Minor Repairs and Improvements that Make all the Difference in Queens

by George Herrera, Realtor & Co-Owner of the Queens Home Team at Keller Williams Realty.

minor-home-repair-houseWhenever we meet with Homeowners who are thinking of selling, we usually give them some homework before putting their property on the market. Reason why is because there are always little things that can be done in order to show the home in it’s best light. We don’t typically recommend expensive renovations but we do make very affordable suggestions that make all the difference when we start showing. The difference in the offers you’ll get if you make these small repairs can be anywhere from $10,000, $20,000, even more depending on the neighborhood. Suffice to say that these small investments have a very good return on investment, especially if you are selling a long time Family home that has a lot of wear and tear. With that said, below is a list of the most common repairs, improvements, and homework that we give to our new Seller clients before hitting the market:

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1. Take up Carpets

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If you know Queens then you know that most people like wood floors. Being that most homes were built a long time ago, chances are that your house has wood floors as well. So, if you have carpeting in your home or apartment, take it up. You don’t even need to refinish the floors, just showcase the wood and it will show much much better.

2. Cracks on Walls

A lot of the homes we sell in Queens have settlement cracks throughout the home. This is nothing to be alarmed about, and it is actually very common, however, for a first time home buyer, this can look scary and lead them into thinking something is wrong (or will be) with the house. You can eliminate this concern by simply touching up these small areas.

3. Fresh Coat of Paint

lightpaint-colors-neutral-color-painting-ideas-2This is an old adage, and you probably have already heard the benefits of throwing a fresh coat of paint on your home. We as Queens Realtors, have seen this first hand, and we can say without a doubt that homes with a fresh coat of neautral color paint can go a really long way! It’s not that expensive so the return is definitely there, and best of all, it makes the home show much much better than it would with old worn out paint. Even if the property needs work, a fresh coat of paint will make it look less daunting for potential buyers.

Click Here for a List of Exclusive Homes for Sale in Queens NY

4. Lighting

Before you list or sell your home, you definitely want to make sure all of your light bulbs are working, and more importantly, make sure you have enough lighting all throughout the house. We sell a lot of properties that are very dark & dim when we see them for the first time. This may be okay when you’re living there, but truth is that buyers like bright homes. What we typically do is tell our clients to replace non-working light bulbs and buy cheap lamps for areas of the home that need more lighting. This make all the difference once we start showing, and it actually makes the property look even bigger!

5. Sand & Paint Old Damage Areas

When we tour homes (specifically older ones) we tend to see spots on walls and ceilings where it is obvious that some damage has occurred. These spots have usually been repaired, however, when a buyer sees it they will not take your word for it. Buyers will make a big deal about things like this, and their inspector will most likely not be any help. So, what we typically advise our clients is to bring in a handyman who will shave the area down and repaint it so that it is not noticeable. You can have one handyman go through and take care of all old damage areas and once complete, the walls and ceilings will look much more turnkey which leaves a buyer worry more about cosmetic repairs.

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6. De-Clutter, De-Clutter, De-Clutter

dont-just-declutter-deownIf you’re selling an older home (which is usually the case), chances are that you or your tenants have accumulated lots of stuff over the years. As a result, the house is probably cluttered and does not portray the actual amount of living space that is offered in your property. We almost always tell our clients to throw out unnecessary items, start boxing things up for the move, and hire a clean out company to get rid of larger items that don’t add to the house’s appeal. This one is so important, and we see again and again that it works to get better offers much quicker. The truth is that we live in New York City and as a result, space is a premium. A good job of de-cluttering can showcase another 100-200 sq ft, and in Queens, that is HUGE. Sometimes we give our clients homework, and we come back for the photo session, it looks like a completely different house! Always results in more buyers and higher offers…

For help, tips, or recommendations in getting your property prepared for the big sale, feel free to reach out to us anytime. We have a great list of trusted vendors from Handymen, Clean-out Companies, Painters, etc…

Blog & Site courtesy of George & Abigail Herrera with the Queens Home Team at Keller Williams Realty Landmark II.

