Most of my clients profit from selling their homes, and just before signing the doted line, I’m often asked about capital gains taxes.

When you sell your primary residence, you are not taxed on your profits if:

1. You have have lived in the home for two out of the last five years.
2. Your gain does not exceed $250,000 as a single taxpayer or $500,000 as a married couple filing jointly.

Gains above these limits are taxed at the current rate of 15% for higher income tax payers and 5% for lower income tax payers.

In 2008 the rate will continue for higher income taxpayers; while the 5% lower income rate will drop to 0% for the 2008 tax year only. On January 1, 2009, the long term capital gains tax will once again be 15% and 5% through 2010.

Homeowners can use this tax free provision every two years. As set forth in the American Job Creation Act of 2004, properties converted from a 1031 exchange property into a primary residence must be held and used as a primary residence for at least five years to qualify for the tax exemption.

And last but not least, I would consult a “tax accountant” for more detailed information regarding your particular situation.

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group

“The purpose of life is a life of purpose”

New rules and restrictions are coming. Zero down-no more…..

Affected loans are:

• Mortgages for certain second home purchases.
• Short-term construction loans that convert to permanent mortgages.
• Cash-out refinances.
• Investment loan applications where the buyer already owns at least three other rental properties.
• Loans with anything less than full documentation of borrower income, credit and assets.
• Too new credit with thin files.

Freddie Mack plans to restrict financing to second and investment real estate purchasers who already own interest in multiple properties after August 8, 2008. Second home buyers will be ineligible for new mortgages through Freddie Mack if they have ownership interest in more than a total of four properties securing debt, including the one they propose to finance. The same for loans for rental houses and condos, and other investment properties. Freddie allowed up to 10 rental properties carrying mortgages.

Also affected, cash-out refinancing within the prior six months. The company defines a cash-out as any refinancing where the replacement loan balance exceeds the previous balance by 5% or more.

Meanwhile, private mortgage insurers- who provide loss coverage for lenders and investors on loans where down payments are less than 20%. Are also scaling back especially in declining areas-like Miami, Fl. One of the largest insurers, Genworth FInancial is no longer taking applications for second home purchases anywhere in Florida, irrespective of borrowers’ credit scores, assets or other characteristics.

PMI Group. another high volume insurer, is following suit. Including boosting minimum credit score requirements for “Jumbo” loans nationwide to a 700 FICO, and now will require at least a 10% down payment. And also ruling out stated loans.

MGIC, the largest private mortgage insurer, eliminated all “Option ARM loans”.

No wonder get rich quick, no money down infomercial’s are seen with less frequency these days.

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group

“The purpose of life is a life of purpose”

A Steal of a deal!

There is this 1/1, a corner unit, overlooking the pool of the  Met1,

waiting for you. Designer ready!

This would be below builders prices. Don’t delay! It would have to be a cash deal!!!! 

  (Only Unit under $300,00)   

                      $215,000

Motivated Seller!

This unit wont be listed in the MLS. Buyer can’t close. Just wants out. I’ll keep you posted on the progress of this deal! This will be a good gage as to how effective blog marketing can be. May the fastest draw win! 

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group . “What do you want to contribute”.

Just bring your toothbrush! Completely renovated in 05 (original unit was gutted). Impeccable 2/2 unit featuring wood flrs., Open Kitchen, Granite counters, Stainless steel appliances (brand name i.e. Kitchen Aid, Sub Zero), Built in Wine Cooler, Spacious Master Bdr., w/extra large shower space , High Hat lighting-all lights are on dimmer switches. This charming community also offers 24 hr security, lush landscaping, and pool area overlooking the Gables Waterway-no fixed bridges, dock space, sauna, laundry facilities and meeting rooms.

           2/2     1237 Sqft.

The sign of the times…….$339,000

Disclosure: I am the listing agent. When you get over the perfunctory hyped property description, the facts should tell you this would be a great buy.

