1031 Deadline Date Relief for CA Wildfire Affected Exchangers

 Here is an article that I hope will help investors who lost property in the California wildfires.
Wild Fires
Revenue Procedure 2007-56 permits extension of IRC §1031 exchange deadlines upon issuance of an IRS Notice or other guidance permitting relief to taxpayers due to Federally declared disasters. Note that an IRS Notice of a Federally declared disaster is different from a FEMA disaster declaration, and the extensions are not available until the IRS publishes its Notice granting relief which specifically references Revenue Procedure 2007-56.

Regarding the California wild fires, the IRS has issued a disaster relief notice relating to Orange, Solano, Butte, Lake, Mendocino, Napa, Nevada, Sonoma, and Yuba Counties in California extending deadlines as a result of the wildfires that began on October 8, 2017. The notice extends deadlines falling on or after 10/8/2017 and on or before 1/31/2018 for 120 days or until 1/31/2018 (whichever is later). To be eligible for the extension the relinquished property must have transferred before October 8, 2017.

As always, exchangers should speak with their tax advisors to determine if they are “affected taxpayers” and if so whether they are eligible for the extension.

Since this is an evolving situation, exchangers (and their advisors) should check the IRS website for updates. A link is on our website: https://www.irs.gov/uac/tax-relief-in-disaster-situations.

IRS Disaster Relief Updates


IPX1031 – Choose the Experts


IPX1031 is the largest national qualified intermediary providing a full suite of services. As the nationwide leader in tax deferred exchanges, IPX1031 is here to offer you the best in service, experience and security. When you choose IPX1031 as your Qualified Intermediary, you can be confident that your exchange will be handled expertly and that your funds will be safe, secure, and available when needed. Contact IPX1031 to discuss your 1031 Exchange solution.

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Posted in 1031 Exchanges, Investors - Investment Income, IRS, NAR-National Association of REALTORS®, Real Estate - Sellers & Buyers, REALTOR®, Tax Basis, Tax Relief, Wildfires | Tagged , , | Leave a comment

5 Things Buyers Should Never Compromise On

Sure, compromise between the buyer and seller is part of the game when getting to closing. But there are some things buyers should never acquiesce—or they’ll likely regret their home purchase. Realtor.com® recently asked real estate professionals to weigh in on some of the top items their clients regret about the home they bought.

Read more: How to Prevent Buyer’s Remorse

1. The floor plan. It’s difficult and expensive to reconfigure a home’s floor plan. Sarah Garza, MRP, a real estate pro with Trident Homes Realty in Arnold, Md., suggests that if a home does not fit your buyers’ minimum criteria in terms of number of rooms and the flow of the main living areas, they should cross it off their list. “You can change a layout to make it an open floor plan, but it’s a lot more difficult to change the bedroom and bathroom count,” she says. “In the long run, you could end up having a lot of problems and taking on a really big financial undertaking.”

2. The school district. Even buyers who don’t have children—but wish to one day—should carefully consider their neighborhood’s school district. Encourage buyers to visit the school district’s website to get a map of its exact boundaries. “Often, agents will advertise a property as being near such-and-such school area but not necessarily specify the district, which can be very confusing,” says Tina Maraj, SFR, e-PRO, an agent with RE/MAX of North Orange County in Fullerton, Calif. “It can be a real eye-opener if a buyer closes, and they’re on one side of a main street that is the dividing line between the top-rated and the lowest-rate high schools.”

3. The neighbors. Buyers should be cognizant of the condition of neighboring homes, as it can affect their future resale value. “You can’t change the house in front of you or to the side of you,” Maraj warns. “And if there’s a barking dog every time you’re viewing the property, that’s another thing that you absolutely cannot change.”

4. The budget. Tell your clients to consider the expenses beyond just the list price. For example, they’ll want to factor in monthly mortgage payments, potential homeowner association dues, utility costs, and real estate taxes. A lender’s pre-approval will tell buyers how much house they can afford, but there other factors determine whether they’ll be financially comfortable. “I try to do a lot of pre-planning with clients about what they can really afford, as opposed to what the bank tells you,” says Mike Kessler, a broker with TSG Residential in Davidson, N.C. “You never want to be house poor.”

5. The commute. Buyers should make sure they are comfortable with the time it takes to get to work. They should drive the route between the home and their office at the time they’ll be commuting. “Sometimes, buyers fall in love with all the shiny bells and whistles of a house that’s an hour away from work,” Garza says. “I tell them, ‘I know it doesn’t matter right now because you really love this house, but that’s two hours every day that you’ll be sitting in the car and not enjoying your house. Is that worth it to you?’”

Source: “Don’t Budge: 7 Compromises You Should Never Make When Buying a Home,” realtor.com® (Sept. 21, 2017)

 

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SAFETY – First Thing To Consider

A couple years ago I posted this flyer on

SAFETY FIRST – When Your Home Is Listed For Sale…. 

This is so important I wanted to share it again and make sure you are safe NO MATTER WHO YOU ARE.

I also wanted to add a great website I found that will help you determine IF you need a Home Security System and posts some 2017 reviews for said systems.  I hope this will help give you peace of mind!  The Best Home Security System 

Also – Make sure you are aware of your surroundings when you are out of the house 

 

/SAFETY FIRST-JAN 2015

 

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4 Things You Really Wish Your Seller Knew

You don’t want to hurt your clients’ feelings. But undoubtedly there are a few things that pop up in the course of transactions that you wish sellers already knew, so that you could avoid having some awkward conversations with them. Real estate pros chime in at realtor.com® with some of the top things they wish sellers knew about selling a home, including:

Your home decor isn’t always perfect for selling.

