October is here- prepare your home for Winter!

Friends: October is here and you can feel it in the air! This weekend is the time to get all of your Fall prep home projects underway so you can nuzzle up for the cooler months to come...

Don’t put the projects off! Get them done while it is still relatively warm outside. Want your family to stay safe, cozy, and warm this winter? Get those fireplaces and furnaces checked ASAP!

Rule of Real Estate: Nearby Parks Add Value

According to HouseLogic...

... a desirable public park boosts the property value of nearby homes by a whopping 8-20%!

An exterior home makeover that you have to see to believe- fantastic!

Nothing can transform the curb appeal of a property like new hardscape...

This exterior makeover is incredible! The new driveway? Swoon City.  Excellent stuff from HouseLogic... I had to share!

The REAL cost of Halloween Horror Movie Home Disasters!

Houselogic.com is one of my favorite websites! If you have never paid them a visit, you must. Run by the National Association of Realtors, it is not only full of amazing house tips for homeowners, but is also quite funny at times.

I stumbled upon this article on Houselogic.com, perfect for the spooky month of Halloween, and had to share....

The Real Costs of Halloween Home Disasters:

Serial Killers, Phantasms, and Floods of Blood

HouseLogic estimates the home repair costs in Poltergeist, Scream, The Shining, and other horror classics.

Zombies, vampires, and other forces of evil can take quite a toll on unsuspecting humans in horror movies, but they also can do some serious property damage. Your home can take quite a beating inside and out when the things that go bump in the night decide to drop by for a visit.

With Halloween on the horizon, HouseLogic looks at some startling property disasters in legendary horror films and calculated their real repair costs.

The Shining:

When little Danny Torrance saw a river of blood surging down the hallway, there’s one thing that was probably not on his mind: What’s it going to cost to clean up this mess? He was a little more concerned with evading his possessed, axe-wielding father. But the answer depends entirely on whether the Overlook Hotel was covered for flood insurance. Let’s just hope they opted for maximum blood coverage.

Disaster: Flooding

-The average flood claim for a residence is about $33,000.

-The average annual cost of flood insurance for a residence is $540.

Poltergeist:

When considering a new home, save some money, have it inspected—and make sure it’s not on an unmarked burial ground. You’ll disrespect the dead, and as we learned in Poltergeist, phantasms can get pretty miffed. They’ll suck children into other dimensions and even push coffins through the back yard, ripping up the landscaping and inflicting serious damage.

If ghosts do turn your yard into Swiss cheese—and your house doesn’t get sucked into a void like the Freelings’—you’ll need to redo your landscaping. Consider hiring a certified landscape architect to design a plan that includes irrigation, lighting, soil conditioning, and repotting (or removing) those pesky coffins. You might also want to consider planting a few new trees which, when properly placed for shade, will save you up to $250 a year in energy costs.

Disaster: Destroyed landscaping

-A landscape consultation costs about $100 to $150.

 -A detailed plan can run from $300 to $2,500.

 -New sod installation is 30 to 50 cents per square foot.

 -Total sod cost for the average suburban yard: $2,000.

 -Three 15-foot trees cost a total of $300 to $600.

Scream:

 

 

Going up? When Ghostface caught this beered-up victim in the too-small cat portal of a garage door, he scored a memorable kill, but shorted out the garage door opener in the process. While this party girl never made it to a sequel, the home owners lucked out with an easy repair. So easy, they might even consider a whole new garage door. But, of course, spring for a bigger cat door. 

Disaster: Broken garage door

 
-A replacement garage door opener costs about $300.

-Installed garage doors range from $550 to $1,650 for a single door, and $800 to $2,500 for a double door.

 

 

 The Amityville Horror:  

Bolts of lightning might have blown out the windows of this infamous Amityville residence, but whole-house surge protectors would have kept the lights on and things running smoothly—at least until Father Delaney and the Devil battle it out over who has to pay for window replacements. Spoiler alert: bet on the Devil. 

Disaster: Broken windows

  -Replacement windows cost $250 to $800 each.
 

Interview with the Vampire:

 

Tom Cruise and Brad Pitt had a great time slurping the life out of the residents of New Orleans, but you wouldn’t want the same drain on your homestead. That’s why you need to be vigilant about the waste caused by vampire energy, also known as standby power consumption—unneeded electricity usage that sucks up to $100 out of your wallet annually. Most common culprits are computers, monitors, printers, and stereo subwoofers. Try plugging devices into a power strip and get in the habit of turning them all off at once. Or try a “smart” power strip that senses when you’ve shut off your computer and cuts the juice. It works much better than garlic. 

Disaster: Energy drain

-Power strips are $10 each

-“Smart” power strips cost $30
 

Thriller video:

When Michael Jackson and his zombie buddies broke into an old house to terrify his girlfriend, costly damage ensues—destruction that could have been avoided if only the undead had turned the doorknob. Unfortunately, zombies aren’t too dexterous, and the hapless home owners got stuck with the cost of a new steel exterior replacement door. If only they had installed a home security system, those zombies would be singing an entirely different tune.

