The Domus Group Real Estate BlogRecently posted or modified blog posts in the category - Selling Your Homehttps://www.thedomusgroup.com/blog/Copyright TheDomusGroup.com2024-01-09T18:40:28-07:00tag:thedomusgroup.com,2012-09-20:18843Tripp's Take on Real Estate | Avoid This Tax | Episode 59
I had someone ask me yesterday how I come up with the content for my email. After explaining my process, I reiterated that I love covering questions from my viewers (YouTube, Facebook and Instagram) and readers (email and blog).
Because if you’re asking it, someone else is too.
But at the end of the day, I don’t want to get so off topic that it isn’t useful to you. Frankly there’s a lot of repetition when it comes to real estate, whether as a homeowner, investor, renter or buyer. So if you’re not hearing something you have a question about, make sure you chime in so I can address here.
Today I’m going to keep it fairly basic. We’ll look at items surrounding home maintenance, cash for properties, capital gains on the sale of personal or investment properties (and how to avoid the tax in the first place) and then wrap with our mortgage rate update.
Welcome to the second full week of the new year. Let’s kick things off.
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Sellers: Avoid this Tax at all Cost
Let me set the stage. First, I’m not an accountant and I’m not a tax attorney. And I don’t play one on TV. This shouldn’t be construed as tax advice. Talk to the appropriate professional to get their input. Second, I am not advocating you not paying your taxes.
What I AM saying is if you can avoid a tax altogether, you should absolutely do it - unless you enjoy sending your hard earned money to Uncle Sam to get flittered away on some innocuous priority.
There are two scenarios I want to cover here: the sale of your personal home and the sale of an investment property.
Please pay attention to the next couple of statements.
If you are selling your personal home and have no interest in becoming a landlord, no sweat. The capital gains tax for married individuals is avoided altogether for gains up to $500k or $250k for single individuals.
If your gains are above that, I’m slow clapping for you. Congrats! Consult your tax professional for any gains above $250k and $500k.
However, if you’re thinking about becoming a landlord, pay attention. The rule is that to avoid paying capital gains, you must have lived in the property two of the past five years.
So tick tock.
If your plan is to get those three years of renting the property out while hopefully seeing values climb to sell for more money, good plan. But, execution and timing is key.
Because if you go beyond the three years and one minute, congrats you’ll be paying the tax.
The second scenario is you have an investment property to sell. Lots of different factors and direction here. Perhaps your personal residence became an investment property and you didn’t sell within that three year timeframe.
Whatever the situation, to avoid the tax, you’ll want to do what’s called a 1031 Exchange (it’s a provision in the tax code).
This 1031 Exchange allows you to roll the proceeds from the sale of that property into another of like kind.
There are a number of strategies here that can propel you into a larger, hopefully more profitable property.
Whatever your need, please don’t sell a property without knowing your options…only to get a tax bill you weren’t expecting.
I’m surprised the number of property owners who don’t know this. Reach out to discuss options and a strategy for your needs.
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Need Cash for that Property?
Most times, getting top dollar makes sense when selling - at least that's my goal pretty much all the time as a Realtor®.
However, other times call for immediacy, urgency and the luxury of preparation to sell for top dollar isn’t an option.
Or maybe there’s no desire or drive to fix up a property in order to get the maximum sales price, ie you inherited a home and neither time nor funds allow you to prepare the home adequately for top dollar.
For those uncommon times, it may be helpful to have the option to get a cash offer.
If you have one of these situations where you’d like to get a cash offer for a property pretty much anywhere and in any condition, reach out. I have several resources to be able to offer a cash, close to retail price offer.
Often, cash is king. Othertimes, cash is cash. Let’s talk how I can help with your situation.
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Home Maintenance Tip
<img src="https://assets.site-static.com/userfiles/1947/image/jon/weekly_emails/Sump%20pump%20pit.png" width="600" height="414" alt="Sump pump pit" style="margin: 5px;" />
If you’re reading this email today, Tuesday January 9th, it’s probably raining wherever you are. As I type this, the sump pump is going off in the background.
