Saving money in 2024!

As your trusted real estate advisor, We are here not only to guide you through the complexities of buying or selling property, but also to keep you informed about financial factors that could impact your home ownership journey and your financial stability. Today, let's dive into the anticipated tax code changes for 2024 and how they might offer you some relief in the coming year. Understanding the Shift in Tax Brackets The IRS periodically adjusts federal income tax brackets, and these changes can significantly affect your finances. For instance, if your income remained stable at $45,000 from 2023 to 2024, you might find yourself moving from a 22% tax bracket down to 12%. This means less federal tax and more money in your pocket each paycheck. However, if your income increases in 2024, the exact impact on your tax bracket will depend on the extent of this increase. While you might still land in a lower bracket due to the new changes, there's also a chance you could stay in the same bracket or even move up to a higher one. Inflation's Role in Your Financial Planning It's crucial to remember that while a drop in tax bracket can be beneficial, we are still navigating through an inflationary period. High prices for housing, gas, food, and other essentials might offset some of the financial benefits of a lower tax bracket. Therefore, it's essential to plan accordingly. If your Gross income is less than the amount shown for the family size listed on the left, youmay qualify for the Home Repair Program (2023 Income Guidelines for HUD Programs). A Closer Look at the 2024 Income Tax Brackets Your tax bracket determines how much you owe in federal taxes, not considering deductions like the standard or itemized deductions. Here's a breakdown for different filing statuses:     Single Filers: $11,600 or less 10% $11,601 - $47,150 $1,160 plus 12% of income over $11,600 $47,151 - $100,525 $5,426 plus 22% of income over $47,150 $100,526 - $191,950 $17,168.50 plus 24% of income over $100,525 $191,951 - $243,725 $39,110.50 plus 32% of income over $191,950 $243,726 - $609,350 $55,678.50 plus 35% of income over $243,725 $609,351 or more $183,647.25 plus 37% of income over $609,350   Married, Filing Jointly $23,200 or less 10% $23,201 - $94,300 $2,320 plus 12% of income over $94,301 - $201,050 $10,852 plus 22% of income over $94,300 $201,051 - $383,900 $34,227 plus 24% of income over $201,050 $383,901 - $487,450 $78,221 plus 32% of income over $383,900 $487,451 - $731,200 $111,357 plus 35% of income over $487,450 $731,201 or more $196,669.50 plus 37% of income over $731,200   The 2024 Standard Deduction The standard deduction for 2024 has increased, offering more tax relief. For single filers, it's now $14,600, up by $750. For those married and filing jointly, it's raised to $29,200, an increase of $1,500. Maximizing Your Tax Benefits Most taxpayers, particularly those with straightforward tax returns, benefit from claiming the standard deduction. If you're a W-2 employee, this is typically the best route for maximizing your refund. However, if you're self-employed or have unique deductions, itemizing may be more advantageous.   Additional Tax Changes to Anticipate in 2024 Besides the bracket adjustments, 2024 brings other changes that might positively impact your finances: A 3.2% cost-of-living adjustment for Social Security recipients. In 2023 COLA (Cost of living adjustments) was 8.7% so a little bit of a decrease.  The maximum amount of earnings subject to the Social Security tax (taxable maximum) will increase to $168,600. Increases in popular tax credits and deductions, including the Earned Income Tax Credit. Adjustments to the gift tax exclusion has increased to $18,000 per person up from $17,000 in 2023.       I'm aware that taxes might not be the most exciting topic for everyone, yet gaining a grasp on them can lead to substantial savings over time. This knowledge is particularly crucial if you're considering buying or selling a property this year, as staying informed can significantly impact your financial strength and set you up to be in a better position when you decide to make that change.

