Tip of the Week: On Including Extras

Question: When selling a home, is it a good idea to have a lot of personal items for the new buyer as frosting on the cake or do you advise selling personal items that you really don’t need?

Answer:  Frost the cake!  It’s a good idea to include as many extras as possible.  Draperies that you won’t need, shelving, porch furniture that you don’t have use for, or maybe that extra lawn mower are some examples.  Make sure the agreement spells out what goes and what does not.  Whatever you do – do not try to sell such items to the buyer.  The sale of a home is a big enough negotiation without muddying the water.

Let us know your questions so that we can include them in future Weekly Updates:  team@bockrealestate.com

Merry Christmas from The Steve Bock Team

From All Of Us to All Of Yours during the Christmas Season.  May your travels be safe and your time spent with family be merry!

Give us a call after the New Year to start looking for your dream home.  Don't be stuck out in the cold for the rest of January.  Find out more about the government tax credit and see if you qualify for it.

-The Steve Bock Team

Tip of the Week: That Beautiful Leverage

Question: What is meant by the word “leverage” when used in conjunction with investing in real estate?

Answer:  Leverage arises because ALL of the appreciation belongs to the property holder regardless of the amount of the loan.  To illustrate, assume a $100,000 property was purchased for only $10,000 cash and a $90,000 mortgage, the investor would realize, not a 5% gain, but rather a 50% gain on his initial cash investment because he only invested $10,000 for the property.  That is leverage.

Let us know your questions so that we can include them in future Weekly Updates:  team@bockrealestate.com

Topic of the Month: Home Safety :: Carbon Monoxide

In the month of December, The Steve Bock Team wants to ensure that your home is protected from the hidden hazards of owning a home.  One of those hazards is Carbon Monoxide poisoning.

• What is Carbon Monoxide?  Carbon Monoxide (CO) is an invisible, odorless gas that comes from burning fossil fuels such as gasoline, wood, coal, propane, oil and methane.  Then these fuels do not completely burn CO is produced.
• Where does CO come from?  CO can come from home heating and cooking appliances that are damaged or misused.  It can also come from combustion engines such as cars and lawn mowers.  If these sources are releasing CO in an enclosed space then there may be some harmful effects to you and your loved ones.
• Is there a way to tell if CO is in my house?  Yes!  It is highly recommended (and required in some states) to have a CO detector in your home.  When buying a CO detector, buy only products that have been tested by qualified testing laboratories.  Make sure that you test these monthly when you test your smoke detectors.
• What are the Symptoms of CO poisoning?  A low level exposure may create flu like symptoms in its victim.  If you are experiencing this and your CO detector goes off, get out of the house.  The next stage includes dizziness, mental confusion, severe headaches, fainting, and even death.  
• How can I prevent CO in my home?  Be sure that your household appliances are installed and operating appropriately.  Also, never let your vehicle run when in an attached garage, even if the garage door is left open.  Have your heating equipment inspected and serviced each year to ensure that your family will be well protected.

Carbon Monoxide is no joking matter.  It is the leading cause of accidental poisoning deaths in the US.  Don’t be a victim to this poisonous gas.  Make sure that you and your family are informed about that hazard of CO and that you have a detector to keep your family safe.

We hope that these tips were nice and helpful for you and your home.  Keep checking back throughout the month for more tips on Home Safety.  If you have any suggestions, shoot us an e-mail at team@bockrealestate.com.

-The Steve Bock Team

Tip of the Week: Looking for Advice

Question:  I’ve inherited some residential real estate.  Would it make more sense to sell it or keep it and rent it out?

Answer: With such big dollars at stake, it would make sense to have a real estate professional sit down with you and put all the pros and cons down on paper.  Important questions need to be answered and you need professional input.  Should you sell?  What return can you expect?  What will be the tax consequence?  Is it the right time to sell?  Would the residence be a good rental property?  Would it be easier to rent or put the profit into financial instruments?  Get all the facts before you decide.

