Archive for the ‘Information for Buyers’ Category

Weichert Realtors Press Release

Owning a home invokes more than a sense of pride and freedom. It is also a long-term investment opportunity. With tax season in full swing, it is a great time to speak to your tax advisor about the tax advantages associated with homeownership.

Some of these benefits include:

• Reduce your taxable income: On your itemized income tax return, you may be able to deduct mortgage interest payments, property taxes and points paid to lower your loan’s interest rate.

• Take advantage of special tax breaks: You might receive a tax credit or be able to take a tax deduction for certain home improvement projects if they are for medical reasons or if they fall into one of the many energy-savings home improvement categories.

• Lower tax on capital gains when you sell: When you sell your home, you will not have to pay federal income tax on capital gains of up to $500,000 for a married couple and $250,000 if you are single. This applies to the sale of a principal residence owned and occupied for at least two of the last five years.

According to Fannie Mae’s most recent monthly survey, the upward trend in housing market sentiment has continued. Respondents in its January survey believe home prices will rise by 1 percent over the next year, an improvement over the 0.8 percent gain predicted in December. Additionally, 44 percent of those responding to Fannie Mae’s survey expect their personal financial situation to improve over the next year, up from 40 percent who felt that way the month prior.

Other recent reports support an improving housing industry and economic outlook:

• The National Association of Realtors said total existing-home sales rose 5.9 percent in the fourth quarter of 2011, and were 9.2 percent above the fourth quarter of 2010.

• Homebuilder optimism was up in February for the fifth straight month, according to the NAHB/Wells Fargo Housing Market Index.

• The Mortgage Bankers Association said that mortgage delinquencies dropped to the lowest level in three years during the fourth quarter.

• New applications for unemployment benefits dropped to the lowest level since March 2008, a sign that the labor market is on the mend.

• Earlier this month, Weichert set a new record for the number of customer inquiries received via its Weichert.com website in one day.

According to Punxsutawney Phil, who saw his shadow on Groundhog Day, there are six more weeks of winter ahead. With the potential for cold and inclement weather on the horizon, it is an opportune time to make sure the interior and exterior of your home are adequately prepared.

If you haven’t done so already, spend some time taking care of these winterizing tasks:

Heating a home is expensive, and you can keep costs down by caulking any cracks around windows and doors that let cold air in and heat escape. You should also be sure to clean or replace furnace filters to help your heating system run more efficiently and effectively. 
Clear all debris from your gutters, even if you have a covered gutter system. Any leaves or other materials left in the gutters can freeze and damage the gutters themselves, and could also force freezing water up under your shingles and damage the roof.
Be prepared with everything you need in the event of a big snow storm. This includes tools for removing snow, such as a snow blower with a full tank of gas, shovels and a melting agent such as rock salt. No less important are items like extra blankets, warm clothing, and enough food and water to sustain your family in case of a few days of isolation.

 Valuable information for buyers and sellers.

According to Remodeling magazine’s 2011-2012 “Cost vs. Value Report,” replacement projects perform better in resale value than other types of remodeling projects. In fact, seven out of the top 10 projects were siding-, window- and door-replacement projects.

The good news for cost-conscious homeowners is that investing in your home in a way that pays off at resale doesn’t have to cost a lot. The high value of most replacements can be contributed to the relatively low cost of these projects. What’s more, the majority of replacement projects immediately improve curb appeal, making the home more attractive to buyers.

Based on interviews with real estate professionals throughout the country, the Remodeling report found that the top project is fiber-cement siding, which typically recoups 78 percent of costs. Fiber-cement siding has been in the No.1 spot for six of the seven years since it was added to the report.

Moving up two spots in the rankings is the minor kitchen remodel, now coming in at fourth place at 72 percent. Considered an “interior replacement” project, this is the least expensive way to give an existing kitchen a complete facelift. It is typically done by adding new cabinet door and drawer fronts and hardware, new countertops and new appliances.

The right remodeling project, when done well, also has the potential to make for a quicker sale and reduce negotiations with buyers over perceived shortcomings.

The beginning of a new year is always a time to reflect and consider goals and opportunities for the year ahead. As we begin 2012, there are many reasons for encouragement when it comes to the economy and real estate. If recent economic and real estate trends are any indication, 2012 will be a year when good things can happen not only for potential homebuyers and sellers, but for the country as a whole.