Disaster: Zombie attack
 

-A replacement door costs about $1,200.

-A home security system installation costs $500, with a monthly fee of $35 to $75.

April 15th is quickly approaching: Possible deduction tax traps

Does this sight look familiar? Unfortunately, it does to me.

Yes, it is that time of year again, and most of us can use all of the help that we can get?! I found this article on HouseLogic this AM and felt immediately compelled to share! It focuses on possible property tax deduction TRAPS on the Schedule A. EYE OPENING!

I highly recommend that you consider reading this article prior to filing your taxes...

Schedule A Form:

6 Home Deduction Traps

By: Barbara Eisner Bayer
Published: January 27, 2011

Get an “A” on your Schedule A Form: Dodge these tax deduction pitfalls to save time, money, and an IRS investigation.

Trap #1: Line 6 - real estate taxes

Your monthly mortgage payment often includes money for a tax escrow, from which the lender pays your local real estate taxes.

The money you send the bank may be more than what the bank pays for your taxes, says Julian Block, a tax attorney and author of Julian Block’s Home Seller’s Guide to Tax Savings. That will lead you to putting the wrong number on Schedule A.

Example:
Your monthly payment to the lender: $2,000 for mortgage + $500 escrow for taxes
Your annual property tax bill: $5,500

Now do the math:
Your bank received $6,000 for real estate taxes, but only paid $5,500. It may keep the extra $500 to apply to the next tax bill or refund it to you at some point, but meanwhile, you’re making a mistake if you enter $6,000 on Schedule A.

Instead, take the number from Form 1098—which your bank sends you each year—that shows the actual taxes paid.


Trap #2: Line 6 - tax calculations for recent buyers and sellers

If you bought or sold a home in the middle of 2010, figuring out what to put on line 6 of your Schedule A Form is tricky.

Don’t simply enter the number from your property tax bill on line 6 as you would if you owned the house the whole year. If you bought or sold a house in midyear, you should instead use the property tax amount listed on your HUD-1 closing statement, says Phil Marti, a retired IRS official.

Here’s why:

Generally, depending on the local tax cycle, either the seller gives the buyer money to pay the taxes when they come due or, if the seller has already paid taxes, the buyer reimburses the seller at closing. Those taxes are deductible that year, but won’t be reflected on your property tax bill.


Trap #3: Line 10 - properly deducting points

You can deduct points paid on a refinance, but not all at once, says David Sands, a CPA with Buchbinder Tunick & Co LLP. Rather, you deduct them over the life of your loan. So if you paid $1,000 in points for a 10-year refinance, you’re entitled to deduct only $100 per year on your Schedule A Form.


Trap #4: Line 10 - HELOC limits

If you took out a home equity line of credit (HELOC), you can generally deduct the interest on it only up to $100,000 of debt each year, says Matthew Lender, a CPA with EisnerLubin LLP.

For example: if you have a HELOC for $200,000, the bank will send you Form 1098 for interest paid on $200,000. But you can deduct only the interest paid on $100,000. If you just pull the number off Form 1098, you’ll deduct more than you’re entitled to.


Trap #5: line 13 - Private mortgage insurance

You can deduct PMI on your Schedule A Form, as long as you started paying the insurance after Dec. 31, 2006. (Also, this is also a good time to review your PMI: You might be able to cancel your PMI altogether because you’ve had a change in loan-to-value status.)


Trap #6: line 20 - casualty and theft losses

You can deduct part or all of losses caused by theft, vandalism, fire, or similar causes, as well as corrosive drywall, but the process isn’t always obvious or simple:

- Only deduct losses that are greater than 10% of your adjusted gross income (line 38 of Form 1040).

- Fill out Form 4684, which involves complex calculations for the cost basis and fair market value. This form gives you the number you need for line 20.

Bottom line on line 20: If you’ve got extensive losses, it’s best to consult a tax pro. “I wouldn’t do it myself, and I’ve been dealing with taxes for 40 years,” says former IRS official Marti.

Barbara Eisner Bayer has written about personal finance for the past 17 years. She works hard to translate IRSese into plain English. She has unbounded respect for CPAs.

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Cha-ching...

I stumbled upon this article on Houselogic this AM, and found the timing ideal to address the subject of smart remodeling.

After almost 2 years of most thoughts of reno being frozen, Home Owners are slowly getting their feet wet again and diving back into investing money into their homes. In the current economic climate, however, Home Owners are forced to seriously weigh need versus want. Thus, ensuring that they get the most bang for their renovation buck AND make improvements to the property that not only serve their needs but prove to be smart and profitable in the future.

