More on Taliesin West, by Carrie Benuska

More on Taliesin West, by Carrie BenuskaSan Marino Real Estate

The San Marino Real Estate Report, as seen weekly in the San Marino Tribune

I already wrote an article about my trip to Frank Lloyd Wright’s winter retreat in Scottsdale, Arizona, but I wanted to treat your eyes to additional views of this amazing property.  The terrain surrounding the home is rugged and rocky, and he intentionally designed the structure to fit into its surroundings.  It is low and flat and made of materials from the surrounding land, but it is anything but plain.  It is truly extraordinary and speaks to Wright’s brilliance.  Enjoy!

A view of the slanted roof structure

A view of the slanted roof structure

An example of the use of local rock

An example of the use of local rock

Love the use of orange doors!

Love the use of orange doors!

There are artistic elements everywhere - a surprise around every corner

There are artistic elements everywhere – a surprise around every corner

Another amazing sculpture

Another amazing sculpture

Truly Splendid!

Truly Splendid!

I would highly recommend a trip to Taliesin West.  Tours run on a regular basis and there is a great bookstore.  This is a “must see” for any architecture buffs.

Carrie BenuskaTeles Properties, 210 S. Orange Grove Blvd., Pasadena

Affects of Tax Law Changes on Sellers of Residential Real Estate, by Carrie Benuska

Affects of Tax Law Changes on Sellers of Residential Real Estate, by Carrie BenuskaSan Marino Real Estate

The San Marino Real Estate Report, as seen weekly in the San Marino Tribune

Affects of Tax Law Changes on Sellers of Residential Real Estate, by Carrie Benuska, San Marino Real Estate

Benjamin Franklin wisely wrote, “The only things certain in life are death and taxes.”  Things have not changed much since Ben’s day, because it only takes a quick glance at your year-end W-2 to realize that a healthy percentage of your income is given to the government in the form of taxes.  The tax code is ever-changing, and it is difficult for the average American to stay on top of all of the details.  With government efforts to avert the fiscal cliff, this year has brought particularly extensive changes and additions to the nation’s taxation rules.

As a Realtor, my eyes are particularly focused on changes to capital gains tax rates, which often affect my clients who are selling residential real estate.  Any individual or couple who has lived in their home for over two years and sell it for a nice profit, could be responsible to pay taxes based on the taxable gain.  This is an easy tax to forget about in the excitement of a sale and the purchase of a replacement property, but the reality of the burden will make itself known at tax time.

Homeowners should know about two items in the new tax code which could increase the taxes paid on a capital gain.

  1. The American Taxpayer Relief Act of 2012 (the “Act”) was signed into law on January 2, in an effort to avert the fiscal cliff.  The “Act” increases capital gains taxes for the nation’s highest earners ($400,000 – individual, $450,000 – joint) from 15% to 20%.
  2. As of January 1, a new “Medicare surtax,” is in effect, which is intended to help fund President Obama’s health care and Medicare overhaul plans.  This additional 3.8% tax will be imposed on some income from interest, dividends, rents, and capital gains.  The tax is only in effect for individuals with an adjusted gross income of more than $200,000 or $250,000 for a couple filing jointly.

Understanding the way the new “Medicare surtax” is calculated is a bit complicated, so I am going to share an example provided by the National Association of Realtors in an article titled, “The 3.8% Tax:  Real Estate Scenarios and Examples.”  The tax will be charged on income earned from a variety of sources, but I am going to focus on a capital gain earned from the sale of a primary residence.

