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If you know that the home you are buying my have to be sold within a few years, you have a few extra items you need to pay attention to prior to purchasing. This is particularly true if you’ll need to sell within a short time period due to a job transfer or similar pressing requirement.

So, while these suggestions are true for everyone that will want to resell their homes eventually, if you know that you’ll have to sell at short notice, you’ll want to add these suggestions to your home search.

Pay attention to the view:

Homes with a pleasant view out the windows will sell more quickly and at a premium to homes with a less pleasant view. While you should buy a home that you plan to live in with your own pleasure in mind, when reselling, what the buyer sees out the window has an impact on the sale.

Avoid views with the following:

• Water towers — in may parts of the country, you cannot avoid a water tower, but if the angle of the view can avoid having the water tower in the direct line of sight, your resale value will be higher and your home will sell more quickly.
• Power lines — for the same reason as the water tower, a view of power lines can impede a quick sale. In addition to the view aspect however, many people subscribe to the belief that high voltage power lines emit electromagnetic radiation that can cause illnesses and cancer. While much of the research is inconclusive, and power lines emit extremely low frequency (ELF) radiation (according to the American Cancer Society), the belief that they could cause a problem will hinder a quick sale.
• Railroad tracks — this is especially true for freight trains, but any home with a view of tracks might have in impediment to a quick sale.
• Retail establishments — if your home backs up to or is across the street from retail stores, restaurants, bars or other businesses, you may face a slower selling experience. For example, while there may be a high block wall between your backyard and a car wash, the sounds of the dryers or the potential for extra traffic into the neighborhood may hinder a quick sale.

How do you avoid these potential pitfalls?

When you look at a home to buy, check the view from EVERY window. Take the time to visit the property at different times of the day, especially if there are retail establishments nearby so that you can gauge the traffic and noises that that may come from them.

What if your home already has a water tower or power line in view?

When you’ve purchased a home and did not buy with the view in mind, or if the view has changed, there are some things you can do.

• Plant trees — If you can plant a tree that adds beauty while blocking an unfavorable view, do so.
• Mitigate sounds — if you can hear noises from nearby retail establishments, railroad tracks or nearby busy streets or freeways, consider replacing the windows with more insulated ones and sound proofing walls to overcome some of these negatives.

As always, let your real estate professional know if you’ll potentially be needing to resell the home within a few years as we can best advise you for the local market.

Compliments of Virtual Results

Traditional real estate marketing says homes sell better in the Spring and that if you haven’t sold by the time school starts, you might as well wait until the weather warms again. But these days, real estate is anything but traditional.

In fact, some studies show that winter is now the best time to sell a home.

Any time from December to May can be ideal for listing your home and February often is the best month to list with the highest reported home sales within ninety days of placing a home on the market.

Real estate professionals know that home shoppers venturing out in January and February typically are motivated and serious. That means less time spent on just lookers and more time spent negotiating with actual potential buyers. Some locations experience bidding wars during these months because fewer homes are on the market.

Prepping

One challenge to selling during winter is that getting your home prepared to show is more challenging. While you might try major upgrades in the warmer months, if you want to sell in the winter months, consider simpler upgrades such as painting the front door a cheerful color or replacing granite countertops with quartz kitchen countertops. You might opt for refinishing rather than replacing to give your home an upgraded look without the expense.

If you’ve decorated with brighter paint colors, consider toning them down with some modern neutrals such as warm gray or café au lait. Using low VOC paints is easier on your family’s respiratory system when painting during winter months. Since you are less able to open up the house to air it out, low VOC (volatile organic compounds) paints allow you freshen your walls without the odors and toxins standard paints can release into your home.

Showing tips

If your home is going to sell in winter, you still need to remember the rules of curb appeal:

• Keep sidewalks and driveways shoveled and make certain they are not icy. The last thing you need is for someone to slip or fall when looking at your home.
• Make your home warm (but not stuffy) and inviting by lighting up all the rooms and even lighting the fireplace (if you or your real estate agent will be present during the showing).
• Remove icicles from your gutters and remember that crystal clear, clean windows gives the best first impression.
• Cozy up your home with comfortable throws on the sofa, but take care to remove textiles that contain pet odors since indoor odors can be magnified in the colder months.
• Have your real estate professional point out conveniences such as in-floor warming coils or the fact that your garage is insulated and heated, give a good check to the garage doors.
• Be proactive about having doormats so that visitors can wipe their feet as they enter.

