DeLois Smith Adam WatkinsLinda Seifert Debra Pace Scott HolmesBrenda Blackwell Wendy Gay Dennis Baum

Elizabeth Liggett Josh BellewJennifer Beightol

Volume 15, Issue 9 / November 2013

4 Willow Bend Drive, Hattiesburg509 S. Main Street, Petal

601.545.3900 • 1.800.DELOIS.SDeLoisSmith.com • GoAllStarTeam.com

Andrew Bird

Jerron Carney

Dana Quesenberry Ben Williams

By Josh BellewFourteen years ago I moved to

Hattiesburg to attend The University of Southern Mississippi. When I moved here I had no intention of staying after I graduated. I was going to leave town right after I received my diploma and only visit during Homecoming. I didn’t have any negative feelings toward this town, I just could not see myself living here. I grew up on The Coast and viewed Hattiesburg as a small town with not much to offer in terms of jobs and what I considered to be good quality of life factors.

I remember my parents telling stories about how everyone questioned when they built Roses and University Mall (now known as Mid-Town Market) “out in the country”. When I was in high school I visited my brother for a few days to get a feeling for the college life. While visiting he took me to the new Turtle Creek Mall. Once again everyone was wondering why they built in so far out.

When I was enrolled at USM it was known as a suitcase college. Every weekend the students would head out of town as quickly as they could, only to return late Sunday night or early Monday morning. There was little for young adults to do, much less a place for many of them to work. It seemed that everyone wanted it to change, but nothing was being done to fix this.

Little did I know that there were plans in the works from various groups in the area.

During one of my internships I was asked to attend a networking meeting hosted by The Area Development Partnership. It was during this meeting that I learned I was not the only one that wished for change in the area. A spokesperson for The ADP spoke about plans to bring more jobs into the area and ways to keep young adults from moving away once they graduated. I thought it was a lofty goal and probably just a few talking points to make everybody feel better.

Luckily, I was wrong. Over the past 14 years I have seen this city transform leaps and bounds to a place that I am happy to call home.

What was once a dwindling downtown area with vacant buildings and empty lots is now beginning to thrive thanks to the efforts of the Historic Hattiesburg Downtown Association and several forward thinking business owners and developers. Thanks to these groups downtown Hattiesburg is bustling with numerous restaurants, shops, art events, and festivals that create exciting experiences for all involved.

The student life at USM has changed for the better. The improvements made to the campus since I graduated have been phenomenal. It is a joy to walk around the campus now. There are also more activities to keep students on campus and bring alumni back to campus. Does anyone remember USM tailgating 14 years ago? I sure do, and it was absolutely boring.

The medical community in Hattiesburg has blossomed to be one of the leading medical communities in the Southeast. For the population size of Hattiesburg, we are very fortunate to have access to the quality health care professionals that have decided to practice in our area. With the addition of the College of Osteopathic Medicine at William Carey University, Hattiesburg has become not only a place for quality doctors to practice, but also a place to train future doctors.

With the growth of Camp Shelby into one of the United States military’s major training facilities, Hattiesburg has seen a tremendous population growth. Because of the strong education, military, and medical community that we have it is no wonder that other business decided to locate in Hattiesburg, bringing more job opportunities and an excellent quality of life this town.

From looking at future development plans by both the local governments and private developers for each part of town, I am confident in knowing that the best is yet to come. Community progress can often seem slow, but when I think back on the past 14 years I have seen what can quickly be done by groups of people that have a deep passion and love for their community.Perhaps I’m getting older, but the more I see Hattiesburg change, the more I think we are heading in the right direction.

Fourteen years of change for the better

Autumn Greetings! Pretty fall mums with pumpkins scattered about, v-shaped formations of geese making their happy sounds on their journey south, cooler breezes and sunny days, black and gold and many other sporting events, Live-at-Five Downtown, pumpkin parties, and up-coming Heavenly Art Exhibition on November 14th at Sarah Gillespie Art Museum at William Carey – these are reflections of this Hub City Autumn of 2013. These reminders of our blessings help us to “look up” rather than looking around at the alarming events of recent weeks – both local and national. This week’s “ Make A Difference” campaign is a step in the right direction. Larry “Doc” Harrington, father of our dear friend Brigadier General Larry Harrington, led a most exemplarly life. Several generations of USM athletes and thousands of Army officers have been impacted by his model. His devotion to USM aided in bringing about an economic boost to the school equalling millions of dollars. Our goal with each Star Chat edition is to provide some local and national information impacting the real estate industry – especially focusing on our homes and residential real estate investments. This article focuses on the realities of ObamaCare, the recent government shut down, and other economic factors affecting the current real estate market.

