Finding the Right Home

With all the choices in today's market, how do you go about finding the right home? It seems the more research you do, the more alternatives you discover.

It's important to visualize your needs and plan ahead. "Know what you want in a home, what's important to you, and what you can live without," Parker Quigley, Realtor of ReMax Foothills/ Anderson says. "Many of us start out with a champagne taste and a beer pocketbook, so it's important to be realistic," she adds.

Where and what you buy will affect you for as long as you live in the house. "Get your priorities in order before you start looking or even talk to a real estate broker or sales associate," Quigley says.

For first-time home buyers this is a new experience, so it's especially important to do your homework. If you currently own a home, you know exactly what's lacking. You may need another bedroom or bathroom, or a good school nearby.

First, decide where you want to live. A big part of the answer hinges on where and how you earn a living. If your job requires a lot of reading or is quite stressful, public transportation may offer valuable time to sit quietly. "Regardless, you should practice the commute in rush hour before you make a commitment. A seemingly quiet road can transform into gridlock during peak hours," Quigley cautions.

People with children have other major considerations: school and safety. If you plan to send your children to private schools, you can live where you want assuming you can easily arrange transportation. On the other hand, a lavish public school system may indicate high local real estate taxes. Check them out.

Obviously, lifestyle is an important consideration. People who frequently dine out, go dancing and attend the theater probably belong in the city or a close-in suburb. "In other words, make sure you're in close proximity to the things that matter most," Quigley says.

It used to be that homes came in a limited variety, but today, you have many choices. In addition to the traditional single-family home, you can buy a townhouse, condominium or apartment condominium or co-op.

In planned unit developments (PUDs), you can find almost any combination. In condos and other such communities, make sure the rules and regulations, as well as the by-laws, match your lifestyle. This type of housing is great for people who want to own their own space without being responsible for mowing the lawn or repairing the roof; a management company handles that.

On the other hand, you'll pay fees for these services. "In addition to checking the documents and financial soundness of the homeowner's association, you must determine if the monthly fees are worth the services and additional amenities such as a swimming pool or exercise room", Quigley explains.

Affordability can be a factor not only in the type of housing, but whether it's new or an existing home. Old houses often have fine woodwork or interesting nooks and crannies not normally found in new homes. They generally sit on landscaped lots with mature trees and grown bushes.

New homes may cost more, but you can make many more decisions on amenities, colors, carpeting and fixtures. "Make sure you're dealing with a reputable builder, and have an attorney review all documents, Quigley says.

Selecting a real estate professional is an important first step in beginning your search. "Ask for personal recommendations to find an individual who is knowledgeable about the neighborhood and has access to the local Multiple Listing Service," Quigley says. Make sure you feel confident about his or her knowledge and skills, and understand the business relationship that you have established between you.

Parker Quigley is one of more than 40,000 members of the Real Estate BUYER'S AGENT Council (REBAC) of the NATIONAL ASSOCIATION OF REALTORS®, who have attained the ABR®, Accredited Buyer Representative, designation. As the world's largest association of real estate professionals focusing specifically on representing the real estate buyer, REBAC is "The Voice for Buyer Representation," with more than 44,000 active real estate professional members of the organization throughout the world.

1031 Tax Exchange ( Vacation/ 2nd homes)

****Courtesy of the Western Upstate Assoc. of Realtors***

1031 and Vacation Homes Rev Proc 2008-16
Can you do a 1031 Exchanges on a Vacation Home?
Taxpayers wanting to defer taxes on a vacation home through a Section 1031 like-kind exchange have
contended with incomplete guidelines for many years. A 1031 Exchange allows taxpayers to sell "business
or investment" property and purchase replacement property within the current regulations and have the
opportunity to defer or eliminate all the Federal and State Taxes. The current tax law will only allow you
to use Section 1031 for assets "held" either "for use in a trade or business" or "for investment." Property
that is held for personal use like a pure second home usually did not qualify. On February 15, 2008, the IRS
released Revenue Procedure 2008-16.
The IRS has never given guidance on how to handle these dual properties that have both personal and
investment use. Most vacation homes were rented, but no one knew how much personal use was allowed.
With Revenue Procedure 2008-16, the IRS will allow a vacation home to qualify for a Section 1031
exchange if the following conditions are met:
For the relinquished property
• You have owned it at least 24 months before the exchange
• In each of the two 12-month periods prior to the exchange the property has been rented at fair
value for 14 days or more
• The taxpayer's personal use of the property during the prior two 12-month periods doesn't
exceed the greater of 14 days, or-10% of the number of days during the periods that the
property is rented at a fair rental rate.
As with any 1031 exchange the replacement property must also qualify for business or investment property
test. The new Revenue Procedure will allow the property to qualify for 1031 exchange if the property is
held for at least 24 months after the exchange. Also the personal use and rental for the two 12 subsequent
12 month periods meet the same 14 day/10% test that hold for the property given up.
Please note that the Revenue Procedure is a just a Safe Harbor or guideline. The Safe Harbor means that if
you follow these rules your exchange will not fall under IRS scrutiny. If you do not meet these rules exactly
it does not preclude your exchange from qualifying.
Check with your tax attorney or 1031 Exchange Facilitator for more information.

Monday......already!!!!!

Welcome back! My husband, Gary, and I took a wonderful leisurely ride in our cruizer on both Friday & Saturday nights to Portman Marina to dine at THE GALLEY restaurant. The have wonderful entree choices such as Prime Rib, King Crab Legs, Stuffed Flounder and many small dishes from the Tapas Bar in the Hearth Room. Living on Lake Hartwell is like being on vacation every day!!!!Ahhh, life is good! ~Parker

Labor Day Weekend's Over....Back to work!

I hope everyone had a great Labor Day Weekend! Lake Hartwell is quiet again and Fun was had by all!
~Parker