A friend of mine just this past week, I call her my second mom - long story but I’ll tell you over coffee - just shared on facebook that her basement completely flooded because of the sump pump failure.
If you’re in a basement situation, and you have a sump pump, please grab your calendar and make two entries in it six months apart each year to check and make sure it works.
These pumps generally last for ~10 years.
To engage most of the sump pumps, you can either pour several gallons of water directly into the pit, or you can pull the pump float up until it engages. If you’re getting nothing, you should call a plumber to come take a look.
Because if you’re going through today without a working sump pump, as the famous line from the 1986 movie, The Fly, says: "<a href="https://youtu.be/--hMJPUBwMc?si=4_36bv5tL9HxYFex&t=1" target="_blank">Be afraid. Be very afraid.</a>"
Don’t live in fear. Do this small but important home maintenance tip today.
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Mortgage Rate Update
The mortgage interest rate (at close of business Monday) on a $500k home (with 20% down and a credit score of ~750) for a 30-year fixed-rate mortgage is 7.094%.
This is the first uptick I’ve seen in several weeks. Nothing super significant, but we’ll be watching to see if we’re any shift in either direction is continuing.
We saw the Fed release their job numbers last week with mixed results. <a href="https://youtube.com/shorts/5jrEfxogHWc?feature=share%20" target="_blank">On this YouTube short</a>, I ask the question of how these numbers impact our real world numbers. Take a minute to watch that video and share your thoughts.
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That’s all I got for you today. I'd love to get your follow up comments and questions.2024-01-09T16:34:20-07:002024-01-09T18:40:28-07:00Jon Tripptag:thedomusgroup.com,2012-09-20:15037Here's The Top Consideration When Selling Your HomeAre you thinking about selling your house soon? If not, no worries. Read on so you’re smart on some things to think of when you do sell.
I’ve said it many times before, but the market changed about eight months ago due to inflation and some other economic factors – printing trillions of dollars we don’t have to only spend it like drunken sailors – are a few things that come to mind.
With the market change, buyers pulled back and properties sat longer on the market (more at the bottom on some evidence this may be changing).
So here you go: hands down, the #1 consideration when selling your home is the matter of pricing.
The location is perfect.
The finishes are spectacular.
The lawn looks like Amen Corner (sorry non-golfers for the Masters reference).
But, if the price is off, you lose.
Too high and it’ll sit or you’ll get offers at actual market value which will be under your list price (and expectations).
Price it too low and you’ll miss out on the upside in gains.
With nearly 20 years in real estate – I won’t bore you with the details – there’s a reason I am so emphatic on this point.
You hire a professional who understands the market and factors affecting potential sales. There’s a reason long-term agents have stayed in the business long-term. We understand what it takes to get a home sold for the right price.
So beware when an agent promises you the moon on what your home is worth. If the comparable and other data don’t support that sales price, you just signed a contract with someone who is going to babysit your home while the market moves on.
<img style="margin: 5px;" src="https://assets.site-static.com/userfiles/1947/image/jon/weekly_emails/Hire-a-Professional.jpg" alt="Hire a professional" width="600" height="600" />
Just this week I avoided listing a property for someone who wouldn’t listen to my counsel on the pricing of his home. Yes, there were other things – like the fact he was adamant about not doing professional photos and marketing (he said iPhone photos would be completely fine). doh!
Folks, you can’t ignore the data, hope to get your price and make your wishes magically come true. This isn’t Disney World.
Aside from correctly pricing your home, there are a few other things you can do to increase its value and get a better return on investment (ROI) on prepping your home for the market:
Paint and flooring: A fresh coat of paint and new flooring can transform a room without breaking the bank.
Landscaping: Adding plants, flowers, and mulch to your home's curb appeal can attract potential buyers and give it that extra pop.
Energy efficiency upgrades: Installing energy-efficient appliances and systems can reduce utility bills and appeal to environmentally conscious buyers.