• Housing affordability is at 156 which means good market conditions for buyers.

• Interest rates have been bouncing between 4.3% to 4.7% and are projected to be 5% by spring of 2014.

• Local residential MLS supply is 8.84 months.• Average days on the market for the area MLS is 95.4 days; average for

our team is currently 69 days.• Foreclosures Sales in our local MLS closed year-to-date are 299 of the

total 1237 single family houses sold or 24.1%. Nationwide the foreclosure accounted for only 14% of the September sales. This directly correlates with the fact that our area entered the recession period behind other parts of the US; and we are trailing coming out.

• Locally and nationally we are experiencing delays in processing loans

which is a direct result of the government shutdown.• USDA financing is frozen now and we do not know when it will be

funded. Our team currently has two sellers and buyers who cannot move toward closing. This delay costs everyone concerned; and of course this delay will cause some contracts to terminate.

• Higher flood insurance rates went into effect October 1st. Realtors nationwide have reported approximately 10% of transactions in September were located in flood zones, and that one out 10 of those transactions were delayed or canceled due to concerns over rising flood insurance rates. Another issue is the ever-expanding boundaries of FEMA’s flood zones.

• The 3.8% and .09% new taxes designed to fund $240 billion over the next ten years into “ObamaCare” and Medicare became effective January 1, 2013. For the 95% of Americans who make less than $200,000 as individuals or $250,000 as a couple adjusted gross income, the tax does not apply.

• Gains on a personal residence will seldom be affected because the tax is on gains exceeding the $250,000 individual exemption or $500,000 exemption for a couple.

• The 3.8% or .09% will more often apply to the sale of second or third homes, investment property or inherited property. It applies on interest, dividends, rents and capital gains. Below is an example of a how this may apply to certain individuals.

• Always, when considering any real estate transaction, whether it be buying or selling, get advice from your own tax professional.

Thank you again for your many acts of kindness, loyalty, and encouraging remarks to us and to your friends and family. We always want to hear from you anytime we can be resourceful or helpful.

Blessings to you and your family,

DeLois and Team

Effect of ACA Tax on Purchase & Sale of Investment Property

Ethan has purchased an investment property for $900,000. During his period of ownership, he takes $230,000 in depreciation deductions. He has also made some improvements to the property. At the time of sale, his adjusted basis in the property is $760,000. He subsequently sells the property for $1.2 million. In the year of sale, he is single and reports self-employment income of $315,000.

The tax applies as follows:

Gain on Sale $440,000 ($1.2 million less adjusted basis of $760,000)Depreciation Recapture $230,000Total Gain $670,000 (Gain on sale plus depreciation recapture)

Schedule C Income $315,000New AGI $985,000 ($315,000 + $670,000)

Excess AGI over $200,000 $785,000 ($985,000 - $200,000)Lesser Amount (Taxable) $670,000 (Capital gain)

Tax Due $25,460 ($670,000 x 0.038)

The statute provides no guidance as to whether Ethan can defer the 3.8% tax by entering into a like-kind exchange when he sells the property. This question may be addressed in regulations at a later time, but for the present is not resolved.

NOTE:

Star Chat from DeLois

The most valuable crop, per acre, in the state is not cotton nor soybeans. It is the sweet potato. Chickasaw and Calhoun counties account for 80% of Mississippi’s entire production. Gerber Baby Foods is a big client. Many scientists claim that the sweet potato is the most nutritious vegetable in the world.

Current real estate market statisticsHattiesburg Area Single Family Median Sold Home Prices (1/1/12 - 10/28/12 vs.1/1/13-10/28/13)

2012 2013

Hattiesburg $85,173 $95,537

Oak Grove $170,125 $179,900

Petal $122,850 $143,000

Hattiesburg Area Single Family Homes SOLD (1/1/12 - 9/01/12 vs.1/1/13-10/01/13)

2012 2013

Hattiesburg 205 250

Oak Grove 344 386

Petal 155 167

Call us at 601-545-3900 for your no obligation home price consultation.

Client Quotes“The All Star Team acted in a truly

professional manner. They took on a hands-on approach from beginning to end of the selling process. We felt as though we were dealing with HGTV. They took time to come into our home and got it staged beautifully.”

-David and Glendale Scott

“Adam Watkins and his team are the easiest people to work with when selling. Adam is a professional, honest man and we never doubted his intentions to help us get the best offer for our home. We will always recommend the All Star Team to friends.”

-Lindsey Neel

“Our experience with the team was a very pleasant one. The entire staff was efficient in answering our questions and we were duly informed about any changes or additions as needed.”

