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Are "For Sale by Owners" Really Saving Money?

Donna and Maxi 044We all like to save money when we can thus it is enticing to try and sell your house as a For Sale by Owner (FSBO). However, before undertaking selling the largest asset you own, you might want to read on a bit more.

  • An agent-assisted home sale has a 13% higher sales price than a FSBO sale.
  • In 2014, only 9% of homes sales were FSBO. (Compared to 14% in 2003). Of the 9%, almost half were because the seller knew the buyer.
  • 88% of buyers used the internet and agent in their home search. Most agents have an internet strategy to provide better exposure and can put their listings in front of hundreds of other agents - who are working with buyers.
  • Agents are less inclined to show FSBOs since they will be doing twice the work.
  • Agents are more likely to close a deal as they are more skilled in negotiating and resolving issues.
  • 8 out of 10 FSBOs will end up listing their house with an agent.

Bottom line, before undertaking the complexity of selling your home, see what a real estate professional can offer you. Contact me and put my 20+ years of home selling experience to work for you.  603-526-4116, donna@donnaforest.com, www.donnaforest.comSource:  Statistics from the National Association of REALTORS® Profile of Home Buyers and Sellers 2014

Real estate markets are local, and we have the real scoop on ours. Coldwell Banker Milestone Real Estate

Want to be Close to Mt. Sunapee and the Lake?

This meticulous 3 bedroom, 2 bath home is in a quiet neighborhood near Sunapee Harbor and Mt. Sunapee for year-round fun.  3.58 acres - one of the largest lots in the neighborhood, nestled among trees and very private.  Southern exposure affords lots of light.  Modern, sleek updated kitchen.  Deck off the dining room/kitchen area provides extra summer living space.  Offered at $295,000.  For more photos and details, visit http://www.circlepix.com/home/H4MV5L

VulpisChris McKee, Listing Agent, 603-526-4116

“Word of Mouth” is the best advertisement, and we love it when you refer your friends and family to Coldwell Banker Milestone Real Estate.

New Listing in New London

A great home located within walking distance of the center of town, elementary school, library and town green.  The property has been meticulously cared for inside and out and features hardwood floors throughout and an updated kitchen with granite counters and semi-custom cherry cabinetry.  Inside there is lots of room to spread out, including a heated sunroom with wood stove, and finished family room.  Enjoy the outside from the large deck and pleasant yard.  Move right in and start making your house a home!  Offered at $279,000.  For more photos and details, visit www.NHNeighborhoodColonial.com

MarstonMarilyn Kidder, Listing Broker, 603-526-4116

Teamwork from the Team that works – Coldwell Banker Milestone Real Estate.

One Floor Living - New Listing in Grantham, NH

Meticulously maintained ranch style home in a country setting.  Open floor plan with spacious kitchen with lots of cupboards.  Large living room and dining room flow nicely from the kitchen.  Beautiful hickory hardwood floors in pristine condition.  Master bedroom with bath, two other bedrooms with great closet space.  A nice deck off the dining room makes for pleasant outdoor summer eating.  Offered at $245,000.  For more photos and information, visit http://www.circlepix.com/home/L8TSXF

MonaghanChristina McKee, Listing Agent, 603-526-4116

“Word of Mouth” is the best advertisement, and we love it when you refer your friends and family to Coldwell Banker Milestone Real Estate.

Think Spring?

Seed sowingWith some warmer temperatures and snow melting, it's time to think Spring!  Spring Ledge Farm will be holding their first seed sowing workshop on March 28th between 10am and 2pm.  This will be the third year of this very popular program where you can sow your own seed tray using their seeds, their soil, advice and even their greenhouse space to grow them for a month.  Cost for the workshop is $18.  You will take home a seed tray with 100 plants of spring hope and promise.  Alternatively, for $36, they will grow your seed tray for five weeks, and you can pick it up in the beginning of May. There is no limit on the number of seed trays you sow.   The results of a seed tray grown in a greenhouse, with full light, regular watering, fertilizer and daily attention are excellent. Estimated total time needed to pick out seeds and sow the trays to be about 30 minutes.   Hope to see you there! To see other workshops being offered and more details/information, go to www.springledgefarm.com