Let us know your questions so that we can include them in future Weekly Updates:  team@bockrealestate.com

Current Event: Interest Rates on the Rise, But Still Low Compared To Last Year

I just came across this article on The Wall Street Journal that talks about interest rates.  Due to some upbeat news from the most recent employment report, mortgage rates have risen slightly.  Compared to last year the rates are still very low, but we won't know for how long.  If you have been pushing off looking for a new house until Spring, you may want to reconsider; there is no telling how much longer these rates will stay as low as they are.

-Steven Bensema
515.451.9421
steven@bensema.com

Topic of the Month: Home Safety :: Hot Tips on Fire Safety

In the month of December, The Steve Bock Team would like to ensure that your home is safe from fire and smoke damage.  In order to do this, we would like to clear up the haze around smoke alarms and fire safety.  Smoke alarms don’t prevent fires in the home, but they do double your chances of surviving a fire.  We would like to give you some hot tips on fire safety:

• When purchasing a smoke alarm, make sure that it has a loud alarm, a UL listing, a malfunction signal and a ten-year back-up battery.  These features will ensure that your home is protected from fire.
• Install smoke alarms on every level of your home.  If you sleep with the door closed, then you should install an alarm in the bedroom as well.
• Always ensure that your smoke alarms are in working order.  Test them once a month and change the battery when you change your clocks.  Also, if you vacuum your smoke alarms to remove dust and cobwebs you will ensure an accurate read. 
• Keep spare batteries on hand for when one stops working.  Never risk having a smoke alarm without a battery.  A smoke alarm that doesn’t work is like having no smoke alarm at all.
• If you do experience a fire, GET OUT and call the fire department from a neighbor’s house.  Fires spread quickly and you don’t want to be in when it gets going.  Make sure that you crawl and stay low to the floor.  The heat at the floor level is 90 degrees, but at head level is 600 degrees and at the ceiling it is 800 degrees.  Anything over 150 degrees will knock you unconscious and kill you.  Stay Low!

We hope that these tips were nice and helpful for you and your home.  Keep checking back throughout the month for more tips on Home Safety.  If you have any suggestions, shoot us an e-mail at team@bockrealestate.com.

-The Steve Bock Team

Topic of the Month: Home Safety :: Exterior Lighting

In the month of December, The Steve Bock Team would like to make sure that your home is staying safe.  In order to keep your home safe, we would like to give you some tips and suggestions on exterior lighting.  Adequate exterior lighting not only helps people find your house easier, but it also will keep your home safer by illuminating walkways, steps and entrances.

• Generally, a light mounted to one side of every exterior door is the minimum lighting for the exterior of a house. Try including a lantern or other wall fixture on both sides of the door and a pendant or a post light near driveways and walkways.
• If you have an intricate curvy path leading to your front door, you may want to have guiding lights to show people the way without stepping off of the pathway.
• Be sure that all of your exterior lights have the recommended bulbs and that they are in working order.
• You can use exterior lighting in conjunction with photo cells and timers to give your house the “lived in” look even when you are not there.  It also insures that your home is well lit for when you arrive home from work.
• Use motion detecting security lights if you are worried about intruders.  These lights will illuminate any areas that the intruder may try to get in and scare that person away.  These can be picked up for between $50 and $100.  For that cost, the piece of mind is well worth the expense.

We hope that these tips were nice and helpful for you and your home.  Keep checking back throughout the month for more tips on Home Safety.  If you have any suggestions, shoot us an e-mail at team@bockrealestate.com.

-The Steve Bock Team

Tools & Resources :: Mortgage Calculator

Are you trying to figure out how much your dream house is going to cost on a per month basis?  Check out our Free Mortgage Calculator and play around for a little bit.  While you are at our site using our Mortgage Calculator, feel free to browse our listings and see if your dream house is on the market yet!

Happy House Hunting!

-The Steve Bock Team

Tip of the Week: How Much Will the Bank Lend?

Question:  My family income is $30,000 a year.  How much of a mortgage can I expect a bank to lend me?

Answer: If you go by the rule-of-thumb guidelines (payment of 24%-28% of gross monthly income) you would normally expect to pay up to a limit of $625 per month on your mortgage.  But this is a very rough rule of thumb.  You may qualify for more or less depending on other variables.  There is more than your income to consider.  What is your past credit history?  What amount of debt do you now owe?  What is the appraised value of the property?  The mortgage decision will be based on the COMBINATION of all the factors.

