Real Estate and *stuff *
A real person helping real people with real estate
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Home owners win two important tax benefits in the fiscal cliff deal
January 5, 2013
The fiscal cliff deal Congress passed this week lets home owners keep the tax deduction for private mortgage insurance payments. It also says troubled home owners won’t owe income tax on amounts forgiven during a mortgage workout or foreclosure.
PMI is what you pay your lender each month if you put down less than 20% on a home, which protects the lender if you default on the home loan.
Without mortgage cancellation relief, home owners who have a portion of their mortgage forgiven as part of a workout plan, short sale, or foreclosure would have to pay income tax on the forgiven amount. This will keep the market moving forward!
In addition, the American Taxpayer Relief Act of 2012 lets home owners continue to keep up to $500,000 ($250,000 for individuals) in home sale profits tax-free. Only home sellers whose income is $450,000 or above (or singles earning $400,000 or more) and who net more $500,000 on the sale of their home would pay taxes on the excess capital gains. For the vast majority of home sellers, there’s no change.
For those earning above the $400,000-$450,000 threshold, the cap gains rate would rise to 20% from 15%.
Congress extended the tax deductions for all mortgage insurance premiums and for state and local property taxes, which, along with the mortgage interest deduction, are important tax considerations for home owners and buyers.
Stink Bug Invasion! It’s as Bad as You Think
September 27, 2012
Stink bugs are coming (again)! In fact, they’re already here, and the government is searching for ways to wipe out the little stinkers.
An army of stink bugs has marched into 38 states, and the federal government is scrambling to find ammunition to take them down.
Brown marmorated stink bugs, a Chinese import, are invading homes, orchards, and vineyards; eating fruit, buzzing overhead, and staying warm until they can emerge and lay eggs in spring.
If last year’s stink bug invasion wasn’t bad enough, this fall’s invasion is the second one this year — which presages an even bigger onslaught in 2013, says Tracy Leskey, an Agriculture Department entomologist.
“This has been a very good year for the stink bug,” Leskey told the The Examiner in Washington, D.C.
Entomologists are deep into R&D to find ways to wipe out the stink bug. Front-runners include baited traps and natural stink bug enemies, such as the wheel bug, a bug assassin that injects a paralyzing enzyme that turns stink bug innards into porridge, which the wheel bug sucks up.
The best way you can keep stink bugs at bay is to seal your home up tight, like you do in winter to lower your heating costs.
- Close doors and windows
- Fill cracks in siding, window screens, and HVAC vents
- Install weather stripping
- Plug outdoor outlets
If stink bugs already have invaded your home, grab them with toilet paper and flush them down the toilet. Or, drown them in a jar of soapy water.
Do not squish them, which will release the stink that inspired its name, or vacuum them up, which will make the machine smell.
I gun down stink bugs in my house with my trusty Bugzooka.
Have stink bugs invaded your home? How do you get rid of them?
Do you have questions about today’s real estate market?
May 16, 2012
Questions like…
- Do I need 20% down to avoid PMI?
- How long do I have to wait after a short sale or foreclosure?
- Do I need perfect credit?
- When does the market hit bottom?
- Where is the best place to buy?
- How much will I save?
- How much are closing costs and fees?
- What is the current rate?
We have answers!
Come to our FREE networking meeting about how to make the money you spend in rent WORK for you! Find out more about today’s real estate market, investment opportunities and the true cost of not being a home owner. No obligation, just show up with your questions. Join Wes and myself for a relaxed, no obligation meeting to find out the answers to the questions you have.
WHEN: Two dates to choose from: May 17th or 24th at 6pm to 7:30pm
WHERE: Prestige Home Mortgage 45 Lyman Street Westborough MA – Terrace Level10 Million Underwater Homes…video blog on a possible solution?
February 16, 2012
My recent addiction to this video blog is becoming a solid part of my morning routine. From the just the title of their blog “Think Big Work Small” to this quick report on a possible solution to the current housing market crisis proposed by Senator Menendez. Excellent way to keep up on things without having to read the entire proposal…and I love their comment at the end that even if this isn’t a perfect solution…it’s better than the road we’re on now!
Another take on the big mortgage settlement…
February 11, 2012
These guys are great and in this video they recap an excellent way to qualify for a VA Loan if you’re currently unmarried and a real person’s look at the robo-bot settlement with the major banks.
End-of-Year end Housing Tips – How to Save Your Money Using Your Home – Video with Alex Charfen on Fox and Friends
January 3, 2012
I want to circulate this video interview on Fox and Friends that featured Alex Charfen because as I was watching it, I realized it is a very complete 5 minute overview of the housing market today. This is some great information for buyers, sellers, investors and realtors. I have recapped his main points in case you don’t have the time to watch the video.