George and Abigail Herrera_Queens Home Team at Keller Williams Realty 2_HEADSHOT_ROUNDBUY: www.exclusivequeenshomes.com | SELL: www.queenshomeselling.com

Queens Real Estate Market: 2015 Year in Review

George Herrera Keller Williams_HEADSHOT_ROUND   by George Herrera, Realtor & Co-Owner of the Queens Home Team at Keller Williams Realty

Queens Real Estate Market 2015 Year in Review

Welcome to our first edition of the “Queens Real Estate Market: Year in Review”. Rather than comparing one month to the previous month and the same month of the previous year, this report will compare one 12 month period (2015) to the previous 12 month period (2014). This will give us a clear picture of what is happening with the Queens real estate market because a 12 month comparison takes into account all four seasons of the real estate market. Therefore, we hope that this report will give you a bit of insight as to what happened in 2015, in comparison to 2014, and what we are predicting for 2016 based on market trends we are seeing.

Absorption Rate: 759 sales/per mo.

Current Available Inventory: 3,538

Month’s Supply: 4.7 Months

Last Month: 5.4 Months

Last year: 6.3 Months

*Month’s supply over 6 months is said to favor buyers, month’s supply below 6 months is said to favor sellers, and month’s supply of 5-6 months is said to be a balanced market.

Queens_Real_Estate_Market_2015_Year_in_Review_Courtesy_of_George_and_Abigail_Herrera_Keller_Williams_Realty_Landmark_2Click Here for a Free Appraisal of your Home

Interest Rates

Interest_RatesInterest rates held steady in December as the Federal Reserve’s change to the base rate was anticipated well in advance. Currently, Freddie Mac reports the following figures: 30-year fixed rate, 3.96%; 15-year fixed rate, 3.22%; 5/1-year adjustable rate, 3.06%.

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Queens Home Sales

Queens_Real_Estate_Market_Home_Coop_Condo_Sales_2015_2016There were 8,444 Queens homes sold in 2015, a decrease of .2% from November and an increase of .6% compared to 2014. So what does this tell us? Well, for most of 2015, we were seeing year over year decreases in home sales, however, in November and December, we saw the first increases in year over year sales. While the increase is minimal, the trend is quite significant. What this tells me is that sales may start slowly trending upward, however, a lot of this speculation will depend on what happens with the interest rates and inventory levels this year. From my perspective, demand is still high, but there still seems to be a shortage of supply for home buyers.

24 Month Home Sale Trends

Queens_Real_Estate_Market_Home_Sale_Trends_Last_24_MonthsClick Here for a List of Exclusive Homes for Sale in Queens NY

Queens Home Prices

Queens_Real_Estate_Market_Home_Coop_Condo_Prices_2015_2016In 2015, Queens home prices rose 7.7% compared to 2014. That’s a more modest increase than the double digit increases we were seeing in 2013 & 2014. However, this doesn’t tell the whole story because this is a general increase, including all property types. So, to be more specific: Residential home prices in 2015 were up 5.9% compared to 2014. In 2014, residential home prices were up 6.7% compared to 2013 so that can give you a little perspective and trend outlook. As for Condo prices, they were up 9.6% in 2015 (compared to 2014), and were up 1.5% in 2014 (compared to 2013). This was the largest price increase we saw and it is likely due in part to the increase in Condo development in 2015. Lastly, as for Coop prices, they were up 5.6% in 2015 (compared to 2014), and they were up 4.7% in 2014 (compared to 2013). In my opinion, last year reflected a steady increase in Residential and Coop prices that would likely be considered healthy among local economists. The more significant increase in Condo prices may speak to another trend that is harder to predict so we will need to keep an eye on that. Overall, I see a trend away from the extreme home price increases, and a move to more steady and modest home price appreciation in 2016.

*Economists tend to say that a healthy appreciation rate for home prices is one that follows along with general rate of inflation, about 4-5%.

