The design forecasts are rolling in for the new year and the predictions of what’s going to be popular in interior decorating in 2012. Here are some interior design trends to be on the lookout for in the upcoming year:
Homes go gray: All shades of gray will be making up more households, from warm grey to charcoal gray, through furnishings, window treatments, and artwork.
Yellow pops: Yellow can lift practically any room. Pairing yellow with gray can bring a trendy look to a home in 2012.
Rustic: Furnishings from natural, reclaimed, and rustic wood are expected to catch on. Finishes on these rustic pieces will range from wire-brushed to bleached oak to gray washes.
Repurposed lighting: Reclaimed pieces that are turned into lamps and lighting pieces is expected to continue its wave of popularity in 2012.
The industrial look: The industrial look is also gaining traction, such as repurposed, industrial occasional tables or side carts.
Lower seating: Chairs and sofas are sitting lower to the ground. More home furniture manufacturing companies are debuting lounge chair seating lower than the standard 20’’ off the floor. They’re introducing more products at 17-18’’ off the floor–possibly to fit in smaller homes.
Supersized artwork: Artwork continues to get bigger with oversized photography dressing up interiors with black and white, Sepia, or standard pictures.
Source: Melissa Dittmann Tracey, REALTOR® Magazine
Monday, December 5, 2011
Are the Holidays a Good Time to Sell?
Sixty percent of real estate professionals advise their sellers to list a home during the holidays because it’s a good time to sell, according to a new survey conducted by Realtor.com.
Why are the holidays such a good time to sell? Seventy-nine percent of the agents surveyed said that more serious buyers come out during the holidays, and 61 percent say less competition from other properties make it a great time to sell. Plus, 17 percent of agents say the cold weather is actually a benefit, making homes feel more cozy.
But online listing photos become even more crucial during the holiday season, according to the survey. Slightly more than half of agents say that the photos are more important because sellers tend to offer less open houses around the holidays, and so the online photos help buyers decide the properties to see and which ones to possibly bypass.
The biggest hurdles sellers face during the holidays, however, are keeping a home ready to show (clean and staged) as well as winter weather conditions and buyers’ vacation schedules, the Realtor.com survey found.
Source: Realtor.com
Why are the holidays such a good time to sell? Seventy-nine percent of the agents surveyed said that more serious buyers come out during the holidays, and 61 percent say less competition from other properties make it a great time to sell. Plus, 17 percent of agents say the cold weather is actually a benefit, making homes feel more cozy.
But online listing photos become even more crucial during the holiday season, according to the survey. Slightly more than half of agents say that the photos are more important because sellers tend to offer less open houses around the holidays, and so the online photos help buyers decide the properties to see and which ones to possibly bypass.
The biggest hurdles sellers face during the holidays, however, are keeping a home ready to show (clean and staged) as well as winter weather conditions and buyers’ vacation schedules, the Realtor.com survey found.
Source: Realtor.com
Tuesday, November 15, 2011
Foreclosures Selling for 94% of Market Value
Freddie Mac Hits REO Selling Record
Freddie Mac has sold a record number of single-family REO homes in the first nine months of 2011, and the homes are selling for an average of 94 percent of market value, Tracey Mooney, Freddie Mac’s vice president of single-family servicing and real estate owned properties, said in a blog post.
“Because our homes are well maintained and priced right for the local market and home buyers, most of our homes sell close to full estimated market value,” Mooney says.
Freddie Mac sold more than 80,000 REOs in the first nine months of 2011.
“We are selling more homes than we are taking in through foreclosure,” Mooney wrote in the blog post. Mooney says Freddie’s REOs are selling in about 4 months or about 120 days, on average.
Most of the REO sales are to owner-occupants. "While we have always been open to selling to investors, our strategy is to limit the concentration of investor sales in any given area," Mooney wrote. "In addition, we do not typically consider any offers that require significant discount pricing."
