Roger Lindsey Associate Broker

Important Tips

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TAX BREAKS

The best way to avoid costly mistakes is to consult your tax preparer; but, you may save yourself some money before doing this by consulting or asking your agent the questions you have concerning taxes before making a decision. You should ask your agent if he/she has ever had a similar situation. A knowledgeable agent, although not qualified to answer tax questions, usually will have up-to-date information for your benefit. This will aid you in consulting with your tax preparer for any questions or advice you may need.

As one of America’s most experienced real estate professionals, count on me to help you with your real estate needs. Call Roger Lindsey or Jay Ryan Lindsey today at 703.255.9700 or email me: roger@jrlgrouponline.com

CHOOSING A REALTOR

No two agents operate the same and in choosing an agent it is usually by word of mouth. Most experienced agents live off referrals. So if you are choosing an agent for the first time, and your family or friends are not able to refer an agent to you, it is necessary for you to interview agents to find the best agent for your situation. Most agents, unless they are new, will be able to provide you with references. If they are not able to do this, try another agent.

HOME REPAIRS

A good agent can provide you with dependable and capable repairmen for any repairs that are needed before you place your home on the market…or after a home inspection. You should always consult your agent before doing any repairs, whether painting or landscaping because the agent’s experience, both in showing homes and listing homes, is invaluable to a homeowner before he/she begins to spruce up for selling. The agent can tell you what is necessary, what will help sell your home faster and for the highest dollar amount.

INSPECTION REPAIRS

Just because a buyer presents a list of repairs to the seller for completion before the settlement, doesn't mean that you are required to correct, repair and replace all the items. Some of the items are in the contract in the boiler plate language and do not need to be presented again. Some repairs are not necessary to complete the deal because they should have been inserted in the contract beforehand. An experienced agent will play a key role in negotiating the repairs to everyone’s mutual satisfaction.

REMODELING

2005 Remodeling Cost vs. Value Report

Washington Metropolitan Area

Job	Job Cost ($)	Resale Value ($)	Cost Recouped (%)

Bathroom Remodel	10,049	13,667	136.0
Minor Kitchen Remodel	14,614	18,165	124.3
Siding Replacement	7,500	8,482	113.1
Attic Bedroom	38,498	50,149	130.3
Deck Addition	11,103	12,821	115.5
Basement Remodel	49,980	59,094	118.2
Window Replacement	9,549	10,567	110.7
Roofing Replacement	10,636	12,286	115.5
Family Room Addition	54,335	59,149	108.9
Home Office Remodel	12,417	11,595	93.4
(2005). Remodeling’s Payoff. REALTOR MAGAZINE, December 2005. Retrieved [12/15/05], from the World Wide Web: [http://www.realtor.org/rmomag.NSF/pages/feature1dec05?OpenDocument]
NOTE: Our experience in the Northern Virginia market shows that the re-couping amounts are much higher for improvements indicated above.

SELECTING A LENDER

There are hundreds of lending institutions in the metropolitan area and, therefore, many more loan officers! Not all loan officers are the same. A realtor can shop your requirements around to get the best rate and terms for you. If you get locked in with a lender, you are at a disadvantage to know whether you could have done better. We place loans constantly and therefore are up-to-date on the best rates. The home buyer usually does not know who to call or what the rates are. Not every lender has the same rates for everyone!

CAPITAL-GAINS TAX

The 1997 tax law allows married couples that live in a house 2 out of the prior 5 years to be excluded from capital-gains taxes for the first $500,000.00 of profit; the limit is $250,000.00 for single persons. Just think: if you’re married, the home’s value would have to increase 200% before you pay capital-gains taxes.

If you, by chance, don’t stay in the house the full two years, there’s a good chance you will qualify for a partial exemption from the capital gains taxes.

If you plan on renting the house, it won’t matter if you live in it for a full two years before renting it. If you don’t live in it for two years, you could wind up paying some taxes; however, under the latest tax-cut plan approved by Congress, the capital-gains taxation rate drops to no more than 15% from the previous 20% (that’s only 15% of your profit - you keep the rest).

The only way to lose is if you sell the home very quickly after buying it; however, short-term ownership of real estate is rarely a good idea, regardless of the potential capital-gains hit.

SEER (Seasonal Energy Efficiency Rating)

The United States Department of Energy (DOE) is enforcing stricter regulations regarding air conditioning and heat pump systems. The numbers manufacturers use to rate their equipment is called a SEER rating: Seasonal Energy Efficiency Rating.

Most recently, the minimum efficiency standard has been 10 SEER. On January 23, 2006, the regulations for the minimum efficiency standard were raised on all equipment manufactured to 13 SEER. Manufacturers can no longer produce anything less than 13 SEER, although systems ranked less than 13 SEER can remain in use.

Bridge Loans

A bridge loan is a short-term loan that allows a purchaser to buy their new home without having to sell or settle on their current home. A bridge loan alleviates the need for a contingency clause and thus give the buyer more leeway. A home buyer would be able to purchase non-contingent on the sale, which allows for greater negotiating power and possibly a lower final price.

Bridge loans are allowed for up to 85 percent of the property's value. No payments are required! The interest and principal are due when the home is sold.

Personal Property Taxes (Fairfax County, VA)

The personal property tax applies to automobiles, trucks, motor homes, motorcycles, trailers, campers, boats, outboard motors, planes and business personal property.

For vehicles, the tax is based on the trade-in value in the National Automobile Dealers Associations's "Used Car Guide" published in January of the current tax year. Adjustments are considered upon appeal. Download the appeal form from the county's Web site (www.fairfaxcounty.gov/dta) or call DTA at 703-222-8234, TTY 703-222-7594.

Taxes apply if a vehicle is normally garaged/parked in the county, even if registered in another state.

Tax on a motor vehicle is prorated on a monthly basis for the portion of the year it is located in the county. Prorate your bill online or call DTA.

New residents or those registering a vehicle for the first time must file a personal property declaration form within 60 days after purchase or entry into the county. Vehicles can be registered online at www.fairfaxcounty.gov/dta. All other business personal property must be reported on county tax forms by May 1. Failure receive forms does not exempt you from the obligation to file or pay taxes on time.

For property other than vehicles, such as business property, tax is based on a percentage of the original cost. "Original cost" is the full capitalized cost, to include shipping, freight, installation and sales tax. Visit the DTA Web pages for more details.