Video link: http://youtu.be/fd7LHQV4y9A
Main points:
Tip #1: This is PRIME time for home buyers and investors: Alex points out that we are at record or near-record low interest rates and property values have dropped between 30% and 50%. We are only expecting single digit decline in the first part of 2012. “Buying at the bottom” is something that only happens if you are truly lucky and we are at bottom by all accounts.
Tip #2: Review your property tax bill carefully: if the value of your property has come down – you should only be paying taxes on the value. There are services that can help you change the property tax value or you can approach your town yourself with an abatement request.
Tip #3: Take advantage of home energy tax credit programs: consult with your tax accountant to see what energy improvements you made to your current home during 2011 will qualify for a tax deduction on your federal return.
Tip #4: Right size your space: Up until about 2007 the thought was “bigger was better” but that has reversed and people are looking for smaller spaces. The thought behind this is that it’s not just the purchase price of the square footage but it’s also the insurance, heating and cooling costs that go into maintaining a larger amount of square footage. If you can “right size” your space, then you can lower your overall expenses.
Tip #5: Be water wise: some areas have very expensive water bills so watch your appliances, washing machines and landscaping. Zero-scaping is a concept that has zero water usage for landscaping. The overall cost of owning a home can be reduced by being “water wise”.
Short sales and Foreclosures: Foreclosure is absolutely the last alternative and worst-case scenario for a troubled home owner – a record number of short sales were approved in 2011 and banks are more willing than ever to work with these deals. Chase, Bank of America and Wells Fargo are, in some cases, paying the home owners to short sale and move on to a different property.
On average, all the banks have improved their short sale processes and the transaction is almost as fast as a normal transaction. Short sales a dignified solution to a traumatic financial crisis for many homeowners. Find a real estate agent that understands short sales (easily identified with the CDPE designation) and that will shorten the process as well.
Will Housing Market Benefit from Good News Out of Black Friday Chaos?
December 2, 2011
While shoppers were trampling each other to get the season’s hottest stuff, a glimmer of hope emerged for the economy. Does it have legs?
A woman pepper-spraying her fellow shoppers to better her chances of getting an Xbox. A crowd of people stepping over the body of a heart attack victim, worrying less about his fate and more about their Christmas purchases. Violence, mayhem, and chaos seemed to be the stories making headlines on Black Friday.
Despite this bad behavior, the traditional first day of holiday shopping was a big success for the nation’s retailers, and a sign of life in what has been a bleak year for the American economy. Black Friday sales increased 6.6% over the same day last year, according to ShopperTrak. That amounts to $11.40 billion in retail purchases and the biggest dollar amount ever spent during Black Friday.
Cyber Monday outshone last year’s numbers, too.
But will this seasonal boon for retailers continue beyond the New Year — and translate into a broader economic recovery that affects other industries, such as housing?
The Thomson Reuters/University of Michigan final index of consumer sentiment rose to 64.1 (out of 100) in November, the highest since June, from 60.9 in October. The Michigan survey’s index of current conditions, which reflects Americans’ perceptions of their financial situation and whether they consider it a good time to buy big-ticket items like cars, increased to 77.6 from 75.1 the prior month.
All of this seems to be good news. But we aren’t out of the woods. The housing sector remains a problem. Bloomberg News quotes analyst Michelle Meyer, a senior U.S. economist at Bank of America: “Demand for new construction remains weak … Builders are still competing with the significant overhang of existing homes for sale. Overall, the housing market remains out of balance, with much more supply than demand.”
A NATIONAL ASSOCIATION OF REALTORS® survey shows the unsettled and variable story of housing, with sales of previously owned homes rising 1.4%, but prices dropping 4.7% between September and October. Distressed properties, including foreclosures and short sales, made up 28% of those purchases.
What does this all mean?
Consumer confidence is inching its way back up, but housing is still a big drag on the economy’s future growth. Policy makers should take note, and avoid doing anything to make the housing market worse. Give consumers confidence that they can buy homes now (deals and rates are great!), and won’t face any change in the rules (especially the elimination or reduction in the mortgage interest deduction) in the future.
We’re seeing some signs of life in the economy. Let’s hope it continues and policymakers build on the momentum.
Do you think the Black Friday numbers indicate a general uptick in the economy, or is it a seasonal blip?
Where did the whales go?
November 10, 2011
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Where did the whales go today? Fred and Ethel are a pair of whales that one lucky member of BNI group get to carry with them for a week in between our meetings. BNI is largest business networking organization in the world and I would be happy to chat with you about if you are interested in finding our more. BUT…back to the whales…the whales are awarded to the BNI member with the best 50 second commercial and I won them this week!
I thought it would be fun to see where the whales go for a week…
Here we are leaving the Whale Home Base in West Bolyston. The whales dutifully come to every meeting at 7am on Thursday mornings for an hour and a half. We meet in the basement of this church because it’s cheap, nice space. Big room, lots of tables – great for networking.
