Gifting The Family Home

ERA Justin Realty brings helpful topics to Bergenite readers. Ron Darby, broker co-owner offers tips and hints about gifting the family home. The firm serves buyers and sellers in Bergen, Passaic, Essex and Hudson Counties and are celebrating their 62 years in area real estate.

 

                           ERA Justin Realty Report:  Gifting The Family Home

“If you are getting ready to move out of your longtime home and into more sunshine, you can actually gift your home to a child or friend but that gift will come with a few strings attached. In many countries around the world, once the parents die, the children simply move into the home and take over the master bedroom. While that progression still occurs in the United States, estate taxes, home values, job transfers, and the desire for a separate space and different environment have changed the use of the traditional family home. The bottom line is that the home has evolved from basic shelter to the average person's most valuable possession. It needs to be carefully protected, guarded, and even nursed along--much like the responsibilities that took place within the home itself. And the financial value is usually accompanied by priceless memories and experiences, making the family home beyond doubt the ultimate asset.”  This is information brought forth by author Tom Kelly in his book "Real Estate for Boomers and Beyond,” reported ERA Justin Realty’s broker co-owner Ron Darby, his firm awarded for their commitment to excellence from approximately 30,000 ERA brokers and agents.

Darby stated, “First and foremost, your child or friend's basis in the house will be what you paid for the property, plus major improvements. Because this cost you paid years ago may be lower than today's home value, there's a chance tax will be owed on a subsequent sale. Carefully note that tax laws change and everyone should review their specific situation with their tax advisor for the most current laws and tax information.”

Kelly’s book states, “For example, if you purchased your home in 1970 for $60,000 and it is now worth $450,000, your child's basis would be $60,000 if you chose to transfer the home to the child as a gift. If the married child sells the home 10 years down the road for $760,000, their tax liability would be on $200,000 ($760,000 minus the $60,000 basis, minus the $500,000 exclusion for married couples). Taxpayers in the 15 percent tax bracket would thus owe the Internal Revenue Service approximately $30,000 in capital gains tax. The actual gain is the difference between the adjusted sales price (selling price less selling expenses) and the adjusted basis. The adjusted basis is the original cost plus capital improvements. Capital improvements are the cost of improvements having a useful life of more than one year. Examples include the new roof, dock, deck, remodeled bathroom, and finished basement. Generally, an expense is a capital improvement if it adds value to the property or extends its useful life. If these criteria are not met and the expenditure is considered necessary to maintain current usefulness, it is a maintenance cost.

The outright gift would also reduce your lifetime gift tax and estate tax exemptions. While the limits on both the lifetime gift tax and estate tax used to be the same (there was one overall exemption, and the individual used it up by making gifts during life and at death), the 2001 legislation set the gift tax and estate tax on different roads beginning in 2004. Both were combined into a ‘unified’ exemption because gifts made during life also counted against the total. The overall, or unified, exemption remains for the entire estate, but a gift exemption limits the amount that can be given during a lifetime. Once the unified exemption is used up, the tax rates that apply are quite high. The estate tax is being phased out over a 10-year period, but the gift tax will remain in place. The gift tax exemption is $1 million in 2006, but the estate tax leaps to $2 million. In future years, the gift tax exemption will remain at $1 million, while the estate tax exemption rises until the estate tax is fully repealed in 2010. At that time, the top gift tax rate again will equal the top income tax rate.

If you are going to gift your home to an individual, it's best to offset the amount by first using your annual gift tax exclusion of $11,000 per gift. You can gift $11,000 (this amount will rise and is tied to inflation) to any one person in any year. Hence, if you and your spouse each make a gift to both your child and her spouse, you can offset $44,000 of the home's value. Then, as long as the home's net figure is less than $1 million, you won't owe any current tax (unless you made substantial gifts earlier that reduced your remaining exemption).”

Darby concluded, “Tax regulations do change, so take the time to check with your tax attorney or your accountant before making any moves. Be certain that goals are shared and discussed. You'll find it saves time, money and anxiety.”

ERA Justin Realty proudly received the prestigious ERA 2003 through 2011 Commitment to Excellence Award, from approximately 30,000 ERA real estate brokers and agents.  For these reasons ERA Justin Realty should be your buying and selling Realtor of choice.

