PEGGY McLAUGHLIN OFFERS TYPES OF REAL ESTATE

PEGGY McLAUGHLIN OFFERS TYPES OF REAL ESTATE

According to Peggy McLaughlin, an ERA Justin Realtor agent, "The Internal Revenue Service considers four different types of real estate when doing their calculations. Specific types of properties have benefits based on their classification. This determination does not depend on the property itself as much as it depends on how the property is used and what the owner's intentions are. As guidance, it is suggested that you review the following with your accountant or tax representative, as tax laws and incentives change without notification to the public."

Principal Residence ... a principal residence is a place a person lives or expects to return if they are temporarily away from it. It could be a single-family, detached home or condominium or a duplex, tri-plex or four-unit. The owner(s) can deduct the qualified mortgage interest and property taxes on Schedule A of their tax return. There is a capital gains exclusion on a profit of up to $250,000 for a single taxpayer and up to $500,000 for a married taxpayer.

Income Property - is improved property that is rented or leased to tenants as opposed to using it personally. It can include houses and condos, apartment buildings, office complexes, shopping centers, warehouses, and other commercial buildings. Depreciation is allowed on the improvements. For property held more than one year, the profits are taxed at long-term capital gains rates. This type of property is eligible for a tax-deferred exchange.

Investment Property ... can be raw land or improved property that is not rented or leased. This property is not subject to depreciation. If the property is held for more than one year, the profits are taxed at long-term capital gains rates. It is also eligible for a tax-deferred exchange.

Dealer Property ... this type of property is primarily considered inventory because the intention is to sell it without intentionally holding it for more than a year. It could be new construction such as a home builder. It could be an investor who buys a property and expects to sell it for more. There is not a requirement to make improvements. The profits on dealer property are taxed as ordinary, "sweat of the brow" income. Dealer properties cannot be exchanged.

A second home is like a principal residence in that you can deduct the interest and property taxes on your Schedule A, up to the limits. A second home, as well as a principal residence, can be rented out up to 14-days a year without threatening the status of the property. Seconds homes are not eligible for exchange because personal use properties are not allowed. A second home is not a principal residence and profits are taxed like an investment property. If you own it for more than a year, it is taxed at long-term capital gains rates.

Vacation homes are rented for more than 14 days a year and are like income property but with some additional rules that apply. If your personal use is 14 days or less or 10% of the time it is rented, your expenses can be deducted in excess of income. If you use it for more than 14 days or more than 10% of the number of days it is rented, it is considered personal use and your expenses are limited to the amount of income collected with no losses being deductible.

Taxpayers can strategically change the property type based on their intentions. A principal residence can be converted to income property. Dealer property could become a principal residence. A rental property could become a principal residence.

All of the ERA Justin Realty full-service Realtor agents can be reached at either of their two Rutherford offices at 118 Jackson Avenue and 57 Park Avenue. By office phone (201) 939-7500, (201) 438-0588 or (201) 438-SOLD. Also, view 1000s of homes at their websites at www.ERAJustin.com and www.ERAJustinRealty.com.

TV SHOW Myths vs. REAL LIFE

 

TV SHOW MYTHS vs REAL LIFE 

"Have you ever been flipping through the channels, only to find yourself glued to the couch in an HGTV binge session? We’ve all been there, watching entire seasons of shows like “Property Brothers,” “Fixer Upper,” and “Love It or List It,” all in one sitting," said Rufina "Maggie" Rodriguez/ERA Justin Realtor agent. When you’re in the middle of your real estate-themed TV show marathon, you might start to think everything you see on the screen must be how it works in real life. However, not necessarily correct.

Myth #1: Buyers look at 3 homes and decide to purchase one of them.

Truth: There may be buyers who fall in love and buy the first home they see, but according to the National Association of Realtors, the average homebuyer tours more as a part of their search.

Myth #2: The houses the buyers are touring are still for sale.

Truth: Everything is staged for TV. Many of the homes shown are already sold and are off the market.

Myth #3: The buyers haven’t made a purchase decision yet.

Truth: Since there is no way to show the entire buying process in a 30-minute show, TV producers often choose buyers who are further along in the process and have already chosen a home to buy.

