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Hanne Sagalowsky
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Are you moving from Preston Hollow or the Park Cities, thinking of downsizing, and have a concern about a capital gains tax? 

Here are simple guidelines to remember:
If you are married, and file a joint return, the tax law excludes $500,000 on any gain you make on the sale of your principal residence.
You MUST have lived in the house for 2 out of the last 5 years before the sale.
If you are single, you can exclude up to $250,000 of your profit.  If you are a surviving spouse, you can claim the $500,000 exclusion, IF the house is sold within 2 year from the date of death.

It is always important to keep records of all capital improvements made to the house over the years. Any capital improvements can add to the base value of the property which could reduce the profit realized on a sale, and help keep the profit within the tax cap. Additionally, there are other possibilities for reducing a taxable gain on a sale, in the event of the death of a spouse.

Always check with your Realtor & personal tax professional, but knowing these simple guidelines will help you plan a move in your future.

Hanne Sagalowsky / hanne@daveperrymiller.com / 214-402-8200 / International Property Specialist

Hanne Sagalowsky

Chinese investors are showing a surging interest in North Dallas real estate. “Chinese buyers have become a factor in our market” says Hanne Sagalowsky, a local real estate agent who specializes in serving International buyers.  “In Preston Hollow and the Park Cities, the uptick stands out in our upscale market” she says.  “One important factor is our outstanding educational opportunities both on the Elementary, Middle & High school levels as well as college and post graduate levels”. 

The Lone Star State boasts just four percent of Chinese investment in the U.S. – compared to 35 percent in California – BUT it is the country’s fifth hottest market and quickly growing.  Statewide, Chinese purchases in Texas have more than doubled since 2013, as the Chinese government loosens restrictions on investment abroad and Chinese money pours into foreign markets.  This will probably not change even with the current turmoil in the Chinese stock market.  If anything, we may experience what Europe saw at the beginning of the financial crisis in Southern Europe when enormous amounts of money flowed into the London Real Estate market.

Hanne has the exclusive CIPS designation (Certified International Property Specialist) from the National Associate of Realtors.  Hanne is the ONLY Texan on the 2016 Leadership Team of the National Association of Realtors which represents the 1,100,000 REALTOR® members in the United States.  Having recently returned from Global Real Estate Conferences in Berlin and Stockholm, she is overseeing the Global committees and Initiatives of the National Association as the Liaison to Global Activities.  Hanne has an International background and is multi-lingual.  She is also  past president of the MetroTex Association of REALTORS® (Dallas Association). 

Nationwide, the story is similar.  The New York Times reported “Chinese cash floods U.S. real estate market,” noting that Chinese now represent the largest group of foreign buyers in U.S. real estate.

Hanne Sagalowsky / hanne@ebby.com / 214-402-8200 / International Property Specialist

Hanne Sagalowsky
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STRs (Short Term Rentals) through websites like Airbnb are popping up in Preston Hollow and Park Cities.  Are you aware of this happening in your neighborhood?  There are many potential problems with this occurrence. The owners of these homes, that are renting a room or an entire residence, are not necessarily following local zoning laws and are not reporting the income received properly.  In essence, these owners are operating a "hotel" by not renting for the designated 30 days or more.  A property currently listed on Airbnb in Preston Hollow, was recently on the market for sale, and is now furnished and advertised as a "whole house" rental.  The owner does not live at the address of this property, so it is basically a hotel, possibly in your neighborhood.  Others are advertised as close to Northpark. Some are listed in Highland Park.  If you suspect this is happening in your neighborhood, go to one of the websites to see if the property is listed, and be aware.  Your investment and character of your neighborhood could be compromised by this activity.

Hanne Sagalowsky
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Giving is the reason for the holiday season, and the associates at Ebby's Little White House did just that.  An effort coordinated by Betsy Weber Hurst, the associates gave both time and money to buy and fill over 100 stockings, covering age groups from infants to teens, for the children who will spend Christmas morning at Children's Medical Center in Dallas.  "Many of the agents bought items and filled stockings themselves, while others gave funds generously to buy and fill the stockings" said Ms. Hurst. "It was such a joy to shop and find great gift items for all ages. I think the project was a gift to us as well as to the children".

