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Do you VRBO?

Several of my Real Estate clients have been picking up investment homes here in the valley and either holding them for long term rentals or making them a Vacation Rental By Owner, better known as a VRBO.  During the season you can do very well on weekly rents but the regular turn over of occupants can pose logistical problems at times.

Here’s a company that allows you to control the lights, thermostat, front door code and surveillance all from your smart phone.  So between occupants you can easily change the front door code for the next set of tenants and text or email them the new code without having to visit the property.  This is especially nice for those who manage property in another state or when you’re away. Same goes for changing the thermostat or lights that have been left on by your last visitors, wasting precious energy and racking up your bills.  You can change codes between cleaning crews as well, eliminating the need for a contractor’s box on the property which means you have to make a manual code change each time.

I learned about this system from a friend who’s renting a VRBO now and has Vivint installed. Here’s the website in case this is a resource you might find handy:

http://www.buyvivint.com/

 

 

Over the past month I’ve had a handful of friends and clients mention a surge in the number of scorpions they’ve found in their homes, each asking for a recommendation on which pest control service to use.  Thanks to my good friend Sandy, I maintain that YOU are the best defense against scorps, better than any service that has to use pesticides around your home.  Even the experts will tell you, they spray to reduce/eliminate crickets which are the food of scorpions, so the theory is without a food source you rid yourself of scorpions.  Maybe so, but when I bought my foreclosure home which sat empty for several months I sighted dozens in the backyard and a handful inside.  Thanks to Sandy, I worked at eliminating them over the months before I moved in (while remodeling) and I’ve now lived in the home for almost 8 months with not a one inside and just a few outside.  I live directly across from wide-open preserve and was told by neighbors this is a high scorpion neighborhood.  Nonetheless, I enlisted Sandy’s tactics with great results.  There’s also a product you can use if you have a more serious issue (nests on your property for example) that I’ll mention.

First, purchase a scorpion black light as I have pictured.  They come in the small size shown and larger, I went for the smaller version. Go out at night when the temps are at least 80 degrees (this is getting tough with our temp change now) and methodically work your way around the yard, shining the light on all your fence walls and the house, even the ground. There will be no mistaking when a scorp falls in the path of your light, they will fluoresce to a white/purple shade, almost like the white of a velvet painting when seen in black light. Spray them with a dose of Spectracide (also shown) to slow them down as they are fast little buggers and then ‘dispose’ of them using the end of a flat shovel or any other similar tool.

For the inside search use a large, flat dowel with a circle of duct tape on the end (also in the picture), NO Spectracide and no shovel. Make your way from room-to-room, checking ceilings, walls and floors.  If you find one, stick it to the end of the dowel then take it outside and smash it.  Scorpions can carry a multitude of babies on their back and this ensures you stick all of them together so they don’t scatter; the last thing you want is a brood of baby scorpions dispersing themselves throughout your home. And remember, whether you’re inside or out, be sure to protect your eyes from the black light, it can do damage so never shine it in your eyes or anyone elses.

If you have a more persistent problem, the next suggestion is to purchase a bag of diatomaceous earth, but NOT the kind you use in pool filters, there’s another version that’s used by organic farmers instead of pesticide and some even feed it to their horses to keep flies from growing in their manure. You can purchase it at a feed store for about $23 for a 50lb. bag.  Sprinkle a barrier around the perimeter of your home as well as your fence line.  As scorpions pass through it, it actually permeates and tears up their structure.  When you want it gone just hose it away and the best part, it poses no danger to your children or pets.

That's duct tape on top of the dowel for your inside scoprion searches.

You can purchase the scorpion light & Spectracide at any hardware or home improvement store.

In case you missed this article from The Arizona Republic this past Tuesday:

For the first time since metro Phoenix home values crashed, most of the region’s homeowners can expect a noticeable drop in their property taxes. Maricopa County property-tax bills are being mailed this week, and the average homeowner bill is expected to decline more than $60 from last year’s bill.

The bills reflect taxes from a variety of cities, school districts and other taxation districts, which take a percentage of a property’s assessed value each year. Most of those districts raised tax rates this year, but the overall amount of taxes those districts plan to collect is down almost 6 percent.