All of the ERA Justin Realty listing and sales professionals 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 1000's of homes at their websites at www.ERAJustin.com, www.ERAJustinRealty.com and www.SellBergenCounty.com.

ERA Justin Reports On Recommended Work Before Selling

ERA Justin Realtor Michelle Korosy offers a report on recommended work before selling.  ERA Justin Realty serving Bergen, Passaic, Hudson and Essex Counties since 1950 has generated many thousands of successful real estate transactions. Korosy is an integral part of the real estate team who serves the firm's buyers and sellers.

 

ERA Justin Reports On Recommended Work Before Selling

Sellers often order pre-sale inspection reports. This inevitably raises the question of how much, if any, of the recommended work should be done before selling.  Ideally, any defect that would be hazardous to buyers who preview the property during the sale process should be corrected. An example is a trip hazard that might cause someone to fall. In addition, to maximize your return from the sale, you should repair defects that adversely affect how the property looks.

Michelle Korosy, an ERA Justin Realtor said, “First impressions are important. So, if the fence or porch portions are rotted and look shabby, you might want to repair them. If the exterior paint is peeling, repainting is in order if the budget allows. You get positive results when you repair a defect and improve appearance by doing so.  For example, let's say that the wood pest (also known as termite) inspector finds damage under the vinyl covering in a bathroom. If the vinyl is worn and outdated, you'll do better on the sale if you replace the floor covering with new covering. In the course of doing this, the damaged wood can be repaired. The result is that the house shows better and a defect is eliminated--two benefits for the price of one.

You certainly can't be expected to rebuild your home in order to sell it. Nor is this a sensible thing to do economically. As an example, take a house that had a deck that looked okay and wasn't unsafe. But there was dry rot damage scattered throughout the deck. The only way to repair the deck was to replace it. It would be difficult to get the job done in the timeframe in which the seller wanted to sell.  The deck was old and no longer met current code requirements. It would have had to be redesigned. So the seller decided to leave the deck as it was and disclose that the deck needed to be replaced. The future owners could have the new deck designed to meet their needs at a later date. Upfront disclosure is better than surprises during the sale process.

When structural elements are in need of repair and you haven't the time or money to repair them, it's a good idea to get repair estimates and make these estimates available to prospective buyers before they make an offer. This way, you're in control of the process and can find reliable contractors or engineers who will give you reasonable and not exorbitant estimates.

It can be unsettling to a buyer to discover that the roof is in poor condition or the foundation needs work. Most buyers will have no idea how much it will cost to make repairs. Fear of the unknown makes people anxious, which isn't a good frame of mind for someone who's trying to decide whether to buy your home."

Ron Darby Broker added, “At ERA Justin Realty the words, ‘There is a difference in real estate companies’ is more than a phrase.  We live it every day.  Because of our daily priorities, we proudly received the prestigious ERA world-wide 2003 through 2011 ‘Commitment to Excellence Award’, a firm from approximately 30,000 ERA brokers and agents nationally. Ask to see our written report of over 700 reviews of our company from our buyers and sellers. For these reasons ERA Justin Realty should be your buying and selling Realtor of choice.” 

All of the ERA Justin Realty full service Realtor professionals 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 and (201) 438-SOLD.  Additional cutting-edge real estate technology information awaits you at www.ERAJustin.com and www.ERAJustinRealty.com.  For a rewarding real estate career visit www.NorthJerseyRealEstateCareers.com.

ERA Justin Realty Home Protection Plans Give Peace-of-Mind

Jennifer Darby Metzger, ERA Justin Realty Broker Co-owner shares valued information about home protection plans and how they benefit both buyers and sellers. The company on-the-grow attracts career professionals having six new agents recently join their team who will make the plan available to their buyers and sellers.

 

                     ERA Justin Realty Home Protection Plans Give Peace-of-Mind

Everyone has his or her own "house horror story." The Sheffield’s saga began just days after they moved into their new home and continued throughout the first year. The pool pump broke, the built-in vacuum stopped working, and most devastating, the air conditioning system ceased operating on the first day of the summer heat wave. Thereafter, the Sheffield home was nicknamed  "The Money Pit."

Fortunately, the Sheffield’s had the forethought to purchase a home protection plan from their ERA Realtor, which covered all or some of the costs of repairing or replacing the broken home components.

