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Aug. 29, 2018

Like Kind Exchange

 

A 1031 exchange is a tax-deferral tool for commercial real estate owners. Section 1031 of the Internal Revenue Code provides the basis for a 1031 exchange. With a 1031 exchange, an owner can defer capital gains taxes by reinvesting the proceeds from the sale of a property in a like-kind property. Key rules for 1031 exchanges include the following:

  • Property must be considered "like-kind." Real properties generally are of like-kind, regardless of whether the properties are improved or unimproved. However, real property in the United States and real property outside the United States are not like-kind properties.*
  • The real estate owner is forbidden from taking funds from the closing. Profit from the property sale must be transferred to a certified exchange agent, who then transfers the funds to the settlement for the replacement property.
  • Within 45 days of selling the original property, the real estate owner must identify in writing the replacement property they plan to purchase for the 1031 exchange.

* Source: https://www.irs.gov/businesses/small-businesses-self-employed/like-kind-exchanges-real- estate-tax-tips

One disadvantages to a 1031 exchange is that it reduces the basis for depreciation on the replacement property.
The second disadvantage is the capital gains are simply deferred until the time that you sell the commercial property.  You will pay taxes on the property, but not until you sell it without exchanging it for another property.  A like kind exchange is a great tool for moving your business into a larger property with less tax expenses.  For that reason Nathan Walldorf and thousands of other Realtors around the country lobbied this year to be sure that our senators and congressmen knew how important the 1031 exchange is to commercial real estate.  We won a great battle in 2018 to preserve the like kind exchange.
Feel free to contact Nathan Walldorf about any questions that you may have about a like kind exchange in Chattanooga, TN.  Nathan would also be happy to help you with a commercial purchase or sale of a property.  Call Nathan at 423-544-7700
Aug. 17, 2018

Why Are Home Sales Leveling Off?

Why Are Home Sales Leveling Off?

For many months the Chattanooga real estate market and the national real estate market have seen the number of home sales be up each month.  During the past few month, those rises in home sales are not as large and less homes have sold some months than the same month in the previous year.  Lawrence Yun, National Association of Realtors (NAR) Chief Economist, spoke at the Chattanooga Convention Center this week and addressed this trend.  He said that pending home sale (properties that are under contract and due to close) have leveled off for the most part.  That leveling off is due to several factors. 

1) Low inventory. There is a low inventory of homes for sale to choose from right now in Chattanooga and across the country.  Fewer homes for sale means fewer homes selling.

2) Weakening affordability.  Home prices keep going up because of the high demand and the lack of supply.  Some home buyers simply keep getting beat to the punch when they find a home or outbid on a home.  You have to make aggressive offers in today's real estate market.  Some home buyers simply can not afford what they want to buy.

3) Low 1st Time Buyer Rate.  Many 1st time home buyers have been forced to rent for more time in order to save money for a down payment on a home.  Their purchases are being delayed at the moment, but they will buy in the future.  Most people surveyed, want to buy in the future.

4) Diminished Optimism for home buying.  People renting homes want to buy homes (other than older/career tenants).  The problem is affordability.  The Gallup poll, Fannie Mae poll, NAR Consumers poll, and the NAR Realtors poll all expect to see home prices continue to rise.  Confidence in the investment of real estate is still high.  The diminished optimism is in finding a home that fits a home buyer's budget. 

If you are thinking about buying a home right now, do not get discouraged.  There are still homes available to buy.  The one thing you can not do in today's real estate market is try to use "flea market bargaining" when buying a home.  Today, you have to make acceptable offers in order to get a home for the best price and in order to not get in a bidding war.  Call Nathan Walldorf to buy or sell a home in today's Chattanooga real estate market.  Chattanooga Realtor, Nathan Walldorf would be happy to help.  423-544-7700.

July 30, 2018

Closet System Ideas

Take a look at these closet system ideas. 

I saw a Lazy Susan shoe rack at a home recently.  It looked like my wife's paradise.

Then I found a California Closet system that looks like a diva's shoe closet.  The closet was made for actress Tiffani Thiessen from Saved By the Bell.

If you have a bedroom that does not have a closet.  Try a built-in corner closet like the one in this video.

My last idea that is also from California Closet has an island, lighted shoe storage, and hide leather shelves. 

Call Realtor Nathan Walldorf for all of your home needs. 423-544-7700.  Nathan's family has been in Chattanooga real estate since 1926.

Posted in Design, Remodeling
July 3, 2018

Do I Sell My House By Owner

Do I Sell My House By Owner or Not?


