Feb

15

New Health Care Reform Law

Posted by yourhometeam under For Buyers, For Realty Professionals, General Information, New Program

RECENT MISLEADING INFORMATION

The New Health Care Reform Law

                                                       A new tax legislation that was passed by Congress in 2010, is intended to generate an estimated $210 billion to help fund the new health care and Medicare overhaul.

                                                        This new tax will not begin until JANUARY 1, 2013 and could impose a 3.8 tax increase on some investment income.   What could this possibly have to do with Real Estate?     It will affect some real estate transactions, but not all.     The new tax is sometimes referred to as the œMedicare tax because the proceeds from it will be dedicated to the Medicare Trust Fund.  

                                                                                    The message we have been reading usually says that the 3.8% tax is imposed on real estate transactions¦..This can be quite misleading to the public as it doesn™t apply to all sales.   In fact, it probably applies to a very small percentage of sales.

                                                                                    The tax will be imposed on income from interest, dividends, rents and capital gains.   It is VERY IMPORTANT TO KNOW that it will only affect those individuals with an adjusted gross income (AGI) above $200,000 and couples filing a joint return with more than $250,000 adjusted gross income (AGI).  

                                                                                              Below are just two examples of the New Tax –

1.             CAPITAL GAIN:   SALE OF A PRIMARY  RESIDENCE

 Pat and Mary sold their primary (principal) residence and realized a gain of $525,000.   They have $325,000 Adjusted Gross Income (before adding the taxable gain).

The tax will apply as follows:

AGI Before Taxable Gain                                         $325,000

Gain on Sale of Residence                                   $525,000

Taxable Gain (Added to AGI)                              $25,000 ($525,000-*$500,000)

New AGI                                                                                              $350,000 ($325,000 + $25,000 taxable gain)

Excess of AGI over $250,000                          $100,000   ($350,000 – $250,000)

 Lesser Amount            (Taxable)                           $25,000   (Taxable gain)

TAX DUE                                                                                                     $950   ($25,000 x 0.038)

   *If Pat and Mary had a gain of less than $500,000 on the sale of their residence, none of that gain would be subject to the 3.8% tax.   Whether they paid the 3.8% tax would depend on the other components of their $325,000 Adjust Gross Income.

2.             SALE OF A SECOND HOME WITH NO RENTAL USE  

The Smiths own a vacation home that they purchased for $275,000.   They have never rented it to others.   They sell it for $335,000.   In the same year of the sale they have earned income (from other sources) of $225,000.  

 

The tax will apply as follows:

Gain on Sale of Vacation Home                                                   $60,000     ($335,000-$275,000)

Income from Other Sources                                                             $225,000  

New AGI                                                                                                                                $285,000   ($60,000+$225,000)

Excess of AGI over $250,000                                                                $35,000   ($285,000-$250,000)

Capital Gain                                                                                                                           $60,000

Lesser Amount (Taxable)                                                                             $35,000   (AGI excess)

TAX DUE                                                                                                                                           $1,330   ($35,000 x 0.038)

                                                                                                                       Source:   National Association of Realtors  

Keep in mind that there are many scenarios that could be played out¦.if you have specific questions about your investments and how the tax might affect you, I would advise you to seek the advice of your tax consultant.  

 

 

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Feb

15

FORT MILL RANCH HOME JUST LISTED

Posted by yourhometeam under For Buyers, For Realty Professionals, For Sellers, Fort Mill Homes, Listings, Reserve at Gold Hill

                                                                                                           

                                  JUST LISTED

            THE RESERVE AT GOLD HILL

705 Quicksilver Trail, Fort Mill, SC   29708

                                   $349,000

                                                                 

                                              4 Bedrooms,   3.5 Baths

            Bonus/4th Bedroom Up with Full Bath

                                             Gourmet Kitchen

                                                    Private Office

                                                  Formal Dining

                                         In-Ground Irrigation

                        Community Pool and Clubhouse

                                                   Fort Mill Schools

                                                     Close to I-77

 Perfectly maintained ranch home sits on private, wooded lot. Beautiful teak wood floors including in Master Bedroom.   Private office with french doors! Open gourmet kitchen with granite, refrigerator & double ovens!   Bay window in breakfast area & master bedroom provides natural light & view of woods. Lovely covered patio on back of home perfect for morning coffee and family gatherings.   Bonus/4th bedroom up with full bath!   Close proximity to I-77.   Fort Mill Schools, Swimming Pool Community.   Sellers paid $372,000- Great buy!