24 Month Home Price Trends

Queens_Real_Estate_Market_Home_Price_Trends_Last_24_MonthsClick Here for Free Market Report of your Neighborhood

Queens Housing Inventory

There are currently about 3,538 homes for sale in Queens county. That’s down 32% compared to the inventory level at the beginning of 2015. For perspective on that percentage, in January 2015, there were 5,190 homes for sale in Queens, and at this moment, we have 3,538 available. This is a very significant decrease in inventory and most likely the reason why we continue to see home price increases and multiple offer situations on many listings. There is still a feeling of much needed inventory for the demand for homes which continues to outpace the supply of homes hitting the market. In my opinion, the most important factor that can impact inventory will be interest rates, and how much they increase in 2016. Month’s supply at this time is 4.7 months, which means that for most Queens neighborhoods, the market is still in favor of Sellers.

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Blog Courtesy of George & Abigail Herrera w/the Queens Home Team at Keller Williams Realty Landmark II.

George and Abigail Herrera_Queens Home Team at Keller Williams Realty 2_HEADSHOT_ROUNDBUY: www.exclusivequeenshomes.com | SELL: www.queenshomeselling.com

Original Article: http://blog.queenshomeselling.com/buying-a-home-coop-condo-in-queens-ny/queens-real-estate-market-2015-year-in-review/

Should you Sell your Queens Property with or without Tenants?

   Realtor & Co-Owner of the Queens Home team at Keller Williams Realty
So you own a rental or investment property in Queens and you’ve determined that now is the right time to cash out or move on to your next investment. Being the savvy investor that you are, you have leased your property to tenants who have been helping you pay down the mortgage. Now is when the question arises, should you list the property with your current tenants occupying the unit, or wait until they move out? Here in Queens we see this all the time, and we personally have sold a lot of tenant occupied properties, enough to see the good, bad, and ugly side of doing so. As a result, there are different schools of thoughts on the issue, and the right answer will depend on your property and your priorities. Below we’ll highlight some of the advantages and disadvantages to each approach so you can have a full picture of the issue and potential benefits/consequences.

Listing with Tenants

imagesThe biggest advantage to listing with tenants is continual receipt of your rental income. This ensures that there is minimal impact to your finances in the short term, and it alleviates the pressure of needing the property to sell right away. If your target buyer is an investor, then they may look at the occupancy favorably, especially if the rental income is high and you can show proof of consistent collection. In our experience, selling with tenants is a good idea if your tenants are very cooperative, and if you are receiving a market rate of rental income. If either of these is not the case, then you can run into several issues that can potentially get very ugly, and take a long long time to resolve. Unfortunately we have experienced this first hand and the person who ends up losing the most is usually the Seller.

The biggest disadvantage to listing with tenants, is usually a lower listing price. If the property can be delivered vacant and tenants are cooperative, you may be able to still market the property at a competitive list price, however, it is always harder to show the full potential of a house when it’s occupied by tenants, because you can’t do the renovations, touch-ups or staging needed to showcase the home. All of these factors limit the price you can ask on the property, or if you list competitively to other properties, this factor will most likely be reflected in the offers you receive. In addition, it’s always unclear if the tenants will be cooperative with open houses and viewing appointments until you actually start the selling process so when selling with tenants, there is a certain unpredictable variable that comes along with it. Lastly, many new homeowners don’t want to deal with tenant evictions, especially here in Queens, so if you decide to sell your property with the current tenants, you may limit the buyer pool to mostly investors.

