Energy Improvement Tax Credits

If you are impacted by the cold wave or saw your air conditioning bill skyrocket last year, now is a good time to think Efficiency.

Recently there has been a lot in the news about the tax credit for first-time homebuyers, but don’t think there is nothing for existing homeowners. Many sources have told consumers not to stop thinking “energy conservation” now that the price of oil is moderating. It’s a great time to make energy efficient  improvements in their homes.

TAX Credits For New Heating and Cooling Systems From: Houselogic.com

Many in the remodeling industry thought the meager 10% credit was not enough reason to undertake major renovations and they were right. There was no discernible increase in improvement activity tied to the tax credit.

CREDIT vs DEDUCTION As you may know, a tax credit lowers your total tax due dollar for dollar. If you owe the IRS $500  and have a $200 credit, that $500 gets lowered to $300. A tax deduction, however means you can reduce the amount of taxable income that you owe taxes on. The real benefit is seen after your apply your tax bracket. Most times when you figure it out, a Credit is better than a Deduction.

ENTER 2010: In order to both increase economic activity (remodeling) and expand energy efficiency, the new stimulus package raises the tax credit to 30% of the cost. It also tripled the lifetime maximum to $1,500. It is retroactive from Jan 1, of last year and expires at the end of 2010.
 
For specific information on new Windows and Doors click HERE

Complete Resources here on Energy.gov

The new provisions also apply to newly added systems such as solar-energy panels, water heaters and geothermal heat pumps.

A lot of what is included in the above actions are considered “Energy Star” approved. You can get a better picture of what is and is not covered at

http://www.energystar.gov/index.cfm?c=products.pr_tax_credits

Tags: energy savings, energystar, tax credits

Winter Suggestions Around The House

1) Inspect all electrical cords, wall plates, and plugs for damage and wear. Check gauge on all fire extinguishers: recharge or replace if necessary.

2)Service snow removal equipment and have rock salt on hand to melt ice on walkways.

3)Insulate pipes that pass through unheated areas. Your home’s crawl space and attic are two such areas.

 4)Lubricate the garage door, the automatic door opener mentor, chain, etc, and ensure the auto-reverse mechanism is properly adjusted. Replace filters in heating and cooling systems.

5) Vacuum bathroom fan grille. Vacuum radiator grilles on back of refrigerators and freezers, and empty and clean drip trays.

6) Inspect clothes washer hoses for wear or damage.

7) Make certain any kitchen, laundry, and bathroom ventilation systems are functioning properly and filters are replaced routinely.

8)Clean the dryer vent duct. Wash and clean lint screen on dryer to eliminate fabric softener build up.

9)January is Radon Action Month. The U.S. EPA recommends all homeowners test for radon and retest every two years. Contact an Safe & Sound Home Inspections to schedule a test.

10) Clean or replace filter in range hood.

11) During moderate rain, inspect gutters and downspouts for leaks. If any leaks are noticed, plan on caulking them during dry weather. Clean and inspect culverts and drainage tiles Broadcast grass seed on or about last day of winter

Tags: home maintenance, winterizing your home

First Time Home Buyers! Time is Running Out…FAST! Call Us Now.

Tags: first time home buyers, tax credit

Is There Another Mortgage Fraud is on the Horizon?

In the last two days we have received numerous flyers in our e-mail from local mortgage representatives telling us that First Time Home Buyers can receive their $8,000 credit UP FRONT and use this money as a DOWN PAYMENT. This sounded too good to be true so we checked it out and we were right, this was too good to be true. 

We personally phoned the IRS this morning, February 27, 2009 and spoke with an IRS expert on the First Time Home Buyers Credit.  This is what we learned:

The 2009 tax credit is for $8,000 and for properties purchased in 2009 by first time home buyers and does not have to be paid back provided the buyer lives there for 3 years. 

The buyer can apply for the 2009 tax credit on their 2008 income tax return if they have not filed yet.  If the buyer has already filed their 2008 return and received their refund or paid their taxes, they can file an amended return and receive the $8,000 tax credit without having to wait to file the 2009 taxes. Of course, the buyer can wait and apply for the $8,000 tax credit when they file their 2009 income taxes next year.

This provision, while a little confusing, was designed to jump start housing market. However, under NO CIRCUMSTANCES can a buyer apply for this $8,000 credit BEFORE THEY CLOSE ON THE PROPERTY AND USE THIS MONEY FOR A DOWNPAYMENT.  They are not a FIRST TIME HOME BUYER until they have (bought) closed on the house and have the keys in their hands.

If you think about this logically, you would realize that if in fact this was an $8,000 gift for a down payment, it would be all over the news.  We wouldn’t need some mortgage representative to tell us about it. This very loose interpretation of the First Time Home Buyers credit is just another attempt to get around the rules.