Hanne Sagalowsky
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The doorway to your new home!
How much trust should you put in Zillow and their Zestimates?
 
Probably not much.
 
I just went thru my sales this year in order to compare how accurate Zillow is. Here is what I found:
 
The variance on estimates of value were from:
 
Underpricing by 19% to Overpricing by 21%. WOW !
I don't think there is a better example of why you need a Realtor !
 
Call me, text me or email me.
Hanne@EBBY.com
 
Hanne Sagalowsky hanne@ebby.com / 214-402-8200 / International Property Specialist

 

Hanne Sagalowsky
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How much trust should you put in Zillow and their Zestimates in Dallas?
 
Probably not much. Zillow is especially inaccurate in Texas because we are a "non-disclosure" state.
 
I just went thru my sales, ALL in the Dallas area this year, in order to compare how accurate Zillow is. Here is what I found:
 
The variance on estimates of value were from:
 
Underpricing by 19% to Overpricing by 21%. WOW !
I don't think there is a better example of why you need a Realtor !
 
Call me, text me or email me.
Hanne@EBBY.com
 
Hanne Sagalowsky hanne@ebby.com / 214-402-8200 / International Property Specialist
Hanne Sagalowsky

This week the Federal Reserve announced the first rate hike in nine years. Interest rate increases are often misunderstood with varied reactions by consumers. One reaction is to buy quickly before the rate rises again. Another is to hold off on buying completely. The actual impact of the Federal Reserve decision is less than perceived by the public, as it affects home mortgages.

According to Marcy Moore with Lending Partners in the Preston Hollow/Park Cities office, "The 1/4% rate change by the Fed did not affect mortgages at all.  It did nothing but create a big "yawn". The mortgage industry has been factoring in this rate hike for months. Mortgage rates are set by Wall Street through mortgage backed securities, aka the bond market. Mortgage rates are currently stable and if they raise even the slightest, is is because of our strong real estate market and values."

Interest rates go up when the economy is growing. This matters more to homes sales and prices. A strong economy, even with a bump in the interest rate, means a healthy housing market. The option to those not buying is to rent and rental rates are higher than ever, with a correction not expected for two years. 

Mark Fleming, chief economist at First American, says the modest increase is good for the health of the housing market.

"For the first time since before the iPhone, the Federal Reserve has done it - raised the Federal Funds target rate by a modest quarter percent. This increase can actually be a good thing for the long-term health of the housing market. We are finally embarking on a path of rate normalization that will slow price appreciation and implies faster income growth, ending an era of leverage-assisted asset inflation, which is hampering affordability and undermining the housing market."

"A Fed rate increase may grab people's attention, yet the cost of borrowing money to buy a home remains historically low by all measurements. From our perspective, mortgage rates will remain low for years to come, and that's good for consumers and the real estate market."

If you are in the market to buy, don't give up. A good relationship with a local Realtor AND a local Mortgage Officer will guide you through the complexities of buying and selling.

Hanne Sagalowsky hanne@ebby.com / 214-402-8200 / International Property Specialist

Hanne Sagalowsky

This week the Federal Reserve announced the first rate hike in nine years. Interest rate increases are often misunderstood with varied reactions by consumers. One reaction is to buy quickly before the rate rises again. Another is to hold off on buying completely. The actual impact of the Federal Reserve decision is less than perceived by the public, as it affects home mortgages.

Interest rates go up when the economy is growing. This matters more to homes sales and prices. A strong economy, even with a bump in the interest rate, means a healthy housing market. The option to those not buying is to rent and rental rates are higher than ever, with a correction not expected for two years. 

The 1/4% rate hike affects a $300,000, 30 year mortgage by $43.00/month.  "A bump in mortgage rates has more bark than bite", says Gino Blefari, CEO of HSF Affiliates. "The average American spends about twice as much every month on coffee!"