As always, rely on the advice of your knowledgeable real estate professional for known value-added suggestions and preparations when getting your home ready to show to prospective buyers in the winter months.

Compliments of Virtual Results

Now that you’ve done all the hard work of qualifying for the loan, securing the mortgage and putting the deal in motion…you can start to shop for new clearance appliances you’ll need for your new home.

First up are kitchen appliances:

January is THE month to get great deals on appliances. Stoves and cooktops, wall ovens, dishwashers, trash compactors, refrigerators, washers and dryers, and disposals all typically are on sale at the beginning of the new year.

In the same way that car dealers sell of the old models of cars, new appliance models come out in the fall. But, appliance dealers make great deals on appliances in January to make room for the new models and to sell off floor models. In fact, because January typically is a slow month for retailers, you may even be able to haggle for items like free delivery and installation even on the newest model.

Price matching:

Always ask your favorite retailer about price matching, too. So if you prefer Best Buy, for example, to Sears or Lowe’s because it’s closer to your home or you get reward points, ask them to price-match the lowest prices you can find.

In fact, if you’re willing to go with last year’s model you’ll get the steepest discounts in January.

End of month or holidays:

If you can’t swing your purchase right now, consider buying your appliances at the end of the month. If your salesperson works on commission, the end of the month may be the time you can put your negotiation skills to work with a sales associate trying to reach a quota.

In addition to January and end of the month specials, most appliance retailers offer some sort of special corresponding to any of the major shopping holidays. These include: New Year’s Day, President’s Day (February), St. Patrick’s Day (March), Easter (March-April), Memorial Day (May), Independence Day (July), Labor Day (September), Columbus Day (October), or Black Friday (November). On these days you’ll get percentage off deals and specials on specific models or product lines.

The super deal:

In between these holiday sales events you’ll find the steepest discounts on open-box, scratch-and-dent or refurbished items. While you may fear these items, if you buy from a well-established retailer, you’ll get the same warranties as are available on a new, in-the-box item, but at a substantial discount. Tony MacFarlane from Appliance Hunter has more reviews worth reading.

Warranties:

In addition to the manufacturer warranties, you can purchase retailer extended warranty programs — also called service plans — for most appliances. While quality appliances should not break down within a couple years, sometimes they do. Given that refrigerators, washers and dryers and even ceiling fans now have electronics built in, you might want to consider one. Having an extended warranty can give you peace of mind as long as the price of the warranty doesn’t negate the great deal that you got. If buying the warranties puts the price out of reach, it’s not a good deal. Consumer Reports suggests putting that money aside instead and using it to pay for repairs down the line.

You might convince your seller to leave their appliances behind or to offer an allowance that would pay for new ones as part of the closing. Check with your real estate professional to see if you can add that to your deal.

Compliments of Virtual Results

Owners of older homes dream of updating or modernizing kitchens and baths. In fact, before they place their homes on the market, some folks go to all the effort to update the kitchen by  adding new appliances from stores like this williams refrigeration australia online shop.

The challenge can be when the update is for the purpose of increasing your home’s marketability or resale value. In that case, does the renovation really pay off? Here are some things to consider before you tackle that upgrade or renovations just to sell your property.

When it adds value:

Anything that increases your usable square footage adds value to your home. So, if you finish a basement or an attic space, add a wing or just extend a single room, that extra space and increase your home’s market value. Adding a bathroom or bedroom is a substantial improvement that changes a home’s category. A three-bedroom home with three full baths has more market value than a similar home with only two baths, or two bedrooms.

The biggest bang for you buck, however, can come from making some simple changes.

Consider this: a new front door, on average, adds up to 96.6 percent of the amount you will spend on it to the value of your home. Of course, you’ll need to pay attention to which door will enhance your home and which might look like an afterthought, but the right new door adds instant curb appeal. In fact, even painting the front door can bring a significant improvement (without the extra expense of replacing it).

