The U.S. Housing Market is in an Unusual State.
The U.S. housing market is facing unusual times. Mortgage rates are at their highest levels in years, precluding some buyers from entering the market. At the same time, the nationwide supply of houses remains tight. If you’re contemplating a move in the midst of these unusual market dynamics, here are five steps that can help you navigate the process.
Seek professional help
A top priority is to have a good handle on your current financial situation. This means having a clear idea of the value of your home and how selling it would fit into your financial plan. To help gain a holistic perspective, sit down with a financial advisor to discuss your current financial situation and concerns for participating in today’s market. Additionally, you may want to consult a real estate professional. Finding an agent through a referral from somebody you trust is a
(Financial cont’d from pg 1) good way to identify a qualified agent. Don’t be afraid to interview multiple agents to find the right fit.
Determine the worth of your home
Local market conditions, based on the balance between housing supply and buyer demand, have the biggest impact on home values. Explore pricing on real estate websites, consider obtaining a formal appraisal, or discuss the matter with your real estate agent to help determine your home’s realistic value. Consider whether you can expect to sell the home for more than you owe on an existing mortgage if there is one.
Estimate the cost of selling your home
The sale price of the home does not reflect your ultimate net proceeds. There are costs associated with the process. These include realtors’ fees, typically amounting to 5%-6% of the sale price. Closing costs, which typically include a home inspection, appraisal fees and title insurance will eat up another 1% to 3%. If you need to make repairs to the home at some point in the process, that’s an additional cost. Finally, you may need to negotiate the
price or provide other concessions to the buyer to close the deal. Keeping these costs in mind will help you attain a clear picture of the proceeds you can expect from selling your home.
Determine the tax implications
Capital gains taxes may apply on your home sale. This is often not an issue if the house you sell was your primary residence for two of the past five years and your net gain was $250,000 or less (single person) or $500,000 or less (married couple filing a joint return). Other tax considerations come into play if you sell for a loss, did not use the home as a primary residence, or the home is a rental property. Check with your tax advisor.
Be patient While sellers still have an edge over buyers in many markets across the U.S., the overall process of selling your home still requires patience. Persistence is necessary to find the right buyer and to be in a position to accept an offer that is comfortable for you.
Your home may represent a significant part of your net worth. It’s important to consider how any planned sale impacts your overall fi-
nancial plan. A financial advisor can help you understand how selling your home affects your long-term goals and financial aspirations.
Duane J Lusson, CFP, ChFC, CLU, MSFS, is a Private Wealth Advisor with Ameriprise Financial Services, Inc. in Ottumwa, Iowa. He specializes in feebased financial planning and asset management strategies and has been in practice for 30 years. To contact him, call 641684-4200 or stop by his office at 527 W. Second in Ottumwa, Iowa.
Ameriprise Financial cannot guarantee future financial results
Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation.
Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value.
Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser.
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Brownies
The topic has been debated since shortly after the discovery of chocolate; should brownies and chocolate chip cookies have nuts or no nuts? I think they should have nuts – but walnuts, pecans, or almonds? Today, let’s focus on brownies.
I haven’t met many people who do not like brownies, and there is a good reason for this: brownies represent love, friendship, happiness, and unity. I’ve never known anyone to become angry while eating a brownie. But, just as there are various kinds of love, friendship, happiness, and unity, there are many kinds of brownies, too.
All brownies come from one of three sources; store-bought, a brownie mix, or made from scratch.
Store-bought is the lowest on the brownie totem pole. Before upsetting any bakers who sell brownies in their local shop, I should clarify: if you make your brownies from scratch or a quality mix, yours are like homemade brownies made in someone else’s kitchen. The lowest form of brownies I’m talking about are made in big commercial kitchens or factories by machines and robots. They are sprinkled with rainbow glitter, individually wrapped, and packaged in a box labeled “cosmic brownies.”
Ick. These brownies are grossly sweet, have the texture of a wet brick, and are just icky! But, for many years, our daughter Annie thought Cosmic Brownies were the bomb, proving everything is loved by someone. (I shouldn’t be so judgmental.) Brownie mixes are usually much better than store-bought.
Duncan Hines and Betty Crocker offer a good brownie mix - especially the dark fudge chocolate variety. Still, you must add your own walnuts to make them extra delicious. Some people will shy away from brownies because they’re gluten intolerant or choose a gluten-free diet. Come back to the brownie buffet, my gluten-free friends!
My aunt Di eats glutenfree, but she is not willing to compromise her palate over gluten. She has books full of delicious recipes sensitive to the gluten-free diner. Di will customize recipes to make food that is both delicious and gluten-free.
(Read the whole story at ottumwapost.com)
False Spring
Lately, we have been having some weird weather. During the fall, it will normally get cold and turns warm for a few days. This is called Indian summer. During January, we will normally have what is called a January thaw when we get a short break from the brutally cold weather and the temperatures we stay above freezing for a few days. The weather we have been having recently is anything but normal. I have decided to classify it as False Spring. There have been several days with temperatures in the high 70’s which would make a person think spring might be here a month early. On a pleasant spring-like day, the temperature might and has dropped fifty degrees. It is confusing to man and beast.
Large numbers of geese have been migrating. On these warm mornings, they appear to be heading north. On that same day, when winter has returned, they are heading back south again. For the first time ever, we had a flock of geese stop by our lake. Usually, we only hear them flying high overheard on their annual migration. This year, I think they had second thoughts about making the long trip all the way to their northern nesting grounds. They know it is too early to be in their summer area and decided to stop for a few days to see what the weather was going to do.
I heard a confused Tom turkey this morning. It is warm and sunny, so he thought spring is here. He stood on top of the hill strutting and gobbling as if it were April. I think he was wasting his time and energy as the lady friends in the area were not impressed. They know it is too early to be making a nest and sitting in the cold.
My syrup making project has also come to a halt due to the unseasonably warm weather. Normal temperatures for February and the first part of March should be near twenty at night and around forty during the day. This causes the sap to flow in maple and black walnut trees. I was collecting sap and making black walnut syrup until the temperatures warmed up. A few nights of above freezing shuts off sap flow like a faucet. A few days of below freezing temperatures did not restart the flow in most of the trees. One tree produced almost two gallons of sap. The other twenty-four trees together
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(Outdoors cont’d from pg 6) made almost a quart. I boiled my last sap collection and declared syrup season finished. My wife and I had a pleasant ride through the woods as we pulled all the taps.
I am not going to complain about having a couple of weeks of false spring as each day of warm weather means one less day of winter. We have already accomplished several spring chores that normally would not be done until the warm days of April or even May. The asparagus patch is ready for when it starts to grow, the rock is raked back into the driveway after being pushed into the lawn with the snow, and sticks are picked up out of the yard, so we will have fresh sticks to pick up before we mow. The bluebird houses are cleaned and ready for their return. We also burned a section of timber to clear rose bushes and dead fallen branches. Burning through a hardwood timber does not hurt the live trees but clears out the underbrush making it easier for wildlife to find food and promotes healthy growth of young trees.
We have taken full advantage of our false spring. It is nice to be outside enjoying the fresh air and nature. We are well aware of the fact that it is indeed “false spring” as winter is bound to return.
