We’ll give you the lowdown on 10 great tax breaks

You may be somewhat aware that your home is a good source of tax breaks, but maybe you don’t realize just how many there are. April 15 is almost here, and many people will be scouring their lives for any potential tax breaks. You may not have to look far if you are a homeowner. A recent Realty Times article discusses the top 10 tax breaks you can get from your home.


Mortgage Loan Interest.

This is one of the best tax breaks your home has to offer. In the early years of a loan, interest payments constitute a large portion of your mortgage payments. Mortgage interest on a maximum of $1 million in mortgage debt secured by a first and second home is tax-deductible. This level applies to joint filers; if you file single or separately, you get half of the deduction. Home equity loan interest is also deductible, but is limited to a much smaller amount.
Points.

You can fully deduct points associated with a home purchase mortgage. You can also deduct refinanced mortgage points, but only when they are amortized over the life of the loan. If you refinance a second time, the balance of the old loan’s points from a refinanced loan provides an immediate write-off, as you begin to amortize the new points.

Home Improvement Loan Interest.

Interest on a home improvement loan is also deductible, but is calculated differently from interest on your mortgage. You can deduct all of the interest on a home improvement loan if the work is a capital improvement (improvement that adds value to your home, adapts it to new uses, or prolongs its life) rather than repairs, maintenance or cosmetic. You can only get tax benefits from repair work when you sell your home, unless you get a home equity loan to make the repairs.

Property Taxes.

Any property or real estate taxes are fully deductible. If you receive a city or state property tax refund, your federal property tax deduction will be reduced by the same amount.

Capital Gains Exclusion.

Provisions in the Taxpayer Relief Act of 1997 allow married taxpayers who file jointly to retain up to $500,000 of profit on the sale of a home used as a principal residence for two of the prior five years tax-free. Again, the amount is halved for taxpayers who file separately or as a single. This tax breakcan be used as often as you qualify.

Selling Costs and Capital Improvements.

When you sell your home, your taxable capital gains can be reduced by the amount of your selling costs, including title insurance, real estate commissions and legal, advertising and inspection fees. Decorating or repair costs, such as painting, planting landscaping or cleaning carpets, are also considered selling costs if they are incurred within 90 days of the sale and with the intention of making the home more sellable.

Moving Costs.

If you have to move for a job, your moving costs may be at least partially deductible. You must, however, move within one year of starting your new job, move 50 miles farther from your old home than your old job was, and work full-time at the new job for 39 of 52 weeks following the move. Deductible costs include storing your household goods and travel and transportation costs.

Energy Tax Credits.

Although not available this year, the Energy Policy Act of 2005 introduced tax credits for upgrading features of your home to energy-efficient models or materials. Up to $500 in 2006 and 2007 is available if you upgrade your heating and air conditioning, caulk leaks, add insulation, install energy-efficient windows or other improvements that combat energy waste. Certain qualified solar energy and fuel cell systems can earn you tax credits of up to $2,000. You can also earn a tax credit for purchasing a hybrid or other energy-efficient vehicle. Keep in mind, however, that some states offer rebates or tax credits that can reduce the federal credit.

Home Office Deductions.

If you have a home office that is used exclusively for business, you could deduct a portion of the costs related to that portion of your home, including a percentage of your insurance and utility costs, among other things.

Mortgage Tax Credit.

Qualifying low-income, first-time homebuyers can take advantage of Mortgage Credit Certificates (MCCs) that allow them a credit of up to 20 percent of the mortgage interest payments made on their home. The credit is available each year you live in the home purchased with the certificate, with the same loan. Instead of reducing your income, this credit is subtracted from the amount of income tax you owe.

OPEN HOUSE Sunday, Oct. 10th from 9:30-11AM

Join us at 452 Melvin Avenue in Racine Wisconsin on Sunday, Oct. 10th from 9:30-11AM for an Open House!

Listing Price $199,000

Charming Tudor Home near Lake Michigan & bike trails! Eat-in kitchen w/Italian tile back splash, custom cabinets/drawers, antique lights in kitchen and hallways, formal dining room and living room with hardwood floors, two bedrooms with newer carpet over hardwood. New 2006-2008 furnace/AC, roof,copper gutters. Full basement with 3/4 bath, finished rec room. Unique whirlpool tub in full bath, Wood fireplace. Original woodwork and beautifully landscaped. Large garage features 220 & storage.

OPEN HOUSE - SUN, Sept. 12 (12-2PM)

Join us for our Open House on Sunday, Sept 12 from 12-2pm located at 4025 Stormy Drive in Kansasville, WI.