Here the whales are taking some exterior pictures of a property in Worcester. This property is being valued by a bank as part of a bankruptcy case. Part of my job unfortunately consists of performing market evaluations on properties in foreclosure or about to be foreclosed on. We are expecting to see an increase in foreclosures in the fourth quarter. This makes the whales sad because there are a number of options for distressed property owners. If they were able to reach out ahead of time (when their financial trouble start) I can help them!
Here the whales are at yet another property in Worcester that they need to process a valuation on. The whales are getting tired on this rainy Thursday morning because there are 8 properties on their list today. EIGHT! In one day! For just one Realtor! Multiple that into the number of Realtors there are and it’s staggering. One in eight homeowners on average across the country are in financial distress and either behind in their mortgage or in foreclosure. *whew* the whales are shocked at the news and we had a long conversation about the various options for these people…such as modifications, short sales and legal consultation.
The whales stop to refuel. It’s a little known fact that whales actually survive on caffeine alone for most of the week. Truly. I think I saw that on a NatGeo special.
Ah-ha! The whales are excited! We just got word that we have short sale approval on a house in LESS THAN 30 DAYS! That’s amazing! These home owners will be free of their financial burden and can start to put the rest of their lives back together by the first of the new year! What a great way to spend the afternoon! Processing HUDs, submitting backing information, dotting all the “i”s and crossing all the “t”s. Another little known fact about whales is that they are detail orientated. Really…I think I saw that on the same show.
It’s a rainy evening without any appointments for a change and the whales have decided to celebrate their WIN today with the short sale approval by having a cool frosty one while reviewing tomorrow’s schedule and making sure everything is ready.
The whales did good today in their first “real” day of real estate with a RE/MAX Realtor! Let’s see how they do tomorrow!
Energy Monitors: Seeing is Believing — and Saving
October 28, 2011
Energy monitors make managing your power consumption enjoyable and easy to do. And we’re using energy today! BRR!
The Prius Effect in your living room
Researchers have shown that the well-known hybrid car saves energy for two reasons: It efficiently uses both gasoline and electric power, and it also provides a display screen that lets drivers track their real-time MPG efficiency.
Various environmental reports have suggested that home-based energy monitors have the same effect–keeping an eye on the display screens encourages savings of up to 10% of a home’s heating and cooling costs.
Do-it-yourself monitoring
Energy usage monitors are readily available and affordable. A system like TED–The Energy Detective ($120 to $455)–has a measuring unit connected to your home’s circuit breaker panel. Data, such as energy consumed in watts and dollars, is sent to another unit called the Gateway, which delivers energy usage info to your computer or wireless dashboard. TED stores up to 10 years of data.
Similar systems are available from Blue Line ($100) and the upcoming EnergyHub.
Smarter meters
Utility companies are starting to replace analog electricity meters with digital smart meters that offer two-way communication, allowing utilities to regulate energy distribution more effectively. Smart meters transmit info via a secure radio frequency network so that utility workers don’t have to brave growling dogs and muddy side yards to read your meter.
If your home is one of the early adopters, you can track your hourly energy usage through your utility’s web-based application. That way, you can discover when in the day is electricity the cheapest, and schedule laundry and other power-hungry tasks for that time. In addition, your utility can send you a detailed electricity bill instead of an estimate of charges.
Smart meters also can transmit data to indoor display units that work like off-the-shelf energy usage monitors. A smart meter also can include details on gas usage.
Note that smart meters require professional installation by your utility, so call to find out if your home is on their roadmap.
Google your savings
If you want more use out of the real-time data, Google’s free PowerMeter is an advanced web-based graphical application that works with your home’s smart meter or energy monitor to track usage over time, set energy savings goals, and predict your energy bill based on usage.
The software can help you tailor your usage to bring down costs. It’s available through devices such as TED and utility companies such as San Diego Gas & Electric.
Affordable portables
If outfitting your entire home for energy monitoring isn’t feasible, you can still track the energy use of household items with the small, portable Belkin Conserve Insight ($30). It can tell you an appliance’s usage in dollars, carbon dioxide emitted, and watts consumed, and it offers monthly and yearly estimated costs.
Similar devices from Kill A Watt EZ include an energy usage monitor power strip, and range from $16 to $60.
Story telling at “Come Share the Spirit Open House” last night
October 20, 2011
We had a fantastic time with our guests and invite you to come see this beautiful Victorian for yourself! 11 rooms, 6 bedrooms and 2.5 baths with a stunning front entrance staircase, fireplace, pocket doors and hardwoods throughout. Modernized with blown-in insulation, pellet stove and new furnace. There is also a two story barn, two car garage and swimming pool!
Real Estate and *stuff * 