                                                                                                                                                                             

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Jan

16

DID YOU KNOW?

Posted by yourhometeam under For Buyers, For Sellers, General Information, Tega Cay Homes

Happy New Year!   I am very excited about the upcoming year and the opportunities that the real estate market will offer my buyer and sellers.   While the average consumer is quite knowledgeable when it comes to real estate, I thought I would write about some recent trends as well as some timeless real estate information.    

  •  Experts project prices to rise over the next 4 years reaching a cumulative appreciation of over 10% by 2015. (Source:   Macro Markets, LLC)              
  • 85% of the consumers who use the internet to search for a home think that photos are the most important source of information.   So having said that, when you are selling be sure your agent uses quality, professional photos that showcase the best features of your home.      These photos should be used as soon as the property hits the MLS.            
  • If a buyer is interested, they would have made up their mind within seconds after walking into a home¦¦staging, de-cluttering and de-personalizing is crucial.     Less is best!
  • When visiting an Open House the agent on duty is, at that point, representing the seller.   An Open House visitor who is interested in the home should not reveal personal information to that agent.   Revealing such information could jeopardize the buyer™s negotiating power.      
  • A Low Ball Offer is considered to be around 20% less than list price.  
  • The Top 3 Reasons a property sells is:       LOCATION, PRICE, and CONDITION      -    Some factors to establish market value not only include Recent Solds, but also:   COMPETITIVE LISTINGS, PENDING LISTINGS AND FAILED TO SELL HOMES.

  • Overall nationwide NEW Home purchases in 2010 were at the lowest level in 9 years “ down to 15% of all recent home purchases.

  • Nationwide the typical home purchased in 2010 was 1,780 square feet in size, built in 1990 with 3 bedrooms and 2 baths. (Source: NATIONAL ASSOCIATION OF REALTORS 2010 profile of home buyers and sellers)

  • In 2010, 50% of recent home buyers were first-time buyers¦.this was due to the government™s first time home buyer tax credit.

  • 23% of œFor Sale By Owner œsellers reported that getting the price right was the most difficult task “ which is why it is crucial to hire a professional real estate agent to assist with this task.    

  • In 2010, the average price per square foot of homes sold in Tega Cay, SC fell by 7%  over 2009. (Source:   Charlotte MLS)

  • In 2009 13% of the homes that sold in TEGA CAY, SC took more than 120 Days.   In 2010 that number increased to 43%.       (Source:   Charlotte MLS)

 

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Jan

4

“Cute as can be” Ranch for sale in Fort Mill, SC

Posted by yourhometeam under For Buyers, For Realty Professionals, Fort Mill, Fort Mill Homes, Listings, New Listings

                                                                                                                             352 Sand Paver Way

                                                                                                             

This darling ranch home is exactly what the first-time home buyer or down-sizer is looking for!   It is located in the Whitley Mills Subdivision just off of Pleasant Road in Fort Mill, SC.   The location makes it ideal for commuters to Charlotte, NC as it is just minutes from I-77 and I-485.  

It offers a great wooded view with a fenced in yard – Perfect for playtime or just relaxing!   The neighborhood is just across the street from the new Pleasant Knoll Elementary School.   Many homeowners simply walk their children to school!  

The community offers a swimming pool, clubhouse and sidewalks.   The home was built by Standard Pacific Homes in 2007.   Some of the features of this home include:

  • 3 bedrooms, 2 baths
  • Upgraded Master with garden tub
  • Eat-in Breakfast area
  • Hardwood floors
  • Gas Fireplace
  • Designer Paint colors
  • Fenced Back Yard
  • Wooded View
  • 2-car attached garage
  • Low county property taxes

For more information on the home you can contact me at kelly.cahill@allentate.com or 803.389.0080.   Or visit my website at www.allentate.com/kellycahill.