Source: “Freddie Mac Sells Record-Number REO at 94% of Market Value,” HousingWire (Nov. 14, 2011)
Freddie Mac has sold a record number of single-family REO homes in the first nine months of 2011, and the homes are selling for an average of 94 percent of market value, Tracey Mooney, Freddie Mac’s vice president of single-family servicing and real estate owned properties, said in a blog post.
“Because our homes are well maintained and priced right for the local market and home buyers, most of our homes sell close to full estimated market value,” Mooney says.
Freddie Mac sold more than 80,000 REOs in the first nine months of 2011.
“We are selling more homes than we are taking in through foreclosure,” Mooney wrote in the blog post. Mooney says Freddie’s REOs are selling in about 4 months or about 120 days, on average.
Most of the REO sales are to owner-occupants. "While we have always been open to selling to investors, our strategy is to limit the concentration of investor sales in any given area," Mooney wrote. "In addition, we do not typically consider any offers that require significant discount pricing."
Source: “Freddie Mac Sells Record-Number REO at 94% of Market Value,” HousingWire (Nov. 14, 2011)
Monday, October 3, 2011
Low Appraisal Killing a Transaction?
The National Association of REALTORS® reported that 16 percent of real estate professionals surveyed in June reported a cancelation in a sale, mostly due to a large number of low appraisals.
Many real estate professionals are watching transactions unravel, with some appraisals coming in 10 to 20 percent (sometimes more) below the accepted sale price.
“Over the past decade, finding ‘comps’ that accurately reflect values has been a challenge as values rose quickly during the boom and fell just as fast during the bust,” according to a recent article by RISMedia, 5 Ways to Fight a Low Appraisal. “Discounts paid for foreclosures and short sales have created a dual price structure between ‘normal’ and distress sales.”
Obviously one of the easiest solutions when a low appraisal comes in: Ask the seller to agree to a lower price. But when that doesn’t work, RISMedia offers some of the following tips for fighting low appraisals:
Research to Back Up Your Case
If your clients feel the appraisal was completed incorrectly, they have the right to get a copy of the appraisal from their lender and learn more about who performed it and what comparables were used. For example, your client can find out where the appraiser is based (maybe it was an out-of-town appraiser who was unfamiliar with the area).
“If your appraisal was conducted by an out-of-town appraiser unfamiliar with your market, you have every right to demand a new appraisal,” the RISMedia article notes.
Also, your client should evaluate what comparables were used in the appraisal. If your client feels unfair comps were used, they may ask their real estate agent to pull together a list of recent comparable sales — or possibly even pending sales too — to justify the agreed-to-sales price, which can then be submitted to the loan’s underwriter to help in asking for a review of the appraisal.
Request a New Appraisal
If your clients feel the appraisal wasn’t done fairly or accurately, they can ask their lender for a new appraisal. “Depending on how convincing your argument is, your lender has the ability to override the appraisal estimate, which is unlikely, or to order a new appraisal, which is more likely,” the article notes.
Get an Independent Appraisal
Your clients may opt to get their own appraisal. (If the loan is an FHA loan, they should ask the lender for a list of approved appraisers.) The bank will generally review the appraisal and ask the previous appraisal if they agree or disagree with the new one, the article notes.
“If the first appraiser disputes your appraisal, the bank may request a third appraisal done by another appraiser, or they may just reject your appraisal,” according to the article. “However, if the first appraiser agrees with the disputes you present, they may adjust their original appraisal and you may get a better price.”
Many real estate professionals are watching transactions unravel, with some appraisals coming in 10 to 20 percent (sometimes more) below the accepted sale price.
“Over the past decade, finding ‘comps’ that accurately reflect values has been a challenge as values rose quickly during the boom and fell just as fast during the bust,” according to a recent article by RISMedia, 5 Ways to Fight a Low Appraisal. “Discounts paid for foreclosures and short sales have created a dual price structure between ‘normal’ and distress sales.”