We can think of some serious ramifications of applying for a tax credit you have yet to earn.  We can sum it up in two words TAX FRAUD.  We do not want any mortgage representative telling our  buyers to commit fraud.  We can imagine some nightmare scenarios that we do not wish to be involved, the least of which the buyer does not settle, for whatever reason and has applied for and received the $8,000 credit.  The worst of this is that when the ‘buyer’ is audited the following year, for applying for a tax credit that they did not earn and they tells the auditor that their real estate agent told them to file for the money.

We suggest that anyone who is interested in finding out the FACTS regarding this $8,000 tax credit for first time home buyers, that they call the IRS directly at 1-800-829-1040 and ask to speak to an agent who is familiar with the FIRST TIME HOME BUYERS CREDIT and ask the direct question, “Can a first time home buyer apply for the $8,000 credit before they close on a property and use this money for a down payment?”  The answer will be NO.  But check it out for yourself.  If you have a buyer who has been told this by a mortgage rep and does not believe you when you tell them they cannot apply for this credit before they close on the property, give them the IRS number.  Keep in mind that you are calling the Federal Government and will be on hold for 15-20 minutes.  But it is worth the wait to learn the facts.  Use your speaker phone, the time will fly by.

If something sounds too good to be true, it is our responsibility to wade through the muck and verify, verify, verify.  The last thing we need is another mortgage catastrophe a few years out

Linda Kerr Iwaniw & Terry Iwaniw

RESALES & INVESTMENT REALTY, LLC

Haddonfield, NJ.

Tags: buying a home, first time buyers, first time home buyers, firstv time home buyer credit, homeowners, mortgages, tax credit

Real estate funds recommended

If you’d like to invest in real estate, but don’t want the hassle of managing it, try a real estate mutual fund. Money managers with Expansion Funds America in Phoenix say investors should have real estate positions beyond what’s in their homes.

Property prices don’t move up and down with stock market prices, and they provide diversification. Money managers recommend that you put no more than 25 to 35 percent of their portfolios into Real Estate Investment Trusts (REITs), or real estate mutual funds.

They also recommend gold, which can be held as bullion in gold-mining stocks and gold mutual funds. They recommend a 10 percent maximum for most portfolios.

Tags: real estate investment, real estate investment trusts, real estate mutual funds, reit

Do you Buy First or Do You Sell First?

It can be difficult to figure out whether to sell your home first, before you buy, or vice versa in the busy real estate market.  If you sell first and haven’t found your new home yet, where are you going to live? But if you buy first without selling how can you afford to cover the cost of owning two homes if yours doesn’t sell?

If you sell your home before you buy, you eliminate the financial guessing game. Maybe you like to play but I would like to know how much money I’m working with when I go looking for a new home! The only downfall to that approach is whether you have a place to stay or not. You may not find your new home in time, or if you do, maybe the possession dates don’t line up. Then you are stuck renting for however long, and if you are a growing family with lots of stuff, maybe storage comes into play.

So should you buy before you sell? In some cases you may have to. Say you found your perfect home, and you’ve been looking for a long time. It’s priced right and it will sell fast! In this case you may have to! But if you’re dealing with a slow market, it could be very dangerous. Now you’re looking into bridge financing, which allows you to own both homes, while trying to sell yours. But think of all that interest you are paying on a hefty lump some of money.

The ideal way this transition will happen all depends on timing. If you’ve done your research, know pretty well what you are looking for and what area you want to find it in, then you want to list your home first. If you do get an offer right away you can always add a contingency clause in the contract that is conditional on you finding your new house in a certain period of time. On the other hand, if your home hasn’t sold by the time you find your new home, you make an offer subject to the sale of your existing home in a certain time period. Depending on the market and the other home owners’ situation, sellers might not accept this, but if this works you are more likely to make the dates match and you’ve already got the ball rolling on your own house.

In conclusion, selling your home first is less risky and you’ll usually end up with a better price on both ends. Think of it this way, you’re not in a rush selling, so you won’t be forced to accept a low offer, and if you’re putting an offer on a house and haven’t sold yours yet, what sort of bargaining position are you in? You’re asking the seller to have faith in you selling your house and give you a deal on the new one! This is where your professional real estate agent comes in and works with you to make sure that the whole process is as stress-free and smooth as possible.

Tags: buying a home, home buying, seller information, Selling, selling your home, the real estate process

THE REALITIES OF SELLING A HOME IN TODAY’S MARKET

(Edison, NJ) Preparing a home for sale in today’s market often requires more than just few cosmetic improvements – it requires keeping an open mind about what buyers are looking for, and staying up to date on the local housing market. Homeowners can change the way buyers view a property inside and out with some updated staging and marketing techniques, and should be open to their REALTORS^®‘ more realistic suggestions for pricing.

