by the title or escrow company after the terms are worked out between the buyer and seller. If you are a seller considering such an arrangement, it is critical to thoroughly evaluate the creditworthiness of the buyer first. You should consult with legal counsel and your accountant regarding the potential consequences of this type of arrangement. Fear of default makes many sellers reluctant to take back a second. But seller financing can bring a higher price plus complete the sale sooner in some situations. For more information, contact the Internal Revenue Service for a copy of its Publication 537, "Installment Sales." Order by calling (800) TAX-FORM.

Seller financing offers tax breaks for sellers and alternative financing for buyers who can't qualify for conventional loans. If you are a seller, the risks you face are the same as those facing any lender: Is the borrower a good credit risk? Will the property hold enough value over time to allow for the repayment of all loans made against it? You should run a full credit check on the borrower, require hazard insurance on the property and include a due-on-sale clause. There also are financing, disclosure and repayment-term requirements that need to be met. Again, it is wise to consult a lawyer when putting together this kind of transaction.

The interest rate on an owner-carried loan is negotiable. Talk to me about checking with a lender or mortgage broker to determine the current rate on institutional first (or second) loans. Seller financing typically costs less than conventional financing because sellers don't charge loan fees (points). Interest rates on an owner-carried loan will also be influenced by current Treasury bill and certificate of deposit rates. Sellers usually aren't willing to carry a loan for a lower return than they would earn if their money was invested elsewhere.