If We’re Retiring And Looking For A New Home, What Do We Need To Consider?

If-We're-Retiring-And-Looking-For-A-New-Home-What-Do-We-Need-To-Consider?

Retirement brings about numerous changes, with one of the of the most significant changes possibly being your change of  residence. Homeowners who have recently retired or who are planning their final days in the workforce may need to reevaluate their living situations. This might leave thoes retirning and looking for a new home, wondering what they need to consider. Upgrading, downsizing, or even buying a second home can help retirees ensure their families’ future comfort or earn extra monthly income.

 

Be sure to consider these points before buying a new home in which to spend your retirement years.

 

Leaving a Legacy

Retiring well means more than just having enough to keep you and your spouse comfortable. A good retirement includes the ability to leave something behind to keep your family growing strong when you can’t be with them. Retiring parents might buy a second home for many reasons.

  • Is your current home just too big? Consider buying a second, smaller home to live in. Use your large family home for big family gatherings like weddings and special holiday events. You can also use it as a guest-house, a vacation home for your adult children, or as a storage for all your family’s precious treasures.
  • The fluctuating economy is making it difficult for young families to get a good start. A 2013 study found that 36% of adults between the ages of 18 and 31 lived with their parents. Retiring parents can help their adult children reach independence by purchasing a large property they can share if it ever becomes necessary to do so.
  • Retiring parents with special needs adult children may want to buy a new home that features a detached dwelling or “mother-in-law” quarters. The adult children can learn to live independently while you are still around to guide them. When you are gone, the designated caregiver can move in and your child can continue living in the comfort they’ve come to know.

 

Generate Income

Just because you aren’t working doesn’t mean you can’t make a little extra cash. You can use additional properties to boost your monthly income so you can afford to have all the fun you deserve.

  • Consider downsizing into something more suitable for your needs. Rent out your large family home on a monthly basis or possibly offer short-term rental services like Airbnb. You may decided to contract with a property management service to handle repairs, collections, and all the other landlord duties. Your property will be maintained and available if your plans ever change..
  • Retirement is the time to do what you’ve always wanted to do with your life. You might purchase a small property to house your new business. Or upgrade your current home to one that has plenty of space for your woodworking, papercraft, metal art, or whatever hobby you want to convert into a paying enterprise. You might even look for properties that have unique features you can use to make your work easier. A screened porch very well might be the perfect place to paint.
  • You may even consider easing your yearly tax burden by donating your existing home to a local charity. You will enjoy generous tax deductions while giving back to your community. Since the home still belongs to you, you can leave it to whomever you like in your will. This is a great way to preserve wealth for your family while also reducing your expenses.

 

Buying a new home during retirement can help seniors achieve the right balance, help their loved ones, and even increase or protect their wealth.

 

If You Are Considering Buying Or Selling, Let’s Talk About What Options There Are Today.

What Benefits Do First Time Home Owners Enjoy?

What-Are-The-Top-Benefits-For-First-Time-Home-Owners?Buying and becoming a new homeowner can be a difficult challenge, and an extremely rewarding endeavor once you own your first home. As a new homeowner, you gain access to several different tax benefits for both primary or secondary residents such as vacation homes. With recent changes to the federal tax law, it is important to review how home tax credits were affected. There were many alliterations of the tax bill reported on in the press and luckily many of the more severe recommendations were not passed in the final bill. However, some changes were made and are reflected below where applicable. Here is a broad overview of the five federal tax credits you can claim as a homeowner.    

 

Real Estate Taxes: Referring to state and local property taxes, under the proposed changes to the 2018 tax bill, this is a deduction cap of $10,000 total for state and local property tax and associated income or sales taxes. This limit is the same for both single and married couples filing jointly.  

 

Concerning Your Other Deductions: When taking a tax credit for mortgage-related tax benefits you have to itemize your deductions. This can be highly advantageous because it allows you to take credit on other non-home related tax write-offs that have to be itemized to be claimed. These include unreimbursed employment expenses, charitable giving, medical expenses, and others.  

