Taxes and Selling Your Home – Tips for Saving You Money

If you are thinking of selling your home, be sure to realize all possible benefits that might come your way in terms of saving money on taxes. As we all know, nothing is surer than death and taxes. Although there is nothing you can do about the former, there are certainly things you need to know about the latter to maximize your profit from selling your home.

Everyone knows about the $250,000 profit per person (up to $500,0000) you can walk away with from selling your house if it has been the primary residence for 2 of the last 5 years. If you have not lived in your home that long, however, you still may be able to claim part of that money for a variety of reasons. The amount you can get is pro-rated for as long as you lived in the house. For example, if you were single and lived in there one year, you could claim a $125,000 tax exemption if you had one of the qualified situations described below.

1. If you have to move because you start a new job or are transferred farther away than 50 miles from your old location.

2. If you have to sell your home because of health or medical reasons. In this case, however, make sure you have those conditions documented with a letter from your doctor and be sure to keep those records if the IRS ever wants to check.

3. If you have been impacted by unforeseen circumstances. Like the medical exemption, you had better be able to document the reasons. The IRS defines unforeseen circumstances as “the occurrence of an event that you could not reasonably anticipated before buying and occupying your main home”. Situations they feel fall into this category are: war, death, divorce, terrorism, natural disasters, separation, change in employment (including unemployment), and multiple births from the same pregnancy.

Waterwise Gardening – Save Money and Add Value to Your Home – Part I

Waterwise gardening is one of the fastest ways for you to save money on home owning expenses. Unless you have a pool, the two biggest users of water in your home are toilets and landscape watering. In fact, in the summer months half or more of all the water you use goes onto your lawn and/or garden. Below are four ways you can dramatically cut your water usage by using waterwise gardening practices.

1. Mulch your garden – Mulch reduces the evaporation of water and helps to keep it locked in the soil longer, reducing the need for watering. It also keeps weeds down and helps to prevent runoff, thus keeping water where you want it.

2. Add organic matter to the soil - Organic matter is a sponge for water. Increasing the amount of organic matter in your soil is a good way to trap water and keep it there. Mixing leaf mulch or lawn clippings into the soil is a cheap and good way to incorporate additional organic matter. You don’t have to buy that expensive stuff.

3. Reduce the amount of lawn – The thirstiest part of any landscaping is the lawn. In most yards over 75% of the lawn is never walked on except to mow it. Really look where you want play areas or grassy spots to be and then convert the rest of the yard into landscaped beds with waterwise plants.

Townhouses – Considerations and Options

If you are thinking of living in an urban setting or just want to get into the housing market at a price you can afford but don’t want to live in a condo, townhouses can be an excellent option. They are generally, but not always depending on location, less expensive than a single family home. And, they are more like living in a house than an apartment.

Classically a townhouse is a home that is attached to one or more other houses, but that sits on a piece of property you actually own. This is in contrast to a condominium where you don’t personally own the land. Townhouses can range from duplexes and triplexes to developments that contain hundreds of similar homes. In the case of these larger communities, commonly you share in the ownership of common areas like parks and playgrounds, swimming pools, or athletic centers.

If you buy a townhouse and there is a homeowners association, it is crucial to get as much information on it as you can because these associations can have a tremendous impact (good and bad) on your experience as a townhouse owner.

So, besides price or location why would someone consider buying a townhouse as opposed to a detached home? Well, you would have less exterior maintenance since you have fewer exterior walls. Because the density of housing is higher, there is some modicum of added security. For some larger townhouse communities, you might also have direct and close access to tennis courts, pools, playgrounds, and the like.

Things that can be negatives are home owner’s association fees, if you buy into a large development as opposed to a duplex or triplex. You also do give up some privacy just because you share walls with people and the houses are so close together. You will also probably be limited to what you can do with regard to the exterior of your house.

Upgrades: Looking Cool or Being Practical: Owner Wants Vs. Resale Value

There are many takes on what upgrades you can make in your home that not only improve your life, but also that will pay for themselves (or more) when you go to sell your house. As with anything else, upgrades that pay off will be those that future buyers are going to be willing to pay for. So if you want that $6,000 granite counter top or that $500 brass bathroom faucet set because you think it looks cool, better make sure that future buyers are going to place the same value on it that you do.

For the most part, really high end accessories, unless you have a total luxury house, condo, or townhouse are not going to return on your investment. Believe it or not, most people are just not willing to pay extra for a whirlpool tub, outdoor spa, special tile, or fancy lighting fixtures when they are considering buying a house. Most sellers realize less than 50% of their investment in special bells and whistles they put into their houses.

