REMI Advises Realtors to Educate Clients About a New Tax

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The Real Estate Marketing Insider announces its support of news in Greenville Online that a new tax to take effect in January won’t have the impact on real estate that many worry.

The Real Estate Marketing Insider expressed its support of news that a 3.8-percent tax scheduled for implementation in January wouldn’t have a large effect on the real estate market, and any harm to home sales is more likely to come from misconceptions about the tax rather than from the tax itself. REMI advised its readers that realtors and agents would play a large part in the effect on the market, and should be prepared to correctly advise present and prospective clients who might have inaccurate information about the tax.

The tax, which is scheduled to take effect in January, is a 3.8 percent tax on investment income that is part of President Obama’s Affordable Care Act. The tax will apply to investment income collected from individuals making over $200,000 and couples making over $250,000. Before homeowners see any extra taxes, they’ll have to pass that income threshold, as well as profit from a home sale by a margin of more than $500,000. Realistically, this will affect a very small portion of new home sales and homebuyers as most real estate clients, especially individual homebuyers, will see no change. For owners that profit from vacation homes, beachfront home rentals for instance, the application of the tax will be determined by whether the home has been rented out, the duration for which it was rented, and whether it is used solely for personal enjoyment.

However, information has floated around the internet that paints this tax as something completely different. Instead of calling it an investment tax and acknowledging the tax’s limitations, the internet rumor says it will apply to every home sold after January 1. This has the potential to scare prospective buyers away from home purchases, and could impact growth that the housing market has enjoyed so far.

The Real Estate Marketing Insider is concerned that this misconception could affect real estate firms around the country. However, REMI reminds realtors that they are the first line of defense against misinformation, and can help by setting the record straight with current and prospective clients.

Many prospective real estate buyers will look to real estate web marketing to inform themselves before they buy a home. This means that a large number of clients have probably seen the incorrect information circulating on the web, and it may be coloring their perception of the market. Realtors can educate their clients about this tax any number of ways: they can talk with current clients, distribute a short statement or pamphlet at the office or home visits, or include it in online and email marketing materials. The most important thing, REMI said, is that agents should make sure their clients aren’t worried about the tax or let it affect their decisions about home buying. A serious effort by realtors to correct the mistaken information will help ensure that this tax has little effect, and that the realty market continues to grow to its full potential.

The Real Estate Marketing Insider advised its readers to communicate to clients and prospective buyers the truth about an impending real estate tax. The tax, scheduled for January 1, will only affect a small percentage of homebuyers. However, rumors on the internet have wrongly stated that it will affect all home purchases in the new year. This misconception could be more harmful to the market than the tax itself.

About Real Estate Marketing Insider:
The Real Estate Marketing Insider is an online journal helping realtors optimize their business with news, tips, and analyses. REMI is based in La Jolla, CA.

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