Real Estate Info

And Survey Says. . .

The National Association of REALTORS recently published their annual survey of recent home buyers and sellers.  This covers information on national housing data such as demographics, housing characteristics, and consumer experiences.  Below are come interesting highlights from the 2016 survey.

  • First time home buyers made up 35% of the total buyers - up 3% from 2015.
  • 'Buyers typically searched for ten weeks and looked at a median of ten homes before purchasing.
  • 88% of buyers used an agent in their buying process.
  • 88% of buyers got a mortgage to finance their purchase.
  • Sellers typically lived in their home ten years before selling.
  • 89% of sellers worked with an agent to sell their home.
  • Only 8% of the homes sold were for sale by owner (FSBO) and sold for less than agent-assisted sales.

Contact me if you want to work with an agent who knows the pulse of buyers and sellers in today's market!  603-526-4116, Donna@DonnaForest.com, www.DonnaForest.com

Real estate markets are local, and we have the real scoop on ours.  Better Homes & Gardens Real Estate - The Milestone Team

Real Estate Buyer Etiquette

HR.Donna_3144CroppedThere are certain unwritten rules of etiquette buyers should follow when they are out looking at homes.  Most are common sense and just plain ole being courteous!  Below are some tips for being a courteous buyer.

  • Take shoes off.  Mud, snow, rain - you may be out looking in all types of weather so don't tramp through a house with your wet/dirty shoes on.  Take them off and go in your socks or bring clean shoes to wear.  Extra tip - check your socks for holes before heading out!
  • Control your kids.  They shouldn't play with the toys they found or run unattended through the home.
  • Be on time.  When showings are set up, the seller leaves the house, a listing agent meets you there along with your buyer's agent.  Being late impacts many people, not to mention it may  put the whole showing schedule behind.  Unavoidably detained?  Then call your agent for a heads up.
  • Don't spend an hour viewing a home you already decided you dislike.  It's okay to do a quick look and say it's not to your liking.

If you are looking for a buyer's agent to help navigate successful home buying, then contact me and follow me on Facebook!  603-526-4116; Donna@DonnaForest.com; www.DonnaForest.com

You’ll be moving in the right direction with Coldwell Banker Milestone Real Estate.

Don't Miss These Home Tax Deductions

By: From mortgage interest to property tax deductions, here are the tax tips you need to get a jump on your returns.