Mark Fleming, chief economist at First American, says the modest increase is good for the health of the housing market.
"For the first time since before the iPhone, the Federal Reserve has done it - raised the Federal Funds target rate by a modest quarter percent. This increase can actually be a good thing for the long-term health of the housing market. We are finally embarking on a path of rate normalization that will slow price appreciation and implies faster income growth, ending an era of leverage-assisted asset inflation, which is hampering affordability and undermining the housing market."

"A Fed rate increase may grab people's attention, yet the cost of borrowing money to buy a home remains historically low by all measurements. From our perspective, mortgage rates will remain low for years to come, and that's good for consumers and the real estate market."

If you are in the market to buy, don't give up. A good relationship with a Realtor and a Mortgage Officer will guide you through the complexities of buying and selling.

Hanne Sagalowsky hanne@ebby.com / 214-402-8200 / International Property Specialist

Hanne Sagalowsky

 http://realtormag.realtor.org/news-and-commentary/commentary/article/2015/12/airbnb-crashing-neighborhood#.VnCB1G3wIA8.email

Airbnb Is Crashing the Neighborhood

Short-term rental websites raise risks for home owners, their neighbors, and communities.
 

There’s a good reason every city has zoning laws. They separate various types of buildings and building uses for the mutual benefit of everyone, so people don’t have to live next to a factory or a motel. Most cities also have laws related to the minimum rental period for a single-family house or a multifamily dwelling. In Los Angeles, for example, a residential rental of less than 30 days — called a “short-term rental” — is currently prohibited.

Internet companies such as Airbnb and VRBO pay no mind to such ordinances. They’ve swamped the market in California and elsewhere with thousands of STR listings, making the rules difficult or impossible to enforce. These rental sites appeal to home owners who need additional income. Then the companies use those owners as examples to coax cities into making STRs legal. Even though there’s clear demand on the part of home owners, that doesn’t justify the many problems STRs cause for the larger community.

Usually, there’s no problem with people renting a room in their home, as long as the lease is longer than 30 days and the home owner is present to monitor the renter’s activities. The owner has an opportunity to check the potential renter’s credit, employment, and references. However, STR websites are calling this type of pre-existing rental the “shared economy” to sell their quite different concept to cities.

These websites claim that home owners should have the right to do whatever they want with their property — but that’s a fallacy. When someone has purchased in a single-family or multifamily zone, they have accepted the rules of that zoning. They do not have the right to turn their home into a motel (transient zoning), a restaurant, or a factory to the detriment of everyone else in that zone.

STRs are having a dangerous effect on our housing stock. In L.A., a city desperate for more affordable housing, 11 units of long-term rental housing are being lost daily to STR conversions, according to a report from the Los Angeles Alliance for a New Economy. The report says people are converting rent-controlled units into commercial STR operations, and long-term rent-control tenants are being evicted. The loss of these units in the long-term rental market has driven up total housing costs for L.A. renters by more than $464 million in the last year. (Read more in this Los Angeles Times article, “Rental sites like Airbnb aren’t as innocuous as they pretend.”)

The trend for STRs is away from “shared spaces,” where owners are present. Individuals are now purchasing single-family or multifamily units to turn them into STRs — creating a business — to the considerable detriment of their neighbors. Some short-term renters turn these locations into party houses, creating noise, traffic, and a public nuisance. In such instances, neighbors who need a night’s sleep to work the next day or who have school-age children are disturbed. In my neighborhood, a home owner leased her property for a year to someone she believed was occupying it, only to learn he listed it on one of the STR sites as a “commercial party house.” Some 500 people being charged $125 apiece crammed narrow, winding canyon roads by illegally parking and throwing trash everywhere. When the property owner was alerted, she was shocked and started eviction proceedings.

STRs pose big risks for the home owners who are leasing their properties: Home insurance typically covers only owner-occupied or long-term rental homes. Damage to an STR likely isn’t covered. Airbnb seems to have addressed this problem with its “host guarantee” that offers up to $1 million for property damage caused by short-term renters, but owners should read the fine print: Airbnb itself says its policy “should not be considered as a replacement or stand-in for homeowners or renters insurance.” Most notably, it doesn’t cover liability at all. The fine print also suggests that property owners try to settle with the guest first. If no settlement can be reached, they have to document the damage and submit to a possible inspection. Airbnb won’t cover “reasonable wear and tear” — whatever that means — and limits compensation for high-value items such as jewelry and artwork. So, really, how much can a host expect to be protected?