As a general rule, buyers are looking for more space and functional over cosmetic issues when they make their assessment of what they are willing to pay for. Many times the unusual or exotic reflects the tastes of the previous owner, not the buyer and so buyers are generally not willing to pay additional for that, and in fact may consider some bells and whistles detractions rather than assets. The expert rule of thumb is that the further away an item is from its function, the less it is worth, even if it looks really cool.

What is a “Green Roof”?

For those in the know, a “green roof” is not a roof covered in green shingles or aged copper. A green roof is something that is gaining popularity for those who want to “go green” in terms of creating more eco-friendly houses and cities.

So what is a “green roof”? A green roof is a roof that is partly or completely covered with vegetation and soil. This sits on a waterproofed membrane to keep water from entering the building. Some green roofs also might include irrigation systems. Basically, it is a vegetated, living roof.

Green roofs are not a new invention. In fact, prairie families that lived in sod houses back in the 1800’s commonly had houses excavated into hillsides where the roof of the house was basically part of the hillside. Modern green roofs are sophisticated assemblies of tough and reliable materials that can withstand water, weight, and the acids generated by vegetation. There are also special types of plants that are used, which are hardy, have fibrous roots to hold soil in place, and are able to tolerate conditions found on roof tops with only a few inches of soil.

Although there are many advantages of a green roof, a couple that impact a cityscape are that:

1. They reduce the “heat island effect” or heat that is reflected from vast expanses of roof and concrete in urban environments.
2. Reduce water run off because rainwater remains in the soil on the roof and nurtures the plants growing there.
3. They can increase your roof’s insulation value.

If you think this is some kind of “hippie” notion, think again. Many big cities, like Chicago, are encouraging residential green roof construction, even putting it on civic rooftops. If you are an eco-conscious homeowner or home buyer, a green roof is definitely something to consider and there are many sources on the Internet you can go to find out more about them and how they work.

Waterwise Gardening – Save Money and Add Value to Your Home – Part II

Here are four tips you can add to those in our previous blog to cut your water usage by using waterwise gardening practices.

1. Deliver water directly to the roots – Sprinklers only have a 40-50% efficiency in delivering water to where it needs to go (i.e., to the roots of your plants). Drip irrigation is 90% effective. Because it only targets where your plants are it also reduces weed growth because it leaves soil with no plants in it dry.

2. Install a rain barrel and use it to water your plants – Why let all that free water that falls from the sky run off of your roof and go down the storm sewer? Did you know a 1,000 sq. foot roof will yield 625 gallons of water from a one inch rainfall? Catch this in a rain barrel and then use that water to water your plants when things get dry.

3. Plan your landscaping – Take advantage of your site, its sun, shade, wind, and soil. Plant native plants that are well adapted to the climate, soil, and water conditions in your yard. Perennials will come back every year and will require a lot less work and water than annuals. Resist the temptation to go for exotics that will require a lot of maintenance.

4. Take good care of your plants – Healthy plants use less water, fertilizer, and pest control than stressed ones. Keep your flower beds weeded, thinned, and pruned. Always be on the lookout for pests. This will allow you to save on watering.

How to Determine What Your House is Worth

There are several ways that you can determine what your house is worth. The best and most accurate is to ask your real estate agent first. But if you want an idea to see if it is practical to sell your home or possibly rent out your home at this time, here are some tips to get you started.

It is wise to watch pricing trends with houses that are the same or similar to what your home is like. Compare apples to apples. Only compare those houses that are within one fourth to one half of a mile away. Remember to watch for specific similarities in your tracking. For instance; the amount of rooms and bathrooms, garage attachments etc should be considered. Homes that do not have the same amenities will not price out similar. Comparisons should be similar square footage and the homes should be located within the same neighborhood, if at all possible, unless the home is located in a rural area.

Many people look for square footage comparisons. You could calculate the cost per square footage in your comparisons. Calculations should not exceed a 10% difference, up or down, between homes.

Sellers should calculate into their price the condition that the house is in. Here are some questions to ask….Is the house in need of repairs? How much money has the seller spent on upgrading the property? Do other homes in the neighborhood require improvements? Not all improvements make your home worth more money when it comes to selling.

Use previous comparable home sales in the area. Often times, sellers will obtain a certified appraisal of the property. Appraisals contain information regarding sales of similar properties in the area. Appraisals also list current market trends on rental properties. A seller can also track this information in their local newspaper or by utilizing county records. The quality of the homes compared is more important than the quantity of homes compared.

