Bye, Bye Clutter
The most important thing you can do to prepare your home for sale is to get rid of clutter. Make a house rule that for every new item that comes in, an old one has to leave. One of the major contributors to a cluttered look is having too much furniture. When professional stagers descend on a home being prepped for market, they often whisk away as much as half the owner's furnishings, and the house looks much bigger for it. You don't have to whittle that drastically, but take a hard look at what you have and ask yourself what you can live without.
Furniture Groupings
There's a common belief that rooms will feel larger and be easier to use if all the furniture is pushed against the walls, but that isn't the case. Instead, furnish your space by floating furniture away from walls. Reposition sofas and chairs into cozy conversational groups, and place pieces so that the traffic flow in a room is obvious. Not only will this make the space more user-friendly, but it will open up the room and make it seem larger.
Musical Furniture
Give yourself permission to move furniture, artwork and accessories among rooms on a whim. Just because you bought that armchair for the living room doesn't mean it won't look great anchoring a sitting area in your bedroom. And try perching a little-used dining-room table in front of a pretty window, top it with buffet lamps and other accessories, and press it into service as a beautiful writing desk or library table.
Room Transformations
If you have a room that serves only to gather junk, repurpose it into something that will add to the value of your home. The simple addition of a comfortable armchair, a small table and a lamp in a stairwell nook will transform it into a cozy reading spot. Or drape fabric on the walls of your basement, lay inexpensive rubber padding or a carpet remnant on the floor and toss in a few cushy pillows. Voila - a new meditation room or yoga studio.
Home Lighting
One of the things that make staged homes look so warm and welcoming is great lighting. As it turns out, many of our homes are improperly lighted. To remedy the problem, increase the wattage in your lamps and fixtures. Aim for a total of 100 watts for each 50 square feet. Don't depend on just one or two fixtures per room, either. Make sure you have three types of lighting: ambient (general or overhead), task (pendant, under-cabinet or reading) and accent (table and wall).
Make It Bigger
To make a room appear to be bigger than it is, paint it the same color as the adjacent room. If you have a small kitchen and dining room, a seamless look will make both rooms feel like one big space. And make a sun porch look bigger and more inviting by painting it green to reflect the color of nature. Another design trick: If you want to create the illusion of more space, paint the walls the same color as your drapery. It will give you a seamless and sophisticated look.
Neutral and Appealing
Painting a living room a fresh neutral color helps tone down any dated finishes in the space. Even if you were weaned on off-white walls, take a chance and test a quart of paint in a warm, neutral hue. These days, the definition of neutral extends way beyond beige, from warm tans and honeys to soft blue-greens. As for bold wall colors, they have a way of reducing offers, so go with neutrals in large spaces.
Color Experiment
Don't be afraid to use dark paint in a powder room, dining room or bedroom. A deep tone on the walls can make the space more intimate, dramatic and cozy. And you don't have to go whole hog - you can paint just an accent wall to draw attention to a dramatic fireplace or a lovely set of windows. If you have built-in bookcases or niches, experiment with painting the insides a color that will make them pop — say, a soft sage green to set off the white pottery displayed within.
Vary Wall Hangings
If your home is like most, the art is hung in a high line encircling each room. Big mistake. Placing your pictures, paintings and prints in such stereotypical spots can render them almost invisible. Art displayed creatively makes it stand out and shows off your space. So break up that line and vary the patterning and grouping.
Three's Company
Mixing the right accessories can make a room more inviting. When it comes to eye-pleasing accessorizing, odd numbers are preferable, especially three. Rather than lining up a trio of accessories in a row, imagine a triangle and place one object at each point. Scale is important, too, so in your group of three, be sure to vary height and width, with the largest item at the back and the smallest in front. For maximum effect, group accessories by color, shape, texture or some other unifying element, stagers suggest.
Raid Your Yard
Staged homes are almost always graced with fresh flowers and pricey orchid arrangements, but you can get a similar effect simply by raiding your yard. Budding magnolia clippings or unfurling fern fronds herald the arrival of spring, summer blooms add splashes of cheerful color, blazing fall foliage warms up your decor on chilly autumn days and holly branches heavy with berries look smashing in winter.
Serene and Inviting
Create a relaxing bedroom setting with luxurious linens and soft colors that will make a potential home buyer want to hang out. Bedroom staging trick: If you don't have the money to buy a new bed, just get the frame, buy an inexpensive air mattress and dress it up with neutral-patterned bedding. And remember to declutter. By cleaning out your closets, you're showing off your storage space, which sells houses - it always ranks high on buyers' priority list.
New Faces
If you can't afford new cabinets, just get new doors and drawer fronts. Then paint everything to match and add new hardware. And instead of replacing the entire dishwasher, you may be able to get a new front panel. Check with the manufacturer to see if replacements are available for your model. If not, laminate paper, which goes on like contact paper, can be used to re-cover the existing panel.