For example:

Existing-home sales rose again in November, and remain at levels above those of a year ago. What’s more, pending home sales also continued to gain in November, reaching the highest level in 19 months, an indication that there will be more future sales. 
In November, sales of new single-family houses rose 1.6 percent from October and were 9.8 percent above November 2010. Additionally, housing starts surged to a one-and-a-half year high in November, and permits for future construction were the highest since March 2010.
In a sign that the overall economy is strengthening, U.S. employment has grown solidly for the past six months, generating 100,000 jobs or more in each month for the first time since April 2006.
The Conference Board’s Index of Leading Economic Indicators showed two months of solid gains, signaling that the economy was gaining momentum and the risks of a recession were receding, and its Consumer Confidence Index improved to levels seen in April 2011.

The new year provides an opportunity to start fresh and develop goals and resolutions for the coming year. Some people strive toward financial aspirations or a professional achievement, while others might choose to pursue a lifelong goal, such as owning a home.

If 2012 is the year to achieve your dream of homeownership, the following tips may be helpful:

• Talk to the experts. Work with a real estate professional, lender and attorney who are familiar with the area in which you would like to buy a home. A real estate agent can provide you with expert knowledge about the local market, including information about community life and specific neighborhoods, and will be a useful resource throughout the entire process as he or she guides you from the initial search through closing on the purchase of your new home.

• Be smart about financing. You may have savings allotted to cover your downpayment, but don’t forget about other upfront expenses like closing and inspection costs. Look into the many programs available to help you reduce upfront costs. Also, get pre-approved as soon as possible to help you develop a budget, understand what price range you can afford and set realistic expectations.

• Determine your preferences. Speak to your real estate agent and browse online for homes that meet your criteria. Many websites, including Weichert.com, allow you to see multiple photos, view school and neighborhood information and set up e-mail alerts to notify you of new listings. Before you begin looking at homes, be sure you have a clear idea of what your wants and needs are, as well as the price you are willing and able to pay.

A new study by Yahoo! Real Estate shows that people still value homeownership. In fact, 81 percent of the current and prospective homeowners surveyed said that owning a home is still a part of the American dream. In addition, buyers are now more confident that their dream home is within reach due to today’s low mortgage rates and affordable home prices. Of those surveyed, 72 percent said they already live in their dream home, or will own it someday.

Additional findings from the Yahoo! Real Estate Home Horizons study include:

• Half of all respondents are looking for “green” or energy-efficient features in their dream home, as they aspire to reduce their carbon footprint. This was the most popularly cited feature.

• 57 percent of respondents said they were very satisfied with where they live, while 35 percent were somewhat satisfied and 8 percent were unsatisfied.

• When asked why they want to move, 45 percent of buyers said they want to live in a larger space. Other popular reasons were a desire to live in a home that better suited their lifestyle (42 percent) and to live in a better neighborhood (30 percent).

Based on the results of the study, Yahoo! Real Estate expects 2012 to be the year in which demand for green homes, energy-efficient appliances and low-carbon impact home building materials really take off. Are you ready for the change?

Decorating their home for the holiday season is a time-honored tradition for many families, and also provides the opportunity to make lifelong memories. Sellers with their home on the market during the holiday season may feel the need to give up their holiday traditions.

However, quite the opposite is true: Sellers should not forgo decorating their home for the holiday. People expect at least some decorations this time of year, plus they add warmth to a home. 

The most important thing for sellers to remember is to decorate in a way that won’t turn off buyers, and the following tips will help them strike a good balance:

Too many decorations mask a home’s selling points: architectural details, condition, location and price. 
Avoid too many personalized decorations. The goal is for buyers to visualize themselves celebrating the holidays in the home.
Choose an elegant, neutral palette of fresh greens, silvers, golds and classic whites. Avoid too much red and green.
Take down decorations within two weeks after the holidays.

Homeownership is the American dream, yet buying a home is likely the largest purchase a person will make in their lifetime. While there are a variety of low downpayment options available, saving for a downpayment on a home still requires planning and discipline.

Here are some tips to help first-time buyers save up for a downpayment on the home of their dreams:

• Track all of your monthly expenses for things like rent, groceries, fuel, dining out, clothing, etc. Then compare that list with your monthly income to determine how much you can truly save each month as well as the areas in which you may be able to cut back. For example, can you make coffee at home instead of buying it at a coffee shop? Can you move to a less expensive cable package or eat out less?

• Use coupons and join discount clubs. This can save a considerable amount of money on everyday purchases you make at the grocery store and big-box retailers. Before buying something brand new, check Freecycle or Craigslist to see if you can get it for less, or even for free.

• Put a pre-determined amount of money into a special savings account each month. This so-called forced savings will add up quickly and will help you eliminate impulse spending.