The Escrow AdvisorMay 2017 | Issue Eighty Seven

What to Watch for thisMonth:

• Role of Your Escrow Officer

• Your Escrow and You• Power of Attorney• Understanding FIRPTA/

Qualified Substitute in Lieu of FIRPTA

AND MORE...

Tax reform, including housing-related tax reform, still has a long road ahead despite Treasury Secretary Steven Mnuchin and White House Chief Eco-nomic Advisor Gary Cohn revealing the Trump administration’s tax plan on Wednesday.

A Goldman Sachs economic research report by Alec Phillips on the newly released tax plans answered some key questions regarding Wednesday’s an-nouncement, including, “What did the White House announce?”

“They provided little detail, and what detail was provided was mostly similar to President Trump’s campaign propos-al. That said, there were some policy changes compared with the campaign proposal that provide clues about the direction the White House might take the debate. In addition, the Administra-tion’s thinking on the fiscal impact of the tax cut is at least slightly clearer.”

This announcement is simply the be-ginning of tax reform; any plan will require the eventual approval of Con-gress.

From here, the report stated it ex-pects the President’s Budget, which the White House is predicted to sub-

Continued on Page Four

THE LONG JOURNEY AHEAD FOR TAX REFORM AND WHAT IT MEANS FOR HOUSING

As a seller, you have a lot more control in pleasing buyers than you think. If you start the selling process by learning what buyers really want, you can prepare your home to come as close to their dreams as possible.

Here are the three biggest turn-ons for homebuyers and what you can do to please buyers.

Curb Appeal: You only get one chance to make a first impression. Your home should sell to the buyer from the curb. That’s how important curb appeal is. Your buyer should be so impressed, so charmed, so delighted that they want to leap out of the car and run inside.

How do you create curb appeal? Show at-tention to detail. Your home has to be pret-tier, cleaner and in better condition than its neighbors.

Start with sweeping the drive, walkway, and porch or entry of dirt and debris. Get rid of leggy bushes, wilted flowers and broken tree limbs. Plant fresh flowers in the front garden or in containers at the entry.

Power-wash the exterior and hand-wash the windows. Touch up paint around the win-dows, if needed. Paint the front door a fresh, modern color. Replace the door hardware and porch sconces.

Space: The number one reason why people buy homes is to have more room. Whether they’re moving from an apartment or mov-ing up from the home they have, they want to have plenty of space to do the things they enjoy.

If you have a large home, you’re golden, but that doesn’t mean you’ve got it made. You can ruin a buyer’s first impression with too much clutter, so make sure to keep your home picked up so your buyer can see your home’s features clearly and easily.

What if you don’t have a lot of space? Plan to

do some storing and staging. Rent a storage unit and put away all out of season clothes, toys, and home decorations and accesso-ries. Clean off all tables and countertops so you have only the minimum of things your need to operate your home. Empty closets of anything that is “stored” and move it to the storage unit. The small expense you’ll pay in storage fees you’ll more than make back from your buyer’s offer.

Updates: There’s a reason why first-time buyers and singles tend to buy older homes - they’re more affordable than buying new. So unless your buyer is a building contractor, chances are they want a home that’s as up-dated as possible.

You may not be interested in putting in a new kitchen in order to sell your home, but you can do a few things to make buyers happy. Replace the most dated features - counter-tops, cabinet pulls, or appliances.

Bathrooms are so personal that they can easily turn buyers off. Invest in new towels, bathmats and a shower curtain. Throw out slimey soaps and limp ragged bath sponges. Replace with liquid shower and bath prod-ucts. You can take all the new stuff with you to the next home.

Painting is expected by buyers, but don’t re-paint the same colors that you chose 10 years ago. Pick an updated neutral like a warm grey instead of beige. Be sure to choose a col-or that will complement the architecture and flooring in your home.

Keep in mind that the typical home pur-chased in 2013 was 1,860 square feet and built in 1996, so homebuyers aren’t expect-ing your home to be a mansion, nor do they expect it to be new, but they do expect to see pride of ownership. The more tweaks, up-dates and repairs that you perform, the more confident your buyers will be that they’re choosing the right home.

www.realtytimes.com

TIPS FOR YOUR SELLERS: THREE BIG THINGS HOMEBUYERS ARE ON THE LOOK-OUT FOR

The Escrow Advisor • Page Two May 2017 • Issue Eighty Seven

San Diego County ActivitiesCalendar of Events May 2017

Contact your Account Executive to obtain a monthly Calendar of Events in San Diego County

