THE MJ STEEN TEAM WOULD LIKE TO INTRODUCE OUR NEW TEAM MEMBER AT THE OREGON COAST: KATE MERRELL. KATE BRINGS OVER 13 YEARS OF EXPERIENCE AS A BROKER TO OUR TEAM.
On April 7, the IRS issued Notice 2020-23, extending a variety of deadlines, including 1031 deadlines. Although the Notice is confusing, because it is not written like the typical Disaster Relief Notices, this Notice extends any 45-day or 180-day deadline that occurs between April 1 and July 14, to July 15, 2020.
1031 Fund Security
A major role of a Qualified Intermediary is to safeguard taxpayer funds during a 1031 Exchange. Since Qualified Intermediaries are not regulated by the federal government or by most states, financial assurances, expertise, company strength and reputation are critical factors.
Real estate professionals are working to convince the IRS to change the start date from April 1st to January 20th so that the extensions apply to more taxpayers. Please note that this is different from the usual disaster extension that provides for an extra 120 days.
Here are two examples to illustrate the current extension.
Example 1: Exchange began April 1, 2020. 45th day is May 16, which would be extended to July 15, 2020. Taxpayer must still close on replacement property by Sept 28, which is the 180th day; because Sept 28 is after the last day of the disaster period (July 15).
Example 2: Exchange began Dec 31, 2019, 45th day is Feb 14, 2020. ID period is not extended because it is before April 1. The 180th day is June 28, which would be extended to July 15, 2020. As always, exchangers should speak with their tax advisors to determine if they are eligible for an extension.
This remains a fluid situation and should be confirmed with the IRS.
Right now is more important than ever to support local businesses. Whether it’s purchasing a book through your neighborhood bookshop, coffee from the local cafe, take out from your favorite restaurant, or a special treat from the apothecary. You will make an impact in our local economy. We want to see as many of the unique small businesses that make living in our neighborhoods so special, join us on the other side.
As a full time real estate principal broker for 28 years, I have been through many market changes. The downturn of 1987, the shock of 9/11, the housing boom of the 2000’s, the Economic Recession of 2008, as well as the fast paced market of the last five years. Home ownership is an essential need for most people. I don’t have a crystal ball but I do know that this “particular moment in time” will pass and we will be back to our normal, healthy real estate market in the Portland area soon.
Take care.
Mj
We all have wonderful spaces to enjoy while we stay in place. During this time think of those who are without homes. Please remember to donate money, food or simple lunches to the homeless through your favorite food bank or charity.
Blanchet House
Oregon Food Bank
Rose Haven
St. Vincent De Paul
Catholic Charities
PPS
We wanted to share this quote with you regarding the real estate market:
“What we know is that real estate is one of three of mankind’s basic needs: clothing, food and shelter. People need a place to live. When the quarantine is over and people feel safe, jobs are restored, our sense is that the marketplace will pick up where it left off based on the simple economic principle of supply and demand.” - Peter Parnagg
We are continuing to work remotely on upcoming listings that will come on the market in May, June and July. If you are interested in listing your home please give us a call. Take care and stay well.
Macey & MJ
Gloster’s guilt-free outdoor furniture and decor effortlessly bring sustainability and style to the backyard.
A classical solution to portable outdoor lighting by Sebastian Herkner. The collection exists in two forms, one with cast metals handles for carrying ease, another with a permanent metal stand to make a lasting impression. Solar & mains power rechargeable LED light unit.
The latticework of the Ambient Mesh woven shades paints a subtle pattern in the dark, breaking up straight lines and creating a whole new set of outdoor decorations. Available as a free-standing, table size lantern or a more imposing tall standard lamp.
A rustic basket to keep small items safe and at-hand. Melange construction in all-weather 100% acrylic yarns. Includes a hand-stitched leather handle.
The Gloster Bird Feeder is designed to be highly functional for our feathered friends with the sophistication of the Gloster design philosophy. Insert included for ground mounting of the pole.
Woven in Rhode Island using Sunbrella yarns, the all-weather rugs offer soft texture and longevity.
Gloster Dune Meteor Chaise Right
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Gloster Fern Meteor Lounge Chair High Back
Sebastian Herkner’s imposing, yet cozy Fern Lounge Chair offers two back height options.