Obviously one of the easiest solutions when a low appraisal comes in: Ask the seller to agree to a lower price. But when that doesn’t work, RISMedia offers some of the following tips for fighting low appraisals:
Research to Back Up Your Case
If your clients feel the appraisal was completed incorrectly, they have the right to get a copy of the appraisal from their lender and learn more about who performed it and what comparables were used. For example, your client can find out where the appraiser is based (maybe it was an out-of-town appraiser who was unfamiliar with the area).
“If your appraisal was conducted by an out-of-town appraiser unfamiliar with your market, you have every right to demand a new appraisal,” the RISMedia article notes.
Also, your client should evaluate what comparables were used in the appraisal. If your client feels unfair comps were used, they may ask their real estate agent to pull together a list of recent comparable sales — or possibly even pending sales too — to justify the agreed-to-sales price, which can then be submitted to the loan’s underwriter to help in asking for a review of the appraisal.
Request a New Appraisal
If your clients feel the appraisal wasn’t done fairly or accurately, they can ask their lender for a new appraisal. “Depending on how convincing your argument is, your lender has the ability to override the appraisal estimate, which is unlikely, or to order a new appraisal, which is more likely,” the article notes.
Get an Independent Appraisal
Your clients may opt to get their own appraisal. (If the loan is an FHA loan, they should ask the lender for a list of approved appraisers.) The bank will generally review the appraisal and ask the previous appraisal if they agree or disagree with the new one, the article notes.
“If the first appraiser disputes your appraisal, the bank may request a third appraisal done by another appraiser, or they may just reject your appraisal,” according to the article. “However, if the first appraiser agrees with the disputes you present, they may adjust their original appraisal and you may get a better price.”
Tuesday, September 20, 2011
Attention: What does the “New” Stimulus & Real Estate have in common?
Note from Scott:
This is going to effect the majority of small business owners. There are additional fees in the fine print of the proposed "pass this" bill that will essentially be applied to those that do not make an "excessive" income.
Saturday, July 23, 2011
WATER TEST COSTS & INFO
Most water testing labs, both those run by your local health department and private water testing labs offer packages of tests for clusters of common private water supply contaminants.
If you want water tests not offered through your local health department don't hesitate to use a private water testing laboratory, provided the lab is licensed by your state. Beware - a few labs offer water tests in states where they have no license to do so, possibly using methods which are not approved by state authorities. Remember to ask.
If you are moving into a home and are testing water for the first time, it is recommended to order one of the more extensive test packages, typically costing $200 to $300.
If that test detects no problems, it is recommended to follow-up testing the water supply annually, using a less costly minimum screen for bacteria or coliform bacteria, typically costing less than $50.
Another tip: if a home is new to you, ask the neighbors, the local health department, and local labs if they are aware of any special contamination issues on your street or near your home. By doing so, you may want to order tests for unusual contaminants which otherwise no newcomer would have thought to look for.
More information such as: Choices of Water Tests & Fees: A Summary of Types of Water Tests, Degrees of Comprehensive Water Testing, Details of Water Test Parameters and Maximum Allowed Drinking Water Contaminant Levels,
Can be found at the below link:
http://www.inspectapedia.com/water/watrtest.htm
Source: The American Society of Home Inspectors
If you want water tests not offered through your local health department don't hesitate to use a private water testing laboratory, provided the lab is licensed by your state. Beware - a few labs offer water tests in states where they have no license to do so, possibly using methods which are not approved by state authorities. Remember to ask.
If you are moving into a home and are testing water for the first time, it is recommended to order one of the more extensive test packages, typically costing $200 to $300.
If that test detects no problems, it is recommended to follow-up testing the water supply annually, using a less costly minimum screen for bacteria or coliform bacteria, typically costing less than $50.
Another tip: if a home is new to you, ask the neighbors, the local health department, and local labs if they are aware of any special contamination issues on your street or near your home. By doing so, you may want to order tests for unusual contaminants which otherwise no newcomer would have thought to look for.
