If you’re preparing to make the transition from renter to first-time homebuyer, you’ve undoubtedly been told by wide-eyed veterans of the homebuying process, “Watch out for that PMI. PMI, as in Private Mortgage Insurance. It’s a fact of life for homebuyers who put down less than 20 percent on their homes. From the lender’s perspective, PMI is a necessary protection. For homebuyers, it’s not likely to be the deciding factor that causes financial ruin; after all, you’ve got your principal and interest, which can make your PMI look like pocket change. Nevertheless, first-time buyers often experience trepidation when they see that mortgage payment on paper for the first time, so the addition of a PMI isn’t a welcome sight.

So how exactly does PMI protect your lender? First, let it be said that PMI was designed strictly for your lender’s protection and not yours. Essentially, there’s nothing in the PMI for you. The PMI gives lenders incentive to seek out more business—to find more homebuyers like yourself, many of whom have never bought a home before and, like you, are able to put down the bare minimum 3 percent down payment. In a sense, we can all be grateful for the PMI, because without it, if you didn’t have 20 percent to put down, you wouldn’t be able to purchase a home.

A few factors to consider:
Some lenders won’t ask you to pay a PMI, so you’ll want to do some comparison shopping, investigate your alternatives and discuss your options with your Realtor. If you want to make your PMI premiums tax-deductible, find a lender who will give you the option of including your PMI within the interest rate you’ve agreed to pay for your home loan. If you opt for a conventional loan (versus FHA), such loans will often eliminate your PMI when you’ve achieved 20 percent equity. For first-time buyers, it needs to be stated that it’s going to take you many, many years to reach 20 percent equity. National trends certainly indicate that most of us will move out of our homes long before we reach that mark; five to seven years is the average. But let’s say you remain in your home long enough to reach that 20 percent equity milestone. However, your PMI won’t just go away once you achieve 20 percent equity.

Homebuyers who obtained home loans either on or after July 29, 1999, have a loophole:
They’re entitled to the immediate cancellation of their PMIs upon their achievement of 22 percent equity. Another safeguard on your side is outlined in the Homeowners’ Protection Act of 1998, which actually enables homeowners to request the cancellation of their PMIs prior to reaching 22 percent equity. Homeowners—with the exception of those with FHA loans, who are not given the opportunity to cancel their PMIs before the entire loan is paid off—may request the cancellation of their PMIs upon reach 20 percent equity.

If you remain consistent with the national trend and either move out of your home within five to seven years or refinance it, including your PMI in your loan interest rate probably makes sense from a tax perspective. One other factor to consider: If you live in a region of the country where property values are skyrocketing and show no signs of slowing down, you’re likely to reach 20 percent equity in a much shorter amount of time than in a market where property values are more slow.

The silver lining of this “necessary evil” is that it allows thousands of renters each year achieve the American Dream of homeownership.

The “ORDINANCES” or local laws enacted to control the use of a property in a given location. Many people I talk to are offended that the governing body (towns in this case) set a boundary on private citizens and impede their use and enjoyment. My answer is if zoning predates your purchase than you assumed the current standards and should know or had the right to find out what these limitations are on the property you are buying.

Most zoning regulations were enacted to protect the public and by extension protect your property value as well. Some examples of this public interest being served is no adult book stores near a school, no gas stations in a federal flood zone, no go-cart track in a residential neighbor, etc.

The affect and control of general design criteria and development can come in the following areas:
1) Permitted use/commercial, residential, industrial, agricultural
2) Lot size or density; how many condos per acre, square footage of lot for a single-family home, etc.
3) Type of structure: multi-family, trailer park, retail space, etc. 4) Building height
5) Set backs (from street, neighbor, sidewalk)
6) Style and appearance: Towns can require a landscaping plan, minimum pitch of roof, no log siding or many other things
7) Protection of natural resources; no salt sheds in a wetland area, no tree cutting to close to a stream, or no neon signs on a nationally designated scenic highway.

Alpine Lakes has been through the development process for many clients and we are happy to represent your next project. Feel free to call us for any of your real estate needs.

The market is a little slow and everyone needs a place to live, plus sellers are a little more motivated than they have been in the past few years. Some of my out of state property seller’s, have vacant homes or condos and would consider renting if it could turn into a sale.