Owning a home can pay off at tax time. Take advantage of these home ownership-related tax deductions and strategies to lower your tax bill:
Mortgage Interest Deduction One of the neatest deductions itemizing homeowners can take advantage of is the mortgage interest deduction, which you claim on Schedule A. To get the mortgage interest deduction, your mortgage must be secured by your home — and your home can be a house, trailer, or boat, as long as you can sleep in it, cook in it, and it has a toilet. Interest you pay on a mortgage of up to $1 million — or $500,000 if you’re married filing separately — is deductible when you use the loan to buy, build, or improve your home. If you take on another mortgage (including a second mortgage, home equity loan, or home equity line of credit) to improve your home or to buy or build a second home, that counts towards the $1 million limit. If you use loans secured by your home for other things — like sending your kid to college — you can still deduct the interest on loans up $100,000 ($50,000 for married filing separately) because your home secures the loan. Prepaid Interest Deduction Prepaid interest (or points) you paid when you took out your mortgage is generally 100% deductible in the year you paid it along with other mortgage interest. If you refinance your mortgage and use that money for home improvements, any points you pay are also deductible in the same year. But if you refinance to get a better rate or shorten the length of your mortgage, or to use the money for something other than home improvements, such as college tuition, you’ll need to deduct the points over the life of your mortgage. Say you refi into a 10-year mortgage and pay $3,000 in points. You can deduct $300 per year for 10 years. So what happens if you refi again down the road? Example: Three years after your first refi, you refinance again. Using the $3,000 in points scenario above, you’ll have deducted $900 ($300 x 3 years) so far. That leaves $2,400, which you can deduct in full the year you complete your second refi. If you paid points for the new loan, the process starts again; you can deduct the points over the life of the loan. Home mortgage interest and points are reported on Schedule A of IRS Form 1040. Your lender will send you a Form 1098 that lists the points you paid. If not, you should be able to find the amount listed on the HUD-1 settlement sheet you got when you closed the purchase of your home or your refinance closing. Property Tax Deduction You can deduct on Schedule A the real estate property taxes you pay. If you have a mortgage with an escrow account, the amount of real estate property taxes you paid shows up on your annual escrow statement. If you bought a house this year, check your HUD-1 settlement statement to see if you paid any property taxes when you closed the purchase of your house. Those taxes are deductible on Schedule A, too. PMI and FHA Mortgage Insurance Premiums You can deduct the cost of private mortgage insurance (PMI) as mortgage interest on Schedule A if you itemize your return. The change only applies to loans taken out in 2007 or later. What’s PMI? If you have a mortgage but didn’t put down a fairly good-sized down payment (usually 20%), the lender requires the mortgage be insured. The premium on that insurance can be deducted, so long as your income is less than $100,000 (or $50,000 for married filing separately). If your adjusted gross income is more than $100,000, your deduction is reduced by 10% for each $1,000 ($500 in the case of a married individual filing a separate return) that your adjusted gross income exceeds $100,000 ($50,000 in the case of a married individual filing a separate return). So, if you make $110,000 or more, you can’t claim the deduction (10% x 10 = 100%). Besides private mortgage insurance, there’s government insurance from FHA, VA, and the Rural Housing Service. Some of those premiums are paid at closing, and deducting them is complicated. A tax adviser or tax software program can help you calculate this deduction. Also, the rules vary between the agencies. Vacation Home Tax DeductionsThe rules on tax deductions for vacation homes are complicated. Do yourself a favor and keep good records about how and when you use your vacation home.
  • If you’re the only one using your vacation home (you don’t rent it out for more than 14 days a year), you deduct mortgage interest and real estate taxes on Schedule A.
  • Rent your vacation home out for more than 14 days and use it yourself fewer than 15 days (or 10% of total rental days, whichever is greater), and it’s treated like a rental property. Your expenses are deducted on Schedule E.
  • Rent your home for part of the year and use it yourself for more than the greater of 14 days or 10% of the days you rent it and you have to keep track of income, expenses, and allocate them based on how often you used and how often you rented the house.
Homebuyer Tax Credit This isn’t a deduction, but it’s important to keep track of if you claimed it in 2008. There were federal first-time homebuyer tax credits in 2008, 2009, and 2010. If you claimed the homebuyer tax credit for a purchase made after April 8, 2008, and before Jan. 1, 2009, you must repay 1/15th of the credit over 15 years, with no interest. The IRS has a tool you can use to help figure out what you owe each year until it’s paid off. Or if the home stops being your main home, you may need to add the remaining unpaid credit amount to your income tax on your next tax return. Generally, you don’t have to pay back the credit if you bought your home in 2009, 2010, or early 2011. The exception: You have to repay the full credit amount if you sold your house or stopped using it as primary residence within 36 months of the purchase date. Then you must repay it with your tax return for the year the home stopped being your principal residence. The repayment rules are less rigorous for uniformed service members, Foreign Service workers, and intelligence community workers who got sent on extended duty at least 50 miles from their principal residence. Energy-Efficiency Upgrades The Nonbusiness Energy Tax Credit lets you claim a credit for installing energy-efficient home systems. Tax credits are especially valuable because they let you offset what you owe the IRS dollar for dollar, in this case, for up to 10% of the amount you spent on certain upgrades. The credit carries a lifetime cap of $500 (less for some products), so if you’ve used it in years past, you’ll have to subtract prior tax credits from that $500 limit. Lucky for you, there’s no cap on how much you’ll save on utility bills thanks to your energy-efficiency upgrades. Among the upgrades that might qualify for the credit: File IRS Form 5695 with your return. Related: A Homeowner’s Guide to Taxes 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; tax laws may vary by jurisdiction. Visit Houselogic.com for more articles like this.  Reprinted from Houselogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®

Do You Know How to Boost Your Home Value?