And although tax bills are tied to a property’s assessed value, the decline is also partly because of budget cuts by public agencies across the state, which set their budgets, then adjust tax rates to match. For example, the Maricopa County Board of Supervisors decided two weeks ago to raise the county’s property-tax rate from $1.05 in 2010 to $1.24 per $100 of net assessed valuation.

At the same time, the amount the county will collect from property taxes will fall by $21.7 million because of decreased assessed home values. To deal with the revenue shortfall, the county has spread budget cuts across its approximately 50 agencies and departments. “I think that this is rather telling about the insignificance of tax rates,” said Charles Hoskins, county treasurer. “Rates have increased because values have dropped more than spending, but the reduced spending is what ultimately determines what property owners pay.”

This year’s tax bills are based on 2009′s valuations, when Valley home prices dropped a median of 15.2 percent. That was the third consecutive drop for home valuations in Maricopa County. Next year’s property taxes will be based on 2010 valuations, which showed home values fell 11 percent.

Last year, county property-tax assessments were down 3.7 percent from 2009. But not every homeowner saw a decrease in his tax bills during 2010 because several municipalities and special districts had to raise their tax rates to offset budget shortfalls. This year, Hoskins expects most homeowners to see a decrease.

Although tax bills are declining, the drop isn’t nearly as much as the plunge in home prices, which have tumbled about 60 percent since 2006. And Kevin McCarthy, president of the Arizona Tax Research Association, cautioned that not all homeowners’ tax bills will drop. It will depend on how much their respective school districts and cities raise tax rates. School districts are expected to raise taxes this year, he said. On average, property taxes from school districts make up 61 percent of a homeowner’s tax bill.

A homeowner living in Glendale Elementary School District whose property was assessed at the median value of $140,000 for last year’s taxes and $124,500 for this year’s may pay $76 more this tax year. But the owner of an equivalent home in the Isaac School District in Phoenix may pay $99 less. Both cities kept their tax rates flat, and both school districts increased their rates, but because the increase was smaller in Isaac, the total tax bill decreases.
“A blanket statement about everybody’s taxes in the county going down will be problematic on that level,” McCarthy said. “The things that might be driving some softening of the tax bill at the county level are not going to occur at the school-district level and, to a lesser extent, at a city level.”

Property values are assessed annually, and county tax bills based on those assessments arrive 18 months later. The bills are based on a formula based on two factors: property valuations set by the assessor and tax rates set by nearly 1,500 municipalities and other tax jurisdictions. Those jurisdictions – counties, cities, school districts, community-college districts and other special districts – determine the actual tax load for any given home.

A tax bill is a composite of the taxes assessed by those many different districts. A home that is inside a certain parks district, for example, may pay higher taxes than an identical home nearby that lies outside district lines.
To set rates, the taxing jurisdictions must first figure out how much money they need to fund their budgets. Then, the district and municipalities work backward to set their tax rate. Under this system, a decline in value without an equal drop in a jurisdiction’s budget will cause tax rates and taxes to go up.All jurisdictions have a legal cap on how much they can raise tax rates, which is mandated when they are formed.

But districts can take a larger amount through local bond issues or voter-approved school-funding increases called budget overrides. This year, Hoskins said $1 out of every $5 assessed for property taxes will go toward voter-approved budget overrides and debt payments.

Homeowners’ tax bills show which taxing jurisdictions are contributing to their total assessment. The total assessed tax for all Maricopa County homeowners from all taxing districts is $3.9 billion this year. That compares with $4.2 billion last year and $4.3 billion in 2009.

Tax consultants believe Maricopa County has one of the most complicated property-taxing systems in the country. However, property-tax reform doesn’t draw as much support in Arizona as other parts of the nation because the state has one of the lowest tax rates. Arizona has the 39th-lowest property-tax rate in America, according to the Tax Foundation, a Washington, D.C.-based non-profit. McCarthy said although that may be the case for residential homes, Arizona ranks about 16th-highest state in commercial- and industrial-tax rates.

The residential-home market may have bottomed out, but the commercial market still has room to decline, and business taxpayers are still seeing tax increases, he said. “We have low homeowner property taxes, and we have high business-property taxes because we don’t generate property taxes from homeowners on an even basis like most states,” McCarthy said.

