Real Estate Word of the Day: Inheritance Tax

Inheritance tax, sometimes known as estate tax, is a levy imposed on the assets (including real estate) inherited by heirs upon the death of the property owner. The tax amount is calculated based on the total value of the estate left behind, including cash, investments, personal belongings, and, of course, real estate properties.

Real estate is often one of the most significant assets within an estate, making it a focal point when considering inheritance tax. Let's break down how inheritance tax can relate to real estate:

Determining the value of real estate properties can be complex. Factors such as location, market trends, property condition, and potential for development all influence its worth.…

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Real Estate Word of the Day: Mortgage

A mortgage is a loan specifically used to purchase real estate. It is a financial agreement between a borrower and a lender (typically a bank or a mortgage company) where the lender provides funds to buy a property, and the borrower agrees to repay the loan over a predetermined period, usually with interest.


Types of Mortgages

There's no one-size-fits-all mortgage. Various types cater to different financial situations and preferences. Here are a few common ones:

  • Fixed-Rate Mortgage - With a fixed-rate mortgage, the interest rate remains the same throughout the loan's term, providing stability and predictability in monthly payments.
  • Adjustable-Rate Mortgage (ARM) - Unlike a fixed-rate mortgage, an…

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Real Estate Word of the Day: Probate

Probate is the court-supervised process of authenticating a deceased person's will (if one exists), appointing someone to administer the estate, identifying and inventorying the deceased person's property, paying debts and taxes, and distributing the remaining property as directed by the will or by law. Essentially, it's the legal process of transferring property from the deceased person to their beneficiaries or heirs.

When a property owner passes away, the ownership of the property doesn't automatically transfer to their heirs. Instead, the property becomes part of the deceased person's estate, subject to probate. The court oversees the transfer of the property's title from the deceased person to their…

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Real Estate Word of the Day: Proof of Funds

Proof of funds (POF) is a document or set of documents that demonstrate an individual or entity's financial capability to carry out a transaction. In real estate, this typically refers to the ability of a buyer to finance the purchase of a property. It is a tangible way for sellers and their agents to verify that a prospective buyer has the necessary funds available to complete the purchase.

Proof of funds can come in various forms, depending on the financial situation of the buyer. Some common types include:

  1. One of the most straightforward forms of proof of funds is a recent bank statement showing the account balance. This indicates to the seller that the buyer has sufficient liquid assets to cover…

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Real Estate Word of the Day: Appreciation

Appreciation is an increase in the worth or value of a property over time, typically due to changes in the market, inflation, or other related economic causes. The increased value of a real estate property may lead to the owner making a profit upon selling it as the property is now worth more money. The opposite of appreciation is depreciation. According to The National Association of Realtors, the median price of homes rose an average of 6.4% per year between 1968 and 2004. Demand is the strongest factor. When the demand for real estate is higher than the supply, its value will go up. A drastic rise in home prices occurred recently between the years 2020 and 2021, where the median sales price of existing homes…

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Real Estate Word of the Day: Principal

Principal refers to the original amount of money borrowed to purchase a property. It's the initial loan amount that you agree to repay over time, often with added interest. Essentially, the principal represents the actual cost of the property, excluding interest and other fees.

The principal amount directly influences the terms of your mortgage loan, including the monthly payment amount and the total interest paid over the life of the loan. Typically, larger principal amounts result in higher monthly payments but may lead to lower interest rates if you have a good credit score and meet other lending criteria.

The principal amount forms the basis for building equity in your property. Equity is the…

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Real Estate Word of the Day: Pre-Approval

A pre-approval is essentially a lender's conditional commitment to provide you with a mortgage loan of a specified amount based on your financial situation and creditworthiness. It's different from pre-qualification, which is a more informal assessment of your finances.

To obtain a pre-approval, you'll need to submit an application to a mortgage lender or broker, such as our preferred lender Think Mortgage. They'll review your income, assets, credit history, and other financial information to determine how much they're willing to lend you.

One of the most significant benefits of getting pre-approved is that it gives you a clear understanding of your budget. Knowing how much you can afford helps…

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Real Estate Word of the Day: Multiple Listing Service

Multiple Listing Service, often abbreviated as MLS, is a comprehensive database system utilized by real estate professionals to share information about properties available for sale or rent. It serves as a centralized hub where agents and brokers can access detailed listings of properties across a particular region.

Imagine an MLS as a vast network connecting real estate professionals, enabling them to collaborate and streamline the process of buying and selling properties. When a seller decides to list their property with a real estate agent, pertinent details such as the property's location, size, features, and asking price are entered into the MLS database.

This information becomes…

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Captain Joseph Morro, Firefighter Brian Szeluga, & Engine 160 Honored at The 2024 FDNY & EMS Valor Awards!

FDNY

It is no small task to do what the members of the FDNY do. They are often regarded as the bravest, and rightfully so. When Everyone is running out of tragedy. They’re charging in. When someone is facing their toughest day, New York’s bravest are called to provide hope. They aren’t brave because they lack fear, they are brave because they do what they must, in spite of that fear. New York City's Fire Department is full of heroes and we are so proud to have two of those heroes with us at Tom Crimmins Realty. It was on March 27th, 2024, that these members of our real estate family, along with other fellow Firefighters, were honored at the Island…

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Pros & Cons of Owning a Vacation Home:

Vacation

Vacation homes are secondary homes that some own to get distance from their primary residence and to get some needed time away. When you think of vacation homes, you think of tranquility, peace, a place to de-stress from your day to day lives. A vacation home can be a great place to spend time with family and friends to make memories which can come with many benefits to owning!

A vacation home allows a convenient get away whenever you want. You no longer have to stress about booking a hotel or worrying about availability and cost. You have the ability to be flexible when you want to go and not worry that you have to go for a set period of time. It’s extremely convenient that you won’t have to pack a lot.…

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