The upside for the buyer is they have time to improve their credit rating; they can negotiate a fixed price in advance of the sale and often can accumulate some credit with the seller to be put towards their closing costs.

The seller gets a tenant who will treat the property well since they intend to buy it at the end of the lease, and may even have some improvements made to the property along the way. To alleviate the concerns of a seller in a recent lease with the option to buy deal it stipulated that the property remain on the market and if any back up offer was made the current tenant would have 5 days to match the agreement or step aside and let the third party move forward with the purchase (and vacate the property in 30 days upon notice). This agreement will allow the seller to keep looking for an immediate buyer, and motivate the tenant to complete the steps necessary to buy the property as soon as they are able. These agreements are drawn up as separate lease and sales agreements, (with each referencing the other) have security deposits, and good faith sales deposits in order to keep the contracts legal and binding on all parties to the agreements.

Looking for a creative solution; Call Alpine Lakes Real Estate for more information.

As you may have guessed my answer is it depends. Are you going to build right away are you holding for long term investment, or do you plan on flipping in less than three years?

If you can afford to pay cash than by all means do so, this will allow you to have no monthly debt and when financing a construction loan no additional money will be required to build your house. The bank will generally finance 80% of the completed projects appraised value, so if you paid $100,000.00 for the lot and you need $400,000.00 for your new home and the appraisal comes in at $500,000.00 (80%) you’ll have the $400,000.00 for the rest of the project. Also mortgage interest on raw land is not tax deductible, but once there is a structure on the property a number of tax savings are available.

The long term hold plan is much the same, since there is no write off created by the raw land and the interest can quickly double your cost of ownership this would be a pay once and hold plan.

The flip only works when the market forces make for quick gains. For example getting in on a new subdivision when the developer needs to cover road costs early on, but plans to raise prices in future phases. If, you bought at 100,000.00 financed with 20% down and paid 8% interest then sold at the end of one year for $160,000.00 you would have spent $20,000.00 (down payment) $8,000.00 (interest) and say $2,000.00 (legal & closing costs) you would have spent $30,000.00 to make $60,000.00 100% profit. Same case paying cash for the property $100,000.00 down $0 interest plus $2,000.00 closing costs spent $102,000.00 to make $60,000.00 nice return at 58%. But in 7.5 years of paying interest this would be break even at best.

Let Alpine Lakes Real Estate help you with your plans.

The funny thing is I usually get this one from people looking at second home rental property. I answer this way “ buy a duplex close to where you live” and you check the tenants rental application, you paint, clean, re-carpet between rentals, mow the lawn and chase tenants for the rent.
This answer is always met with no I mean up here at the ski resort. Well you can’t make a big profit on vacation home property rental income, it’s too seasonal. You can cover your costs if you don’t have a mortgage and still have a couple weeks of your own use every year.
The alternative is to buy for long term resale or to use later in your retirement in this case a yearly rental will eliminate the utilities that would remain in your name for the short-term rentals and give you a fixed income to count on.

In any case real estate buyers are always looking for the return on investment and this is a long term strategy especially when buying in areas that shows long term potential like Grafton County.

Feel free to contact one of Alpine Lake’s associates with any real estate related question.

Q: What is Low & Moderate Income Homeowners Property Tax Relief?
A: Chapter 158, Session Laws of 2001, enacted the property tax relief to eligible low to moderate income claimants, who own a homestead in New Hampshire.

Q: How do I qualify for relief?
A: You must own a homestead subject to the state education property tax; have resided in such homestead on April 1 of the year for which the claim for relief is made; have a total household income of (1) $20,000 or less if a single person or (2) $40,000 or less if married or head of a New Hampshire household.

Q: Do I have to pay my property taxes in order to be eligible for relief?
A: No, there is no requirement to have paid your property taxes to receive relief if you are eligible.

Q: Some of my land is held in current use, is that includible in the assessed value of the homestead?
A: No, you must exclude the portion of your property tax bill that relates to land taxed under current use.

