First Impressions

QUESTION:
We are about to sell our home. Friends suggested that we invest time and money to improve its "curb appeal." The home has its original entrance and landscaping. Do you think updating the front yard will help sell the house? Is there a rule of thumb we should follow in determining a budget for exterior updates?

ANSWER:
Thanks for your question.

You get one chance to make a first impression. If a buyer's emotional reaction to your home is positive, that equals more money on your closing statement. Most buyers, when presented with a property that leaves them feeling that they have to start by remodeling or entering into "heavy project mode" will discount their offer or simply buy a different property that does not have that requirement.

First impressions are no longer made in front of the home. Virtual tours and photographs on the internet are a buyer's first introduction to a property over 80% of the time. This is why Eugene's Alternative uses only professional photographers and virtual tours for all of our listings. It is also why home sellers need to think about more than the perspective from the "curb" regarding how your home is viewed for the first time.

As the market becomes more competitive for sellers, investing in the condition of one's home is no longer an option to achieve a timely sale at or near the asking price. Paint and landscaping choices are always the best bang for the buck for a positive exterior presentation. We are quick to recommend new flooring, light fixtures, plumbing fixtures, and counter tops, for a positive interior presentation. Kitchens and bathrooms are the places to start on the inside, and the front entry is the place to begin presentation changes on the outside.

There is no rule of thumb regarding budget as different properties warrant different investment levels based on their needs, price point potential, and their direct competition.

Please contact us with any additional questions.

all the best,
John & Dave

1031 Tax Deferred Exchange

QUESTION:
Can inherited property, such as a home that was once a
primary residence, be used in a 1031 transaction?
And, if so, should the property have remained vacant,
or produced income (rental) following inheritance?

ANSWER:
A 1031 Tax deferred exchange is a transaction that allows a party the ability to reinvest their capital gain in a "Like Kind" property within certain time limits and rules without creating a taxable event. (read: really cool tax law)

A CPA and a licensed 1031 facilitators are good team members with your Realtor to see if this type of option is a good one for you.

Some basic rules of a 1031 include the need to identify up to 3 potential destination properties within 45 days of closing your initial sale transaction and an the absolute of having all purchase transactions closed within 180 days of closing the transaction.

It is also required that the acquisition price of the exchange property or properties exceed the sale price of the property that is being exchanged.

The 1031 exchange must be disclosed in writing within the connecting transactions.

In an exchange all money must flow through a licensed exchange facilitator.

Eugene's Alternative is versed in the ways of the 1031. We would be happy to consult with you further to see if this a good option to utilize in realizing your real estate goals.

Dave

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