John and Mary sold their principal residence for a gain of $525,000.  They have $325,000 of adjusted gross income (before adding taxable gain)

The 3.8% tax is calculated based on the lesser of the following:

Taxable gain earned OR

Excess of adjusted gross income (AGI) over the $200,000 or $250,000 threshold

Adjusted gross income (AGI) before taxable gain $325,000
Gain on sale of residence $525,000
Capital gains exemption (married couple) -$500,000
Taxable gain $25,000
New AGI $350,000 (325,000 + 25,000)
Excess of AGI over $250,000 $100,000 (350,000 – 250,000)
Lesser amount $25,000 (Taxable gain)
Tax Due $950 (25,000 x .038)

Understanding the tax ramifications involved with the sale of a personal residence is of vital importance to all sellers.  Anyone contemplating a sale should seek the advice and counsel of a CPA, in order to prepare for the tax liability they can expect with their year-end tax return.  With the addition of the “Medicare surtax” and adjustments to the tax code from the “Act,” we all will need to get our arms around how these changes will affect our income after taxes.

Carrie BenuskaTeles Properties, 210 S. Orange Grove Blvd., Pasadena

A Desert Retreat, by Carrie Benuska

A Desert Retreat, by Carrie BenuskaSan Marino Real Estate

The San Marino Real Estate Report, as seen weekly in the San Marino Tribune

A Desert Retreat, by Carrie Benuska, San Marino Real Estate

A Desert Retreat, by Carrie Benuska, San Marino Real Estate

Although vacation is an ideal time to rest, relax, and refresh, I also love to spend time exploring housing and architecture in cities that I visit.  As a Realtor, it is great for me to grasp housing prices in other regions of the country, and I find comparing home values in different communities quite interesting.  Above and beyond a professional interest lies a deep love of great architecture and interior design.  I never tire of touring great homes, especially when they were designed by a famous architect.

My taste in architecture was formed at a young age.  I grew up in a Northern California neighborhood filled with interesting early 20th Century architectural homes of various styles.  The lots featured structured green lawns, beds filled with flowering plants, and ample mature trees.  The streets I roamed as a child had a classic and enduring quality.  Amplified by my experience living in the greater Pasadena area, I still love these types of neighborhoods.

As a youngster, my best friend lived several miles away from me in a tract of homes built by the architect, Joseph Eichler.  Her neighborhood was completely foreign to me, with simple homes of post-and-beam construction and low-maintenance gardens of rocks and drought-resistant plants.  Her home had many walls of glass, straight lines throughout, and an open floorplan.  I never did grow accustomed to her modern neighborhood, where every home looked almost identical.  It was clearly out of my comfort zone.

As my experience in touring homes has increased, I have learned to expand my architectural interests beyond my familiar genre.  For example, I have grown to appreciate the simplicity and clean lines of Mid-Century Modern architecture and simple landscape designs, featuring less grass and the use of desert plants.

On a recent trip down to Scottsdale, Arizona, I had the extreme pleasure of visiting “Taliesin West,” the winter retreat of the famed architect, Frank Lloyd Wright.  In the late 1930‘s, Wright purchased this large plot of land in the Arizona desert and built a compound of extraordinary brilliance.  The design, which incorporates eclectic elements and odd angles, was revolutionary for the time.

The structures were built utilizing desert materials, allowing the compound to blend into the surrounding environment.  Many of the buildings have a roof which consists of translucent panels of canvas, supported by a frame.  This system provides perfect filtered light and creates the feeling of being in a tent.  Although Wright incorporated an ingenious gutter system into the roof, his wife was frequently distraught at the leaking water that landed on her carpet.  The structures were designed to create a unity between the indoor and outdoor spaces.  Many of the buildings have walls that do not extend all the way to the ceiling, allowing fresh air to flow through the interior space.  There are also ample floor-to-ceiling windows and folding walls of glass which give gorgeous vistas of the outdoors.

Not only did the Wright family live at “Taliesin West” during the winter, but the compound also housed students from the “Frank Lloyd Wright School of Architecture.”  While charging fees in excess of the tuition for a Harvard education, Wright taught his pupils his theories of architecture and worked side-by-side with them on actual building designs. Wright also designed lighting and furniture for his creations.