Repaired Wood
Unfinished projects can scare off potential buyers, so finish them. Missing floorboards and large cracks in the sidewalk on the way to your door tend to be a red flag, for example, and they cost you less to fix than buyers might deduct from the asking price.
Prim and Polished
Having tile professionally painted can make a bathroom look brand new. And accessorizing can make buyers feel like they're in a spa. Put out items like rolled-up towels, decorative baskets and candles. It's a great way to create a polished look, and it doesn't cost much to do.
We at Weichert, Realtors – Craven and Company welcome your questions and calls about selling your home! To contact us, click on the link on our homepage, or call us at 704.788.1122
Article by Leah Hennen, HGTV.com
Friday, December 30, 2011
Thursday, December 29, 2011
Your First Step in Your Home Search - Mortgage Prequalification
It is a good idea before beginning the home-buying process to obtain prequalification for a mortgage. You will learn the price range in which you should search for houses. In addition, it lets sellers and real estate agents know you are a serious buyer and not just window shopping. Prequalifying for a mortgage involves giving the lender general information about your financial picture including credit history, debt, income and employment status.
Credit History
A lender measures your willingness to repay your outstanding debt by looking at your credit history. Your credit history shows a record of loans you've paid in the past and how well you are paying off your current debt. This information gives lenders an idea of how reliable you will be about paying a mortgage in the future. If your credit history shows you have consistently made timely payments to your creditors, you have a better chance of qualifying for a loan.
Income
Another important step in prequalifying for a loan is your ability to repay the loan. The lender looks at your income to make this determination. Usually the lender will require at least a month’s worth of pay stubs to determine your ability to pay. If you are self-employed, the lender usually requires tax returns from the previous two years. You are more apt to qualify for a loan if you can show your income has been stable for a couple of years. If you are applying for a joint mortgage, both parties have to submit documentation to verify income.
Employment Status
Employment stability is an important factor when seeking prequalification for a mortgage. Lenders like to see a minimum of two years of stable employment. It is preferable to have steady employment with the same employer for at least two years. However, if you've switched employers in less than two years, lenders still look favorably on you as long as the new position is in the same career field. Self-employed workers must provide documentation for two years of consistent and steady employment to be prequalified.
Current Debt
The amount of debt you currently have outstanding is an important factor in the prequalification process. Obviously, if you already have too much outstanding debt, you will be hard-pressed to get qualified. Lenders typically don’t like to see more than 36 percent of your pre-tax income going to pay off debt, according to Lendingtree. This amount includes the 28-percent limit of your pre-tax income for the mortgage payment, taxes and insurance. When using a program such as FHA, these percentages aren’t as strict as with conventional financing.
Down Payment
When considering a mortgage, you need to evaluate how much money you can contribute towards your down payment. The amount of down payment contributed directly affects the amount of house for which you can qualify. With conventional financing, a 20-percent down payment positively affects the rate and terms of the mortgage. Standard conventional mortgage guidelines dictate that a down payment of 20 percent or more excludes you from having to pay private mortgage insurance. With home loan programs such as FHA or VA, the down payment requirement is more affordable at less than 5 percent in most cases. Still, it is necessary to determine how you will obtain the down payment, in order to be prequalified. Your lender is a good resource for assistance with avenues available to you for help with the down payment.
We at Weichert, Realtors - Craven & Company look forward to working with you to find your dream home! Contact us by clicking on the Information link here, or call us at 704.788.1122.
Credit History
A lender measures your willingness to repay your outstanding debt by looking at your credit history. Your credit history shows a record of loans you've paid in the past and how well you are paying off your current debt. This information gives lenders an idea of how reliable you will be about paying a mortgage in the future. If your credit history shows you have consistently made timely payments to your creditors, you have a better chance of qualifying for a loan.
Income
Another important step in prequalifying for a loan is your ability to repay the loan. The lender looks at your income to make this determination. Usually the lender will require at least a month’s worth of pay stubs to determine your ability to pay. If you are self-employed, the lender usually requires tax returns from the previous two years. You are more apt to qualify for a loan if you can show your income has been stable for a couple of years. If you are applying for a joint mortgage, both parties have to submit documentation to verify income.
Employment Status
Employment stability is an important factor when seeking prequalification for a mortgage. Lenders like to see a minimum of two years of stable employment. It is preferable to have steady employment with the same employer for at least two years. However, if you've switched employers in less than two years, lenders still look favorably on you as long as the new position is in the same career field. Self-employed workers must provide documentation for two years of consistent and steady employment to be prequalified.
