Jul 10, 2020 | Real Estate Tips
If you’re thinking about putting the house on the market, or are simply curious about its value in the current economic atmosphere, it’s essential to get an honest assessment of its value. An overly inflated figure won’t hold up and will only turn potential buyers away.
It’s best to get a fair assessment in order to ask a reasonable price or avoid over-extending oneself when it comes to taking out a home equity loan. Consider these three key tips to get a true assessment of a home’s value.
Identify Positive Features About The Home And Property
When seeking an appraisal for a home, it’s important to look at the big picture. While the neighborhood and specific location are important, as well as the size and condition of the home, it’s also essential to tally up any improvements or upgrades. Any recent renovations are a plus that are sure to give a boost to a home’s value.
Outbuildings and swimming pools add more positives that will increase the initial value of a home. The most important thing any homeowner can do is to stay on top of repairs and give the property a facelift periodically to keep things fresh. This will be taken into consideration during an appraisal.
Pay Attention To The Competition
Whether homeowners try to estimate their home’s value on their own or bring in the professionals, it’s important to pay attention to the surrounding real estate. Take a close look at other properties in the area and their price tags when they come up for sale. It’s especially helpful to look at properties that compare in size and condition. From that point, the most expensive and least expensive homes should be tallied as well, providing a price range for the concerned individual’s home.
Think About Present Circumstances
Be sure to consider if the area is in a recession or showing a period of strong economic growth. If a home is located in an area that is booming, this will inflate the value of the home. It is all part of the law of supply and demand. When buyers are coming in droves, home sales will be ripe for the picking and homeowners can ask a higher price.
However, if the population is dwindling and people are migrating elsewhere because job opportunities have fallen, there is a much greater chance that the home’s value will decrease. For those who want to sell, the best bet is to strike when the iron is hot and put the house on the market during a period of economic strength. If the economy is failing, it may be necessary to wait or cut ones’ losses.
Act Now To Learn More
There is no better time than the present to contact a name you can trust in real estate. Discover all the ins and outs of assessing your home’s value, discuss your options, and find out ways to boost your property’s potential as you seek a reliable assessment.
Jul 9, 2020 | Real Estate Tips
Much to the frustration of taxpayers all over the country, the tax-filing season begins in January and runs through April 15 of each year. The year 2020 brought us many changes, including an extension on filing taxes. Taxes this year are due on July 15th. Are you ready?
As the current tax season approaches, it presents an opportunity to help tax-payers clarify their responsibilities and remind them of certain important tax deductions that may be available.
Filing Responsibilities
Every person in the United States is required to file their tax returns by July 15 so long as they have some form of qualifying income. Based on filing status, income and available deductions, tax-payers must file a 1040EZ, 1040A or 1040 (long-form for itemized deductions).
Qualifying income is generally defined as, but not limited to wages, commissions, miscellaneous income (rental, interest), investment income and alimony. These forms of income are reported on a periodic basis to the IRS and State governments by employers, banks, contract employers and/or other responsible parties.
The most common tax receipts that must be sent to tax-payers by January 31 are W-2s and 1099-Misc forms.
Calculating Taxes
While the IRS requires individuals to report all forms of income, they also allow certain living costs to be used as deductions to offset income in order to arrive at a “taxable income” number on which tax liabilities are calculated.
If a tax-payer’s deductions fail to exceed the combined statutory standard deduction,, they will want to file the 1040EZ or 1040A. If itemized deductions exceed this number, the 1040 becomes preferable.
Mortgage Interest Deduction
For a majority of tax-payers, the largest tax deduction available is usually mortgage interest paid on secured debt where the primary residence and in some cases second homes or rental property serve as collateral. In most of these cases, all interest paid during the year is deductible.
If the mortgages are large enough, the total interest paid will typically push the tax-payer into position to itemize deductions. It is important for tax-payers to read the rules related to mortgage interest deductions as they tend to be somewhat complicated.
Other Important Deductions to Consider
Once a tax-payer qualifies to itemize deductions, many other living expenses become deductible. Other prominent deductions include property taxes, charitable contributions, childcare costs, qualified moving expenses, certain work related expenses and certain medical expenses.
Prior to using any deduction, it is incumbent on the tax-payer to review deduction guidelines in order to determine applicability.
Jun 11, 2020 | Real Estate Tips
When you are a new homeowner, learning about your property can feel overwhelming. There are a number of systems in your home that require routine maintenance.