Other improvements, such as replacing windows or worn and discolored siding as well as maintenance of your flat roofing with the help of a residential and commercial flat roofing contractor can yield a greater return than an expensive kitchen remodel.

Minor bathroom remodel and kitchen remodeling projects, on the other hand, can add back over 82 percent to the value of what you spend on them. A “minor” kitchen upgrade can be as simple as new cabinet doors and hardware, or new appliances, an updated counter surface and sink, or new fixtures.

When it’s not worth it:

A $100,000 kitchen remodel on a $250,000 home will yield anywhere near that additional value to your home, especially if all of the other homes in the neighborhood are in the same price range. So, if you upgrade it while you’re living in it because your love to cook and want the perfect kitchen … the value is your enjoyment of the upgrade. Don’t expect it to increase your home’s resale value by that much though when the time comes to sell.

Another upgrade that you should only undertake for your enjoyment is the addition of a pool. In general, a pool does not increase the value in many locations. So, while a pool may be highly sought after in Southern California or Texas, it could even be a detriment in Missouri or Tennessee.

When it doesn’t pay off:

If you increase the value of your home while you continue to live in it, realize that you may be increasing your tax basis as well. A new assessment of your home may increase your taxes and cause it to be more expensive to live there. Simple improvements such as adding a garden shed can trigger a reassessment in some localities, while moving a wall or putting in an additional bath or bedroom most certainly will.

Before you take on an improvement, addition or upgrade for the purpose of increasing your home’s marketability, talk to your local professional real estate agent. She can discuss with you the potential ramifications of the changes you want to make, the return on your investment and whether or not it could trigger a tax assessment and property valuation increase.

Compliments of Virtual Results

If you bought a new home in 2015, here are some things to think about as you get ready for tax season:

Mortgage Interest

One of the biggest perks of owning your own home is the benefit of deducting your mortgage interest. You can deduct home mortgage interest if your file Form 1040 and itemize your deductions on Schedule A (Form 1040). It is important to note that the mortgage must be a secured debt — that is, for example, that your home is the security for the mortgage — and that you have an ownership interest. Both you, and your lender, must intend that you will repay the loan.

The amount you can deduct depends upon the date and amount of the mortgage, and how you used the mortgage proceeds.

If this is your first home mortgage, you may want to seek the advice of a tax professional to make certain you get the complete deduction due to you and that your set up the original tax basis correctly.

Points

Points are the prepaid interest you offered at your home’s closing in order to get a better interest rate on your loan. When the points you paid meet certain criteria, they may be deductible on your income taxes. This is another area to discuss with your tax professional, since certain unusual transactions are not allowed.

PMI

Private mortgage insurance (PMI) is insurance meant to protect your lender in case of default. Some mortgages require PMI as a condition of the mortgage for a first-time buyer or for a smaller down payment. If you paid PMI, you MAY be able to claim a deduction if you itemize, and meet certain requirements. Do not assume that your PMI is deductible, however, since Congress determines from year to year whether or not PMI deductions are allowable.

Real Estate Taxes

Your state, county or city governments typically charge what is known as an ad valorem tax based on the value of your home. Many lenders add the potential amount of your ad valorem taxes to your payment amount and then place that amount in an escrow account. When your property taxes come due at the end of the year, your lender makes the payment for you. This should be detailed on your monthly statements. If you pay property taxes, you often can deduct these from your income taxes on your itemized Schedule A.

As you prepare your tax documents with the Metric Accountants, keep track of your other potential deductions — for charitable donations, as an example — because it is the total of all of these that works together to give you the biggest deduction on your taxes, since it has to be more than the standard deduction.

If you sold a home to buy a new home and made more on the sale than the cost basis of the new home you may owe taxes on the profit. There are special circumstances that can keep you from owing on these gains, so this is an area to discuss with your tax professional as well. Visit https://landmark24.com/moveinnow/ to check what the requirements are when you buy and move in.