Listing without Tenants

Vacant PropertyWhen listing your investment or rental property without tenants, it becomes like most of other properties on the market, and many times more attractive because in Queens, most homeowners opt to sell with tenants. More importantly, you can attract a bigger pool of buyers— investors and non-investors alike. Selling without tenants allows you to first update the property as needed which ultimately lets you garner the highest listing price possible. Staging a vacant property is pretty straightforward, but just being able to do so makes a huge difference that is usually reflected in the speed and strength of the offers received. It is also easy to show, because it will be vacant (not owner or tenant-occupied), so the property can receive as much traffic as possible. In our experience, whenever we’ve sold investment properties without any tenants, the properties have sold much quicker, and for way over asking price. Reason why, because most rental properties sold in Queens are not sold vacant, so for most buyers, there is usually a tenant factor involved. As a result, when you are selling a vacant investment property in Queens, you get a lot more activity, and much higher offers because there is a lot of value in that kind of piece of mind.The main challenge with listing without tenants is the planning that goes into the process. You first have to deliver the news to the tenant—hopefully the lease is at a month-to-month stage. Remember to check your rental agreement on the notice requirement. There will be a lag time between when you provide notice and when the property is ready to be listed—renovations, touch-ups, repairs and staging all take time. Because you won’t be receiving income from the property while the it’s vacant or listed, it’s important to plan for the financial shortfall during those weeks or months.

Conclusion

You have many factors to consider when deciding to sell your investment rental property. Be sure you’re working with a qualified real estate agent who can guide and assist you through this process. Rest assured that we here at the Queens Home Team have sold several investment properties, both with or without tenants, and we have developed a system to ensure success either way. In our professional opinion, selling without tenants is always the best bet because you can guarantee the highest sale price possible with little to no headaches. This is not always possible for homeowners, so if you do decide to sell with tenants, you just need to make sure you take all the necessary steps to ensure a smooth transaction.
Blog & site courtesy of George & Abigail Herrera with the Queens Home Team at Keller Williams Realty Landmark II

How Much does it Cost to Sell a House in Queens NY?

Seller Closing Costs in Queens NYC1-3 FAMILY HOMES

We meet with homeowners & potential sellers every week, and one of things we always do is go through their estimated net seller proceeds once we have appraised their property. This is extremely important because there are several closing costs associated with selling real estate here in Queens NY. With that said, below is a list of these expenses so that you can have an idea of what costs are involved when you sell a property in Queens. Many of these costs depend on the actual sale price so if you are curious what your closing costs might be, download our Estimated Net Seller Proceeds worksheet.

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A. New York City Transfer Tax:

1% of sale price (for sale prices up to $500K)

1.425% of sale price (for sale prices over $500K)

B. New York State Transfer Tax:

$4 for $1,000 (or .004%) of sale price

C. Brokerage Fees:

Typically 4-6% in Queens

2-3% to Listing Broker

2-3% to Buyer’s Broker

D. Seller Attorney:

$950 and up

E: Residential Deed Transfers:

$75

F. NYS Equalization Fee:

$75

G. Miscellaneous Title Fees:

$200 – $500

H. Pick-up / Payoff Fee to Title Closer:

$100 – $300

I: Mortgage Payoff

Ask your bank/lender for a payoff balance or letter, and don’t forget to include any additional home loans, lines of credit, home equity loans, etc.

Click Here to Download our Estimated Net Seller Proceeds Worksheet for Residential Homes

 


COOPS

Queens CoopsA. New York City Transfer Tax:

1% of sale price (for sale prices up to $500K)

1.425% of sale price (for sale prices over $500K)

B. New York State Transfer Tax:

$4 for $1,000 (or .004%) of sale price

C. Flip Tax

Vary by development (Can be a % of sale price, % of profit, flat fee, or assessed by amount of shares)

D. Stock Transfer Tax:

$.05/per share

E. Brokerage Fees:

Typically 4-6% in Queens

2-3% to Listing Broker

2-3% to Buyer’s Broker

F. Seller Attorney:

$950 and up

G. Co-op Attorney:

$450 and up

F: Non Deed Transfers:

$50

G. NYS Equalization Fee:

$75

H. Pick-up / Payoff Fee to Title Closer:

$100 – $300

I. UCC-3 Filing Fee:

$100

J: Move-out Deposit/Fee:

Vary by building. Move out deposits are typically refundable as long as you don’t damage anything during your move, however, if it is a fee, it may not be refundable.