Q: When and where do I apply for relief?
A: Completed claims, Form DP-8, shall be filed with the Department no sooner than May 1, and no later than June 30, following the due date of the final property tax bill for state education property taxes.
Mail your claim to:
NH Dept of Revenue Administration
Document Processing Division
PO Box 299
Concord, NH 03302-0299

Q: Where do I get the claim form?
A: Form DP-8, Claim for Low & Moderate Income Homeowners Property Tax Relief, may be obtained annually on or after April 15th from this web site, by visiting your local town offices, or contacting our forms line at (603) 271-2192.

Q: What information will I need to complete the c laim form?
A: You will need your final property tax bill, as defined in RSA 76:1-a, showing the “net” assessed value of your home and a copy of pages 1 & 2 of your federal tax return for each claimant and all adult members of the claimant’s household for the corresponding period.

Q: What information do you need from the tax bill?
A: You will need the map and lot number (which are printed on the property tax bill), account number if your town uses one, and the net assessed value.

Q: What do you mean by the net assessed value?
A: This means the value placed on your home after any exemptions such as elderly or blind exemptions, but not any veterans’ credit.

Q: What if there are multiple names on my tax bill or my ex-spouse is still on my tax bill?
A: You will need to supply written documentation explaining the reason(s) they are on the tax bill.

Q: What if the homestead is owned by two or more people as joint tenan ts or tenants in common and one or more of such joint owners do not principally reside at such homestead?
A: Only one claim may be filed for a single homestead. The tax relief applies to the proportionate share of the homestead value that reflects the ownership percentage of the claimant.

Q: What if an adult member of the household is not required to file a Federal tax return?
A: Check box 11(b) and enter on Line 10(c) the total adjusted gross income of all the adult members of the NH Household, as if they were required to file.

Q: Do I qualify if my homestead is held in a trust?
A: You may qualify if you hold equitable title, or the beneficial interest for life, in the homestead. If the trust is an revocable living trust, you must submit the first and last page of the trust document with your claim. If your homestead is held in an irrevocable trust, or any other trust name, you must submit the ENTIRE trust document in order to determine your eligibility.

Q: How soon will I receive a relief check?
A: The Department will notify the state treasurer to issue the check within 120 days of receiving a valid and complete claim, depending on date of receipt of any pending issues.

Q: Can my claim be rejected?
A: Yes. The Department will notify you, in writing, if your claim is rejected in whole or in part, within 90 days of the department’s receipt of the claim and all required documentation.

Q: What are my appeal rights?
A: If you disagree with the relief amount or denial you may file an appeal with the Board of Tax and Land Appeals within 30 days from the date of notice at: NH Board of Tax and Land Appeals (BTLA), Johnson Hall, 3rd Floor, 107 Pleasant Street, Concord, NH 03301-3834.

Q: What is the appeals process?
A: In order to Appeal your denial and/or your adjusted Notice of Relief, you must write to the Board of Tax and Land Appeals within 30 days from the date of the letter of denial by supplying your legal name, social security number, an explanation or description of your dispute, your position on the matter, a copy of the Notice of Adjustment or letter of denial received from the Department of Revenue Administration, a copy of your most recent deed which establishes ownership in the property and a copy of the assessment card for the property.

Q: Will I receive a form 1099 for my property tax relief?
A: No, federal form 1099’s are not required.

Q: What if I can’t find my federal tax return, can I still file a claim?
A: Yes, provided you obtain a copy from the Internal Revenue Service by calling 1-800-829-1040.

Q: Are there penalties for f alse claims?
A: Yes. The law provides for the repayment of the relief amount including interest and a penalty of 25% for the erroneous amount of such claim or an additional penalty of 25% or $1,000 whichever is greater.

Q: If I use part of my homestead fo r business use can I still be eligible for property tax relief?
A: Yes, but only on the portion of your homestead that is used as your principle place of residence and domicile for purposes of voting.
Land and buildings rented or used for commercial or industrial purposes shall not be included in the assessed value of the homestead.

Q: What if I file my claim after June 30 th , can I still be eligible?
A: The commissioner may accept complete applications filed on or before November 1, provided the claimant satisfies the commissioner that the claimant was prevented from timely filing the application due to accident, mistake or misfortune; or that the claimant or other adult member of the household requested an extension of time to file his or her federal income tax return.

Q: Where do I find the map and lot number you requested on the form?
A: The map and lot number of your property is printed on your property tax bill.