-Olin and Wilda Holiday

ONE-STOP SHOPPING FOR YOUR CHRISTMAS LIST!

Presented by hcbn.net

Children 1 & under Free

Holiday Shopping Children’s Activities & Crafts* Prizes ● Food Vendors Nonprofit Fair ● Blood Drive Pictures with Santa (take your own) “Give a Child a New Book” Campaign (Drop-off Location — bring a new, unwrapped children’s book)

*Included in Admission price

Produced by

Saturday, November 2 10am—5pm

Forrest County MultiPurpose Center

ONE-STOP SHOPPING FOR YOUR CHRISTMAS LIST!

Presented by hcbn.net

Children 1 & under Free

Holiday Shopping Children’s Activities & Crafts* Prizes ● Food Vendors Nonprofit Fair ● Blood Drive Pictures with Santa (take your own) “Give a Child a New Book” Campaign (Drop-off Location — bring a new, unwrapped children’s book)

*Included in Admission price

Produced by

Saturday, November 2 10am—5pm

Forrest County MultiPurpose Center

ONE-STOP SHOPPING FOR YOUR CHRISTMAS LIST!

Presented by hcbn.net

Children 1 & under Free

Holiday Shopping Children’s Activities & Crafts* Prizes ● Food Vendors Nonprofit Fair ● Blood Drive Pictures with Santa (take your own) “Give a Child a New Book” Campaign (Drop-off Location — bring a new, unwrapped children’s book)

*Included in Admission price

Produced by

Saturday, November 2 10am—5pm

Forrest County MultiPurpose Center

ONE-STOP SHOPPING FOR YOUR CHRISTMAS LIST!

Presented by hcbn.net

Children 1 & under Free

Holiday Shopping Children’s Activities & Crafts* Prizes ● Food Vendors Nonprofit Fair ● Blood Drive Pictures with Santa (take your own) “Give a Child a New Book” Campaign (Drop-off Location — bring a new, unwrapped children’s book)

*Included in Admission price

Produced by

Saturday, November 2 10am—5pm

Forrest County MultiPurpose Center

Tour of Homes Sunday, November 3, 20131:30-5 PM

Sandstone 4BD/2.5BA - $295,000 ABSOLUTELY CHARMING 4BD/2.5 BA TWO STORY CRAFTSMAN DESIGN. BUILT-IN STORAGE GALORE! 2,980 SQ. FT. Directions: HWY 589 N, turn into Sandstone S/D,

right at Stoneridge South, Home on left.

7 Stoneridge South

Oak Grove

4:00 to 4:30 pm

The Trace 4BD/3BA - $272,500 SPARKLING NEW CONSTRUCTION! HIGH QUALITY FINISHING

DETAILS THROUGHOUT, LARGE TRIPLE LOT, 3 WAY SPLIT.Directions: Hwy 98 W to King Road, right onto Courtland, right onto

Lynell Loop.

54 Lynell Loop

Oak Grove

2:00 to 2:30 pm

Pecan Lakes 4BD/2BA - $196,990WOWZA! NEW CONSTRUCTION IN PECAN LAKES! DUAL

VANITIES, WALK-IN CLOSETS, OPEN LIVING PLAN. Directions: Sunrise Road to Pecan Lakes, go through four-way stop, left at 2nd 4-way stop, turn right, home is on the right after corner.

126 Sunline Drive

Petal

1:30 to 2:00 pm

Southwest Hattiesburg 4BD/2.5BA - $249,000FABULOUS LAKE VIEW ON LAKELAND! SUNSETS WILL

TAKE ON AN ENTIRELY NEW PERSPECTIVE.Directions: Richburg Road to Nellwood Drive, turn left on Lakeland,

2nd house on the right.

106 Lakeland Drive

SW Hattiesburg

3:00 to 3:30 pm

12 Stoneridge South

Oak Grove

4:00 to 4:30 pm

Sandstone 4BD/2.5BA - $219,500 CHARMING TWO-STORY CRAFTSMAN,

EXTENSIVE HARDWOOD FLOORING, FRESH PAINT, MOVE-IN READY. (2220 SQ.FT) Directions: HWY 589 N, turn

into Sandstone S/D, right at Stoneridge South, Home on right.

TALL PINES 4BD/2BA - $146,500RELAXING, CAREFREE LIVING W/ NUMEROUS

UPGRADES INCLUDING IN-GROUND FAMILY POOL, FENCED BACK YARD, FIREPLACE. Directions: Oak Grove Road to Lamar Ave., right on Tall Pines, Left on Whispering Pines.