K. Miscellaneous Coop Charges:

Vary by development, check with your Coop’s management company to verify.

L: Mortgage Payoff

Ask your bank/lender for a payoff balance or letter, and don’t forget to include any additional home loans, lines of credit, home equity loans, etc.

NOTE: For sponsor units in Coop developments, the Purchaser will typically pay costs normally paid by the Seller (most common are Transfer Taxes).

Click Here to Download our Estimated Net Seller Proceeds Worksheet for Coops

 


CONDOS

Queens CondosA. New York City Transfer Tax:

1% of sale price (for sale prices up to $500K)

1.425% of sale price (for sale prices over $500K)

B. New York State Transfer Tax:

$4 for $1,000 (or .004%) of sale price

C. Brokerage Fees:

Typically 4-6% in Queens

2-3% to Listing Broker

2-3% to Buyer’s Broker

D. Seller Attorney:

$950 and up

E. Processing Fee:

$450 and up

F: Residential Deed Transfers:

$75

G. NYS Equalization Fee:

$75

H. Pick-up / Payoff Fee to Title Closer:

$100 – $300

I. UCC-3 Filing Fee:

$100

J. Miscellaneous Condo Charges:

Vary by development

K: Mortgage Payoff

Ask your bank/lender for a payoff balance or letter, and don’t forget to include any additional home loans, lines of credit, home equity loans, etc.

NOTE: If your condo is in a new development or very high demand area, you can ask the buyer(s) to pay costs normally paid by the Seller (Most common is Transfer Taxes)

Click Here to download our Estimated Net Seller Proceeds worksheet for Condos

Blog and site courtesy of George & Abigail Herrera with the Queens Home Team at Keller Williams Realty Landmark II.

George and Abigail Herrera_Queens Home Team at Keller Williams Realty 2_HEADSHOT_ROUNDBUY: www.exclusivequeenshomes.com | SELL: www.queenshomeselling.com

*Please note that these are estimates and that Queens home sellers should consult their real estate attorney or financial advisor for specifics. We do not represent that these are the entirety of potential costs, but are only to be used as a guide.

Original Article: http://blog.queenshomeselling.com/blog/how-much-does-it-cost-to-sell-a-home-in-queens/

Guide to Real Estate Taxes in Queens NY

George Herrera Keller Williams_HEADSHOT_ROUND by George Herrera, Realtor & Co-Owner of the Queens Home Team at Keller Williams Realty.

Selling Queens real estate can be a very complicated process—just as complicated as purchasing real estate in Queens—particularly from the perspective of taxes and exemptions. So, the following is a list of various potential queens real estate taxes and exemptions that Queens home owners should be aware of when deciding to sell a home, coop, or condo in Queens. For your reference, we’ve included a brief summary of each, however, we always encourage speaking with a tax professional for information more accurate to your specific situation. If you have any questions, let us know and we can reach out to one of our CPA partners to see if they can help…

property-tax-house1

Taxes for Investment Properties

Many people find investing in real estate i.e. purchasing property for the sole purpose of investment, to be extremely advantageous. One of the most significant pluses is the fact that all mortgage interest paid on investment properties is fully deductible. There are some down sides, however, the largest one being that the loan origination fees and points he or she might have paid in order to lower the loan’s interest rate can’t be deducted.

The interest on loans that were used to purchase, construct, or improve upon the property are deductible up to $500,000.00 for single tax payers, and $1,000,000.00 for married couples. The interest accrued on home equity loans can be deducted up to $50,000.00 for individuals and $100,000.00 for married couples.

Click Here to Find out How Much your Queens Home is Worth

2-persons-transferring-somethingTransfer Taxes

When you sell a Home, Coop, or Condo in Queens, you will be subject to paying Transfer Taxes at the time of closing. There are two transfer taxes that you will be responsible for paying:

  1. New York State Transfer Tax – $4 for every $1,000 of the sale price or .4% of the sale price
  2. New York City Transfer Tax – 1% for sale prices up to $499,999 and 1.425% for sale prices $500K and up

When selling a property near the $500K mark, it’s important to keep in mind that you pay .425% more in taxes if the sale is $500K+.