Q: My child is over 18 and lives with us while attending college, do I include his/her income?
A: Yes, income for all adult members of the household must be reported.

Q: Is social security income included in total adjusted gross income?
A: For some taxpayers it will be, and for some it will not, depending on whether social security income is included in the federal calculation of your adjusted gross income. Your tax preparer or the IRS can help you calculate your adjusted gross income. You may contact the IRS at 1-800-829-1040.

Q: Do I still have to pay my property tax bill even if I haven’t received my relief check?
A: Yes, you must pay your property tax bill by the due date, regardless of the status of your relief check.

Q: Is this a reimbursement of my taxes?
A: No, this is not a reimbursement or rebate of taxes. This relief is not taxable.

Q: Will my town have access to the information on my form and will they be notified of my relief amount?
A: No. Due to confidentiality restrictions, we cannot share this information with your town or others.

Q: I sent in my claim and then received a blank DP-8 Form in the mail, did you reject my claim?
A: No, if your claim was rejected, you would have received a letter from us explaining why.

Q: Why is my relief amount less this year than last year?
A: The calculation of your relief amount is based on many different factors that change from year to year, such as income, property value tax rate, and other criteria that may increase or decrease the relief amount from year to year.

Q: Why didn’t my relief amount increase like my property value did?
A: The law restricts the amount of property value you may receive relief on to a maximum of $100,000 using the most current equalization ratio. The results are shown on Table 3 of form DP-8.

Q: I received one of your letters requesting a copy of my deed: What is a deed and why are you asking for it?
A: The deed is the official ownership of your property that should have been filed with your County Registry of Deeds when you purchased your home. It is used to verify the ownership of your property exactly as it was recorded when you purchased it or last recorded an ownership change.

Q: Can my claim ever be audited?
A: The department is authorized to audit any claim for relief up to 3 years from the date relief was originally granted, to determine whether the claim has been granted erroneously. Any claimant who is assessed as a result of an audit has the same appeal right as previously discussed.

When people became “empty nesters” - the children are finished with college - it may be time to buy a vacation home. If you enjoyed your vacations to New Hampshire’s White Mountains, you may eventually want to retire there as well. You may find that your vacation home near the ski slops become a magnet in attracting children and grandchildren.

Baby boomers with discretionary dollars to spend, have fueled an increase in the number of vacation-home sales in recent years. In fact, the National Association of Realtors reported that a record 1 million vacation homes were sold in 2006, a 4.5% increase since 2005. While the majority of buyers, (80%) said that they bought the home to use for vacation or as a family retreat, 35% said a reason for buying was to diversify their investments, according to the Realtors’ survey. Twenty-eight percent said they planned on using the home as a primary residence in the future, and 25% said the tax benefits were a reason to buy. And 20% of buyers planned on renting out their homes.

Before cementing a decision to join the growing ranks of vacation-home owners, consider the following:
1. Is it really practical? - It’s easy to become enamored with a place while on vacation, leaping to the conclusion that owning a home in the locale would allow the entire family to more frequently enjoy this little slice of paradise. Some people figure that they’re spending a good chunk of money on vacations every year anyway so why not invest in a vacation home? The place could be rented out to recoup some of the costs - the owner must take on the role of a landlord.

2. Will it be affordable? - Some people may find it difficult to justify spending $250,000 on a property that you can use only four times a year. That’s why it’s critical for people to estimate how much they will be able to use a vacation home.

Figure in all of the expenses associated with the vacation home then add 10% as a buffer for when the unexpected happens. If you’ll have to count pennies to make mortgage payments, maybe a second home isn’t the best idea for you.

3. Consider future plans. - However, if a home buyer is considering a vacation home as an eventual retirement home, buying in advance to try out the new location is smart. If it’s a legacy the home buyer wants to create, driven by the thought that future generations will want to use it for years to come, buying also isn’t a bad idea. After all, even if the home is sold, children and grandchildren may be able to benefit from the asset.

4. Choose a location. - Before starting the actual home search, decide what the home will be used for. For example: Will it be a skiing getaway during the winter months, a Lake retreat durring the summer months or both? Also consider whether nearby recreational activities are important (i.e., Golfing, Waterslides, Skiing, etc.) or if it’s just a place for peace and solitude in the Mountains.

