With tax time here again, here are some of the most common mistakes people make while doing their taxes. Avoid these to save yourself money, and a possible audit.
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Here are some simple tips to help you save money when remodelng your home.
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The freefall in home prices may be over, but the buyers' market persists–there's stiff competition to get a house sold for a good price. In a competitive market sellers need to make every effort for their properties to appear more attractive so they sell for more.
Believe it or not, it's the simple touches–not the big renovations–that often matter the most. HomeGain surveyed 1,000 real estate agents last year to determine which home repairs offer the biggest rewards. After ranking for return on investment, the survey found that cleaning and de-cluttering–including removing personal possessions, polishing woodwork and glass and removing excess furniture–is the most important. Spending $100 to $200 tidying up can increase a home price by $1,500 to $2,000.
Certain renovations can also add value, but they don't have to be major overhauls. One simple suggestion would be to install a new front door. It's an inexpensive exterior improvement. Also consider replacing worn-out siding. New fiber-cement siding will generate the best return on investment, but vinyl siding will work for those with smaller budgets.
Pre-sale home inspections have gained traction in the down real estate market because sellers are trying anything and everything to outdo one another. With a heavy supply of houses on the resale market, a pre-sale inspection can provide extra assurance that there won't be any surprises after signing the sale contract.
Sellers needing to move quickly should remain focused on the basics, neutral paint jobs and replacing or cleaning carpets. That could be the difference between a signed contract and the for-sale sign remaining on the lawn.
The housing market is still very unstable. One month we read that home sales are strong and home prices are rising. The next month we see that sales are down. One piece of discouraging news that came out recently was that in the fourth quarter of 2009 another 600,000 homeowners found themselves "underwater" or owing more on their mortgages than their homes were worth. In fact, the total number of households in this situation is now over 11 million people or 24 percent of all properties that carry a mortgage. This information, reported by First American Core Logic, a real estate research firm, tells us that many people are still really struggling.
The first choice for many homeowners in this situation is to try to restructure their existing mortgages. However, this can be a very long and painstaking process and many people find they do not qualify. As a result, more and more people are thinking about walking away from their existing homes and mortgages.
Aside from the moral considerations, which are great, what are the points you need to consider before you think about walking away from a mortgage? First, you need to understand this is a huge decision. It might seem like this option would solve a lot of your problems, but in reality, it generally just adds more. Probably the biggest impact is - you will not be able to get a new mortgage for quite some time — five years being typical. That means you need to prepare to be a renter for at least that amount of time.
Plus, your credit score and credit record will be adversely impacted for about seven years. During that time, your ability to get any other kind of loan will be negatively impacted. Car loans, assuming you can get them, will be at very high interest rates. Same for any other type of consumer loan. Finally, there may be adverse tax implications as well.
So, walking away is certainly not without its costs. If your financial life is going to be impacted for five to seven years anyway, it just might make more sense to hang in there and keep making the mortgage payments. No one can accurately predict what the real estate market might look in 2015 — perhaps by then your situation could be dramatically different.
If you're getting ready to sell your home, do everything you can to get the house in good condition before you attempt to sell it, but don't be discouraged if the inspection report contains negative statements. Home inspectors make note of everything they see. No home is perfect.
Fix leaks and clogs before the home inspection takes place. The inspector will check water pressure by turning on multiple faucets and flushing toilets at the same time. Appliances such as dishwashers and clothes washers will be tested, too. Leaks and clogs will be apparent during these checks.
The home inspector might check the septic system (if you have one). During one method dyes are flushed down a toilet. The inspector waits to see if the dye surfaces on the drainfield, indicating a drainage problem.
The electrical panel and circuit breaker configuration should be adequate for the needs of the house. A 125 amp electrical panel works for most homes. Individual circuits should not be overloaded.
The inspector will look for receptacles with ground fault circuit interrupters (GFI) in bathrooms and kitchens. These receptacles have little test-reset buttons on them. The home inspector will likely make sure the receptacles are what they appear to be, and not "dummies" that aren't wired to work.
Some of the grounded receptacles (with 3-pronged plugs) will be checked too.
The inspector will check the heating and cooling systems, making sure they work he may add comments about their efficiency. The inspector will take a close look at the structure and foundation. All appliances will be checked. The inspection report will include details about smoke detectors.
Remember that the home inspection report is not a wish-list for buyers. Read your contract carefully–it probably states which systems should be in good working order at closing.
Your contract may also state that you are under no obligation to make any repairs at all–although the buyers can then likely withdraw from the contract. Don't feel you must comply with unreasonable demands for repairs.