Homes are selling so quickly right now, should you sell your home by owner?
You might find 1 buyer for your home and negotiate a contract, but wouldn't you rather have everyone who is looking at homes like your see your home at one time?
Because of the lack of inventory of homes for sale right now, many people are seeing multiple offers on their homes when they put them on the market with a Realtor.  Multiple offers means that you sell your home for a higher price and for better terms.  Homes sell for 13% more money with a Realtor than by owner, which is way more than the commission that you would pay a Realtor.  I know it is tempting to "save money" by selling it yourself, but you end up making less money selling it yourself.  Call Nathan Walldorf to sell your home.  He has the kind of marketing that gets the home in front of even more people than the typical Realtor in less time.  Nathan is also a broker and has been in real estate his whole life.  Call Nathan at 423-544-7700.

 

Posted in Selling Your Home
June 29, 2018

Chattanooga 4th of July Fireworks

Where to see Chattanooga 4th of July Fireworks:

June 29th:
Lafayette, GA - Freedom Fest - at the Municipal Park Center, 638 S. Main St.  5 p.m., music will be provided by 8TRK at 5 p.m. and Babe's Bayout from 8-10 p.m., followed by fireworks.


July 2nd:
Rossville - Lake Winnepesaukah, 10 PM.


July 3rd:
Collegedale - Veterans Park, Apison Pike, 9:45 p.m.
Hixson - Fireworks at Camp Columbus, 8601 Camp Columbus Road, on Tuesday, July 3, beginning at 5 p.m.
North Chattanooga - Pops on the River - Coolidge Park.


July 4th:
Downtown Chattanooga - AT&T Field after the Lookouts vs. Birmingham Game.
Lakeside - Barbecue and fireworks. Wednesday, July 4, from 6 to 10 p.m. in Lakesite City Park.
Signal Mountain - Fireworks at the soccer field of Signal Mountain Middle-High School between 9:15 to 9:30 p.m.
Soddy Daisy - In Soddy-Daisy Park - food and craft vendors, train rides and other fun for kids and a car show from 9 a.m. to 2 p.m. Fireworks at 9:45 p.m.
Lookout Mountain - The Lookout Mountain Club will have their annual firework show at 8:45 PM on July 4th.  Members and guest of members can enjoy a buffet style dinner before the fireworks begin by the pool.
Rossville - Lake Winnepesaukah, 10 PM
Trenton - Jenkins Park (103 Price St).

Posted in Events
June 28, 2018

5 Steps to Sell Your Home

Here are 5 Steps to Sell Your Home.

    1.    Price it Right - buyer have the internet too, and they will research your house to figure out what it is worth.  If they have an agent, the agent will give them comparable sold homes to help them estimate value. Hire the Agent who Tells you the Truth about the Market - Don’t hire the guy that will tell you anything to get the listing or the one that suggest the highest for the house unless he or she backs that pice up with comparable sold home info.   

     2.    Make the House Move-In-Ready - No one wants to remodel your pink and baby blue bathrooms.  Do some remodeling, painting, cleaning and freshening up before you put the house on the market.  Most buyers have a hard time seeing potential, and they don’t want to or can’t afford to remodel your house.  Make the Outside Inviting - Do some landscaping to make your house look like a home that someone could live in.  Put in boxwoods, seasonal flowers to add some color, and mulch.  Get rid of the “cars in the yard.”
    3.    Don’t get Offended by your 1st Offer - Your first offer will be low, because buyers think they own the market right now.  Counter the offer and find a price that will work for both parties.  don’t get stuck over fighting over a tiny bit of money.  Usually a few thousand dollars isn’t worth loosing the sale of your home.
    4.    The Home Inspector is Coming - The home inspector is paid to find things.  You may have to make a few repairs to things that the home inspector finds.  It is all part of the process.  A good agent will help you determine what is reasonable to repair and what is not.
    5.    Be Patient with the Lending Process - Lending is taking a while.  They are picking some people and their finances to pieces.  Be patient.  If the closing is delayed for a week due to the loan. be willing to wait.  After 2 weeks, you may start to get concerned.  

Good luck selling your home.

Call Nathan Walldorf. to help you sell your home.  We’re professionals at Selling Chattanooga area homes since 1926.  423-531-9000.

See the video that goes with this list on YouTube.  Search “5 Steps to Selling Your Home.”  ChattanoogaHomesTV.

 

Posted in Selling Your Home
June 8, 2018

Bathrooms Dethrone Kitchens as the Top Home Remodeling Job

According to the National Association of Home Builders newly released survey, bathrooms are now the most popular room to remodel over kitchens. 

