Wednesday, March 7, 2018

Spring is Home Selling Season!



Spring is Home Selling Season! 

To maximize your price and minimize your DOM (Days on Market) there are some tasks you may want to complete before you place that “For Sale” sign in your yard. Many of the suggestions are simple, common-sense items, others will require some time and investment; however, you will reap the rewards when a buyer proclaims, “This is the one!” 


Eight Simple Tips when preparing your home when selling:

1.       Curb Appeal:  Take a long, hard look from the street. Does it have curb appeal? Is it warm, inviting and well-kept? Keeping the lawn mowed, weeding garden areas, trimming unruly bushes, resealing the driveway and sweeping the porch will maximize the appeal.  Many researchers claim 60% - 80% of the buyer’s decision is made immediately upon curb appeal!

2.       Front Door:   Pay special attention to your front door.  Repaint or refinish, polish the doorknobs and locks, clean the glass, oil the hinges, and definitely make sure it opens/closes with ease.  Nothing sends up a red flag faster than a front door that needs attention or is hard to open!

3.       Paint:  If your home needs to be painted, this is the time to do it. The interior paint job should be fresh and clean and in a single, neutral color throughout. This is not the time to experiment with different colors.  The same goes for the exterior. Don’t forget shutters and windows. If your home has cement-board, vinyl, or aluminum siding, be sure it’s clean and in good repair.  Tell a potential buyer you took exceptional care of your property!

4.       Flooring:  Old, worn, or stained carpeting needs to be replaced.  If you have hardwood floors under old carpet that is in fair condition, tear up the carpet and refinish them; today’s buyers love hardwood floors.  Professionally clean the grout in tile floors.  Do not fall for the old myth “Oh, I’ll just give an allowance, so the buyer can make their own selections!”  Just do it!

5.       Minor Repair Items:  Make a list of all those little repairs you’ve been putting off, then fix each one. The hole in the screen, the loose doorknob, the doorbell that doesn’t work, the leaky faucet all should be repaired before buyers start looking at your home.  Don’t wait until you have a potential buyer, because you may be waiting a lot longer if you don’t fix them first!

6.       Appliances:  If your appliances are old and outdated, replace them.  Buyers don’t want to be faced with replacing appliances as soon as they move in, unless they get a HUGE discount on sales price!  New stainless steel or black appliances already in place will reap a greater ROI!

7.       Declutter & De-Personalize:   Clear your house of clutter and personal photos, etc.  Remove as much as possible from counters, shelves, and closets.  Clean, open spaces make your home look bigger to prospective buyers.  You’ve already made the decision to move, so start packing now!

8.       Clean, Clean, and Clean some more:   Your house should pass the “white-glove” test, daily!  Hire a professional cleaning service to come for an initial deep cleaning, and then have them come back at least once a week while your house in on the market.  Don’t forget blinds, ceiling fans, the top of the fridge, etc.  Everything should be exceptionally clean & smell good when a buyer makes that all-important first impression visit.

Compliments of;
Julius F Zatopek III – Broker/Owner

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Monday, February 19, 2018

What came first, the Chicken or the Egg?


We are all just “RENTERS!” 

Heard an interesting analogy of home-ownership the other day, or one could say it was a great rebuttal to the American Dream of “owning” your home. 

The speaker stated no one actually “owns” their home, or property of any kind for that matter, outright.  His rational stated that if you actually “owned” something, then it could not be taken away from you.  You would have to be willing to rid yourself of ownership by either selling or giving it away to someone else who would then gain ownership.

A participant in the audience argued that since he occupied his home without a mortgage or any other lien, then he did in fact “own” his home!  The speaker calmly asked if he lived in a state or municipality that levies property taxes on his home.  The participant answered yes.  The speaker asked if he lived in a neighborhood that had a home owner association (HOA) and if so, do they access homeowner association dues.  The participant again answered yes to both.

The speaker then asked the gentleman if he did not pay his taxes or his HOA dues, did either authority have the right to foreclose on his property; thereby forcibly & legally taking it from the so called “owner” without mutual consent.  And therefore, making the “owner” a “renter” and the authorities “landlords”!

The participant thought for a moment and realized the point the speaker was making, as he walked away wondering if he did in fact “own” his home.

