Published: November 7, 2013
Filed Under: Market Trends, Videos
You’ve likely seen a lot of information in the news about increases to flood insurance premiums. Homeowners are reasonably concerned about the impact these changes will have on the cost of coverage and the value of their homes. I’ve also seen and heard a lot of misinformation. The information in this post is from FEMA. Their website is excellent and while their videos are not the most entertaining, they are informative.
Here are some things you should know as well as key provisions of the plan.
Changes to the National Flood Insurance Program (NFIP) came about through legislation called the Biggert-Waters Flood Insurance Reform Act of 2012.
The law requires changes to all major components of the program, not just flood insurance premiums. Additionally included is flood hazard mapping, grants, and the management of floodplains. Primary and secondary residences are affected as well as businesses.
The reason for the change was that the premium structure didn’t reflect the true risks and costs of flooding. Some homeowners and businesses were receiving insurance at “subsidized” rates.
In Louisiana 83% of NFIP policy holders have policies that are already “acturarially rated” meaning that the premiums on these policies reflect current risk.
10% of all Louisiana NFIP policies cover subsidized primary residences, which will remain subsidized unless or until the property is sold (new rates will be charged to the next owner) or the policy lapses.
4% of Louisiana’s NFIP policies will see increases up to 25% each year until premiums reflect full risk rates. These include non-primary residences, businesses, and severe repetitive loss properties.
Currently House and Senate leaders are involved in bi-partisan discussions and have proposed delays to increases in premiums for primary, non-repetitive loss residences that are currently grandfathered, all properties sold after July 6, 2012, and all properties that purchase a new policy after July 6, 2012. These suggested revisions are in the proposal stage. A vote has not been taken.
The best source of information on flood insurance premiums is your insurance agent. Carter Fourrier, with the Fourrier Agency, was recently at our office to explain the law and it’s provisions. You might want to give them a call as we all found the discussion very help and Carter and his team are highly knowledgeable. Go to: www.fourrieragency.com or call Carter at (225) 383-0682.
The FEMA website has lots of information and videos. I will post the ones I find most interesting. You should also visit the FEMA site, www.FEMA.gov.
LSU has a handy website that can show you were you home is located. Go to: maps.LSUAgCenter.com. Please note, however, that these floodmaps may not be 100% accurate. You may need to get a flood elevation certificate or there may be map adjustments that are not currentlly reflected by the mapping tools.
Published: September 16, 2013
Filed Under: Market Trends, Real Estate Investing
When you list your home for sale, hire an agent who out performs the market. How did I do that? Give me a call at (225) 772-8709.
| September 2012 – September 2013 | Average Days on Market | Average Continuous Days on Market | % Sold/List Price |
| Helene Kurtz | 45 | 56 | 97.9% |
| All Baton Rouge Agents | 91 | 114 | 97.0% |
Source: Greater Baton Rouge Association of Realtors Multiple Listing Service, Sales and Inventory Report. September 16, 2013.
Published: September 13, 2013
Filed Under: Education
When considering listing your home for sale with a real estate agent it’s important to ask, “What was the last class you took to improve your home selling and marketing skills?” No matter how much you know, or how much you think you know, there’s always more to learn. That’s why I just completed a two day course in obtaining and servicing real estate listings.
The class was conducted by the Council of Residential Specialists of the National Association of Realtors. It was held in Baton Rouge at our local office. The course included techniques in seller counseling, pricing, various client servicing activities, marketing techniques, and other programs designed to close sales on residential properties.
I enjoyed it. I learned from it. And, I had a good time with other top producing agents in my market. I’m glad the Greater Baton Rouge Association of Realtors brought this program to our market and will definitely attend the next in a series of programs planned for next year.
Published: August 14, 2013
Filed Under: Market Trends, Videos
Here’s the latest from the Greater Baton Rouge Association of Realtors. Home prices are returning to pre-recession levels and inventory is at a 5 year low.
Published: January 3, 2013
Filed Under: Market Trends, Real Estate Investing
Wondering how the new legislation passed to avoid the “fiscal cliff” might affect your real estate investments? This information was posted on the realtor.org website this morning.
Real Estate Extenders
Permanent Repeal of Pease Limitations for 99% of Taxpayers
Under the agreement so called “Pease Limitations” that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers. These limitations will only apply to individuals earning more than $250,000 and joint filers earning above $300,000. These thresholds have been increased and are indexed for inflation and will rise over time. Under the formula, the amount of adjusted gross income above the threshold is multiplied by three percent. That amount is then used to reduce the total value of the filer’s itemized deductions. The total amount of reduction cannot exceed 80 percent of the filer’s itemized deductions.
These limits were first enacted in 1990 (named for the Ohio Congressman Don Pease who came up with the idea) and continued throughout the Clinton years. They were gradually phased out as a result of the 2001 tax cuts and were completely eliminated in 2010-2012. Had we gone over the fiscal cliff, Pease limitations would have been reinstituted on all filers starting at $174,450 of adjusted gross income.
Capital Gains
Capital Gains rate stays at 15 percent for those in the top rate of $400,000 (individual) and $450,000 (joint) return. After that, any gains above those amounts will be taxed at 20 percent. The $250,000/$500,000 exclusion for sale of principle residence remains in place.
Estate Tax
The first $5 million dollars in individual estates and $10 million for family estates are now exempted from the estate tax. After that the rate will be 40 percent, up from 35 percent. The exemption amounts are indexed for inflation.