4th – First Thursday at the Lafayette – Live music, local makers, creative workshops and food & drink specials. Free and all ages event. Lafayette Hotel, 2223 El Cajon Blvd. 6:30pm to 9:30pm. (http://www.lafayettehotelsd.com/)

5th – Cinco de Mayo Concert in the Park – Celebrate Cinco de Mayo with a fun, free family-friendly concert in Balboa Park. Spreckles Organ Pavilion, 1549 El Prado. 6pm. (https://spreckelsorgan.org/)

5th – Friday Night Liberty – Experience all the Arts District has to offer by attending the free Friday Night art walk. Liberty Station, 2640 Historic Decatur Road. 5pm to 9pm. (http://libertystation.com/EVENT/)

6th – Impalas Cinco de Mayo con Orgullo Festival & Car Show – Chicano Park, 1982 National Ave. 10am to 5pm. (http://komensandiego.org/event/impalas-cinco-de-mayo-con-orgullo-festival-car-show/)

6th – The Boardwalk Craft Market – Shop the Boardwalk Craft Market for unique, beautiful and useful items created by local artists in the Arts & Crafts tradition. Old Poway Park, 14134 Midland Road. 8am to 2pm. (http://poway.org/)

6th – Women’s Fair – The fair will highlight services and products that improve the lives of women and children, including health services, fitness, safety and fashion. San Elijo Town Square, 1277 San Elijo Road South. 10am to 2pm. (http://sehwc.weebly.com/)

6th – Color Fest – Multihued, roam the grounds interacting with fellow revelers. Dance to live music,, take yoga classes, participate in uplifting man-tras, and sample Indian cuisine. Oceanside Pier Amphitheater, 200 North Strand. (http://www.festivalofcolorsusa.com/festival-of-colors/festival-col-ors-oceanside-ca/)

6th-7th – Fiesta Old Town Cinco de Mayo – Celebrating 34 years of fun, the Fiesta will transform the historic Old Town area into the largest Cinco de Mayo celebration north of the border. Non-stop music and live entertain-ment, lucha libre wrestling, free kids activities and much more! Old Town. Visit website for additional event information. (http://www.oldtownsandi-ego.org/)

7th – Spring Talmadge Art Show – A contemporary craft show with 80 artists. Crafts for sale include clothing, jewelry, pottery, mixed media, glass, paintings, cards, metal work, home and garden accessories and more. Liber-ty Station Conference Center, 2600 Laning Road. 11am to 2pm. (http://www.talmadgeartshow.com/)

9th – Estate Planning 101: Protect What Matters Most! – 4S Ranch Library, 10433 Reserve Dr. 1:30pm to 2:30pm. (https://odgerslawgroup.com/events/)

10th-13th - San Diego Surf Film Festival – 4 days, 25 international surf films. Misfit Gallery, 565 Pearl St. #100, La Jolla. (http://sdsurffilmfestival.com/)

12th-14th – Gator by the Bay Zydeco, Blues & Crawfish Festival – San Diego’s 16th Annual Gator by the Bay emphasizes the rollicking music, food and Mardi Gras spirit of Louisiana. Spanish Landing Park, North Harbor Drive. (http://www.gatorbythebay.com/)

13th – Chocolate Festival – Enjoy dozens of chocolate tastings, demonstra-tions, a chocolate fountain and more. San Diego Botanic Garden, 230 Quail

Gardens Drive, Encinitas. 9am to 4:30pm. (http://www.sdbgarden.org/chocolate.htm)

13th – 69th Annual OB Kite Festival – Kite building and decorating, prizes, professional kite fliers and amazing kite demonstrations and games, crafters, community organizations, gourmet food, carnival activities and live music. Dusty Rhodes Park, 2469 Sunset Cliffs Blvd. 10am to 4pm. (https://ocean-beachsandiego.com/attractions/annual-events/kiwanis-kite-festival)

13th – Tacotopia – A gathering of the 50 finest taco vendors from San Diego, LA and TJ where attendees ultimately decide who will win the Best Taco at Tacotopia 2017. Golden Hill Park, 2590 Golden Hill Dr. (http://www.sandiegoreaderevents.com/tacotopia-2017/)

13th-14th – Bonsai Show and Sale – The Flower Fields at Carlsbad Ranch, 5704 Paseo Del Norte, Carlsbad. 9am to 6pm. (http://www.theflowerfields.com/)

