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2/11/2018

Big home improvement projects can leave a big hole in your pocket, but you can lower your costs by negotiating the contract price and terms. If you are looking for ways to save money on home improvements, take a look at these five tips for winning negotiations with contractors.

Research

Always make sure to verify contractors’ credentials and experience before you hire them. If you are comfortable working with a contractor with less experience and less time in the trade, you may be able to secure a much lower price. Just understand that there may be a quality and timeframe tradeoff. You can also research the costs of the materials needed for the project for a bargaining chip. A material cost list will help you decide whether or not the contractor is charging higher prices for the supply portion of the project.

Shop Around

It’s hard to tell whether you are getting a great deal on your home improvement project without having anything to compare the price to. Get at least three comparable bids or estimates for the project. Contractors may be willing to lower their cost or negotiate particular terms in the contract if they are competing for the work. Make sure to provide the contractor with as many project details as you can and read each estimate thoroughly.

Buy Your Own Supplies

Many contractors offer to buy the supplies needed for the project and tack the cost onto the estimate or bill you for them later. Contractors often buy supplies from the same supplier, meaning they may not be getting them at the best price. Save yourself money by offering to buy the supplies yourself to make sure you are getting the best deals.

Timing

The cost of your home project will depend somewhat on the season you want the work done. You might be able to save money by seeking estimates during a slow construction season when contractors will be more willing to negotiate the costs. If you live in a cold climate and you want to add a room to your home, consider calling contractors for an estimate in the winter. The work may not be able to start until warmer weather, but you may be able to lock in their winter rates.

Approach the Contractor as an Ally

If you approach the pricing as if the contractor is against you, this will establish a hostile relationship. Treat contractors as allies and they will work with you to find the right price for your budget. Show them respect and ask for changes that may help you save money on the projects. For example, you may be able to find less expensive countertops or a different type of flooring at a better rate.

Keep these tips in mind the next time you comparison shop for a home contractor. For even more ways to save on home improvements and repairs, do not hesitate to contact me today.

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2/05/2018

Someday, whether you’re downsizing or moving to another region, you’ll probably want to sell your home. Whether this is something you’ll be doing in one year, five years or 20 years, spending time and money upgrading your house now will increase its market value. How well these strategic home renovations work often depends on where you live, so keep your residential area in mind when you consider the different ways to improve your home.

And meanwhile, of course, you’ll be able to enjoy these upgrades yourself!

Here are five home improvements that in general give the best return on investment.

• Upgrade your home’s systems. Many homebuyers plan to renovate specific rooms after they invest in a place, so appeal to these shoppers with fully functioning home systems. Make sure your appliances are working properly, especially in extreme climates where appliances require additional maintenance, and upgrade them if needed to save your buyer from dishing out extra cash on home upkeep.
• Improve your home’s exterior. Most homebuyers are drawn to places based on curb appeal, so impress these shoppers before they enter with a top-notch exterior. Check your roof regularly and replace it accordingly, especially in the East, and add fresh siding, a built-in porch, a modern garage door or a trendy front door to seal the deal.
• Expand your home’s interior. A number of homebuyers want additional space, within their budgets, so address these shoppers with creative additional rooms. Increase square footage where you can, especially in competitive markets, by transforming your attic into a bedroom, extending your family room or adding a sunroom to increase house size and maximize your sales price.
• Remodel your home’s kitchen. Many homebuyers appreciate minor kitchen remodeling, so appeal to these shoppers with quality improvements in this area. Install hardwood floors in and around your kitchen, especially if you’re in a place like Miami, San Diego or New Orleans, and include all-wood cabinets, trendy appliances or stone counters to bring in more than the total cost later on.
• Renovate your home’s bathroom. Every homebuyer spends a lot of time in his or her bathroom, so tempt shoppers with convenient bathroom additions or a completely new bathroom. Install a walk-in shower or replace the tub, especially in Baltimore, where bathroom remodels recoup over 100 percent of their final costs at resale. People want to save space in America’s most populated cities, so tap into these markets to earn nearly triple-digit returns.

These five home improvements that give the best ROI enhance your home’s quality and augment its resale value.