Knowing when to have system serviced will help keep your home running smoothly. From the plumbing in your home, to the heating and cooling, understand that each system may need routine maintenance from time to time.
Your Heating And Cooling System
To maintain comfortable air temperatures in your home, it’s important to keep your heating and cooling system up-to-date. If you have a whole home system, it should be serviced once before the heating season and once before the cooling season.
When you get filters changed, and your system serviced, you are less likely to have to deal with emergency repairs. In addition, your HVAC system will run more efficiently.
When You Have A Septic System
Waste water leaves your home either through the town sewer system or through a septic tank. If you have a septic system on your property, you need to have the system serviced every other year. Check the records of your septic system to see when it was serviced previously.
Address Plumbing Issues
A leaky faucet is a localized problem, while discovering that all of the drains in your home are draining slowly is systemic. You need to repair small leaks to avoid wasting water in your home, while systemic problems must be addressed by a professional.
If your drains aren’t working correctly, you may have a block in your main sewer line. Know where the main shut off valve is for the water coming in to your home in case of an emergency.
Electrical Needs In Your Home
Your home has an intricate electrical system that is controlled by an electrical panel usually located in your basement. When a circuit trips, you will need to reset the circuit breaker. If your home consistently has problems with a specific circuit, you’ll want to have the circuit checked by an electrician to see if it is overloaded.
It’s exciting to own a home for the first time. Once you understand the various systems in your home, it becomes easier to take care of your property. With good maintenance, you can help avoid emergency repairs to your home.
Your heating and cooling will be more efficient, and you won’t run in to problems with your septic system if you have one. If there is something you don’t understand in your home, call a professional to get the problem looked at.
Jan 23, 2018 | Buying Real Estate, Real Estate Tips, Selling Real Estate
I have had a lot of questions recently regarding the topic of marketable vs. insurable title. They are both terms of art, in that they are unique terms to the legal and title industry. They are not easily defined with comparable examples.
When a title is marketable it means that the chain of ownership (title) to a particular piece of property is clear and free from defects. And as such, it can be marketed for sale without additional effort by the seller or potential buyer.
In contrast an insurable title does, or may have a known defect or defects in the chain of title. However, with an insurable title, a title insurance company has agreed in advance to provide insurance against the defects ever affecting the ownership or value of the property.
If a property does not have a current, valid title insurance policy and there is a defect in the chain of title, then the defect must be cured or repaired before a seller can convey marketable title. If there is a current policy, rather than curing or fixing the defect, which can be very expensive and time consuming, the title insurance company may elect to insure against any problem the defect may cause in the future. That is, the insurance company agrees to fix the problem only when – and IF – it ever becomes an immediate problem. Some defects in title may never become a problem or threaten the value or ownership of the property. Title insurance companies, like any insurance companies are in the business of risk management, and whenever possible would rather defer the risk then to pay to address/correct it.
One of the biggest problems with insurable title is that a buyer of a property accepting insurable title (rather than marketable title) is taking a risk of their own. It’s not that the defects may ever threaten the value or ownership of the property, but that upon resale of the property the next buyer may not be as willing to accept the insurable title and may demand a marketable title.
Be sure that you know the type of title the seller intends to convey before you sign a purchase contract.
Nov 13, 2017 | Real Estate Definitions, Real Estate Tips
By Attorney Nicholas Thalheimer
Generally, when declarations of trusts are recorded at the Registry of Deeds, the trust document will identify and name successor trustees. However, some trust documents do not name successor trustees. This becomes problematic when the original trustee(s) of the trust passes away and there is no successor trustee named or appointed either by the deceased trustee, while they are still living, or in the body of the trust document itself. In circumstances where a trust is unrecorded, the only evidence of the existence of the trust may be a recorded Certificate of Trust, which is acceptable. However, if the trustee is deceased and there is nothing of record signed by the original trustee(s) in the form of a certificate naming, or identifying, successor trustees effectively the trust has no trustee of record.
For example, when an unidentified successor trustee alleges that he or she is the successor trustee and attempts to convey, or take other actions related to, real estate owned by the trust, there is a question of whether he or she is truly the successor trustee. This is commonly referred to as the “Stranger to Title” issue, meaning that simply recording a self-serving trustee certificate executed by that successor trustee is not sufficient to evidence that he or she is, in fact, the successor trustee. This raises a question as to true ownership of the property and authority of the successor trustee to act.
