The Coronato Property Group Pups want to remind everyone that...

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While our pets are our family, not everyone is as in love with our furry friends. Make sure to vacuum up any pet hair, put away food bowls, litter boxes, beds and scratching posts. Chew toys should be off the floor, and pet odors should be neutralized with a LIGHTLY scented spray or try opening the windows for an hour before a showing or open house to eliminate odors you may be used to and not realize exist. Taking your dog for a walk during a showing or having your cat visit grandma during an open house might be a good idea, too. While it’s hard to imagine anyone not loving these faces, potential buyers who don’t have pets often find it difficult to imagine the house as their own when there is pet evidence all over.

How Long Does it Take to Close a Loan?

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Loans typically take 4-6 weeks from the date of application to closing. Make sure your contracts provide sufficient time for your lender to close so you don't have to negotiate extensions later. Additionally, a closing date 20 days from now doesn't make sense with a 30 day mortgage contingency. Make sure dates in your contract work together so amendments are not necessary after the contract is signed.

Should You File a Tax Appeal?

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Tax appeals are filed by April 1 every year for the previous tax year. Your assessment should be dependent on your market value, so if you purchased your property in or before October, and your calculation shows that you are over-assessed, it’s a great time to file an appeal.

Your tax assessment may seem low, because New Jersey tax assessors use what is called an
“equalization rate” to set the assessment number. The rate is a percentage that when applied to your assessment equals what the town or city believes your market value is.

So for example, your assessment may be $100,000, but if your equalization ratio is only 50%, that would mean the town actually believes your property is worth $200,000. If you just purchased for $150,000, you are over assessed and have a great case for an appeal.

We work with great tax appeal attorneys and we’re happy to have them provide you with a free analysis of your eligibility for a tax appeal.

Can I Defer My Taxes With a 1031 Exchange?

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A Section 1031 Exchange allows investors to avoid paying capital gains tax on the income from the sale of an investment property provided they follow the strict guidelines required to complete the transaction. From hundreds of millions of dollars in retail properties to the small single family home you have been renting out, you may be eligible for significant savings. Please let our team know if you would like more information!

Who Pays Transfer Tax and How Much Does it Cost?

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Typically, a Seller will pay transfer tax for a real estate sale in New Jersey.

If your purchase price is $350,000 or less, your tax is calculated as follows:

  1. $2.00/$500 of consideration not in excess of $150,000;

  2. $3.35/$500 of consideration in excess of $150,000 but not in excess of $200,000;

  3. $3.90/$500 of consideration in excess of $200,000 but not in excess of $350,000.

If your purchase price is over $350,000, your tax is calculated as follows:

  1. $2.90/$500 of consideration not in excess of $150,000;

  2. $4.25/$500 of consideration in excess of $150,000 but not in excess of $200,000;

  3. $4.80/$500 of consideration in excess of $200,000 but not in excess of $550,000;

  4. $5.30/$500 of consideration in excess of $550,000 but not in excess of $850,000;

  5. $5.80/$500 of consideration in excess of $850,000 but not in excess of $1,000,000;

  6. $6.05/$500 of consideration in excess of $1,000,000.

There is an additional “Mansion Tax” payable by the Buyer if the purchase price exceeds $1,000,000 in the amount of 1%.

Don't Wait to Negotiate!

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Typically, an inspection contingency only allows you to request repairs of anything that you couldn’t see when you visited the house. Negotiate any cosmetic concerns into your purchase price before you enter into contract, don’t wait for inspections! Is paint chipping off all of the walls? Is the carpet stained? These are issues you have to factor into your purchase price offer, don’t wait to negotiate!

Also, consider whether you want certain things to be included in a sale and be specific in the realtor’s form contract…things like area rugs, chandeliers, sound systems, blinds and curtains, pool equipment, patio furniture, or appliances. It’s much harder once you have entered attorney review to negotiate these items.

What is a Title Binder and Why Do I Need One?

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A title binder is a report provided by a title company that will tell you if your seller has full legal ownership of the property so there is no question that when you get your deed, you become the legal owner. The binder will also contain any mortgages or liens that need to be paid off at closing, like a contractor’s lien for unpaid work done at the property. You don’t want to inherit those costs! The binder will tell you if there are any unpaid taxes, or litigation that could affect your ownership of the property, as well. Finally, any easements will show up in the binder. Easements tell you if anyone else has rights to use your property, or likewise, if you have the right to use a neighboring property, for example, a shared driveway. We work with great title companies that will provide you with a binder to review with your attorney so you are protected from any surprises later!