Of course, this is just general. There can be wide geographic differences; some features are almost mandatory in one state but are met with “who cares?” in others. We’re the experts who know what works in your neck of the woods. When you’re ready to take action and guarantee yourself a satisfactory ROI on your home, I’m only a phone call away!

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2/01/18

While most people know that the best way to keep your family and home safe is to install an alarm system, new innovations in home security have made older alarm packages nearly obsolete. Because of this, it is important to know about all the must-have features for today’s home security systems before you start looking to upgrade your home’s security features. This includes easy, do-it-yourself additions, as well as more complex systems that may require the assistance of a professional.

Security Feature #1: Door Chimes

Many security systems will allow you to set a door chime to go off every time a door is opened or closed. This is useful because it is active at all times — not just when the alarm system is armed. Having a door chime will let you know anytime an exterior door is opened in your home. This chime can alert you to any number of things — from unwelcome intruders to wayward children wandering out of the house.

Security Feature #2: Video Surveillance Systems

While video surveillance systems have been in use for years, new advances have made them far more reliable and useful. You will be able to tap into your home’s video system from your laptop, phone or tablet, making it easy to monitor the interior and exterior of your home on the go.

Security Feature #3: Doorbell Cameras

Many newer doorbells are equipped with cameras or video surveillance. For example, one popular model will send a photo to your phone every time someone steps onto your front porch. This will let you know who is there before you even open the door. This can be useful for security purposes, but also for more mundane purposes. For example, if you know that your visitor is just the delivery man dropping off a package, you will not need to rush to open the door.

Security Feature #4: Bluetooth Deadbolts 

Many newer door locks are Bluetooth-enabled. This makes getting in a snap — if you have your phone on you, simply tap the deadbolt and it will unlock due to the close proximity of your phone. This is more secure than a traditional lock that can easily be picked. You will also be able to remotely monitor your door using your smartphone. This way, you can double-check that the door is locked when you are at work or out running errands.

Security Feature #5: Floodlights

Having a motion-activated floodlight in your yard can help alert you to any nighttime activity outside your home. The threat of being detected can frequently scare away would-be intruders, so the floodlights alone are often enough to protect your home from a break-in.

Consider adding one or all of these features. They can provide you with both convenience and peace of mind.

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1/29/2018

It’s easy to get tunnel vision when selling a home. All you’re focused on is whether you’ll meet your asking price. Yet, if you aren’t taking into consideration the tax implications of selling your home, you may be making a huge mistake. Here’s what you need to consider before you sell.

1. You Pay Lower Taxes Only When Selling Your Primary Residence 

Homeowners get lots of tax rebates and credits. You can claim a tax deduction just for buying a new home. When you are selling your home, you need to know that these tax credits apply only if you are selling your primary dwelling, not your rental property or vacation home.

2. You May Exclude Gains IF You Meet Ownership and Use Tests 

How long you’ve been in your home will have a huge effect on how any gains made from selling your property are treated. Short-term gains get taxed higher than long-term gains. The IRS institutes the ownership and use tests to determine if a homeowner can exclude some or all of the gains from selling a home.

According to the IRS, you have to have both lived in the primary residence that was sold and owned it for a minimum of two years before it can be excluded. On top of that, those two years have to fall within a 5-year window between the date that you bought the property and the date that you sold it.

Say you sell your home for a million dollars. The most that you can exclude from your taxes is $500K if you own the property jointly with someone ($250K for individuals). The rest of the gains have to be counted and taxed as part of your regular income. If you lost money when you sold your home, you cannot deduct the loss from your income; it is just reported as a loss.

3. You Don’t Always Have to Report a Home Sale on Your Taxes

Before you disclose any gains on your taxes, make sure that you actually have to report them. If you sold a small parcel of land for perhaps $20K, you may not even have to declare it: the reporting threshold is $250K for an individual.

If you have gains above and beyond that $250K, they have to be reported. Whether to exclude any part of your gains is up to you. You could choose not to exclude any of them.

You do have to report gains made from selling a second house, but you can still exclude any gains made from selling your primary home—that is, if you sell them both in the same year. You will have to pay taxes for at least one of these dwellings. And you have to report any gains from any rental property that you lease out unless you meet the ownership and use tests discussed above for rental properties.

For more information and advice on the tax implications of selling a home, call or email me today.

