Home Office Deduction

April isn't the only time to think about taxes and tax deductions. In fact, it is probably a good idea to look at your tax situation and possible deductions at other times of the year. This way you will not be scrambling right before the tax deadlines loom.

For example, if you work from home, either for yourself or for a company, you may be able to take a home office deduction. More and more people are opting to telecommute these days to save on commuting costs. If you have decided to telecommute, make sure you take full advantage of the situation.

According to the IRS, you can only claim this deduction if you use part of your home as your main place of business or if you meet clients, patients, etc. in your home.

You may be able to deduct of the money you spend for real estate taxes, mortgage interest, rent, utilities, insurance, depreciation, painting and repairs.

There are different rules and different forms depending on whether or not you are working for yourself of for someone else.

To learn more go to irs.gov and look at IRS Publication 587. You can also call 1-800-TAX-FORM (1-800-829-3676).

It Doesn't Hurt to Look

Last week the National Association of Realtors released a report that stated that the sales of existing homes have fallen nationwide. However, this storm cloud does have a bit of a silver lining: Washington DC and the areas surrounding it have not been hit quite as hard as other parts of the country.

The National Association of Realtors also conducts an online survey and one of the conclusions that came out of this was that a good number of potential homebuyers—about 25%—are sitting out in the real estate market.

Why sit out when this is a great time to buy? The economy is not great, but if you really want to have a home, you should not let that keep you from getting out there and looking at homes.

The best time to buy is when you are ready. Sure, some times are better than others, but conditions will never be perfect. If you feel that you are ready and financially prepared for the responsibilities of home ownership, explore it. It doesn’t hurt to look and you are not obligated to buy.

If you want to look in Anne Arundel County, Calvert County, Charles County, and Prince George's County, call John Day at 410-507-2909.

Why You Need a Real Estate Agent, pt. 2

On Wednesday we talked about how it is tempting to try to sell your house without a real estate agent, especially in an uneasy economy. Getting the help of a real estate professional will cost you money. However, the costly mistakes you could make trying to sell a property on your own could cost you even more. Here's why:

Experience, Experience, Experience: You are probably very knowledgeable and yet you have not spent years dealing with real estate matters. A real estate agent can look at your house and quickly assess what will make it more marketable.

Legal Hassles: A home sale is not a simple transaction. There are any number of legal issues that may trip you up of you are not aware of them. This is why it helps to work with an expert.

Screening: If you put up flyers or advertise your home on your own, you are the first point of contact. When you work with a real estate agent, you have someone there to weed out potential buyers who aren't serious.

John Day has more than 30 years of experience and a proven track record. Visit his website to learn more about how he can help you sell your home.

Why You Need a Real Estate Agent, pt. 1

In a time when everyone is trying to cut corners, there are some things you should not skimp on and hiring a real estate agent is one of these things.

If you have a DIY (Do-It-Yourself) approach to many other things, you may think that you can go ahead and put your house on the market and take care of the sale on your own. But you really ought to consider hiring a professional.

Selling a home is not a hobby or something to throw a little effort at here or there. It takes work. And while you are out there working, you can have a real estate agent working for you to sell your home. If not, you will have to become a multi-tasking superhero to do your job, take care of your personal obligations AND sell your home.

In this buyer’s market, you need all the expertise you can get. Your negotiating skills make have gotten you a bargain or two, but you will find that negotiating a real estate deal is no easy task. Even though you want to sell, you may still be emotionally attached to your home and this may get in the way as you attempt to broker a deal.

Check back on Friday for more on why you need a real estate agent.

When You're Ready to Leave Your First Home, part 2

You may have no control over which comes first. Yes, the market seems tough, but it is entirely possible that your first home may sell before you purchased your next home. Then what? While the thought of not having a home may make you anxious, this is a better position to be in. True, you have no fixed placed to lay your head, but you also do not have two mortgages.

If this happens you can:
-Go to a residential hotel. While they feel temporary, they are designed for extended stay and are better equipped for everyday life than a regular hotel.

-Ask the owners to let you rent your (former) house. Consult with professionals and create a contract that allows you to rent the house and pay expenses for a set period of time (maybe a month). Note that this idea will be much more acceptable to the new owners if you have a contract in place for your next home.

-Stay with a friend/relative. This may mean placing some of your belongings on storage and having to move them twice, but you don't want to sign a lease on an apartment if you intend to buy another home.

When You're Ready to Leave Your First Home, part 1

At one point some of you were first-time home buyers, moving from a place you did not own into one you purchased. There were a lot of decisions to make, but you made it.

Now you are thinking it is time for another home. With your first home purchase, you simply left. With your next home purchase there is a new set of decisions to make. Unless you are holding onto your former home, you will have to sell or rent it.

You may be wondering how exactly this will work. If you are not prepared to take on two mortgages at once, you will need to have a plan.

If you need the money to make a down payment on your new home, but the old one hasn't sold yet you can:

-Considering taking money from your 401K. Consult with your personal financial adviser before making this move. Only do this if you have not plans to leave your job.

-Use the equity in your home. This is strategy that has to be put into place before your home is on the market. You cannot tell a lender that you intend to sell the home and then ask them to give you a loan on its equity.

We'll be looking into this issue further next week, so check back for more.

The Save the Dream of Homeownership Event

NACA is the Neighborhood Assistance Corporation of America and the group behind the Save the Dream of Homeownership Event. It is a non-profit, HUD certified organization that assists homeowners who are at risk of losing their homes. They work with lenders and loan services to get them to lower interest rates so that at-risk homeowners can stay in their homes. Sometimes they can also negotiate a reduction in mortgage debt as well.