The 2018 NAHB Remodelers Chair, Joanne Theunissen, says that people are leaning towards smaller renovation projects like bathrooms rather than larger renovation projects like kitchens or additions.  Theunissen also says that, "Home owners are finding cost-effective and [faster] upgrades can also add comfort and value to their homes."

The remodelers survey found the following to be the most common remodeling projects in 2017:

  • Bathroom remodeling - 81%
  • Kitchen remodeling - 78%
  • Whole house remodeling - 49%
  • Room additions - 37%
  • Window & door replacements - 30%

Making a home more energy efficient is a growing area in remodeling as well.  Low-E windows are the most common energy efficiency updates that home owners are making right now according to the NAHB.  High-efficiency HVAC units and programmable thermostats also rank highly among energy efficiency updates in 2017. 

Source: Realtor Magazine

June 1, 2018

Add Curb Appeal to Your Chattanooga Home

Add Curb Appeal to Your Chattanooga Home

The National Association of Realtors (NAR) gives many tips on how to prepare your home for sale.  The following list is a great list of items to do on the outside of your home to improve the curb appeal.  The way the home looks on the outside determines whether a home buyer will book an appointment to see your home or even look at the interior photos of your home.  Here are NAR's curb appeal tips:

Trim bushes and branches so they don’t block windows or architectural details.
Set a pot of bright flowers (or a small evergreen in winter) on your porch or front walkway.
Install new, matching locks and knobs on your front door.
Repair any cracks or holes in the driveway, and clean oil spots with degreaser and a steel brush.
Edge the grass around walkways and trees.
Stow your garden tools and hoses out of sight, and clear kids’ toys from the lawn.
Buy a new mailbox.
Upgrade your outdoor lighting.
Purchase a new doormat for outside your front door.
Clean your windows, inside and out.
Polish or replace your house numbers.
Mow your lawn. Also, turning on the sprinklers for 30 minutes before the showing will make ?the whole yard sparkle.
Place a seasonal wreath on your door.

Call the Walldorf's to sell your home at 423-531-9000.

Posted in Selling Your Home
May 29, 2018

Reeling-in Dodd-Frank Means More Building

Reeling-in Dodd-Frank Means More Building

During the recession, the CFPB (Consumer Financial Protection Bureau) created the Dodd-Frank Act to protect the American financial system from future bank collapses and to make the lending process more transparent for the public.  Some of the “protections” put in place created a heavier burden on smaller to mid-sized banks than on the larger banks.  The smaller and mid-sized banks are the ones that do a majority of lending to smaller home builders.  Small and mid-sized banks had to pass “stress tests,” which prevented banks from being able to do small scale construction loans. 

In today’s real estate market, where the inventory of homes is very low across the entire country, new construction is badly needed.  Not only is inventory low, but household formation is  exceeding the housing stock that we currently have. 

Reeling-in or rolling back some of the Dodd-Frank Act, allows banks to lend to builders more easily and should spur more development.  Lawrence Yun, the National Association of Realtors (NAR) chief economist, says that the home building industry has been dominated by large corporations under Dodd-Frank.  Now, “small time homebuilders will have better access to capital to build homes.”  This does not mean that banks will start lending money to low credit people again.  It only means that more loans to builders will be available.

The rules governing the closing disclosure in the Dodd-Frank Act will remain intact.  Many lenders have appreciated the transparency that the Closing disclosure rules create.  The rules force lenders to provide a Closing Disclosure up to 3 days before a closing takes place.  The fees are not a surprise at the closing table like they used to be.  A home buyer even gets an estimate of all of the fees within 3 days of applying for the loan as well.

Source: https://www.inman.com/2018/05/23/what-the-dodd-frank-rollback-means-for-real-estate/

Posted in Market Updates
May 23, 2018

15 Most Affordable States to Buy a Home

Here are the 15 most affordable states to buy a home according to Inman news.  Tennessee and Georgia made the list, but Tennessee was number 15.  Georgia was 11.  That does not surprise me as many home buyers have found Georgia to be a more affordable option than TN in the Chattanooga area.

What did surprise me is that Washington DC is more expensive per square foot than California according to the same study. Hawaii was the 2nd most expensive state and California was the 3rd most expensive state for real estate.  Massachusetts came in 4th.

 

Source: https://www.inman.com/2018/05/22/the-states-where-you-can-get-the-most-bang-for-your-buck/?utm_source=dailyheadlines&utm_medium=email&utm_campaign=localnewsletter&utm_term=&utm_content=674339_default_textlink_14