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Expert Tips for Navigating the Real Estate Market

Our mission at Team Lally is to be your best resource for real estate advice. Whether you are a buyer, seller, or investor, our team of professionals can answer any questions you might have about real estate. Subscribe to this blog to get the latest news on local market trends and receive expert tips for buying or selling a home.

Crazy Home Seller Does Nutty Updates - FAIL!

Today, we wanted to share our list of upgrades that won't bring you any value or return on your investment.


When you prepare your home to sell it, there are certain upgrades you should actually avoid making:

1. Wallpaper: Buyers don't want to see wallpaper!


2. Lavish lighting: Chihuly fixtures look cool in the lobby of a Las Vegas resort, but not in a home. Buyers won't see the value, so keep light fixtures simple.

3. Carpet: If you're thinking of replacing it, go with laminate or engineered wood flooring.

4. Bold colors: Unless you're Austin Powers trying to defeat Dr. Evil, keep colors neutral and calm.

5. Overspending on landscaping: Here in Hawaii, less is best. Have clear sight lines of the home from the street to give great curb appeal. A functional sprinkler system will give you the best return. Think open green spaces, not a jungle landscape.

If you'd like to hear the final five things you should avoid in your home when preparing it for the market, give us a call to schedule a consultation. We'd love to share them with you!

Is Our MID DOA? Hopefully Not LOL

 


Today we want to talk to you about how the new administration is looking to revamp the tax code—in a way that affects the long-standing mortgage interest deduction (MID). Some people are concerned this might impact home sales and drive down home values. We believe it will do just the opposite. Here's why.  

First—a bit of background. Under the current system, you can include the interest you pay on your mortgage in your itemized tax deductions. If your itemized deductions turn out to be more than your standard deduction, you save more on taxes. Currently, about 20% of homeowners who have a mortgage take advantage of the MID, for an annual average savings of $2,000 in taxes.

Under the proposed new tax plan, the standard tax deduction would almost double. For example, the standard deduction for a married couple would go from $12,600 to $24,000. If this happens, an estimated 84% of people who are currently opting to itemize taxes would simply go for the standard deduction.
Taxes will actually be lowered under the new plan.
This is the part that has some people worried. After all, if people don't take advantage of the MID, won't this decrease the value of owning a home? Here are two reasons why that won't happen.  

First, most people do not buy a home in order to save on taxes. A survey from 2015 confirms this fact. The top reasons why people buy a home include the need for change, an increase in income, or a baby on the way...but there's no mention of saving on taxes. This shows what most real estate professionals see in real life.

Second, taxes will actually be lower under the proposed new plan. Traditional estimates of the impact of the MID assume other taxes stay the same. In this case, if the deduction goes away, home prices can indeed suffer to an extent. But under the proposed new plan, the overall tax burden will be less than it currently is. In other words, most people will not be losing money because they aren't claiming the MID. Instead, they will be gaining money by having to pay less in taxes altogether.

With more disposable income, people will be free to spend more on a home. This will drive sales as well as prices. The fact is, current home prices here in Hawaii keep increasing—not because of tax breaks, but because of tight supply.

If you’re considering selling and want to take advantage of this situation, give us a call and we would be happy to help you. Thanks and Aloha!

Team Lally Radio Show with Sean Tadaki

Joining Team Lally in this episode is Sean Tadaki, Managing Partner of Commercial Asset Advisers. Sean talks about growing being from the East Coast, born in the D.C area and grew up in Tokyo. He tells the story of how he fell in love with Real Estate and was eventually burnt out, prompting his move to Hawaii as a change of scene.

Sean discussed with us how he eats, sleeps, and breathes office and healthcare commercial real estate and tells the story of how made his business work through his excellent relationships with his clients.

Also in this episode: Quotes of the day, Tips of the week, special events, this week's Open houses and Coming soon listings.


Who is Sean Tadaki?



Sean Tadaki is the Managing Partner of Commercial Asset Advisers. Sean has built deep roots in the business community and the non-profit sectors in efforts to better Hawaii.

He volunteers and serves on the Board of Directors of several organizations including Mental Health Kokua, Institute for Human Services, The Gift Foundation and the Urban Land Institute, Young Leaders, among others.

He is also a designee and served seven years on the Board of Directors for CCIM , which is recognized as the PhD. of commercial real estate. Over the past decade he has been a top producer in the commercial real estate market in Hawaii.
 

To reach Sean, you may contact him in the following ways:

Mobile: 808.779.9699
Direct: 808.564.3303
Email: stadaki@caahawaii.com
Website: caahawaii.com