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Jun

11

JOB LOSS PROTECTION PROGRAM

Posted by yourhometeam under For Buyers, For Realty Professionals, For Sellers, General Information, New Program

It has been a while since I have posted anything, but I have been very busy.   I have just recently taken a new position as the Buyer’s Specialist with a phenomenal team. Our team, The Speed Group, is with Allen Tate Company in Lake Wylie, SC and we service all of York County as well as the Charlotte region.   I took the position because of the great opportunity for me as well as for my clients.   The Speed Group brings many years of exceptional client customer service in the Real Estate Industry!   But enough about me – the reason for my post is to let you know about a great new program that Allen Tate offers its clients.   It is the JOB LOSS PROTECTION PROGRAM.  

The program is an optional mortgage protection program that helps homeowners if they lose their job.   It is only offered to those sellers whose home is listed with Allen Tate.  

SELLERS – Sets you apart from other homes on the market and gives you “added value” to attract buyers

BUYERS –  Gives you greater confidence when purchasing your home and peace of mind

The plan will provide coverage for up to $1800.00 per month  and provide those payments for up to 6 months during the first 24 months from the date of closing.

The seller pays for the plan at no cost to the buyer!  There are other eligibility requirements such as being a full-time employee.   This great program is part of the HELP program administered by the Rainy Day Foundation.  

If you would like more information you can go to http://intranet.allentate.com/ContentDocuments/Job-Loss-Protection-Overview-Intranet.pdf.

Please feel free to contact me or any member of my team for  additional information as well.  

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Mar

15

FIRST TIME HOME BUYERS & THE TAX CREDIT

Posted by yourhometeam under For Buyers, For Sellers, General Information

Hey, first-time homebuyer: How does $8,000 from your Uncle Sam sound?

Want an extra $8,000?   If you™re a first-time homebuyer then we have a nice surprise for you.

Last fall, the Federal Government introduced a financial incentive to prospective first-time homebuyers ” an income tax credit of up to $7,500. The rules were simple: you must have been a first-time homebuyer (as defined by not owning a home in the previous three years) and you met certain income restrictions.

The new $8,000 tax credit is available to those who buy between January 1, 2009 and December 1, 2009. It™s not a deduction, it™s an actual credit.   Unlike the $7,500 first-time homebuyer tax credit introduced last summer; this does not need to be repaid.

First timers who qualify can make no more than $75,000 in adjusted gross income if they™re single or $150,000 if filing jointly. The maximum tax credit is $8,000 or 10 percent of the sales price of the home, whichever is less. Three years residence in the property are required. As always, check with your accountant for details and be sure to submit IRS form 5405 when you file your taxes.

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Mar

4

Fort Mill Ranked 10th Most Affordable

Posted by yourhometeam under For Buyers, For Sellers, Fort Mill, Regional News

BusinessWeek named Fort Mill the 10th most affordable town in the country.  

Even during the national recession, Fort Mill retains  its  appeal for being in the top list for “Best Affordable Suburb 2009″.   Fort Mill is a former mill town that is now considered a suburban hot spot.  

The magazine considered the affordability of suburbs around the country and chose one from each state that met their  criteria for affordability. Suburbs located within 25 miles of a major city with populations of 5,000 to 60,000 people and median incomes of $51,000 to $120,000 were considered.

The quality of education, crime rates, ease of commuting and the availability of green space were all  considered. Locales were penalized for poor weather, high divorce rates and lack of racial diversity.   BusinessWeek studied suburbs near the biggest city in each state to find where the best quality of life for your money is.  

The CEO of the Piedmont Regional Association of Realtors, which covers Fort Mill, says that the good schools, good economy, lower taxes, good housing prices, (in many cases less than in other areas), bring many people to the area.   He also says that our housing prices are only down about three percent.  

The magazine listed the No. 1 most affordable suburb as Pewaukee, Wis., a community of about 12,000 located about 20 minutes outside Milwaukee. Another Charlotte-area suburb, Cornelius, N.C., came in at No. 7.

I personally live in Fort Mill and love it for many reasons.   I, too, moved across the state line to live here because of the schools and the tax structure.    It is a great place to raise a family.  