More information such as: Choices of Water Tests & Fees: A Summary of Types of Water Tests, Degrees of Comprehensive Water Testing, Details of Water Test Parameters and Maximum Allowed Drinking Water Contaminant Levels,
Can be found at the below link:
http://www.inspectapedia.com/water/watrtest.htm
Source: The American Society of Home Inspectors
Mold Information
The media sounded an alarm, the public heard the horror stories, and now homebuyers worry about the presence of molds in the homes they purchase.
If the high-profile status of molds is relatively recent, the subject of all the concern has been around forever. According to the United States Environmental Protection Agency (EPA), "Molds can be found almost anywhere; they grow on virtually any substance when moisture is present. Outdoors many molds live in the soil and play a key role in the breakdown of leaves, wood and other plant debris."
EPA says molds are here to stay. "There is no practical way to eliminate all mold and mold spores in the indoor environment; the way to control indoor mold growth is to control moisture."
But homebuyers want to know more than this. Unfortunately, just as when the public first became aware of asbestos, radon and problems with E.I.F.S., the body of knowledge about molds in indoor environments is far from complete.
What is known, according to the EPA, is that "molds can trigger asthma episodes in individuals with an allergic reaction to mold." Because of this health factor, it recommends the Center for Disease Control (CDC) as a source of information.
Here is a link to the EPA: A Brief Guide
http://www.epa.gov/mold/moldguide.html
Source: The American Society of Home Inspectors
If the high-profile status of molds is relatively recent, the subject of all the concern has been around forever. According to the United States Environmental Protection Agency (EPA), "Molds can be found almost anywhere; they grow on virtually any substance when moisture is present. Outdoors many molds live in the soil and play a key role in the breakdown of leaves, wood and other plant debris."
EPA says molds are here to stay. "There is no practical way to eliminate all mold and mold spores in the indoor environment; the way to control indoor mold growth is to control moisture."
But homebuyers want to know more than this. Unfortunately, just as when the public first became aware of asbestos, radon and problems with E.I.F.S., the body of knowledge about molds in indoor environments is far from complete.
What is known, according to the EPA, is that "molds can trigger asthma episodes in individuals with an allergic reaction to mold." Because of this health factor, it recommends the Center for Disease Control (CDC) as a source of information.
Here is a link to the EPA: A Brief Guide
http://www.epa.gov/mold/moldguide.html
Source: The American Society of Home Inspectors
Sunday, March 27, 2011
Thursday, March 24, 2011
Appliance Information
-
Appliance Maintenance: Refrigerators
Keep your refrigerator running efficiently and reliably with this simple maintenance routine. Read
-
Appliance Maintenance: Water Heaters
Keep your water heater running efficiently and reliably with this simple maintenance routine. Read
-
Appliance Maintenance: Heating, Venting, and Air Conditioning (HVAC)
Keep your HVAC systems running efficiently and reliably with this simple maintenance routine. Read
-
Appliance Maintenance: Clothes Washer & Dryer
Keep your clothes washer and dryer running efficiently and reliably with this simple maintenance routine. Read
Visit houselogic.com for more articles like this.
Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®
Wednesday, February 9, 2011
10 Common Errors Home Owners Make When Filing Taxes
Error #1: Deducting the wrong year for property taxes
You take a tax deduction for property taxes in the year you (or the holder of your escrow account) actually paid them. Some taxing authorities work a year behind—that is, you’re not billed for 2010 property taxes until 2011. But that’s irrelevant to the feds. Enter on your federal forms whatever amount you actually paid in 2010, no matter what the date is on your tax bill.
Error #2: Confusing escrow amount for actual taxes paid
If your lender escrows funds to pay your property taxes, don’t just deduct the amount escrowed. The regular amount you pay into your escrow account each month to cover property taxes is probably a little more or a little less than your property tax bill. Your lender will adjust the amount every year or so to realign the two.For example, your tax bill might be $1,200, but your lender may have collected $1,100 or $1,300 in escrow over the year. Deduct only $1,200. Your lender will send you an official statement listing the actual taxes paid. Use that. Don’t just add up 12 months of escrow property tax payments.
