Chris Lynch

Foot traffic provides a strong indication of future home sales. SentriLock, LLC. provides NAR Research with monthly data on the number of showings.

Year-over-year foot traffic levels have grown steadily in the area covered by Main Real Estate Information Systems, Inc. Foot traffic rose 27% in February of this year relative to February of last year

Improvements in employment and consumer confidence coupled with record low mortgage rates are helping to drive steady interest in housing.

For more information on this data and its use, see the economist’s commentary, “Foot Traffic – Getting a Step Ahead”.

By: Ken Fears, Manager, Regional Economics

http://economistsoutlook.blogs.realtor.org/2012/03/13/foot-traffic-maine/

By: Dennis Jacobe, Gallup/Economy

U.S. economic confidence improved sharply to -18 in the week ending March 11 from -25 the prior week -- the highest since the week ending Feb. 13, 2011, when it was also -18. The -18 readings this year and last are the highest weekly levels Gallup has recorded since it started tracking confidence daily in January 2008.

Read more: http://www.gallup.com/poll/153209/Economic-Confidence-Matches-Best-Four-Years.aspx#ixzz1p1371xiq

FOR IMMEDIATE RELEASE CONTACT:

Christopher Lynch

207-780-8900

clynch@legacysir.com

LEGACY PROPERTIES SOTHEBY’S INTERNATIONAL REALTY PARTICPATES IN REGIONAL LUXURY REAL ESTATE CONFERENCE

MAINE (March 9, 2012) – Legacy Properties Sotheby’s International Realty, a luxury real estate firm with offices in Kennebunk, Portland, Brunswick and Camden, recently participated in a northeast regional conference for Sotheby’s International Realty^® affiliates located in Maine. Connecticut, Washington, D.C., Delaware, Massachusetts, New Hampshire, New Jersey, New York, Pennsylvania and Rhode Island.

The conference was held Feb.29 at the Sotheby’s Auction House in New York City and offered the nearly 130 attendees representing 40 firms the opportunity to network with their regional colleagues and hear brand updates from Mike Good, the brand’s chief executive officer; Philip White, president and chief operating officer; and Wendy Purvey, chief marketing officer.

Attendees also participated in a panel discussion on revenue growth and had the opportunity to hear from Henry Howard-Sneyd, Sotheby’s executive vice president, North America, who spoke about the auction process, and two experts on Sotheby’s Wine and Sotheby’s Diamonds.

“This is a valuable opportunity for the extraordinary firms we have in the northeast United States to come together to network and share best practices,” said Good. “Because of their close proximity to the Sotheby’s Auction House, they are in a unique position to experience that environment and all it has to offer first hand.”

Karen Schlegel, a Senior Vice President (Kennebunk Office) said “It offered the unique opportunity to network with our colleagues at the Sotheby’s Auction House, share ideas and learn more about our brand and what is in store for this year.” Chris Lynch, President of Legacy Properties Sotheby's International Realty added “This conference brought together the best and brightest minds in luxury real estate in the northeast,”

Legacy Properties Sotheby’s International Realty, which has four offices in Maine, offers exclusive Sotheby’s International Realty marketing, advertising and referral services designed to attract well-qualified buyers to the firm’s property listings. In addition, the firm and its clients benefit from an association with the Sotheby’s auction house, which promotes real estate referral opportunities with auction house clientele.

As a Sotheby’s International Realty affiliate, the firm also has the unique ability to refer its real estate clientele to the auction house for jewelry, art, unique furniture and collectible appraisal services. Property listings from Legacy Properties Sotheby’s International Realty also are marketed on the sothebysrealty.com global website, as well as on the firm’s local website, www.legacysir.com and on facebook at www.facebook.com/legacysir.

Legacy Properties Sotheby’s International Realty has 4 offices cover a wide range of Maine real estate. For additional information, please contact Chris Lynch, President, at 207-780-8900 or Karen Schlegel, Senior Vice President at 207-967-0934. The Sotheby’s International Realty network currently has nearly 12,000 sales associates located in approximately 590 offices in 44 countries and territories worldwide.

By Robert Freedman, Senior Editor, REALTOR® Magazine

Shortly after the federal government enacted sweeping healthcare reform earlier this year, there was considerable concern over a last-minute addition to the legislation: a 3.8 percent tax on investment income of upper-income households to help shore up Medicare. The tax takes effect in 2013.

Among the concerns expressed among consumers and business people, including real estate professionals, both then and today, is that the tax amounts to a transfer tax on real estate. Not true, NAR Director of Tax Policy Linda Goold says.

Here’s how the tax works. For individuals earning $200,000 a year or more and married couples earning $250,000 a year or more, certain investment income above these income levels might be subject to the 3.8 percent tax on a portion of that income. I say “might” because whether the tax applies or not depends on many factors having to do with the kind and amount of the investment income the household receives.

Investment income includes capital gains, dividends, interest payments, and, for those who own rental property, net rental income.

Importantly, the $250,000 (for individuals) and $500,000 (for married couples) capital gain exclusion on the sale of a principal residence remains in place. So, if you’re a married household that sold a house for a $500,000 gain (that’s gain, not sale proceeds), that amount remains excluded from your income calculation.