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Paws and Properties: A Tale of Selling your home with a Furry Family Member

Once upon a time, in a cozy neighborhood in Edmonds, there lived a cheerful Golden Retriever named Zeke and his loving family. Their house, a charming three story townhome filled with warmth and memories, had been Zeke's kingdom since he was a puppy. However, a new chapter beckoned as the family decided to move to be closer to family, necessitating the sale of their beloved home. As passionate real estate agents and avid animal lovers, we know the complexities involved in selling homes that come with furry, scaly, or finned residents. Whether it's cats, dogs, hamsters, snakes (yes, even snakes!), or fish, we've successfully navigated these unique situations.The majority of home buyers and sellers are pet owners, but surprisingly, a sign of a pet living in the home is not a selling point. Sixty percent of sellers are people with pets, with 49 percent owning dogs, 33 percent owning cats, and 12 percent owning other pets.  So how did we handle our latest endeavor, successfully selling a property that included a delightful dog named Zeke? Stay with us to hear all about Zeke's journey and we we will offer some insightful advice and tips for pet owners navigating similar challenges in the real estate market. Chapter 1: Preparing the Stage: Our journey began with preparing the house for sale. Zeke, with his keen sense of curiosity, watched as we decluttered and depersonalized each room. He even helped carry a few things, but then decided a nap was a better use of his time.  For pet owners, this step is crucial. Remove pet paraphernalia – like toys, beds, and feeding bowls – during showings to help potential buyers envision themselves in the space. Zeke's family also did a deep cleaning to eliminate any pet odors or fur. If you know that your pet sheds quite a bit you may need to swift the floors more often than usual, it may seem like a lot, but remember this stage of selling your home, though temporarily disruptive, is not permanent. Keeping your home in top shape and without pets in the house allows real estate agents to better showcase it to potential buyers. This helps them imagine the space as their future home, potentially leading to a quicker sale.   Chapter 2: The Art of First Impressions: Zeke, being a sociable dog, was always eager to greet visitors. However, not all buyers are pet enthusiasts. We decided it was best for Zeke to have playdates or stay with a neighbors during showings. This strategy not only kept Zeke stress-free, not having to protect the house from strangers, but also avoided any distractions for buyers. We also did this for the open house we scheduled, because with so many people that came through the open house it would have put undue stress on him to figure out who he wanted to play with. Remember, some people may have allergies or fears, so it's best to keep pets away during showings. Chapter 3: Highlighting the Positives: Zeke's home had many pet-friendly features, like a fenced yard and easy-to-clean flooring. As the realtors, we highlighted these aspects in the listing. You may also think about adding pet-friendly plants in your landscaping, or if you have them highlighting them and creating a designated area for pets.  Emphasizing such features can be a selling point for buyers with pets. Chapter 4: Picture-Perfect Marketing: While Zeke is a superstar in his own right, we chose to keep him out of the listing photos. The focus should be on the house, not its furry inhabitants. Make sure your listing photos are pet-free and showcase the best aspects of your property. You may also want to not display any photos of the animals in the home for the duration of the listing. Also if you know there may be ripped window screens, chew marks, or torn up lawns, make sure you take care of that before the pictures are taken. After all, these photos will be used everywhere, including your MLS listing, Zillow, and flyers around the neighborhood. Chapter 5: Don't Forget the Outside: It may seem self evident, but during our home showings, we often find ourselves navigating through dog waste while examining the backyard. For potential buyers to fully appreciate and focus on the yard's features, it's crucial that their attention isn't divided by having to watch their step. Therefore, maintaining a clean yard, free from any 'land mines' such as dog poop and scattered dog toys, can significantly enhance the appeal and presentation of your property. Chapter 6: Navigating Offers and Closing: When offers started coming in, Zeke's family was prepared. They had already planned for Zeke's accommodation during the move and closing process. As a pet owner, it's essential to consider your pet's needs during this transition period. Some of our pet's can handle the move really easily and others stress beacuse they aren't sure what this all means and are they coming with the rest of the family to the new home. If you are driving to your next home here is one suggestion that might help. Have all your pet’s necessities packed and on hand. Water bowls, favorite toys, a blanket, food, treats, kitty litter, etc., are a good start.If they are really nervous maybe some paper towels and ziplocs to help if there is an accident along the way. This way they feel like they have their own space in the car. Epilogue: A New Beginning: As Zeke and his family embarked on their new adventure, their old home found new owners – a charming woman  who loved the pet-friendly aspects of the house, and had a dog herself. It was a happy ending for everyone involved. For pet owners looking to sell, remember: Preparation, consideration for non-pet owners, and focusing on the strengths of your property are key. With these tips, you can make the selling process as smooth as possible, for both you and your furry friend. And as for Zeke, he found new corners to explore in Northern Idaho where he now has a sister, Grace that he can play in the snow with and she can bug him till he barks at her. He also has new cousins with Clark, Riley, Louise and of course Loki. Zeke carrys the love and memories of his first home in his heart while he  enjoys his new home. He finds the 4 seasons a lot more fun. If you are thinking of selling your home and need a real estate agent used to animals in the home. Give us a shout out, we would be happy to help you expedite this change in your life. The End.