Myth #4: If you list your home for sale, it will ALWAYS sell at the open house.

Truth: Of course, this would be great! Open houses are important to guarantee the most exposure to buyers in your area, but they are only one piece of the overall marketing of your home. Keep in mind, many homes are sold during regular showing appointments as well.

Myth #5: Homeowners decide to sell their homes after a 5-minute conversation.

Truth: Similar to the buyers portrayed on the shows, many of the sellers have already spent hours deliberating the decision to list their homes and move on with their lives and goals.

Bottom Line: Having an experienced professional while navigating the real estate market is the best way to guarantee you can make the home of your dreams a true reality. 

All of the ERA Justin Realty full-service Realtor agents can be reached at either of their two Rutherford offices at 118 Jackson Avenue and 57 Park Avenue. By office phone (201) 939-7500, (201) 438-0588 or (201) 438-SOLD. Also, view 1000s of homes at their websites at www.ERAJustin.com and www.ERAJustinRealty.com.

 

How Much Do You Know About Down Payments?

How Much Do You Know About Down Payments?

ERA Justin Realty's Lauren Waddell offers, "Whether you’ve owned a home before, or you’re ready to jump into homeownership for the first time, there are always a lot of questions swirling around about what is truly required for a down payment, and how to best source down payment assistance. Let’s tackle these two today."

1. How much do you really need for a down payment?

There is a long-standing misconception about down payment requirements. A survey from Fannie Mae shows only 17% of consumers know the minimum options are actually between 1 – 5% of the purchase price and 40% don’t know how much they need at all."

She continued, "There are many mortgage loans available that require as little as 3% down for first-time buyers, and some ask for only 3.5% down from repeat buyers. There are even loans available for Veterans that provide 0% down payment options too.

We’ve mentioned recently that you don’t need to come up with a 20% down payment to buy, and we’ve also shared how quickly you can save for a 3% or 10% down payment, depending on where you live. If you’re planning to put down just 3%, the research shows it may be possible in most states to have enough saved for a down payment in less than a year. That puts homeownership in a much closer reach for many potential buyers, maybe even you!

2. How can I get help with my down payment?

Regardless of the loans available, many buyers still need assistance with a down payment. The great news is, there are a lot of ways to tap into down payment assistance options. Here are just a couple of them:

Assistance from Family Members

The National Association of Realtors (NAR) said, “a third of recent first-time buyers received down payment assistance from family members.” They also mentioned, “the average net worth of those aged 75 and over stands at $264,800…They just might offer the boost the next generation needs to become homeowners.”

That means one of the ways to find help with a down payment is to accept a gift from a family member. If this is an option for you, make sure you talk to your loan officer before you accept the money, to ensure you document the process the way it is required by your loan. This way, it will be received properly and you can still potentially qualify.

Down Payment Assistance Programs

The reality is, not everyone has a loved one or a family member who can provide help with a down payment. There are, however, more than 2500 down payment assistance programs available (by local areas like city, county, or neighborhood), and some of them are even specifically for first-time buyers. The gap, as mentioned in the same survey, is “only 23% of consumers are familiar with low down payment programs.”

That’s why it is so important to get familiar with these options by doing your homework before you plan to buy a home. Determine what is available in the area where you ultimately want to live, so you have all the details you need to take advantage of the down payment assistance option that is best for your family.

If buying a home is one of your long-term goals, you may be able to get there sooner than you think by tapping into one of the many down payment assistance programs available.

The ERA Justin Realty full-service Realtor agents can be reached at either of their two Rutherford offices at 118 Jackson Avenue and 57 Park Avenue. By office phone (201) 939-7500, (201) 438-0588 or (201) 438-SOLD. Also, view 1000s of homes at their websites at www.ERAJustin.com and www.ERAJustinRealty.com.

10 Steps For Buying a Home This Summer

10 Steps For Buying a Home This Summer

 

If you are thinking of buying a home, you may not know where to start. Here is a simple list of 10 steps that you will go through to purchase a home. Make sure to ask your agent for details about each step. ERA Justin Realty has been a New Jersey market leader since opening its doors in 1950. 