Gloster Grid Meteor Outdoor Lounger End Table Unit
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he humble table re-imagined. The X-Frame pairs striking plantation teak with smoked tempered glass.
This estate is a lush oasis with secret gardens that engage, exhilarate and inspire. The property offers clarity and balance, while the design of the residence provides a connection between nature and personal style. Casual living and lavish entertaining alike are embraced within this versatile property. Close to the city, NW and OHSU. (ADDL. 3 BD/1.5 BA TREEHOUSE-2,560 SF, PAVILION-672 SF, AND TEA HOUSE).
Aaron Norris, Contributor to Forbes
The Consumer Electronic Show of 2020 (CES) was another amazing display featuring over 170,000 guests crammed into Las Vegas to explore what’s next in the decade ahead.
When it comes to smart homes, there was almost no category unturned. Appliances, toilets, mirrors, garage openers, door locks, shower heads and security systems were all once again on display. All were connected, many could be voice activated, and it’s getting easier to see a future where fully integrated smart homes connect devices that work together to create a seamless and truly helpful holistic user experience.
One of the welcome trends at CES 2020 was a discussion about security and privacy. In a session titled, “2020 Trends to Watch Into the Digital Age,” Steve Koenig, vice president of research at CTA, suggested the Internet of Things (IoT) needed a rebrand to the “Intelligence of Things” for the decade ahead.
Koenig explained consumers have been able to connect devices to the internet for years. The issue now becomes how to smartly integrate all these devices in a secure way that makes consumers comfortable sharing the data required to make smart homes truly smart.
The concept of the “nudge” is getting consumers comfortable with the technology they engage with because the benefits they receive by feeding it personal data. The beneficial nudge may come in unique ways from real estate industries outside of the technology space.
Builders, real estate agents key proponents
Builders are front and center in smart home technology conversations. Last year at the International Builder Show, the National Association of Home Builders (NAHB) released data showing that while consumers expect new homes to feature the best in suitability and efficiency, they don’t want to pay extra for it.
Listening To Today’s Students
From solar panels to energy efficient appliances, builders must find the balance on what’s included and what they’ll pass on to the consumer. This varies wildly depending on the price point. But, no doubt, they will be on the forefront of what consumers want and, in many cases, what is possible with smart technology in the home. Instead of a hodgepodge system that a family creates in piecemeal after buying a home, new homes will start with an integrated ecosystem in mind for a better buyer experience.
Jacob Atalla, vice president of Innovation & Sustainability at KB Homes, also points out the nexus between smart homes and sustainability. Devices like smart thermostats and lighting controls save energy and the consumer money. If green is important to buyers, maybe they’ll be willing to shell out a little more cash on new homes knowing they are going to save money over their lifetime of ownership.
This is where the appraisal industry will come into play in the years ahead. Ken Chitester, director of Communications for the Appraisal Institute, shared the Residential Green and Energy Efficient Addendum created by the Appraisal Institute. The form attempts to document the energy efficient measures taken on a home and assists a consumer in understanding the money that might be saved. Documenting the return on investment on efficiency will likely help consumers start thinking less about just the purchase price of a home and more about long-term costs of homeownership.
Realtors will also be a great partner in spreading the word on smart technology. One of the most interesting partnerships in 2019 was TurnKey between Amazon and Realogy. The Realogy Franchise Group has over 16,000 offices and approximately 300,000 independent sales associates. The TurnKey program gives a buyer up to $5,000 of professionally installed Amazon smart technology which should go a long way to assist in adoption and better consumer experience. It will be interesting to review the program later this year to see if both brands got the results they expected.
Smart tech in rental housing
Smart technology would be wise to not leave out renters. Millennials have stayed renters far longer than previous generations and opportunity abounds for technology companies to use landlords and property managers as a gateway for smart home technology.
The try-before-you-buy approach can be managed much more efficiently at scale in apartment buildings so tenants get a chance to see curated smart tech that everyone is also using around them. Smart locks, appliances, temperature controls, lights switches and smoke detectors are natural fits.
Outside of apartment owners, Main Street and Wall Street single-family investors alike might also embrace a smart home if it helps save money during their ownership or makes their properties stand out to potential tenants.
Builders and property managers will likely focus on infrastructure smart technology — the stuff behind the scenes that doesn’t get them in the ecosystem wars deciding for the consumer if it’s an Amazon or Google home.