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Feb

5

GUIDE TO BUYING A HOME

Posted by yourhometeam under For Buyers, For Sellers, General Information

Eight steps to buying your home

1. Decide to buy.
Although there are many good reasons for you to buy a home, wealth building ranks among the top of the list.  I  call home ownership the best œaccidental investment most people ever make. But,  I believe when it is done right, home ownership becomes an œintentional investment that lays the foundation for a life of financial security and personal choice. There are solid financial reasons to support your decision to buy a home, and, among these, equity buildup, value appreciation, and tax benefits stand out.

Base your decision to buy on facts, not fears.

  1. If you are paying rent, you very likely can afford to buy
  2. There is never a wrong time to buy the right home. All you need to do in the short run is find a good buy and make sure you have the financial ability to hold it for the long run
  3. The lack of a substantial down payment doesn™t prevent you from making your first home purchase
  4. A less-than-perfect credit score won™t necessarily stop you from buying a home
  5. The best way to get closer to buying your ultimate dream home is to buy your first home now (a great time to buy)
  6. Buying a home doesn™t have to be complicated “ there are many professionals who will help you along the way

2. Hire your agent.
The typical real estate transaction involves at least two dozen separate individuals “ insurance assessors, mortgage brokers and underwriters, inspectors, appraisers, escrow officers, buyer™s agents, seller™s agents, bankers, title researchers, and a number of other individuals whose actions and decisions have to be orchestrated in order to perform in harmony and get a home sale closed. It is the responsibility of your real estate agent to expertly coordinate all the professionals involved in your home purchase and to act as the advocate for you and your interests throughout.

Seven main roles of your real estate agent

A Buyer™s Real Estate Agent:

  1. Educates you about your market.
  2. Analyzes your wants and needs.
  3. Guides you to homes that fit your criteria.
  4. Coordinates the work of other needed professionals.
  5. Negotiates on your behalf.
  6. Checks and double-checks paperwork and deadlines.
  7. Solves any problems that may arise.

Eight important questions to ask your agent

Qualifications are important. However, finding a solid, professional agent means getting beyond the resume, and into what makes an agent effective. Use the following questions as your starting point in hiring your licensed, professional real estate agent:

  1. Why did you become a real estate agent?
  2. Why should I work with you?
  3. What do you do better than other real estate agents?
  4. What process will you use to help me find the right home for my particular wants and needs?
  5. What are the most common things that go wrong in a transaction and how would you handle them?
  6. What are some mistakes that you think people make when buying their first home?
  7. What other professionals do you suggest we work with and what are their credentials?
  8. Can you provide me with references or testimonials from past clients?

3. Secure financing.
While you may find the thought of home ownership thrilling, the thought of taking on a mortgage may be downright chilling. Many first-time buyers start out confused about the process or nervous about making such a large financial commitment.

From start to finish, you will follow a six-step, easy-to-understand process to securing the financing for your first home.

Six steps to Financing a Home

  1. Choose a loan officer (or mortgage specialist).
  2. Make a loan application and get preapproved.
  3. Determine what you want to pay and select a loan option.
  4. Submit to the lender an accepted purchase offer contract.
  5. Get an appraisal and title commitment.
  6. Obtain funding at closing.

4. Find your home.
You may think that shopping for homes starts with jumping in the car and driving all over town. And it™s true that hopping in the car to go look is probably the most exciting part of the home-buying process. However, driving around is fun for only so long “ if weeks go by without finding what you™re looking for, the fun can fade pretty fast. That™s why  I say that looking for your home begins with carefully assessing your values, wants, and needs, both for the short and long terms.

Questions to ask yourself

  1. What do I want my home to be close to?
  2. How much space do I need and why?
  3. Which is more critical: location or size?
  4. Would I be interested in a fixer-upper?
  5. How important is home value appreciation?
  6. Is neighborhood stability and priority?
  7. Would I be interested in a condo?
  8. Would I be interested in new home construction?
  9. What features and amenities do I wasn™t? Which do I really need?

5. Make an offer.
When searching for your dream home, you were just that “ a dreamer. Now that you™re writing an offer, you need to be a businessperson. You need to approach this process with a cool head and a realistic perspective of your market. The three basic components of an offer are price, terms, and contingencies (or œconditions in Canada).

Price “ the right price to offer must fairly reflect the true market value of the home you want to buy. Your agent™s market research will guide this decision.

