Home Improvements...Will it increase my Home Value?

Before you make improvements to your home it is wise to speak with a Real Estate Professional. There are many factors to consider and to weigh out when you are thinking of doing home improvement projects and additions. Will these improvement increase the value of your home depends on several factors...such as the neighborhood price range, the current value of the home, what the improvement will add, ie.... another bathroom, bedroom, update kitchen, baths etc. In addition, the length of time you plan to stay in the house will also effect the value of the improvement. If you are thinking of selling your house in the next year or two, it may be smarter to focus of certain improvements vs. if you are planning on staying in your home for 5+ years. Each case is different.
So, make sure you consult a Realtor before investing in Home Improvements.

Safety First

With the cold weather and holiday season upon us...... Please check to make sure that your Smoke detectors and CO (carbon monoxide) detectors are working properly and in the correct locations.

In Massachusetts it is a State Law that a smoke alarm and CO detectors in a home be inspected and certified prior to sale. The fire department representative needs to certify that the smoke alarms and CO detectors are operating properly and in the correct locations. They recommend smoke alarms to be located on the ceiling on each floor including the basement. CO detectors on each living level. (for specific requirements, please contact your local fire department)

In addition, if you burn with wood and have a wood stove, it is important to have the wood stove inspected and certified (usually it is the town/city building inspector who certifies). Give this certification to your Home Owners Insurance carrier. Most insurance companies will not cover claims in the unfortunate event of a fire caused by a wood stove if the wood stove wasn't inspected.

FIRST TIME HOME BUYER TAX CREDIT
$7,500
This is a Federal tax credit program know as...
Housing and Economic Recovery Act of 2008
Bill H.R. 3221

Who is eligible:
1st time home buyers who purchase a home between 1/9/08 through 7/1/09
Full credit will go to single person with income under $75K and 150K on a joint return (it will phase out above those caps ($95K and $170K respectively)

Eligible property:
Single family residences including condos that will be used as a principal residence.

Refundable:
This will reduce the income tax liability for the year of the purchase. Claimed on the tax return for that tax year.

Here's the catch....
There is a Recapture involved:
Portion (6.67% of the credit to be repaid each year for 15 years. If home is sold before 15 years, then remainder of credit recaptured on sale.

For more information please call or email me and/or consult your CPA or tax preparer.

Back to School back to House Hunting

There does seem to be a connection between...Back to School and back to serious House Hunting. While August traditionally seems to be a slower time in the market place because may people are taking the last minute vacations and getting the kids ready for school. It seems like right after labor day, the market place gets more active. So if you've held off putting your house on the market.... September is a very good time to get out there and be seen. Buyers are typically more active.

First-time Homebuyer Tax Credit

The following are some helpful information surrounding - The Housing and Economic Recovery Act of
2008
Amount of Credit
Ten percent of cost of home, not to exceed
$7500
Eligible Property
Any single-family residence (including
condos, co-ops) that will be used as a
principal residence.
Refundable
Yes. Reduces income tax liability for the
year of purchase. Claimed on tax return for
that tax year.
Income Limit
Yes. Full amount of credit available for
individuals with adjusted gross income of no
more than $75,000 ($150,000 on a joint
return). Phases out above those caps
($95,000 and $170,000, respectively).
First-time Homebuyer Only
Yes. Purchaser (and purchaser’s spouse)
may not have owned a principal residence
in 3 years previous to purchase.
Recapture
Yes. Portion (6.67 % of credit) to be repaid
each year for 15 years. If home sold before
15 years, then remainder of credit
recaptured on sale.
Effective Date
Purchases on or after April 9, 2008
HOUSING AND ECONOMIC RECOVERY ACT OF 2008
First-time Homebuyer Tax Credit
Termination July 1, 2009
Interaction with Alternative
Minimum Tax
Can be used against AMT, so credit will not
throw individual into AMT.

What are you looking for?

In an effort to bring interesting and up-to-date information to you, I would like to get your feedback as to what you'd like to learn more about. All suggestions will be answered.

Staging works

Staging has become a way of life for many of us in the industry and for home owners that want to put their best foot forward to market and SELL their home. When you put your house on the market it is important to remember that you want the prospective buyers to feel comfortable in the home. Make it inviting, de-personalize it and de-clutter it so that they will pay attention to the house and it's features, not the personal items like photos and nick-knacks that can distract them. You want them to remember your house as the one with the nice layout and clean and sparkling kitchen not the one with the red walls with the collage on the wall.