 

Loan Interest Deduction: For 2018 you can deduct interest payments on your home’s mortgage as long as your mortgage is less than $750,000 or $375,000 for married couples filing separate returns. Note that these figures were higher in previous years but recent tax law changes resulted in the above figures. Unchanged is the fact you must have a loan secured by the home and the home must be your main or secondary residence.      

 

Points: Note the interest you paid upfront during the mortgage closing process. As this type of payment improves your overall mortgage rate, most closings have points to some degree. These are deductible provided you meet several specific criteria. Key amongst these is that points must be paid with a secured loan, the loan in question must be secured by your main home, and the mortgage loan goes toward your home’s purchase or construction. Also, note your points total value must be in the ‘normal range’ for your geographic area and the surrounding home market values. Figures deemed unusual may result in this credit not being usable.  

 

Future Tax Benefits: Lastly, you can claim a capital gains write off when you sell the home in the future provided you meet the habitation requirements. You have to live at the residence for 2 of the last 5 years and these two years do not have to be concurrent. By meeting these requirements you do not have to pay taxes on gains on a home sale up to a specific amount. The limits are $250,000 if filing single or $500,000 if filing jointly. This law was unchanged in the 2018 Tax Bill despite being considered at various points for modification or outright removal.    

 

Final Considerations

As the above shows, there are several tax advantages to purchasing a home. Despite changes made to the tax code these benefits are still ones that should not be ignored and should be correctly accounted for on your tax return. As always should you need further clarification on these or similar real estate matters, a knowledgeable and professional realtor will be able to give you a bit more detail.

 

Whether you need to sell your home, or solely looking for one to buy; let’s talk about what’s available today.

In A City Full Of Realtors, How Do I Decide Which One To Go With?

In-A-City-Full-Of-Realtors-How-Do-I-Decide-Which-One-To-Go-With?

Here in Charleston, you may find yourself with a lot of choices when it comes to Realtors and real estate agents. Because of this, it can be difficult to separate the average agents from those who truly excel. Here’s what to look for when choosing an agent to represent you in your real estate dealings.

 

Communication

Communication is one of the most important skills a Realtor or real estate agent must have, let alone for any business. After all, you’re going to be in touch frequently throughout the home buying or selling process, so you want your representative to be as accessible as possible. Real estate doesn’t necessarily follow traditional business hours, so your agent shouldn’t either. Ask about their policies on after-hours or weekend communication to ensure they’ll be accessible when you have questions or need advice.

 

Personalized Service

You want to choose an agent who will find exactly what you are looking for, and this requires getting to know your taste and preferences. Attention to detail is vital for this, so look for an agent who will take the time to get to know you on a personal level and truly understands your needs and preferences, not just for the size and location of the home but also in terms of the layout, style and any other preferences you may have.

 

Past Experience

It is helpful to have a Realtor who has experience helping clients buy and sell the type of home you are seeking. For example, if you are looking for a luxury property in an upscale area, an agent whose experience comes mostly from starter homes in affordable areas may not be the best fit. This doesn’t mean that an up-and-coming agent can’t help you, but you may be better off with a Realtor who better understands your market. Ask about past sales and purchases to get a better sense of their forte.

 

Approach

Some Realtors are more aggressive than others in terms of negotiating, so you want to ensure that your representative will stand up for what you want. Of course, you need to have room for some flexibility, as the other party will have their interests in mind as well, but you want to have confidence that your agent is doing everything in their power to achieve favorable results for you.

 

Knowledge

Knowledge of the local area is absolutely critical for the agent you choose. You want someone who either lives in the area themselves or has been working there for a long time. This way, they’ll have insider knowledge as to which schools are the best, where the top amenities are located and other information that may be important to you. This is especially important if you are moving from another city or state and aren’t familiar with the area yourself.