Error #3: Deducting points paid to refinance
Deduct points you paid your lender to secure your mortgage in full for the year you bought your home. However, when you refinance, you must deduct points over the life of your new loan. If you paid $2,000 in points to refinance into a 15-year mortgage, your tax deduction is $133 per year.
Error #4: Failing to deduct private mortgage insurance
Lenders require home buyers with a downpayment of less than 20% to purchase private mortgage insurance (PMI). Avoid the common mistake of forgetting to deduct your PMI payments. However, note the deduction begins to phase out once your adjusted gross income reaches $100,000 and disappears entirely when your AGI surpasses $109,000.
Error #5: Misjudging the home office tax deduction
This deduction may not be as good as it seems. It often doesn’t amount to much of a deduction, has to be recaptured if you turn a profit when you sell your home, and can pique the IRS’s interest in your return. Hampton’s advice: Claim it only if it’s worth those drawbacks.
Error #6: Missing the first-time home buyer tax credit
If you met the midyear 2010 deadlines, don’t forget to take this tax credit into account when filing.Even if you missed the 2010 deadlines, you still might be in luck: Congress extended the first-time home buyer credit for military families and other government workers on assignment outside the United States. If you meet the criteria, you have until June 30, 2011, to close on your first home and qualify for the tax credit of up to $8,000.
Error #7: Failing to track home-related expenses
If the IRS comes a-knockin’, don’t be scrambling to compile your records. Many people forget to track home office and home maintenance and repair expenses. File away documents as you go. For example, save each manufacturer's certification statement for energy tax credits, insurance company statements for PMI, and lender or government statements to confirm property taxes paid.
Error #8: Forgetting to keep track of capital gains
If you sold your main home last year, don’t forget to pay capital gains taxes on any profit. However, you can exclude $250,000 (or $500,000 if you’re a married couple) of any profits from taxes. So if you bought a home for $100,000 and sold it for $400,000, your capital gains are $300,000. If you’re single, you owe taxes on $50,000 of gains. However, there are minimum time limits for holding property to take advantage of the exclusions, and other details. Consult IRS Publication 523.
Error #9: Filing incorrectly for energy tax credits
If you made any eligible improvement, fill out Form 5695. Part I, which covers the 30%/$1,500 credit for such items as insulation and windows, is fairly straightforward. But Part II, which covers the 30%/no-limit items such as geothermal heat pumps, can be incredibly complex and involves crosschecking with half a dozen other IRS forms. Read the instructions carefully.
Error #10: Claiming too much for the mortgage interest tax deduction
You can deduct mortgage interest only up to $1 million of mortgage debt. If you have $1.2 million in mortgage debt, for example, deduct only the mortgage interest attributable to the first $1 million.This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances.
*Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.
Source: NAR, Bob Meighan CPA and vice president at TurboTax and Dave Hampton CPA and tax manager of Burke & Schindler
You take a tax deduction for property taxes in the year you (or the holder of your escrow account) actually paid them. Some taxing authorities work a year behind—that is, you’re not billed for 2010 property taxes until 2011. But that’s irrelevant to the feds. Enter on your federal forms whatever amount you actually paid in 2010, no matter what the date is on your tax bill.
Error #2: Confusing escrow amount for actual taxes paid
If your lender escrows funds to pay your property taxes, don’t just deduct the amount escrowed. The regular amount you pay into your escrow account each month to cover property taxes is probably a little more or a little less than your property tax bill. Your lender will adjust the amount every year or so to realign the two.For example, your tax bill might be $1,200, but your lender may have collected $1,100 or $1,300 in escrow over the year. Deduct only $1,200. Your lender will send you an official statement listing the actual taxes paid. Use that. Don’t just add up 12 months of escrow property tax payments.