People spend more time at their vacation homes today than years ago. The difference is they’re not just spending it weeks at a time, instead leaving the office early on Friday and driving to the vacation home for a weekend away.

5. Do the research. - After deciding on the general location, start a home search online at www.AlpineLakes.com Our Realtors can also be of particular help in finding a vacation property because of the local knowledge on vacation home in the Grafton County areas. Our agents specializes in buying/selling second homes. Alpine Lakes Real Estate is known as a “Resort & Second Home Property Specialist.”

A “REALTOR”
Some people think that all real estate agents are “Realtors,” referring to agents generically without realizing that not every agent can legally use this title. A “REALTOR” is a real estate agent / real estate professional who is a member of the National Association of REALTORS (NAR).

Realtor Code of Ethics
When agents become REALTORS they must agree to conduct their business in a way that adheres to the NAR’s Code of Ethics. The REALTOR code covers ethical requirements that deal with all aspects of thier job, from working with consumers and fellow agents to advertising truthfully.

Multiple Listing Services
Local groups of agents that banded together to share listings more effectively are called Multiple Listing Services (MLS) for short. Most of those groups are affiliated with their state and the National Association of Realtors. Typically all MLS agents are required to become members of both groups. Agents pay dues to their state and local Realtor organizations. They also pay fees to become and maintain members of their local MLS.

Realtor Educational Requirements
All licensed agents are required to take continuing education courses annually approved by their state licensing boards. To retain membership in the NAR, Realtors are also required to take additional continuing ed classes, often focusing on ethical work habits and other consumer protection topics.

With so much information readily available online, clients sometimes ask, “Why should we hire a real estate agent?” They wonder, if they couldn’t buy or sell a home through the Internet or through regular marketing and advertising channels without the representation of a real estate agent. Some do OK, however, most don’t. So if you’ve wondered the same thing, here are some reasons why you might want to consider hiring an experienced real estate agent.

Education & Experience
You don’t need to know everything about buying and selling real estate if you hire a real estate professional who does. Why not hire a person with more education and experience? We’re all looking for more precious time in our lives, and hiring pros gives us that time.

Agents are Buffers
Agents take the spam out of your property showings and visits. If you’re a seller, your agent will filter all those phone calls that lead to nowhere from lookie-loos and try to induce serious buyers.

Neighborhood Knowledge
Agents possess intimate knowledge and know where to find the industry buzz about your neighborhood. They can identify comparable sales and hand these facts to you, in addition to pointing you in the direction where you can find more data on schools, crime and demographics. For example, you may know that a home down the street was on the market for $350,000, but an agent will know it had upgrades and sold at $285,000 after 65 days on the market and after twice falling out of escrow.

Price Guidance
Contrary to what some people believe, agents do not select prices for sellers or buyers. Selling agents will ask buyers to weigh all the data supplied to them and to agree on a price. Then based on market supply, demand and the conditions, the agent will devise a negotiation strategy.

Market Conditions Information
Real estate agents can disclose market conditions, which will govern your selling or buying process. Many factors determine how you will proceed. Data such as the average per square foot cost of similar homes, median and average sales prices, average days on market and ratios of list-to-sold prices, among other criteria, will have a huge bearing on what you ultimately decide to do.

Professional Networking
Real estate agents network with other professionals, many of whom provide services that you will need to buy or sell. Although agents hesitate to recommend a certain individual or company over another, they will let you know which vendors have a reputation for efficiency, competency and competitive pricing. Agents will give you names of references with whom they have worked and provide background information to help you make a wise selection.

Negotiation Skills & Confidentiality
Top producing agents negotiate well because, unlike most buyers and sellers, they can remove themselves from the emotional aspects of the transaction. Good agents are not messengers, delivering buyer’s offers to sellers and vice versa. They are professionals who are trained to present their client’s case in the best light and agree to hold client information confidential.

Handling Volumes of Paperwork
Some purchase and sale agreements can run 10 pages or more. One tiny mistake or omission could land you in court or cost you thousands. Thank goodness agents will handle the disclosures so you don’t have to!