Starting this Saturday, July 19, 2008, you can meet with NACA advisors at a 5 day event that will be held in Washington DC and the Capital Hilton Hotel. There is no charge to meet with someone from NACA and staff will be on hand from 9am to 9pm for each of the 5 days.

NACA started in 1988 and since then has worked to make homeownership possible for many. They are committed to helping cities build strong, stable neighborhoods. NACA is also a strong advocate against predatory lending, a practice that not only harms individuals, but communities as well.

To learn more about NACA and about the Save the Dream of Homeownership Event, visit www.naca.com.

Container Gardens, part 2

Last week, I wrote about container gardening. You can use small spaces in and around your home to provide food for you and your family. Even if your thumb isn't green, you can give it a try because it isn't like you'll have to till a lot of soil.

Last week, I wrote about container gardening. You can use small spaces in and around your home to provide food for you and your family. Even if your thumb isn't green, you can give it a try because it isn't like you'll have to till a lot of soil.

As you can imagine, one very important aspect of container gardening is the container itself. Do you just get a regular flower pot? How do you choose?

The space you choose will dictate the size of the container, as will what you want to grow. No matter what kind of container you pick, it is important that it provide for adequate drainage. Try not to select a container with a narrow opening.

Avoid using flimsy plastic posts, as the sun will take its toll on them. Many plastic pots are inexpensive, but not the best choice if you want your container garden to thrive. If you live in an especially hot area, pick containers that are light in color so your plants won't take in too much heat.

You can use: gallon cans, wooden boxes, planter boxes, bushel baskets or ceramic pots.

Container Gardens, part 1

With the recent economic downturn, people are looking at creative ways to save money and get what they need. Some people who would not have thought about gardening before are starting to grow food in their own gardens in an effort to cut costs.

Those of you who live in small spaces will not be left out of this trend. You can opt for a container garden. What is a container garden? It is simply a garden that is housed in some kind of container, rather than on a plot of land.

It may come as a surprise, but any vegetable that can grow in a backyard can be grown in a container on a porch or window sill. Still, some vegetables are much better suited to containers. Among these are: eggplant, peppers, tomatoes, beans, lettuce, squash, and radishes.

Although the vegetables that grown in container gardens can grow in regular soil, you are advised to use synthetic soil for your container garden. You want something that will drain well and does not have any seeds for weeds.

Check back on Monday for more tips on container gardening.

Home Selling Basics

On Monday, I talked about how a home sale is a business transaction. In light of some recent news stories about people attempting to sell their home and relationships at the same time, it is time to remember some home selling basics. Remember, nothing can beat a well-maintained home that is groomed for sale. Here are some other tips:

Price your home to sell
Making sure that your home is priced competitively is very important. If it is priced very differently from similar homes, buyers will be wary. You want the price to be worthy of the home and its amenities, but also in the range of the other homes in the neighborhood.

Try traditional incentives
Stick with incentives that are a part of the real estate negotiation. These include: paying some of the buyer's closing costs, an allowance for certain repairs, including major appliances in the deal.

Make the most of marketing
Use both traditional and more innovative techniques to market you home. Have an open house and make your home available for viewing. Work with your real estate agent on a personal web page.

Remember that a Home Sale is a Busines Transaction

Last month, a woman in Florida was in the news because she decided to put both her house and her heart up for sale as a package deal.

The woman is willing to sell her almost 2000 square foot home along with her hand in marriage. She was having trouble on the dating scene and anticipated trouble with selling her home in the current housing market.

A man in Australia has also made the news because he decided to sell his entire life, including his house, vehicles and introductions to his friends.

A while back, I wrote about some other unusual home selling incentives and it seems that these incentives are getting quirkier and quirkier.Selling a house is a business transaction. Yes, there is an emotional side to it, but it is best to remain professional.

With the expert advice of a good real estate agent, you should be able to sell your home, without offering friendship or romance along with it. If you are having trouble selling your home, feel free to contact John Day at: john.day@longandfoster.com.

Buying a Model Home, part 2

Earlier this week, I mentioned that it is possible to buy the model home in a housing complex. If you decide to go this route to get a better deal, make sure you look out for your best interests. At best, a model home has been built with the best of everything. At worst, a model is sloppily built since it is intended for show.

If you buy a model home, you should:
Ask for credits. Since it is used, you’ll want to get as many credits as you can. You may need to request new paint, flooring or carpets because people have been trooping through the model for months.

Get an inspection. Make sure the structure is indeed sound. Be certain that the builders did not cut any corners in constructing this home.

Verify the warranty. Find out what kind of coverage you have before you agree to purchase.

Get it in writing. Like any other home purchase, you'll want to get all agreements in writing. And you want to make sure that everything is included down to the finest details.

Safe Grilling

If you are grilling outside of your house this Fourth of July holiday, make sure you are doing so safely. Your yard is an extension of your home and it pays to take precautions before throwing stuff on the grill.

Here are some tips for safe grilling:

-Place your grill on a spot where the ground is even.

-At a minimum, you should set the grill up four feet away from any structures. Of course you'll place the grill away from your house, but you also need to keep it four feet from lawn furniture and swing sets.

-Be careful with oven mitts because you don't want them to catch fire. If you can, get a high-heat silicone mitt and avoid cloth.

-Use utensils designed for grilling.

-Keep a spray bottle filled with water nearby to quickly dampen any flames that shoot up. If a flame shoots up, aim the spray under the food.

-Make sure people playing games that involve running/jumping steer clear of the grill.

-Start the bug patrol early. Spray for insects or put out citronella candles, bug zappers, etc. the day before your outside event.