Cleaning and decluttering: Cleaning and decluttering your home can make it appear larger and more appealing to potential buyers.
My general rule of thumb is that the ROI must be at least 2x your investment.
Think of it this way. If you give someone $1 and they give you $2 back, how long would you do this? ALL DAY LONG!<br />
When the time comes to list your home, make sure you work with a real estate agent/team who understands these points, helps you price it correctly and market it effectively.
I trust these suggestions are useful.
Please reach out to me directly any time you have questions or would like to discuss a possible home sale – or purchase – in greater detail. You can reach me at (703) 552-5259 or email me at jon@thedomusgroup.com. <br />
Best,
<img style="margin: 5px;" src="https://assets.site-static.com/userfiles/1947/image/jon/Jon_Signature.jpg" alt="Jon Tripp signature" width="65" height="92" />
Jon Tripp
Additional info:
Mortgage Bankers Association (MBA) said that mortgage applications increased last week by 7% compared to the week before. Combined with the fact that mortgage rates are coming down, plus the increased interest from buyers entering the market, competition will heat up. If you're thinking about buying, let's talk soon.
Next week I’m going to cover some basic real estate terms. Oftentimes many in the industry assume that people understand the lingo…but that could be a mistake. We’ll dig in on a half dozen or so of the key terms.<br />
If you'd like to get email alerts, set up a home search or have questions, send us a message via the below form.
2023-01-31T09:30:00-07:002023-02-06T20:21:32-07:00Jon Tripptag:thedomusgroup.com,2012-09-20:11077Buying or selling a home: Does it really matter who you work with?
Will anyone work? Or does it really matter who you work with when buying and selling a home?
The answer is YES! It does matter who you work with. Not all services, products or providers are the same.
The problem is when some service providers argue they deliver a Nordstroms level of service at Goodwill prices. Caution.
There’s no way an individual can provide the quality and quantity of services for your needs if they’re playing all the different roles that’s required in a real estate transaction alone. I myself did the solo agent role for 10 years before I embraced the team approach. And that is what I now argue is the best way to go – for the client.
When selling your home, if the same person taking photos (hopefully not with their iphone either) is the same person handling marketing, negotiating offers, putting the signs out and handling the transaction paperwork, there’s no way they can promise the Nordstroms, heck even Walmart level of service – at any scale, effectively.
When I say it matters who you work with, I’m suggesting that you hire someone who has a proven record as a transaction CEO overseeing the partners involved.
From marketing to transaction management to title processing, inspectors, contractors, lender and those on the other side of the deal, the right partner will make a positive impact on not just the terms and finances of the deal, but also the overall experience.
Consider the impact of hiring the wrong partner. A lack of negotiating experience, market knowledge, or focus will result in a different deal than if you had selected the right team.
So before you try to get “a deal,” understand that a wilting agent who isn’t willing to stand up for their value and the professional services they offer, don’t expect them to stand up on your behalf and negotiate with the professionals who are on the other side of the table.
Listen. The average agent does 2-3 transactions in a year. That’s like 80% of agents who are out there. And with an 88% failure rate (within five years!), most are out there hobbying along hoping to sell their cousin’s home. That’s not the agent who is going to get you the best deal and know how to help you win. But that’s the agent who’s saying they’re providing full service but cutting their value along with what they’re paid.
You see I’m arguing my value here – because I believe in what I can do for you. Realtors are the one who face an uphill battle just trying to make it in this industry. Yes, there are some agents who make it big and have the flashy cars and nice houses, but they’re the exception. We don’t get paid unless there is a deal.
How many hundreds and thousands of calls and converstions a year do we have to make to succeed? The odds are against us. Try hiring a doctor, lawyer, landscaper, builder or other professional and see if they’re willing to work for free.
And try to get them to cut their costs by 20-50%. It won’t happen because the good ones know their value - and you can take it to the bank that they’re going to stand up for yours.