“Taliesin West” has stunning views of greater Phoenix and is perfectly sited on the land to optimize natural lighting.  When Wright built his masterpiece, he was surrounded by nothing but desert.  At some point during his residence at Taliesin West, power lines were erected on wooden poles, disrupting his perfect view of the desert.  This angered him so much that he altered the design of the house to minimize the view in that direction.

My visit to “Taliesin West” has further widened my taste in architecture.  Although it is unconventional, eclectic, and even a bit odd, I appreciated the genius of the design and enjoyed every moment of the tour.  I was happy to return to my traditional neighborhood, but I gained an appreciation for a style so different from my own.

Carrie BenuskaTeles Properties, 210 S. Orange Grove Blvd., Pasadena

The Most Wonderful Time of the Year, by Carrie Benuska

The Most Wonderful Time of the Year, by Carrie BenuskaSan Marino Real Estate

The San Marino Real Estate Report, as seen weekly in the San Marino Tribune

The Most Wonderful Time of the Year, by Carrie Benuska, San Marino Real Estate

The Most Wonderful Time of the Year, by Carrie Benuska, San Marino Real Estate

I have to admit that the onset of Christmas has caught me a bit off-guard this year.  Maybe the fact that stores began to play Christmas music and display holiday decorations prior to Thanksgiving threw off my inner time clock.  Perhaps the fact that my college-aged son will not be coming home for Christmas due to a hectic football schedule has confused me.  Even more possible, maybe I am in a state of denial that Christmas marks the end of yet another year.  No matter what the cause, though, I am shocked that Christmas is less than a week away.

One regular signal that the holidays are upon us is a lessening in real estate activity.  Even though my manager swears that he has sold several homes on Christmas Day, these few weeks before and after Christmas are an unusual time to buy or sell a home.  Many people take vacation during this time of year, travel to see family, or just take it easy at home.  Buying and selling a home is a stressful process, so it seems incompatible to incorporate it into the beauty and busyness of the Christmas season.  Also many sellers fear that the holidays will limit the amount of buyers interested in their home, which in turn will lead to a lower sales price.

The irony of this reasoning is that I cannot imagine a better time to sell a home in San Marino.  Prices are rising, interest rates are still low, and demand is amazingly high.   In addition, San Marino is experiencing historically low levels of available homes for sale.  As of December 18, 2012, there were only 9 homes available for sale in the city of San Marino (3 new listings and 6 which have been on the market for at least 20 days).  For the past few years, active listings in San Marino have hovered around 40. The reduction from 40 listings down to 9 listings represents a 78% decline.  All of the elements combine to create an ideal environment for sellers.

San Marino is not the only community experiencing low levels of available homes for sale, this phenomena is evident across the country.  Even communities hit hard during the real estate crisis, like Las Vegas, have reduced inventory.  According to the blog Calculated Risk in an article titled “Las Vegas Real Estate:  Sales and Inventory Decreased in November,” “For single family homes without contingent offers, inventory is down sharply from a year ago (down 60.6% year-over-year).”  The blog also points out that the city has seen a reduction in distressed sales.

Reduced inventory and high buyer demand do not always point to increased prices – the ultimate mark of an improving market.  There are still communities across the country which have reduced inventory but are not yet seeing increases in median home prices.  As a shining light, Las Vegas, which experienced the largest decline in home prices, according to the Case-Shiller Composite-20 Home Price Index, is starting to show increases in median home prices.  As a standout in the greater Pasadena area, San Marino experienced an increase in the median home price and average price per square foot for sold homes during 2012.  The numbers show that San Marino real estate has rebounded to levels higher than seen prior to the national real estate crisis.  San Marino is on the cutting edge of the recovery process.

Whether I am ready or not, Christmas will occur as scheduled on Tuesday.  As I contemplate the blessings of the season, I am thankful to see real estate markets across the nation showing concrete signs of improvement.  Although I will be baking, wrapping, entertaining, and celebrating, my eye will stay upon San Marino real estate, eagerly monitoring our market conditions.

