Real Estate Weekly: February 18, 2022

INSIDE

This Issue

PREPARING TO SELL A HOME? DON’T FORGET ABOUT THOSE REAL ESTATE TRANSFER TAXES PAGE 5 IT TAKES A VILLAGE: THE APPEAL OF MASTER PLANNED COMMUNITIES PAGE 7

FEBRUARY 18-24, 2022

INSIDE

TABLE OF CONTENTS

PAGE

5

Preparing to Sell a Home?

Don’t Forget About Those Real Estate Transfer Taxes.........................................P5 Q&A

Ask Our Broker.......................................................................P6

It Takes a Village: The Appeal of Master Planned Communities ..............................P7

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February 18, 2022

STAT Real Estate Stat

744,000 The rough number of new home sales in the United States in the month of November 2021.

Source: National Association of Realtors

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February 18, 2022

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February 18, 2022

Preparing to Sell a Home?

Don’t Forget About Those Real Estate Transfer Taxes

referred to as a deed tax or documentary fee in connect’s a golden age for home tion with the sale of residential sellers, who continue to property,” Daniel A. Kaskel, command record high a real estate attorney in Boca prices for their properties from Raton, Florida, says. “Debuyers. But one slight drawpending on the jurisdiction, back to a higher sales price transfer taxes are paid to the is that you’ll likely pay more city, municipality, and/or taxes in the form of real estate county in which the property transfer taxes imposed by your is located. Although collected state, county, and/or local mu- at the local level, these taxes nicipality when title to your are often shared, in part, with real estate is transferred to the state and local bodies, includnew owner. ing school boards.”

“A majority of states and the The real estate transfer tax District of Columbia charge is an ad valorem tax, meana transfer tax, sometimes ing that it is calculated as a

By Erik J. Martin

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February 18, 2022

percentage of the sales price.

“In Illinois, for instance, the state will collect a transfer tax from the seller that is equal to $0.50 for every $500 of the sales price. So, if the home is sold in Illinois for $500,000, the state will collect $500 in transfer tax. On that same deal, the county where the real estate is located will also collect a transfer tax of $0.25 per $500 from the seller. Some municipalities and villages in Illinois also collect a transfer tax, the amount of which is determined by them,” explains Mario Iveljic, a licensed real

estate agent and attorney in Chicago.

Transfer tax costs vary widely from state to state. Colorado and Alabama charge among the lowest while Delaware remains the highest (4%).

Some states, including Alaska, Indiana, Texas, and Wyoming, have no real estate transfer taxes, per Kaskel.

Most real estate contracts stipulate that the seller pays the transfer tax. But in some areas, both the seller and the buyer are responsible for paying transfer taxes. These parties can ultimately negoti-

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ate who pays what in their transaction.

“It’s particularly important for buyers to understand real estate transfer taxes in case they have to pay them so that they have a better idea of how much money they’ll need out of pocket to buy the house,” suggests Roderigo Gonzales, a real estate investor in San Antonio.

Understanding transfer tax is smart, as it can be used as a negotiation tool by the buyer.

“After commissions, transfer taxes are often one of the highest fees paid in connec-

tion with the closing,” Kaskel points out. “The buyer can offer to absorb the seller’s portion of the transfer tax in exchange for a reduced purchase price, for example.”

Transfer taxes are usually paid at closing and are a onetime payment. These taxes are deducted from the closing proceeds and remitted by the closing agent to the taxing authority.

Depending on the state, “required taxes must be paid by someone for the deed to be issued and recorded unless the transaction falls under an exception to the rules requiring a transfer tax,” Iveljic adds.

“Typically, the attorneys for the buyer and seller confirm the amount of the transfer taxes, and those amounts are reflected on the closing statement. The title company then ensures the recorder of deeds is paid the state and county transfer taxes.”

Sometimes a municipality will obligate that the buyer or seller pays the transfer tax before the closing date. If/when this occurs, the seller or buyer must go visit their local village hall, pay the transfer tax, and ultimately receive a transfer stamp, which will need to be given to the title company so they can be affixed to the deed to be recorded.

“Once your deed is recorded, it will show the amount of the state and county taxes paid and it may also show the state and county tax stamp numbers,” continues Iveljic.

“If a municipality transfer tax is also paid, the deed will show the city stamp number and the amount of the city tax that was paid. And if an actual transfer stamp was required, the stamp will be affixed to the deed itself. These are all evidence showing what taxes were paid.

5

Are Home Improvements Worth the Cost When Selling a Home?

Question:

Our home has been on the market for a month and— so far—no offers. The broker has now suggested that we might do better if we paint the interior of the home.

This is a big cost for us. Should we have the interior repainted?