1. Save your down payment.  (It may be as low as 3.5%)
2. Know your credit score. 
3. Work with an accomplished real estate agent. 
4. Get pre-approved.  
5. Go home shopping.  
6. Make a proper offer. 
7. Have your home inspection. 
8. Have your mortgage appraisal. 
9. Close the sale. 
10. Congratulations, you are a home owner and can Move In.

Our ERA Justin Realty group of Realtor Broker Owners, agents, management staff and administration team are available to serve your needs daily. The 10 steps and more is what we do each day for our buyers and sellers and how we accomplish successes for you.

 

Further, we are the #1 Brokerage in closed Rutherford listings and sales for the last 18 consecutive years with over 1,000 reviews and testimonials from our buyers and sellers.

 

Questions and want more information on our real estate market leaders and real estate topics, consumers can reach the ERA Justin Realty team at either of their two Rutherford offices at 118 Jackson Avenue or 57 Park Avenue. By phone at (201) 939-7500, (201) 438-0588 or (201) 438-SOLD. Additional real estate information is also available at the firms 1000's of homes websites at www.ERAJustin.com and www.ERAJustinRealty.com.

 

 

   

ERA Justin Realty 1st & 2nd Quarter 2019

 

These ERA Justin Realty Leadership Circle achievers, whose additional certifications include Historical Home Specialists, Senior Residential Specialists, and consistent Leadership Circle Achievers are New Jersey Five Star Home Professionals.

For the first and second quarters of 2019, Kristen Davis, Sophia Vazac, Carol D. Calamari, Lee Schilare, and Fara Espandi (pictured from left to right: Julia Dagistanli - not pictured) know the secrets to real estate success.  It is easy to see that these sales professionals are focused on exceeding the needs of their sellers and buyers. They would like to be your Realtor. 

They are also knowledgeable on a variety of topics.  Throughout the years, they've been featured in, Moving And How It Affects Children, How Renters Can Become Buyers, Dollar For Dollar Return On Renovations, Empty Nesters And Returning Children, Avoiding The Money Pit, as well as other timely articles for buyers and sellers.

Although showing and selling real estate is a 365-day job for these ERA Justin Realty real estate achievers, their responsibilities go beyond what the public sees.  The firm has a vast resource library of important topics to share with the public.  They and their brokers, Ron Darby and Jennifer Darby Metzger are always busy advising homeowners on topics that aid them in making sound real estate decisions regarding their homes. 

“There is a difference in real estate companies,” stated Darby.  “We have on file for the asking, ‘What people are saying’ our report of over 1,000 quotes and testimonials from our sellers and buyers.  No other area real estate firm can offer that. Ask any of these Leadership Circle achievers who will provide a complimentary Comparative Market Analysis (CMA) of your house and you will have the answers to your real estate questions."

"These ERA Justin Realtor achievers' are our best-of-the-best for the first and second 2019 quarters. They achieved our ‘Leadership Circle’ status for their efforts above and beyond for their sellers and buyers," Metzger concluded.

For more information on these real estate market leaders and on real estate topics, consumers can reach them at either of their two Rutherford offices at 118 Jackson Avenue or 57 Park Avenue. By phone at (201) 939-7500, (201) 438-0588 or (201) 438-SOLD.  Additional real estate information is also available at the firms 1000's of homes websites at www.ERAJustin.com andwww.ERAJustinRealty.com.

ERA JUSTIN REALTY PROVIDES ENERGY TIPS 2019

Losing money is never a good thing. You want your home to be comfortable, but you certainly don't want it to cost you more than is necessary. Energy efficiency is both good for the environment and for your bank account. A quick look around your property can help you save when it comes to energy efficiency issues.

Michael Anderson, ERA Justin Realtor agent offers these tips to South Bergenite readers. “Older homes that haven't been updated can often create energy issues, but they don't have. Newer homes may suffer less from energy issues, but every home needs to be inspected from time to time. First, look for the obvious problems, such as cracked windows, a storm door that is not closing properly, or even a split in the foundation. Warm (or cool) air can seep through, costing you valuable money. Try holding your hand over door and window frames to see if the air is coming through. On windy days, place a piece of tissue paper next to these openings. If the tissue moves, you've got a problem. It may be time to take action. The good news is that you have very little to lose and a lot to gain. Try adding caulk around your door and window frames and along basement walls. There are inexpensive 'sweepers' you can place at the bottom of your door to help keep out drafts. Weatherstripping is usually easy to install and is quite effective in sealing up small areas where air leaks through. Be sure to replace any broken panes. A newer and better sealing storm door might also be an option.