Spacious Kansasville home. Property features include a large Living Room/Great Room with gas fireplace, large kitchen with dining area, 3 nice sized bedrooms upstairs and a den off the kitchen. Laundry area, 2 full baths and a half bath. Large deck with gazebo overlooking large landscaped yard featuring a large garden shed, trees, shrubs and a view of the subdivision's open grassy common area. Full basement. Subdivision also features a pond for fishing/picnics.

Buying a Home after a Short Sale, Foreclosure or Bankruptcy

Buying a home after you have submitted and put in for bankruptcy is something that is difficult. Your credit score is basically what you live by and when you have to file for bankruptcy, your credit score goes down, down, down and honestly, it can be very difficult for you to recover from that. However, if you are looking for a way that you can so you can buy a new house – you need to do your research.

After you file for bankruptcy, there are many different things that you need to do to ensure that you can actually be trusted by lenders again. The first is make sure that you pay all of your bills on time and do not ever miss a payment, as that is something that will go on your credit and will certainly lower your credit score right away.

Next, you are going to have to wait anywhere from a year to three or four years in order to purchase a new house and even then, you might not get approved – it all just depends.

Spring Curb Appeal

Making your home pretty is something that a heck of a lot of people overlook. Did you know that people constantly are looking at homes and I can tell you for sure that curb appeal is something that everyone is looking at. A garden is a fantastic way to ensure that you get some curb appeal.

There are a few steps that you will need to take whenever you are looking to plant a garden and one of them is to decide exactly what you are going to plant. This is where deciding on veggies or flowers is very important.

Both of them can have some incredible affects, you just want to make sure that the garden is in good shape whenever you have buyers coming to look at the house.

What is a Buyer Agency?

When a potential buyer contacts a real estate office to preview a property, the real estate agent is typically looking out for the seller's best interest. To ensure that the agent has YOUR best interest in mind, you need to be exclusively represented by a Buyer Agent.

A Buyer Agent is designed to exclusively represent the Buyer. Once a Buyer signs a Buyer Agency agreement, the Buyer Agent looks out for the Buyer's best interest. In that capacity, the Buyer Agent can discuss whether a home is priced reasonably, and can offer professional projections as to the future marketability and value of a home. The Agent can also negotiate the price and terms of the purchaser on the Buyer's behalf to save the Buyer money. There is no out-of-pocket expense for the Buyer because the Agent can get paid by the Seller.

When you are looking to make one of the biggest investments of your life, it's not hard to understand why it is important to be represented exclusively.

Dangers of Overpricing

Many potential buyers won't even look, thinking it's out of their range.

Those buyers who do look are shopping by comparison, and looking at your home may convince them to make a bid on a different property.

Since an appraisal is often required in financing a property, it's futile to price a property for more than its worth.

Properties left on the market for extended periods of time usually become "shop-worn", causing many to believe something is amiss.

Overpricing tends to dampen some Real Estate Salesperson's attitude, making it less likely to be shown.

Overpricing lengthens marketing time, and invariably results in a lower selling price than would have been otherwise obtained.

Why Should Sellers List With a REALTOR

BUYERS have confidence in REALTORS

REALTORS can provide an objective market analysis

REALTORS can provide profitable market preparation

REALTORS have broad-based exposure

REALTORS may have buyers waiting

REALTORS have more constant exposure

REALTORS use more effective ads and signs

REALTORS find emotionally qualified buyers

REALTORS find financially qualified buyers

The SELLER will be less inconvenienced

The SELLER will enjoy more security

REALTORS offer professional showmanship

REALTORS can follow up effectively

REALTORS can ask personal questions that the Seller cannot

REALTORS understand the Seller's wants and needs

REALTORS can negotiate without conflict

REALTORS can provide the Seller with a net proceeds estimate

REALTORS can help avoid legal issues

Homebuyer Tax Credit - Don't miss out!!

Visit Homebuyer Tax Credit for the most recent updated information.

What is included in a home's square footage?

"livable space" is included in determining the square footage of a home. Garages, unfinished attics and basements for example are not included when calculating square footage.

"Livable space" is a bit tricky though. Hallways and closets are included when determining a homes square footage, and no one really lives in a hall or closet. However it'd be difficult to live in a home that didn't have closets and halls...

Additions to a home often cause a lot of difficulty in calculating square footage. The laws in your area may effect how additions are counted. In the Phoenix area, if a home addition is permitted, then that area can be included in a homes square footage. If the addition is not permitted, then it isn't included.

Square footage numbers are usually taken from previous sales data, tax records (which are often incorrect) or builders plans. An appraiser may be your best bet for determining the true square footage of a home as they are typically skilled in measuring square footage.