Reduce, Reuse, and Yes, Recycle those Plastic Bags Properly

recycleFirst of all, let’s make it perfectly clear that the solution to plastic bag pollution is to eliminate or reduce the use of this type of packaging whenever possible. But sometimes plastic is unavoidable. It seems like plastic packaging is everywhere. The good news is the process of recycling has made it possible to create something new from most of the waste we generate.  Plastic bags are no exception, and not just those single use grocery and retail bags, but also bread and produce bags, sandwich bags, the overwrap on paper products such as toilet paper and paper towels and even plastic cereal box liners. There are a few items, such as “biodegradable” or “compostable” bags, frozen food bags, and crinkly or foil type bags for chips and other goodies, that are not included in this waste stream. Generally, if the plastic film stretches when you pull it with your fingers, it's okay to recycle it at certain designated locations. When cleaned, dried and brought back to participating stores, these items can be combined with recycled wood products and made into plastic lumber used to make decks or reprocessed into pellets or resin used to make new bags, pallets, containers, crates and even pipes. Recycle Responsibly Plastic bags and thin film plastics are troublesome for most recycling facilities. These items are considered ‘contamination’ of single stream recycling, not only jamming up sorting machines but also resulting in higher hauling rates for municipalities when there is a large percentage of them in the single stream collection. The bags and film can be difficult wastes to recycle because they need to be clean, dry and sent to a recycling facility specifically designed for them. In fact, many foreign countries, U.S. cities and the State of Hawaii have even placed a ban on plastic bags at retail outlets.  Plastic pollution is a huge problem for the environment so avoid the use of unnecessary plastic when possible. If you do end up with a collection of plastic bags and plastic film items, do not throw these items in with your plastic or single stream recycling. Make sure they are clean and dry, then stuff them in a plastic bag from the grocery or retail store and place into bins located in participating stores. Remember:  Reduce the amount of plastic you consume by choosing items that use the least amount of packaging and by using reusable tote bags. Reuse or repurpose the bags as much as possible and when all else fails, recycle those bags properly! For more information on how and where to recycle this waste, check out: http://www.plasticfilmrecycling.org/s01/s01dropoff.htmlSource:  The Department of Environmental Services, Concord, NH - February newsletter, Greenworks.

Could Your Emotional Attachment Cost You Money?

Donna and Maxi 044For most people, selling their home is an emotional experience. Many memories are tied up in a house. As your house goes on the market, you need to bear in mind an important thing – your home has just become a commodity. Your goal is to have other buyers see it as their potential home.  As difficult as it sounds, failure to make this emotional disconnect can cost you buyers.  Part of preparing a house for sale is to depersonalize it by removing family photos, trophies, knick-knacks, etc.  This allows buyers to visualize themselves in the space without being distracted.  A house with personality is great – just try to keep the “person” out of it. For more selling tips, visit my website www.DonnaForest.com.  Call me if you want to put my 20 years of experience to work for you!  603-526-4116, donna@donnaforest.com

Tax Deductions for Rental Homes

By: Although being a landlord certainly has its cons, tops among its pros are the tax deductions rental homeowners enjoy.