Personally, I still like to think a person “owns” their home if they hold the deed to the property and the authorities mentioned only have an interest in the property allowing them to take action if the “owner” defaults.  But an interesting take on the subject, nonetheless.  It did make me stop and think.  Maybe there’s merit to the argument, maybe not.  But I have concluded that it is not worthy of time well spent – similar to caring if the chicken or egg came first!

Compliments of;
Julius F Zatopek III – Broker/Owner

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Wednesday, February 7, 2018

Removing the Stress and Uncertainty!

Removing the Stress and Uncertainty of Selling!

The way sellers currently sell their homes in Texas is about to be disrupted and enhanced, dramatically!  The same way Airbnb disrupted the hotel industry, the way Uber disrupted the public transportation industry, the way Amazon disrupted the retail industry – the Real Estate industry is about to see a much-needed overhaul & our team at Zatopek Properties is on-board and ready to embrace the concept!

The Real Estate industry is already being disrupted with the numerous iBuyer platforms in other locations around the United States and the UK.

In a nutshell, here’s how it works:
1.     You decide you want or need to sell your home
2.     You contact us (an iBuyer company) to evaluate your property and give you a fair opinion of market value
3.     We prepare an “on-the-spot” offer to purchase your property
Then,
·        You get to decide:
o   do you want to accept our offer and move forward, or
o   do you want to go through the traditional listing/selling process
  • ·        Based on your decision, we get your property sold with either of the above processes

The take-way: You’re in total control of your selling decision!

So just like you, I was skeptical.  I have spent the last several months trying to shoot holes in the iBuyer concept.  However, the more I researched it and the more I tried to discredit the concept; the more I liked it and felt it is a much-needed platform to give sellers an alternative to the current selling process by traditional real estate agents & the current processes used by real estate investors that are trying to buy property at a huge discount.

iBuyers do not heavily discount the purchase price nor do they charge a real estate commission.  Their offers usually include a service fee typically ranging from 6-14% and they typically buy the property “as-is”.  They will have the property inspected, but unless there are major property issues not previously noticed & included in their initial offer, they will typically not ask you, the seller, to do any repairs or updates.

So why would a seller consider selling to an iBuyer, rather than going through the traditional listing/selling process?
·        Reduces Stress of selling
·        Reduces Uncertainty of selling
·        Reduces Time (days on market)
·        Allows you the flexibility to determine your move out date
·        Allows you the opportunity to purchase another home without a contingency to sell yours (It’s already SOLD!)

However, this platform is not for all sellers. 

Some sellers still like having strangers walk through their home, look in their closets, open all their drawers, peer at their personal photos, etc.

If not, then give us a call today (281) 342-1997 so we can discuss in more detail.

Compliments of;
Julius F Zatopek III – Broker/Owner

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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!


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* 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!

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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 22nd.  Here is a summary of the tax law changes regarding Individual Tax Returns, which are effective with tax years beginning January 1, 2018.





Individuals
  1. New Income Tax Brackets
    1. 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
    1. 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
    1. 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
    1. 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
  1. Standard Deduction Increased
    1. Single $6,500 - $12,000
    2. Married Filing Separately $6,500 - $12,000
    3. Head of Household $9,550 - $18,000
    4. Married Filing Jointly $13,000 - $24,000
  2. Personal Exemptions Suspended
  3. Capital Gains Rates Set at 0%, 15% and 20%
  4. New Deduction for Pass-through Entities (i.e. S-Corporation and Partnership Income)
    1. 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
  1. Child Tax Credit Increased
    1. Increased to $2,000 per Child
    2. Phase Out increased to AGI of $400,000 MFJ and $200,000 for all others
    3. $500 nonrefundable credit provided for certain non-child dependents
    4. Up to $1400 per qualifying child is refundable
  2. State, local and foreign property taxes (including sales tax) are only deductible by businesses.
  3. Miscellaneous Itemized Deductions Suspended (i.e. Tax Preparer Fee)
  4. Limitation on total Itemized Deductions Suspended
  5. Threshold for deducting Medial Expenses is reduced from 10% of AGI to 7.5% of AGI.
  6. Individual Shared Responsibility Payment (Obamacare Penalty) has been repealed.
  7. The Act leaves intact the 3.8% net investment income tax and the 0.9% additional Medicare tax, both enacted by Obamacare.
  8. Alternative Minimum Tax Exemption Increased
    1. For joint returns and surviving spouses, $109,400.
    2. For single taxpayers, $70,300.
    3. For married filing separately, $54,700.
  9. 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

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