Here’s the list:

1. In general, you are eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.
2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).
3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.
4. If you can exclude all of the gain, you do not need to report the sale on your tax return.
5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.
6. You cannot deduct a loss from the sale of your main home.
7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.
8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.
9. If you received the first-time homebuyer credit and within 36 months of the date of purchase, the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year’s tax return.
10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.

I hope these tips can help make you life a little easier when taxes come due.  For help selling your home and everything that comes along with it, give me a call @ 979.255.1839.

Clay Lee – Realtor

Century 21 Beal, Inc.

Just like a good movie can bring you into that world, a good video walkthrough can bring you right into a home.  Not only does it give potential buyers a fairly true look at the layout of your home, but it allows them to catch details that might not be the center of attention in a photo.  When you give buyers a 180° look (or even a 360° look if space allows) in full video you are able to pique their interest and create a longer lasting impact on them.  Let’s look at it this way, a buyer finds 2 different homes in the same neighborhood, similar square footage, similar amenities, & a similar look.  Which home will they remember if one has a video walkthrough and the other doesn’t?  The one with the video, because it sets it apart from the competition.

Below is a great example of how a video walkthrough can transport you right into the home:

This marketing tool is utilized in ALL of my listings.  I mentioned in my post on photos that in this clogged real estate market, you have to set yourself apart.  I can not repeat this enough.  You have to set yourself apart.  Video is a great technique of doing just that.

Video is only one of the many ways I can help you sell your home faster, to find out more please feel free to give me a call @ 979.255.1839

Clay Lee – Realtor

Century 21 Beal, Inc.

Homeowners generally are aware of the essential maintenance points to address on the interior and exterior of a home.  But some items are relatively unknown to the average homeowner I’ve spoken with.  I’ve compiled a list of the less obvious, but equally crucial tasks to address, and how often to take care of them.

• Chance your furnace filters monthly.  Clogged filters decrease efficiency and can cause breakdowns.
• Drain your water heater at least once a year.  Sediment will drain out along with the water, prolonging the heater’s useful life.
• Check under sinks for dripping leaks or water stains.  Catching a small problem early can save you from major damage in the future.
• Exterior paint should be refreshed every 5-10 years, depending upon the quality used.
• A roof should be repaired/replaced every 13-15 years.
• Wood decking staining should be refreshed approximately 4-7 years.

In addition to presenting a well-maintained home, you also want to present a clean and perfectly staged home that will be a most welcoming sight to the potential home buyer.  The elements of good design and staging include four fundamentals: balance, harmony, emphasis, and functionality.

Balance means using furniture and other objects to make each side of a room exactly match the other.  The balancing of a room makes it more appealing to buyers on the whole.  An easy way to create harmony is through repetition in color, texture, or shape.  For example, a blue sofa may replicate itself in the shade of blue in the draperies.  But be careful that you don’t go overboard!  Next is emphasis.   Every room needs a focal point; yours could be a fireplace, a framed powerful picture, or a piano.  A focal point is a great way to make a room more interesting.  Finally, a good room needs functionality.  Everything in a given room should support the functionality of that room.  If you are trying to show off a great office, display solid furniture, a clean workspace, and soothing art.

Some additional tips:

• Fresh paint always gives the ‘new home’ look.  It is one of the best, most cost-effective ways to change the look and feel of a room.
• Remove at least one-third of all books and accesories from bookcases and built-in cabinets so they look more spacious.
• Remove 25% of clothing from rods in the closet to give it a more spacious look.
• Accessorize and decorate using the “cantaloupe rule”: remove all items around the home that are smaller than a cantaloupe.
• Place animals in kennels or arrange for offsite petcare during any showing times.  Also, put away any water and food bowls.

For more tips on home maintenance and home staging, keep checking back for my daily updates.  If you are interested in a consultation to discuss selling your home or staging your home, please feel free to call me anytime!

Clay Lee – Realtor  

Century 21 Beal, Inc.