Terms “ the other financial and timing factors that will be included in the offer.

Terms fall under six basic categories in a real estate offer:

  1. Schedule “ a schedule of events that has to happen before closing.
  2. Conveyances “ the items that stay with the house when the sellers leave.
  3. Commission “ the real estate commission or fee, for both the agent who works with the seller and the agents who works with the buyer.
  4. Closing costs “ it™s standard for buyers to pay their closing costs, but if you want to roll the costs into the loan, you need to write that into the contract.
  5. Home warranty “ this covers repairs or replacement of appliances and major systems. You may ask the seller to pay for this.
  6. Earnest money “ this protects the sellers from the possibility of your unexpectedly pulling of the deal and makes a statement about the seriousness of your offer.

6. Perform due diligence.
Unlike most major purchases, once you buy a home, you can™t return it if something breaks or doesn™t quite work like it™s supposed to. That™s why home owner™s insurance and property inspections are so important.

A home owner™s insurance policy protects you in two ways:

  1. Against loss or damage to the property itself
  2. liability in case someone sustains an injury while on your property

The property inspection show expose the secret issues a home might hide so you know exactly what you™re getting into before you sign your closing papers.

  • Your major concern is structural damage.
  • Don™t sweat the small stuff. Things that are easily fixed can be overlooked.
  • If you have a big problem show up in your inspection report, you should bring in a specialist. If the worst-case scenario turns out to be true, you might want to walk away from the purchase.

7. Close.
The final stage of the home buying process is the lender™s confirmation of the home™s value and legal statue, and your continued credit-worthiness. This entails a survey, appraisal, title search, and a final check of your credit and finance. Your agent will keep you posted on how each if progressing, but your work is pretty much done.

You just have a few preclosing responsibilities:

  1. Stay in control of your finances.
  2. Return all phone calls and paperwork promptly.
  3. Communicate with your agent at least once a week.
  4. Several days before closing, confirm with your agent that all your documentation is in place and in order.
  5. Obtain certified funds for closing.
  6. Conduct a final walk-through.

On closing day, with the guidance of a settlement agent and your agent, you™ll sign documents that do the following:

  1. Finalize your mortgage.
  2. Pay the seller.
  3. Pay your closing costs.
  4. Transfer the title from the seller to you.
  5. Make arrangements to legally record the transaction as a public record.

As long as you have clear expectations and follow directions, closing should be a momentous conclusion to your home-searching process and commencement of your home-owning experience.
8. Protect your investment.
Throughout the course of your home-buying experience, you™ve probably spent a lot of time with your real estate agent and you™ve gotten to know each other fairly well. There™s no reason to throw all that trust and rapport out the window just because the deal has closed. In fact, your agent wants you to keep in touch.

Even after you close on your house, you agent can still help you:

  1. Handle your first tax return as a home owner.
  2. Find contractors to help with home maintenance or remodeling.
  3. Help your friends find homes.
  4. Keep track of your home™s current market value.

Attention to you home™s maintenance needs is essential to protecting the long-term value of your investment.

Home maintenance falls into two categories:

  1. Keeping it clean: Perform routine maintenance on your home™s systems, depending on their age and style.
  2. Keeping an eye on it: Watch for signs of leaks, damage, and wear. Fixing small problems early can save you big money later.
Contact me about Purchasing a Home!

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Feb

2

BAXTER VILLAGE – MY FAVORITE NEIGHBORHOOD

Posted by yourhometeam under Baxter, For Buyers, For Realty Professionals, For Sellers, Regional News

                                                                                                                                                                                                                                                 

Baxter Village in Fort Mill, SC is a master planned community that not only offers beautiful homes but a lifestyle that is reminiscent of the Old South.   There is really no “earth shattering” news about Baxter, but I love this community so much that I wanted to write about it.  

