Should we put new carpeting in our home before we put it on the market?
Question: We’ve been advised by our Realtor to recarpet our home before putting it on the market. This comes as something of a surprise as we thought that the new owners would rather choose their own carpet. Allison, what do you suggest?Answer: The more luxurious the flooring in a residence the better when it comes time to put a home on the market, according to Los Angeles-based real estate broker Robert Irwin, author of “Buy Right, Sell High.” In the case of carpeting, a replacement could increase the value of the home by much more than a few thousand dollars, which is about how much the project will cost. Wall-to-wall carpeting that is older than five years most likely will look worn to any prospective of the home. When it comes to hardwood floors, home sellers should keep in mind that they should be able to withstand sanding and refinishing. For these reasons, homeowners should make sure the hardwood floors are thick enough. Also, owners of homes with tile floors should have replacement tiles available. “Information Inc. Q. Can I buy real estate in my Retirement Plan?A. Yes! Contrary to what you may have heard or been told, the IRS places very few limits on what you may buy with your IRA retirement funds. It is your IRA custodian who has put those limits on your retirement account. A true self-directed custodian is the key. Truly self-directed IRAs allow you, the investor, to choose your investments. IRA investments are not limited by the IRS; they are limited by securities-based custodians.Q. Does the IRS allow real estate in an IRA?A. Yes. The IRS has had that question so many times they answer it directly on their website (www.irs.gov). In their retirement Q & A section they say “IRA trustees are permitted to impose additional restrictions on investments. For example, because of administrative burdens, many IRA trustees do not permit IRA owners to invest IRA funds in real estate. IRA law does not prohibit investing in real estate but trustees are not required to offer real estate as an option”. To invest in real estate your IRA custodian must allow it. True self-directed custodians do.Q. Why didn’t I ever hear about real estate investment in IRAs before?A. Real estate in IRAs is a well-kept “secret” opportunity that, until recently, hasn’t been talked about much. Retirement investing has been dominated by the securities industry since 1974 but has always been available. The opportunity to invest IRA funds directly in real estate is an option that many people are just learning about.Q. What about borrowing? Can my IRA get a mortgage?A. Again the answer is YES. Over the past year many banks have discovered the demand by IRA owners to finance real estate purchases in their IRAs. Banks continue to develop products specifically for IRAs and other plans. IRA loans tend to have higher down payment requirements than those for personal homes.Q. What are the restrictions for the purchase?A. The primary requirement is that the purchase be for investment purposes. The IRA owner, certain family members and related persons cannot use the property while the IRA owns it. Your IRA is also are not allowed to buy property you already own personally.Q. What can I invest my IRA and qualified plans in?A. The IRS does not approve any specific investments. There are two things not allowed: Life insurance and collectables. A true self-directed IRA administrator will allow any legal investment.Q. What are Non-Traditional investments?A. Traditional investments are those that are securities sold by brokerage companies and funds. Non-traditional investments are everything else. Almost anything you can invest in outside of your IRA can be purchased in it. The power of self-direction allows you to invest in what you know. You can take advantage of real diversification. There are no minimums or limits to how much your IRA can earn. For answers to your real estate questions, call Allison at (970) 468-6800 or (800) 262-8442. Email Info@SummitRealEstate.com or visit their web site at www.SummitRealEstate.com. Allison is a long time local in Summit County. Summit Real Estate The Nenninger / Simson Team is located at the Dillon Ridge Marketplace. Her long-time residency and years of real estate experience can help you make the most of any buying or selling situation. Being a Certified Residential Specialists (CRS), the highest designation awarded to a Realtor in the residential sales field, helps to insure that she knows her stuff! Their philosophy is simple, whether buying or selling, they understand that the most important real estate transaction is yours.
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