(979) 255-1839

clay@century21bcs.com

Timeless Service, Quality, and Experience Guaranteed

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It is an industry fact that staged homes sell faster.  When your home has been properly staged, you will have true confidence that the first impression will be a positive and lasting one.  The main point of staging is to showcase the benefits of the house in the best possible light.  It will make your home appear like a model home so that potential buyers can envision themselves living there.  Additionally, a properly staged house appears to be in move in-ready condition.  This means that potential buyers will be able to visualize their belongings and themselves in your home much more easily, which is exactly what you want.  

 Another benefit of a staged home is that it projects an image of being well-maintained and cared for.  The underlying psychological message that is sent to the potential buyer is that it is worth more, and that they will not have to worry about inheriting costly problems to which they will have to attend and repair.

The key points to staging a home are: de-cluttering, de-personalizing, updating old/unattractive fixtures, painting, furniture arrangement, and accessorizing - so that you display your home in its best possible shape.

Generally, the following are always on the list for seller reminders of what the buying public wants to see when previewing the home. First and foremost, the exterior should be repainted or power washed as it is the first impression. (While you’re focusing on the exterior, remember to power wash the driveway, sidewalk, etc.) Paint is equally important on the interior; rooms that are painted light, neutral colors show the best as they make a room appear airier, larger, and more inviting.

Some smaller, but very important tasks to complete before showing your home are:

• Replace old door knobs with shining new ones (especially on the front door).
• Make floors shine and windows shine even more. This cleanliness shows care of ownership and gives the impression that appliances and equipment associated with the home have the same pride of ownership.
• If your mailbox is looking old or worn, install a new one.
• Decrease clutter and de-personalize. This includes removing  toys, excess books, exercise equipment, etc.
• Always remove bad odors, clean carpets, and neutralize.
• Always let the light in by opening drapes and turning on lights in the house.

Additionally, I’ve listed below some common flaws in a home that I look out for:

• Gutters that are in need of repair or filled with debris.
• Untended yards, driveways, and gardens
• Poor shower and tub caulking where grout is missing or dirty. (Replace!)
• Damaged bathroom tiles. (Fix and replace!)
• Put fresh towels in the bathroom on towel bars that are stable.
• Make sure pet litter boxes are out of sight and garbage cans are empty.

These are the main tips I offer to my Bryan/College Station clients when we are working together on selling their home.  If you are interested in detailed staging or design tips, I am always happy to help; just give me a call! Continue to visit my blog daily for the best local, expert real estate advice!

Clay Lee – Realtor

Century 21 Beal, Inc.

(979) 255-1839

clay@century21bcs.com

Timeless Service, Quality, and Experience Guaranteed

________________________________________________________

Home Equity and PMI

PMI has been a large money-maker for the mortgage lenders. The amount of the insurance (usually $40/month for a $100k home) is commonly rolled into the mortgage payment. Given the size of the overall note payment, this additional fee is often overlooked. Homeowners continue to pay the PMI even after their loan balance has dropped below the original 80% threshold. This occurs naturally, of course, as the home owner pays down the principal on the loan. On a typical 30-year loan, however, it can take many years to reach that point.

Lenders were under no obligation to tell home owners when they had reached a point where the PMI can be dropped. That all changed back in 1999 when the Homeowners Protection Act took effect. In most cases, this law now obligates lenders to terminate the PMI when the principal balance of the loan reaches 78% of the original loan amount. Savvy homeowners can get off the hook a little sooner. Upon request of the owner, the PMI must be dropped when the principal balance amount reaches 80%.

Here are the disclaimers: this only works for homes purchased after 1999 and wwners must be current on their loan payments. For buyers prior to 1999, they must initiate the process to have it removed. Lenders are under no obligation to remove it, but most will.

There is another way that your home equity can reach beyond the 80/20% ration. Raise your hand if you know the answer…actually leave your ideas below in our comments section.

Here’s tricking you,

Cindy Seaton, REALTOR

College Station has luxury homes located in many different areas, but for the past few years and seemingly for many more to come, the best areas to buy or build in are Pebble Creek and Indian Lakes. These are two very different communities from each other; however, they have the smallest number of days on the market and the best appreciation in town. Why is this?