 

Ongoing Service

It’s one thing to be a great Realtor during the process or buying or selling a home, but it is quite another to maintain relationships with clients after the deal closes. Every agent will work closely with you during the process, but many are not as attentive after the fact. Ask the Realtors you are considering what ongoing services they may provide. If they don’t have a good answer, you may want to look elsewhere to find someone more attentive.

 

Finding the right Realtor is almost as important as finding the right home, so be sure to take your time in choosing your agent. Ask pointed questions, and make note of the answers to reference later when it comes time to make your decision. With a bit of patience and research, you are sure to find the perfect agent to represent your interests.

 

If You Are Considering Buying Or Selling This Year, Let’s Talk About What Options There Are Today.

What Should I Be On The Look For During A Home Tour?

What-Should-I-Be-On-The-Look-For-During-A-Home-Tour?

When it comes to any major purchasing decision like buying a home, you always want to be sure of what you’re getting before you buy. There may not be enough time for you to have a second home tour with friends and family for a different opinion on it. It is therefore vital to have a guideline on the areas to look out for before making a decision. The first tour is essential, and one needs to focus their attention on things that will be hard or expensive to change in future as opposed to temporary issues such as personal items, décor and paint colors. Here are a few key areas of a home you should be focusing on:

 

Areas Of The Home To Concentrate On

  • Location

This is one of the most critical areas to look out for during a home tour. Consider the traffic flow (things to consider) to your ideal home, as congestion would mean getting to work or back home late (plus further expenses like your time and that increased transportation cost). For a potential pleasant presence with the location of your future home, be sure to consider the road systems, nearby buildings, noise, and other neighboring homes. Look out for proximity to public transport and on whether the neighborhood has ample sidewalks and paths that accommodate a leisurely stroll or a bike ride.

 

  • Lighting

Be sure to look out for whether the house has access to natural light, and permits good airflow. Fresh air and sunlight make a living in a home much more enjoyable, and it helps in reducing the utility bills during summer months (when you’re not lying on the beach) by opening the windows and catching a breeze.

 

  • Flooring

Consider whether the floor plans and room sizes match your preferences. Does the home have all the rooms you need and in the best size? It is expensive and takes a lot of time to bring down walls trying to create a bigger space. Look out for uneven flooring such as cracks, as it is expensive to repair foundation-associated problems.

 

  • Water Damage

Look out for possible water damage signs such as musty odor, dark spots and water lines on the ceiling and walls as they are an indication of damages from a leak or burst pipe. It is important to peek at any exposed piping in the laundry room (or possibly) basement to assess water stains, leaks or rust. It is easy to repair a water leakage, but when it has gone for months without detection and has caused notable damages, it could also mean it is unrepairable.

 

  • Roofs and Gutters

Be sure to look at the roof to make sure it is not worn out.Gutters should be intact. To determine the maintenance level of the roof look out for missing, covered or curling roof tiles. Also check on whether the roof structure has signs of leakages as this could for a new roof which is expensive. The roof may fail to meet the required standards necessary for processing your insurance or mortgage.

 

  • Space of the Closet

This could be a deal breaker for you in deciding on the home. The storage space should be ideally large enough to accommodate all your belongings and help you at keeping organized.

 

  • Windows

Pull the curtains to check on the status of the windows. Look out for lopsided frames and give the windows a take to ensure that they slide with ease. Windows that stick while opening may indicate poor foundational issues or poor installation, which can be expensive to repair.

 

  • The Driveway and Parking area

Be sure to check out the dimensions of the driveway and parking area. A narrow driveway while become frustrating in the long term. A very long driveway will necessitate future maintenance that you may not be completely up for in the future.

 

Now no matter what your thoughts are always remember to keep them to yourself when touring a home for better bargaining. You might consider bringing a camera (or use your phone if you prefer) to take photos of the property, or possibly even measuring tape in case you decide you’d like to measure something in the house.