Jennifer Darby Metzger, ERA Justin Realty Broker Co-owner said, “The Sheffield’s story repeats itself thousands of times a day across the country.  It is for that reason that ERA-Justin Realty has the ERA Home Protection Plan program available for both our Buyers and Sellers.”

Jennifer continued, “A home protection plan safeguards a Buyer or Seller from unexpected expenses when covered mechanical items break down. Our ERA Buyer Protection Plan and Seller Protection Plan provide replacement coverage as well as comprehensive repair of major mechanical systems and appliances such as air conditioning, heating and electrical systems, interior plumbing, built-in appliances, water heaters and accessible ductwork, subject to a small deductible per service call.

For Sellers, a home protection plan makes a house desirable to the market and protects them at a time when they would rather not make major investments in their property. It has been reported that on average, homes listed with a warranty sell more rapidly than homes listed without a home warranty. The ERA Protection Plan goes one step further by covering the Seller for up to six months provided that the Seller agrees to purchase the plan at a nominal fee for the Buyer. It's a win-win situation for the Seller having protection in place while the house is on the market for sale.

For Buyers in New Jersey, the ERA Protection Plan provides coverage generally for a year after the purchase on resale homes.

If one considers that the most costly purchase in life is generally one's house, a home protection plan is a small price to pay for peace of mind and to insure oneself against the unexpected.”

“There is a difference in real estate companies, and our ERA Protection Plans are perfect examples. We ask Buyers and Sellers to compare.  We believe that in order to exceed expectations of what a real estate firm is about, we don’t offer just real estate basics, and we try to be as comprehensive as possible.  In that way, we know that our Buyers and Sellers will hold us all in the highest regard.  Ask to see our over 700 written 'What People Are Saving'  reviews about our company. Additionally, we've recently had six new Realtors join our strong team.  All of our team can answer your home protection plan questions,"  she added.

The ERA Justin Realtor professionals 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 1000's of homes at their website at www.ERAJustin.com, www.ERAJustinRealty.com and www.BuyBergenCounty.com.

Daniel Jones recently joined the "Top-100" ERA Justin Realty firm as a Realtor. With membership at the New Jersey Association of Realtors, New Jersey Multiple Listing Service and the RealSource Association of Realtors, he is focused to see to the housing needs of buyers and sellers throughout Bergen, Passaic, Hudson and Essex Counties.

Realtor Daniel Jones Joins ERA Justin Realty

Jennifer Darby Metzger, ERA Justin Realty Broker Co-owner welcomed Daniel Jones to their firm.

Upon accepting a Realtor position, he stated, "I'm eager to begin my career here. It is my belief that people do not want to be sold something. What people want is for someone to help guide them to make a well informed decision. As a professional, it is my purpose to share my knowledge and experience. As a friend, it is my intent to express my enthusiasm and commitment. As your trusted Realtor, it is my goal to serve you."

When asked to express to us his business ethics, he offered, “I'm focused, driven, consistent and always committed to my responsibilities to my buyers and sellers.”

Continuing on, with an optimistic and genuine tone, Daniel stated, “I am always looking forward to meeting new buyers and sellers and offering my knowledge and tenacious work ethic to accomplish their housing goals.”

Working with the ERA Justin agents, I know that their high standards match mine. The firm offers me greater opportunities to serve the needs of my clients through their strong marketing of listings as well as continuing education for their agents. They have proven themselves to thousands of buyers and sellers since opening their doors in 1950. They serve the areas where both myself, and my clients live. They exceed expectations each day.”

Daniel continued, “A positive atmosphere creates positive results. At ERA Justin Realty, they care about their agents like family. Their agents' success and well-being is the foundation upon which this company is built and, in turn, translating to strong listings taken and closed sales.”

Ron Darby, Broker Co-owner added, “We are pleased that Daniel has selected our firm for his real estate career. Residing in Carlstadt, he is familiar with our marketing areas. We are confident that he will give 150% of his time and energy for the success of his buyers and sellers. He is meticulous, organized and understanding in his approach to our business.

There is a difference in real estate companies. Attending on-going advanced training, seminars, round-table discussions with industry leaders and focus groups is what we continually do at our firm. We believe, in order to exceed seller’s expectations of what a real estate agent is about, we don’t learn just the basics. We want to learn, know and teach much more than is ever expected of us. In that way, we know that our sellers will hold us in the highest regard. Daniel is part of this process."