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group

“The purpose of life is a life of purpose”

Knowing what to look for in the governing documents of condo and homeowners’ associations, can save you a lot of grief. Buyers often move into homes in community associations without full awareness of the rules and regulations that govern their use of the property. I’ve seen closings on units where buyers don’t realize that they can’t have a dog or that only one vehicle per unit is  allowed. As a result the management company end up being the bad guys more often than not, on behalf of the board of directors when all they do is educate the buyers on what they bought. That’s why it’s incumbent upon buyers and sellers to get as much information as possible  about life in a community or condo association.

Community Association

A community association is a non-profit corporation established to preserve property values in a development. The term includes homeowners’ associations, condominium associations, property owners’ associations and cooperative associations.

A community association is governed by a board of directors consisting of homeowners who are elected by their fellow residence and who volunteer their time to set policies. Some associations hire an outside management company to handle the day to day job of running the association (collecting monthly assessments, handling maintenance of common areas, notifying homeowners of rule violations, etc). Smaller associations may rely on volunteers to handle such tasks.

It’s a thankless job and because of that there are ample opportunities for opportunist to take advantage of the fact that there are hardly any checks and balances procedures in place to stave off those of poor character and judgement. (Boards of directors- some times self appointed, while shuffling paper around and doing nothing but getting kickbacks from a corrupt management company).

Common Restrictions

Pets - Some prohibit pets outright; others allow pets of a certain size or type.

Rentals - This is a common issue in Florida, as many buyers - particularly those buying into resort areas- want to retain the right to rent out their units.

Vehicles - Some restrict the amount of cars and type. For those who own commercial vehicles, RV, boats and trailers, you might want to get answers to very specific questions regarding this matter.

Home Offices

Most associations have updated their documents to allow residents to maintain home offices in certain situations. Generally, home offices are allowed when permitted under local zoning codes and one that generates no traffic or noise.

Exterior Alterations

Many buyers are unaware that there are strict limitations on their right to alter the exterior of a unit or home in a community association. Must get association approval before any changes are undertaken. This includes painting, additions and even landscaping changes.

Coral Gables has no association but city ordinances takes care of what can and can’t be done. And are very strictly enforced.

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group

“The purpose of life is a life of purpose”

Credit Score- a mathematical model, can make you or brake you. It is a lenders table of measure and should be your main concern if you care about  your money. The score can determine the fees, interest rates and terms you will be offered, or not.

Remember the following:

35% The Way You Pay

Your credit history is the most important factor!

30% What you owe

Keep your debt below 50% of your credit limit. Thirty percent would be ideal.

15% How long of a history

In other words, build a track record of stability and dependability. This factor assures you future credit. One important item-never close an account.

10% Types of credit

Try to have different types of credit. (mortgage, retail accts. etc.),

10% Trying to get new credit.

Try not to go crazy in applying for credit. Doing so can decrease your score in a heart beat. However, if you do go batty with this, do it within 14 days. In doing so, it  will count as only once.

In times of tight credit-like now, the tougher it is for those with less than stellar scores to get any kind of reasonable credit.

Hope this helps!

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group .

 “The purpose of life is a life of purpose”

Are you kidding? What rock have you been living under?  You might add, what about the sea of for sale signs sticking out in every major market throughout the U.S.?

You see, it is my contention that, it is not that there aren’t a whole lot of ready, willing, and able buyers these days, but,  the the lack of serious sellers in the market place. Yes, that’s right, no, it’s not a typo.

You see, if a seller, a real serious seller, not one that simply thinks that because the neighbors house or condo next door sold last year for X amount that there property should sell for the same amount or more.

What is a serious seller you might ask? A serious seller is:

• Willing to accept the best offer from the best buyer in the market.
• Has something to lose if they don’ sell.

If you’re a Realtor and your seller doesn’t fit the bill, you are wasting your time and everyone else’s.

If you’re a for sale by owner, take heed. (You’re swimming upstream against strong currents)

Bottom line- Seller’s, price your property right so that it would sell, mix in some effective marketing and a pinch of luck, and you too could find yourself in the annals of sold property records.

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group . “The purpose of life is a life of purpose”

WASHINGTON – Jan. 25, 2008 – Rates on 30-year mortgages dropped for a fourth straight week to the lowest level in nearly four years, raising hopes that low rates will help spur a rebound in the hard-hit housing industry.