 

These are only a few things to be on the look out for.

 

If you’re looking for a new home, a great realtor will be able to help you find what you’re looking for.

 

If you need help finding the right home, contact us today to see what’s available.

Why Is Home Ownership Important For The American Economy?

Why-Is-Home-Ownership-Important-For-The-American-Economy?

Homebuilding and real estate sit at the top of the food chain when it comes to fueling economic growth. Home ownership has been the absolute foundation for wealth building for centuries and the process of constructing homes fuels many sectors of the economy. Once built, those homes continue to support and grow economic activity both locally and nationally.

 

Consider these statistics about homebuilding and homeownership in the U.S. :

  • A Federal Reserve study found that the median net worth of homeowners reached $195,400 in 2013 compared to $5,400 for renters.
  • The National Association of Realtors (NAR) found that for every two homes sold (including new and resale), one job is created. Findings from a study executed by the National Association of Home Builders (NAHB) echoed those findings, which found that 3.94 jobs were created for every 100 single-family home built.

 

How Real Estate Supports the Economy

Activity in the field of real estate has a trickle-down effect that permeates nearly every other economic sector. The process of building a home is labor-intensive from the start. It starts with planning and zoning at the local level. Builders represent themselves or hire lawyers, both of whom make good salaries. Once approved, the builder uses local contractors to develop the land and build the homes.

 

The jobs in the building trades pay fairly well, and the employees and their families have room in their budgets for discretionary spending that creates even more jobs at the local retail level. The workers also need plenty of services from the local area, and homes for themselves. New homes need lots of materials and appliances, and all that purchasing creates another trickle down-flow through the local and national economy.

 

The National Association of Homebuilders reported that in 2015, 394 jobs were created for every 100 single-family homes built. Building these homes generated $28.7 million dollars in the private sector and $3.6 million in revenues for local governments. Once built, those families who occupy them continue to contribute to the well-being of the local economy by generating 69 jobs and $5.1 million in private and local revenues every year.

 

Apartments also have a direct impact on local economies, but not to the extent that for-sale properties do, especially after they’re constructed. Individual home owners are far more likely to make discretionary improvements compared to apartment owners who are interested in short-term profitability rather than long-term investment value or comfort.

 

The Role of Supply and Demand

The laws of supply and demand exert a heavy influence in the residential real estate market. When the economy is booming and jobs are being created, real estate values go up. Even when job growth slows, real estate values typically continue to climb in markets where insufficient land availability or the lack of new home inventory increases the demand for homes.

 

Appreciation Rate Trends in Charleston

Based on data collected by the NAR, the median price of homes sold in the Charleston area from 2012 to 2016 rose by $50,000 to $240,000 in 2016. Over the four year period, this increase leveled out to $12,500 annually. The U.S. Housing and Urban Development (HUD) reported that the average home price increased four percent from 2016 to 2017.

 

Bottom Line

Homeownership forms the foundation for economic well-being and wealth-building in the U.S. Homeowners benefit directly by building equity by owning their own homes, as do all the others who gain from its presence long after the home’s been built.

 

Home ownership is a vital metric when it comes to the American economy.

 

If you’re considering buying or selling in Charleston, let’s talk about what’s available today!

How Will Interest Rate Changes Affect Real Estate Decisions This Year?

As you may have seen in recent national news,  the Federal Reserve will be increasing interest rates. These interest rate increases are predicated on the continuing healthy economy, low unemployment, and the overall good health of the market . This increase in short-term interest does not target specific industries, however it does affect several that use loans as a part of daily business activities. One such industry is the real estate market. The Federal Reserve’s actions can affect adjustable rate mortgages and to a lesser extent fixed-rate mortgages. These effects are as follows.