ERA Justin Realty sellers have put their reviews of the company in writing. They have on file for review, ‘Real Estate Results In Writing’ their report of over 700 testimonials from satisfied sellers and buyers.

Daniel Jones and all of the ERA Justin Realty full service real estate team 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 1000's of homes at their websites at www.ERAJustin.com, www.ERAJustinRealty.com and www.SellBergenCounty.com.

ERA Justin Realty Brokers Honored at President’s Circle Annual Business Forum

ERA Justin Realty Broker Co-owners Ron Darby, Jennifer Darby Metzger and Carol Darby at the ERA President's Circle business forum. Their firm consistently ranks as an ERA Top-100 firm globally. Celebrating their 62nd anniversary as a market leader, they serve Bergen, Passaic, Hudson and Essex Counties.

 

       ERA Justin Realty Brokers Honored at President’s Circle Annual Business Forum

Ron Darby, Jennifer Darby Metzger and Carol Darby Broker Co-owners of ERA Justin Realty were recognized as one of the top brokerage firms by global real estate company, ERA Franchise Systems, at the recently held annual ERA President’s Circle Leadership Forum held October 15-18, 2012 in Florham Park, N.J., an exclusive meeting of some of the country’s most successful real estate brokers.

Named one of the “Top-100” brokerage firms from nearly 30,000 ERA real estate brokers and agents worldwide, they represented ERA Justin Realty.

Throughout the three-day event, brokers shared strategies for providing better customer service for their buyers and sellers in this modifying real estate market. They also participated in round-table discussions and question-and-answer sessions.

Jennifer Darby Metzger, also a charter member of the ERA Young Leader's Network was interviewed from the stage for her insights into the future of regional real estate and the growth of her firm.

 

"The ERA President's Circle conference offers an unparalleled opportunity for our brokers to re-energize and network with colleagues from all over the country," said Charlie Young, president and chief executive officer, ERA Franchise Systems. "The Darby's are 'Top-100' brokers, and their recognition is a reflection of the value that ERA Justin Realty brings to home buyers and sellers throughout their marketing areas including Bergen, Passaic, Essex and Hudson Counties. They are consistently honored for their professionalism, integrity and service to their buyers and sellers.”

For more information consumers can reach the ERA Justin Realty sales 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, www.ERAJustinRealty.com and  www.BuyBergenCounty.com. 

Carol Darby, Ron Darby and Jennifer Darby Metzger, broker co-owners form the management team for their staff of Realtors at ERA Justin Realty. A firm established in 1950, they provide information about selecting a Realtor for your real estate transaction.

ERA Justin Realty Report 2012:

Be Selective When Picking a Real Estate Agent

According to Ron Darby, ERA Justin Realty Broker co-owner and a company market leader since 1950, “For those considering buying or selling a house, this information may be very beneficial to you. Bring together the right real estate team headed by the Realtor professional you choose. In this detailed real estate market where buyers, sellers, lenders, inspectors are strongly regulated, one should know the details so they can be successful in their purchase or sale.

Real estate training of a Realtor is necessary as the regulations governing real estate transactions go through continuous transition. In any business, there are trained real estate agents and those who may be simply a best friend of a buyer or seller who practices real estate on a limited basis and may not know the local markets, laws that govern the transaction, limiting buyers or sellers abilities to be successful in the transaction. It is not always how many years a firm has been in the business or number of homes sold.

Select your Realtor and firm that provides excellence in service. Realtor agents who do a lot of business and are constantly trained should have a wealth of experience to draw from that can be helpful when problems arise.”

Jennifer Darby Metzger, ERA Justin Realty Broker co-owner stated, “Too many times in our industry listings are taken far above the market value and above pricing proven by a comprehensive (CMA) comparative market analysis. Some listings taken by a brokerage with unrealistic pricing will sit on the sidelines as new properly priced listings come to the marketplace and are quickly sold. Furthermore, carefully determine the amount of sales in your community by the firm you are considering. Sales quoted by that Realtor outside of your community or at a distance have diminished impact for a successful sale in your specific community. Specific information is what helps create a successful transaction.

