Zatopek Properties - Real Estate News: January 2018

Wednesday, January 24, 2018

Cost vs. Value Report

Every year Remodeling Magazine produces their Cost vs. Value Report*: http://www.remodeling.hw.net/cost-vs-value/2018/

This is a valuable tool in every homeowners toolbelt when trying to determine the recaptured costs of updating and/or remodeling their home for resale value.

Topping the list in the midrange homes is Insulation. This is often an area that is totally overlooked, mainly because it is not a cosmetic upgrade that can be immediately seen. However, the cost to add insulation, ventilation, radiant barrier, etc. is minimal. You not only see the savings in utility bills every month, but you typically can recoup the majority if the cost in resale!

We recently added 4 inches of fiberglass blown in insulation in the attic, added two solar powered attic fans (which we will be able to use for a tax rebate), added an insulated attic door cover, and had radiant barrier sprayed on the underside of our roof deck. The total cost was very reasonable, and the work came with a Lifetime Transferrable Warranty! We used Attic Innovations, whom I would highly recommend: http://www.atticinnovations.com/

Many other projects, such as bathroom & kitchen remodels are always high on the list. But a couple other low-cost items (relatively speaking) that many homeowners fail to recognize as cost vs. value items are Front Doors and Garage Doors. Replacing your front door with a high-end fiberglass or steel door adds a dramatic affect to the curb appeal, as well as a high-end wood looking Garage Door!

Find us at: www.ZatopekProperties.com

Notices:

Texas Real Estate Commission Consumer Protection Notice

Information About Broker Services

* The information is copyrighted, so download your own copy of this invaluable report at: http://www.remodeling.hw.net/cost-vs-value/2018/

Tuesday, January 16, 2018

I’ll Never Pay More than List Price!

I’ll Never Pay More than List Price!

Many homebuyers are not willing to pay more than the seller’s asking price, and who can blame them. Because everyone knows that sellers always list their home for more than they really want to leave a little “wiggle” room, right? WRONG!

According to Zillow, buyers in 2017 paid more than the asking price 24% of the time for all U.S. home sales — a 6.2 percentage point increase from 2012!*

In Houston, 32.6% of all home sales in 2017 were sold over list price with a median of $9,796 over the asking price!*

So why would anyone pay more than list price? Several reasons, low inventory of available homes has been the number one contributing factor. As a buyer, you have selected the area you’d like to live; maybe because of a particular school district, or proximity to work, etc. Therefore, you are in competition with hundreds of other buyers that are just as qualified to purchase a new listing. In an effort to leverage your offer and more it more attractive, you choose to pay a premium.

Absolutely nothing wrong with making an offer more than list price, as long as your real estate agent has done their homework for you. A competent real estate agent should prepare a CMA (Comparable Market Analysis) which should help you decide if the property is priced fairly. With the increasing prices in the Houston area, a premium price may be worthwhile and justifiable.

So if you can justify your offer, don’t be afraid to offer more than list price for the home you want. If you don’t, you may end up with a home you really didn’t want, or worse yet, no home at all!

*Find a full article and table at: https://www.inman.com/2018/01/11/how-high-will-homebuyers-go/?utm_source=dailyheadlines&utm_medium=email&utm_campaign=localnewsletter&utm_term=&utm_content=654853_national_textlink_14

Tuesday, January 2, 2018

2018 Tax Cuts and Jobs Act Summary

2018 Tax Cuts and Jobs Act Summary

Provided by: Monica J. Sedillo, CPA

The Tax Cuts and Jobs Act was signed into law on December 22^nd. Here is a summary of the tax law changes regarding Individual Tax Returns, which are effective with tax years beginning January 1, 2018.

Individuals

New Income Tax Brackets

Married Filing Jointly

i. 10% Not over $19,050

ii. 12% $19,050 - $77,400

iii. 22% $77,400 - $165,000

iv. 24% $165,000 - $315,000

v. 32% $315,000 - $400,000

vi. 35% $400,000 - $600,000

vii. 37% Over $600,000

Single

i. 10% Not over $9,525

ii. 12% $9,525 - $38,700

iii. 22% $38,700 - $82,500

iv. 24% $82,500 - $157,500

v. 32% $157,500 - $200,000

vi. 35% $200,000 - $500,000

vii. 37% Over $500,000

Head of Household

i. 10% Not over $13,600

ii. 12% $13,600 - $51,800

iii. 22% $51,800 - $82,500

iv. 24% $82,500 - $157,500

v. 32% $157,500 - $200,000

vi. 35% $200,000 - $500,000

vii. 37% Over $500,000

Married Filing Separately

i. 10% Not over $9,525

ii. 12% $9,525 - $38,700

iii. 22% $38,700 - $82,500

iv. 24% $82,500 - $157,500

v. 32% $157,500 - $200,000

vi. 35% $200,000 - $300,000

vii. 37% Over $300,000

Standard Deduction Increased

Single $6,500 - $12,000
Married Filing Separately $6,500 - $12,000
Head of Household $9,550 - $18,000
Married Filing Jointly $13,000 - $24,000

Personal Exemptions Suspended
Capital Gains Rates Set at 0%, 15% and 20%
New Deduction for Pass-through Entities (i.e. S-Corporation and Partnership Income)

20% deduction (with limitations)

i. 50% of W-2 wages, or

ii. 25% of W-2 wages paid plus 2.5% of the unadjusted basis of “qualified property”.

iii. Phases out beginning at AGI of $315,000 for MFJ, $157,500 for others

Child Tax Credit Increased

Increased to $2,000 per Child
Phase Out increased to AGI of $400,000 MFJ and $200,000 for all others
$500 nonrefundable credit provided for certain non-child dependents
Up to $1400 per qualifying child is refundable

State, local and foreign property taxes (including sales tax) are only deductible by businesses.
Miscellaneous Itemized Deductions Suspended (i.e. Tax Preparer Fee)
Limitation on total Itemized Deductions Suspended
Threshold for deducting Medial Expenses is reduced from 10% of AGI to 7.5% of AGI.
Individual Shared Responsibility Payment (Obamacare Penalty) has been repealed.
The Act leaves intact the 3.8% net investment income tax and the 0.9% additional Medicare tax, both enacted by Obamacare.
Alternative Minimum Tax Exemption Increased

For joint returns and surviving spouses, $109,400.
For single taxpayers, $70,300.
For married filing separately, $54,700.

Expanded Use of 529 Account Funds - “Qualified higher education expenses” include tuition at an elementary or secondary public, private, or religious school.

This is just a summary, and there are more changes that may or may not directly affect you. There will be clarifications coming from the IRS on many of the changes as the year continues. Please feel free to contact your personal CPA with questions, clarification, or validation.

Thanks to our personal accountant for supplying this valuable summary! If you do not have a CPA, or looking for a change, I highly recommend Monica - she has been our CPA for many years. She can be reached at:

Monica J. Sedillo, CPA

P.O. Box 3211

Lake Jackson, TX 77566

Phone: (979) 533-7760

Fax (979) 234-0523