Let us know your questions so that we can include them in future Weekly Updates:  team@bockrealestate.com

Topic of the Month: Home Safety :: Christmas Hazards

In the month of December, the Steve Bock Team wants to be sure that your house is safe so that you can have a great Christmas season without any visits from the Fire Department.  In order to accomplish this, we would like to provide some common Christmas Hazards and some ways to prevent them.
• Buying your Christmas tree and what to look for:  Be sure to pick a tree that is fresh.  You can tell a fresh tree by whether or not the needles are still firmly attached to the branches.  Once you get it home and decorated, be sure to keep plenty of water around the base of the tree.  Dry Christmas trees are the cause of more than 1,000 house fires every year.
• Always check your Christmas lights before putting them out:  Be sure that the strands of lights are in good shape and that there are no broken plugs, loose sockets or worn insulation.  If there is you could have a higher risk for fire, shock or even electrocution.
• Do not overload your circuits:  When hanging lights do not put too many strands together.  If you do you could overload your circuits which could cause a fire.  Also, make sure that you turn out your lights inside and outside before you go to sleep.
• Make sure your space heaters have enough space:  When using space heaters in a room, be careful not to put the heat source too close to curtains, bedspreads or furniture.  Also make sure that the kids know that they could get burned if they touch the heater.
• Watch the stockings to make sure that the goodies do not turn to ashes:  If you have your stockings hanging over the fire next to the roasting chestnuts you will want to make sure that they are far enough away from the flame.  When you have that cozy fire going you do not want the goodies to heat up.
• Watch out for the Charlie Brown trees:  After Christmas is over and the new toys are played with and the new sweaters are on, do not forget to get rid of that old tree.  Every day the tree will get drier and the risk for fire goes up. (Source Alert-all Corporation)
For more home safety tips for keeping your house safe this Christmas season, check back regularly.  If you have a topic that you would like to see a post about, send us an e-mail at team@bockrealestate.com.
- The Steve Bock Team

Topic of the Month: Home Safety :: Introduction

Around the holidays we wanted to talk a little bit about home safety.  The weather is changing, the night comes earlier and earlier each day and there will be days ahead when we won't have to worry about work or the kids being at school.  With all of these factors coming together we wanted to make sure that people were thinking about how they could make sure that their home is safe for the holidays.  Keep coming back to the blog for more information and tips on how to keep your home and family safe this winter!
- The Steve Bock Team

Tip of the Week: Looking? Keep a Record

Question: I’m house-hunting and get confused when I try to remember the details of each one.  Any advice?

Answer: Once your Realtor takes you house-hunting, he or she will probably show you several.  Therefore, it is important to take notes on what you have seen or you may forget which home is where, how bit it is, what shape it is in, and the price.  Your Realtor can provide you with a data sheet to make this task easier.  This way, you can instantly recall the location, price, construction, number of rooms, heat, fuel, taxes, and financial requirements.  A picture of the house to go with the notes helps, too.

Let us know your questions so that we can include them in future Weekly Updates:  team@bockrealestate.com

Home Buying Hazards: Asbestos and Lead-based Paint

Asbestos was utilized throughout the 20th century as a major form of piping, insulation and flooring, and is a fibrous mineral acclaimed for its fire resistant qualities.  Anyone seeking to remodel homes prior to 1980 should be aware that asbestos exposure can cause serious health concerns for you and your family. There are now many resources available for citizens to remove the material in a safe manner.  A devastating form of asbestos cancer is known as mesothelioma. This disease has varied effects on victims, but patient prognosis is usually poor. Since asbestos illness has a latency period that can last anywhere from 20 to 50 years, it is expected that cases will rise of the next few years and peak in 2015. Although undisturbed asbestos usually does not present a danger, steps should be taken to remove the material. The removal process must be performed by licensed abatement contractors who are not only trained in handling hazardous materials, but follow state and federal regulations. There are now many healthy options that replace the need for asbestos. The use of recycled building materials such as cotton fiber and lcynene, provide peace of mind and lower energy costs. These green alternatives not only allow for a safe living environment free of toxic materials, but can lower your carbon footprint and help achieve a healthy lifestyle. (Source: Mesothelioma Cancer Center)