 

Effect On Mortgages

  • Adjustable Rate Mortgages: These will be affected in the following ways. Due to the fact that adjustable rate mortgages are reviewed annually any increase in rates will, in turn, increase the amount of interest due monthly. Note that there may be a delay in this due to when refinancing occurs, but the changes may be notable depending on the value of the loan itself.   
  • Fixed Rate Mortgages: Please note that this refers to new fixed-rate mortgages and not existing ones. Fixed rate mortgages will be far more resistant to federal interest rate changes. When viewed over the long term (fixed rate mortgages being 15 or 30 years long) these rates tend to follow inflation rates more than they do federal interest rates. Also, depending on how the market responds to the Federal Reserve being viewed as controlling inflation with these measures, the interest rate of 30-year mortgages could go down.   

 

Real Estate Purchasing Considerations

Now certainly an increase in overall real estate cost is nothing to be pleased with. That being said, while it should be carefully considered when making real estate discussions it shouldn’t be overvalued in the overall process. Here are four considerations to keep in mind.

 

  • The Long-Term Value Of Real Estate: A key aspect of real estate that makes it an active investment is that it tends to increase in value over time. In many cases, the increase in the value of a property or home will greatly surpass any interest rate increases.   
  • Real Estate Protects Against Inflation: Due to real estate’s tendency to appreciate in value, it serves as useful investment tool when held over a long period of time. When compared to other investment options that are more flat in terms of their overall return, real estate offers strong value and can be used for portfolio diversification.
  • This May Not Be The Best Time For Refinancing: Interest rate increases can make refinancing an existing fixed rate mortgage a less attractive option. However, this depends greatly on your existing financial situation. Even with higher interest, refinancing may still be desirable if you have a specific goal in mind such as shortening the length of your mortgage loan.     
  • Other Market Effects: An increase in interest rates may discourage some marginal buyers from purchasing real estate. This could reduce overall real estate costs as there are more homes for sale in a market with less interested buyers. There are also industry experts calling for an increase in construction to keep rate increases low.  

 

Final Thoughts

The Federal Reserve’s increasing of interest rates will have an effect on real estate purchases. Those most affected by these changes will be ARM holders, those seeking to secure new loans, and homeowners seeking to refinance existing fixed-rate mortgages. Real estate nonetheless remains a solid investment with a long-term growth pattern and an increase in federal interest rates should not deter you from making well thought out and researched real estate purchases.    

 

If You’re Planning A Real Estate Decision, Let’s Talk About What’s Best For You Today!

What Are The Top Home Problems That Can Ward Off Potential Buyers?

One of the busiest times of the year for home buying is just a few short months away. If you’re considering selling your home, you’re likely wondering what are the top possible home problems that can ward of potential buyers. Be aware that preparation is everything. Now (and not later) is the time to address the issues around your home that could hamper your efforts to sell to eager buyers. While there may be more obvious items like termites or the presence of radon being deal breakers,  there are also other issues that might not be so obvious to you. Before listing your home for sale, be wary of these nine issues that could scare off potential buyers.

 

  1. Odors in Your Home

You might not notice it, but if your home has an unpleasant smell from pets or cigarette smoke, that can discourage a potential buyer the moment they walk in the door. While many will say first impressions are everything, this is absolutely no different when presenting your home to new potential buyers. What’s worse is if you have a possibly musty smell, it can be a sign you might have a mold problem that should be investigated (or will require doing so). Having your carpets professionally cleaned or giving the interior of your home a fresh coat of paint before listing your home can cut down on some odors.

 

  1. You Have Wallpaper

Wallpaper is typically more of a personal taste. A potential home buyer may look at the wallpaper you love and envision a lot of work ahead. If you’re selling your home, get rid of your wallpaper and be sure to replace it with a neutral paint color.

 

  1. Roof Damage or Old Roof

If your roof is at or near the end of your lifespan, this could be an absolute deal breaker for potential buyers. Damaged shingles, missing shingles or multiple layers of shingles from previous re-roofs could cause a buyer to think twice about making an offer on your home. Replacing or repairing your roof can make your home more attractive to potential buyers.