Click Here for a List of Exclusive Homes for Sale in Queens NY

capital-gains-taxCapital Gains Taxes

Capital Gains are the profits that occur as a result of the difference between selling and purchasing price, on which sellers of a primary residence are taxed. The amount can vary based on a number of considerations, such as whether or not someone is a resident of the United States, and the current condition of the property. Deductions from Capital Gains include the fees for the loan application, closing costs, and the points that were paid for the loan to get a lower interest rate for the mortgage.

Generally, however, the taxes are 15% for residents of the United States who live in New York State. In addition, approximately 10% is added for city taxes. Some individuals will be able to qualify for not having to pay Capital Gains. If the house was the seller’s primary residence for 2 (at least) of the last 5 years, the Capital Gain can’t be over $250,000.00 for a single person or $500,000.00 for a married couple.

Capital Gains are reported on Schedule D of the IRS form. If the property has been owned for 1 year or less than 1 year, the owner reports it as a short-term Capital Gain. If he or she has owned it for longer than 1 year, it is a long-term Capital Gain. It is most advantageous for an owner to live in his or her residence for more than two years before selling it, because if they do, they will have more time to reinvest the Capital Gain from their home’s sale.

Click Here for a Free Market Report of your Neighborhood

LimitedLiabilityCompanyTaxes for Corporations

An LLC is a company formed between people who want to form a partnership in order to accomplish a specific project, or a few specific projects, without necessarily wanting to tie themselves to one another permanently or more lastingly. Purchasing a property is a perfect example of a situation where multiple partners may want to join together for one specific purpose. LLCs provide their partners with added protections and benefits, which makes it even more enticing to many people. One major advantage is that when the property is sold, the partners can, if so desired, transfer the property’s title to the LLC, which allows them to avoid taxes on the sale. After purchasing a new piece of property, the partners transfer the title to one of the partners so that it is in his or her name.

Click Here for a Free Appraisal of your Queens NY Home

Tax-exemptionsTax Exemptions

There are a number of situations in which tax exemptions are possible. If someone owns a home as his or her primary residence for at least two years but then has to sell due to an unavoidable circumstance that makes relocation necessary, such as a new job or health reasons (including when a person must sell his or her home in order to raise money for the medical expenses), a tax exemption is possible. In the case of health reasons, it’s advisable but not necessary for someone to keep a physician’s letter on hand, that describes personal information regarding the health problem, in case one is audited at some point.

One can qualify for a tax exemption due to “unforeseen circumstances.” The IRS defines “unforeseen circumstances” as “the occurrence of an event that you could not reasonably have anticipated before buying and occupying your main home.” Some examples include the ones listed above, as well as war, terrorism, natural disasters, separation or divorce, death, multiple births from a single pregnancy, and a change in employment status, leaving the owner unable to pay for his or her living expenses. IRS Publication 523 describes “unforeseen circumstances” in great detail.

As far as Capital Gain goes, as of 2003, there is a special provision provided to people enlisted in the army, navy, and National Guard that states that people in the military do not need to have lived in their home for two years. Additionally, the 5 years one has to have owned the property for has been extended to 10, which allows people to fulfill their military obligations.

Another way to avoid Capital Gains is for one to buy a “like-kind” property, i.e. a home of equal or greater value than the property that was sold, usually within 180 days of selling the previous home. This is called a 1031 Exchange. If one pursues this option, forms must be filed with the IRS to make them aware of the purchase and the property must be located within the continental US.

*Consulting an accountant on which, if any, of these exemptions you might apply for, is key.

Blog and site courtesy of George & Abigail Herrera, Realtors and Co-Owners of the Queens Home Team at Keller Williams Realty Landmark II.