I challenge you to try this: when you interview an agent, make the first question you ask them if they’ll represent you for 30% less than they normally charge. If they cave at the outset, thank them for their time and send them on their way. If, however, they thank you for your time and are ready to boot you out of the room or phone call, you want to continue the conversation.
A good agent will demonstrate leadership that benefits you and your interests. When you’re looking to buy or sell a home, reach out and put us through the grill.
When it comes to answering questions, I have nothing to run from. I’m happy to answer any questions you have and hopefully educate and prepare you for what’s to come.
So, it matters who you work with!
I welcome you calling me directly and discussing your needs. Whether you’re exploring the process or are ready to buy or sell a home or investment property, reach out to me directly at <a href="tel://7035525259" title="Call Jon" target="_blank">703-552-5259</a>.
If this information is helpful, give me a thumbs up and share with a friend. To get my updates, take a moment to follow me on all the social channels @thedomusgroup.
My name is Jon Tripp and I’m a Realtor in Northern Virginia.2021-11-11T18:22:00-07:002021-11-11T19:43:52-07:00Jon Tripptag:thedomusgroup.com,2012-09-20:10952Question 20: As a homeowner, how much equity has my house gained the past 12 months?
“As a homeowner, how much equity has my house gained the past 12 months?”
This is the question I’ll answer today, Day 20 of a 30-day series looking at the top questions in real estate.
CoreLogic, a business intelligence and analytics provider of financial, property, and consumer information, is my source for this video. <a href="https://www.corelogic.com/press-releases/homeowners-gained-2-9-trillion-in-equity-in-q2-2021-corelogic-reports/" title="CoreLogic Equity Report" target="_blank">Here's the report I reference</a>.
The cliff notes version is this: over the past 12 months, homeowners have gained $51,500 on average across America in the value of their homes.
That equates to $2.9 Trillion in equity.
The graphic below demonstrates how homeowners in your state performed. If you’re still on the sidelines waiting for the market to come down, this is probably unwelcome news for you.
<img src="https://assets.site-static.com/userfiles/1947/image/jon/Equity_Gains_12_mos.png" alt="Housing equity gains in the past 12 months" title="How much equity has your home gained in the past 12 months?" style="margin: 5px; float: left;" width="600" height="1177" />
If you’re a renter, landlords across America thank you.
Back on <a href="https://youtu.be/PJ9DOuKYtHY" title="Day 18 Question" target="_blank">Day 18</a>, I asked the question for homeowners whether you should sell, capitalize your gains and sit on your profit for a while. Look back at that video for my thoughts.
Are you ready to sell? Let’s connect to talk about how you can take advantage of your rising equity to reach your goals, such as fund an education, finance your next move or start a business.
I’d love to have a conversation with you.
When it comes to real estate, it matters who you work with. If I can answer any questions you have or assist you with buying or selling a home or investment property, reach out to me directly at 703-552-5259.
If this information is helpful, give me a thumbs up and share with a friend.
To get my updates, take a moment to follow me on all the social channels @thedomusgroup.
My name is Jon Tripp and I’m a Realtor in Northern Virginia. As always, thanks for joining me.
<a href="https://youtube.com/playlist?list=PL2BD7sxLU5Iy-8b9PQkQkvo1OPavi_dHc" title="30 top real estate questions" target="_blank">View the full 30 question playlist here.</a>2021-10-27T20:16:00-07:002021-10-29T22:16:30-07:00Jon Tripptag:thedomusgroup.com,2012-09-20:10911What is Your Sales Number
Homeowners, there’s a shortage of inventory out there – the demand is what’s driving high prices.
So I’ll be very transparent: I need, Realtors need more listings.
So I ask you “What is your sales number?”
What is the price that you’d be an idiot not to sell for and move?
This conversation is really one sided. I get to ask the question but only you can answer it.
Have you given thought to selling your home and locking in your profits? Have you wanted to make a move to a less pricey area and just live a cheaper life with less stress and demands for the incomes a high-price region exacts on us all?
Go ahead and give it some thought and ask yourself what it would take.