 

  1.  Water Stains

Even if your home has been inspected for mold and is completely free of it, water stains on walls or ceilings can scare off buyers. This can be prevented by covering up water stains with a fresh coat of paint.

 

  1. Signs of Gutter Damage

Damaged gutters can scare off potential buyers because there could be water or foundation damage to your home. Routine maintenance and inspection can alert you to needed repairs. So, before listing your home, make sure to check out your gutters and make repairs.

 

  1. Cracks in Walls and Foundation

If you have cracks in your walls and foundation, your home could have a structural issue. Before listing your home, you will want to have these issues inspected. You will also want to be prepared with a plan to repair any structural issues if any are found when the home inspection is done.

 

  1. Older Kitchen Appliances

Potential buyers hope to keep their immediate out-of-pocket expenses as low as possible when moving into a new home. They might expect to buy a new refrigerator, but not an entire kitchen’s worth of appliances. If your stovetop/oven or dishwasher is outdated, it could be worthwhile to update them with new appliances.

 

  1. Old Windows or Doors

Doors or windows that creak, get jammed or look shabby can turn off potential buyers. It might not be on the top of your list because of the expense, but new windows and doors could give you a 50 – 80 percent return on your investment. If that’s not in your budget, at least make repairs to stop creaking and jamming. This also goes without even mentioning the potential savings made through possibly reducing energy loss through your home, which may occur due to Charleston’s hotter springs and summers.

 

  1. Your Listing Price is Too High

Setting your price too high for your neighborhood can discourage potential buyers and keep your home on the market longer. Consult with your realtor to determine what a truly fair (and smart) asking price is for your home.

 

If You’re Looking To Learn How Much Your Home May Be Worth, Get Your Free Home Evaluation Here.

 

What Will Be The Top Issues For Home Buyers And Home Sellers In 2018?

What-Will-Be-The-Top-Issues-For-Home-Buyers-And-Home-Sellers-In-2018?Under normal conditions, forecasting the performance of the upcoming housing market uses recent data about the activity over the last few years. New home starts, price increases, days on market and the strength of the local employment all factor into the next year’s predictions.

The new year may be a bit different, however, since the changes to the federal tax code target the deductions that historically make homeownership so advantageous. Over 2018, experts predict that sales in the highest priced segments may slow in response to the new tax code and probable interest rate hikes.

Local Economy

Anchored by military and manufacturing employment, there aren’t any foreseeable bumps in the road for the Charleston economy during 2018 that will affect the housing market.

Interest Rates

Fed watchers expect the Federal Reserve to raise interest rates during 2018 that will bump up mortgage interest rates from almost four percent to five percent. Such an increase will cool the housing market across the board.

The Housing Market

After a decade of solid recovery, Charleston’s housing market may start to slow, but not for reasons associated with the health of the housing market or the local economy. The impact of rising interest rates and the tax law changes are more likely to inhibit sales than local conditions.

In 2017, the housing market statistics for greater Charleston indicate a robust housing market. The days on market fell from 60 in 2015 to 58 in 2016, and averaging 55 days in 2017. The months of inventory have been declining as well to just 3.3 in November 2017, compared to 4.5 during November 2016.

The median sales prices rose from $240,000 to $250,000 in a year’s period starting in November 2016.  The average price stood at $321,015 in November 2016, and increased to $339,008 in November 2017. The large disparity between the median and average values indicates that the majority of homes in the market have values around $250,000, but there are a few homes priced significantly higher that push the average a bit beyond the median.

Tax Changes

While interest rate changes aren’t yet clear, the fact that the tax code for 2018 changed for homeowners is certain. Most experts expect the housing market to slow, especially in locations with high end primary and second homes. Coastal South Carolina and Charleston has its share of both kinds, and under the new tax laws, it may be vulnerable to these corresponding new decisions.

With caps on mortgage interest and state and local taxes, homeownership will be less appealing to first time buyers, especially millennials. Various studies have found that this generation is still somewhat shy about investing in real estate because they grew up and formed identities during the housing recession of the 2000s.