Lead-based paint contains a toxic metal that was used for many years in paint and was banned for residential use in 1978. Exposure to lead can result in health concerns for both children and adults. Children under six years of age are most at risk because their developing nervous systems are especially vulnerable to lead's effects and because they are more likely to ingest lead due to their more frequent hand-to-mouth behavior. If covered and undisturbed, lead-based paint is harmless, but when molested during removal or construction, the dust of this paint is very dangerous. (Source: jjkeller.com)

Tip of the Week: Falling for Frills

Question: My wife fell in love with a built-in microwave oven and insists we buy a house that is overpriced and out of our financial range.  Any advice?

Answer: This is one of the typical mistakes a house-hunter can make – buying the frill instead of the house.  All too often a family will fall in love with an eye-catching feature and buy the wrong house.  Yielding to superficial attractions like these can result in your family ending up with a thoroughly unsuitable house.  Bear in mind that the same alluring feature can usually be added to another house at a relatively small cost compared to the total purchase price.

Let us know your questions so that we can include them in future Weekly Updates:  team@bockrealestate.com

Home Buying Hazards: Mold and Radon

Two home buying hazards common in Central Iowa are radon and mold.


Radon is an element released by naturally occurring radioactive materials in the soil. This gas product is radioactive and increases the probability of lung cancer when inhaled. This is a gaseous element which enters the home through the basement from the soil, and generally remains in there because of its mass. The only way to effectively "treat" radon gas is to lower the concentration, which is done by increasing airflow to the area and more effectively sealing it out in the first place. Mitigation is most commonly practiced by installation of a fan which moves air through the basement continuously, which doesn't allow the heavy gas to accumulate.

Mold is estimated to be in approximately 10 percent of all U.S. buildings. There are many mold types but only some are toxic. Mold prefers to grow on organic materials and grows most rapidly under the correct temperature and moisture conditions. Mold is most dangerous when microscopic spores are inhaled and an infection results, but allergic diseases such as asthma are also common and dangerous. Mold prevention is the easiest and most effective defense against mold. Temperature, grow substrates, and moisture are all key to mold growth, and of these moisture is the easiest factor to control. The lower the continuous moisture levels, the better. Growth substrates can be chemically treated to prevent mold growth as well.

Follow up Wednesday for more info about Asbestos and Lead-based Paint!

Home Buying Hazards Overview

When purchasing a home, safety is always of the utmost importance, given you will spend vast amounts of time there for years to come. So what are the common culprits that make a home unsafe and how do you deal with them as a homebuyer? The list of things that can be hazardous in a home is almost endless, but lead-based paint, asbestos fiber, radon gas, and mold are the most common worries of buyers today in Ames and Central Iowa. Although any of these elements is potentially dangerous, their presence alone does not make them an immediate danger. In fact, many homes will have one or more of these elements which never happen to affect the occupants. Lead-based paint that has been covered and remains unmolested is a frequent and rarely harmful occurrence. Asbestos fibers that don't find a way to your lungs via the air are also harmless. Very few house basements actually have "no" radon gas, and people with high radon levels that rarely visit their basements may go virtually unaffected. I'm not claiming these things as any less hazardous, but the truth is you can't get bit by a snake you don't encounter. The next few posts this month will cover more specifically these hazards you could encounter.

Tip of the Week: Beware of Net Listings

Question: I told my real estate agent that I wanted $120,000 for my house.  He offered to sell it if he could keep anything OVER that amount as his commission.  What do you think?


Answer:  If an agent proposes to guarantee you a certain sum from the sale of your home in return for the chance to keep anything OVER that amount, you have been offered a “net listing”.  This arrangement is open to so much abuse that it is illegal in about half of the states, including Iowa.  Any number of complications can arise.  The AGENT’s interests are now paramount although the law requires that you, the client, must come first.  If you find yourself in this situation… RUN!


Let us know your questions so that we can include them in future Weekly Updates:  team@bockrealestate.com

Current Event: NEW AND IMPROVED Homebuyer Tax Credit

This blog post was specially written by Lisa Severseike of Global State Mortgage, one of our preferred lenders!