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Giving Something of Value!

Hey there, folks! It's been quite the journey—24 incredible years in the real estate biz, to be exact! Along the way, I've met some amazing people, shared in their dreams, and helped them find their perfect nooks in this beautiful corner of the world. It's been my joy to not only meet, but exceed expectations, making friends who come back for seconds and bring their buddies along, too. It has truley been an honor for us. Recently, I opened a book that's been buzzing in my ears, "The Go-Giver," and boy, does it resonate! It kicks off with something called The First Law Of Value, which says, "Your true worth is determined by how much more you give in value, than you take in payment". I've been mulling over what truly defines the value we bring to the table as a real estate agent. This question turned from a musing into a real-world scenario just the other day when my phone rang at 7:30 pm. On the other end was a lady inquiring about property management services.She had found us on Google. I explained that we were steering our focus towards expanding our real estate sales business and were moving away from the property management side of things. She sounded a bit disheartened, so I jumped in to listen to her problem and lend a hand. She mentioned she was looking to rent out a property in Bonney Lake, which piqued my interest—I know the area like the back of my hand, as we manage a few properties there ourselves. I offered some insights into the local rental market and tips on securing a reliable tenant. Curious, I asked if she was relocating—turns out, she had landed a job in Port Angeles. Our conversation turned into a deep-dive that lasted a good half hour, punctuated by a series of questions that eventually led to one simple, but profound one: Why would she rent out an $800,000 home to buy another in Sequim? Her answer was heartfelt—she wanted to ensure her son’s financial future with a solid inheritance. She still owed money on the home, but would pay that and the new house's mortgage with her current pay. Her current mortgage was $2600/month. She was going to use some of her savings for the down payment. After chatting for a bit longer, I felt compelled to offer a proposition...  “Let me do some research”, I said, “and run some numbers. I have an idea for you, but I am not sure it will work. Are you willing to give me a few days and I will get back to you with what I find out?” She said, “absolutely YES!” A couple of days later, I followed up and said, “I have an idea, one that both my husband and I were surprised would work in this market. We'll have to verify with our loan expert first, but here's the game plan: Sell your current place for $800,000—with that sale, you could acquire not one, but two homes in Port Angeles, closer to where your life and work are centered now.This way you wouldn't need to pay a property manager in Bonney Lake and you wouldn't have to take saving out to pay for your down payment for the new house. By reinvesting the proceeds, you’ll be able to make substantial down payments on both, and the cherry on top? Your new total monthly payments will be $200 less per month than what you pay for your Bonney Lake residence (after factoring in $2500/month rental income for one of the houses—Even with current interest rates!” She was floored by the suggestion. And I added another cherry on top: This move could set her sons up for the future, giving them one house each to inherit. They'd have the freedom to decide, without pressure, whether to keep or sell. Plus, she'd be building equity in two properties simultaneously. She adored the idea. So, we're gearing up to sell her current house and scout out two more—a new home for her and a rental, setting a solid foundation for her family's future. This scenario really drove home the point that the value we offer is tailored to each client’s individual needs. It’s a dance we're constantly perfecting, and when we find that client that who isn't afraid to make jump, the results can be extraordinary. This is where our knack for creative solutions and experience in different real estate arena's helps us to exceed what our clients envision. We are thrilled that we can help our client's work on generational wealth. After all, it goes back to the book I am reading. Give more in value then you take in payment.  This is precisely why our client's rely on us in these times. To unearth those hidden opportunities. On to the next lesson in "The Go-Giver" for more insights into delivering unmatched value!  --Susie    

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