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1/25/2018

After living in a home for a few years, you might start itching for a kitchen upgrade. However, it can be difficult to come up with a list of kitchen upgrades that you can complete on a budget. The average kitchen remodel costs nearly $20,000—a figure that is far beyond the reach of the average family on a budget. Instead of doing a full kitchen remodel, consider taking advantage of some of these affordable kitchen upgrades that will not break the bank.

1. Replace Outdated Light Fixtures

One of the most obvious signs of age in your kitchen is a dated light fixture. A brightly colored pendant light will give your kitchen a more modern look. These can be found online at surprisingly affordable prices. Taking some time to shop around is well worth your time.

2. Install New Handles or Pulls for Cabinets and Drawers

Cabinet fixtures come in a wide range of colors and styles that include everything from traditional metal handles, such as copper or brushed nickel to trendy styles like handles that resemble tiny silverware. Replacing your cabinetry hardware is a quick, easy and affordable way to give your kitchen a facelift.

While some people love trendy designs, carefully weigh your options before settling on something unusual. You might like it now, but how will you feel about it a year from now? You will not want to spend money replacing the handles again if you get tired of them or if the trend goes out of style.

3. Repaint Your Cabinets

If just replacing the hardware is not enough, consider repainting the entire row of cabinets. For the cost of a can of paint and a few hours of your time, you could have your kitchen cabinetry looking as good as new. Brand-new cabinets can be a costly upgrade, but freshly painted cabinets are almost as good at a fraction of the cost.

4. Remove Cabinet Doors

If repainting your kitchen cabinets does not appeal to you, consider removing the doors entirely. Open-faced cabinets can instantly give your kitchen a more modern look. The one drawback to this strategy is that you will need to keep the contents of your cabinets neat and tidy in order for it to work. For this reason, many designers use open-faced cabinets on the upper levels and traditional closed cabinets on the lower levels.

Using one or all four of these strategies can help give your kitchen a facelift without breaking the bank or going over your budget on the project.

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1/22/2018

Buying a new home can be a really exciting time, but it can also be a bit stressful and overwhelming. Closing costs are often a point of concern for first-time home buyers. How much will they be? Will you have enough money to cover the costs? What do closing costs even cover?

Thankfully, there are some steps that you can take to reduce your closing costs, which are the fees associated with closing on your home. They typically include things like attorney fees, title search, insurance, and more.

Here’s a few things to consider with your agent:

#1: Start by understanding your closing costs. Closing costs will vary significantly depending on location where you are buying, the purchase price of the home and even the day of the month when the closing is scheduled. States with higher tax rates, for example, would have higher closing costs. Closings that occur towards the end of the month will be more cost effective as you will have to pay per diem interest for fewer days.

#2: Go shopping for your closing costs. This financial comparison shopping should include your mortgage lender, title insurance company, homeowner’s insurance policy and even your home inspection. Not only can the best deal on homeowner’s insurance lower your closing costs, you will save on insurance premiums in the long run. You may want to inquire about reissue rates on your homeowner’s title insurance. If the seller purchased the home and the policy within the last ten years, the policy can be reissued to the buyer with as much as a 40% savings.

When talking to potential lenders about your mortgage also ask for ballpark estimates on the closing costs. All banks are not created equal and you will need to make comparisons and possibly even negotiate between lenders for the best deal. Also look out for junk fees that are unnecessary.

#3: Ask for a lender credit. A lender credit is where you agree to a higher mortgage rate. You’ll end up paying a little more each month for your mortgage but your closing costs may be lower. This is a great option if you plan on staying in this particular home for a long time.

#4: Ask the seller to contribute. This isn’t always an option, but in a struggling market or where a property has been listed for a long time it is worth a try to see if the seller is willing to help with the closing costs. Ask your Realtor to help you negotiate.

Of course, these are just a few of the many ways that you can save on your closing costs when buying your first home. For more tips and tricks, give me a call today.

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1/18/2018

Although putting a professional inspection contingency in the contract will help protect you from surprises, doing your own inspection before making an offer could save you considerable time and money.
How can you tell if a property is worth buying? Here’s how to look at the big picture—for structural concerns, major repairs that are needed, appliances that have to be replaced.