Freddie Mac, the mortgage company, reported Thursday that 30-year, fixed-rate mortgages averaged 5.48 percent this week, down from 5.69 percent last week.

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group . “What do you want to contribute”.

So many people are being affected by the credit crunch these day’s, I thought a reminder that you can get your credit report for free from the three leading credit reporting companies  would be in order.

Go to it. http://annualcreditreport.com/

P.S. Don’t fall for the subscription pitches if you don’t need the additional services.

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group . “What do you want to contribute”.

While the Grovenor is not in Coral Gables, it’s worth living in it.

Marquee building in the Grove.     16th flr              2/2          Approximate      1,600 sqft

This unit is selling for $40,000 less than what it last sold for. It has been on the market since March 2006. You think there might be some motivation here?

THE ULTIMATE IN LUXURY LIVING!  TOP LEVEL AMENITIES THIS GORGEOUS UNIT HAS, SPECTACULAR VIEWS, TOP OF THE LINE KITCHEN, MARBLE BTHS, WOOD FLRS, & OUTFITTED CLOSETS. OUTSTANDING FITNESS FEATURES

NOW!!   For Only $920,000

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group . “What do you want to contribute”.

I know some of you, not all, are sitting on the sidelines

of the real estate game, waiting for the right moment to score on a deal. Right!,

Well, I believe I have one for you.

There is this 1/1, a corner unit, overlooking the pool of the  Met1,

waiting for you. Designer ready!

You could have this unit for under $340,000. This would be below

builders prices. Don’t delay! It would have to be a cash deal!!!!   (Only Unit under $300,00)   

                                                   $285,000

                                               Motivated Seller!

This unit wont be listed in the MLS so, I’ll keep you posted on the progress of this deal! This will be a good gage as to how effective blog marketing can be. May the fastest draw win! 

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group . “What do you want to contribute”.

As you know, property tax, foreclosure and short sale are the dominant words for 2007/2008. I’ve covered these subjects in previous posts, however, short sales, now it seems, are running neck and neck with foreclosures these days.

Many people did very well buying and selling real estate while home values rose year after year  and home equity loans where being cashed out almost as easily as an ATM transaction.

The tide has turned. The market has slowed and values have declined. Leaving those that bought at the tale end of the boom market holding the bag with not enough equity to sell or refinance the loan.

When a homeowner (seller) is faced with zero or negative equity at the closing table, a short sale may be a viable option.

Now, this can only occur when:

-The lender is willing to accept a reduced amount to pay off the mortgage at closing instead of foreclosing on the property.

- The seller must be unable to pay the mortgage.

- It must be an arm’s length transaction.

If you elect this route, run the numbers. A knowledgeable realtor can prepare a HUD-1 settlement statement before agreeing to the listing. Most lenders require the home to have been on the market for at least three months on the market. Also, discuss the short sale with an accountant to understand the tax consequences.

Hope this short on the short helps!

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group . “What do you want to contribute”.

Contingencies on a contract are conditions that must be met in order for the sale to go through. The most common ones in residential real estate are for inspections and financing.

An inspection contingency protects the buyers. It gives them the right to inspect the property to there liking. If the buyers find it unsatisfactory to them and the sellers refuse to correct the problem, the buyers can, most likely, walk away.

A financing contingency also protects the buyers. If the buyers use diligent efforts to attain a mortgage but can’t, they could also walk away from the contract.

An inspection contingency can run 10 to 14 days from the effective date-acceptance of the contract. Financing contracts can run up to 30 days or more. In a tight or strong market, where buyers are lining up with money to burn, smart sellers often request shorter time frames for contingencies-perhaps 3 days for inspections and 10-14 days for financing.

Work to do

A week or two may sound like plenty of time to satisfy contingencies, but as most people do, they wait until the last minute. Like the old adage-If you want something done fast, give it to a busy person, not someone with lots of time in their hands. The one person with plenty of time will undoubtedly wait for the last minute to get the job done. The more time you allow, the greater the risk of failure you face. 

