Excellent Link on Short Sales

Ok, so I've been trying to catch up on the latest in Real Estate News and blogging... I came across this excellent blog I think you'll enjoy, but more importantly in their article on short sales that seems too close for comfort. Short sales are what they are and becoming more and more common. I encourage everyone to check this out and become more familiar with them whether you're a seller looking for a way to avoid foreclosure, a buyer looking to save some money or an agent looking to learn more... each transaction is different and every bank seems to have their own set of rules.

http://www.raincityguide.com/2007/03/05/short-sales/

10 Most Common Home Defects

From "House Notes" Newsletter from The Inspection Company, LLC, February 2007, Volume 3 Issue 2.

1. Poor Drainage; Improper drainage can lead to water intrusion in the basement of homes and even severely compromise foundations.
2. Failing or aging heating and cooling systems; Older heating and cooling systems require maintenance and may be energy inefficient. There is also the risk that they can emit dangerous carbon monoxide fumes that are harmful to the family.
3. Environmental hazards; Older homes may contain lead-based paint, high levels of carbon monoxide, radon, toxic molds, and even asbestos.
4. Inadequate ventilation; This occurs when moisture accumulates in homes which damages interior walls and structural elements.
5. Improper Maintenance; Taking poor care of your household appliances can create consequesnces. Simple actions like cleaning out the lint trap in the clothes dryer can help prevent a fire.
6. Plumbing problems; The pipes under your sink can be made of incompatible materials that lead to dripping faucets, leaking fixtures, and slow drains.
7. Roof problems; The roof of your home may contain old or damaged shingles and improper flashing due to rain. The overall structure of the roof may be affected because of improperly installed collar ties and ridge beam supports.
8. No permit; Many homes do not have permits for finished basements, deck additions, hot tub, and pool additions. This can lead to unnecessary fines when putting the house up for sale.
9. Electrical safety issues; A home with an out-of-date or insufficient electrical system can lead to fires and electrical shock. Examples of other electrical safety hazards are ungrounded outlets, lack of Ground Fault Circuit Interrupters (GFCI), aluminum wiring, and faulty wiring conditions in electrical panels or elsewhere in a building. These are potentially hazardous defects and not to be taken lightly.
10. Rotted wood; Wood placed around areas that are frequently wet can begin to rot. Wood around bathtubs, showers, and toilets are espcially defective. The exterior of the home, including the outside trim of the house, decks, and roof eaves, should also be checked regularly for signs of rotting.

Check these areas of the home often to prevent damage and provide repairs when needed. The above suggestions may require professional assistance to ensure proper installation.

What The Homes Of The Future Will Look Like

The National Association of Home Builders predicts homes of the future will look like this:
* Ceilings will be high and flat or have decorative panels or domes.
* Living rooms will be gone, replaced by a den, parlor, or library.
* Dual closets will be standard in the master bedroom.
* Entry doors will be at least 6 inches wider han the 3-foot doors of today.
* Bigger garages with front-to-back parking.
* Open floor plans defined by ceiling panels, floor coverings, or pillars.
* Shower stalls will be bigger and may have multiple shower heads.
* Outdoor kitchens and fireplaces will be common.

Information courtesy of the "House Notes" newsletter provided by The Inspection Company.

Is Your Home Office Tax Deductible?

Is Your Home Office Tax Deductible?

You can deduct certain expenses if your home office is the principal place where your trade or business is conducted or where you meet and deal with clients or patients in the course of your business. Your home office will qualify as your principal place of business if you use it exclusively and regularly for the administrative or management activ- ities associated with your trade or business. There must be no other fixed place where you conduct substantial administrative or management activities.

Generally, the amount you can deduct depends on the percentage of your home used for business. Your deduction will be limited if your gross income from your business is less than your total business expenses.

Here are some basic facts to consider if you work at home:

A home office may qualify for deductions if you use it for administrative or management activities of your trade or business if there is no other fixed location to conduct such activities.
The home office deduction is available to you whether you rent or own.

If you rent, figuring your home office deduction is relatively simple. Just multiply your annual rent payment by the percentage of the total space occupied by the office. That prorated portion can also be applied to utilities, insurance, repairs and maintenance.

There are limitations to home office deductions based on your income. The taxpayer must be able to itemize deductions, using Schedule A. The home office deductions - along with other miscellaneous deductions - must exceed 2% of your adjusted gross income.

If home office deductions exceed net self-employment income, those deductions may be carried forward to the next year, again, only if the self-employed has sufficient net income.
For telecommuters, the business use of an employee's home must be for the convenience of the employer, and the employee must not be renting the office space to the employer.

5 Tips on Understanding Home-Office Deductions

Take advantage of every legal opportunity to reduce your taxes. Recent changes in the law benefit business owners who use their homes as an administrative and management base but work at other locations.

Ask your tax professional to analyze your business regularly so you don't miss important deductions.

Document deductible items. These usually include such costs as computers and other equipment, telephone charges, furnishings, and prorated portions of rent, utilities and home insurance. You may not deduct expenses for lawn care or those related to rooms not used for business.