Be sure you are presented with a current, accurate and complete CMA report detailing homes for sale, those that have sold and closed and those that have expired because they did not sell. All sellers are entitled to know the entire story so they can make an educated decision as to the proper pricing of their house when placed on the market. At ERA Justin Realty, our Realtor professionals are trained to bring exacting information to our sellers. Once done, our buyers can be confident that the house they are considering or have purchased will appraise for mortgaging as long as the buyers are qualified for the loan. This is a must for the services that we provide at ERA Justin Realty. Our Realtor agents owe a great degree of focus and responsibility to those sellers who list their houses with us.”

Carol Darby continued, “It’s typical for a seller to be swept into the enthusiasm of a Realtor who speaks positively about your house, but in this current market that Realtor is under a strong degree of responsibility to advise of the current pricing and what pricing is not realistic. We make the process easy by offering over 700 written reviews of our services, ‘What people are saying’ consisting of published quotes and testimonials from our satisfied buyers and sellers.”

Metzger concluded, “We build strong rapport and trust. You'll be working with one of our Realtor professionals throughout the transaction. Working with one of our trusted Realtors is easy when you respect, trust and communicate well together. Request many references, not just one or two. We are one successful team of Realtor professionals.

Pacing this year, as in previous years, we were awarded as a ‘Top-100’ ERA real estate firm from nearly 30,000 ERA brokers and agents from their firms. Our reviews, quotes and testimonials are yours to be reviewed, simply for the asking. We have been a Realtor of choice for multi-thousands of buyers and sellers since we first opened our doors in 1950. Equally impressive is our relationship with Cartus, the worlds largest corporate relocation/referral real estate network representing 'Fortune-500' companies, where we do business for their clients in buying and selling in our marketing areas of Bergen, Passaic, Essex and Hudson counties. These corporate relationships bring more selling and buying opportunities for all.”

Contact any of ERA Justin Realty’s Realtor professionals at their Rutherford offices at 118 Jackson Avenue and 57 Park Avenue. By office phone (201) 939-7500, (201) 438-0588 and www.ERAJustinRealty.com.

Pamela Collins recently returned to ERA Justin Realty from her position at Prudential Professionals Real Estate. Serving her buyers and sellers throughout Bergen, Passaic, Essex and Hudson Counties, Collins, a Realtor professional was welcomed home by all at the firm.

 

ERA Justin Realty Welcomes Realtor Pamela Collins

Focus builds knowledge, character and drive to succeed in real estate sales. According to Cathy Vick, a Realtor professional with ERA Justin Realty, she stated, “It begins with schooling and training. Pamela Collins has returned to our firm from Prudential Professionals of Rutherford.

Pamela has been a resident of Rutherford for more than 20 years, beginning her early career in television and radio marketing, then accepting a position in elementary education teaching grade eight. She has two sons. Alex is a Rutherford high school senior. Peter has an employment position in Alaska.”

Collins said, “When I felt it was time to grow and become part of a real estate firm, with my ties to Rutherford and our other local communities, my choice was to be part of a local firm that has national recognition. That choice for me, after spending a brief time with another real estate firm was ERA Justin Realty. Being part of our many communities, with friends, family and all those who know me, I look forward to serving them in their real estate needs. I’m also excited to introduce myself to those buyers and sellers I've not yet met and achieve their needs and goals. ERA Justin Realty will make that process much easier for me. They are real estate market-leaders with cutting-edge technologies to match buyers to their dream house while making selling easier with extensive marketing plans and a vast national referral and relocation system for those sellers who may be moving across the nation to new locations.”

Vick added, "She is a member of the New Jersey Association of Realtors, as well as the National Association of Realtors, the New Jersey Multiple Listing Service and the RealSource Board of Realtors. Our brokers and staff immediately welcomed Pamela to the firm. She brings professionalism and real estate experience to her buyers and sellers.

 Because of our daily priorities, we proudly received the prestigious ERA global 2003 through 2011 ‘Commitment to Excellence Award,' from nearly 30,000 ERA brokers and agents. Only outstanding business entities are honored and receive it. For these reasons ERA Justin Realty should be your buying and selling Realtor of choice.”

All of the ERA Justin Realty full service Realtors 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. View 1000's of homes at their websites at www.ERAJustin.com and www.ERAJustinRealty.com.