Things to Remember: Home Insurance

1. You're a statistic.

To an insurer, you're not a person; you're a set of risks. An insurer bases its premium (or its decision to insure you at all) on your "risk factors," including your occupation, who you are, what you own, and how you live.

2. Know your home's value.

Before you choose a policy, it is essential to establish your home's replacement cost. A local builder can provide the best estimate.

3. Insurers differ.

As with anything else you buy, what seems to be the same product can be priced differently by different companies. You can save money by comparison shopping.

4. Don't just look at price.

A low price is no bargain if an insurer takes forever to service your claim. Research the insurer's record for claims service, as well as its financial stability.

5. Go beyond the basics.

A basic homeowners policy may not promise to entirely replace your home.

6. Demand discounts. Insurers provide discounts to reward behavior that reduces risk.

However, Americans waste some $300 billion a year because they forget to ask for them!

7. At claims time, your insurer isn't necessarily your friend.

Your idea of fair compensation may not match that of your insurer. Your insurer's job is to restore you financially. Your job is to prove your losses so you get what you need.

8. Prepare before you have to file a claim.

Keep your policy updated, and reread it before you file a claim so there are no surprises.

5 Buyer Secrets

1. Get "Pre-Approved" - Not "Pre-Qualified!"

Do you want to get the best property you can for the least amount of money? Then make sure you are in the strongest negotiating position possible. Price is only one element in the negotiations, and not necessarily the most important one. Often other terms, such as the strength of the buyer or the length of escrow, are critical to a seller.

In years past, I always recommended that buyers get "pre-qualified" by a lender. This means that you spend a few minutes on the phone with a lender who asks you a few questions. Based on the answers, the lender pronounces you "pre-qualified" and issues a certificate that you can show to a seller. Sellers are aware that such certificates are WORTHLESS, and here's why! None of the information has been verified!

Many times unknown problems can come to the surface! Some of the problems I've seen include recorded judgments, alimony payments due, glitches on the credit report due to any number of reasons both accurately and inaccurately, down payments that have not been in the clients' bank account long enough, etc.

So the way to make the strongest offer today is to get "pre-approved".

This happens AFTER all information has been checked and verified. You are actually APPROVED for the loan and the only loose end is the appraisal on the property. This process takes anywhere from a few days to a few weeks depending on your situation. It's VERY POWERFUL and a weapon I recommend all my clients have in their negotiating arsenal.


2. Sell Your Property First, Then Buy the House

If you have a house to sell, sell it before selecting a house to buy! Contingency sales aren't nearly as strong as one that comes in with a ready, willing and able buyer. Consider this scenario You've found the perfect house - now you have to go make an offer to the seller.

You want the seller to reduce the price and wait until you sell your house. The seller figures that this is a risky deal, since he might pass up a buyer who DOESN'T have to sell a house while he's waiting for you. So he says OK, he'll do the contingency but it has to be a full price offer! You have now paid more for the house than you could have because of the contingency, and you have to sell your existing house in a hurry! Otherwise you lose the house! So to sell quickly you might take an offer that's lower than if you had more time. The bottom line is that buying before selling might cost you THOUSANDS of dollars.

If you're concerned that there is not a house on the market for you, then go on a window-shopping trip. You can identify possible houses and locations without falling in love with a specific house. If you feel confident after that then put your house on the market. Another tactic is to make the sale "subject to seller finding suitable housing". Adding this phrase to the listing means that WHEN YOU DO FIND A BUYER, you will have some time to find the new place. If you don't find anything to your liking, you don't have to sell your present home.

3. Play the Game of Nines

Before house hunting, make a list of things you want in the new place. Then make a list of the things you don't want. You can use this list as a guide to rate each property that you see. The one with the biggest score wins! This helps avoid confusion and keeps things in perspective when you're comparing dozens of homes. When house hunting, keep in mind the difference between "STYLE AND SUBSTANCE". The SUBSTANCE are things that cannot be changed such as the location, view, size of lot, noise in the area, school district, and floor plan. The STYLE represents easily changed surface finishes like carpet, wallpaper, color, and window coverings. Buy the house with good SUBSTANCE, because the STYLE can always be changed to match your tastes. I always recommend that you imagine each house as if it were vacant. Consider each house on its underlying merits, not the seller's decorating skills.

4. Don't Be Pushed Into Any House

Your agent should show you everything available that meets your requirements. Don't make a decision on a house until you feel that you've seen enough to pick the best one. A decade ago, homes were selling quickly, usually a few days after listing. In that kind of market, agents advised their clients to make an offer ON THE SPOT if they liked the house. That was good advice at the time. Today there isn't always this urgency, unless a home is drastically underpriced, and you'll know if it is.