HR.Donna_3144CroppedConsumer Reports, March 2016, published an article on “8 Ways to Boost Your Home’s Value”, based on their survey of 1,573 millennials.  Millennials & downsizing baby boomers are the next wave of buyers.  Sellers should take note of what they are looking for in a home:

  1. A modern kitchen topped the list. Consider adding new stainless steel appliances, quartz countertops, updating cabinets and hardware. Potential bump in sale price 3-7%
  2. Open floor plan w/flexible living space. Consider finishing the basement, carving out space for an office, creating an in-law apartment. Potential bump: 4-6%
  3. Energy efficiency. Consider energy star rated windows, LED lights, efficient water heaters. Potential bump: 1-3%
  4. Stress-free living. Consider updating aging systems, new roof, adding hardwood floors. Potential bump: 3-5%
  5. Have a home for “the ages”.  First floor master, walk-in shower, comfort height toilets. Potential bump: 1-2%
  6. Low maintenance outdoor spaces. Avoid overly lush landscaping. Potential bump: 3-5%.

Contact me if you’d like a copy of the full article so you can make informed decisions on your next home improvement projects.  Donna Forest 603-526-4116, Donna@donnaforest.com, www.DonnaForest.com

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

Steady as She Goes

HR.Donna_3144CroppedThe housing market has settled into a steady groove with home prices expected to follow more normal rates consistent with a balanced market.  Home prices rose 4% nationally in 2015.  Kiplinger forecasts prices to rise 3% in 2016 while CoreLogic Home Price Index predicts a 4-5% increase. What type of buyer will drive the market this year? According to the National Association of REALTORS®, there are 3 main sectors of buyers expected to stimulate the housing sector.

  • Millennials, born about 30 yrs. ago, are starting to realize their financial goals and thus become first-time home buyers.
  • Older baby boomers nearing retirement age will be seeking to downsize and lower their cost of living.
  • Formerly distressed homeowners are expected to actively participate in the housing market as well.

Every market is local and there are certain parts of the country with “hotter” markets than others. Whether buying or selling, contact me if you’d like to know how the local market impacts you.  Donna@DonnaForest.com, 603-526-4116, www.DonnaForest.com.

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

Reflecting on the 2015 Local Real Estate Market

HR.Donna_3144CroppedAs 2015 comes to an end, I started reflecting on the year and what I’ve observed. I thought it might be helpful for buyers and sellers if I shared a few thoughts. In no particular order, here are my words of wisdom!

  • Most buyers don’t want a project. They don’t have the inclination to fix up a house. Sellers need to repair/ update their homes in order to sell.
  • Sellers should disclose everything; good and bad. Not disclosing will end up costing you.
  • Location, location still holds true. Today’s buyers want to be near amenities and closer to town. Rural areas hold less appeal; targeting about 11% of the buyers.
  • Antique homes take longer to sell - only about 8% of the buyers are looking for one.
  • If you wait to find the “perfect” home to buy, you will never find a home.
  • Home prices have risen since 2013. You will end up paying more for a house the longer you wait to buy.

And lastly, it still is a good time to purchase a home. Low pricing, historically low rates, and good inventory combine to make perfect buying conditions. Thinking of buying or selling? Give me a call!  Donna Forest 603-526-4116, www.donnaforest.com, donna@donnaforest.com

You’ll be moving in the right direction with Coldwell Banker Milestone Real Estate.