Crawl the Walls

Start out by going to the right when you enter the house, and keep following the wall. You will check each wall that way. Do the same on every floor. Look for settlement cracks, separating joints, defective plaster or other signs of stress or damage. Check wallpapered areas for crinkling or gathering, which may mean walls are settling or shifting.

Look for Leaks

Loose or wrinkled wallpaper could indicate a water leak somewhere. Look for water stains on the ceiling and walls. You may have to look closely—bring a flashlight—in case they have been painted over or repaired.
Spend time in the bathrooms and in every area with pipes, checking for leaks and drips. Also, run the shower and basin, then flush the toilet to check water pressure. Look for cracked or loose tiles and missing grout or mildew stains on the walls or floor, which could indicate a behind-the-wall leak.

Plug Into the Electrical System

Check every electric socket or outlet. Use a plug-in night light and turn every switch on and off. Look for extension cords and multiple plugs in sockets, which could mean insufficient or poorly placed sockets. Also, check every appliance to be sure it works well.

Focus on Condition

Open and close every door and window. Look and listen for squeaking, sticking, or a tendency to close on their own. Check for evidence of shifting or settling around the front stoop, chimney and walks, and places where the driveway and the fence meet the house. Also, check the deck for sturdiness and look for rotted wood. Go into the garage and check the walls, floors and doors—inside and out.

Pay Attention to Pests

Look for termites and ants. Especially look along the foundation, around doors and entry points of wiring and pipes. Check the grading of the yard to be sure water runs away from the house.

You can and should insist on a written report detailing what the problems are with the house, how important each one is. You may have to consult a contractor to estimate repair costs on any problems found.
If everything looks good and you decide to purchase the house, be sure to require a home inspection by a professional inspector before settlement. You will want a professional who will get into the crawl space, climb onto the roof and poke around with a flashlight in the attic. Your professional should also carefully inspect the major systems—electrical, gas, plumbing and heating/air conditioning.

To make sure a home is in tip-top shape before making an offer, give me a call today for more information about how you can spot red flags.

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1/15/2018

Purchasing a home is a big financial responsibility, but the rewards of home ownership are many. Particularly for first-time home buyers, coming up with the down payment needed to see your dream to fruition can often seem overwhelming. There are many strategies, however, that can help you save for your down payment.

It should also be noted that various loan programs exist that would allow you to drastically reduce the amount of money needed for a down payment. For example, VA loans often require 0% down, while FHA loans see down payment options ranging from 3-6%.

When you’re ready to start saving for your down payment, consider these smart solutions:

#1: Cut Back

When you realize that cutting back on certain things can help you reach your goals, it will change your perspective. Think of it as an investment rather than a loss. Here are some areas where you can potentially cut back:

• Morning coffee and stops in the car for water, drinks and snacks … carry your own
• Cable and expensive internet … use some of the cheaper options such as Netflix
• Eating out … cook at home and use leftovers for quick meals and lunches

#2: Do it Yourself

You can save on a number of the services you pay for each month by doing it yourself. While there is a time and place for professional assistance, consider these alternatives:

• Personal grooming … paint your own nails, give yourself a facial, use coupons for haircuts
• House maintenance … mow your own yard, trim the trees, clean the interior, repair what you can
• Make presents for family and friends instead of buying, especially cards and gift wrap

#3: Let Your Goals Be Known

You’d be surprised how much support you will receive from your circle of friends and family. They may opt for a game night-in instead of an expensive concert or dinner. They will also be more understanding if you can’t chip in for a trip or group present. What’s more, when you make your goals known to your friends and family, you’re more likely to stick to them!

#4: Take on Extra Work

This may sound obvious, but it’s more than just overtime or a sales commission. Try to turn your hobbies and extra time into money. Look on community boards for services wanted such as tutoring, cleaning, dog walking, errand running and even elderly companionship and driving.

#5: Save on Purchases

Take the time to research costs and shop during sales. It may take a couple extra minutes each week while grocery shopping or clothes shopping, but the end results will be worth the effort. Become a bargain hunter and you’ll quickly see the savings stack up.

Make Your Homeownership Dreams Come True

Making the conscious decision to save will be the best start to achieving your down payment goals. Create a monthly alert on your phone or computer that lets you know when you’ve reached the monthly amount. Once you’ve reached the desired down payment amount, talk to a real estate professional to start looking at homes that could be yours.