Baxter Village has a smalltown feel that many other communities do not offer.   Located in historical Fort Mill, the homes mimic many of the old homes you will find in Charleston, SC.  (A city I love)   The community has sidewalks, tree-lined streets  and a trail network that links to parks and playgrounds.   There are over 500 acres of parks within Baxter.     Within the community you will also find an Elementary School (my son attends this award-winning school), a library, an Urgent Care Center, pools, tennis courts,a community center and the Baxter Family YMCA.   My Keller Williams office is located just next to the library.   At the heart of the community is Market Street.   Market Street was designed to look like the old Market Street in Charleston as well, and has a variety of shops, restaurants, a hair & nail  salon, wine shop and lots of other shops.    You can actually walk from many of the homes to Market Street.

The homes in Baxter all share the same  timeless architecture and detail.   Many have front porches that you can sit on in the evening while chatting with the neighbors or watching the kids play in the front yard. The builders include David Weekly homes, Saussy Burbank, S.E. Miller and Evans Coghill Custom Homes.  

Currently there are 28 homes on the market in Baxter ranging in price from $194,900 to $498,000 with a square footage range of 1200-4000 and up.   The average list price in the neighborhood is about $360,000.   One in particular is a home located at 1855 Second Baxter Crossing.

                                                                      1855 Second Baxter Crossing

         This home is within walking distance to Market Street and offers Easy Living!

                                                                          Highlights of the home are:

  • master on main
  • 3 upper level bedrooms
  • computer niche/room upper level
  • nicely landscaped patio with fountain and garden area
  • updated kitchen with tile and granite
  • hardwoods
  • Saussy Burbank built
  • 2400 square feet
  • fireplace
  • two-car detached garage
  • $348,000

                                                                             

                                                    You can click on the link below the see a virtual tour of the home!  

                                                         http://www.visualtour.com/shownp.asp?sk=13&t=1611150    

If you would like further information on this home please let me know.   I will be happy to assist you and if you can’t make it right away to view the neighborhood I can mail you a packet with everything you need to know about Baxter Village.   There are also commercial opportunities in Baxter that I would be happy to assist you with as well.  

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Feb

1

PRICING AND CODE OF ETHICS

Posted by yourhometeam under For Buyers, For Realty Professionals, For Sellers, General Information

In today’s market it is more important that ever before to use the expertise of a professional REALTOR.   There is a difference between a real estate agent and a REALTOR.   As a REALTOR  I am a member of the National Association of Realtors and as such  I am bound by a certain Code of Ethics and Standards of Practice.  

I have duties to my Clients and Customers, duties to the Public and duties to REALTORS.  

One of my duties is stated in the Standard of Practice 1-3.   It reads like this:

*REALTORS, in attempting to secure a listing, shall not deliberately mislead the owner as to market value.   Now you may be thinking in terms of misleading the owner as to setting the price higher in order to earn more of a commission.   But in this BUYER’S MARKET, you could also think of terms of lowering the price in order to produce a quick sale!

There are several things that would determine Market Value when determing the price of your home.   Most agents will prepare a Comparative Market Analysis (CMA).   This analysis uses the seller’s home as the subject property and three other comparable homes in the area/neighborhood as comparables.   There are other factors, in this BUYER’S MARKET, that should be considered in pricing your home.  

Looking at the ACTIVE homes in your area.   The Active homes listed are TRYING the market.   Consider the PENDINGS.   The Pendings have an offer on the table, but still not an accepted offer.   The SOLDS are just that-SOLDS.   These homes have created a CEILING  in a buyer’s market.  In a Buyer’s Market the CEILING creates the highest price that we should list  a  home (comparatively speaking).   EXPIREDS are homes that have tried the market, but haven’t sold due to one of several things-more than likely price. Of course, there are other factors that may bring about a price such as a foreclosure, or a short sale.   An experienced agent will do their homework when looking at other homes for comparables.   There are also other factors that will determine the market such as unemployment rate, inflation, economy, and interest rates (current and projected).

I would not be doing my clients any favors by pricing a home too high (it will sit on the market too long) or too low (my clients will not earn the most money possible for their home).   But ultimately it is up to the seller-I can only try to educate them as to how I have arrived at my suggested range of a price.   But if a home is not priced correctly, the buyer’s will simply go on to the next house.   As a REALTOR part of my job is to show the buyer that my listing has VALUE.  

The Code of Ethics helps both the seller and the REALTOR in setting the price of a home.   As a professional REALTOR and bound by my Code of Ethics,  I would not mislead my clients in determing Fair Market Value for their home.  

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