I won’t judge…
Whoa don’t go crazy there. No Realtor can promise you that amount.
But seriously, if you’d like to explore and see what the market might get you, I’d encourage you to reach out to me and let’s talk.
Wherever you are, I’ll have a local agent get you some sales comparables to look at as you contemplate your “make me move” number.
So what do you say? What’s your sales number?
Tomorrow I’m going to answer the question, “How long should a house last?”
When it comes to real estate, it matters who you work with. If I can answer any questions you have or assist you with buying or selling a home or investment property, reach out to me directly at 703-552-5259 and let’s talk.
If this information is helpful, give me a thumbs up and share with a friend. To get my updates, take a moment to follow me on all the social channels @thedomusgroup.
My name is Jon Tripp and I’m a Realtor in Northern Virginia.2021-10-21T11:16:00-07:002021-11-11T19:21:46-07:00Jon Tripptag:thedomusgroup.com,2012-09-20:50267415 Spring Summit Road is FOR SALEUpdate: May 15, 2020 - after strong marketing and a good number of views, my clients accepted an offer to purchase this property. Closing is anticipated to occur before the end of June. If you have any questions, reach out to the listing agent, Jon Tripp, at 703-552-5259. ***
Attention all homebuyers looking in the Northern Virginia area, particularly on the I-95 and I-495 corridor with access to DC, The Pentagon, Quantico, Tysons, Joint Base Andrews and all points inbetween.
I have just listed a home that you should immediately stop to look at. There's a 3D virtual tour, video and photos of every square inch of this property. Learn more at <a href="http://7415springsummit.com" target="_blank">http://7415springsummit.com</a>.
<a href="http://7415springsummit.com" target="_blank"><img src="https://assets.site-static.com/userfiles/1947/image/jon/Screen_Shot_2020-05-15_at_1.01.25_AM.png" alt="7415springsummit.com" title="7415 Spring Summit Road is FOR SALE" style="margin: 5px auto; border: 2px solid black; display: block;" width="600" height="382" /></a>
For sellers out there, how is your property (going to be) marketed out there to the potential buyer? What you'll see in the website above is standard with every listing. Let us show you what we'll do to make your home stand out above the rest.
If you have an interest in seeing this home, reach out to <a href="https://www.thedomusgroup.com/contact/">Jon Tripp</a>, the listing agent, for more information.2020-05-07T07:43:00-07:002020-05-17T17:01:31-07:00Jon Tripptag:thedomusgroup.com,2012-09-20:4560Why You Should Consider Selling in the Winter<img src="https://assets.site-static.com/userfiles/1947/image/selling-in-the-winter-attracts-serious-buyers.jpg" alt="Selling In Winter Attracts Serious Buyers" title="Selling In Winter Attracts Serious Buyers" height="410" width="750" />
The season you sell your home can have an impact on how much you get for your home and how quickly it sells. The season that has the most success in selling homes is spring. This is a good time of year for families moving to new school districts and is also more convenient weather for moving. Because of this trend, most people will recommend waiting to list your home until after the winter is over. Avoiding the winter is a huge misconception in the housing industry and can cause homeowners to miss out on opportunities.
Selling in the winter can give you a few advantages. There will be fewer houses on the market since most people assume winter is a bad time to sell. This gives your home more attention. Potential buyers are always looking no matter the time of year. Keeping your house on the market in the winter might bring the right buyer to your door. Real estate agents also tend to be less busy during these months and commit more time to getting your home sold.
Studies have shown winter buyers are buying because they need to move right away either for a relocation or personal situation. They will want to close quickly and allow for a much smoother sale.
Bottom Line
If you need to sell your home right away, or have some time but want to see what is out there, consider listing in the winter. Most homeowners who are going to sell will list their home in the spring, making for a competitive market. The winter allows buyers who are in a hurry to move consider your home and sell for more money than you would have in the spring.2020-03-03T10:38:00-07:002020-03-03T10:40:22-07:00Jon Tripp