Meanwhile, give us a call and we can help put you on track with a savings program, and maybe show you ways you can save on taxes.

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1/11/2018

You don’t have to transform your entire kitchen to feel like your kitchen has been upgraded. All you have to do is update some of your kitchen hardware, like the knobs on your cabinets or the handles on your drawers. You’ll get that new kitchen feel for a fraction of the cost. However, choose your new hardware wisely. Here are 3 trends in kitchen hardware to keep an eye on.

1. Artsy knobs

The great thing about the term “artsy” is that it’s totally up to your interpretation and discretion. You can take your pick of colorful knobs, varying sized knobs and knobs of many different styles. Got a theme for your kitchen? Go all out by getting knobs that matches your vision.

Whatever your method of madness, personalize your kitchen in the subtlest and classiest of ways so you can impress guests. You can peruse the knob section at Home Depot or Lowes for ideas, or you can check out what’s new in the DIY section of the internet.

2. Bar handles

You can make your kitchen seem more modern and sleek without replacing a single panel or backsplash tile. Just incorporate long, straight lines in your kitchen with bar handles.
These handles are most commonly seen in restaurant kitchens: They’re long and slim metal bars that run the length of drawers. They’re not only great for design but also for utility. You can be completely engrossed in a recipe, reach over to grab a drawer handle and grasp it every time, without fail.

Now, if you have a theme for your kitchen, these handles are maybe not the best way to go. If you’re going for minimalist and even futuristic vibe, these handles are for you.

3. Finger handles

Although they may look like it, finger handles aren’t actually tiny shelves for mice (knock on wood that there aren’t really mice in your kitchen). These flat, stainless steel handles work great for the lower, base cabinets in your kitchen. Just slip a finger or two under the small lip of the handle to open your cabinets.

They look great and they’re completely functional. No more bending down to open a cabinet just to discover the pot you were looking for wasn’t even in there.

Pro tip: Updating the hardware in your kitchen is a great way to spruce up your kitchen before showing your house to prospective buyers. When you’re ready to sell your home, give us a shout. We’re here to help.

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1/08/2018

You have checked all the windows to make sure they are closed and locked, doubled-checked the doors, let the neighbors know you are going out of town, informed the mail so it does not pile up and activated all the passive security systems in your home. However, one area is often overlooked as you pull out of your garage and leave: The garage you just left.

A modern-day garage is a prime spot for thieves to gain access to your home.

There are three basic types of garages that your home may have and each one requires its own safety measures. The first two are attached garages, and they can be divided into two categories: The front of the house garage that faces the street and the rear garage, which is out of view from the street.

The third type of garage is the detached garage. It is particularly dangerous if this type of garage is not secured properly because it offers a staging ground for thieves to enter the premises.

Here are a few pieces of advice that will help you protect your home:

Use Your Garage. Park your car in the garage when it is not being used or if you are leaving by other means. Many people leave their garage door remote in their car, and all it takes is something like a broken window in your car to give a thief access to your home. To combat this, you can also make sure to remove the remote if you leave your car outside of the garage.

Disable the Electric Motor. If you are leaving for an extended period of time, detach your electric garage door opener. This is usually a very simple thing to do. Most electric garage door openers have a rope or chain you pull down to disconnect the electric motor from the chain that operates the door. This protects you in two ways: First, if a thief used a frequency scanning device to obtain your code, it will be of no use since it is not operable. Second, it would require a thief to physically go to the door, which the neighbors could see.

Bolt It. Use a manual sliding bolt-style lock on the inside of your garage door that can only be opened from the inside.

Keep It In Good Condition. Make sure the garage door is properly functioning and that there is no damage to the panels through which a thief could access your home.

Keep It Contained. Do not leave important items in the garage and make sure to lock the door to your home. If thieves do break into the garage, you want to make sure that is all they can access. Place a deadbolt and anti-kick device on the door that leads to the garage.

The Same Goes for Detached Garages. For the detached garage, make sure you follow the same principles as if it was connected to your home. If the garage is out of view from the street where neighbors could spot a break-in, these rules become even more essential. Most importantly, do not keep valuables in your garage.

If you have questions about how to prepare your home against break-ins, feel free to reach out to me for more information.

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