Alarm.com Smart Water Valve + Meter with view of alert sent to user if a leak is detected.
Incentives will be key
Smart devices can be costly and the insurance and utility industries will help by offering incentives, rebates and cost savings through the lens of safety, sustainability and efficiency.
Leak control devices are an excellent example of newer technology in the smart home space offered by brands like Alarm.com, Moen and Belkin. The devices sit at the water main and can detect leaks. It can then shut off water and alert the owner to the leak and where it resides.
Belkin’s Phyn brand and Alarm.com also have enterprise level platforms built for landlords to control leak detection throughout a project or portfolio. Property managers of all sizes will tell you it’s not just the repairs that are costly but also the time and the energy involved in fixing leak issues. Stopping it before it starts is a huge improvement.
That’s why the insurance world will step in to save owners when they own leak detection devices. Knowing that water issues can be stopped before they start is one of the reasons they may be willing to offer some sizeable discounts on premiums.
Mariel Devesa, global head of business development for Phyn, says she’s seen some insurance companies give 5-10% discounts on premiums for leak-detection technology. Expect those to become more prevalent as these systems prove to be viable and valuable.
Phyn enterprise dashboard to monitor the status of multiple devices and properties.
PHYN.
If insurance is willing to provide a discount, expect water utility companies to step up and offer rebates. A leaking pipe can waste thousands of gallons of water daily and a consumer may not even know until a bill comes a month later. Smart home devices able to prove their water and power savings ability should see more rebates in the coming years, especially in states struggling with droughts.
Watching Progress in 2020
The late 2019 announcement that Google, Apple and Amazon are now working with the Zigbee Alliance to help create standards for an easier and safer Internet of Things may be the assurance the real estate sector needs to go all-in on smart home technology.
2649 SW Talbot Road | $1,295,000 | Remodel by Daniel House
Enjoy a lifestyle defined by what is graceful, stylish and smart in this meticulously redone jewel overlooking the city and mountains. This classic 1915 residence is located in the heart of Portland Heights and enjoys gleaming hardwoods, moldings, three fireplaces, period built-ins, a family room and a redone marble kitchen and bathrooms. The exquisite details of the home are enhanced by the private courtyard, veranda, flat lawn and gardens. Close to trails, high tech, downtown, NW 23rd & OHSU. For more information click here.
By Esme Stern, Domino
GRAPHIC BY MADELINE MONTOYA
Appliances, finishes, and hardware are often the last pieces of the design puzzle. Style doesn’t matter as long as the fridge keeps the food cold, right? Not so fast. This season we’re putting the fun back in functional and giving the once-minor players the glow-up they deserve. Punchy colors in these unexpected places (think: faucets, cabinet doors, even light switches) add depth and personality to a room without going overboard. We’ve rounded up our favorite vibrant finishes to help you embrace the rainbow in your kitchen, bathroom, and beyond. Florals for spring may not be groundbreaking, but a canary yellow faucet sure is. LS 990 Double Wall Switch & Frame Les Couleurs by JUNG, The Conran Shop (£45.00)£45.00
Switch it up with shades from Le Corbusier’s famous color palette. These bold, shapely additions light up a room before they’re even turned on. Match Cabinet System by Muller Van Severen, Reform Muller Van Severen brings its Technicolor touch to IKEA-compatible cabinet systems in the same durable material as its cutting boards. Luxembourg and Sidney Wash Basin, Huguet Terrazzo perfection in the form of a sink crafted in sunny Majorca with natural pigments. Up Down Sconce, In Common With ($375)$375.00
Whether you’re upside down or right-side up, you can’t go wrong with this two-for-one special: One bulb acts as a task light while the other casts an ambient glow. Customized True 42 Refrigerator, True Residential With a stainless steel interior, a control panel to adjust light and temperature, and multiple storage options (drawers, baskets, and bins), this refrigerator will transform your kitchen from amateur to Top Chef–worthy. Bathroom Faucet, Vola ($848)$848 Vola lets you choose from a myriad of hues for a personalized faucet to match your wildest dreams. Pill Basin, Nood Co ($990)$990.00 Installing a statement sink like this smooth, rounded concrete one is the step in your self-care routine you never knew you needed. Handles by Hewi, Häfele
Take your cabinets from so-so to spectacular with playful pulls in your choice of 16 colors, from ruby red to green apple.