Who Gets What?
First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000

Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Current Owners: The tax credit program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.

What are the New Deadlines?

In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.

What are the Income Caps?

The amount of income someone can earn and qualify for the full amount of the credit has been increased.
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible.

Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.


What is the Maximum Purchase Price?

Qualifying buyers may purchase a property with a maximum sale price of $800,000.


What is a Tax Credit?

A tax credit is a direct reduction in tax liability owed by an individual to the Internal Revenue Service (IRS). In the event no taxes are owed, the IRS will issue a check for the amount of the tax credit an individual is owed. Unlike the tax credit that existed in 2008, this credit does not require repayment unless the home, at any time in the first 36 months of ownership, is no longer an individual’s primary residence.



How Much are First-Time Homebuyers (FTHB) Eligible to Receive?

An eligible homebuyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500. If the amount of the home purchased is $100,000, the amount of the credit may not exceed $8,000.



Who is Eligible fort FTHB Tax Credit?

Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible.

This applies both to single taxpayers and married couples. In the case where there is a married couple, if either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible.

As mentioned above, the tax credit has been expanded so that existing homeowners who have owned and occupied a primary residence for a period of five consecutive years during the last eight years are now eligible for a tax credit of up to $6,500.



How Much are Current Home Owners Eligible to Receive?

The tax credit program includes a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.


Can Homebuyers Claim the Tax Credit in Advance of Purchasing a Property?

No. The IRS has recently begun prosecuting people who have claimed credits where a purchase had not taken place.



Can a Taxpayer Claim a Credit if the Property is Purchased from a Seller with Seller Financing and the Seller Retains Title to the Property?

Yes. In situations where the buyer purchases the property, even though the seller retains legal title, the taxpayer may file for the credit. Some examples of this would include a land contract or a contract for deed.

According to the IRS, factors that would demonstrate the ownership of the property would include:

1. Right of possession,
2. Right to obtain legal title upon full payment of the purchase price,
3. Right to construct improvements,
4. Obligation to pay property taxes,
5. Risk of loss,
6. Responsibility to insure the property, and
7. Duty to maintain the property.


Are There Other Restrictions to Taking the FTHB Credit?

Yes. According to the IRS, if any of the following describe a homebuyer’s situation, a credit would not be due:

They buy the home from a close relative. This includes a spouse, parent, grandparent, child or grandchild. (Please see the question below for details regarding purchases from “step-relatives.”)

They do not use the home as your principal residence.

They sell their home before the end of the year.

They are a nonresident alien.

They are, or were, eligible to claim the District of Columbia first-time homebuyer credit for any taxable year. (This does not apply for a home purchased in 2009.)

Their home financing comes from tax-exempt mortgage revenue bonds. (This does not apply for a home purchased in 2009.)

They owned a principal residence at any time during the three years prior to the date of purchase of your new home. For example, if you bought a home on July 1, 2008, you cannot take the credit for that home if you owned, or had an ownership interest in, another principal residence at any time from July 2, 2005, through July 1, 2008.



Can Homebuyers Purchase a Home from a Step-Relative and Still be Eligible for the Credit?

Yes. As long as the person they buy the home from is not a direct blood relative, the purchase would be allowed.



If a Parent (Who Will Not Live In The Property) Cosigns for a Mortgage, Will Their Child Still be Eligible for the Credit?

Yes, provided that the child meets the other requirements for the tax credit.

Tip of the Week: Don't Count on Oral Promises

Question:  I am about to purchase a home.  The builder promised that everything wrong will be taken care of and that a handshake will save a lot of paperwork.  Should I trust him?

Answer:  Many a business agreement has been made with a handshake and enforced by the courts.  But when it comes to the never-never world of real estate, you cannot and should not rely on oral promises.  In fact, the law in all states specifically requires that all agreements and conditions relative to the sale of real estate specifically be in writing to be enforceable.  The way to put teeth into oral promises is to insist that everything significant be put in writing.

Let us know your questions so that we can include them in future Weekly Updates.  E-mail us at team@bockrealestate.com