Carrie BenuskaTeles Properties, 210 S. Orange Grove Blvd., Pasadena

Neighborhood Update – Upper East Side, by Carrie Benuska

Neighborhood Update – Upper East Side, by Carrie BenuskaSan Marino Real Estate

The San Marino Real Estate Report, as seen weekly in the San Marino Tribune

Neighborhood Update – Upper East Side, by Carrie Benuska, San Marino Real Estate

The Upper East Side of San Marino stretches from Sierra Madre Boulevard to San Gabriel Boulevard and has its southern boundary at Huntington Drive.  With San Marino High School as its center, the Upper East Side is particularly convenient for reaching all  of the San Marino Schools.  Families with busy high school students particularly enjoy living close to the high school, which limits the amount of driving necessary during those hectic years.

The Upper East Side has homes of varying sizes and prices.  Impressive Ridgeway Road has many beautiful architectural homes.  Particularly fantastic are the properties along the northern edge, which feature wooded front yards and tons of privacy.  Charming Coniston Place, a two block street just to the west of the high school, is filled with adorable English Cottages, featuring steep roofs and leaded glass windows.  The eastern portion of the Upper East Side (including streets like Wetherby Road, Devonport Road and Shakespeare Drive), has a more contemporary architectural feeling, with a large amount of one-story Ranch and Traditional homes.

Winston Avenue is a highlight of the Upper East Side.  Flanked by huge Liquid Amber trees, which turn beautiful shades of yellow, orange and red in the fall, Winston Avenue is the location of many fantastic Mediterranean, Spanish, Colonial, and Monterey Colonial homes.  Owners of a majestic Winston Avenue Spanish, Tim and Wendy Greenleaf have raised their four children on this scenic San Marino street since the early 1990’s.

Longing for a strong community feel and excellent schools, the Greenleafs began a thorough search for a new home for their growing family in 1993.  After lots of open houses and a few failed offers, Tim and Wendy fell in love with their gorgeous 2-story Spanish home on Winston Avenue.  They were drawn to the thick walls, solid construction, beautiful architectural details, and ideal layout of this large family home.

Tim and Wendy never expected the warm greeting they received from their fellow Winston Avenue neighbors.  As the Greenleafs were getting settled into their new home, another local family happened to be moving away.  Wishing to honor both families, a neighbor planned a clever “black over bright” party.  All guests were told to wear a bright colored shirt, with something black over it.  The black signified the sadness they felt for the family who was leaving, and the bright stood for the happiness they felt in gaining the Greenleafs as new neighbors.  This sense of belonging and community was exactly what they had been looking for.

Wendy, an enormously dedicated and efficient volunteer for the San Marino Unified School District, has spent countless hours working for each of the school sites and the district as a whole.  Anyone who wants to get something done instantly thinks of Wendy.  The highlight of her volunteer career was her many years at Carver Elementary School, where she held most every job possible and is especially proud of her campus beautification efforts.  Wendy and Tim, both deeply devoted to supporting the San Marino school system, are so thankful that they landed in San Marino so many years ago.

With a continued shortage of available inventory (only 12 active listings as of 11/27/12), the entire city is starved for good listings.  Particularly extreme, the Upper East Side does not have one active listing as of 11/27/12.  This market condition is causing trouble for San Marino buyers, but is an ideal environment for sellers to maximize their proceeds.

There was quite a bit of activity in the Upper East Side during the third quarter of 2012, with 12 homes sold (tied with Lower Huntington for the most homes sold per neighborhood).  The sales prices went from a low of $928,888 to a high of $2,510,000, with a median sales price of $1,520,000 and an average price per square foot of $579.  The median sales price for the whole city during the third quarter of 2012 was $1,680,000 and the average price per square foot was $597.

Carrie BenuskaTeles Properties, 210 S. Orange Grove Blvd., Pasadena