A lot needs to get done in a short period of time:

• Select inspectors
• Complete Inspections
• Order further inspections if necessary
• Choose a mortgage broker
• Assemble your financial documentation
• Apply for a mortgage (Get Pre-Approved)
• Choose a loan
• Appraisal (Schedule it a day or so after the inspections are done)
• Choose an Insurance Broker
• Choose and Attorney if needed
• A closing agent

A good Real Estate Agent will simplify the process.

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com

The Recuset Group

Theme for 2008. Accept it, or join the foreclosure line!

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com  

The Recuset Group

The National Association of Realtors® thanked President George W. Bush for signing the Mortgage Forgiveness Debt Relief Act into law. The president offered a Christmas present to many people who have suffered the agony and humiliation of losing their home due to a short sale, foreclosure, deed in lieu of foreclosure or any similar arrangement that relieves the borrower of the obligation to pay some portion of their debt.

“NAR has been advocating for such a change to the IRS tax code for nearly 10 years. We have always believed that it is clearly an issue of fairness and of not kicking people when they are down. By making the forgiven debt taxable income, individuals in already unfortunate situations most likely faced IRS actions because they did not have the money to pay the additional taxes. This legislation will relieve that additional burden and may also encourage families to work with their lender to negotiate terms, knowing they will now not be subject to an IRS bill.

“Today’s bill (Dec. 20, 2007)will ensure that any debt forgiven on a mortgage secured for a principal residence will not be taxed. This is very significant legislation. This may also mean that some day in the future these families can once again achieve the dream of homeownership.”

Some background on the issue:

Realtors® Urge President To Sign Tax Relief Bill Quickly To Ease Foreclosure Burdens

WASHINGTON, December 18, 2007 - 

Many families and individuals are one step closer to seeing tax relief, thanks to the passage of the Mortgage Cancellation Tax Relief Act by the U.S. Senate and House of Representatives, according to the National Association of Realtors®. Since the early 1990s, NAR has advocated repealing the current law that forces individuals to pay an income tax when they have had a loan forgiven in either a foreclosure, a sale in a market where prices are declining or because the lender grants new mortgage terms.

“In sending this bill to the president, Congress made a good decision today that will affect many Americans who find themselves in a truly bad situation,” said NAR President Richard Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif. “As the leading advocate for housing issues, NAR believes that changing the IRS code is an issue of fundamental fairness. It will relieve a tax burden at a time when an individual or family has experienced a true economic loss arising from the sale or loss of their home. These people are already in financial distress and are most likely unable to pay additional taxes.”

NAR is committed to continuing efforts to make the horror of losing a home less burdensome for families. “This is not only about the subprime turmoil we are currently experiencing. This is about families where job loss, divorce, health issues, a drop in the value of the home or other unfortunate circumstances have caused them to lose their home or have to sell that home for less than the amount owed. Clearly, it is unfair to tax people on a phantom income when they most likely have no cash with which to pay the tax,” said Gaylord.

The current tax code requires a lender who forgives debt to provide a Form 1099 to the IRS stating the amount the borrower has been forgiven. This disclosure applies whether it is a short sale, foreclosure, deed in lieu of foreclosure or any similar arrangement that relieves the borrower of the obligation to pay some portion of their debt. If the property is sold at foreclosure or is sold for less then was borrowed, that difference is considered income and is subject to the tax.

The Mortgage Cancellation Tax Relief Act would ensure that any debt forgiven on any mortgage debt secured by a principal residence will not be taxed. The legislation includes a provision to safeguard against abuses. The provision, similar to one that already exists for commercial real estate owners, would treat commercial and residential property equally.

“Realtors® are about building communities, not just selling homes. We must work together to prevent the dream of homeownership from becoming a nightmare,” said Gaylord. “This is just one step that will help families get on with their lives and begin rebuilding their economic security. As the president has been a proponent for this change, we hope he will quickly sign this bill into law.”

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing more than 1.3 million members involved in all aspects of the residential and commercial real estate industries.

For professional advise on all aspects of buying or selling Real Estate, please contact me Richard Recuset at-786-287-9272 -email: RecusetRealEstate@Gmail.com  

The Recuset Group