Buyers should ask their agent what their house is worth. Agents are easily able to see what area market trends are doing. Agents will be able to access information about current homes on the market to further help you in pricing your home. There is simply no replacement for professional advice when it comes to selling your home. Price your home too high and it will sit for an eternity on the market, price it right and it will sell!

Marlboro Downs The Top Upper Marlboro Destination

New to the area? Have you looked at Upper Marlboro yet? Marlboro Downs located in lovely Upper Marlboro is close to Annapolis and Washington DC, but without the high cost of real estate. If you have not visited the Upper Marlboro city area, you will fall in love with the charming town hall and shops around the square. The lake near the center of town is a wonderful place to stroll in the evening and enjoy the evening.

Marlboro Downs is a lovely fairly new community. You'll love the brick front homes, spacious yards, mature plants, sidewalks, community amenities, public sewer and water. You may ask yourself since when is public sewer and water an amenity, but if you are from outside the Washington DC area moving here, you will find that many communities and homes do not have public sewer and water. Many homes have septic systems, wells on the property, and many without even sidewalks. Shocking you say? But this is just how our area is. Our region has been built up before the community services were extended to feed some of the newer areas of growth. So, Marlboro Down has those nice amenities that you may have taken for granted in Corpus Christi, Texas, Orlando, Florida; or Columbus, Ohio.

John Day has sold many homes in the Upper Marlboro area and specifically in the Marlboro Downs community. Give him a call to see what he has listed there right now. If he has a property, act fast as homes in that community simply don't stay on the market long. Marlboro Downs is a favorite destination for many incoming military personnel.

Do You Need An Aggressive Realtor To Sell Your Home

John Day is the top aggressive real estate agent in the Calvert County, Charles County, St. Mary's County, Prince George's County, and Anne Arundel County. When your home has been sitting on the market way too long, you need help and aggressive help at that.

Aggressive Marketing
Get the push you need to market your home, with full exposure on our top performing website, maximum MLS exposure, additional web exposure on Active Agent and Realtor.com region wide. Our home brochures are not just flyers, they're works of art. Get your home information to stand out from the pack with professionally created sign box flyers and in home sales sheets.

Aggressive Pricing
Seasoned by the economic problems of past years, John Day understands what it takes to sell in a tough market. This is not the first tough market he's seen. When it comes to selling aggressively you need aggressive pricing. We're not talking about a fire sale here, but with comparative sales analysis, a strong understanding of the marketplace and buyers in our area, strong analytical skills in regards to the interpretation of sales data and area appraisals allows John to guide you in setting the price that will move your home now!

Aggressive Negotiation
Need a performer in your court at the deal negotiation. John will help you to not give away too much. If you dropped your price, you shouldn't have to give when pushed on certain things. John will work hard to protect your point of view and set the best deal up possible for you that will still sell your home.

Hmmm, so you're thinking aggressive is good, but is he hard and maybe not easy to get along with. John is an incredibly likable and honest person. He is approachable, he is personable, he is smart, and he is focused. Focused on selling your home, and isn't that what you really want? So why pussy foot around with your existing realtor who is doing nothing, moaning over how the market is so bad, hemming and hawing about what they are doing to move your home. You need the Aggressive Realtor John Day now!

Do You Want a Realtor, Real Estate Agent or Salesperson - What's In A Name?

So many consumers think that a Realtor is what a real estate agent is. Not true.

First in various states real estate agents are called different things. Here's an example, in Virginia real estate agents are know legally as real estate salespersons. In Maryland, we are known legally by state law as real estate agents. I don't know about you, but I personally think that real estate agent sounds better than real estate sales person.

Not every real estate agent or real estate salesperson is a Realtor! Realtor is a registered trademarked for a realty service professional who belongs to the Association of Realtors and owned by them.

To become a Realtor, a real estate agent must have certain professional certifications and pay a membership fee to join the Association of Realtors. It's like Kleenex, actually Kleenex is a facial tissue product made by Kimberly Clark, but the trademarked product name has become synonymous over time with all facial tissues regardless of brands. It's the same kind of situation with Realtor. Consumers think that Realtor is synonymous with real estate agent, but that is not the case. The criteria to be a Realtor and fees to become one weed out the inexperienced or unskilled.

So does that mean that every Realtor is a top professional, no, it still boils down to the individual and their personal drive, but it is another descriptor of professionalism that you should be looking for in your next real estate agent.

Building a Home? Let a Real Estate Agent Help You Get The Best Deal

You're new in the area. You have no idea what the good schools are, in fact you may not even know the names of the local counties.