13th-14th – Balboa Park Pow Wow – A cultural event that showcases the heritage and traditions of American Indians. Balboa Park, 2145 Park Boule-vard. 10am to 6pm. (https://www.balboapark.org/plan/maps-directions)

14th – Mother’s Day Celebration at the Flower Fields – The Flower Fields at Carlsbad Ranch, 5704 Paseo Del Norte. 9am to 6pm. (http://www.theflowerfields.com/)

18th – Bike to Work Day 2017 – Join thousands of commuters throughout the San Diego region as we Go by Bike. Register and pick up a free T-shirt, snacks and encouragement at one of 100 pit stops throughout San Diego County. (http://icommutesd.com/bike/btwdregistrationform2017.aspx)

20th – 2017 San Diego Taco Fest – Waterfront Park, 1600 Pacific Highway. 11am to 10pm. (http://sdtacofest.com/)

20th – 21st Annual Festival of the Arts – A free art and live music festival. North Park San Diego. 11am to 10pm. (http://northparkmainstreet.com/events/festival-of-arts)

20th-21st – Pirate Days – Costume contests, cannon firings, weapon demonstrations, sword fights, scary stories, and a scavenger hunt for Pirate Treasure. Maritime Museum of San Diego, 1492 North Harbor Dr. (https://sdmaritime.org/visit/public-events/pirate-days/)

27th – American Heritage Car Show – Grape Day Park, 321 N. Broadway, Escondido. 9am to 3pm. (https://americanheritagecarshow.com/)

28th – Vista Strawberry Festival – Historic Downtown Vista, 127 Main Street. 6:45am to 6pm. (http://www.vistastrawberryfest.com/)

The Escrow Advisor • Page Three May 2017 • Issue Eighty Seven

SAN DIEGO COUNTY FARMERS’ MARKETS

MONDAY Escondido – Welk Village 3-7

TUESDAYCoronado 2:30-6Escondido 2:30-6Mira Mesa 2:30-6Otay Ranch 4-7Pacific Beach 2-7UCSD/La Jolla 10-2

WEDNESDAYCarlsbad 3-6 Encinitas 5-8

Ocean Beach 4-7People’s Produce 5-8Santee 3-6

THURSDAYCarmel Valley 2:30-7Chula Vista 3-6El Cajon 3-6Valley Center 3-7Linda Vista 3-7 North Park 3-7Oceanside CFM 9-1UTC 3-7Valley Center 2-6

FRIDAY Imperial Beach 12-6Kearny Mesa 11-1:30La Mesa 2-6Rancho Bernardo 9-1

SATURDAYCity Heights 9-1Del Mar 1-4Golden Hill 9:30-1:30Little Italy 8-2Pacific Beach 8-12Poway 8-1Ramona 9-1Rancho Penasquitos 10-1Scripps Ranch 9-1:30Vista 8-1

SUNDAYGaslamp District 9-1 Hillcrest 9-2Leucadia 10-2La Jolla 9-1North San Diego 10:30-3:30 Rancho Santa Fe 9:30-2 Solana Beach 1-5

Dates and times are subject to change, for more information visit www.sdfarmbureau.org

San Diego Padreshome Schedule

TUESday, MAY 2ND: Padres vs ROCKIEs @ 7:10 pm

WEDNESday, MAY 3RD :Padres vs ROCKIEs @ 7:10 pm

THURSday, MAY 4th: Padres vs ROCKIEs @ 12:40 PM

FRIday, MAY 5th: Padres vs DODGERs @ 7:10 PM

SATURday, MAY 6th: Padres vs DODGERs @ 5:40 PM

SUNday, MAY 7th: Padres vs DODGERs @ 1:40 PM

MONday, MAY 8TH: Padres vs RANGERs @ 7:10 PM

TUESday, MAY 9TH: Padres vs RANGERs @ 12:40 PM

MONDay, MAY 15TH: Padres vs BREWERs @ 7:10 PM

TUESDAY, MAY 16TH: PADRES VS. BREWERS @ 7:10 PM

WEDNESDAY, MAY 17TH: PADRES VS. BREWERS @ 7:10 PM

THURSDAY, MAY 18TH: PADRES VS. BREWERS @ 12:40 PM

FRIDAY, MAY 19TH: PADRES VS. DIAMONDBACKS @ 7:10 PM

SATURDAY, MAY 20TH: PADRES VS. DIAMONDBACKS @ 7:10 PM

SUNDAY, MAY 21ST: PADRES VS. DIAMONDBACKS @ 12:40 PM

MONDAY, MAY 29TH: PADRES VS. CUBS @ 1:40 PM

TUESDAY, MAY 30TH: PADRES VS. CUBS @ 7:10 PM

WEDNESDAY, MAY 29TH: PADRES VS. CUBS @ 12:40 PM

The Escrow Advisor • Page Four May 2017 • Issue Eighty Seven

mit a budget proposal to Congress in mid-May, to provide extra details regarding tax legislation. “At a minimum, it is likely to in-clude more specifics regarding the potential effect on revenues and the deficit—as well as a general indication of the scale of its infrastructure plan,” the report stated.

