Dear Friends & Neighbors:

I hope everyone is doing well and starting to enjoy this change in the weather. I am writing to you to give you some great news and an update on the market.

I am happy to announce that Grupe Real Estate has opened offices in Lodi, Manteca, and San Francisco. The office in San Francisco will be a gateway to bring buyers and investors to our Central Valley. As we all know, many buyers come from the Bay Area. As the top producer and the energetic person you know I am, I will be the one overseeing the office in the city. I live here in Stockton and I will be doing business as usual here. Nothing will change for my business and services to you and your family.

I will have to drive to the city only 2-3 times per month, make some business connections and exchange information. If you know someone in the city or surrounding areas who needs someone honest, strong, and knowledgeable, please call me and I will personally make it happen. The bottom line is that Vanda Martin will be able to assist you in the Central Valley and the Bay Area as well.

Now, regarding the Stockton market, inventory is low. Prices have gone up slightly from last month; however, sales are flat due to short supply. The inventory of homes has decreased from the same month last year. This means there are very few homes to sell, so hopefully our prices will improve soon. Of course, we still have a larger inventory of the higher priced homes. The number of foreclosures, however, has seemed to stabilize but the number of "short sales" have increased. We are Platinum Certified for both bank REO and short sales and will gladly assist you thru the process.

We also provide an exciting, new, pre-tested, buying incentive: this will help sell your home quickly. Grupe Real Estate, with Grupe’s Green Home Solutions, Inc. We can offer all Grupe non-investor buyers a FREE, energy assessment of a 2000 square foot home for which the buyer contracts! Grupe Real Estate will partially subsidize the energy assessment cost to investors. Just call me for more information.

Please call me anytime with any questions you might have. My team and I are ready, able, and eager to help you with buying, investing or selling real estate. Last year we helped over 100 families and we would love to help anyone you know this year. Thank you for your loyalty, friendship, and referrals. We do appreciate your trust and business.

Top producing agent,
Grupe Real Estate
P.S. Please call me at (209) 955-5535

if you have any questions or would like a Free market analysis with no obligation.

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By:  Michael D. Luis, CPA

                     - Mike Luis is a practicing “CPA”     with Iacopi, Lenz  & Company. He counsels  his clients in areas of real estate and general taxation, and may be contacted at   209-957-3691.

We have some good news from the IRS regarding the home sale gain exclusion rules.  As you are probably aware, the IRS currently allows individuals to exclude from income gains of $500,000 (for married couples) and $250,000 (for single individuals) from the sale of principal residences unless the individuals have only owned or used the home for less than two of the five years preceding the sale, or if the gain exclusion was claimed by the individuals within the    last two years.  However, if a home sale does not meet these time tests, the taxpayer will be allowed a reduced exclusion if the sale occurred due to one of the following three reasons:  (1) a change in place of employment; (2) for health reasons; or, (3) “unforeseen circumstances”.

The IRS recently issued temporary guidance to help determine of individuals meet one of the above qualifying exceptions.  First, these exceptions for change of employment, health reasons, or “unforeseen circumstances” were broadened in that they may be attributable to any “qualified individual” which includes (in addition to the taxpayer and spouse) a co-owner of the residence or any person whose principal place of abode was the taxpayer’s residence.  For the health exception, the definition now includes family members of qualified individuals (such as a sick child, parent grandparent, or sibling).  If a physician recommends a change of residence for health reasons, the sale automatically qualifies.  However, this health exception does not apply if the move merely improves general health.

The most vague exception has been the provision

covering “unforeseen circumstances” which is now defined to generally include the following safe harbor events: (1) involuntary conversion (for example, fires, and floods) of the residence; (2) damage to the residence from a man-made disaster, war or act of terrorism; or (3) any of the following events affecting a “qualified individual” (as defined above): death, divorce or legal separation, becoming eligible for unemployment compensation, change in employment status that leaves the taxpayer unable to pay housing costs and basic household living expenses, or multiple births resulting from the same pregnancy.  I have recently seen individuals meeting these newly defined exceptions which have tremendously  helped to reduce their tax  liabilities.   

The above temporary guidance is subject to change following public comment.  However, if it is accepted as is, it can be applied on a retroactive basis.  Thus, If you have previously paid income tax on a gain from sale of a principal residence for which an exclusion is allowed by these new rules, an amended tax return can be filed to obtain a tax refund so long as the year is not closed by the statute of limitations….   

Is Your House Insurance Up to Date?

With escalating real estate values in California, homeowners insurance may not be keeping pace with actual property values.  This would apply not only to principal residences, but vacation homes as well as rental and commercial properties.

As a reminder, real property insurance coverage is generally for the structure and contents...not the underlying land.

If insurance coverage needs to be increased, policy deductibles can also be adjusted to help offset the additional premium cost.

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Visit Vanda's web site www.vandamartin.com

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