The signing of the Tax Cuts and Jobs Act towards the end of December 2017 is not going to affect homeowners and the way they will taxed for the 2017 financial year. The changes will come into effect from the 1st of January 2018 and this will impact the decisions that will be made by existing and especially future homeowners.

The changes in the law* which will impact homeowners are:

Limited Mortgage Interest Deductions

The maximum amount of mortgage debt interest that can be deducted is $750,000 from the previous amount of $1 million. This will affect loans that are taken from mid December 2017 onwards. If you are paying off a mortgage for a second home the interest will also be deductible up to the same amount of $750,000. Home equity loan interest will only be deductible if the money has been used for home improvements.

Tax deductions

Up until the passing of the new law all property taxes whether state or localized were claimed as deductions. The new law allows for a total of up to a $10,000 deduction only. The amount is the same for both individuals and married couples.

Standard Deductions

These are doubled under the new law at $12,000 for individuals and $24,000 for joint filers. Many taxpayers will most likely prefer standard deduction to itemizing their filing so as not to reduce the tax related benefits of owning a home.

Capital Gains Tax

The exclusion of capital gains tax for the sale of a primary home is to be maintained. This means that a seller may exclude $250,000 of gain from taxation as an individual and $500,000 if married. The required years of ownership are for two of five instead of the five of eight that was initially sought.

As part of my REALTOR® services, I do my best to stay abreast of important legislative, market, and tax issues influencing housing.

*I do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.

Get in touch if you are considering a move. If have any real estate related questions; I am always happy to talk!

I gathered a list of the expected changes in the housing market for 2018. As your trusted REALTOR® serving Chicago and the Northwest Suburbs, I look forward to visiting about your specific needs.

• There is a low inventory of homes for sale and more than 50% of these are not affordable to first time buyers.
• This will lead to new construction but due to ever rising prices of land and building costs most expansion will be in the suburbs and outlying areas of cities.
• There are many people who are about to become first time homebuyers, including millennials, immigrants and foreign investors.
• Many previous homeowners had declared bankruptcies in the previous crisis and are now eligible to buy after seven years.
• Homeowners looking to downgrade or upgrade as family needs change push up demand on some properties.
• As the cost of living rises in the bigger cities many look for job opportunities and homes in cheaper cities.
• The rising cost of building pushes up the price of existing homes and most homeowners will prefer to stay put and to remodel existing homes.
• Developers will concentrate their efforts on building homes for lower to middle income buyers and will have to provide to their future needs such as wider passages.
• Most millennials prefer to live in urban areas but will most likely buy in the suburbs where homes are more affordable.
• The new tax bill might discourage some buyers. Some homeowners might look to sell and buy in states with lower taxes.

If any of these expectations look like they may affect your housing situation, and you would like to have a meaningful conversation about your options… let’s talk.

The idea behind staging a home is to highlight its best features and amenities, and to minimize the areas not so likely to be selling points. Staging doesn’t mean a bit of decorating, repairing and cleaning, it is the art of changing your home, so it appears larger, brighter, and more inviting to prospective buyers.

The best way to determine if your home needs staging is to hire a professional in this field.

What to expect?

• Prices will vary depending on the size of your home, where you live, and amount of work needed.
• A walk through of your home and garden, including a look at its curb appeal, will be followed by a staging report which will give advice and recommendations for paintwork, de-cluttering, rearranging of furniture etc.
• Home stagers can usually refer people for any maintenance tasks needed.
• Try and do most of the work yourself, especially the de-cluttering, painting and smaller maintenance tasks to keep costs low.
• Make sure that you are aware of the changes to be implemented, and if this will be done with your own furniture and décor (or the stagers).
• Get a breakdown of the cost and duration of the staging,
• Ensure that the changes will be easy for you to maintain while showing your home.

I offer quality staging advice to all my sellers. I have excellent referrals for staging pros that know how to make your home appealing to buyers. Let’s have a one-one-one talk if you are considering a home sale in our Chicagoland area.

Minimize stress on moving day with a little preparation. By planning your move well in advance, you avoid the likelihood of any last-minute chaos. As soon as you know your moving date start researching moving companies, get quotes and let them know when you need them. Start a file for all your paperwork: include a checklist of to-dos you can mark off completed tasks.

As moving day approaches you will need to start preparing so here are some steps to follow.

1. Work through each room and set aside valuables and fragile items that will need special handling or extra insurance for the move and get rid of any unwanted things.
2. If you are moving with school going children arrange that their school transfers all records to their new school.
3. Stock up on boxes, wrapping papers, Bubble Wrap, marking pens and tape. Begin packing items that aren’t been used.
4. Make sure that each box is labeled and numbered.
5. Leave a forwarding address with your local post office and a neighbor.
6. Notify your bank, insurance, utility companies and any newspaper and magazines that you subscribe to of your new address.
7. If you have a safe-deposit box then remember to collect the items on moving day. These items should not go with the movers.
8. Collect any medical records from doctors and dentists and ask for referrals.
9. From a week before moving day start packing suitcases for the family in which there will be clothes and toiletries for a few days.
10. Defrost and clean the refrigerator at least 24 hours before it is loaded.
11. The moving company must have clear instructions to your new home and a contact number where you can be reached.
12. Ensure that the movers know how they will be paid; organize final details on payment.
13. Remember to have refreshments for the movers on the day, and a tip is always welcome.
14. When the truck arrives on moving day check that it is the one that you hired.
15. All passageways, garden paths, etc. must be free of clutter and carpets so that they can move around without tripping.
16. When everything is packed into the truck sign the paperwork and keep a copy. If there is anything that you don’t understand ask for explanations before signing.
17. Lastly, before the truck drives away, take a last look around the house, garden and garage in case anything has been forgotten.

I am a listing specialist in the Chicagoland area. I serve my sellers with the utmost attention. Let’s talk if you are contemplating a home sale soon.

There are many services I provide when supporting you throughout the sale of your home: consulting, education, creating a quality CMA (Comparative Market Analysis) for establishing a list price, and more. For this post, I wanted to share my marketing approach and all the steps I take to make sure your home is presented in the best light.

My marketing campaigns are tailored to your specific property and may include:

• A staging consultation to prepare your home/property for showing.
• A detailed description of your property.
• A well-designed and strategically placed yard sign.
• The use of a professional showing service to manage the showing of your home efficiently.
• Photographs of your home are that are high quality. Most home buyers start shopping online before contacting an agent. Our professional photographer will take shots of the exterior, interior, entrance and other home highlights.
• A well filmed video is a wonderful tool for a virtual tour of your home.
• Public open houses.
• A tour for other local agents so they see and get to know your home.
• Online enhancements on websites such as Zillow, Realtor.com and more.
• A Craigslist advertisement.
• Your home sale details in our industry-specific MLS (multiple listing service).
• Custom flyers and/or brochures for distribution.
• Email marketing to prospective buyers and to other agents who work in your area.
• Conducting an open house viewing and make sure that it is well advertised.
• A e-blast flyer to all association members

I make an effort to network with other agents, and follow up with all prospective buyers or their buyer’s agent.

Once offers start coming in, I guide you through the process and paperwork right up to the closing of the sale.

As you can see, there’s a lot to marketing your home so it yields optimum results. My marketing strategy is continuously analyzed to ensure that it remains effective the entire time your home is actively for sale.  Let’s talk soon if you are contemplating a sale in the Chicagoland area.