In the winter, a rug or 'draft stopper' can be placed by the door to block heat from escaping. Let the sunlight work for you by opening drapes when the sun is out and closing them later in the evening. In fact, the fabric is a terrific way to keep a room warm.

Adjusting the thermostat only a few degrees can make a tremendous difference in that energy bill. If it feels a little cooler than you would like in the winter, put on a sweater. As long as everyone in the house is healthy, it shouldn't make any difference, except to your bank account. In the summer, ceiling fans can circulate the air, making your home feel cooler without costing so much. Even in the winter, you can reverse the blades on the ceiling fan and it will move the warm air around, making the room seem warmer without turning up the thermostat.”

Michael concluded, "All across the nation, the most sought award that can be achieved in business is the ‘J.D. Power & Associates’ award. Only outstanding business entities are honored and receive it. ERA Real Estate was the recipient of ‘Highest Satisfaction for First Time Home Buyers Among Full-Service Real Estate Firms’ Also awarded ‘Highest Satisfaction for First Time Home Sellers.’ For these reasons ERA Justin Realty should be your buying and selling Realtor of choice."

The ERA Justin Realty full-service Realtor agents can be reached at either of their two Rutherford offices at 118 Jackson Avenue and 57 Park Avenue. By office phone (201) 939-7500, (201) 438-0588 or (201) 438-SOLD. Also, view 1000s of homes at their websites at www.ERAJustin.com and www.ERAJustinRealty.com.

 

ERA Justin Realty Continues Collaboration With Move For Hunger For Food Pantries

ERA Justin Realty Continues Collaboration With Move For Hunger For Food Pantries

ERA Real Estate, a global franchising leader and ERA Justin Realty New Jersey, previously announced that they will be a real estate brand working on a national level with Move For Hunger, a non-profit organization that mobilizes the relocation industry to reduce fight hunger. The ERA Justin Management Team: Jennifer Mazone, Michelle Korosy, Glenn Elliot, Jennifer Metzger, Cindy Plessel, Ron Darby, Mazzion Schnackenberg and Nona Orlando, in conjunction with the staff of Realtor agents, enabled the ERA® network of participating brokers and their affiliated agents to tap into Move For Hunger's network of more than 1,000 relocation companies to collect food and fill food pantries in advance of the holiday seasons and support the ongoing ERA "Feed the Need" campaign.

"Connecting with ERA agents and brokers both complements and advances our mission, so this collaboration was a natural fit," explained Adam Lowy, founder and executive director of Move For Hunger. "By combining the strength of our network of relocation companies with ERA Real Estate's network of brokers and agents, we have the ability to get food to those who need it most."

"Millions of Americans face food insecurity every day and together with Move For Hunger, we can help put food on the tables of families across the country," said Simon Chen, president and CEO of ERA Real Estate. "We look forward to working with Move For Hunger to provide our passionate brokers and agents the opportunity to hold local food drives during the upcoming holiday season and beyond."

"ERA brokers and agents have a commitment to service that goes far beyond their residential real estate expertise," said Stephanie Reyna, national vice president of growth & engagement for ERA Real Estate. "We continue to be inspired by the way they step up and demonstrate leadership in their communities."

Ron Darby and Jennifer Darby Metzger, ERA Justin Realty Broker Owners participate in many varied charitable organizations. Their firm has been strongly involved since ERA Justin Realty's beginnings in 1950.

The Feed the Need campaign officially launched with the following brokers and agents: ERA American Real Estate, ERA Neubauer Real Estate, Inc., ERA Davis & Linn, ERA Justin Realty Co., ERA Central Realty, ERA Home Run Real Estate, and ERA Old South Properties, Inc. with more to be announced. For more information call ERA Justin Realty at (201)939-7500.