The proposal, according to Phillips, appears to have changed in four areas compared with the campaign proposal. Here are those four areas:

1. A smaller tax cut for top income earners: The White House proposal would lower the top marginal tax rate for individuals from 39.6% to 35%, rather than the 33% proposed in the cam-paign.

2. A smaller tax cut for middle-income individuals: The pro-posal now calls for a standard deduction of $24k for couples rather than $30k. This is still roughly twice as much as the current stan-dard deduction and is identical to the House Republican proposal.

3. Repeal of the state and local tax deduction: The Trump campaign proposal was unclear about which, if any, individual tax deductions might be eliminated, but the current White House proposal is more specific; the deduction for state and local taxes would be eliminated, while the deductions for mortgage interest, charitable contributions, and retirement savings would be main-tained.

4. A territorial tax system for business income: The campaign proposal would have repealed the deferral of tax on income earned by foreign subsidiaries of US companies, and would have instead taxed those earnings at 15% minus foreign tax credits, amounting to what would effectively be a 15% minimum tax on foreign earn-ings. Instead, the revised White House plan would adopt a territo-rial tax system, which exempts foreign earnings from US tax.

So, there are basics of what is known so far about the plan. But even with scarce details, housing groups and associations gave their initial assessments of how the tax reform changes would im-pact the housing market and homebuyers.

“While the President’s tax proposal released today is well-inten-tioned, it’s a non-starter for homeowners and real estate profes-sionals who see the benefits of housing and real estate investment at work every day,” said National Association of Realtors President William Brown.

Brown explained that by doubling the standard deduction and re-pealing the state and local tax deduction, the plan would effective-

ly nullify the current tax benefits of owning a home for the vast majority of tax filers.

“The mortgage interest deduction and the state and local tax de-duction make homeownership more affordable, while 1031 like-kind exchanges help investors keep inventory on the market and money flowing to local communities,” said Brown.

“Those tax incentives are at risk in the tax plan released today. Cur-rent homeowners could very well see their home’s value plummet and their equity evaporate if tax reform nullifies or eliminates the tax incentives they depend upon, while prospective homebuyers will see that dream pushed further out of reach.”

Granger MacDonald, chairman of the National Association of Home Builders, stated that they commend President Trump for tackling tax reform and keeping the mortgage interest deduction as one of two individual deductions.

However, he said, “Doubling the standard deduction could severe-ly marginalize the mortgage interest deduction, which would re-duce housing demand and lead to lower home values.”

“On the corporate side, NAHB strongly supports the provision to lower the tax rate to 15% for pass-through entities. This would provide much-needed tax relief for America’s small businesses, which generate the lion’s share of job and economic growth,” said MacDonald. “Policymakers also need to take steps to ensure that lower corporate rates do not diminish the effectiveness of the Low Income Housing Tax Credit program, particularly given that the nation is experiencing an acute shortage of affordable housing.”

Speaking for credit unions, National Association of Federally-In-sured Credit Unions President and CEO Dan Berger reiterated the benefits to consumers and the economy of credit unions’ federal corporate income tax exemption as the Trump administration re-leased its key principles on tax reform.

“NAFCU supports efforts to achieve reforms that will grow the economy, and a vital part of that should be preservation of credit unions’ contributions to economic growth,” said Berger. “We will remain engaged with the administration and Congress throughout the tax reform debate to ensure credit unions are protected in this process.”

The fate of housing in terms of tax reform is still unknown, as these reactions give a first look into what it could be.

www.housingwire.com

THE LONG JOURNEY AHEAD FOR TAX REFORM AND WHAT IT MEANS FOR HOUSING (cont.)

VICKI FOREMAN | SD COUNTY ESCROWBRANCH MANAGER/ESCROW OFFICER

9988 HIBERT STREET, SUITE 150 | SAN DIEGO, CA 92131

P: 858.386.4538 | F: 858.224.1449 | VFOREMAN@SDCOUNTYESCROW.COM