So one of the things that drives many of my friends and clients nuts is the lack of storage in the majority of homes across the valley.  In Ahwatukee you need to get a tri-level to find yourself any semi-righteous storage space and even then you may find yourself challenged. I’ve seen some seriously creative use of normal dead spots, like pot shelves, open niches and, of course, under the bed and garage shelving. But if you opt for the latter, you often run into the problem that your garage is no longer big enough to pull in two cars and actually open the doors.

I recently faced this storage dilemma with the new move. Since I was ripping out so many things anyway, (including a wall) I got creative with the typical cabinets-with-counter-and-cabinets-above scenario (pictured below) we find randomly placed in hallways or upper stairway landings of many Tukee homes. To convert this to usable space I simply tore out the old cabinets (which will eventually get mounted in my garage) and created a closet using drywall, 22″ deep shelving, a light (really helps at night), some paint and a set of doors. Since the new closet abuts up to the door of my boys bedroom I didn’t want it to be a hard left turn around the closet when entering their room so we angled the one wall to give the hallway better flow.  You can see that in the photos as well.

One of our mistakes was making the very top shelf the same depth as the other shelves.  We had to cut it down to half the depth so we could actually get stuff past the top of the doorway opening and on to the shelf, otherwise there were only a couple of inches between the wall and the shelf itself.  You’ll also want to be sure to use magnetic door closures and not a full door handle that you have to actually turn the handle to open.  You want to just pull the doors open so the magnetic closure are installed at the top of each door. They sell them at any hardware store and they’re very inexpensive.

Check out the pics below to see the before and after

Before, Hall Cabinets

The one side wall is angled to create a better flow in to the adjacent bedroom.

 

 

Hall closet after, inside

Outside view of hall closet, after

 

 

 

 

 

 

 

 

In December I purchased another home and it’s been fun remodeling it over the past several months.  Since it was a bank-owned home it had been freshly painted inside (nice cost savings there) but all the window treatments had been removed, as is often the case with a bank owned property.  In the winter months that was fine as there’s no real privacy issue based on the way the house sits and I loved all the natural light pouring in through the abundance of windows.  BUT with the advent of summer, holy cow.  I needed to do something – PRONTO.  My utility bills were climbing with every upward move of the thermometer and my furnishings and artwork were getting hammered with UV rays.

So instead of painting the exterior like I had planned, it became a necessity to cut down on the amount of sunlight and heat coming in through the windows.  I turned to Wes McLaughlin of Arizona Blinds to help me wade through the decision-making process.  He has helped my clients with their needs and can do everything from blinds, shutters, screens and roller shades to window tint, which is what I chose as a starting point based on my personal need.  Actual window coverings are the next budgeted item.

He measured all my windows and gave me a quote on the spot.  He was competitive with other pricing and I already knew their service to be excellent.  We elected to go with a Panorama window film in Slate 30 on the majority of my windows.  It blocks 99% of all UV light and cuts the actual heat by 63%, eliminating hot spots and uneven temperature fluctuations which is exactly what I needed.

It’s only been a little over a week but I’m tracking energy use via SRP’s online e-notification which emails me each time my bill is projected to be over a certain amount. I’ve watched it drop $50 over the past 10 days with each notification, a fun little game I like to play and highly recommend. I can’t say 100% of that savings is from the window tinting, I’ve done a few other things like a hard-core commitment to time of use and using black out draperies on a few windows, but in large part, the tinting seems to be helping.  I definitely notice that my furnishings and artwork aren’t getting pummeled by the strong rays anymore and the overall feel of each room is cooler.  Hopefully it won’t feel too dark come winter but given the fact we live in such an intense climate for so many months out of the year I’ll live with it!

If you would like to contact Wes for more information on tinting you can reach him at wes@azblinds.com or visit their website at www.azblinds.com.  Or, go the old-fashioned route and call them, 480-234-7209.

