Sell or Remodel?

 

Should I sell now or remodel?  That's a popular question these days as the economy is beginning to improve.  Home sales have definitely increased and along with low inventories, prices are starting to go up also.

 

If you purchased during the height of the market, however, you probably still have a way to go before you will recapture a significant amount of equity lost during the recession.

 

These are some questions you should ask yourself:

 

1.  What is the primary reason that I would like to move?

2. If I did move, what would be the top 3 things that I would want in my new house that I don't have now?

3. If I could have at least 1 or 2 of those things without moving, would I be ok with staying here a few more years?

 

Remodeling can be expensive, but selling and then buying another home can be too.  I was in this situation myself recently and due to the recession had lost a lot of equity in my home.  I love my home, but there were things that I definitely would want if we moved out of it.  One of them was a decent master bedroom closet!

 

The closet in my master bedroom was miniscule to say the least.  I had always dreamed of having a huge closet and while I was dreaming about it, I envisioned a master suite that made me feel like I was on vacation.

 

After sitting down and crunching the numbers, I decided to do the remodel.  I now love my home and am content to stay for several more years.  My remodel was expensive, but even so, we are happy and believe that it would have cost us a lot more to move.

 

Everyone's situation is different so I encourage you to speak to a real estate professional who will tell you if you are over-improving for your neighborhood, guide you into choices that will not hamper a future sale and to give you a referral to a reputable and dependable contractor.

 

NancyPuder is the broker and owner of Signature Properties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome! 

 

 

 

 

 

 

Landlord Law Requires Disclosure

Landlords have a legal responsibility to disclose to a potential tenant if there has been a Notice of Default filed on the property.   


Over the years I have had a lot of working experience with both landlords and tenants.  What I have found is that some landlords feel disclosure is not necessary if their intention is to catch up the payments and reinstate the loan.  Their attitude is that it is unnecessary to inform the potential tenant since they are planning to catch up the payments and to keep the property.  Unfortunately, as most of us know, financial stress can lead to one-sided thinking and that is why this law has been established.


Under current law, if the landlord has received a Notice of Default,  it must be disclosed to the potential tenant, in writing ,before the tenant enters into a contract with the landlord. If the Notice of Default has been rescinded, then no disclosure is required. This law applies to any single family residence and residential units with one to four units.

Landlords in default should know that the law also states that if a landlord violates this disclosure law, the tenant can elect to void the lease. If voided, the tenant can recover one month’s rent or twice the amount of actual damages, whichever is greater, plus all prepaid rent, as well as any other remedies available. If the lease is not voided and the foreclosure sale has not occurred, the tenant may deduct one month’s rent from future amounts owed. The written disclosure notice as provided by statute must be in English, Spanish, Chinese, Tagalog, Vietnamese, and Korean. 

It is also important to note that a property manager will NOT be held liable for failing to provide the written disclosure notice unless the landlord has given the property manager written instructions to deliver the written disclosure to the tenant.

NancyPuder is the broker and owner of Signature Properties, a unique company that specializes in both Real Estate Sales and Property Management on the CentralCoast.  You may contact Nancy at Nancy@NancyPuder.com or (805)710-2415.  She always enjoys hearing from you!

 

 

 

 

The Big Question

 

What does it mean when we hear that home sales are up?  That is the big question from homeowners who purchased their home before the recession and are now thinking of selling.  Many are confused because the media reports upward trends one week and the seemingly same numbers fall the next.

 

 

Homeowners who have been waiting to sell their property are wondering if now is the right time to move forward.   They want to know is if their home value has increased to the point where they can regain at least some of the equity that they lost during the recession.

 

The truth is that it's been a rollercoaster ride for the past year or so, but most professionals in the real estate industry agree that the overall trend is a positive one.  Investors are scrambling to buy right now, but price and location are still a major factor.  

 

It's important to recognize that the numbers reported through the media can be fooling for many reasons.  Figures are often based on national information and sometimes conflict with your own local activity.  Some numbers reference a small faction like new home sales which only represent 6% of the housing market.

 

What to make of all this?  The housing market will be directly affected by the economy.  My opinion is that we are stabilizing, but we do have a way to go before we see any huge increases in value. 

 

It appears that home values have increased on the Central Coast by 5-10 percent over the past few months.  It is yet to be seen, however, if the increase in home values will be sustained and continue to gradually increase throughout 2013.  

 

NancyPuder is the broker and owner of Signature Properties, a prestigious real estate sales and management firm in Arroyo Grande, CA.  You may contact her at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome! 

 

 

 

2013 Real Estate Tax Update

If you are wondering what happened as a result of the fiscal cliff debate in Congress the past several weeks, here is the bottom line as it pertains to the world of real estate.

• Mortage Cancellation Relief was extended for through 1/1/2014.

• The deduction PMI or MIP (mortgage insurance premiums) for tax payers making below $110,000 is extended through 2013 and made retroactive to cover 2012.
 
• 15-year straight-line cost recovery for qualified leasehold improvements on commercial properties is extended through 2013 and made retroactive to cover 2012.

• 10 percent tax credit (up to $500) for homeowners for energy improvements to existing homes is extended through 2013 and made retroactive to cover 2012. 

• Permanent Repeal of Pease Limitations for 99% of Taxpayers Under the agreement so called Pease Limitations that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers.  These limitations will only apply to individuals earning more than $250,000 and joint filers earning above $300,000.  These thresholds have been increased and are indexed for inflation and will rise over time.  Under the formula, the amount of adjusted gross income above the threshold is multiplied by three percent.  That amount is then used to reduce the total value of the filer’s itemized deductions.  The total amount of reduction cannot exceed 80 percent of the filer’s itemized deductions.

• Capital Gains rate stays at 15 percent for those in the top rate of $400,000 (individual) and $450,000 (joint) return.  After that, any gains above those amounts will be taxed at 20 percent.  The $250,000/$500,000 exclusion for sale of principal residence remains in place.

• Regarding Estate taxes, the  first $5 million dollars in individual estates and $10 million for family estates are now exempted from the estate tax.  After that the rate will be 40 percent, up from 35 percent.  The exemption amounts are indexed for inflation.

Nancy Puder is the broker and owner of SignatureProperties, a real estate sales and management company in Arroyo Grande, CA.  You may contact Nancy at Nancy@NancyPuder.com or (805)710-2415 Your calls are always welcome!