Pebble Creek is the only golf course and country club community located in the confines of the College Station Independent School District. While Bryan has 4 of these communities, College Station only has one. With the current atmosphere of development in the city of College Station and the lack of readily available land to develop, this community is set to be a safe bet for many years to come. Clients love that it has its very own Elementary School, extensive walking trails, lots of quiet cul-de-sacs, and a state of the art club house with a large pool, tennis courts, a bar, banquet and meeting facilities, and a couple of great restaurants. Houses in Pebble Creek range in price from $170,000 to home in excess of $1 million. They have everything from patio homes to large golf-course front estates. There truly is something for everyone. The developer has done a great job over the years of releasing just a few lots at any one time as to not flood the market with new homes. This has kept prices up and made the market extremely stable. The best deals are the homes that are at least 10 years old as they are aging and need to be updated. However, there are amazing new homes like my listing at 5203 Whistling Straits that was designed by the noted Aggie artist, Benjamin Knox. It’s almost 5,000 square feet at the end of a quiet cul-de-sac. It’s priced at $1.1 million and has all the latest technologies and design elements.

Indian Lakes is also a booming community that seems to really do a good job of mainting it’s value with a steady appreciation. Prices here range from $275,000 to over $1 million dollars. Texas A&M’s new head football coach, Mike Sherman, just purchased a resale home here for around $1.7 million on 10 acres. You can find gated patio homes here as well as medium to large estate homes. It’s a unique neighborhood with some state of the art ecological features, miles of horse riding and biking trails, tennis courts, a community resort style pool, and an enormous lake. Prices here are all over the board and usually based on lot size and the view. The lots on the lake can sell for as much as $500,000! Most of the homes are in the $500,000 to $700,000 range and sit on 1.5-3 acres. There are tons of trees on most lots which really add to the privacy. The best part about this neighborhood is the fact that it has hundreds of acres of nature preserves and buffer areas. This really keeps the neighborhood looking like a true country setting, but you are literally only minutes from all the amenities you need. Again, it will be hard to have a neighborhood that can replace this one. Assembling this one and getting it developed took almost a decade. It will take that long or longer before it could even be thought about being done again. You’d also have to find the land which would be very hard to find and costly if it could be found.

There are lots of other great and unique neighborhoods in College Station, but if you truly want the best long term resale value and appreciation, your safest bets are Pebble Creek and Indian Lakes.

As always, for more information on living your Luxury Lifestyle and buying or selling Luxury Real Estate, email me at rclaylee@yahoo.com.

Clay Lee

College Station #1 Luxury Lifestyle and Real Estate Expert for over a decade!

A lot of people make the mistake of thinking that a luxury home qualifies as a luxury home merely based on the properties square footage or land size. However, a luxury home can be a 1500 square foot town-home or a 20,000 square foot ocean front compound. It’s the features of a property that make a luxury home a luxury home, especially in College Station, TX.

The following are the biggest places that mistakes are made.

Master Suites
A Big Shower and Walk-in Closets are just not enough. Buyers expect a Spa in their own home today. You have to have multiple shower heads, rain showers, body sprays and if possible a steam shower. Closets have to be totally custom with built-in packing centers, extensive shoe storage, tons of drawers, adjustable hanging space, full-length mirrors, and good lighting. The sleeping area has to be well designed with plenty of room for a bed and a nice sitting area. High end quality flooring of wool, stone, or wood is expected in this space as well. Buyers also want separate closets if the home is larger and even more popular are separate master bathrooms.

Kitchens
Quality Cabinetry is just the starting point for luxury kitchens. From contemporary to French Country, the hardware inside the cabinets is almost as important as the design. Clients want customized drawers and shelving. The hardware has to be of the highest quality as well. High end appliances are not black, white, or biscuit on the outside. Stainless steel is the safest choice, but the new glass and cabinetry front models are also becoming more popular. The luxury home buyer wants luxury brand names like Sub Zero, Wolf, Thermador, Bosch, Viking, and Gaggenau. They expect professional style gas ranges and built-in commercial style refrigerators. Even the smallest luxury homes have at least a $10,000 appliances allowance for the kitchen, but the larger homes have as high as $40,000 to $60,000 in appliances. The bigger the home, the more appliances you need including multiple dishwashers, ovens, and refrigerators. The favorite features today are pot fillers over the range, built-in coffee/espresso makers, warming drawers, and wine refrigerators.