 

 

If you have a hole(s) in your fiberglass bathtub, it’s most likely in your best interest to fix it before it gets worse.  Sometimes you can get away without a permanent fix if the holes are confined to the vertical part of the tub, water doesn’t tend to affect the sides of the tub as much.  But, if the holes are on the bottom of the tub and the tub is used everyday,  any and all repairs you do will only be temporary.  So even though you might have the repair done professionally, it may still look good but ultimately it will still leak over time. and most likely before you even realize there’s a problem again.   A tub that’s used regularly is especially a danger as it will eventually develop a mold issue.  Because you cannot see under your tub, it will get bigger and bigger and spread to other locations where eventually the mold will surface.

A great place to find a replacement tub without breaking the bank is Stardust Building Supplies http://www.stardustbuilding.org/  .  This is where most of the valley goes to donate their household items when they remodel. You’ll literally find the kitchen sink here!  Last time I stopped by they had rows of bathtubs to choose from for $50-$100.  Definitely worth a look if you find yourself needing to make the full replacement.  Tubs purchased through the traditional channels can cost you upwards of $300 so Stardust is a good resource to have at your fingertips.

A tiny hole in your bathtub can cause a big problem

Recently I’ve had a few requests to post more photos of the metallic paint so here they are. These walls were painted using the Copper Gleam and Lustrous Amber colors. I’m attracted to the earth tones so that’s pretty much what you’ll find in our home.  I have a friend who used the Pewter version and it’s beautiful!  She’s going to snap a photo and send it over so I’ll post that one when I get it.  

The two most important things to remember when using this paint are 1) be sure to place on a wall that is subject to natural light, the more light the better.  It really makes a difference is showing the depth of the color.  And 2) even application is tricky.  Be patient and know you may have to go over areas a few times to even out the lines between strokes. 

In the pictures shown here of the Lustrous Amber there was actually a color applied to the walls that was not the companion color that Valspar recommends. It was a color I’d painted a few years back and I was bored of it so decided to put the metallic over the existing paint.  It worked out fine because I selected a metallic color from the Valspar selection that best paired up with the recommended base paint.  So if you’re bored of a room and want to make a change, you may be able to just put the metallic over your existing paint if they are in the same family.  I loved the fact it cut out the step of applying the base color first!

Lustrous Amber metallic paint

Copper Gleam

Copper Gleam at Night

 

This is the Pewter color. It's hard to see the shimmer because this wall does not get direct sunlight.

 

Over the past few weeks I’ve received several questions about the Move-Up tax credit so thought I’d send this follow-up to friends & clients.  It’s breaks down the two tax credits (Move Up & First Time Home Buyers) in easy-to-read bullet points. 

As of November 13, the following is a summary from the Counsel for the IRS on the First Time & Move Up Buyer tax credits.  Be sure to check out the Q&A at the very bottom of the page.  The word “purchased” is defined by the IRS as the actual closing/recordation date.

$8,000 First-time Home Buyer Tax Credit at a Glance

  • The $8,000 tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
  • The tax credit does not have to be repaid unless home is vacated as primary residence in the first 3 years following purchase.
  • The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
  • The tax credit applies only to homes priced at $800,000 or less.
  • The tax credit now applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, a home purchase completed by June 30, 2010 will qualify.
  • For homes closed on or after January 1, 2009 and on or before November 6, 2009, the income limits are $75,000 for single taxpayers and $150,000 for married couples filing jointly.
  • For homes closing after November 6, 2009 and on or before April 30, 2010, single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
  • Cannot purchase from a relative you are descended from such as a grandparent, parent but supposedly okay sibling to sibling. You cannot transfer property from spouse to spouse, purchase from a company you have significant ownership in.

The $6,500 Move-Up / Repeat Home Buyer Tax Credit at a Glance

  • To be eligible to claim the tax credit, buyers must have owned and lived in their previous home for five consecutive years out of the last eight years from time of closing of new home. Previous home can have been converted to rental or second home, sold, or otherwise disposed of as long as they can provide documentation that new home is primary residence.
  • The tax credit does not have to be repaid unless they vacate it as a primary residence during the 3 years following purchase.
  • The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500.
  • The tax credit applies only to homes priced at $800,000 or less.
  • The credit is available for homes purchased after November 6, 2009 and on or before April 30, 2010. However, in cases where a binding sales contract is signed by April 30, 2010, the home purchase qualifies provided it is completed by June 30, 2010.
  • Single taxpayers with incomes up to $125,000 and married couples with incomes up to $225,000 qualify for the full tax credit.
  • It does not seem there is any language about it being a “move-up” property, just using it as terminology to define those who’ve owned homes previously.
  • Because this is a new provision, the IRS is still working out some of the bugs and recommends you visit the website often.

