Southwest DC Waterfront is a wonderful example of mid-century American architecture, much of Southwest was redeveloped in the 1950-1960s.

The neighborhood offers everything from small studio apartments to large townhouses and palatial apartments with water views.

The residential area of Southwest DC is bounded by South Capitol Street to the east, 14th Street to the west, the Southeast-Southwest Freeway to the north, and Washington Channel to the south.

Here are the figures:

Currently For Sale: 88 homes

Current asking price:
Low: $99,900
High: $899,900
Average: $280,680

Under Contract: 24 homes

Asking price at contract:
Low: $130,000
High: $449,900
Average: $296,057

Average Number of Days on Market Until Contract: 103

Sold since 1/1/2010: 18 homes

Final sales price:
Low: $115,000 

High: $804,000
Average: $318,715

Average asking price for sold properties: $333,900

Average Number of Days on Market Until Contract: 63

When you're working with same-sex couples as a REALTOR, are you talking to them about how they will hold title? The law in the District of Columbia has been evolving rapidly in the last year. Are you aware of their options?

Most agents should be familiar with the options: tenants in common, joint tenants, and tenants by the entirety. With tenants in common, the interests of the deceased pass through probate. With joint tenants, the surviving owner has a right of survivorship; the interests pass outside a will. With these two types of tenancy, either owner can sell his or her share without the consent of the other owner.

Tenants by the entirety also passes outside a will; each owner is seen to own the property in its entirety. Hence an owner cannot unilaterally sell his or her share of the property. Tenants by the entirety can also shield the property from the debts of a deceased spouse.

In Washington, DC domestic partners have been able to hold title as tenants by the entirety since 2008 with the passage of the "Omnibus Domestic Partnership Equality Amendment Act of 2008." (see my earlier blog post: http://activerain.com/blogsview/547297/district-of-columbia-expands-right-of-benefits-of-domestic-partnerships)

Beginning July 7, 2009, Washington, DC will recognize marriages performed outside Washington, DC between same-sex couples. The "Jury and Marriage Amendment Act of 2009" updates DC law as follows:

“Sec. 1287a.  Recognition of Marriages from Other Jurisdictions. - A marriage legally entered into in another jurisdiction between 2 persons of the same sex that is recognized as valid in that jurisdiction, that is not expressly prohibited by sections 1283 through section 1286, and has not been deemed illegal under section 1287, shall be recognized as a marriage in the District.”

A quick conversation with clients about their options on holding title is prudent. As soon as settlement is scheduled, referring the couple to a settlement attorney to answer questions regarding holding title gives the couple time to discuss the options themselves and saves them from having to make an instant decision at the settlement table. 

The settlement attorney, too, may need some time to become current on changes in DC law as it affects domestic partners and same-sex married couples. Many settlement attorneys will have to check with their title insurance underwriters to ensure that they have prepared the deed properly and that the title insurance couple will insure the deed.

The sooner this discussion is started, the better.

Historically, cooperatives have been exempt from paying a transfer and a recordation tax upon sale.

Beginning October 1, 2009, the transfer of shares in a cooperative will be taxed by the District of Columbia. The current tax rate is 1.45% of the sales price for cooperatives selling for $400,000 or more. If the price is under $400,000, the tax is 1.1% of the sales price.

Even if you're not planning to sell your unit, you could be subject to the transfer and recordation tax if you plan to add someone to your shares after September 30, 2009. 

Adding someone to your shares is not subject to the transfer and recordation taxes if your the relationship is husband and wife, parent and child, grandparent and grandchild, or domestic partners, as defined in 32-701(3) and there is no consideration (i.e., money or something of value) exchanged.

If you're considering adding someone to your shares and your relationship is outside one of those listed, acting before October could save you a significant amount of transfer and recordation taxes.

There could be income tax or capital gains tax implications, and it would be prudent to consult with your tax advisor.

Expanded Tax Break Available for 2009 First-Time Homebuyers    
       
IR-2009-14, Feb. 25, 2009

WASHINGTON — The Internal Revenue Service announced today that taxpayers who qualify for the first-time homebuyer credit and purchase a home this year before Dec. 1 have a special option available for claiming the tax credit either on their 2008 tax returns due April 15 or on their 2009 tax returns next year.

Qualifying taxpayers who buy a home this year before Dec. 1 can get up to $8,000, or $4,000 for married filing separately.

