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Meet The Team
Learn More About Our AgentsAbout Us
Our team is made up of experienced real estate agents and talented professionals in strategy, marketing, creative design, and technology. Henry Jaffe has over 20 years of experience in both the residential and commercial real estate industries. He offers a personal approach to the unique needs of individual clients. Each member of our team has a specific and vital role to play in selling your home or supporting you throughout the buying process.
OUR BLOGS
Delaware Property Assessments: Navigating the Changes
You have probably been hearing about the ongoing property assessment process here in Delaware and wondering how this might impact your primary residence, vacation home, or rental property. To help you navigate this, we’ve distilled some of the most important points of this process below to help provide clarity on the issues that may affect you the most: The reassessment process will not increase the annual, aggregate tax receipts to Sussex County (pursuant to state law, the county can increase its tax base by up to 15% through the reassessment process, however Sussex County has confirmed that the reassessment will be net neutral). Current assessed values for property tax purposes are retroactively assessed to 1974 values, and the reassessment will bring assessed values for tax purposes to 2023 amounts. This is a one-time adjustment, and it certainly could be another fifty years until it happens again. Do not be afraid - this is not the start of a parade of annual tax increases. The most an individual tax bill can increase or decrease as a result of the reassessment is forty percent (40%), and from what we have seen in other counties thus far, the maximum increase/decrease (40%) is very rare. The increases and decreases we are commonly seeing is +/- 10-15%. Again, this is a net neutral process so for every ten percent increase in tax bills there is a corresponding ten percent decrease in tax bills. Property owners will receive a ‘Notice of Tentative Property Reassessment Values’ from Tyler Technologies with your new proposed assessed value. If you disagree with this assessed value, contact Tyler Technologies immediately upon receipt to schedule a discussion/appeal. Do not wait for your annual tax bill to file a tax appeal with Sussex County. Tyler Technologies will sit down with you and go over every detail of the reassessment. The reassessment is now on track to be reflected in this upcoming tax assessment from Sussex County (period July 1, 2025 -June 30, 2026), which is billed late Summer 2025. For residents seeking to add or remove an owner from title to a property that does not otherwise qualify for a transfer tax exemption (i.e. conveyance from husband to wife or from parent to child), you will want to have this completed before the upcoming tax bills are issued so that you pay transfer taxes on the 1974 assessed value as opposed to the 2023 value. Noteworthy: Given the quite low property taxes in the State of Delaware, even a 40% increase on a $1,500 tax bill translates to an additional $600 annually — still rather nominal in comparison to other surrounding state taxes. Action Item #1:Should you feel that your recent assessment does not reflect your home's true market value, contact me for a Comparative Market Analysis as soon as possible. I welcome the opportunity to discuss your property's position in today's quickly evolving local real estate market. Action Item #2:In the event you find discrepancies in your personal property tax assessment, immediately call Tyler Technologies to discuss any issues or potential reporting errors. They are quite reasonable in taking homeowners’ views and information into account quickly. The contact at Tyler Technologies is: Mary M. NoldyTyler Project Supervisor302-854-5274sussexcountyDE@tylertech.com Action Item #3:We have been working closely with Tom Carney of Sussex Law Offices to interpret and better understand the assessment process. Tom has proven to be exceptionally knowledgeable on this topic and has provided valuable insights throughout our collaboration. If you feel that additional information or professional services are necessary, I would highly recommend reaching out to Tom for consultation. His expertise in this area could be a great resource to ensure all aspects of the process are thoroughly addressed. -Henry
Year-end real estate tax strategies
As we approach the end of the year, now is a prudent time to review your real estate investments and ensure you're taking full advantage of available tax strategies. Proper tax planning can reduce your taxable income and position you for continued growth in the coming year. Let's look at some of the top tax planning strategies for real estate homeowners and investors. Observing the landscape Monitoring taxation policy is essential to make the most informed financial decisions. Ongoing legislative and administrative changes will impact your real estate portfolio. For instance, the expiration of tax breaks or new tax laws will likely alter your tax liability and strategy. Working closely with your tax advisor is vital to stay aware of developments that will influence your plans for the year ahead. Economic considerations and evaluating your portfolio Tax planning is an essential element in managing and maximizing the value of your real estate portfolio. Consider factors including property appreciation rates, rental income, and market trends. When assessing your assets, adjusting your holdings based on market conditions could yield significant tax benefits. For example, selling underperforming assets before year-end to offset capital gains from stronger investments might be a prudent move. Leverage depreciation to reduce taxable income Real estate depreciation is a powerful tool for reducing taxable income. Even though your property might be appreciating, the IRS allows you to take annual deductions based on the perceived "wear and tear" of the property. For