 Also, as before, if a buyer purchases in 2010, they can apply for the credit on their 2009 tax return. 

For more information, please see the IRS publications at http://www.irs.gov/newsroom/article/0,,id=204335,00.html

  Below are some great scenarios answered by the IRS: 

First-Time Homebuyer Credit: Scenarios

 
S1. If a single person (Taxpayer A) qualifies as a first-time homebuyer at the time he/she purchases a home with someone (Taxpayer B) that is not a first-time homebuyer and then later that year they marry each other, is the credit still allowed?

A. Eligibility for the first-time homebuyer credit is determined on the date of purchase. If Taxpayer A, a first-time homebuyer, buys a house and then later that year marries Taxpayer B, not a first-time homebuyer, the credit is allowable to Taxpayer A. Taxpayer A may take the maximum credit.

S2. Taxpayer A is a single first-time home buyer. Taxpayer B (parent) cosigns for A and does not qualify. Both names are on the mortgage. Can Taxpayer A claim the credit and, if so, how much? 

A. Yes. Taxpayer B is not a first-time homebuyer and cannot claim any portion of the credit, but A may claim the entire credit ($7,500 for purchase in 2008; $8,000 for purchase in 2009), if the home was purchased as Taxpayer A’s primary residence.

S3. A taxpayer owned her principal residence. Several years ago, she decided to relocate to a rented apartment, but did not sell the former residence. Instead, she rented it out to tenants. Now the taxpayer plans to buy another house and make it her new principal residence. Does she qualify for the first-time homebuyer credit?

A. A taxpayer who owned rental property within the past three years is still eligible for the credit. The taxpayer cannot have owned and used a home as his or her principal residence within the last three years.

S4. If husband and wife wanted to sell the home that the wife owned when they got married, and the husband had not owned a home within the past three years, could he qualify as a first-time homebuyer for the credit even though the wife would not qualify?

A. No. The purchase date determines whether a taxpayer is a first-time homebuyer. Since the wife had ownership interest in a principal residence within the prior three years, neither taxpayer may take the first-time homebuyer credit. Section 36(c)(1) of the Internal Revenue Code requires that the taxpayer and the taxpayer’s spouse not have an ownership interest in a principal residence within the prior three years from the date of purchase. The husband may not take the credit even if he filed on a separate return.

S5. Taxpayer purchased a home on April 24, 2008, while she was separated from her husband. Later in the year, they reconciled and were living together at the end of 2008. She has not owned a home since 2004 but he owned one which he sold in 2006. They remained married the entire time. Is the taxpayer eligible for the first-time homebuyer credit?

A. No. The purchase date determines whether a taxpayer is a first-time homebuyer. Since the husband had ownership interest in a principal residence within the prior three years, and the taxpayers were legally married, neither taxpayer may take the first-time homebuyer credit. Section 36(c)(1) requires that the taxpayer and the taxpayer’s spouse not have an ownership interest in a principal residence within the prior three years from the date of purchase. While individuals do not have to be married to get the credit, marriage (and legal separation) imputes ownership of a previous home upon the other spouse. The wife may not take the credit even if she filed on a separate return.

S6. I have been estranged from my spouse for over three years and file married filing separate. I don’t know if my spouse has owned a main home in the last three years, but I have not. If I buy a house in 2009 that otherwise qualifies for the first-time homebuyer credit, can I claim the credit?

A. Section 36(c)(1) requires that the taxpayer and the taxpayer’s spouse not have an ownership interest in a principal residence within the three years prior to the date of purchase. While individuals do not have to be married to get the credit, marriage (and legal separation) imputes ownership of a previous home upon the other spouse. If your spouse has not owned a main home in the last three years, then you may claim the credit.

S7. I am separated from my spouse and considered unmarried, and qualify for the unmarried head of household filing status. My spouse has owned a main home in the last three years, but I have not. If I buy a home on May 1, 2009, that otherwise qualifies, can I claim the first-time homebuyer credit?