Answer Questions After Closing
Even the smoothest transactions that close without complications can come back to haunt you. For example, taxing authorities that collect property tax assessments, doc stamps or transfer tax can fall months behind and mix up invoices, but one call to your agent can straighten out the confusion. Many questions can pop up that were overlooked in the excitement of closing. Experienced agents are ready to assist.

Develop Relationships for Future Business
The basis for an agent’s success and continued career in real estate is referrals. Few agents would survive if their livelihood was dependent on new business alone. This emphasis gives agents strong incentives to make sure clients are happy and satisfied. It also means that an agent who stays in the business will be there for you when you need to hire them again, years later. Many will periodically mail market updates, etc. to you to keep you informed and to stay in touch.

Why New Agents Sometimes Struggle
Think back to the last real estate agent you hired. Is your agent still in the business? Were you satisfied with your representation and the service provided? Odds are if your agent is still active in the real estate business -and you were happy with that agent -you probably had hired a real estate agent with experience.

The Benefits to Experience
An experienced agent is one whose mistakes are few. Successful agents learn something new every year; while lesser agents tend to repeat past mistakes over and over again. Top agents treat each client as though their business depends on the client’s success.

Agents who are experienced:
Offer solutions based on previous results
Anticipate problems before they occur
Enjoy solid reputations with other agents
Have practiced strong negotiation techniques
Refer time-tested vendors such as mortgage lenders, title companies, home inspectors, appraisers, general contractors, pest inspectors
Understand the complexities of changing real estate markets
Provide an analysis and market data to clients
Professionally guide clients to smooth closings

How Much Experience Should Agents Have?
Top producing agents are consistent, and this consistency comes from experience. The minimum number of transactions many brokers expect an agent to complete per year averages out to about ten (10) - almost one per month.

Here are some of the skills successful agents possess that help them to prosper in the real estate industry:
Organizational
Time management
Communication
Technology
Patience to handle conflict resolutions
Marketing expertise
Self promotion
Projection of an outgoing personality

Nearly everyone dreams of owning their own home. But can you afford a house and all of the expenses associated with it? Emotions, family and personal reasons all come into play in any home-buying decision. A home is the most expensive purchase most of us will ever make. We’ll examine the pros and cons of homeownership and show you exactly how you should calculate how much you can afford to spend on a House or a Condo.

Should you buy a House or a Condo?Owning your own home is a cornerstone of the American Dream, but there are pros and cons to it. We help you decide whether to buy a home or Condo.

How much home can you afford? Once you’ve determined if you want to own a home or Condo, we will show you how to calculate how much you can afford on your annual salary.

No one knows what the future holds for you, your family, your job or your finances. But we can help you understand what you’re going to encounter when you embark on the sometimes-difficult journey toward the American Dream of owning a home. Please feel free to call us at Alpine Lakes Real Estate for any questions.

Attorney Katherine E. Stoner is a certified family law specialist, and the co-author, with Shae Irving, of Prenuptial Agreements, states there are a lot of popular misconceptions about prenuptial agreements, so perhaps we can start out with two basic questions:
1.) What is a prenuptial agreement? 2.) How does a couple know when they need one?

A prenuptial agreement can also be called a pre-marital agreement. Sometimes the archaic Latin term “antenuptial agreement” is used, which means “before the nuptials” also meaning before the wedding. A “prenup” as it is called, is a contract between two people who are considering marriage, that sets out an agreements about finances and property.

How do you know if you should have one? Well, if don’t want the laws of your state, or any state that you might live in later, to determine what happening to your property and finances, then you might might wanta prenup. That way you and your partner are in control of your property decisions at all times - not a stranger.

Technically, prenups only go into effect if you marry, according to most state laws. People who don’t marry can sign a cohabitation agreement, or a property agreement of some sort, even if they’re not living together. You could have a combination agreement that was a cohabitation agreement and also qualified as a pre-marital agreement, or a prenuptial agreement. So, it’s possible to sign a cohabitation agreement. Technically, the laws that apply to prenuptial or pre-marital agreements usually provide that it only takes effect when the people marry, and if they don’t marry, it doesn’t have any effect.

Well, at some points the lovebirds are going to have to talk about money. Psychotherapists actually say that the things that married people argue about most are money, kids, and sex, in that order. So, our view is, why not start early having some constructive conversations about money, about your attitudes towards credit and debt.