Homeowners Insurance: Time for an Annual Checkup

It’s time for your annual check-up. The good news is that for this one, you won’t have to don one of those revealing hospital gowns — and you may walk away with a healthier pocketbook. We’re talking about a homeowners insurance check-up, a task you should complete once a year, ideally around renewal time. This will ensure your policy still provides the right level of coverage for your family, and your premium isn’t costing you more than it should. Remember, homeowners insurance is essential. The coverage is designed to protect your home and its contents, as well as shield you from liability for accidents and such on your property.

Block out an hour of your time, call an insurance agent, and get answers to these three important questions.
What type of coverage do I have? The most effective type of coverage is known as “replacement cost,” which covers, up to your policy limits, what it would take today to rebuild your house and restore your belongings, says Jerry Oshinsky, a partner at Jenner & Block in Los Angeles who has represented homeowners in litigation against insurers. “Extended” replacement cost coverage provides protection to your policy limit, say $500,000, and then perhaps another 20% of the cost after that. Percentages vary, but in this example you could recoup up to $600,000 on a $500,000 policy, assuming your losses reach that high. Extended coverage can compensate for any unanticipated expenses like spikes in construction costs between policy renewals. Now harder to find due to the industry shift toward extended replacement coverage, “full” or “guaranteed” replacement coverage covers an entire claim regardless of policy limits. A less attractive alternative is “actual cash value” coverage that usually takes into account depreciation, the decrease in value due to age and wear. With this type of policy, the $2,000 flat-screen TV you bought two years ago will be worth hundreds of dollars less today in the eyes of your claims adjuster. Kevin Foley, an independent insurance broker in Milltown, N.J., favors replacement cost coverage unless you can save at least 25% on the premium for going with actual cash value coverage instead. Even if you have replacement cost protection for your dwelling and personal property, don’t assume everything is covered. Structures other than your home on your property — such as a detached garage or swimming pool — require separate coverage. So too do luxury items like jewelry, watches, and furs if you want full replacement cost because reimbursement for those items is typically capped. How much coverage do I really need? OK, now that you’re clear on what type of policy you have, you need to figure out how much policy you truly require in dollar terms. Let’s say you purchased your home five years ago and insured it for $200,000. Today, it’s worth $225,000. Simply increasing your coverage to $225,000 may nonetheless leave you underinsured. Here’s why. The key to determining how much dwelling coverage you need isn’t the value of your home but the money you’d have to pay to rebuild it from scratch, says Carlos Aguirre, an agent for Liberty Mutual Insurance in Arlington, Texas. Call your local contractors’ or homebuilders’ association and inquire about the average per-square-foot construction cost in your area. If it’s $150 and your home is 2,000 square feet, then you should be insured for $300,000. There’s no rule of thumb for how much your homeowners insurance should cost. Insurers use numerous factors—age, education level, creditworthiness—to determine pricing, so the same policy could run you more than your neighbor. In recent years the average annual premium was $804. Oshinsky advises against scrimping on insurance because big increases in coverage probably cost less than you’d think. He recently purchased a liability policy that cost $250 for the first $1 million in coverage. Adding another $1 million increased his premiums only $12.50 more. How can I lower my premiums? The higher your deductible, the amount you pay out of pocket before coverage kicks in, the lower your premium. Landing on the appropriate deductible level requires remembering that insurance should cover major calamities, not minor incidents, says Foley, the independent insurance broker. Most homeowners should be able to absorb modest losses like a broken window pane or a hole in the drywall without filing claims. If you can, then you’re wasting money with a $250 deductible. Foley’s rule: If you’re a first-time homeowner and don’t have a lot of savings, moving up to a $500 deductible will probably stretch your budget. However, if you live in a ritzy home and drive an expensive car, then you should be able to afford a $1,000 deductible. In Milltown, N.J., for example, the premium for a $200,000 home with a $500 deductible would be $736, according to Foley; moving up to a $1,000 deductible drops the annual premium to $672. That’s $64 in savings. Every major insurer offers discounts to various groups, such as university employees or firefighters. Figure about 5%. Ask which affiliations would entitle you to a discount and how much. If an AARP membership would result in a $50 savings, pay the $16 dues and pocket the $36 difference. Many insurers also offer discounts ranging from 1% to 10% or more for installing protective devices like alarms and deadbolt locks, for going claim-free for an extended period, or for insuring both your car and your home with the same carrier.
Visit Houselogic.com for more articles like this.  Reprinted from Houselogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®