Let’s take a look at a married couple that has $325,000 in adjusted gross income (AGI), plus $525,000 in capital gains from the sale of their house.

This household would be considered upper-income by most standards. Not only is their income relatively high, at $325,000 (adjusted gross income, or AGI), but they’re receiving a $525,000 gain on their house sale. Presumably, they bought their house years ago and it’s appreciated over the years, so upon selling it, their gain is a relatively high $525,000.

For this household, only $25,000 in investment income would be subject to the 3.8 percent tax. That would amount to $950. That’s because it’s the $25,000 over the $500,000 capital gains exclusion that’s taxable.

Before they would know that, though, they would have to do a calculation that involves their adjusted gross income. They would have to add their capital gain of $25,000 to the amount of their income above the $250,000 income trigger (for married couples). Since their income is $325,000, they would add the $25,000 to $75,000 ($325,000 – $250,000), which would equal $100,000. Then they would compare the $25,000 to that $100,000, and apply the tax to the lesser of the two, which is the $25,000. Thus, $25,000 x 3.8% = $950.

So, you have a household that had income of $850,000 for the year, and its tax on investment equaled $950.

This is a simplification. Other tax issues could come into play. But it shows that the tax applies to just a portion of investment income for certain upper-income households and that the capital gains exclusion remains untouched.

Nobody likes taxes, and this tax was inserted into the legislation at the 11th hour as a “pay-for,” that is, as a revenue generator to help offset some of the costs of the reform. It’s expected to generate $325 billion over eight years.

NAR has prepared a brochure that looks at how the tax might apply under eight income scenarios: 1) sale of principal residence (which we just looked at), 2) sale of a non-real estate asset, 3) gain, interest, and dividend from securities, 4) real estate investment income, 5) rental income as sole source of earnings, 6) sale of second home with no rental use, 7) sale of inherited investment property, and 8. purchase and sale of investment property.

You can download the brochure for free. It’s written in plain language and I think you’ll find it organized efficiently, so you can see at a glance the potential considerations for the different scenarios. Of course, it’s just guidance: each household’s situation will be different, so you would want to suggest to your customers and clients that they consult with a tax advisor to make sure the tax is applied correctly in their case.

You can also get a good sense of how the tax works in the video above, in which Goold walks through a sample income scenario.

Legacy Properties Sotheby's International Realty is proud to announce that Sotheby’s International Realty has won Franchise Business Review’s Best in Category for Real Estate Franchisee Satisfaction award for the fifth year in a row.

The Best in Category award measures franchisee satisfaction with their franchisors and is part of the 7th annual Franchisee Satisfaction Awards presented by Franchise Business Review. In addition to its real estate ranking, the brand also came in second overall among the Top 50 Large Franchise Systems, which is a ranking of all franchise systems with more than 200 units across all categories.

“We are very proud to earn this honor for the fifth year in a row,” said Michael R. Good, chief executive officer, Sotheby’s International Realty Affiliates LLC. “We are dedicated to providing the best service we can to our valued network members, whom we hand select to affiliate with our brand. This recognition is a testament to the value we provide them in making their businesses more prosperous and successful.”

Franchise Business Review surveyed more than 22,000 franchisees from more than 300 leading systems for the 7th annual Franchisee Satisfaction Awards. Franchises were evaluated in five areas: training and support, franchise system, franchisor/franchisee relations, financial opportunity and overall satisfaction. Additionally, demographic and lifestyle questions gave a 360-degree view of the franchise ownership experience. Franchise Business Review is a national franchise market research firm that performs independent surveys of franchisee satisfaction and franchise buyer experiences. For a complete list of this year’s award winners, go to www.FBR50.com.

“What impresses me most about the Sotheby’s International Realty brand is that they really ‘get’ the value of their franchisee satisfaction data,” said Franchise Business Review president Michelle Rowan. “Despite being at the top of our awards list every year, they take the time to thoroughly digest their data and use it to improve their franchisee satisfaction year after year.

The Sotheby’s International Realty network currently has nearly 12,000 sales associates located in approximately 590 offices in 44 countries and territories worldwide. Barcelona Sotheby’s International Realty listings will be marketed on the sothebysrealty.com global website. In addition to the referral opportunities and widened exposure generated from this source, the firm’s brokers and clients will benefit from an association with the Sotheby’s auction house and worldwide Sotheby’s International Realty marketing programs.

Legacy Properties Sotheby's International Realty - http://www.legacysir.com

As the leader in luxury Maine Real Estate, Legacy Properties Sotheby's International Realty offers an unmatched blend of local expertise, world-class home marketing power and property exposure. Our 50 plus licensed real estate agents specialize in Maine Coastal Real Estate, Maine Waterfront Property, Maine Oceanfront Real Estate and other beautiful homes for sale.

Portland Maine Real Estate

Two City Center
Portland, Maine 04101
Telephone 207-780-8900
E-mail info@legacysir.com
Portland Office Real Estate Listings
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Kennebunk Maine Real Estate

150 Port Road
Kennebunk, Maine 04043
Telephone 207-967-0934
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Brunswick Maine Real Estate

141 Maine Street
Brunswick, Maine 04011
Telephone 207-729-2820
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Camden Maine Real Estate

46 Bayview Street
Camden, Maine 04843
Telephone 207-230-1003
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