405 Whispering Pines

Oak Grove

1:00 to 1:30 pm

28 Chapel Hill Blvd

Oak Grove

1:00 to 1:30 pm

30 Chapel Court

Oak Grove

2:00 to 2:30 pm

17 Sweet Maple Trail

Petal

3:30 to 4:30 pm

Chapel Hill 4BD/2BA - $202,900FANTASTIC NEW CONSTRUSTION PERFECT FOR ENTERTAINING. WALK-IN CLOSETS, DUAL VANITIES IN BOTH BATHS, 100% USDA

FINANCING Directions: Oak Grove Road to Steelman. Right into Chapel Hill subdivision.

Chapel Hill 3BD/2BA - $197,900 WONDERFUL NEW CONSTRUCTION IN CHAPEL HILL

W/ DUAL VANITIES, WALK-IN CLOSETS, LARGE GREAT ROOM. Directions: Oak Grove Road to Steelman Road. Follow to

Chapel Hill subdivision.

Trailwood West 4BD/3.5BA - $365,000 ALMOST HEAVEN! NEW CONSTRUCTION ON ONE OF THE

TOP INTERIOR LOTS IN TRAILWOOD WEST! Directions: Hwy 42 to red light @ TWW. Take Broken Arrow thru 3 way stop, right on Pin Oak, right on Cypress Lake, right on Sweet Maple.

The Meadows 3BD/2BA - $157,900THE NUMBER ONE PLAN W/ NO WASTED SPACE!

GRANITE COUNTERTOPS, COVERED PORCH, HARD-WOOD & CERAMIC FLOORING.

Directions: Carterville Road to Sunrise Road. Turn onto High Meadows.

5 High Meadows

2:30 to 3:00 pm

104 Jeff Davis Circle

SW Hattiesburg

3:00 to 3:30 pm

61 Bienville Trace

Canebrake

1:00 to 1:30 pm

Woodland Hills 4BD/2.5BA - $178,900 SPACIOUS HOME WITH SEVERAL LIVING AREAS,

PERFECT FOR ENTERTAINING, CRYSTAL CHANDELIER IN DINING ROOM, STONE FIREPLACE.

Directions: Hardy Street to S. 34th, turn onto Jeff Davis Circle.

Rolling Hills @ Lake Serene 3BD/2BA - $194,500WATERFRONT PROPERTY! 100% FINANCING.

BEAUTIFULLY UPDATED HOME ON A HUGE LEVEL LOT. NICE SHOP AND FISHING PIER.

Directions: Hwy 98 West to King Road. Left on Clipper Drive.

35 Clipper Drive

Oak Grove

2:00 to 2:30 pm

6 Clear Springs Court

Oak Grove

3:00 to 3:30 pm

Canebrake 4BD/3.5BA - $449,900IMAGINE THE TRANQUILITY OF DUCKS, GEESE, & BLUE

HERONS ON THE DUCK POND RIGHT BEHIND YOUR HOME! EVERY IMAGINABLE UPGRADE.

Directions: HWY 98 W. Take the second Canebrake entrance.

Chapel Hill 3BD/2BA - $137,500 IDEAL, OPEN, SPLIT PLAN W/ BIG FAMILY FRIENDLY

KITCHEN, STAINLESS APPLIANCES, 100% FINANCING.Directions: Oak Grove Rd. to Steelman Rd., left into Chapel Hill, first

left on Fairfax, second right on Clear Springs Court.

Canebrake 4BD/5.5BA - $1,150,000PREMIER WATERFRONT CANEBRAKE PROPERTY W/

BOAT HOUSE AND 6,385 SQ. FT. TWO-STORY CLASSIC FEDERAL STYLED RESIDENCE. Directions: Main Canebrake

entrance. Take first left, go across spill way and follow around the lake.

223 West Canebrake Blvd.

Canebrake

3:00 to 3:30 pm

3108 Prince George

SW Hattiesburg

2:00 to 2:30 pm

Southwest Hattiesburg 3BD/4.5BA - $234,900 EXECUTIVE RESIDENCE IN A GREAT LOCATION!

FANTASTIC NEW UPGRADES PLUS A SUNROOM AND PRIVATE BACK YARD! Directions: Hardy Street to S. 34th, cross

Jamestown, right on Prince George.

The Trace 4BD/3BA - $239,900 CUSTOM, 3-WAY SPLIT PLAN W/ A FORMAL STUDY &

FORMAL DINING. UPSCALE FINISHING DETAILS.Directions: Enter The Trace from King Road. Right on Collinwood, take

first left on Morrell Circle.