Looking to Close Your Home Quickly? New Time Clock for Closings

HR.Donna_3144CroppedA new rule from the Consumer Financial Protection Bureau went into effect Oct. 3 requiring lenders to give consumers more time to review their loan documents. Mortgagors must give borrowers the terms of their loan and final charges & fees at least 3 days before the closing (7 days if sent by mail). It is designed to protect you from surprises at the closing table. Sounds pretty simple, right? Well the reality is, it is a massive change in the way lenders do business from new forms to new timetables. The 3 day period is mandatory and this waiting period can start over again if one of 3 changes occur: 1) The annual percentage rate increased more than 1/8th; 2) The loan product changes like switching from a fixed rate to an adjustable; or 3) A pre-payment penalty is added. Other alterations don’t require a new 3-day review like revisions to taxes, utility prorations, etc. Until lenders have some time under their belt in dealing with these new regulations, buyers & sellers need to be prepared. 60 day closings may be the normal, last minute changes most likely will not be authorized, required paperwork will need to be completed earlier, and buyers & sellers should have a backup plan in the event something triggers a new 3-7 day waiting period and you can’t close as scheduled. Contact me if you are looking to work with a knowledgeable REALTOR® who can help you successfully navigate the buying or selling process!  Donna Forest, Broker Associate, 603-526-4116, www.DonnaForest.com, donna@donnaforest.com.

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

Waiting to Buy Could Cost You

HR.Donna_3144CroppedIf you’ve been on the fence about buying your first house or moving up to a larger one, waiting until next year may ultimately mean more money out of your pocket. Why? Not only are home prices rising, the interest rate you pay on a mortgage is also expected to increase. The higher the rate, the greater the payment will be.  Let’s look at an example of how this impacts a mortgage payment. Say you found your dream home today and are getting a loan for $250,000. Current mortgage rates are around 4% so the monthly payment is $1194 (principal and interest only). By this time next year, rates are projected to increase to around 5% and home prices are also expected to increase about 4.3%.   To buy that same house, you now are getting a loan for $260,750 and the monthly payment is $1400. The difference in payment is $206 more a month! Over the course of a year, that is $2472. Hmm, I’m sure you could think of plenty of things to do with that kind of extra money! Bottom line, if you seriously want to buy, waiting until next year does not make sense. Contact me if you want to take advantage of today’s rates and pricing to find your new home.  www.donnaforest.com, donna@donnaforest.com, 603-526-4116.

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

Do This One Thing and Save Money

003EditedIf you want to save money and sell your house faster with less stress, then I highly recommend a pre-listing home inspection. Sellers usually wait for buyers to have inspections on their house and then cross their fingers, hoping for no surprises. More often than not, issues do come to light and sellers are left dealing with several factors in an already highly emotional situation. Buyers may feel a certain level of distrust, wondering why the sellers were not aware of the condition of their home. Time is spent getting 2nd and 3rd opinions on the cost to fix things and most likely, sellers will end up negotiating a lower selling price in order to resolve the problems. Or worst case, buyers cancel the contract and move on to another property. A pre-listing home inspection will make sellers better informed, give control on fixing problems and allows time to provide accurate repair costs upfront to buyers, if needed.  Spending a few hundred dollars in the beginning could save thousands in the end. Contact me if you would like an experienced agent help you navigate the complexities of selling.  603-526-4116; donna@donnaforest.com; www.donnaforest.com

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

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