Author: Igor Nastaskin
Tax Implications of Selling a House
Many homeowners will be expecting to gain a significant profit from selling their homes. However, there are tax implications associated with large capital gains from the sale of a home. Here are a few things to keep in mind for sellers who are curious about income tax rules regarding real estate sales. As always, you should consult a tax professional to make sure you are compliant with current tax laws. 1) Individuals can exclude profits of up to $250,000 of capital gains from real estate sales. Married couples who file jointly can exclude up to $500,000. 2) When using the home sales exclusion, homeowners must meet certain requirements. They must have owned the home for at least two of the last five years before the sale, and they also must have lived in the property for the last two of the five years before selling. Additionally, the home has to have been the seller’s primary residence for the last two of the five years prior to the sale. Finally, this exclusion cannot be used if it has been claimed within the last two years. 3) Usually, homeowners aren’t required to indicate the sale of a home on their income taxes. However, it must be included if they were issued a 1099-S by a real estate agent. Typically, sellers can avoid this by certifying that they meet the ownership, use and timing specifications at the act of sale. 4) Unforeseen events such as a divorce, health changes and having to relocate for work can be qualifiers to receive a reduced or partial exclusion. Remember these helpful tips; they can be of great assistance when filling out federal income tax forms.
Need a General Contractor? Here’s How to Pick the Right One
Choosing the right contractors to work on your home is vital to the success of the project. Beyond making sure that the company and the team have the necessary licenses and permits to perform home renovations, it is equally important to consider other factors. 1. Collaboration is crucial. Successful projects result from the collaboration of homeowner and contractor. Get a feel for the contractor’s personality and management style during the interview process to see if you can get along in close quarters and with thousands of dollars at stake. 2. Due diligence is your duty. Perform background and reference checks for the chosen candidate. If possible, visit the contractor’s completed work or examine his portfolio. Interview at least three references, and ask questions about the contractor’s responsiveness and ability to adjust to issues and requested modifications as they arise. 3. Manage the subcontracting process. The contractor should explain what parts of the project will require subcontractors and how he plans to supervise the process. Remember that as the property owner, you are ultimately responsible for all aspects of the work performed in your home, including wages and materials that your contractor left unpaid. 4. Set realistic expectations. Whether it is for your construction budget, payment schedules or project deadlines, make sure that expectations are based on real world measures. Communicate these expectations with your contractors and listen to their input. Professional contractors can discuss project benchmarks objectively without over-promising. They provide input that would improve workflow, enhance the design or reduce costs. If they are focused on solutions, you know you have a winner.
Why You Should Self-Disclose Your Home’s Flaw When Selling
Selling your home can be enough of a challenge without you inadvertently undermining the process. When you want to sell your home to a buyer who is genuinely interested and qualified, you should disclose any and all flaws in your home. You may ask yourself why you would reveal information that could scare the buyer away. You should reveal your home’s flaws for these important reasons. Pricing Your Home When you disclose your house’s faults upfront, you can negotiate the asking price fairly. If a buyer finds out these faults on his or her own, that person could come back and demand that you lower the price. With this information provided upfront, however, the buyer knows what that price is buying and understands the reason for your pricing. Keeping the Sale Putting the faults of your home out in the open for buyers to consider can help you find someone who is genuinely interested in buying it, regardless of what those flaws may be. For example, if you have done some electrical work without a permit, you may still find a buyer who is capable of making the needed repairs or can live with the work you have already done. This information being available right away also helps the sale go through without legal challenges in the future. You can sell your house and move on with your life. You may question why you would let buyers know about your house’s flaws while selling your home. You should disclose this information for these important reasons. Have questions about pricing your home and disclosure of your home’s flaws? Contact me today. I’m happy to help.