Staged homes not only sell faster as a rule, if priced correctly, they sell closer to list price!

Home improvements in the Air!

With Spring here, many homeowners are thinking about home improvement projects. If you're wondering where you can come up with the funds to do these projects, you may want to consider a Home Equity line of credit. If you believe you have equity in your home, it would be worth while to talk with a lender to see if it is feasible to pull out some equity for your home improvements. Just make sure you understand the term of the loan. Not all lines of credit are created equal. Some have fees, some are fixed rates, some are variable and others have balloon payments.
Home Equity lines can come in handy and be very useful. But, make sure you understand the type of loan you're getting. In this case it's.... Details... Details.... Details

Welcome SPRING!

We can all agree that it's been a loooong.... snowy winter. It's nice to see that Spring is starting to show signs of it's arrival. With it, it usually means that the Real Estate market will also awaken to welcome in the Spring market. Typically, we will see buyers being more active and interested in making a move and Sellers who waited until the snow and cold weather goes to put their house on the market. Once the grass is green, flowers and plants start popping and the leaves are back on the trees, the market should be in full bloom. With the interest rates as low as they are and the inventory of homes for sale more plentiful, it's a great time to buy.

TAX TIME !!!!

Don't forget that the interest you pay on your mortgage is TAX DEDUCTABLE! Your real estate taxes are also deductable.
If you bought a home or refinanced your home in 2006, you can write off some of your closing costs. Ask your Tax preparer what you are able to deduct.
Owning real estate is always a good investment. TheMortgage interest deductions is just one of the many benefits of owning real estate.

Virtual Tours

In todays Real Estate home search it is so important to make sure that potential buyers have as much information possible. It is a proven fact that most potential buyers search the internet in their quest to buy a home. Having lots of photos and a Virtual Tour is critical to this process. Potential Buyers have expressed that if they don't see interior shots and/or virtual tours with a particular house they think there is "something wrong with the house".

As for Sellers, I must be sure to have their home positioned well in the market. A good Virtual Tour can insure their success.

I am a huge fan of "good" virtual tours and believe they can make a positive impact in todays Real Estate Market.
View my tours....

http://www.visualtour.com/inventory.asp?u=10822

FHA Mortgage raises limits

Great News - FHA Maximum Mortgage Limits have temporarily increased for all counties and metropolitan statistical areas (MSA) across the nation including Western Mass. Although the increases are temporary, they should help alleviate some of the liquidity crunch which has plagued the secondary market since mid 2007. The new higher loan limits are effective immediately. The following are the new limits for Franklin, Hampshire and Hampden counties in western Massachusetts.

· 1-unit: $318,750
· 2-unit: $408,050
· 3-unit: $493,250
· 4-unit: $613,000

2007 Single Family Sales Report by County

The Pioneer Valley finished off 2007 with another

STRONG year in Real Estate.

Check out the Stats

Franklin County

Closed Sales(units)

'06 - 580/ '07 - 520
Closed Sales ($vol)

'06 - 131,487,160/ '07 - 117,647,400

Average Sales Price

'06 - $226,702/ '07 - $226,245
Median Sale Price

'06 - $205,000/ '07 - $200,000

Hampshire County

Closed Sales(units)
'06 - 1,180/ '07 - 1,084

Closed Sales ($vol)
'06 - 374,455,720 / '07 - 322,341,492

Average Sales Price
'06 - $294,454 / '07 - $297,363

Median Sale Price
'06 - $189,900 / '07 - $192,000

Hampden County

Closed Sales(units)
'06 - 3,720 / '07 - 3,287
Closed Sales ($vol)
'06 - 816,380,040 / '07 - 714,892,917
Average Sales Price
'06 - $219,457 / '07 - $217,491
Median Sale Price
'06 - $189,900 / '07 - $192,000

The Stats listed above came from information I received from the Realtor Association of the Pioneer Valley which was compiled from Multiple Listing Service Property Information Network. (MLSPIN) our Multiple Listing Service.

2007 Market Stats

2007 Proved to be a Steady Year in Real Estate in the Pioneer Valley

The Median Price was up 1.5% to $210,000 from $206,950 in 2006
and a 10% drop in Sales Volume from 4891 properties sold in 2007 and 5,480 in 2006.

Still a very Healthy Real Estate Market.

Say tuned for more details tomorrow with the breakdown of each county.