A. No. Section 36(c)(1) requires that the taxpayer and the taxpayer’s spouse not have an ownership interest in a principal residence within the three years prior to the date of purchase. While individuals do not have to be married to get the credit, marriage (and legal separation) imputes ownership of a previous home upon the other spouse. The taxpayer may not take the credit even if filed on a separate return.

S8. A qualifying taxpayer bought a home in August 2008 that needed a lot of work before occupying. They finished the renovations and moved in the home in January 2009. Can they claim the $8,000, since they did not occupy the home until 2009?

A. No. Taxpayers who purchase an existing home and renovate the property before moving in are eligible for the first-time homebuyer credit based on the date of purchase, not the date of occupancy.    

Related Items:

Hi Friends,

If you haven’t already heard, it’s official; on 11/6/09 the President signed the tax credit bill that extends the current $8,000 first time home buyer tax credit (which was set to expire Nov. 30) through April 30, 2010. The bill also includes a new, ‘move up buyers’ $6,500 tax credit for homebuyers who have previously owned a home, if that home was their primary residence for five consecutive years out of the last eight years.

Both the $8,000 credit and the $6,500 credit have expanded buyer income limits ($125,000 for individuals and $225,000 for couples), and the cost of the home being purchased is limited to $800,000.

Existing home buyers will qualify for the full credit as long as they have entered a binding contract by April 30, 2010 and they close the transaction within 60 days. The tax credit is limited to homes with a purchase price of $800,000 and below. The bill also includes anti-fraud language that gives the IRS the authority to provide greater oversight during processing of the return.

As soon as the guideline specifics are announced for the “move-up buyers” I will post that as well. Rumor has it that it doesn’t technically have to be a move-up property; a lateral move may qualify as well so maybe you want to get in to a single story and out of dealing with stairs. Not sure what “lateral” means to the government though so we’ll have to wait and find out.

Additionally, the legislation waives the recapture provision for members of the armed forces who are called on extended duty. Members of the military and uniformed services, who are out of the country for at least 90 days, will also be eligible to use the tax credit upon their return through April 30, 2011.

This is huge if you’ve been thinking about making a move up in this buyer friendly market.  Call me for a market analysis of your existing home if you want to determine if you should be taking advantage of this opportunity.  The inventory of homes for sale by ’real sellers’ (not a short sale or bank owned property) is very low, especially in the $250-400k range, and buyers are out there looking for clean, maintained properties. Inventory is a bit more plentiful above $400k so could be this government incentive hits your personal sweet spot.  

Pass this along to friends & family who might find it useful no matter where they live as this is a national program.  We’ve heard plenty about the first time home buyers credit but the fact existing home owners are getting a break for making a move up is a new twist.

Plastic Paint

A couple of weeks ago my neighbor was out painting her plastic lounge chairs.  Of course I buzzed over to find out exactly what she was up to; it looked far too interesting and I had to inquire further.

She has a set of lounge chairs that she’s had forever but were in perfect condition.  However, the white color was yellowed from the intense sun.  While perusing the paint selection at Home Depot (I’m sure you can get it at Lowe’s, too) she came across plastic spray paint, meant for exactly that type of purpose. She was spraying the entire chair as the piping of the chairs are also a heavy plastic (as opposed to metal).

The chairs were originally white so she stuck with the same color but the paint comes in a large variety of colors.  It was so easy, she just wiped them down thoroughly to get off the dust and spread out a big piece of cardboard, placed a chair on it and sprayed away.  It probably took her about 15-20 minutes to do each chair, making sure to get all the nooks and crannies.

They came out looking great!  I only took an after photo (she was on chair two before I got there) and it’s not the best angle but you’ll get the idea.  Once they dried she placed new lounge cushions in a deep rust color over them, but they looked great even without the cushions.  They remind me of the lounge chairs you see poolside at many of our local resorts.

This is just one idea for the use of plastic paint. I’m sure you can come up with plenty of uses around your home to brighten up some household item that’s in great condition but in need of a new finish.  Now if only our (faded red) wooden Adirondack chairs were as easy a fix.  Too bad we can’t buy sanding in a spray can.

They looked much better in person!

They looked much better in person!

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