Connecticut Homesellers take note! Conveyance tax increase to begin July 1, 2011

ALERT:  The Biennium Budget Bill for 2012-2013 (Senate Bill #1239, Section 102) was just signed into law by Connecticut Governer Dannel P. Malloy. The Bill includes a .25 percent increase to the Real Estate Conveyance tax .

A synopsis of the new State Conveyance tax as of July 1, 2011 is as  follows (This is when you SELL your home) : ALSO NOTE: Your homeowner property taxes will change as of July 1, 2011 through June 31, 2012. Read this article to find your new mill rate.

• Residential property (and vacant land) will  be taxed at .75 percent or .0075 (instead of one half of of one percent).
• Residential property that is conveyed for more than $800,000  will be taxed at .75 percent or .0075 up to $800,000, and the balance of the sales price at 1.25 percent .
• Non-residential property will be   taxed at 1.25 percent, instead of one percent.
• Property conveyed by a delinquent mortgagor to a financial institution of property on which mortgage payments have been delinquent for not less than six months will be taxed at .75 percent or .0075.

Excerpted from OLR Bill Analysis  SB 1239-§§ 102 & 103 — REAL ESTATE CONVEYANCE TAX

"The real estate conveyance tax has two parts: a state tax and a municipal tax. The applicable state and municipal rates are added together to get the total tax rate for a particular transaction. The combined rate is applied to the sale price.

The current state tax is 0. 5% of (1) the first $ 800,000 of the sale price of a residential property and (2) the full sale price of unimproved land and certain bank foreclosures for mortgage delinquencies. A 1% rate applies to (1) sales of nonresidential property other than unimproved land and (2) any portion of the sale price of a residential dwelling that exceeds $ 800,000 (the so-called “mansion tax”). The bill increases these rates to 0. 75% and 1. 25%, respectively.
In addition to the state tax, a seller must pay a state-specified conveyance tax to the municipality where the property is located. The current municipal tax rate is 0. 25% for all towns plus an additional tax of up to 0. 25% in 18 eligible towns that choose to impose the increased rate. Thus, under current law, the municipal tax rate can range from 0. 25% to 0. 5%, depending on where the property is located."

It is somewhat unclear in the bill as to when the conveyance will be deemed to have occurred. I would advise speaking to your attorney for clarification as to which specific date would be accurate-  contract,  deed,  closing or recording, as it WILL MAKE A DIFFERENCE.  

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And a note From Judy: If you have a question about buying or selling Real Estate in Fairfield County, and are in need of an Realtor to represent you, I invite you to contact me, and if you have an idea for a topic that you would like to see on The CT Realty Blog, please include it in the "Post a Comment" section link below this post. We appreciate the feedback and look forward to providing you with the best real estate content, advice and service in Fairfield County, Connecticut.

The age old dilemma- do you put your home on the market before you find another house?

So you've decided that you would like to move. Great! What happens next? Do you go out looking at houses to see if you like anything enough to sell your home? Do you put your home on the market, wait until you get your deposit, and then start to look? Ask different people and you'll get a different answer.  So how do you know what to do?

There are a few things to consider in order to come to the best decision.

The market's health
Your own expectations

Market Health: In a slow  to average sellers market,  it's certainly okay, and probably a good idea to preview just a few houses in the town and price range that fits your parameters, but don't overdo it, and DO NOT look for that perfect house first.  A buyer who is ready  to buy will probably purchase that home before you have the ability, if you need to sell your current home first before you can qualify for a loan on the new house. You cannot compete with a buyer that's ready to go, when you are not. It's time to get serious when you get the initial deposit on your home. Remember, don't back yourself into a corner with a 30 day closing . Your agent (that would  be me- will guide you every step of the way)

If it's a sellers market, it's pretty much a simultaneous operation and requires that you be available to see homes whenever your agent calls you with the hottest properties. In this case, I would suggest that you also preview a few homes before you list yours for sale, and have your agent search every day for your next home  during the time that your home is on the market. If you get a buyer before you have found your next house, you can always extend the closing date to give you some breathing room.

Your expectations- and this is true for any market. If you go out and preview homes and nothing even remotely seems appropriate, then you have to do some soul searching on a few items-

1. Is your agent doing everything he/she can to showi you properties that fit your needs?
2.. Do you have unrealistic expectations?
3. Can you afford to move up to the type of home that you desire?
4.. Are you ready to make a move?

I will help you to make appropriate decisions regarding your move. None of my clients hav eever been without a home during my 26+ years being a Realtor, and I have helped hundreds of clients.I am NOT about to break my record on you! Contact me today and I will be your advocate.

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2011 First Quarter Real Estate Market Reports for Southwestern CT are now available!

We are pleased to present to you our quarterly all-inclusive reports for your favorite towns that we service. Market Report Statistics in Fairfield County include the following towns: Darien, Easton, Fairfield, Greenwich, Monroe, New Canaan, Newtown, Norwalk, Redding, Shelton, Stratford, Trumbull, Weston and Westport, Connecticut. New Haven County Market Report Statistics include Ansonia, Derby, Milford, Oxford and Seymour, Connecticut

Our Market Report Statistics come straight from the MLS, and we  have included  ALL of each towns active listings for this detailed report- including single families, condominiums, multi-families and apartment rentals, which are sorted by bedroom count, as well as land .This set of statistics includes average list price, average sales price and average days on market.

The next set of market statistics is on sold properties for the first quarter and is all inclusive of single families, condominiums, multi-families and rentals that are sorted by bedroom vount as well. Additional information includes how many sales, what the average list price of those sales was, the sale prce to list price ratio, and market time of the sold listings.

