Owning a home is the first step to building equity. Tenants build equity but not for themselves; they build it for the owners. Equity is the difference in the value of the home and what is owed on the home. There are two dynamics that cause this to grow: appreciation and principal reduction. As the home increases in value, it is said to appreciate. Various authorities will annualize an appreciation rate...
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Whether you're an owner now or expect to be one in the future, it is important to be familiar with the federal tax laws that affect homeownership. Since personal income tax was enacted in 1913 with the 16th amendment, homes have had preferential treatment. The mortgage interest deduction is based on up to $750,000 of acquisition debt used to buy, build or improve a principal residence. In addition to the...
June and July are the busiest home sale months of the year. When inventory is in short supply and you may be competing with other offers, it is important to show the seller you're serious. Make your offer look as good as possible because you may not get the chance to make or accept a counter-offer. Put yourself in the seller's shoes. Your home has just gone on the market. There is lots of activity and...
You been planning this trip for some time and almost every detail has been considered...or has it? Have you thought about how to protect your home while you're out of town? What's going to make sure that everything you left is still there in you return? Nothing could ruin a trip more than coming back to find out your home has been burglarized or worse. It makes sense to spend a little time before you...
IRS has provisions for homeowners regarding the sale of a principal residence that allows for temporarily renting the home without losing the ability to exclude the gain if the home is sold under the correct conditions. The rules for the exclusion of gain on the sale of a principal residence are: Up to $250,000 of gain may be excluded for single taxpayers and up to $500,000 for married taxpayers filing...
For people who have experienced a distressed sale of a home and gotten their finances and credit back in shape, there can still be an unanswered question of "How long do we have to wait to qualify for another mortgage." The loan types for the new loan will differ in amounts of time based on the event. The different lending authorities, VA, FHA, Fannie Mae (FNMA) and Freddie Mac (FHLMC), establish their...
According to the 2018 Profile of Buyers and Sellers, 52% of buyers want help to find the right home to purchase. Physically locating the home is certainly part of what buyers want from their agent but finding the right home at the right price and terms is also crucial. 87% of buyers purchased their home through a real estate agent or broker. Slightly more than half of buyers were referred to their real...
Heating and air-conditioning are frequently referred to as the "comfort systems." If one has gone out in the dead of winter or the heat of summer, lack of comfort becomes a primary concern. Regular maintenance with a HVAC checklist is something that homeowners can do themselves to ensure that the units operate properly. Periodically Change your filter every 90 days; every 30 days if you have shedding...
Your income tax is probably filed for last year by now and you've been through your expenses for the year. Money spent on repairs to your home is not deductible but being aware of how much you spent last year may help you make a decision that could save you money this year. Sellers, often, provide a home warranty to buyers to give them peace of mind by limiting some of the out-of-pocket money spent on...
There are an increasing number of real estate companies, termed iBuyers, like Open Door, Offerpad, Zillow, Knock and others that market a service that has an appeal to homeowners. The pitch for these quick cash offer companies will include some variation of "let us buy your home in days without the normal hassles of listing." This approach attempts to provide an alternative to selling a home in a normal...