This is where hiring a buyer's agent to help you find your new home builder and new home community can be of tremendous value. At the first conference with your real estate agent, you will let them know your "dream scenario"; we want a community pool, we want a school that our kids can walk on sidewalks to, we want a gated community. Real estate agents not only help with resales, but maybe you didn't know that they will help you to find the best new home builder and new home community for you.

Top real estate agents, like myself, know the area, we know and have sold homes in some of the brand new communities that are not built out yet, we know the amenities, and we have seen first hand the quality of many of the area's local builders. Why waste time trying to visit every new home community when a real estate agent can help you narrow down the list to several top locations that you should consider.

When you visit a model home with your real estate agent, builders take notice, it is clear that you mean business and have a professional on your side available to help you make the right choices. Having a real estate agent on your advocate actually makes it easier for the builder in many ways, quicker selection and selection of quality upgrades that will add to the long term value of your home. From the consumer's point of view being able to ask a professional advice about the builder's prices, cost of add-ons, and special contractual clauses is very helpful.

If you are working with a buyer's agent and buying a new home, it is very important that when you go to a model home on your own that you let the builder know up-front that you are working with a real estate agent and supply the agent's name or business card. The model home staff will record this information on a card and keep it on file so that if they need to, they have a way to contact your agent as well as to know who they would like to thank for a referral for view their models. It is part of professional courtesy and it is important to know that this must be done at first contact.

Many agents will offer to take you to the selected models and specific builders that you have pre-discussed. Take them up on the offer! Seeing your potential new home through the eyes of a seasoned profession will help you to understand the value or lack there of that your builder is incorporating into their product.

Real estate agents don't just help with resales, they are an invaluable information and comparison resource while you evaluate new home builders as well.

Is There a Death Disclosure in Your Buying Contract

Now I'm not talking about you dying while you are in the process of buying a home. I am talking about buying a home where someone else has died in the home.

Typically, but not always the selling agent will note in the MLS for agent and broker review only if a death has occurred in the home for sale, but this is not always the case.

As a buyer, you may want to actually ask if there has been a death in the home. Once asked, the seller must supply a true statement. Lying will have serious legal ramifications so if the answer is no, you can trust it. If the answer is yes, some buyers will have different comfort levels with that information than others.

For some buyers a death disclosure will be a deal breaker for them. For others, it may require additional questions. It may be okay to a buyer if this was a natural home death where a person wanted to die in familiar surroundings and be surrounded by family and friends in a peaceful natural way. In other cases there may have been a violent death or murder. It is a sad state of affairs that we need to be educated to now ask these questions in order to know the history of a home.

"Not all states require identical seller disclosures. For example, in Colorado, neither the agent nor his sellers are required to disclose if a person died in the house. But in California, if a death occurred within the past 3 years, it's considered a material fact and must be disclosed."

A death in the home may affect the price and value of a property especially in the case of a murder or high profile homicide. But should a home death stop you from buying a home? This is a personal decision that only you can make. Making sure to ask these questions is a very important aspect of the home buying process.

Greatest Housing Market In Years

What a great time to sell real estate! Really! There are more opportunities today then in the past.
Look at it this way. It used to be that buyers would buy the first home they saw because they would lose it if they did not act. You, as a seller were confronted with so many offers you were tired of trying to decide which to take. You also had to decide which lender in your pile of offers could actually perform for your prospective buyer. Home inspectors were flooded with work, real estate agents who represented the sellers because obnoxious, and times were fast, very fast.

Now its easy to sell your home. Price it to sell! That's it. Isn't it true that everything can be had for a price. Your house is included in this as well. You can sell your home fast in today's real estate market.

Take the advice of a realtor your trust or simply, use common sense. What is common sense? Well, jump in your car and drive up to your front door and then into the garage. Before you pull in the driveway take a good look at your yard. What's it REALLY look like? Be honest, use common sense, does it look crappy? How about the flower beds, have you done anything this summer to make it look fresh, knowing you were going to sell. Have you cleaned your carpets? Have you painted your walls a neutral color? Are your gutters full of crap, does your siding need to be painted? Look at your place with a fresh set of eyes, yours.

Anyone can sell a house in this market, just get real. Understand that times have changed. If you are one of the lucky ones and profited several hundred thousands of dollars in equity, take the money and run. Go where your going and buy what your buying.

If you plan on waiting until the crazy appreciation markets of yesteryear, get out the grecian formula and sit back on the front porch and rock.

Call me if you would like to sell your Maryland Home FAST! Ask me for my professional opinion, and then take my advice and sell.

Enjoy this great sellers market because, things can change.