George and Abigail Herrera_Queens Home Team at Keller Williams Realty 2_HEADSHOT_ROUNDBUY: www.exclusivequeenshomes.com | SELL: www.queenshomeselling.com

Original Article: http://blog.queenshomeselling.com/blog/queens-real-estate-taxes-guide/

Queens Real Estate Market Update: DECEMBER 2015

Happy HolidaysGeorge Herrera Keller Williams_HEADSHOT_ROUND

by George Herrera, Realtor & Co-Owner of the Queens Home Team at Keller Williams Realty.

December 2015 Queens Real Estate Market Update

Home sales slowed again in November as inventory remained tight and prices continued their steady increase. As the end of the year approaches, consensus among economists was that the Federal Reserve would likely increase interest rates in December, and that indeed has happened which solidifies a trend of rising mortgage rates much more likely in the coming year. Rising interest rates affect buyer purchasing power and that in turn will likely affect home prices. StreetEasy.com recently released their 2016 market predictions which includes a prediction that Queens home price growth will slow down next year. We agree with this prediction and believe that the affect will be result of the rising interest rates which now have become much more of a reality & expectation with the fed rate increase this month.

Absorption Rate: 741.83 sales/per mo. (4,451 Sales in last 6 months/6 months)

Current Available Inventory: 3,971

Month’s Supply: 5.4 Months (3,971/741.83)

Last Month: 5.9 Months

Last year: 6.3 Months

*Month’s supply over 6 months is said to favor buyers, month’s supply below 6 months is said to favor sellers, and month’s supply of 5-6 months is said to be a balanced market.

Queens_Real_Estate_Market_Update_DECEMBER_2015_Courtesy_of_George_and_Abigail_Herrera_Keller_WilliamsClick Here for a Free Appraisal of your Home

Interest Rates

Interest_Rates
Interest rates began trending up in November amid speculation of a rate increase by the Federal Reserve in December. Currently, Freddie Mac reports the following figures: 30-year fixed rate, 3.97%; 15-year fixed rate, 3.18%; 5/1-year adjustable rate, 2.98%.

Click Here for a Free Market Report of your Neighborhood

Queens Home Sales

Queens_Real_Estate_Market_Home_Coop_Condo_Sales_DEC_2015Homes sold at a seasonally adjusted annual rate of 656 homes in November, a decrease of 15.2% from October and an decrease of 2.7% from the same month last year. Tight inventory is likely weighing down sales as they have been all year and could be a persistent headwind through the colder months of the year. However, the recent fed rate increase will likely create urgency among buyers that are either on the fence, or barely qualified, so this should lead to an increase in sales in the next quarter. Specifically, residential 1-4 family home sales were down 4.8%, Condo sales were down 31.4%, and Coop sales were up 9.7% compared to November of last year. Over the last 12 months, sales are down .3%.

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Queens Home Prices

Queens_Real_Estate_Market_Home_Coop_Condo_Prices_DEC_2015Home prices continued their steady increase in November as the median home price rose to $430,000 according to the Long Island Board of Realtors. This was an increase of 1.3% from October and a year-over-year increase of 1.2%. As we move into the winter months, we should begin to see some seasonal alleviation on prices, especially considering the fed rate increase which can ultimately have an impact on buying power for prospective buyers. Year-over-year gains will likely continue throughout next year, however, as predicted by StreetEasy, the gains will most likely slow to a more standard appreciation rate. Specifically, residential 1-4 family home prices rose 4.3%, Condo prices rose 7.3%, and Coop prices rose 5.9% compared to November of last year.

*Economists tend to say that a healthy appreciation rate for home prices is one that follows along with general rate of inflation, about 4-5%.

Click Here for a List of Exclusive Homes for Sale in Queens

Queens Housing Inventory

The actual number of homes for sale at the moment (3,971) is down 7.4% compared to last month (4,291), and down 11.1% compared to the same month of the previous year (4,469). This led to the months supply of inventory, which measures the relationship between supply and demand, to dip slightly to 5.4 months due to the drop in sales. For most of the year we have seen a large year over year decrease in number of homes for sale, however, in the last three months, we have seen a smaller decrease which seems to signify that the market is shifting slightly. Let’s see what happens in the first quarter of 2016.