If you are a homeowner, discuss with your tax advisor whether or not to take a depreciation deduction for the office space.

For detailed information, go to the Internal Revenue Service website, and download IRS Publication 587, Business Use of Your Home.

If You've Got It, Deduct It...Maybe.

Running a home-based business can offer many beneficial tax deductions that other businesses sometimes may not claim. Unfortunately, too many small business owners end up paying extra taxes every year because they are unaware of several small business deductions that are available.

Each business may be different, however, so be sure to discuss any possible deductions with your tax advisor or accountant.

If you join any business or purchase into any franchise, the expenses, such as kits or franchise fees, may be claimed as deductions.

Be sure to save all receipts for any supplies you purchase for your business use. Computer paper, business cards, pens, catalogs, or any other items you purchase and use for your business.

Most advertising and giveaways can be claimed on your taxes. Keep all receipts for any newspaper ads or any advertising you do online.

If you have a phone line or internet connection for business use, save all receipts for each bill paid.

If you incur fees from customers' bounced checks, those amounts may be deductible. Be sure to keep the returned check, the letter from your bank and your bank statement to show the fees you were charged.

Keep receipts for all shipping supplies and postage.

Computers, copiers and fax machines may also be deductible.

The Trivia Block

When did the income tax become a permanent fixture in the United States?

In 1913, with the 16th Amendment. (Tax rates started at 1%!).

A Dozen Quick Fixes or Short-Cuts for Preparing a Home For Sale

by: HomeStaging by Cynthia, Inc.


Crusty stove burner plates.
FIX: Replacements are cheap and look good for showings; keep the old crusty ones to switch out before cooking.

Worn out cabinet hardware.
FIX: If replacing the kitchen hardware, keep the less-worn hardware and switch them out with worn bathroom hardware.

Dingy bathroom floor tile grout.
FIX: Use a scrub brush and Comet—it’ll look like new again!

Stained shower floor.
FIX: After taking a scrub brush and Comet to it, tape the drain closed, add an inch or two of water, add a bit of bleach and swish then let stand a couple of hours.

The dog’s nose prints and a toddler’s hand prints on the front storm door glass.
FIX: Keep the door closed.

Dusty silk trees and greenery.
FIX: Take it outside, aim the leaf blower on it and power on!

Nowhere to quickly stash things before a showing.
FIX: Empty a kitchen drawer or cabinet shelf for daily items.

Wet towels hanging everywhere.
FIX: Hang decorative towels, don’t use them, then toss wet towels into the dryer before leaving for work (if everyone uses a different color towel it’s easier to identify them later).

In the process of getting rid of things.
FIX: Use your car trunk to store items that will be taken to charity.

Keeping up with a clean house for showings.
FIX: Everyone use one shower, preferably one with a shower curtain (you don’t have to squeegee a shower curtain).

You’re dashing out the door for a scheduled buyer tour and discover your child has pulled every toy onto the floor.
FIX: Store many toys behind a closed door or up high where you decide when it comes out for play.

Smudges on the wall paint.
FIX: While Mister Clean Magic Eraser can be a miracle-worker, it can also take off the paint. Apply a little Baking Soda with a wet white cloth and gently…gently… rub off the smudge. Don’t forget to rinse away the powdery residue!

Meanwhile, keep telling yourself, “This will all be over soon… this will all be over soon…”

Let me know how I can make your life easier—I can stage existing furnishings, provide a consult with detailed notes, and/or provide rented furniture/accessories!

Cynthia Black (aka “The House Whisperer”)
HomeStaging by Cynthia, Inc.
816-444-5352
www.HomeStagingByC.com

“Over 2,500 Homes Staged!”

* * *

“Because the Way We Live in our Home is Different From the Way We Sell our Home.”

What a GREAT Time to Sell Real Estate!

*NAR Economist, David Lereah says:

"We now have the most favorable market for home buyers in several years, and most sellers- who've been in their home for a normal period of homeownership - are still seeing very healthy returns on their investment. Conditions for buyers have improved because sellers are flexible now and mortgage interest rates are near historic lows. The market promises to be more balanced between buyers and sellers by early spring, supporting future price growth,"

Existing-home sales, expected to fall 8.6 percent to 6.47 million this year - the third-best performance on record - are projected to be essentially even in 2007 with a 0.6 percent decline to 6.43 million according to RealTrends

New poll finds consumers still confident of home values

Americans remain highly confident about the nations's housing prospects, with more than four out of five homeowners expecting the value of their home to appreciate over the next five years and nearly seven out of 10 calling it their most valuable investment, according to results from a new nationwide survey conducted by RT Strategies. The polling found that 81 percent of homeowners believe that the value of their homes will rise over the next five years.

New poll finds consumers still confident of home values

The poll clearly debunks the more sensational media reports speculating on the demise of the housing market," said David Pressly, president of the National Association of Home Builders (NAHB). "It is interesting to note that other polls conducted by major news organizations have come up with similar results, indicating that despite the current housing market downturn Americans resoundingly believe that buying a home is the best investment they can ever make."