Answer:

According to the National Association of Realtors, “properties typically remained on the market for 18 days in November, equal to October and down from 21 days in November 2020. Eighty-three percent of homes sold in November 2021 were on the market for less than a month.”

Bidding wars are common in many markets, and so are selling values well above list prices. In San Francisco, one home sold for more than $1 million above the asking price, according to KRON. Such numbers offer a rough suggestion of where we are in terms of sale times, however, such measures are tricky.

All properties are different in real estate. Even two models of the same townhouse in the same

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development are each unique. This quality of uniqueness means that we can measure average sale times, but does not guarantee that all properties will sell with equal speed or at the same price.

In this situation, you have a property available for purchase and a listing broker who now suggests that the home may be more desirable with a change of paint.

And, once more, the uniqueness issue comes into play.

Not only are all homes unique, so too are all buyers and all transactions. We could say that the fresh paint suggestion will be a “success” if a buyer suddenly sweeps in and makes a full-price offer, or a “failure” if nothing happens. However, if there is a purchaser, we don’t know if the new paint job influenced buyers’ hearts and minds or other factors were at work.

There is also the problem that we all have different paint preferences. It may be that if you repaint, buyers won’t like the new color. You might be driving away prospects.

The real problem is that you want to sell the property and move on. If the walls are worn and weary, then new paint may have been needed before the home was placed on the market.

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Q&A

ASK OUR BROKER

By Peter G. Miller

An alternative solution might be to change your terms. Offer to pay x dollars for a “seller contribution.”

The buyer can use the funds to repaint in the color they want, buy drapes, add to their bank account, or whatever. However, because of typical loan program rules, what they cannot do is use seller money or credit for the down payment.

Most loan programs allow transactions that include a “seller contribution” equal to a given percent of the sale price. For instance, the FHA and USDA allow a 6% seller contribution, while the VA is a 4%.

Allowable seller contributions for conventional loans vary according to the amount down and whether the home is a residence or investment property. Speak with lenders for details and specifics.

But, before painting or offering a credit, take a careful look at your market. How long does it take for the typical home to sell? What percent of listings sell above the asking price? Maybe a little more time on the market will solve your problem with no additional cost.

Email your real estate questions to Mr. Miller at peter@ctwfeatures.com.

February 18, 2022

It Takes a Village: The Appeal of Master Planned Communities

By Marilyn Kennedy Melia It’s been a pronounced seller’s market throughout most of the country, but that’s more or less the norm for a certain segment– the “Master Planned Community” or [MPC].

Typically in suburban locations where large portions of land are available, MPCs offer a mix of housing options, as well as recreational facilities, and sometimes even stores and schools.

Like a little hometown within a town, that vibe helps insulate MPC housing prices from dropping during economic downturns, because consumers tend to think these communities hold value, says Todd LaRue, managing director of real estate consulting firm RCLCO. In fact, prices on MPC homes tend to carry a February 18, 2022

premium of anywhere from zero to 50 percent over similar homes outside the community, depending on the specific market circumstances, says LaRue. Some 919 MPCs are currently selling newly constructed homes, Mollie Carmichael of John Burns Real Estate Consulting adds.

In the past two years, with the rise in work from home, home sales in MPC reached new highs, according to John Burns’ research. LaRue agrees that MPC popularity benefitted from the pandemicfueled trends when suburban locations gained favor, and buyers wanted value during economic uncertainty Recent buyers of brand new homes in MPCs probably weren’t trying to edge out competing purchasers in bidding wars, as “most builders offer homes at a set price,” says Carmichael.

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Sometimes, builders offer incentives, like free upgrades on certain housing features, but given the hot housing market, incentives have been largely absent.

Instead of the buyer who wins a bidding war, it’s been the early, eager buyer who purchased new MPC construction, Carmichael explains. Starting with a Google search of “new homes” and specific geographic locations can yield some leads, as well as the sites BuzzBuzz.com and NewHomeSource.com.

Besides the relatively high prices in MPCs, purchasers in these communities must be prepared to pay a homeowner association fee and perhaps another fee for the MPC amenities.

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Carla Fischer

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Elva Hunter

(360) 202-3086

1 Mountain View Rd, Mount VeRnon $115,000 Located just outside the Mount Vernon City limits, this wooded 1 acre plus lot could be a building site for a stick built, modular, or manufactured home, with plenty of room. Tract has been surveyed (LeGro and Associates) and wetlands have been delineated (Oscar Graham and Pat Bunting).

Power and PUD water are available at the street.