In this example, without recorded evidence of a named successor, being appointed so by the current trustee of record, or by the beneficiaries of the trust (if the terms of the declaration of trust allows for this), there is no way of confirming legitimacy of the person claiming to be a successor trustee. Without clear evidence identifying a successor trustee, anyone could claim to be a trustee and attempt to convey the trust property.
Trust Attorneys who draft these documents commonly argue that identification of a successor trustee doesn’t need to be recorded. However, from a title insurance perspective, there must be a valid written instrument in the chain of title that evidence a successor trustee.
Another common problem we often encounter are trustee deeds for consideration of a dollar or some other nominal consideration. Property of a trust cannot be conveyed for nominal consideration. Title insurance companies view this as a possible breach of fiduciary duty. Often you have to look to the body of the trust to determine whether or not a trustee has the power to gift or whether or not they have the ability to make nominal gifts or convey for nominal consideration because they are, in fact, as trustees, fiduciaries for the beneficiaries.
Luckily, there are solutions to these issues. An affidavit of the attorney who drafted the trust can be recorded along with the applicable provisions of the trust to prove the identity of the trustee and their enumerated powers or authority. Oftentimes the alleged successor trustee does not have the original trust or a copy of it. However, if the attorney who drafted trust has a copy, that copy or select provisions of it, along with an affidavit stating the identity of a successor trustee can be recorded.
If there is a successor trustee, the trust, itself, should contain language about how to appoint a successor trustee. Usually, the process is left to the direction of the beneficiaries. But this can be an issue as well where there is no clear identification of the beneficiaries. Most trusts are drafted with a reference to a schedule of beneficiaries. However, that schedule of beneficiaries is not usually recorded. The same attorney that drafted the trust or the original trustees may, have the schedule of beneficiaries.
Under that set of circumstances, the issue can sometimes be resolved by recording a document supporting the alleged successor trustee’s assertion that he or she is, in fact, the successor trustee. It all depends on the language of the trust.
The bottom line is that, as conveyancing attorneys, we have to rely on what is recorded in the chain of title to determine who the record owner is and what powers they have, or may not have. In cases where the property is held in trust, we cannot rely on self-serving statements of alleged successor trustees. This is the case whether the trust is recorded or not. We must a see a clear nexus between the purported trustee and the trust. And if a conveyance is made by the trustee for nominal consideration their power to do so must be clearly stated in the recorded title. Few trusts contain provisions for gifting or transferring title for nominal consideration and it is usually limited to estate planning or inter-family transfers.
Mar 22, 2017 | Real Estate Tips, Uncategorized
The most popular time of year to buy a home is in the spring, and this means that if you’re preparing yourself for getting into the real estate market, you may be experiencing a time crunch. If you’re wondering if you’ll be ready to put your home up for sale in time to take advantage of the season, here are few things you’ll want to think about.
Have You Cleaned Up And De-cluttered?
Spring is not only an optimal time to put your home up for sale, it’s also an ideal time for spring-cleaning! Instead of leaving all of the de-cluttering and clearing away to the time when you know you’ll be moving, get prepared by going through your stuff and discarding anything that you don’t want to move. This will not only make the packing up procedure more streamlined, it will also make the basic cleaning duties like vacuuming a dusting a little easier to carry out.
Are You Prepared To Move?
A home can sit on the market for a few weeks or months, and it can also sell on the first day, so you’ll want to have a game plan for moving beforehand. If you don’t yet have a place to stay, determine a plan for yourself and your family so that you can start looking for a home to invest in or at least rental property. You don’t want to lose out on a good offer by not being prepared, so make sure you know where you’re going before getting into the market.
Do You Know The Market Conditions?
Spring is certainly the most popular time to buy, but if your home isn’t priced right for the conditions of the market, it may linger longer than you’d expect. If you’re selling on your own, you may want to take a look at the MLS listings to determine what similar homes in similar areas are selling for. It can also be a great idea to utilize the services of a local real estate agent who will have background knowledge of the market and be able to do the tough negotiating for you.
With spring being the best time to sell, it’s important to de-clutter your house ahead of time and be aware of the market conditions you’ll be dealing with. If you’re about to put your home up for sale, contact your trusted real estate professionals for more information.