The negative impact of STRs goes far beyond the immediate neighborhoods they’re in. Every region has environmental challenges, and short-term renters who are unfamiliar — or unconcerned — with those challenges could pose a big threat. California is in the midst of a severe drought. Imagine if a short-term renter who knew nothing of the threat — or didn’t care — threw a cigarette butt over a balcony onto dry brush?

Worst of all, the growth of short-term rentals has pitted neighbor against neighbor, with neighborhood organizations joining forces to fight STRs. Some cities are calling for stricter STR regulations or outright bans, but who will pay for enforcement of these rules? In fairness, STR websites and their customers should pay the bill. Local taxpayers would prefer to see their tax revenue used for better schools, roads, and public transit.

Those who support STRs speak of the financial help it has provided and the interesting visitors they have met. STR hosts say they provide lower-cost accommodations than conventional motels and hotels. Well, hotels and motels pay taxes and employ millions of people. They are required to meet public-safety laws, including fire exits, sprinklers, and habitability. Unregulated STRs are not currently subject to these provisions, and many “hosts” would like to keep it that way.

The real estate industry is caught in the middle of a fight between those who oppose STRs and the property owners and companies promoting them. But practitioners selling real estate should keep this in mind: A single-family home or condo unit next door to a short-term rental — where the occupants change every few days — will take longer to sell and bring in lower offers. You never know who your neighbors could be, and that’s a classic situation of property stigma.

In the future, real estate agents could be required to disclose to a seller or long-term renter the existence of a nearby STR. The California Association of REALTORS® may soon ask its Forms Committee to add a question to the Seller’s Property Questionnaire: “Is your home across from or next door to a short-term rental?” If agents fail to disclose nearby STRs they know about, they could open themselves up to a lawsuit by unhappy clients who end up living next door to one.

The real estate industry needs to take a stand to protect residential zoning laws against STRs. Without this protection, property values will decline and cause neighborhood stress and disruption. Real estate agents will have another obstacle to overcome in marketing properties and could expose themselves to liability. Saving our communities and protecting our property values is the mission of our industry. I have worked hard as a real estate broker to pay for my home of 29 years. I did not buy in a transient motel zone and do not believe that the profit motives of these short-term rental companies and a few property owners should be allowed to negatively impact my home’s value, peace and quiet, and safety.

 

 

 

Hanne Sagalowsky
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Front

Hip Pocket - 21 Wooded Gate -  Gated Community - Zero Lot - 4 Bedroom - 3 1/2 Bath - $859,900

A Stunning Zero Lot home in a gated community with the best location in the subdivision.  Contemporary features with traditional style.  The corner location lends loads of light through northern exposure windows.  Open & light living areas blend the living, dining, breakfast area & kitchen.   The Kitchen has every amenity for gourmet cooking:  granite counters, double ovens, built-in microwave & built-in refrigerator, 5 burner gas cooktop, walk-in pantry, & cabinetry with adjustable shelving. Soaring 2 story ceiling in living & dining. Living has fireplace with built-in display areas, media cabinet with wiring, & walk-in wet bar with sink, ice maker, & wine refrigerator. . All living areas downstairs overlook the outdoor patio, pool & spa with delightful waterfall.  A private study has built-in shelving.  The spacious master bedroom is on the first floor. The master bath is complete with separate shower, Jacuzzi tub, separate vanities, water closet, walk-in closet with built-in dresser & shelving. A large utility room is close to the master bedroom,  with  large closet, cabinetry & a sink Stunning staircase leads to 3 upstairs bedrooms, each with a walk-in closet & one with a private bath making for an excellent guest room. A Gameroom completes the upstairs, with a fireplace & a dry bar with an icemaker. Unique walk in attic storage space from gameroom is a rare find in a zero lot home. 

Hanne Sagalowsky / hanne@ebby.com / 214-402-8200 / International Property Specialist