It seemed so perfect on the showroom floor…

Then you get it home and no matter how you try it, you just can’t make that furniture fit in the space of your new home!

What to do? Plan ahead (duh!) or work a plan with what you already have.

Here’s how to get started:

• Measure each room. Don’t just measure once—measure twice. Write it down.
• Measure the spaces from the corners to the windows and doors. The great Window Experts in dublin reminds to write it down.
• Measure the width of each window and door. Write it down.
• Measure the height of the walls, windows and doors. Write it down. (You see a theme here, right?)
• Sketch out a simple floor plan with your measurements. You will use your simple floor plan to create a more sophisticated one using a free online floor plan tool like this one at Room Sketcher or any of the tools located Room Sketcher and several other floor plan tools allow you to design in two dimensions and then view in 3d interior visualizations to get a better idea how it will look. A 3d animation services like FUSE has experts in 3D design, photorealism, and animation, who can be the perfect virtual partner to support you anywhere, anytime. They can bring your product to life virtually with photoreal 3D design.

It’s very important to include windows and doors in your plans, make sure to check out the price of double glazed windows which are very resistant. And don’t forget to locate heating and air conditioning vents and returns, power outlets, light switches and cable and Internet connections.

If you already have furniture that you are trying to fit, measure its length, width and height and any clearance it might need—such as the footrest to a recliner or the doors to a television cabinet. This is especially true if parts of the furniture extend even slightly beyond the footprint. Choose the nearest approximation from the floor plan tools to include in your layout.

Modernise Furniture Us is a leading provider of contemporary home decor for your indoor and outdoor spaces. Modernise.us is a Houston based business that is a global leader in unique home designs.

When you’re done, you’ll be able to rearrange your furniture virtually, without breaking your back, to see if it will fit.

Old School:

If you find the online tools difficult, go old school with a diorama. Create rooms from cardboard boxes and cut in doors and windows. Create furniture to scale from pieces of cardboard or stiff paper. You can rearrange these as many times as you need to quickly see if your furniture will fit.

Or, grab some grid paper and a ruler and draw out your rooms and then furniture from the “top view.” While this method only offers a 2D view, it is quick and easy. If you want specific instructions, check out this guide from Decorating Studio’s archives.

Getting Help:

If none of these ways seems helpful to you, make a trip to your favorite furniture store (with your measurements in hand) and get a room designer to help you. Along the way, they’ll be able to show you which wicker furniture or handcrafted amish furniture pieces in their showroom will work for your situation.

Eeeeek! Rates are going up … or are they?

Last week, for the first time after years of historically low rates, the Federal Reserve decided to raise short-term interest rates. For homebuyers, any rate hike often is seen a negative, but here are some reasons why this rate increase is good.

First of all, understand that the interest rate hike was NOT on mortgages. The Federal Reserve does not directly control interest rates on mortgages. What the Fed does control is the overall money supply. By raising interest rates at the Fed level on the “Federal Discount Rate,” they have begun a trickle-down effect that will begin to tighten the money supply. This makes it more expensive for commercial banks to borrow money and so decreases the amount of money available for short-term borrowing.

1. It’s a good sign

For the Federal Reserve to take such a bold step after years of low rates means that the Federal Reserve Board believes that the economy has improved enough that it can withstand an increase. Because the Federal Reserve has a mandate to achieve maximum employment rates AND keep prices relatively stable (curb inflation), raising rates means that employment levels have improved. An improved economy is a good sign that homebuyers will be able to afford to buy a home.

2. It does not directly influence mortgage rates

The discount rate does NOT directly influence mortgages. Mortgage-backed securities (bonds made up of pools of mortgages) track with the percentage yield on 10-Year U.S. Treasury bonds. Regular mortgages follow the mortgage-backed securities. While some mortgage rates increased slightly after the announcement, the bond markets have not settled on rate hikes, so the could end up either higher or lower once it becomes apparent how the economy reacts to the Federal Discount Rate increase.

3. It should be a slow increase

Because of the dual mandates of the Federal Reserve (low unemployment and stable pricing), the increases should be gradual rather than quickly increasing hikes because the Fed needs to make certain the economy is keeping pace with the increases. While it seems counter-intuitive, the Fed would like to see inflation rise slightly and this move is one way they can affect inflation in a gradual manner.