Danya Wolf MLS# 1861233 (360) 708-8294

wHalen dRiVe, Point RoBeRtS

$250,000

Magnificent views of Boundary Bay and the mountains! Enjoy the lights of Vancouver BC, only 45 minutes away! Less than 20 miles to Vancouver international Airport. Point Roberts is a quaint community with forests, beaches (close to Maple Beach), and the ocean yet near to all that the big city has to offer. This lot is ready for your dream home; power at the street, water at the street (Point Roberts Water danya wolf (360) 708-8294 District). MLS# 1863417

Patricia Box Office Manager O: (360) 424-0300 C: (360) 941-9186

JoAnn Boudreau (360) 391-0746

1405 alPine View Place, eagleMont

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$599,000

Juanita Bunch (360) 941-5530

4619 & 4621 S BeaVeR Pond dRiVe, eagleMont

Custom build your commercial enterprise: 13,361 square foot commercial tract (two lots) zoned C-2. `Preliminary sketch for 5,280 square foot retail building plus 24 parking spots. Great location near recreation center; major grocery store; hotel; restaurants; offices; health club; house and farm supply stores; gas stations; banks; and I-5. New price reflects Skagit County tax assessment Danya Wolf value. MLS# 1848626 (360) 708-8294

17180 MeMoRial Hwy Mount VeRnon $415,000

20787 BulSon Rd, Stanwood

$600,000

Carla Fischer (360) 982-0010

John Hunter (360) 202-3086

Suzanne Jenkins (360) 941-2983

360.424.0300

$850,000

24094 n. weSt View Rd, Mount VeRnon

After 60+ yrs this Big Lake prime property on the sunny side of the lake can now be yours. Approx. 80 ft of no-bank water front just minutes away from a nine-hole golf course. Property features a pier connected to a floating dock perfect for mooring your boat & watercraft. The approx. 4,500 SF of property bisected by N. West View Rd has an access road and additional possibilities for your needs.

Besides the 2 bed 1 bath manuf. home the lot has a detached 750 SF garage/shop, out buildings and RV parking. And the large covered deck is perfect for watching eagles, seasonal waterfowl & spectacular sunsets!

Russ Lanker MLS# 1848508 (360) 708-1117

Prime commercial property with utilities in street, including P.U.D. water, Puget Sound Energy electricity; Cascade Natural Gas, fiber optics; cable; and sewer.

Subject To survey and short plat. Property is located between ChicagoTitle Company easterly parking lot and Max Dale Restaurant’s south Danya Wolf (360) 708-8294 easterly parking area. MLS# 1649968

Elva Hunter (360) 202-3086

$350,000

Beautiful wooded 4.98 acres situated on south side of Snohomish County/ Skagit County line. Power is in street.

Solar power is also possible. Adjacent property to the east of Subject Property is fenced, open field. Zoning allows for one building site. StanwoodCamano School District; and just ten minutes to I-5. Great country living yet convenient for commuting.

Danya Wolf MLS# 1841822 (360) 708-8294

6.98 acre tract zoned Rural Intermediate. Level acreage with great road access both from Memorial Highway and from Avon Allen Road. Stop light and curbs at the intersection.

Special Use Permit potential. The Animal Hospital and an espresso stand is across the road to the west.

980 feet along Memorial Highway (SR-536);620feetalongAvonAllenRoad. Danya Wolf MLS# 1572330 (360) 708-8294

2XXX uRBan aVenue, Mount VeRnon

$99,000

Each Lot is listed at only $99,000 Start your new home on one or both of these private lots in Eaglemont with all utilities in the street, surrounded by greenbelt and wooded area for maximum privacy, wonderful neighborhood with beautiful homes , walking trials. Eaglemont is an 18 hole Championship Public Golf Course! Spend your time relaxing and enjoying life in beautiful Eaglemont nestled in the foothills of the Cascade mountains with awesome views of Mount Baker and an abundance of wildlife! Once you’re here you’ll know you have found a hidden treasure!

MLS#1880617 4619 S Beaver Pond Dr Elva Hunter (360) 202-3086 MLS#1880578 4621 S Beaver Pond Dr

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Spacious Condo in up-scale Eaglemont Community designed for casual/elegant living. Great room with gas fireplace, vaulted ceiling, ideal space for entertaining guest or relaxing, opens to kitchen with island & eating bar. 3 bedroom/2 bath. Large owner suite with dual closet. Dining opens to private patio with views across the golf course. Low maintenance living with yard service. Great walking neighborhood, with open space and trails. Less than 10 minutes to Elva Hunter (360) 202-3086 downtown MountVernon. MLS#1884132

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$158,800

Phil LaMay (360) 840-3086

Russ Lanker (360) 708-1117

Brett Tacker (360) 840-7931

Danya Wolf Designated Broker/ Owner (360) 708-8294

3780 E. College Way, Mount Vernon

www.skagittraditionrealty.com 178153-1

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