Real Estate News

7 Cities With Robust Job, Housing Markets

NAR Daily Real Estate News - April 16, 2018 - 12:00am

Realtor.com® identifies the metros with the best prospects for work, as well as affordable real estate options.

Categories: Real Estate News

New Wallpaper Will Tell You a Home is on Fire

NAR Daily Real Estate News - April 13, 2018 - 12:00am

Wallpaper tends to be highly flammable and can be a major contributor to house fires. But scientists now believe they can re-engineer it as a...

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FEMA Changes Encourage Private Flood Insurance

NAR Daily Real Estate News - April 13, 2018 - 12:00am

Learn about new changes that could make flood insurance cheaper and easier to obtain for your clients.

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More Millennials Turn to Bank of Mom, Dad

NAR Daily Real Estate News - April 13, 2018 - 12:00am

Rising home and rental costs are pressing young people to ask more of their parents.

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REALTORS® Mark Fair Housing Anniversary

NAR Daily Real Estate News - April 13, 2018 - 12:00am

However, the association and its members note the effort to secure fair housing for all is far from complete. 

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Another Week of Mostly Flat Mortgage Rates

NAR Daily Real Estate News - April 13, 2018 - 12:00am

Rates haven’t budged much in recent weeks, offering some relief from the weekly increases that had almost become routine at the start of...

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RPR Names New Leader

NAR Daily Real Estate News - April 13, 2018 - 12:00am

The Realtors Property Resource® announced that its CEO, Dale Ross, will be retiring May 1 and that Jeff Young will assume responsibility for...

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Prepaid Property Tax Debate Undecided

RisMedia Consumer Advice - April 12, 2018 - 4:02pm

Just a few days shy from the 2018 tax deadline on April 17, and controversy surrounding the new tax law—the Tax Cuts and Jobs Act—is leaving multitudes of homeowners uncertain about whether they should claim their prepaid property tax deductions. The new law imposes a $10,000 cap on state and local tax write-offs (previously unlimited) for both single filers and married couples, leaving tax consultants and taxpayers searching for ways to make the most of the decreased cap before it takes effect in next year’s filing.

Interpretation of the new law has been varied. The ruling clearly states that state and local income taxes are not eligible for prepayment. With no mention of property taxes, many homeowners rushed to prepay in December; however, on December 27, the IRS released a statement, clarifying that prepaid taxes are only deductible under certain circumstances—homeowners cannot deduct the prepayment for property taxes that have not been assessed prior to 2018.

The IRS provided the following examples:

“Assume County A assesses property tax on July 1, 2017 for the period July 1, 2017-June 30, 2018. On July 31, 2017, County A sends notices to residents notifying them of the assessment and billing the property tax in two installments with the first installment due Sept. 30, 2017 and the second installment due Jan. 31, 2018. Assuming taxpayer has paid the first installment in 2017, the taxpayer may choose to pay the second installment on Dec. 31, 2017 and may claim a deduction for this prepayment on the taxpayer’s 2017 return.”

“County B also assesses and bills its residents for property taxes on July 1, 2017, for the period July 1, 2017-June 30, 2018. County B intends to make the usual assessment in July 2018 for the period July 1, 2018-June 30, 2019; however, because county residents wish to prepay their 2018-2019 property taxes in 2017, County B has revised its computer systems to accept prepayment of property taxes for the 2018-2019 property tax year. Taxpayers who prepay their 2018-2019 property taxes in 2017 will not be allowed to deduct the prepayment on their federal tax returns because the county will not assess the property tax for the 2018-2019 tax year until July 1, 2018.”

Not all tax experts agree, and several members of the Ways & Means Committee are petitioning the IRS for higher deductions of reasonable estimates, according to the Wall Street Journal. The issue has not been resolved across the board, but with a low audit risk due to limitations on IRS resources, some taxpayers are urging their tax preparers to claim the deduction without disclosing the write-off on the required IRS form (8275).

“There is no reason to believe that Congress made a mistake in omitting property tax prepayments, and there was certainly no basis for the IRS to substitute its own policy judgements that departs from the act of Congress, especially when the consequence of the IRS’s determination may have cost taxpayers millions of dollars,” states the Ways & Means Committee letter.

Stay tuned to RISMedia for more developments.

Liz Dominguez is RISMedia’s associate content editor. Email her your real estate news ideas at ldominguez@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

The post Prepaid Property Tax Debate Undecided appeared first on RISMedia.

Categories: Real Estate News

Show Off a Home’s Outdoor Space

NAR Daily Real Estate News - April 12, 2018 - 12:00am

Homeowners care about the entertainment value a backyard offers, and they’re devoting money to sprucing these spaces up.

