Home > Archives for November 2013 > Page 2

Archives for November 2013

2 types of energy tax credits to take by year end

In February, the federal tax credit was reinstated for energy efficient home improvements made in 2012 and 2013. A tax credit is a direct reduction of taxes due. It can be better than a tax deduction that only reduces taxable income.

The energy tax credit now has a $500 lifetime cap for qualified energy efficient upgrades to your existing principal residence, but the deadline is December 31. New homes and rentals do not qualify. You’ll find all the details on: http://www.energystar.gov/taxcredits. The highlights:

1. Tax credits for 10% of the cost. You may claim a tax credit of 10% of the cost of certain energy-saving upgrades. These include qualified insulation, windows, roofs, and doors, with a $200 limit for all doors.

2. Tax credits for the full cost. You can claim tax credits for the full cost of specified types of “qualified residential property,” but only up to certain caps. For example:

  • advanced main air circulating fan – $50
  • natural gas, propane, or oil furnace or hot water boiler with annual fuel utilization rate of 95 or greater – $150
  • electric heat pump water heater with minimum 2.0 energy factor – $300
  • electric heat pump or central air conditioner that achieves the highest efficiency tier of the Consortium for Energy Efficiency – $300 each
  • natural gas, propane, or oil water heater that has either a minimum energy factor of 0.82 or a minimum thermal efficiency of 90% – $300
  • biomass stove that uses “plant-derived fuel available on a renewable or recurring basis” (see site for details) – $300

You’ll need to file IRS Form 5695 with your tax return and have the Manufacturer’s Certification Statement that the item meets the efficiency requirements on theenergystar.gov website. That site also lists a few alternative energy items (such as solar panels) that qualify for tax credits after December 31.

Please consult a tax professional before making any purchases you think will qualify for a tax credit.

6 KEY FALL CLEANUP AREAS

  1. Lawn. Mow until the first frost, keeping the length above 2.5″. Rake leaves that smother and kill grass. Rake up excess grass clippings using an iron rake or thatch rake. Check with a garden pro whether to aerate and fertilize.
  2. Garden. Ask a local expert which plants to fertilize before the first frost. For example, you won’t want to fertilize roses because it discourages winter growth and makes them vulnerable to extreme weather.
  3. New plantings. For a nice spring bloom, plant bulbs such as tulips, daffodils, and hyacinths. Day lilies and dahlias are also good for fall planting. To fill bare spots in your lawn, plant cool-season grasses such as perennial rye, bluegrass, and fescue.
  4. Deck or patio. Sweep off leaves and debris. Cover patio furniture or remove and store if you have space. Wipe each piece with damp cloths and dry with towels. Remove or cover your grill and store it if possible. Remove mildew on decks with a solution of 3 quarts of water to 1 quart oxygen bleach and 1/4 cup of ammonia-free liquid dishwasher detergent. Put this in a garden sprayer and apply liberally. Let it set for 10 to 15 minutes.
  5. Gutters. After most of the leaves have fallen, clean out and repair your gutters. Clogged and leaky gutters can flood the basement and cause other water damage to your home when snow melts.
  6. Hoses and Mowers. Disconnect garden hoses and store inside. Turn off water supply at shutoff valve inside the house and open the outdoor spigot to drain it. Drain the gas from your lawn mower and sharpen or replace blades on garden tools.

Going Once, Going Twice…Sold! Put Together an Offer the Seller Won’t Refuse

Submitting an offer on a home and waiting to hear back is one of the most stressful parts of the home-buying process. Since there is always room to negotiate when it comes to price, you want to be sure to put in an offer that the seller can’t refuse or you risk losing your dream home to someone with a higher bid.

While prospective homebuyers are often unaware of current trends in the real estate market, many typically rely on advice and guidance from their parents, friends and coworkers who don’t necessarily have a good pulse on the real estate market.

That’s why educated buyers who have spoken with their agent about an acceptable offer will have a better chance of hearing “sold” when the phone rings. Not only will a good agent offer valuable information, they can also help you buy the home you want at the price you want to pay.

Real estate agents have access to statistics and trend information that others don’t, so their advice is invaluable. But when it comes to submitting an offer, it’s important to keep in mind that it’s about more than just the money. In fact, there are several things you can include in the bid to help foster a successful deal.

When it comes to getting a bid accepted, first-time homebuyers often have a significant advantage over repeat buyers because their agent is instrumental in advising them to not only take the time to get pre-qualified, but to also be pre-approved for a mortgage before they even begin looking for a home. And since they don’t have to wait for another house to sell, their offer will be attractive to someone looking to sell a home.

Another thing to keep in mind is the fact that sellers are typically attracted to “clean” bids. A clean bid is one in which the buyer doesn’t ask for any contingencies, repairs or updates to be done. In the end, sellers are happiest when they can simply collect their money and move out quietly.

Buyers should also plan in advance to have funds available for a fast closing. Many agents will tell you that even if you’re not the highest bidder, your bid may still be accepted because you are willing to close right away.

Before making an offer, be sure to talk with your agent and decide what you’re willing to give up in order to have your bid accepted, as it could be the most important bid you ever place in your life.

For more information on increasing your chances of having your offer selected, contact our office today.

How to Survive Selling Your Home!

Once you’ve decided to sell your home, your agent should develop a selling strategy that attracts offers and a plan for overcoming the hurdles that can delay your sale.

Here are tips to smooth out potential bumps in the road before you even hit them and to make sure your transaction finishes as fast as possible.

1. Trust your agent – Hiring an experienced real estate agent will make the selling process a lot smoother.  Your agent is your best source of advice to position

your home favorably against the competition because they get nothing until your house is sold.  Tap into their insight on

  • showing prep tips for attracting motivated buyers
  • contractor referrals for sprucing up your property without breaking your budget.
  • common expectations and restrictions to save time and energy during negotiation.

2. Outwit the competition with incentives with other houses nearby or in the same price range for sale, it helps to sweeten the pot for a buyer who’s on the fence.  Throw in those floor to ceiling bookcases, custom window coverings or a flat panel TV. Talk with your agent about the best incentives to offer in your area and come up with a way to publicize them on all of your home’s marketing materials.

3. Expect to negotiate.  Offers and counter-offers keep your potential sale alive. Negotiations are less stressful when you decide in advance how low you’re willing to go early.  Ultimately, you decide what to accept, but talk to your agent early about your expectations and stay open to his or her advice on what price best in today’s market

4. Cement the deal with back up offers and research.  Your house is yours until you give a buyer the keys.  So, do the research and prep with a plan “B” in case something goes awry with your primary offer.