4. It might be good for your bottom line

Yes, your mortgage rates might increase a bit, but so will the interest on your savings accounts and securities. You’ll begin to see higher offerings on CDs and other interest-based income streams.

5. It’s still historically low

The current generation of homebuyers has not experienced high rates. Most millennials or Generation Xers do not remember when mortgage interest rates were in double digits and may fear the worst, but the changes in mortgage interest rates, at least for the near term, won’t increase their payments by more than their designer coffee or energy drink habits.

As always, if you have questions about the housing market, contact your real estate professionals. We stand ready to help you make sound decisions on the home of your dreams.

Compliments of Virtual Results

If you’re entering your retirement years, you may be considering buying a second home in a warmer (or cooler) clime. Perhaps your goal is to escape the winter weather. Or, maybe you want a home nearer to the grandkids.

Whatever your purpose for wanting that second home, here are some things to consider as you make that decision:

Income Tax

Several states do not have state income tax. Creating a second home in one of these states could reduce your tax burden. These include Alaska, Florida, Nevada, New Hampshire*, South Dakota, Tennessee*,Texas, Washington and Wyoming.

*NOTE: While New Hampshire and Tennessee do not require residents to pay income tax on regular wages, they do tax dividend and interest income.

However, it is important to note that different states tax retirement income differently, and others have very specific criteria that identify your responsibility to pay income tax in that state even if you only live there a few months of the year. Before you buy a second home in a different state based on an income tax strategy, speak with a knowledgeable tax advisor. For more information on state income taxes, check here.

Property Tax

Another tax that can wreak havoc on your retirement savings is property tax. Just because a state does not have income tax, it may not be the best place for you to set up your retirement residence. For example, Texas does not have state income tax, but Texas is among the 10 states with the highest property taxes, as is New Hampshire. Even so, your personal tax burden may benefit from shifting your state of residency to one of these states, so again, discuss your specific situation with you tax advisor.

Access

Of course, if access to your grandchildren is of primary concern, you’ll want to move as near to them as possible, so the tax consideration might be low on your list. If not, be sure you have access to the things you do want.

As you age, however, the possibility that you might become ill rises. Make certain that along with access to your family you have access to top-notch, affordable medical services. Investigate local access to care before you buy your second home.

Alternative Income Stream

Some folks buy a second home for possible rental income, planning to move into the home after retirement. If this is in your plans, here are some things to be aware of: Regardless of what you might read or hear about holiday rentals, they don’t always pay for themselves. Most holiday areas have high seasons and low seasons. If you can’t make enough rental income in the high season to cover the entire year, this might not be a good option for you. Even in resort area, inclement weather can take a big bite out of your potential rental income. Additionally, you still have all of the costs of maintenance, upkeep, insurance and repairs to contend with. Of course, with online rental portals like airbnb.com or homeaway.com you might have an easier time finding qualified guests these days. Most experts warn that rental income from holiday rentals rarely covers your entire mortgage though, so don’t plan on that as a motive to buy.

If you’re considering buying a second home for any of these purposes, consulting your local real estate expert is the place to start.

Compliments of Virtual Results

Plane tickets? Check. When you fly in one of Jettly‘s chartered jet, you will have access to a private terminal or lounge to relax in before you board your flight. These exclusive areas will allow you to prepare for your flight in a quiet and stress-free manner.

Suitcase packed? Check

Wrapped gifts packed? Check

House protected? Oooops!

If you’re planning on traveling for the holidays, don’t leave your home’s protection to chance. Coming home from a holiday trip to find your home has been broken into, or that a pipe has broken in your absence can ruin all those relaxing hours with family and friends.

While this is true for anyone, it is especially important that new homeowners take steps to safeguard their home while out of town.

Here are some of the basics:

Get a little help from your friends: Ask a friend to water plants, check on your house and pick up mail or newspapers.