“Buyers are benefiting from being able to pick and choose from a wide variety of homes on the market. They are going to be more thorough with their searches and sellers should be prepared for that,” said 2009 New Jersey Association of REALTORS^® (NJAR^®) President, Diane Dilzell. “In today’s market, buyers can get a great house at a great price so it’s important that sellers differentiate themselves from competing properties.”

Setting a realistic price. When it comes to selling a home, it’s important to keep in mind that value depends on what the buyer is willing to pay for your property and many factors contribute to their perceptions. Prices depend on local characteristics such as job opportunities, housing supply, school systems and more. Sellers should stay realistic and set the price with a REALTOR^® who can help determine which factors are at work in a given marketplace. Also, the time the owner “must” sell or the amount of repairs the home needs can play a large role in setting a fair price.

“Sellers should be pricing to stay ahead of the market and can’t afford to rely on what the home was valued at several months ago,” added Dilzell.

“Our REALTOR^® had a full understanding of today’s market and how people are shopping, and had sound reasoning for why the price we sold our home for would be beneficial, when I originally thought it was worth more. We had unbelievable traffic flow, several return viewings, and accepted a price we were comfortable with in 26 days,” said Mary Lee Hesselgrave, who sold her home in Hardyston this summer.

Get creative when marketing your home. The marketing of homes has shifted more towards new technology, rather than only putting an ad in the local newspaper. Sellers should be open to innovative and creative marketing techniques recommended by their REALTOR^®. By considering virtual home tours and concentrating on well-lit, high quality digital photos for website listings can give your home a chance to be noticed in front of the increasing majority of buyers who turn to Internet listings first. Ask your REALTOR^® about other ways to increase awareness about your home in places where buyers will notice.

Staging helps edge out competition. Buyers seek the least expensive home in the best neighborhood they can afford. The goal in staging a home is to maximize space and provide a clean slate for prospective buyers to make the home their own. Cosmetic improvements such as paint, wallpaper, and landscaping, are good investments to make a home generally more appealing. Mechanical repairs done to ensure that all systems and appliances are in good working condition are required to get a top price. REALTORS^®, who see numerous homes, can provide suggestions that are consistent with local market trends. Simple tips such as storing away family photos or personalized decor, maximizing counter space and clearing items away from windows can be done in just a few days. Home staging professionals can even be enlisted to help get creative with renovations and changes.

“We took our personal items, put them in storage and completely staged the house,” said Cindy Sauber, who sold her home in West Windsor. “If we were going to sell, we knew we had to follow certain rules,” she said.

Stimulate buyer curiosity with curb appeal. Putting work into the inside of a home is of no use if prospective buyers don’t want to enter it. Curb appeal is the first chance to make a good impression. Curb appeal sells 49 percent of all houses, whether you have a townhouse, condo or detached home, according to the National Association of REALTORS^®. Replacing light fixtures, removing dead leaves and ensuring snow is shoveled neatly from walkways and driveways are easy tasks that help entice a buyer into the home during the winter months. If a seller is unsure of what buyers are looking for, asking friends and neighbors for a fresh perspective can help them evaluate what looks old or run-down. Owners can get a “big picture” view by taking a photo from across the street.

NJAR^® is encouraging New Jersey residents to Get the REAL StorySM on real estate in New Jersey with a public education campaign that features an informational website and an advertising campaign that also features real stories from recent buyers and sellers. For more information on the campaign, or simply to Get the REAL StorySM on real estate in New Jersey, visit www.REALstoryNJ.com.

The New Jersey Association of REALTORS^®, with approximately 53,000 REALTOR^® and REALTOR-ASSOCIATE^® members, is one of the largest trade organizations in the state. NJAR^®’s membership is comprised of real estate professionals who subscribe to a strict code of ethics and are members of the national and local REALTOR^® organizations. As the leading advocate for the real estate industry and private property rights in New Jersey, NJAR^® is committed to protecting the dream of homeownership. For more information, please visit www.njar.com.

Tags: buying a home, home marketing, home owners, home sellers, housing market, selling a home, staging

Some Tips for Buying at a Foreclosure/Sheriff’s Auction

If you’re thinking about purchasing property (for either your own use or as an investment) at a sheriff’s sale or foreclosure auction, below is some advice given by some experienced auction buyers/investors.

