Every time that Congress examines the tax code, Realtors get nervous, and we are probably not the only ones. Any change causes uncertainty, and any increase causes disruption for those who have planned transactions based on current laws. We have already been warned that certain taxes are going up next year, including the long-term capital gains tax. All we need to know really is how big the Federal debt has become, and we can logically conclude that something needs to be done in the not-too-distant future about raising Federal revenue. The short answer: Taxes will likely go up in some form, regardless of the outcome of the election. It's best to maximize income now, especially in the case of capital gains.
One tax change that has not been as widely broadcasted is the expiration on January 1st of the Recovery Act provision allowing people doing short sales to avoid being taxed on forgiveness of debt. The IRS Code considers income from any source, including the cancellation of money owed to someone, to be taxable, and it will go back to collecting those taxes in 2013. The short answer: If you are in the middle of a short sale, or you think you are eligible for one and you can do it very quickly, try hard to get it done before the end of this calendar year. If you are buying a property, try to take advantage of this by doing everything you can to get your sale closed in 2012, and perhaps you can negotiate for part of this benefit to come to you in some way, by lowering the price, or increasing what you may receive in closing costs.
Monday, September 24, 2012
Tuesday, September 18, 2012
Pearce Day of Caring
Last Friday was the latest annual Pearce Day of Caring. It's my favorite day of the Pearce year, and this year was no different. We met at Connecticut Hospice for the second year, and again did all kinds of indoor and outdoor work. We enjoy the chance to give back to a non-profit that does so much good in our region for so many patients and families, and it gives us the feeling of improving the lives of those people also.
It was a beautiful day, and the CT Hospice is a gorgeous setting. The agents and staff work like dogs, though, and aren't spending much time looking out at the Sound, until we finish and gather for pizza. I'm always so proud of our team, and never more than on Day of Caring. They are there because they want to be, and they show up in force to help out. Even those who are unable to do physical labor volunteer in the office, putting together programs for Hospice's annual memorial service for the families of those who have died at Hospice in the past year. As I said to someone I interviewed today, "It's who we are." And it's true.
It was a beautiful day, and the CT Hospice is a gorgeous setting. The agents and staff work like dogs, though, and aren't spending much time looking out at the Sound, until we finish and gather for pizza. I'm always so proud of our team, and never more than on Day of Caring. They are there because they want to be, and they show up in force to help out. Even those who are unable to do physical labor volunteer in the office, putting together programs for Hospice's annual memorial service for the families of those who have died at Hospice in the past year. As I said to someone I interviewed today, "It's who we are." And it's true.
Wednesday, September 12, 2012
News from the West Coast
I just returned from my biennial meeting of The Leadership Council. This meeting was in San Francisco, and, although the weather is actually better here, I found it well worth attending, as always. Around the country, brokers are feeling that the market is improving. Since prices are still declining in some markets (including Connecticut), that doesn't mean that real estate brokers are in clover, but more units are selling, and faster. Buyers seem less concerned that prices will drop a lot further, and they are moving on with their lives and finding homes. Mortgages continue to be a challenge for many, and the effects of the Dodd Frank bill will continue to hurt that industry for years to come.
Some markets are a great deal better, and San Francisco is one of them. There prices are rising, and units are flying off the shelf, despite a median price of over 1 million in the city itself. Many homes are selling for more than the asking price, and often before the marketing has really gotten underway. I was surprised that, for a place known as a high-tech mecca, the agents don't seem to use a lot more technology than we do. It still comes down to signs, open houses, broker to broker marketing, and word of mouth. The one real change is that the internet has largely replaced print advertising, although there is still some of that.
Two interesting side notes: I was the only person there without an iPad, which tells you something about why Apple alone is raising the NASDAQ results; and, two, this group, of owners from around the country, plan to vote for Romney over Obama by two to one. The real news there is that they went for Bush over Gore by 18 to 4, so you can see that the election will be close!
Some markets are a great deal better, and San Francisco is one of them. There prices are rising, and units are flying off the shelf, despite a median price of over 1 million in the city itself. Many homes are selling for more than the asking price, and often before the marketing has really gotten underway. I was surprised that, for a place known as a high-tech mecca, the agents don't seem to use a lot more technology than we do. It still comes down to signs, open houses, broker to broker marketing, and word of mouth. The one real change is that the internet has largely replaced print advertising, although there is still some of that.
Two interesting side notes: I was the only person there without an iPad, which tells you something about why Apple alone is raising the NASDAQ results; and, two, this group, of owners from around the country, plan to vote for Romney over Obama by two to one. The real news there is that they went for Bush over Gore by 18 to 4, so you can see that the election will be close!
Wednesday, September 5, 2012
Back to School, Back to Work
I've been out of school for a very long time now, and I don't even have kids in school anymore. Still, to me Labor Day seems like the beginning of the year, every time it rolls around. And I don't think I'm alone, because we can certainly notice it here in the office. One agent just said to me that he'd been spinning his wheels all of August, waiting for people to get back to work and also to their real estate issues. This year, even the weather made us want to get out of the swimming pool and back to our desks.
What does that mean for sellers and buyers? There is a noticeable uptick in the market from Labor Day through Halloween, and it's a window you should use to your advantage. If you trying to sell, this is when you need to get real about the price, the condition, and the cost of waiting versus selling now. If you are buying, you may find more product out there to choose from, and you may find it easier to make a deal, particularly if you are buying for cash. Whichever camp you're in, don't let the season pass you by. Get out there and let the cooler weather spur you on to action!
What does that mean for sellers and buyers? There is a noticeable uptick in the market from Labor Day through Halloween, and it's a window you should use to your advantage. If you trying to sell, this is when you need to get real about the price, the condition, and the cost of waiting versus selling now. If you are buying, you may find more product out there to choose from, and you may find it easier to make a deal, particularly if you are buying for cash. Whichever camp you're in, don't let the season pass you by. Get out there and let the cooler weather spur you on to action!
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