A “Perfect” House

There is not now, nor will there ever be, a “perfect” house.   

It might be the "perfect" location, the "perfect" curb appeal, the "perfect" layout and the "perfect" yard... but all homes have flaws.

It is what it is. Especially in this Minnesota climate of drastic weather, homes have flaws and develop flaws.  Your new construction home will probably start "showing it's age" before you even move in.  Homes need maintenance. Some maintenance is cosmetic, some may be structural.  It needs to be evaluated as part of the cost of homeownership.

If you are buying a home, it is very important to exercise your right to a home inspection. See the included "For Your Protection, Get a Home Inspection" and take it seriously.  Hire a qualified inspector, show up for the inspection, ask questions, review the report thoroughly and ask more questions if necessary.  Every report will have a laundry list of flaws and/or problems.  It's up to you to make the final decision how they affect the value of the home.

With all that imperfection looming, can you still love the house you buy? Can you still find the "perfect" home for you? Absolutely!  Just be sure you are searching with your heart and evaluating with your head.

Ready to start your home search?  Visit www.CallSarahFirst.com
Or download the free home search app:  app.callsarahfirst.com CODE: KW1Z62GIH

Want to read more about home inspections, C.L.U.E. reports, what to get tested and even where to find out if someone died in a home?  I have tons of great info right here in my blogs! I can even help you through the MAJOR considerations in choosing your next home!

(Remember, I don't endorse any of these services nor do I get paid to promote them or am I responsible for the info they provide and of course I can't give legal advice...blah, blah, blah. I'm a MN licensed real estate sales person.)

Are you rational or irrational?

Why it’s Easy to Be Overly Optimistic

The seller’s optimism is sometimes at the heart of overpricing.

In his book Stumbling on Happiness, Harvard psychologist Daniel Gilbert explains the many ways in which irrational optimism affects our predictions. The mind seems immune to realities that are deemed too harsh or undesirable.

To achieve a happy expectation, people select information or interpret information that will produce positive feelings. Gilbert’s research shows that most people possess a relatively low tolerance for uncertainty, but will accept ambiguity when it serves to create a wanted rosy scenario. Most sellers want to think about the future in somewhat glowing terms.

That’s why they tend to overestimate the best-case scenario of what their property will fetch.

Now you know. Stop being irrational. Price your house right!

Watch the TEDtalk .

Could You Benefit from a Section 1031 Exchange?

Who Can Benefit from Section 1031 Exchange? 

The simple answer is Real Estate Investors.

To accomplish a Section 1031 exchange, there must be an exchange of properties. The simplest type of Section 1031 exchange is a simultaneous swap of one property for another. Deferred exchanges are more complex but allow flexibility. They allow you to dispose of property and subsequently acquire one or more other like-kind replacement properties.

Both properties must be held for use in a trade or business or for investment. Property used primarily for personal use, like a primary residence or a second home or vacation home, does not qualify for like-kind exchange treatment.

Both properties must be similar enough to qualify as "like-kind." Like-kind property is property of the same nature, character or class. Quality or grade does not matter. Most real estate will be like-kind to other real estate. For example, real property that is improved with a residential rental house is like-kind to vacant land. One exception for real estate is that property within the United States is not like-kind to property outside of the United States. Also, improvements that are conveyed without land are not of like kind to land.

Gain is deferred, but not forgiven, in a like-kind exchange. You must calculate and keep track of your basis in the new property you acquired in the exchange. When the replacement property is ultimately sold (not as part of another exchange), the original deferred gain, plus any additional gain realized since the purchase of the replacement property, is subject to tax.

Get your 2014 Like-Kind Exchanges Tax form 8824. Please visit IRS.gov for more information on Section 1031.

Nope, I'm not a tax professional or financial planner. Please do not consider this legal advice either.