Click Here for a List of Exclusive Keller Williams Listings for Sale in Queens

Blog Courtesy of George & Abigail Herrera w/the Queens Home Team at Keller Williams Realty Landmark II.

George and Abigail Herrera_Queens Home Team at Keller Williams Realty 2_HEADSHOT_ROUNDBUY: www.exclusivequeenshomes.com | SELL: www.queenshomeselling.com

Original Article: http://blog.queenshomeselling.com/blog/queens-real-estate-market-update-december-2015/

1031 Exchange NYC: What is it and How does it Work?

1031basics-300x171by George Herrera, Realtor & Co-Owner of the Queens Home Team at Keller Williams Realty.

If you’re a Queens real estate investor, or if you’ve bought & sold properties here in the past, then you’re probably already familiar with the concept of a 1031 exchange. If you’re just starting out on Queens real estate investments or thinking of investing in the future, then you’re probably eager to learn about the 1031 tax-deferral option. So, we’ve prepared a primer on this important tool for your investment-planning purposes. This is a basic overview of what it is and how it works. For more details you can reach out to us, or contact your tax accountant.

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Definition:

A 1031 exchange, also known as a like-kind exchange or a Starker, allows you to roll over your capital from the property you have sold to the property you have recently purchased. The idea is that you would be able to avoid taxes until you sold your properties for cash at some later date, and ideally save some money by paying only one long-term capital gains tax. Even if your goals are not long-term but you are looking to save some money now, there is no limit to how often you can use a 1031 exchange, and paying little to no taxes with this type of transaction may seem mighty attractive.

Guidelines:

There are two basic guidelines that apply to most cases.

  1. The value of your replacement property must be equal to or greater than the value of the property you have sold.
  2. All of the net proceeds from your sold property must be used to buy your new “like-kind” property.

Timelines:

Along with these requirements, there are two timelines to keep in mind while processing a 1031 exchange.

  1. You have exactly 45 days from the day you sell your property to find potential replacement properties.
  2. The exchange of properties must be completed within 180 days of selling your former property.

There are no extensions available, and if the required transactions are not completed within the number of days given, you will have to pay taxes on your sold property.

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Fotolia_50922167_XS-232x300Summary:

We do a lot of transactions with Sellers who take advantage of the 1031 Exchange whether they are buying another investment property, or retiring to another state and exploring ways to minimize their tax burden. Some of our clients take the proceeds and buy another investment property to defer the taxes and continue holding, that is the simple and more straight forward strategy. However, we’ve also had clients that get more creative, for example, we’ve had Sellers take the proceeds of their investment property in Queens to buy an investment property in the same state where they are retiring. Then they eventually end of moving into the investment property, live their for at least two years, and ultimately sell it as owner occupied which allows them to take advantage of the $250K per person tax exemption. This strategy has more moving parts, but at the end of the day, they were able to defer their tax burden completely.

This is a basic overview of 1031 Exchange. There are various processes, including delayed exchanges, depreciation recapture, and other deeper aspects of a 1031 exchange that could come into play, depending on each investor’s unique situation. Given the strict requirements and tight deadlines, most investors work with a tax advisor and an experienced Queens real estate agent when they are pursuing a 1031 exchange. We have helped a lot of sellers and buyers with 1031 exchanges in Queens so if you have any questions, you can always reach out to us.

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Blog courtesy of George & Abigail Herrera w/the Queens Home Team at Keller Williams Realty Landmark II.

George and Abigail Herrera_Queens Home Team at Keller Williams Realty 2_HEADSHOT_ROUNDBUY: www.exclusivequeenshomes.com | SELL: www.queenshomeselling.com

Original Article: http://blog.queenshomeselling.com/selling-a-home-coop-condo-in-queens-ny/basics-of-a-1031-exchange-what-is-it-and-how-does-it-work/