Don't forget to check into the SCHOOL DISTRICTS of the area you're considering. Information is available on every school; such as class sizes, % of students that go on to college, SAT scores, etc. You can get this information from this web site.

5. Be prepared to act fast!

The biggest mistake I see home buyers make is they find something they really like, ask to see other homes, and by the time they decide their first choice was right, the home is gone. In a seller's market, there aren't enough homes to satisfy every homebuyer. Prices are usually sky high because of the low inventory. Homebuyers typically make a fast offer - often for more than the list price - or risk losing the home to a more agile homebuyer. There isn't much room to negotiate in a seller's market unless the property is overpriced. Your agent should show you everything available that meets your requirements. If you see something you like and can afford, buy it. Inexperienced or not, in today's market you must be willing to act fast.

Gonnering's Marketing and Advertising Belief

In addition to traditional marketing strategies, Gonnering is utilizing the latest technologies available. The modern day real estate market of the Internet has changed the way real estate is sold today. There was a time when people used newspaper ads and open houses to find homes. Today, web connected homebuyers are using the Internet. Most homebuyers don't shop for homes advertised in the newspaper any longer and open houses seem to pull more "Window Shoppers" than qualified buyers. It's been reported that more than 80% of people looking for a home start their home search on the Internet. Gonnering reaches for the largest potential buyer pool by posting our listings to multiple sites in addition to the Multiple Listing Service (MLS). The following are a few of the sites we utilize: Realtor.com, Google, Point2, Trulia, Zillow and Visual Tour.

What is MLS and what can it do for me?

What is MLS and what can it do for me?

In the world of real estate, MLS is a common industry buzzword. Agents, market strategists and real estate publications refer to it often. However, if asked, most people who are not in the real estate industry would admit they've heard the term but haven't a clue as to what it stands for. So let us help to clarify the meaning.


First, MLS stands for Multiple Listing Service, which is a tool real estate agents have relied on for years. It was developed to coordinate the efforts of realtors from different companies in the same region. The MLS provides realtors with exact room dimensions, property condition, renovations, appliances, property zoning and the age of the home.

The MLS system has come a long way in recent years. In the beginning, agents would exchange fact sheets and possibly photographs in their local area. With the introduction of computers, listings were assembled faster and made available through a modem connection. Today, with the use of the Internet, MLS is readily available for agent use. It is important to note that there is no national MLS and that these lists are created for and by regional and local associations.

With the help of an experienced agent, MLS is a powerful asset for both buyers and sellers alike. MLS gives agents the ability to track what is on the market, the average amount of time homes stay on the market, and the current listing and selling prices of other homes in the area.

Buyer's Advantage: For prospective buyers, the MLS is a very convenient way to access the largest number of homes available in your desired area. Using MLS, a buyer's agent can specify the area, property size, age and location, of potentially desired properties. This helps narrow down an extensive list of possibilities and makes it easier to locate their dream home in a more expedient fashion.

Seller's Advantage: If interested in selling your home, an agent listing your home on the MLS gives your property maximum exposure to potential buyers through members of the local MLS Board. The more people have access to your home, the greater the demand for your property. This will boost your pricing power and decrease the amount of time your home is on the market. It is important to note that only realtor members of the local MLS may list property for sale in the respective MLS. If you are considering selling your property on your own, you will be missing out on the largest buyer audience by not listing with a Realtor with access to the MLS.

Top 10 Worst Foreclosure States For May, 2008

Rank State Per 1000

1 Nevada 118
2 California 183
3 Arizona 201
4 Florida 228
5 Michigan 353
6 Georgia 378
7 Colorado 388
8 Mass. 406
9 Ohio 410
10 New Jersey 467

Top 10 Reasons to Have Your Property Surveyed

The following are some common reasons property owners should hire a surveyor.

BOUNDARY LINES. One of the most common reasons a landowner seeks the assistance of a surveyor, the location of boundary lines and other lines of occupancy or possession is a critical piece of information to have before you build a fence, add a sunroom or pave your driveway. All too often the survey shows that you and your neighbors were operating under the wrong assumption about the placement of the boundary line between your properties. Before you have that fence erected, you want to make sure it will be built on your property, not your neighbor's. The boundary line certification will also tell you whether the legal description of your property is accurate.

GORES, OVERLAPS, AND GAPS. Part of the boundary line certification, most surveys include a statement that unless the surveys says otherwise, there are no discrepancies between the boundary lines of your property and the adjoining property. This is especially pertinent if your property is continuous with alleys, roads, highways, or streets.