The kitchen is the heart of the home. Period. It is also one of the most expensive projects to tackle! Unless money is limitless, most home owners are forced to prioritize when it comes to kitchen renovation. The article below is a fantastic guideline to begin doing just that...

7 Smart Strategies for Kitchen Remodeling

by John Riha

If you’re contemplating a kitchen remodel, you’re also weighing a considerable investment. But a significant portion of the upfront costs may be recovered by the value the project brings to your home. Kitchen remodels in the $50,000 range recouped 76% of the initial project cost at the home’s resale, according to recent data from Remodeling Magazine’s Cost vs. Value Report. To make sure you maximize your return, consider these seven smart kitchen remodeling strategies.

1. Establish your priorities
Simple enough? Not so fast. The National Kitchen and Bath Association (NKBA) recommends spending at least six months planning before beginning the work. That way, you can thoroughly evaluate your priorities and won’t be tempted to change your mind during construction. Contractors often have clauses in their contracts that specify additional costs for amendments to original plans. Planning points to consider include:

•Avoid traffic jams. A walkway through the kitchen should be at least 36 inches wide, according to the NKBA. Work aisles for one cook should be a minimum of 42 inches wide and at least 48 inches wide for households with multiple cooks.

•Consider children. Avoid sharp, square corners on countertops, and make sure microwave ovens are installed at the heights recommended by the NKBA—3 inches below the shoulder of the principle user but not more than 54 inches from the floor.

•Access to the outside. If you want to easily reach entertaining areas, such as a deck or a patio, factor a new exterior door into your plans.
Because planning a kitchen is complex, consider hiring a professional designer. A pro can help make style decisions and foresee potential problems, so you can avoid costly mistakes. In addition, a pro makes sure contractors and installers are sequenced properly so that workflow is cost-effective. Expect fees around $50 to $150 per hour, or 5% to 15% of the total cost of the project.

2. Keep the same footprint
No matter the size and scope of your planned kitchen, you can save major expense by not rearranging walls, and by locating any new plumbing fixtures near existing plumbing pipes. Not only will you save on demolition and reconstruction, you’ll greatly reduce the amount of dust and debris your project generates.

3. Match appliances to your skill level
A six-burner commercial-grade range and luxury-brand refrigerator might make eye-catching centerpieces, but be sure they fit your lifestyle, says Molly Erin McCabe, owner of A Kitchen That Works design firm in Bainbridge Island, Wash. “It’s probably the part of a kitchen project where people tend to overspend the most.”

The high price is only worth the investment if you’re an exceptional cook. Otherwise, save thousands with trusted brands that receive high marks at consumer review websites, like www.ePinions.com and www.amazon.com, and resources such as Consumer Reports.

4. Create a well-designed lighting scheme
Some guidelines:

• Install task lighting, such as recessed or track lights, over sinks and food prep areas; assign at least two fixtures per task to eliminate shadows. Under-cabinet lights illuminate clean-up and are great for reading cookbooks. Pendant lights over counters bring the light source close to work surfaces.

• Ambient lighting includes flush-mounted ceiling fixtures, wall sconces, and track lights. Consider dimmer switches with ambient lighting to control intensity and mood.

5. Focus on durability
“People are putting more emphasis on functionality and durability in the kitchen,” says McCabe. That may mean resisting bargain prices and focusing on products that combine low-maintenance with long warranty periods. “Solid-surface countertops [Corian, Silestone] are a perfect example,” adds McCabe. “They may cost a little more, but they’re going to look as good in 10 years as they did the day they were installed.”

If you’re not planning to stay in your house that long, products with substantial warranties can become a selling point. “Individual upgrades don’t necessarily give you a 100% return,” says Frank Gregoire, a real estate appraiser in St. Petersburg, Fla. “But they can give you an edge when it comes time to market your home for sale” if other for-sale homes have similar features.

6. Add storage, not space
To add storage without bumping out walls:

• Specify upper cabinets that reach the ceiling. They may cost a bit more, but you’ll gain valuable storage space. In addition, you won’t have to worry about dusting the tops.

• Hang it up. Install small shelving units on unused wall areas, and add narrow spice racks and shelves on the insides of cabinet doors. Use a ceiling-mounted pot rack to keep bulkier pots and pans from cluttering cabinets. Add hooks to the backs of closet doors for aprons, brooms, and mops.

7. Communicate effectively—and often
Having a good rapport with your project manager or construction team is essential for staying on budget. “Poor communication is a leading cause of kitchen projects going sour,” says McCabe. To keep the sweetness in your project:

•Drop by the project during work hours as often as possible. Your presence assures subcontractors and other workers of your commitment to getting good results.

•Establish a communication routine. Hang a message board on-site where you and the project manager can leave each other daily communiques. Give your email address and cell phone number to subs and team leaders.

•Set house rules. Be clear about smoking, boom box noise levels, which bathroom is available, and where workers should park their vehicles.