Another buyer segment that may shrink because of the tax code change is the second home market. The cap on the mortgage interest rate deduction, set at $750,000, covers both primary and secondary homes. This may inhibit some of the discretionary buyers from owning multiple properties.

Property taxes in the Charleston area are two percent higher for second or vacation homes than the rate for primary homes. Add that to the cap on state and local tax deductions of $10,000, and discretionary buyers may buy less expensive homes or possibly even consider areas other than Charleston.

Bottom Line

Each person’s situation is different, and if you’re attempting to determine if 2018 is a good year for you to make a move in housing, you may want to consult with your accountant and a real estate agent. In the end, real estate will likely remain one of the best investments for wealth building and personal enjoyment.

 

If You Are Considering Buying Or Need Advice About The Market, Let’s Talk About What Options There Are Today.

How Can The Tax Plan Affect The Real Estate Market?

How-Can-The-Tax-Plan-Affect-The-Real-Estate-Market

If you’ve been watching the news lately, you might have heard some items about the tax plan currently being proposed in Congress and what it’s possible effects could be on the real estate industry. There have been warnings of decline in home prices echoed by the National Association of Home Builders and National Association of Realtors. The two bodies cited the expensive coastal markets as some of the places that could feel the effect of this proposed tax plan.

 

New York And California

However, the tax plan could have an overall minimal impact on average Americans due to its long-term strategy (don’t get all doom and gloom just yet). Many homeowners may waive their mortgage due to the doubling of the standard deduction. Notable places like the Bay Area in Southern California and New York will feel the effects of the mortgage deduction cap (luckily enough for Charleston though). If homes in these areas drop in value, it could impact the equity of homeowners and may even become a reality if these homeowners decide to sell.

 

Bank Solvency

If this plan affects overall bank solvency, the hard impact will be felt by the homeowner as well as the banks. The removal of a local tax deduction, as well as doubling the average minimum deduction will lead to home values surpassing the $800,000 mark.  The tax reform could shrink the total number of prospective homeowners due to the effect of the mortgage deduction. The plan, however, does not touch on the current owners who will carry on with the $1 million old tax cap.

 

Real Estate Lobbyists

The question in most real estate lobbying groups mind is; will this be a burden to the middle class? Jerry Howard, the National Association of Home Builders chief executive officer, says that the tax plan could lead to a recession in housing and purchasing a home could become even harder. According to Aaron Terrazas, the senior economist at Zillow, retailers will feel this effect, but not certainly in declining home values.

 

Market Corrections

Homebuyers will be impacted irrespective of the real implications of the tax plan. This will be in the areas of the housing markets whose market correction ought to have taken place. A single-family home’s median price in San Francisco goes beyond $1 million. This is ten (yes I said ten) times higher than the median household income, making it extremely difficult to sustain such a vast metro level disparity.

 

Overall

Harvard economist Edward Glaeser has for the longest time favored the reduction on mortgage interest deduction and also likes part of the proposed tax plan. He is however concerned that retaining the current deductions for homeowners could hinder how Americans move to more classy homes as well as to cities where there are prospective job opportunities. Edward posits that this will effectively become a tax when one is selling a home.

 

The president of the NAHB Willian E. Brown signaled that they wouldn’t go down easy. William says they are in the middle of reviewing details of the tax plan which appears to confirm a number of their concerns. He further adds that nullifying or doing away with homeownership tax inducements will risk home values and middle-class homeowners.

 

The good thing for the real estate industry will come from reducing the mortgage deduction as well as weakening it’s sustainability. The results will therefore be the regular market forces affecting the housing market. Most importantly, if taxes for the middle-class renters are reduced, it will fast-track their ability to save enough money to enjoy the benefits of buying a new home. One too few people will benefit from mortgage interest rate deduction. For the housing market to fully benefit, a massive decrease in taxes will be required to take place.