You will find these real estate market reports on their respective town pages on the left hand side bar. As always , we are pleased to be of service to you, and when you are ready to buy a home, or sell a home in any of the areas that we specialize in, make sure you contact us!

Selling your home FSBO- Is there really a risk?

You bet there is! For both the seller and the buyer. Selling a home without an agent is a lot more challenging than most  owners think.  A very valuable role that your agent plays in your transaction is negotiating issues on your behalf without letting emotions get in the way.  Most sellers are just as emotional as the buyer is about their sale. That's not to say that buying a FSBO home is easy. Buying a FSBO home is also a complex transaction, involving many events and services  that needs to be coordinated, and involves an element of risk. Put the two unrepresented parties together and it's a recipe for disaster.

Before a seller puts their home up for sale, the first thing that needs to be done is to make sure through the town clerks office that there are no liens on the property that would preclude them from selling the home, or at minimum, affect their bottom line. The seller must then obtain all of the state required documentation and disclosures and fill them out truthfully and properly, as these disclosures must be given to the buyer.

Misrepresenting your home's size, condition or amenities even by accident can result in a lawsuit, and most always ends up as a lost sale. Any marketing materials must be clear and  accurate. Unfortunately, we live in a litigious society where people sue for just about anything they can think of. Sorry, but true. There was an local seller  who got sued years ago because they mis-stated the square footage on their  home. The buyer thought he was purchasing a  2500 square foot home, and it turned out to be 2100 and some odd square feet, as found out by the appraiser. The buyer then proceeded to calculate square footage cost based upon the size stated on the listing(and assumed to be accurate by the buyer), deducted the cost of the overage and revised his offer.  My unresolved question in this is- Why didn't the buyer's agent tell that buyer?

The seller didn't want to budge from the original price, the buyer wanted that house and threatened a much larger lawsuit if the seller didn't follow through with the sale. It did close, however that seller ended up selling his home for a much less than fair price.  I would have hated to sit at that closing table. Ouch!

Something to think about- Real estate agents have to pass a test  in order to become licensed. The state thinks it is important enough that the State of Connecticut Department of Consumer Protection oversees all licensees, and hold them to strict guidelines, besides having mandatory education every two years on new laws.  When you look for a Realtor, you look for an agent that is experienced, right? You want someone who knows all the ins and outs of a transaction, and can help through the rough spots.  If that is the case, when you sell your home by yourself, you are actually hiring the most inexperienced person to represent you. Even if you bought and sold ten houses before,  the laws have changed and continue to do so. What was acceptable even five years ago is not appropriate  now.

And what about that interested  buyer that pulls up to your home in the nice new Mercedes, gets out of the car and is dressed very well? They look qualified, but are they? How much are those payments for that luxury automobile? Do they fit within the buyers income bracket, whereas the payment will not lesen their ability to get a mortgage? That buyer may very well come to you with a pre-qualification letter, but as Realtors- we know that a pre-approval letter is the one that counts. Most anyone can get a pre-qualification letter- generally, no assets are even checked before those letters are issued. Not worth the paper they're written on, in my opinion.

Some buyers look ONLY for FSBO's, thinking that they can take advantage of an uneducated seller.  The offer that you receive on your home has to have all of the necessary elements included or it is not a valid offer. All contingencies must be spelled out and have due dates- that even includes inspections.

Of course, you will need an attorney, to perform the closing, just as you would with an agent. However, any legal issues over and above a standard closing will be extra. You can end up paying an attorney more than you would have paid a Realtor to represent your interests, before anything ever escalated to the point where you have to call an attorney in.  

Call me, I don't bite and I am not hard sell or high- pressure. There is no cost for me to come over and give you an honest evaluation. I look at it this way- If you are truly not interested in hiring me, or any agent, you may know someone else who is someday and that you would think of me and refer my services.All the best to you- when you are ready for a Realtor, contact me. I'm here for you.

What are the three most important factors when selling a home?

When you decide it's time to sell your home, pay special attention to three very important factors. These weigh heavily in any type of market and  can make or break the sale of your home.

• PRICE: The first  and foremost prerequisite to selling your home is pricing it correctly.  That doesn't mean adding extra room for negotiations. That only puts you into a price category that you can't easily compete with other homes. Remember, buying a home is truly an emotional purchase for a buyer. They always seem to come up to your price if they really want your home. In our area, The sales price to list price ratio is around 95% and that is already factored into the list price. Your agent (that would be me!) will conduct thorough market analyses to ensure that you know what the proper list price for your home should be. If you are thinking of selling your home now, contact me for your detailed market analyses.

•  CONDITION: Second, go through the house  with your agent and fix any obvious issues. I will conduct a walk -through with you when we place yourhome n the market, not only to see all of its features, but to consult with you about any problems that you may be aware of, and  make suggestions to if I find any areas of concern. Cosmetics and interior neutralization to enable your home to appeal to the most buyers is  of the utmost importance. This is one of the first step of staging your home for sale. Utilize my 26+ years in the industry to advise you as to what makes the most sense before you make any changes.

• EXPOSURE:  Exposure is important, but at the same time, it is also important that your agent does not over-expose your home. Your home should be advertised in the places that make the best sense. Make sure that your home is getting the proper exposure it deserves through appropriate advertising, broker and public open houses, Marketing materials for your home that are placed at your home, and an accurate listing on the local multiple listing service or online listings providers.

When you are ready to sell your home, contact me. I will make sure that youunderstand  all of these very important components of selling your home, and more importantly, I will implement them on your behalf.

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