5 Tips for Living in Your Home While It’s on the Market
Living in your home while you are trying to sell it can be a challenge, but these five tips will help you stay comfortable without compromising your chances of selling your home. 1) Sort through your personal belongings to get rid of the clutter. Keeping your space as open as possible will make your home look bigger to prospective buyers to make selling your home easier. 2) Consider keeping personal items in a storage unit while you make the transition. Photos, posters or knick-knacks that appeal to your taste may make it difficult for buyers to picture themselves living in your home, and getting these items out of the way can help you sell faster. 3) Keep your home ready for company each day to be sure that you are ready for a showing. While most home showings will be planned in advance, you never know when a prospective buyer will want to drop in on little notice. 4) Focus on keeping only the items you use on a regular basis in your home. For example, a few kitchen utensils, pots and just enough place settings to serve your family will suffice in the kitchen until you move. 5) Rearrange your furniture into a configuration that helps the space to flow logically. Buyers want to picture the possibilities that they can take advantage of after buying your home, and placing your furniture in a way that makes sense for the space instead of using what works for your family in particular is a more appealing package to present to prospective buyers.
The Ultimate South Bay Backyard
It might be December, but we’re lucky to live in a climate that allows for year-round outdoor fun. If you need ideas on how to make the most of your yard 12 months a year, here are some of our favorites. Add an outdoor kitchen. BBQs, grills, outdoor fridges, and sinks have inspired numerous parties and family-centered entertaining in luxury South Bay homes. Imagine making a feast for friends while watching your kids swim – pretty nice. They also add a great resale value to your home. Stone, brick, concrete, and more can be used to create a unique space just for your home. Outdoor lighting can make any backyard or front terrace seem magical. Think about a fire pit for extra illumination, making it so that the yard can be cozy even during a South Bay winter. Water features, such as fountains, waterfalls, and koi ponds can make your outdoor areas transform into a natural, relaxing, and peaceful respite from PCH traffic. The sound of trickling water is one of the most calming sounds you can find in nature. Finally, think of creating a native, drought-resistant plant garden. California poppies, Purple Nightshade, and various cacti all make wonderful additions to a garden on top of attracting butterflies. These native plants will help save water while making your property more beautiful. For resources on native plants in the South Bay, go to www.sccnps.org/plants-of-local-interest What are you favorite tips for making the most of your yard?
What South Bay Homebuyers Looked for in 2014
It’s been another great year living in the South Bay, so it’s no wonder that demand remains high in the area while inventory stays low. Throughout 2014 I’ve noticed a few key trends in what homeowners and buyers are now looking for in their homes. First, don’t underestimate the desire for South Bay residents to go completely green. The sustainable movement is alive and strong in the Beach Cities as residents strive towards an environmentally-friendly and smarter lifestyle. Green-energy homes are in top demand and will continue to be in demand in the new year. Energy-efficient appliances, solar power, excellent insulation, and native-gardens that use less water are the top desires for new buyers. Homes that have any of these energy- and money-saving features are going to be at the top of potential buyers’ lists. Buyers are willing to downsize for a great view, too. If there’s a glimpse of the ocean from a balcony, some buyers will be willing to forfeit an extra bathroom or a larger backyard. Homeowners enjoy efficiency and well-used spaces, so beachfront properties in Hermosa Beach and Manhattan Beach will be extremely popular. Baby boomer homeowners are also looking for homes that make sense for them to grow old in. For many, this means a trend toward downsizing, as well as taking into account the floor plan. For some, of course, there’s also the surroundings — there’s nothing like opening your backyard and walking out onto the sand when you hit retirement.
Redondo Riviera Homes Sell For Cash
Many markets throughout the United States are experiencing a major increase in the number of homes selling for all-cash, and the South Bay is no exception. In fact, a record number of home buyers are avoiding the mortgage process altogether and paying cash for Redondo Beach properties. Approximately 30% of buyers seeking home properties not for investment use, but to live in, are paying cash. Most of these all-cash buyers are retiring baby boomers, according to statistics from the National Association of REALTORS. Older home owners have decades of home equity and don’t want the hassle of the mortgage, so when they buy a new property they want to use all cash for the transaction. So many baby boomers want to be close to the ocean in a neighborhood, like the Riviera, that is walkable and away from the hustle and bustle of Los Angeles living. If you have a Riviera home and are thinking of selling, contact me to find out how we can attract all-cash offers on your property while the buyers are out there and ready to make a deal.