From finding tenants to fixing faucets, renting out a home can be a lot of work. If that doesn’t dissuade you, you’ll appreciate collecting the rent checks and taking advantage of tax deductions. In fact, you can use many rental property expenses to offset your rental income. IRS Publication 527 has all the details.
Writing off Rental Home Expenses Many rental home expenses are tax deductible. Save receipts and any other documentation, and take the deductions on Schedule E. Figure you’ll spend four hours a week, on average, maintaining a rental property, including recordkeeping. In general, you can claim the deductions for the year in which you pay for these common rental property expenses:
  • Advertising
  • Cleaning and maintenance
  • Commissions paid to rental agents
  • Home owner association/condo dues
  • Insurance premiums
  • Legal fees
  • Mortgage interest
  • Taxes
  • Utilities
Less obvious deductions include expenses to obtain a mortgage, and fees charged by an accountant to prepare your Schedule E. And don’t forget that a rental home can even be a houseboat or trailer, as long as there are sleeping, cooking, and bathroom facilities. Moreover, the location of the rental home doesn’t matter. It could even be outside the United States. Limits on Travel Expenses You can deduct expenses related to traveling locally to a rental home for such activities as showing it, collecting rent, or doing maintenance. If you use your own car, you can claim the standard mileage rate, plus tolls and parking. For 2014, it’s 56 cents per mile. Traveling outside your local area to a rental home is another matter. You can write off the expenses if the purpose of the trip is to collect rent or, in the words of the IRS, “manage, conserve, or maintain” the property. If you mix business with pleasure during the trip, you can only deduct the portion of expenses that directly relates to rental activities. Repairs vs. Improvements Another area that requires rental home owners to tread carefully is repairs vs. improvements. The tax code lets you write off repairs—any fixes that keep your property in working condition—immediately as you would other expenses. The costs of improvements that add value to a rental property or extend its life must instead be depreciated over several years. (More on depreciation below.) Think of it this way: Simply replacing a broken window pane counts as a repair, but replacing all of the windows in your rental home counts as an improvement. Patching a roof leak is a repair; re-shingling the entire roof is an improvement. You get the picture. Deciphering Depreciation Depreciation refers to the value of property that’s lost over time due to wear, tear, and obsolescence. In the case of improvements to a rental home, you can deduct a portion of that lost value every year over a set number of years. Carpeting and appliances in a rental home, for example, are usually depreciated over five years. You can begin depreciating the value of the entire rental property as soon as the rental home is ready for tenants and you hold it out for rent, even if you don’t yet have any tenants. In general, you depreciate the value of the home itself (but not the portion of the cost attributable to land) over 27.5 years. You’ll have to stop depreciating once you recover your cost or you stop renting out the home, whichever comes first. Depreciation is a valuable tax break, but the calculations can be tricky and the exceptions many. Read IRS Publication 946, “How to Depreciate Property,” for additional information, and use Form 4562 come tax time. You may need to consult a tax adviser. Profits and Losses on Rental Homes The rent you collect from your tenant every month counts as income. You offset that income, and lower your tax bill, by deducting your rental home expenses including depreciation. If, for example, you received $9,600 rent during the year and had expenses of $4,200, then your taxable rental income would be $5,400 ($9,600 in rent minus $4,200 in expenses). You can even write off a net loss on a rental home as long as you meet income requirements, own at least 10% of the property, and actively participate in the rental of the home. Active participation in a rental is as simple as placing ads, setting rents, or screening prospective tenants. If your modified adjusted gross income (same as adjusted gross income for most persons) is $100,000 or less, you can deduct up to $25,000 in rental losses. The deduction for losses gradually phases out between income of $100,000 and $150,000. You may be able to carry forward excess losses to future years. Let’s say that for the year rental receipts are $12,000 and expenses total $15,000, resulting in a $3,000 loss. If your modified adjusted gross income is below $100,000, you can deduct the full $3,000 loss. If you’re in a 25% tax bracket, a $3,000 loss reduces your tax bill by $750, plus any applicable state income taxes. Tax Rules for Vacation Homes If you have a vacation home that’s mostly reserved for personal use but rented out for up to 14 days a year, you won’t have to pay taxes on the rental income. Some expenses are deductible, though the personal use of the home limits deductions. The tax picture gets more complicated when in the same year you make personal use of your vacation home and rent it out for more than 14 days. This article provides general information about tax laws and consequences, but shouldn’t be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice.
Visit Houselogic.com for more articles like this.  Reprinted from Houselogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®

New Listing in New London, NH

This traditional half-cape has been well-cared for and its size and layout would meet the needs of a variety of buyers, including those who would prefer one-floor living, or buyers who need extra room for a larger family or visiting friends and relatives.  It also offers some often sought after "extra" rooms:  a first floor den for relaxing, plus another office/den space on the second floor.  The generously sized dining and living rooms are open to each other and share enjoyment of the stone-faced fireplace.  This would be a great house for entertaining!  With the full basement and space over the garage, there is also ample space for storage.  Its convenient location in an established neighborhood adds to its appeal!  Offered at $345,000.  For more information and photos, visit www.NewLondonNHCape.com

CatonWinterMarilyn Kidder, Listing Broker, 603-526-4116

Known for service, trusted for results – Coldwell Banker Milestone Real Estate.

Looking for a Home with Mountain Views?

This light-filled, airy, contemporary cape offers lovely sunsets and mountain views, along with privacy and the convenience of being just 5 minutes from town.  Three bedrooms, with the master bedroom on the first floor, and 3.5 baths.  Work at home in your office/den.  The great room, dining room and kitchen are a great place to relax and welcome guests or family.  A lower level family room offers more play space and storage.  Offered at $540,000.  Visit www.NHMountainViews.com for more photos and details.

LawtonWinterMarilyn Kidder, Listing Broker, 603-526-4116

Teamwork from the Team that works – Coldwell Banker Milestone Real Estate.

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