If you’ve met your neighbors, you should let them know you will be away. Give them you phone number and the date you’ll get back. If you are having a friend check on your home or water plants while you’re away, let your neighbor know that too so they don’t accidently call the police on your friend.

Avoid posting to social media: In a world filled with tweets and posts that go out to the wide world, you can’t be certain that your posts of being away aren’t being viewed and monitored by thieves. Save your pictures to post after you’re back home. The memories will be just as sweet.

Lights, Curtains: All the world’s a stage…

While you’re gone, to make your home not appear empty, you might think about lighting up the rooms in the evening. This does not mean leaving the lights on in all the rooms the whole time. First off, that would seem weird, and secondly, it will give you a higher electric bill. The best course of action is to get timers and connect them to lamps. Have them set to come on and go off in each room as you would normally use that room. For example, from early evening to just prior to bed time in the living areas and in the bedrooms briefly as if you were getting ready for bed. You can find timers at many retail outlets and online for less than $10.

Regarding window coverings, keep them the way you usually do, but move electronics and other costly items out of sight.

Stop the mail: If you have mail or newspapers delivered to your home, suspend delivery while you are gone. The US Postal Service allows you to sign up online for most ZIP codes to hold your mail with the use of a credit card (for a nominal charge to prove identity).

What else should you do? If you have a neighborhood watch or community association, let them know to keep an eye on your place. Make arrangements with services to sweep leaves and snow off your walkways and driveway. Unplug appliances that have LED lights (coffee pots, microwaves, televisions, etc.) so that your electric bill isn’t huge when you get home. Lastly, if there is any chance of freezing weather, leave your furnace set to no lower than 56°F to keep your pipes from freezing. If you aren’t sure how well your pipes are insulated, open the cabinet doors below your sinks to let the warmer air circulate. You should also consider home insulation. You may contact professional foam insulation services for a spray foam insulation.

Now…go have a great holiday trip!

Compliments of Virtual Results

You’ve been saving for a downpayment and you’re almost there.

Almost!

You just need a little more money in that account and you can make an offer on your starter home. Now, your parents and grandparents want to give you a gift of money toward your new house.

Gifts for downpayments can come from a variety of sources. Mortgage lenders will let you use a cash gift toward a plethora of loan options as well. These include FHA loans, VA loans (which only need a down payment if they exceed the threshold), USDA loans, conventional loans and even jumbo loans. In fact, affording a twenty percent downpayment puts you in position for a conventional loan backed by the Federal National Mortgage Association (Fannie Mae) or Federal Home Loan Mortgage Corporation (Freddie Mac), potentially saving you money over the life of your loan.

Before you ask Santa for that gift, however, you need to understand how it should be wrapped! If not done properly, you might just end up with a lump of coal in your pocket.

Here’s the skinny of how it works.

When you accept a downpayment gift, you cannot just deposit it into your bank account and co-mingle it with the funds you have there. You need to follow the required process for documenting the gift so that your loan isn’t denied.

1. Write a “gift letter” that notes the following:

• The amount of the gift
• Who gave you the gift and your relationship to the giver
• A note specifying that the gift is REALLY a gift and not just a loan you’ll have to pay back in the future
• The property address you intend to buy
• The signatures of the givers and the recipients
• Don’t add anything extra to your gift letter either. Make it simple and strait forward.
• Write a separate letter for each gift

2. Keep a paper trail:

The gift should be in the form of a check in the exact dollar amount you noted in your letter. (Do not just have the money transferred to your account.)

• Make a photocopy of the check
• With the check in hand, take it to your bank (the same bank your other downpayment money is in) and deposit that check alone (nothing else in the transaction) into the account.
• Make certain you get a receipt

If you receive more than one gift, deposit each one separately and get a separate receipt for it.

When applying for your loan, give copies of the gift letters along with copies of the checks and deposit receipts to the underwriter. Your underwriter will use the letters in the effort to get your loan approved and funded.

One side note: there may be tax implications for both the givers and receivers of financial gifts. Be sure to check with your tax advisor if you have questions or to find out how a gift might affect your situation.

If you have questions about other ways to come up with a downpayment, your real estate professionals can point you in the right direction.

Compliments of Virtual Results