Like fine wine, a good agent gets better with time

I want to help not only when you buy and sell, but all the years in between.

Happy Thanksgiving

Thank you for allowing me to be a part of your real estate journey. Happy Thanksgiving!

Veteran Day

Using their benefits to turn the key, because heroes deserve a welcoming hearth.

Halloween 2023

To keep our children safe, be extra careful driving through the neighborhoods.

The Danger of Do-It-Yourself Divorce

Gavel and wedding rings, for divorce concept.

Ken & Barbie have been married 20 years and have owned their current home for over 10 years. Without the benefit of legal or tax advice, they decide to divorce with Ken taking his retirement and Barbie taking the equity in the home which are equal in value.

It appears to be equitable until a year later when Barbie decides to sell the home.  It sells for the same market value at the time of the divorce but now Barbie pays all the sales costs.  The unpaid balance on the home was much larger than normal because it had been refinanced for $750,000 two years earlier.

When Ken gave Barbie his equity in the house, he also gave her his tax liability in the home.  Barbie has a substantial capital gain because the home was purchased for a much lower price ten years earlier.  Capital gain is calculated by taking the sales price less sales costs, plus capital improvements made, less the purchase price.

Since she is single, she has a $250,000 exclusion and the balance of the gain of $456,750 will be taxable as long-term capital gains.  Let’s assume her rate is 15%, Barbie would owe $68,513 in capital gains taxes.

When calculating Barbie’s net proceeds from this sale and accounting for the sales costs, mortgage balance, and federal taxes due, she only realizes $88,487 in this example while Ken walked away from the divorce with the full value of his retirement account of $225,000.

It doesn’t appear to have been an equitable settlement.  Contributing to this inequity was an apparent misunderstanding of how taxes are calculated and that the expenses incurred with the sale of the home as a single person would be borne solely by herself.

No gain or loss is recognizable on the transfer of the residence if related to the end of a marriage.  It is treated as a gift with no gift tax due if the transfer is within two years prior to the divorce or one year following.  There is no change in basis; it is carried over to the gifted party.

A marriage is a legal arrangement and divorcing deserves the benefit of expert advice.  An attorney who is familiar with potential tax consequences could have advised his/her client about the potential tax consequences and possibly suggested a more equitable division of assets.

This example is used to show you how it can appear to be an easy solution to dividing the assets.  In an emotional state, one person could agree to something that could be costly later. 

Division of Assets
Home’s Market Value at time of Divorce	$975,000
Unpaid Balance at time of Divorce	$750,000
Equity in Home at time of Divorce	$225,000
Ken’s Retirement Value at time of Divorce	$225,000
Computation of Tax
Subsequent Sales Price by Barbie	$975,000
Less Sales Costs	$68,000
Less Basis (the home was refinance several times with cash out)	$200,00
Capital Gain	$706,750
Less Section 121 Exclusion for single person	$250,000
Remaining Taxable Gain	$456,750
Tax Due at 15%	$68,513
Computation of Proceeds
Sales Price	$975,000
Less Sales Costs	$68,000
Less Mortgage Balance	$750,000
Less Federal Income Tax Due	$68,513
Net Proceeds	$88,487

Prevent water damage to your home

Don’t let water sneak in and wreak havoc! Seal the deal against damage by taking simple steps to protect your home from watery woes.

Your Referrals Mean the World to Us

Shot of smiling mature woman making a phone call and using laptop while working online. Home office.

Referrals are the lifeblood of any business, and real estate is no exception. When someone you trust refers you to a service provider, you’re more likely to do business with them because you know that they’ve been vetted by someone you know and trust.

That’s why we’re so grateful for the referrals we’ve received from our past clients. It’s a wonderful feeling to know that our work has been so appreciated. If you know anyone who’s thinking of buying or selling a home, please don’t hesitate to refer them to us. We’d be honored to help them.

We’re a team of experienced real estate agents who are passionate about helping people find their dream homes. We have a proven track record of success, and we’re dedicated to providing our clients with the best possible service. If you know anyone who’s thinking of buying or selling a home, please refer them to us.

We’re known for our excellent customer service and willingness to go the extra mile to help our clients achieve their goals.

Thank you for your referrals! They mean the world to us.

Awareness is Key to Safeguarding Against Scams

When it comes to safeguarding against scams, awareness is key. By being vigilant and recognizing consistent red flags, you can effectively thwart scammers in their tracks. Stay one step ahead and keep an eye out for these warning signs to protect yourself from falling victim to fraudulent schemes.

Unexpected contact – You receive unanticipated contact by phone, text, or email from an individual or organization regarding an invoice, order, delivery, or charge that you don’t know about.

Sense of Urgency – Scammers employ tactics to manipulate and create a fabricated sense of urgency, resorting to rude or aggressive language to pressure you into taking immediate action.

Unusual Payment Requests – Be cautious if someone asks you to make payments or send money through unconventional methods such as gift cards, cryptocurrency, payment apps, or online wire transfers to deceive you into paying for something, resolving a fabricated issue, claiming fake sweepstakes winnings, or promising unrealistically high returns on investments. .

Coercive Communication – threatening language, claiming that you owe money and using scare tactics like threatening to involve the police if immediate payment is not made.

Love Scam Trap – Watch out for a potential online love interest who showers you with romantic words but avoids meeting face-to-face. Be cautious of these “romantic emergencies” and avoid sending money to someone you haven’t met in person.

Homebuyers Specific … Particularly during the closing process, scammers employ deceptive tactics by sending fraudulent emails to homebuyers, impersonating trusted individuals such as the real estate agent, settlement agent, or legal representative. These spoofed emails contain fictitious instructions for wiring closing funds, putting unsuspecting homebuyers at risk of financial loss.

Always verify with your agent and another trusted individual like a settlement or mortgage officer that the request for funds is legitimate before transferring money.

If you feel that you have become a victim of such a scam, contact your bank or wire-transfer company immediately to ask for a wire recall.  Responding as soon as possible may increase the likelihood you’ll be able to stop the transfer and/or recover your funds.

For more information, see Mortgage Closing Scams on the Consumer Financial Protection Bureau website.

If you want to report a suspected crime, contact the Internet Crime Complaint Center or IC3.  The nation’s central hub for reporting cyber crime is run by the FBI, the leading federal agency for investigating cybercrime.  Go to their website for more information and to file a complaint.

Happy Labor Day!

Cheers to a day of rest and reflection on the hard work that makes our dreams possible. Happy Labor Day! 💪🛠️ 

Profile of Typical American Home

Even if this isn’t what you’re looking for, we’re ready to help you find your dream home.