Error #3: Deducting points paid to refinance
Deduct points you paid your lender to secure your mortgage in full for the year you bought your home. However, when you refinance, you must deduct points over the life of your new loan. If you paid $2,000 in points to refinance into a 15-year mortgage, your tax deduction is $133 per year.
Error #4: Failing to deduct private mortgage insurance
Lenders require home buyers with a downpayment of less than 20% to purchase private mortgage insurance (PMI). Avoid the common mistake of forgetting to deduct your PMI payments. However, note the deduction begins to phase out once your adjusted gross income reaches $100,000 and disappears entirely when your AGI surpasses $109,000.
Error #5: Misjudging the home office tax deduction
This deduction may not be as good as it seems. It often doesn’t amount to much of a deduction, has to be recaptured if you turn a profit when you sell your home, and can pique the IRS’s interest in your return. Hampton’s advice: Claim it only if it’s worth those drawbacks.
Error #6: Missing the first-time home buyer tax credit
If you met the midyear 2010 deadlines, don’t forget to take this tax credit into account when filing.Even if you missed the 2010 deadlines, you still might be in luck: Congress extended the first-time home buyer credit for military families and other government workers on assignment outside the United States. If you meet the criteria, you have until June 30, 2011, to close on your first home and qualify for the tax credit of up to $8,000.
Error #7: Failing to track home-related expenses
If the IRS comes a-knockin’, don’t be scrambling to compile your records. Many people forget to track home office and home maintenance and repair expenses. File away documents as you go. For example, save each manufacturer's certification statement for energy tax credits, insurance company statements for PMI, and lender or government statements to confirm property taxes paid.
Error #8: Forgetting to keep track of capital gains
If you sold your main home last year, don’t forget to pay capital gains taxes on any profit. However, you can exclude $250,000 (or $500,000 if you’re a married couple) of any profits from taxes. So if you bought a home for $100,000 and sold it for $400,000, your capital gains are $300,000. If you’re single, you owe taxes on $50,000 of gains. However, there are minimum time limits for holding property to take advantage of the exclusions, and other details. Consult IRS Publication 523.
Error #9: Filing incorrectly for energy tax credits
If you made any eligible improvement, fill out Form 5695. Part I, which covers the 30%/$1,500 credit for such items as insulation and windows, is fairly straightforward. But Part II, which covers the 30%/no-limit items such as geothermal heat pumps, can be incredibly complex and involves crosschecking with half a dozen other IRS forms. Read the instructions carefully.
Error #10: Claiming too much for the mortgage interest tax deduction
You can deduct mortgage interest only up to $1 million of mortgage debt. If you have $1.2 million in mortgage debt, for example, deduct only the mortgage interest attributable to the first $1 million.This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances.
*Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.
Source: NAR, Bob Meighan CPA and vice president at TurboTax and Dave Hampton CPA and tax manager of Burke & Schindler
Tuesday, February 1, 2011
Water Service
The Department of Public Utilities (DPU) has established procedural changes regarding “taking contracts” (when the new buyer calls and wants to transfer or turn on water/sewer service in their name) from customers requesting water/sewer service. DPU realizes there may be delays in getting a deed recorded so they have instituted a new policy to “take the contract”. It will now be their policy to take a contract for water/sewer service from a customer stating they are purchasing a property, even though they may not be the recorded deed holder at the time of the call.
DPU still needs one business day notice and access to the inside meter to take a reading to close out the previous customer and start service under new owners name. Sellers can still order turn off (one business day notice) service. If the buyer calls before DPU turns off the service there will be no interruption of service. If the water is off they "contract for service" and DPU will turn on in one business day.
Source: Toledo Board of Realtors
DPU still needs one business day notice and access to the inside meter to take a reading to close out the previous customer and start service under new owners name. Sellers can still order turn off (one business day notice) service. If the buyer calls before DPU turns off the service there will be no interruption of service. If the water is off they "contract for service" and DPU will turn on in one business day.
Source: Toledo Board of Realtors
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