173 Morrell Circle

Oak Grove

3:00 to 3:30 pm

Petal

15 Park Ridge

Oak Grove

2:00 to 2:30 pm

Timber Ridge 3BD/2BA - $159,900 QUALITY CRAIG FLANAGAN BUILT HOME, HUGE

KITCHEN, NEW CARPETING, FRESH PAINT, LARGE BACKYARD. Directions: South on Old Hwy 11., turn into Timber

Ridge S/D, turn on Park Ridge, home is on the left.

9 East Lake Road

SW Hattiesburg

1:00 to 1:30 pm

LAKE SERENE 4BD/3BA - $469,500MAIN LAKE PROPERTY RENOVATED IN ‘99 W/ BRICK

FLOORING, NEW KITCHEN & MASTER SUITE. BOAT PIER ON A 2.4 ACRES. Directions: HWY 98 W. Turn onto Serene Blvd., right on Magellan Rd., left on East Lake Road. House is on the right.

Crowns Point 3BD/2BA - $137,900PERFECT STARTER HOME! NEW CONSTRUCTION

CONVENIENTLY LOCATED IN THE HEART OF OAK GROVE. Directions: Hwy 98W to Hegwood Road, Go through first stop sign,

turn into Crowns Pointe on the left.

20 Crowns Pointe

Oak Grove

4:00 to 4:30 pm

20 Acorn Place

Oak Grove

1:00 to 1:30 pm

Oak Forest 4BD/2BA - $149,500UPDATED 4 BEDROOM, 2 BATH HOME CLOSE TO OAK

GROVE SCHOOLS. EXCELLENT ONE-STORY FLOOR PLAN. YOU’LL LOVE THE EFFICIENCY OF THIS HOME!

Directions: Old Hwy 24 to Leaf Lane. Left on Acorn Place.

102 Shadow Ridge

Oak Grove

1:00 to 1:30 pm

Shadow Ridge 3BD/2BA - $224,900 CONVENIENTLY LOCATED IN A CENTRAL GOLF

COMMUNITY IN OAK GROVE SCHOOL SYSTEM. OPEN FLOOR PLAN. Directions: Hwy 98W, turn into Shadow Ridge

subdivision, follow Shadow Ridge all the way to the end.

Canebrake 3BD/3.5BA - $329,500 NEW GRANITE COUNTER TOPS AND STAINLESS STEEL APPLIANCES IN THIS HOME ON THE CANEBRAKE GOLF COURSE. HARDWOOD FLOORS & LOTS OF BUILT-INS.Directions: Hwy 98W to 2nd Canebrake entrance, follow Bienville

Trace, house is on the left.

95 Bienville Trace

Canebrake

2:00 to 2:30 pm

5 Bluestem

Bellegrass

3:00 to 3:30 pm

Bellegrass 4BD/3.5BA - $319,500 COME LIVE IN A COMMUNITY W/ SOME OF THE BEST AMMENITIES. THIS HOME HAS A BEAUTIFUL WRAP

AROUND PORCH, & MUCH MORE! Directions: Hwy 589 to Bellegrass, right @ Bell tower, 2nd right on Banberry, home on right.

105 Wildwood Trail

Petal

2:30 to 3:00 pm

Trailwood 3BD/2BA - $199,500 SOUTHERN COLONIAL W/ A BIG FRONT PORCH ON A 1.5

ACRE TRAILWOOD LOT. GREAT HOME IN THE AWARD WIN-NING PETAL SCHOOL DISTRICT! Directions: Enter Trailwood off Hwy 42 onto Wildwood. Go past the 3-way stop, house is on the left.

72 North of Fields

Bellegrass

4:00 to 4:30 pm

Bellegrass 3BD/2.5BA - $244,500 CUSTOM BUILT HOME W/ LOW MAINTENANCE. LUSH

LANDSCAPING, FENCED BACK YARD, RELAXING PORCH!Directions: Hwy 589 S, turn right into Bellegrass, follow to T, continue right on Bellegrass Blvd. past the pool. Turn right onto North of Fields.

Bridgefield 4BD/4BA - $439,500 ELEGANT, CUSTOM BUILT HOME, BEAUTIFULLY

LANDSCAPED 1.07 ACRE LOT.Directions: Hwy 589 N to Bridgefield. House is on the right after

entering the neighborhood gates.

28 Bridgewater Drive

Bridgefield Estates

4:00 to 4:30 pm

634 Nellwood Drive

SW Hattiesburg

4:00 to 4:30 pm

Woodhave Lake Estates 4BD/3BA - $259,900 FANTASTIC WATERFRONT PROPERTY! WONDERFUL

FLOOR PLAN, LARGE KITCHEN, FORMAL DINING, RELAXING WATER VIEWS, IMMACULATE!

Directions: Richburg Road to Nellwood. Home on the left.