Electronics
Today’s luxury is all about convenience and the luxury home buyer knows what’s available and wants it! One of the most popular systems is the Crestron system which can control the air conditioning, all lighting, audio, video, window coverings, and security. Buyer’s want control over their homes, and the more gadgets they can get, the better. Even the mature luxury buyer wants these things so that the home can pretty much take care of itself. They want the ability to have sound and video throughout the inside and outside of the house. They expect lighting to be totally customized and user customizable. They want art lighting, task lighting, general lighting, unique hanging fixtures, and more. They desire creativity. Even if it’s not in the budget when building or buying, a luxury home is expected to be pre-wired to do all these things.

Floor Plan
The luxury home buyer is tired of going to a friend’s house and feeling like they are in their own home. This buyer can afford whatever they want, and they want something unique and different that they feel is a reflection of their life, status, and style. The same or similar floor-plan just doesn’t cut it. They want a home designed by a noted artist, architect, or designer. However, most importantly is to make sure the home makes sense. You have to make sure that the home has the right rooms that are required for a home of its size. In College Station, homes over 3,000 square feet have to have at least a 3 car garage, 4 bedrooms, a minimum of 3 and one-half baths, a study, formal dining room and a large family room. As you go up in square footage, you go up in the types and number of rooms that are expected. Over 3300 square feet a game-room is expected. Get closer to 4000 and an additional formal living room is expected. Get even larger and clients expect home theaters, additional office spaces, additional bedrooms, guest quarters, secondary kitchens, multiple laundry rooms, and more.

Exterior Features
The most important place that people forget about when designing a luxury home is the exterior. Buyers today want the outside to be as luxurious as the inside. In larger homes they expect great views, outdoor kitchens, fireplaces, pools, spas, putting greens, basketball courts, designer gardens, and more. Buyers want them to be pest free and private – even in the smaller properties.

Finishes & Fixtures
You can have the right floor-plan, and the right features, but if you don’t have the right finishes, it’s all for nothing. Luxury home buyers in College Station expect real stone and wood flooring. They want contemporary accents in even the most traditional of homes. They want custom wall coverings and finishes that you don’t find in most homes. They want the best plumbing products and latest designs with brand names like Kohler, Toto, Hansgrohe, Sheryl Wagner, and more. You have to have the highest quality counter surfaces as well in granite, closed-cell woods, marble, or quartz. The luxury buyer wants the finest quality of materials that will last a lifetime.

The biggest mistake of all is when someone constructs one of these homes and does 90% of what is expected. That 10% causes buyers to look elsewhere to get everything they want, especially in this market. The luxury buyer is not affected by tougher lending requirements or market fluctuations. Our market has many cash buyers in this sector partly due to the current oil prices. With that kind of money, they will not settle for something unless it is exactly perfect. If they have to remodel it or finish it, they would rather start the entire creative process from the beginning and design it 100% the way they want it. That means that the “luxury” homes that are not 100% perfect are getting passed over and remain on the market. The ones that do have everything sell quickly and for top dollar. They key is to give luxury buyers everything they could ask for so that all they have to do is ask you to sell it to them! The best bet is to hire an agent like me to help you know what the market is demanding, a quality interior designer that has experience with this type of property, and a quality builder who has the type of subs that can install the materials you will be using. A home builder who specializes in more basic homes, will not have the sub-contracts that can install a complicated lighting system, custom flooring designs, paint finishes, and more.

Don’t make the mistake of cutting corners to save money by leaving out the things that true luxury buyers want and are willing to pay for.

As always, if you want more information on Luxury Lifestyles and Luxury Real Estate, please feel free to contact me at RClayLee@yahoo.com
Clay Lee

College Station’s #1 Luxury Lifestyle and Real Estate Expert for over a Decade!