 

If the proposed tax plan passes is passed by the Congress, financial planning of most Americans will have to be corrected.

 

If you’re wondering how the tax plan could affect your real estate decisions; let’s talk today!

 

If You’re Wondering How The Tax Plan Could Affect Your Real Estate Decisions, Let’s Talk Today.

How Can I Sell My Home Faster?

How-Can-I-Sell-My-Home-Faster?

Is it like pulling off a miracle when you sell your house within a month? Now, while not all real estate markets in the United States of America have fully recovered from the effects of the Great Recession, Charleston, SC is an area that appreciates perpetually. You may love your home as of right now, but a time may come when you’ll want to sell it and move on accordingly. Don’t allow yourself to learn how to sell in a painful way if others know how to sell your home faster. A great real estate agent will be able to consult you on the process, the market, and sell your house well.

 

Statistics indicate that the average family home takes 65 days to sell, but the number can vary depending on a variety of factors. Staging tricks like displaying beautiful fresh flowers, painting rooms with neutral white color, or placing new couch pillows will not always entice buyers (after all, they are likely seeing several beautiful homes). Here is what will help you sell your house faster, but be sure to get yourself prepared as the following tips are not always easy or fun. You have to be committed.

 

  1. Storage Unit

A potential buyer is not interested in your old collection or favorite magazines. Be sure to pack them up and get them out of the house. Clean and get rid of anything you wouldn’t need for the next two months from the closet, top shelves, and attic. All old furniture should get moved, especially those that convey “hoarding” or any adjectives that even come close to the word “clutter.” Without considering the energy used, a typical two or three bedroom house will cost approximately $125 to fit the excess collection in a 10’*20’ storage unit.

 

  1. Amend Everything

Sounds impossible? Be sure to repair the obvious items that catch the eye such as:

 

  • Rotten wood
  • Peeling paint
  • Broken windows
  • Running toilets and damaged faucets
  • Stained floors and carpets
  • Broken lights
  • Damaged electrical switches
  • Damage in the Attic from insects like termites
  • Gutters or any crawl spaces that leak

 

Now be sure to not forget the curb appeal. It is standard human psychology to always be impressed by what we first see in our interactions with people, let alone a home. Be sure to set the right tone with your buyers by giving a great first impression!

 

  1. Upgrade The Bathrooms

You may need to save more or stretch your budget to accommodate an extra $1500-$2000 to update your bathroom. Would you love to take over a used old bathroom? The least you can do is the following:

 

  • Buy brand new toilets
  • Get an up to date shower head such as an aquarium or full-bodied shower panel
  • Re-tile any grungy and old-fashioned shower walls and floors

 

Match the hardware between the faceplates, plumbing fixtures, and the lighting. All should get rubbed with a bronze or satin nickel finish. With a touch of new and fresh towels, recommended favorite skin care products, and a loving steam orchid; your bathroom will look better than even a private spa.

 

  1. Right Pricing And Get Over Your Pride

Ever wondered why some houses stick around forever  on the selling list? Never allow your ego to determine your home’s sale price.  It is not about what amount your neighbor sold for or your imported décor from Paris or London. It’s about a particular buyer in the United States of America (aka, its never about what you want or like, it’s the audience you’re playing to. In this case it’s the potential buyers). The bidding era is long gone. Be sure that you are prepared for the corresponding emotional ups and downs that come along with the process.

 

If you look into the above points and implement them before announcing your home for sale, it’s a clear shot that no sooner than when you present it for sale that it will also sell. Note that maintaining a clean house and having it in an always-ready-for-a-showing state is an uphill task, especially with kids and pets around. If you have an extra home and an accommodating work schedule, you might want to move into that other house temporarily. You can also consider moving in with family members, friends, or rent for a short while to allow your home to look perfect at all times for buyers.

 

If you’re thinking about selling, let’s talk about how much your home is worth.