residential properties, the depreciation period is 27.5 years, while for commercial properties, it's 39 years. Coastal Delaware homeowners and investors can benefit by working with a tax professional to optimize their depreciation schedules and accelerate deductions where possible. Take advantage of bonus depreciation Although the Tax Cuts and Jobs Act allowed for 100% bonus depreciation on eligible property improvements, it's important to note that this benefit is now halfway phased out. As of 2024, bonus depreciation is down to 60% and will continue decreasing each year until it phases out entirely by 2027. If you're considering renovations or significant improvements, it's wise to act now to maximize this benefit before it diminishes further. Utilize 1031 exchanges to defer capital gains A 1031 exchange allows you to defer capital gains taxes when you sell a property and reinvest the proceeds into a similar property. This strategy is advantageous if you want to upgrade or diversify your portfolio. For example, you could swap a rental property in Rehoboth Beach for a commercial property in Bethany Beach without paying taxes on the appreciation. The key is to follow the IRS's strict guidelines, including completing the exchange within 180 days. Explore tax credits for energy efficiency and historic rehabilitation Investors and homeowners in Delaware may be eligible for tax credits by making energy-efficient upgrades to their properties. These credits can help offset the cost of installing solar panels, energy-efficient windows, and other sustainable improvements. Additionally, if you own a historic property, consider utilizing the Delaware Historic Preservation Tax Credit Program, which offers substantial credits for approved rehabilitation projects. This program can significantly reduce the overall cost of restoring and maintaining historic properties. Retain professional advisors to maximize your benefits Navigating these strategies requires a solid understanding of real estate and tax law. Consulting a real estate attorney, tax advisor, and financial planner can help ensure your investments are structured in a tax-efficient manner. I'm here to provide insights and connect you with local professionals who can help you optimize your year-end tax planning. With the right strategy, you can minimize tax liabilities and keep more of your hard-earned wealth. Contact me if you have any questions- Henry
Determining value
The average supply of inventory over the past five years is 2.7 months. Our current month's supply is 4.1 months. Still a seller's market by historical standards but this change is noteworthy. A balanced market is generally considered to have a supply of four to six months. As interest rates continue to decline, we anticipate a continued increase in active inventory along with a resurgence of buyer interest. When selling a home, setting the right price is among your most important decision. For many buyers, price is the most crucial consideration — next to location and amenities. Pricing is an art and science that requires careful thought, research, and data analytics. Let's look at a few tips and strategies to determine the ideal selling price that will help you achieve your objective: 1. Understanding what makes luxury homes unique Luxury homes, with their custom-built elegance and unique amenities, sometimes challenge standard pricing models. These properties are distinguished by their location, architectural significance, and the lifestyle they offer. From sprawling estates with panoramic views to architectural marvels with unique amenities, each luxury home tells a story that significantly influences its market value. These one-of-a-kind characteristics can present valuation challenges. 2. Observing market trends Staying attuned to the latest market trends and buyer preferences is essential to position your home to sell at a favorable price. Market research involves harnessing detailed market insights through local news, real estate articles and blogs, and regional and national listing services. When you’re aware of the dynamics at play, you can tailor a pricing strategy that resonates with today's luxury buyers on the coast. Realtors are a reliable and often complementary source of market insights. 3. The role of the CMA At the core of effective pricing strategies is the Comparative Market Analysis (CMA). This familiar tool allows you to compare similar properties in your neighborhood, considering factors such as size, condition, amenities, and recent sales data. A well-conducted CMA provides a solid foundation for pricing strategies, ensuring your home is competitively and fairly priced. 4. Appraisal insights Trained and seasoned local appraisers objectively analyze your home's value and the many contributing factors. A professional property valuation can be helpful however, you shouldn't necessarily count on home appraisals to provide an accurate valuation. Appraisals can be subjective and completed by appraisers that may not be experts in our market. An appraiser also might not have enough comparable homes to provide accurate pricing. In certain situations, appraisals can be helpful to ensure your property's price reflects its Fair Market Value, facilitating a smoother transaction and helping potential buyers secure financing without underwriting objections. 5. Leveraging professional input Collaborating with a real estate professional, you can navigate the pricing landscape with precision, care, and less stress and risk. Our goal is to set a price that reflects your home's intrinsic value and captures potential buyers' interest. Flexibility and adaptability are essential as we respond to buyer feedback and adjust the pricing strategy to ensure your home stands out and keeps momentum on the market. As your advisor in Coastal Delaware's luxury real estate market, I'm here to guide you through this process and ensure your home achieves its optimal sales value and goes under contract (and closes) in a time frame that matches your expectations. -Henry