RIGHTS-OF-WAY, EASEMENTS, AND ABANDONED ROADS. A survey will show all the conditions imposed by law that are reflected in your property's title report and other agreements. If your property blocks your neighbor's access to the road, for example, there may be an old agreement that gives your neighbor the right to walk across your yard to the street.

PONDS, RIVERS, CREEKS, STREAMS, WELLS, AND LAKES. The typical survey reports visible or surface waters only. Underground waters and wetlands are topics that are better covered by other professional inspections.

JOINT DRIVEWAYS, PARTY WALLS, RIGHTS-OF-SUPPORT, ENCROACHMENTS, OVERHANGS, OR PROJECTIONS. Unbeknownst to you or your next-door neighbor, you may have an obligation by law to support your neighbor's driveway by maintaining your own.

EXISTING IMPROVEMENTS. The surveyor will usually certify that the buildings and other improvements, alterations, and repairs to your property that exist at the time of the survey are not in violation of laws or other restrictions such as those regarding height, bulk, dimension, frontage, building lines, set-backs, and parking. Of course, the surveyor will also tell you if your latest improvement is in violation of a local ordinance or other law, which will put you on notice that a change is in order.

WATER, ELECTRIC, GAS, TELEPHONE AND TELEGRAPH PIPES, DRAINS, WIRES, CABLES, VAULTS, MANHOLE COVERS, CATCHBASINS, LINES, AND POLES. Poles and above-ground wires are obvious, but the surveyor can usually report on the existence of underground cables and drains, as well, if the information is provided to him or her by your utility companies and municipality. Such information is important for two reasons. A utility company may have the right to use a portion of your property for upkeep of utility lines, and may have a say in how tall you let your trees grow, for instance. Also, knowing the exact location of underground utilities is critical before any excavation or construction begins.

CEMETERIES. It is unlikely that unbeknownst to you there is an old family burial ground in your back yard. The survey will show the exact location of any old cemeteries on your plat.

ACCESS, INGRESS AND EGRESS. Your survey should state, at a minimum, whether there is physical vehicular ingress and egress to an open public street. It may also specify the adequacy of access for a particular purpose, such as delivery trucks, emergency vehicles such as fire trucks, and driveways for tenants.

ZONING CLASSIFICATION. You probably know whether your property is zoned for residential or light industrial use. But you may be surprised to discover that your zoning classification puts specific restrictions on how you use your property. This part of the survey simply reports your zoning jurisdiction and classification. Once you have your completed and certified survey, you may want to consult an attorney about whether you are using your property in conformance with zoning ordinances or for other advice about the legal ramifications of your property survey.

Quick Tip: Getting your home in show condition.

Here are some quick tips on getting your home in show condition:

1. When the agent arrives with the potential buyers, have the window coverings open to let in as much sunlight as possible (unless an ugly view shouldn't be highlighted). At nighttime, be sure that all of your outdoor lights are on, particularly any landscape or pool lights. Indoor lights – all of them should be on day or night. I have never had a buyer claim– “it is too bright”.

2. Open doors between rooms to give an inviting and open feeling. Turn the television off. Have the thermostat set to a comfortable temperature. In winter, a fire in the fireplace is inviting - you want the buyers imagining themselves living in your home.

3. Pick up any newspapers, magazines and clutter that may be lying around. Your kitchen and bath counter tops should already have been cleared of all but the most basic necessities, make sure dirty dishes are not in sight.

4. If you have dogs, take them for a walk. Some people are afraid of pets; others love them and will remember your pet more than your home.

5. The beds should be made and clothes picked up (under the bed is a quick hiding place for all kinds of stuff). Bathrooms should be clean and the toilet lids down.

6. You never know when the right person is going to walk through your front door. Whenever you leave the house it should be in "show condition". You as the home seller play a major role in achieving the highest possible price. The above is a generalized “punch list”, your Realtor should provide you with specifics as to how best to “show off” your home. AND if you don't have a Realtor, I may be available for the job!! :-)

Record High Home Inventories

With record high housing inventories, lower interest rates and property prices beginning to be lowered the market changes are making home ownership irresistible again.

Do we all understand what happens next?

The housing inventory will lower again which will be followed by a rise in home prices. What this means is that NOW is the time to purchase! Remember the old saying "You snooze, you lose". That saying really goes hand-in-hand with today's market.

Welcome!

Welcome to my Blog. I decided to start a Blog for my real estate company Gonnering Realty so that I can share some of the knowledge and experience I have gained over the past 18 years as a Real Estate Agent and now as the Broker/Owner of Gonnering. I hope you enjoy my Blog and leave your computer knowing a little bit more about today's real estate market.