“While your home may be beautifully decorated, it still looks like your home, not the buyer’s,” Teresa Stephenson, vice president of a residential brokerage at Platinum Properties in New York, told realtor.com®. Clutter, in particular, can make a home feel cramped. “You don’t have to pay to have your home staged, but if you don’t buy into the concept that ‘less is more,’ you’ll pay when it comes time to sell,” Stephenson adds.

Stop being so secretive with your agent.

Sellers need to disclose any problems with the property, like a broken air conditioner, leaky faucets, water damage, or termite infestation. “Don’t keep any of your home’s flaws from your agent because you are scared it might hurt your sale,” says Karen Elmir, founder and CEO of the Elmir Group in Miami. The listing agent is on the homeowner’s side, but she must be aware of what needs to be fixed or what could become an issue in a transaction going forward.

Remodeling doesn’t guarantee a price uptick.

While remodeling projects may enhance a property, the projects homeowners take on are never a guarantee of payback at resale. “An ROI, or return, on a home’s upgrades does not necessarily increase value,” says Michael Kelczewski, a real estate pro with Brandywine Fine Properties Sotheby’s International Realty in Delaware and Maryland. The payback will greatly depend on what type of home improvement was completed. (Read more: The Remodeling Impact Report)

Be ready to fix some things.

Sellers may have to spend a few bucks to get their home ready to sell. For example, they may need to “replace the trim the dogs scratched up,” says Katie Messenger, a real estate pro with Bello Dimora Real Estate Network in Kentucky and Cincinnati. “Clean the scuff marks off the walls. Power-wash the algae off the vinyl siding. To you, it’s totally normal because you’ve lived with these issues for years. To buyers, these will look like expensive repairs, which means they’ll have to lowball you, or not make an offer at all, because your house ‘needs a lot of work.’”

Read more things every real estate agent wishes sellers knew at realtor.com®.

Source: “9 Things Every Real Estate Agent Wish You Knew About Selling Your Home,” realtor.com® (Sept. 20, 2017)

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After Equifax Breach – Freeze your Credit – Here’s How!

Read the full article from the Washington Post below and see if you were possibly affected and what you need to do to protect yourself from this point forward…..

https://www.washingtonpost.com/news/the-switch/wp/2017/09/09/after-the-equifax-breach-heres-how-to-freeze-your-credit-to-protect-your-identity/?utm_term=.6d1daccabfbd

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Thinking About Selling Your House Yourself?

6 Awful Reasons for Not Hiring a Real Estate Agent

lighterside-staff-authorBy Lighter Side Staff  |  Read More

There are millions of homes bought and sold every year, most of them with the help of a real estate agent. However, there is still a segment of the population that chooses to go it alone when it comes time to sell or buy a home.

There are different reasons for this, many of which aren’t very good. The only good reason might be if you’re an agent yourself, and even then, it might be better to work with another agent so that you’re not letting your own emotion cloud your judgment. Here are some of the worst reasons for not hiring a real estate agent:

1. To save some money

You might think you’re guaranteed to save yourself money by not hiring a real estate agent, but that’s not true. It’s very likely that it will cost you money during the process because of all of the potential pitfalls that you’re not even aware of. There are multiple points in a real estate transaction where making the right decision, or knowing what to look for will save you thousands of dollars. A real estate agents know this.

2. Because you think you’re a great negotiator

You probably think you’re a great negotiator, and you might be, but you also might not be as good as you think. In fact, there are many billionaires and CEO’s who openly admit that they aren’t good at negotiating, and oftentimes have other people negotiate on their behalf. Again, understanding real estate, and what factors may affect price are things that a real estate agent knows that can help with negotiation, and will get you a much better deal.

3. You read about a bad experience someone had

Of course there are horror stories on social media and forums about people’s experience buying and selling a home. This shouldn’t deter you from hiring an agent to guide you through the process, because you’re much more likely to find yourself in a nightmare scenario if you go it alone. There’s an important thing to remember about the nightmares you see online; people are much more likely to post about their negative experiences than their positive ones. There are lots horror stories about hospitals, restaurants, and hotels too — that doesn’t mean you’ll never leave the house again, right?

4. Because you saw a real estate show on HGTV

We all love real estate shows. It’s a lot of fun to sit back and watch a shockingly good-looking couple flip a home and make a $50,000 profit in less than 30 minutes. But it’s important not to confuse television with reality. You can’t learn everything you need to know from watching tv, otherwise this country would be full of expert martial artists, race-car drivers, and stand-up comedians. Hire someone with real-world experience to help you along.

5. You think you’re the only one who knows how much your home is “really worth”

You love your home, and it’s likely that you love it and appreciate it more than anyone else does. It’s completely natural to not only develop a sentimental attachment to where you’ve spent years of your life, but to also appreciate all of the repairs, upgrades, and other special details that you know and love. But just because you believe your home should be priced a certain way, doesn’t mean that’s what the market will bear. Having a business-minded, detached approach to pricing and selling your home is critical to a successful real estate transaction.

6. Because… “How hard could it really be?”

Some lessons in life are only learned through experience. Real estate agents have studied, been through it, and know that conducting a real estate transaction can be a potential minefield if you’re not careful. As a buyer or seller, it’s important not to minimize the difficulty and effort that goes into closing on a home. Hire a real estate agent, and let them worry about the difficult aspects, you’ll be glad you did.

Posted in For Sale By Owner, NAR-National Association of REALTORS®, Personal Opinions, REALTOR® | Tagged , , , , | Leave a comment

What do you NEED to know about CREDIT SCORES?

Information straight from the California Association of REALTORS® to help clarify the credit score myths!

Credit Scores

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