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Brokerage Sues Competitor Over Sales Figures

NAR Daily Real Estate News - April 12, 2018 - 12:00am

@Properties, based in Chicago, is accusing Baird & Warner Real Estate of exaggerating its 2017 sales volume in advertising materials to...

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How to Triumph in a Bidding War

NAR Daily Real Estate News - April 12, 2018 - 12:00am

With a record low number of listings this spring, more buyers may be finding themselves in a bidding war. Here’s how to win.

Categories: Real Estate News

Agent Goes Viral With Bobcat vs. Rattlesnake Video

NAR Daily Real Estate News - April 12, 2018 - 12:00am

It was just your standard day out with clients showing properties when real estate pro Laura Lucky and her clients stumbled on a Wild West sight....

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Owners, Appraisers Mostly Agree on Home Values

NAR Daily Real Estate News - April 12, 2018 - 12:00am

Homeowners in many markets are getting a strongly realistic view of home prices in their markets.

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Chinese Investors Unfazed—For Now

NAR Daily Real Estate News - April 11, 2018 - 12:00am

Threats over a trade war between the United States and China are growing, and that has some real estate professionals worried. Could the situation...

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Debt-to-Income Ratios Rising Among Buyers

NAR Daily Real Estate News - April 11, 2018 - 12:00am

A growing number of conventional mortgage loans are going to borrowers who are spending more than 45 percent of their monthly incomes paying...

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U.S. News Reveals Best Places to Live List

NAR Daily Real Estate News - April 11, 2018 - 12:00am

The top city is enjoying its second year ranked number one in terms of affordability, employment prospects, and quality of life.

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House Rentals Outpace Apartment Boom

NAR Daily Real Estate News - April 11, 2018 - 12:00am

Single-family homes have emerged as the fastest growing type of rental over the past decade. 

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Loan Demand Falls Thanks to Higher Rates

NAR Daily Real Estate News - April 11, 2018 - 12:00am

Mortgage volume is now 5.5 percent lower than a year ago, and the share of refinancing applications plunged to the lowest level in a decade.

Categories: Real Estate News

With Fast-Growing Prices, Gains in Equity Are Exceeding Minimum Wage

RisMedia Consumer Advice - April 10, 2018 - 4:16pm

For many Americans, homeownership is a vehicle for wealth—an appreciating asset that, more often than not, earns a profit at resale.

In the market today, homeowners are all but promised to reap the rewards. According to an analysis recently released by Zillow, appreciation is so healthy that homes in many markets are producing more than a job for minimum wage would. Although the average homeowner is earning $7.09 in equity for every hour spent at work—16 cents less than the federal minimum wage—homeowners in half of the 50 largest markets are earning more in equity than their local minimum wage. The analysis assumed eight-hour days, or 2,087 hours of work per year.

“As home values continue to rise at a rapid clip, many homeowners have earned more in home equity over the past year than they would have by working a minimum wage job—and in some areas, more than they’d have earned even if they had a job paying a six-figure annual salary,” says Aaron Terrazas, senior economist at Zillow.

The areas earning the most are on the West Coast: San Francisco, San Jose and Seattle. In San Francisco, appreciation has been $60.13 per hour worked; in San Jose, $99.81; and in Seattle, $54.24.

In the 25 largest markets:

“Equity ‘earnings’ are a lot different than the salary typically taken home on the first and fifteenth of each month; it is not money that accumulates directly into a checking account or that can be spent on daily needs,” Terrazas says. “Equity is only available once a homeowner chooses to sell a home, and even then is often subject to various taxes and other expenses. Still, particularly for homeowners that have already or are very close to paying off a mortgage, this supplemental ‘income’—especially if allowed to accumulate over several years—can essentially serve as a kind of second job that pays directly to a homeowner’s bottom line, without nearly as much actual work involved in collecting it.”

For more information, please visit www.zillow.com.

Suzanne De Vita is RISMedia’s online news editor. Email her your real estate news ideas at sdevita@rismedia.com. For the latest real estate news and trends, bookmark RISMedia.com.

The post With Fast-Growing Prices, Gains in Equity Are Exceeding Minimum Wage appeared first on RISMedia.

Categories: Real Estate News

Square Footage Dispute Ends in Agent’s Favor

NAR Daily Real Estate News - April 9, 2018 - 12:00am

A jury in California ruled that a Coldwell Banker real estate agent did not breach his fiduciary duty in a case involving discrepancies in a home...

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