1. Pay cash. Most auctions require you to close in fewer than 30 days. In many cases, that will not be enough time to get a bank loan. Even though hard money loans are an option, the going rate is usually 15 percent plus points and immediately refinancing may not be a viable option.
2. Check the place out. Most auction companies working for banks will let you get in with an inspector a week or so before the sale.
3. Get a separate appraisal. Hiring an experienced and knowledgeable appraiser can keep you from getting caught up in the auction frenzy and over-paying.
4. Look for short/distress sales. Don’t wait for the property to end up at a sheriff’s sale or foreclosure auction, try to negotiate a short sale prior to foreclosure of the property. A warning, though, buying properties short takes patience, but if you have time on your hands you are likely to get a very good deal.

The last thing you need to be sure you have is a professional real estate agent working on your side. You’ll need someone who knows the ins and outs of the housing market and the specific areas that the property is located in. An appraiser can give you the current value of the property, but a professional real estate agent can give you insight into the neighborhood market, trends in the area, and issues that they are aware of. After all, the professional real estate agent works with those factors on a day-to-day basis.

Tags: auction sales, foreclosure auctions, Foreclosures, foreclosures for sale, real estate for sale, sheriff sales, short sales

A Happy & Safe Thanksgiving Holiday To All

Linda and I wanted to send out this short and sincere Thanksgiving wish to all. In this time of financial crisis and and uncertainty, we need to stop and take stock of what we do have and to be thankful for many of the blessings that have been given us. We want to extend our Thanksgiving wishes to all.

Tags: holiday wishes, thanksgiving, thanksgiving greeting

The 10 Christmas Decoration Tips You Must Know

Decorating for Christmas is one of the best things about the holidays. The twinkling of lights, the sight of a perfectly trimmed tree and a perfectly placed wreath adorning your front door are all gentle reminders of the joyous Christmas season.

When decorating your home, you want the décor to reflect your own personal style while keeping the Christmas tradition always present. A few tips can help make this holiday decorating season even brighter.

Christmas Decoration Tip #1: Lights Out

With each year that passes, Christmas lights tend to burn out at some point. Unless you have a strand that burns with the exception of the troublesome light, it can be a real headache to find the faulty bulb. Consider investing in a light tester, which will check each individual light and detect the one that needs replacing. These can be found with the Christmas supplies at most department stores.

Christmas Decoration Tip #2: Angels Nearby

Whenever possible, decorate your home with angels. They add a touch of peace and tranquility to your home and we all need to know that there are angels watching over us.

Christmas Decoration Tip #3: Be fruity

Prepare a fruit-filled clear glass bowl as a centerpiece for your dining room table. Nothing smells like Christmas as much as an orange or a nice fruit combination.

Decoration Tip #4: Add a personal touch

If you hang Christmas stockings, consider personalizing them with your name, your spouses name and those of your children. These days, even pets have stockings, so don’t forget to add Fido’s name on a stocking. You can easily personalize a traditional stocking using a glitter pen, preferably one that writes in silver or gold. A personalized stocking is a nice idea and a special added touch.

Christmas Decoration Tip #5: Pucker up

Decorate your home with poinsettia and mistletoe, which are both holiday traditions. A nice artificial poinsettia plant will always be beautiful and is easy to take care of – no water required. A mistletoe is always a nice touch and especially if you just need one more reason to smooch.

Christmas Decoration Tip #6: Working with wreaths

.Don’t forget to place a beautiful green wreath on the front door of your home. Make sure to add a red bow for a brightening touch! Artificial wreaths will last year after year, but real wreaths do have a wonderful scent. If you want to add wreath’s to the windows in your home, consider purchasing a magnetic wreath hanger. This type of hanger comes in two parts – one goes on the inside of your home and the piece with the hook will go on the outside. These hangers have been around for years, but they are steadily beginning to gain in popularity. The magnets are so strong that they can work through doors and windows, which is ideal for hanging wreaths on the outside of your home without the fuss of a traditional plastic wreath hanger, which drapes across the top of your door.

Christmas Decoration Tip #7: A perfect fit

When choosing a Christmas tree, make sure to measure the preferred location from side to side and from floor to roof. You will want to make sure that perfect tree fits when you bring it home. Artificial trees are easy care, but a real tree requires plenty of water.

Christmas Decoration Tip #8: It’s all about tradition

It’s nice to start a family tradition by decorating your tree on a certain day each year. Perhaps after Thanksgiving dinner, the whole family can spend the evening dressing their home for Santa.

Christmas Decoration Tip #9: Shop smart

Make sure that all electric decorations are UL listed to ensure that they have been tested for quality and safety. Don’t forget to unplug everything before you leave home or go to bed at night.

Christmas Decoration Tip #10: Say Cheese

Always remember to have plenty of film and batteries for the camera. Now that you have the perfect decorations, don’t forget to capture them on film. For more great Christmas decoration related resources check out http://decorations.christmashub.com