“For first-time homebuyers this year, this special feature can put money in their pockets right now rather than waiting another year to claim the tax credit," said IRS Commissioner Doug Shulman. “This important change gives qualifying homebuyers cash they do not have to pay back.”

The IRS has posted a revised version of Form 5405, First-Time Homebuyer Credit, on IRS.gov. The revised form incorporates provisions from the American Recovery and Reinvestment Act of 2009. The instructions to the revised Form 5405 provide additional information on who can and cannot claim the credit, income limitations and repayment of the credit.

This year, qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase.

The IRS also alerted taxpayers that the new law does not affect people who purchased a home after April 8, 2008, and on or before Dec. 31, 2008. For these taxpayers who are claiming the credit on their 2008 tax returns, the maximum credit remains 10 percent of the purchase price, up to $7,500, or $3,750 for married individuals filing separately. In addition, the credit for these 2008 purchases must be repaid in 15 equal installments over 15 years, beginning with the 2010 tax year.

I. INCREASE IN REAL PROPERTY TAX RATE ON CLASS 3 PROPERTY

Effective October 1, 2008, D.C. raised the property tax rate on unoccupied buildings and vacant lots (Class 3 property) to $10/$100 of assessed value. This measure is intended to raise the bar in the quest to abate nuisance property in the District of Columbia.

The first billing at the new rate will be reflected on the tax bills payable in March of 2009. Real property tax prorations should be calculated on the basis of the increased tax rate. The OTR real property tax website will tell you the tax class of the property you are closing: https://www.taxpayerservicecenter.com/RP_Search.jsp?search_type=Assessment

The construction of the new Waterfront Station in Southwest DC is continuing. The developer recently secured $250 million for construction financing

The first two new buildings are now above grade and noticeable as one passes by. The new Waterfront Station will reconnect 4th Street SW which was closed when the Waterside Mall was built decades ago. The path of the new 4th Street SW is visible in the photo below. 4th Street will curve around the existing Metrorail station.

More information about the new Waterfront Station is available on the developer's website: http://www.waterfrontdc.com/project/

The line for voting in Southwest DC at King Greenleaf Recreation Center was already 150 or moe people long when I arrived at 6:40am. The line moved very quickly once the polls opened at 7am. The crowd was excited and chatty.

if you're not certain where you should vote, check maps.google.com/vote.

The line extended from the Rec Center (201 North Street Southwest, Washington, DC 20024)   almost to M Street SW when we left at 8am.

Polls in the District of Columbia are open until 8pm today.

For DC residents with yards, here is an offer worth taking up: The District's Department of the Environment (DDOE) and Casey Trees are offering a $50 rebate to DC residents who plant trees in their yards. 

“Planting a tree is the original way to green your home, and the benefits last for decades,” said DDOE Director George Hawkins. “With the right tree and the right care, you can give yourself lower energy costs. You can also give the entire neighborhood more beauty and better air quality, and keep stormwater out of our rivers and streams.”

There is a limit of one rebate per residential property and the rebate covers all tree species, except for some that are considered invasive or susceptible to pests. 

For more details, see the program rules and download a rebate coupon at this URL: http://www.caseytrees.org/programs/Rebate2008-2009.html

To instill some more confidence in the markets and to help stimulate the economy and boost the consumer confidence, FDIC increased the maximum amount to $250,000 per depositor through December 31, 2009.

• $250,000 for each individual
• $250,000 for retirement accounts
• $250,000 for joint accounts
• $250,000 may qualify for trust accounts per beneficiary

To get detailed information, please visit http://www.fdic.gov/

 

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Search for properties for sale in Southwest DC: http://www.swdcrealestate.com
Search the MLS for the DC region: http://search.myDCagent.com


Steve Dean
RE/MAX Allegiance 202-338-8900

220 7th Street SE
Washington, DC 20003
202-525-6499
www.myDCagent.com


Equal Housing Opportunity
All information deemed correct, but not guaranteed
Each RE/MAX office is independently owned & operated.

 

 

 

 

 

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Search for properties for sale in Southwest DC: http://www.swdcrealestate.com

Search the MLS for the DC region: http://search.myDCagent.com




Steve Dean

RE/MAX Allegiance 202-338-8900


220 7th Street SE

Washington, DC 20003

202-525-6499

www.myDCagent.com




Equal Housing Opportunity

All information deemed correct, but not guaranteed

Each RE/MAX office is independently owned & operated.

 

 

 

 

For more information, visit CNN  Money: http://money.cnn.com/2008/10/06/pf/money_steps.moneymag/index3.htm