- 616-887-7307 ext 1823
- 616-887-7307 ext 1823
- 194 South State Street
Sparta, MI 49345
THE HOME BUYING PLAN OF ACTION
What a Real Estate Buyer Representative is...
and Why You Should Use One
What is a Real Estate Buyer’s Representative?
A buyer representative represents the consumer who is purchasing the property in the real estate transaction, not the seller. State laws vary, but usually, a buyer representative owes full fiduciary duties, including loyalty, to the real estate buyer. The buyer representative works for the buyer client and has the client’s best interests in mind through the entire real estate transaction.
The representative is compensated by the buyer through a negotiated fee or in some states the commission is split between the buyer’s and seller’s agents based on the selling price of the real estate property. It is important for the consumer to discuss the buyer representative’s compensation in the initial interview. In many cases it is recommended that the consumer and buyer agent agree to the terms of compensation prior to viewing real estate properties and sign a written agreement based on these terms. This agreement should spell out the responsibilities of both parties throughout the real estate transaction. It is important to note that in some states legislation has been enacted to protect the buyer so that where there is no written agreement, the agent will be presumed to be representing the buyer throughout the real estate transaction. Consult with your local REALTOR® form complete details when you first start the search for purchasing any real estate property.
Why Should I Use One?
As a consumer, how often do you buy real estate property? One, twice, three times in your lifetime? Purchasing real estate is a complex and major transaction with many details to be handled. In the majority of cases the seller will be represented. Wouldn’t you want to have complete and fair representation in the real estate transaction?
Real estate buyer’s representatives are responsible for protecting their clients’ best interests. Research by the NATIONAL ASSOCIATION OF REALTORS® has shown that when a buyer’s representative was used, the prospective buyer found his home one week faster and examined three more properties than those consumers who did not use a buyer’s representative.
Tax Tips…for Buyers
Tax Benefits for Buyers
- Some of your costs at the time of closing can be taken as deductions on that year’s income tax return. They include any prepaid mortgage interest and property taxes (consult your closing statement).
- Points paid at the time of closing represent additional mortgage interest and may be taken as a deduction.
- Many of your other closing costs are simply added to your cost basis for the property, so that when you sell, they will reduce the amount of capital gain you may have. Under current law you do not owe tax on capital gain up to $500,000 that is received as a result of the sale of a home in which you have resided for two of the previous five years. Make sure to keep all your records, however, including those for permanent improvements, which will also be added to your cost basis. You never know when Congress will change the law in the future and these records may save you considerable money in tax owed.
- On each year’s income tax return, you may deduct all property taxes paid on any real estate you own.
- You are also entitled to claim as deductions all mortgage interest paid on a first and second home. Your deduction is limited to interest on up to a million dollars borrowed to buy or improve your property, and interest on an additional hundred thousand dollars in equity loans or second mortgages. If your borrowing exceeds that amount, consult an accountant and an estate planner.
Moving and Income Tax
Many of your moving expenses qualify as income tax deductions, if your move is closely related to a job transfer or a new job at least 50 miles further from your old home than the old one was. Also eligible are members of the armed forces with a permanent change of station.
You may deduct for only a single one-way trip, the move itself. Expenses that qualify are:
- Packing, crating and transporting household goods and personal effects for your entire household.
Mileage for use of you own car in moving goods, yourself or members of your household (or alternatively, actual gas and oil expenses)
Tolls and parking fees paid during the trip.
Storing and insuring household goods and personal effects for 30 days
Shipping of cars or pets; and
Transportation and lodging (but not meals) for yourself and members of your household while traveling to the new home.
Welcome to my Website
My main objective is providing my clients with the best possible customer service in order to make every transaction as smooth and stress free as possible for everyone involved.
Listing and selling residential and vacant land covering West Michigan and beyond.
To insure that every real estate transaction for which I am involved in has a successful outcome.
Fifteen years of listing and selling real estate.
Member of the Grand Rapids Association of Realtors.
I enjoy spending time with my family and friends. In the summer I spend my off time gardening, camping, fishing, boating and golfing. In the winter I keep active by cutting wood and ice fishing.
Graduated from Kenowa Hills High School.
State of Michigan Realtors license.
For the past 10 years I have been active in helping with a MS fundraiser which is put on by a local resident and business.
I was born in Comstock Park, Mi. and now reside in Kent City, Mi.
I am the proud father of one son.