Current Debt
The amount of debt you currently have outstanding is an important factor in the prequalification process. Obviously, if you already have too much outstanding debt, you will be hard-pressed to get qualified. Lenders typically don’t like to see more than 36 percent of your pre-tax income going to pay off debt, according to Lendingtree. This amount includes the 28-percent limit of your pre-tax income for the mortgage payment, taxes and insurance. When using a program such as FHA, these percentages aren’t as strict as with conventional financing.
Down Payment
When considering a mortgage, you need to evaluate how much money you can contribute towards your down payment. The amount of down payment contributed directly affects the amount of house for which you can qualify. With conventional financing, a 20-percent down payment positively affects the rate and terms of the mortgage. Standard conventional mortgage guidelines dictate that a down payment of 20 percent or more excludes you from having to pay private mortgage insurance. With home loan programs such as FHA or VA, the down payment requirement is more affordable at less than 5 percent in most cases. Still, it is necessary to determine how you will obtain the down payment, in order to be prequalified. Your lender is a good resource for assistance with avenues available to you for help with the down payment.
We at Weichert, Realtors - Craven & Company look forward to working with you to find your dream home! Contact us by clicking on the Information link here, or call us at 704.788.1122.
Wednesday, December 28, 2011
IRS Energy Tax Credits: What You Need to Know to Collect
2011’s federal energy tax credits of up to $500 for various home improvements are a far cry from what they were last year. But if the limits and other fine print—which we’ll get to—doesn’t dissuade you and you really need to upgrade one or more of the following systems, take advantage of the energy tax credits.
Biomass stoves
Heating, ventilation, air conditioning
Insulation
Roofs (metal and asphalt)
Water heaters (non-solar)
Windows, doors, and skylights
Storm windows and doors
The energy tax credits are small, but at least a credit is better than a deduction:
Deductions just reduce your taxable income.
With a credit, you get a dollar-for-dollar reduction in your tax liability: If you get the $500 credit, you pay $500 less in taxes.
Other limits on IRS energy tax credits besides $500 max
Credit only extends to 10% of the cost (not the 30% of yesteryear), so you have to spend $5,000 to get $500.$500 is a lifetime limit. If you pocketed $500 or more in 2009 and 2010 combined, you’re not entitled to any more money for energy-efficient improvements in the above seven categories. But if you took $300 in the last two years, for example, you can get up to $200 in 2011.
With some systems, your cap is even lower than $500.$500 is the max for all qualified improvements combined.Certain systems capped below $500
No matter how much you spend on some approved items, you’ll never get the $500 credit—though you could combine some of these:
System Cap
New windows $200 max (and no, not per window—overall)
Advanced main air-circulating fan $50 max
Qualified natural gas, propane, or oil furnace or hot water boiler $150 max
Approved electric and geothermal heat pumps; central air-conditioning systems; and natural gas, propane, or oil water heaters $300 max
And not all products are created equal in the feds’ eyes. Improvements have to meet IRS energy-efficiency standards to qualify for the tax credit. In the case of boilers and furnaces, they have to meet the 95 AFUE standard. EnergyStar.gov has the details.
Tax credits cover installation—sometimes
Rule of thumb: If installation is either particularly difficult or critical to safe functioning, the credit will cover labor. Otherwise, not. (Yes, you’d have to be pretty handy to install your own windows and roof, but the feds put these squarely in the “not covered” category.)
Installation covered for:
Biomass stoves
HVAC
Non-solar water heaters
Installation not covered for:
Insulation
Roofs
Windows, doors, and skylights
How to claim the 2011 energy tax credit
Determine if the system you’re considering is eligible for the credits. Go to Energy Star’s website for detailed descriptions of what’s covered; then talk to your vendor.
Save system receipts and manufacturer certifications. You’ll need them if the IRS asks for proof.
File IRS Form 5695 with the rest of your tax forms in 2012.
This article provides general information about tax laws and consequences, but isn’t intended to be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice, and remember that tax laws may vary by jurisdiction.
Article by Donna Fuscaldo, House Logic
Donna Fuscaldo has written about personal finance for more than decade for Dow Jones Newswires, the Wall Street Journal, and Fox Business News. She’s currently a freelance writer with her own home office.
Biomass stoves
Heating, ventilation, air conditioning
Insulation
Roofs (metal and asphalt)
Water heaters (non-solar)
Windows, doors, and skylights
Storm windows and doors
The energy tax credits are small, but at least a credit is better than a deduction:
Deductions just reduce your taxable income.
With a credit, you get a dollar-for-dollar reduction in your tax liability: If you get the $500 credit, you pay $500 less in taxes.
Other limits on IRS energy tax credits besides $500 max
Credit only extends to 10% of the cost (not the 30% of yesteryear), so you have to spend $5,000 to get $500.$500 is a lifetime limit. If you pocketed $500 or more in 2009 and 2010 combined, you’re not entitled to any more money for energy-efficient improvements in the above seven categories. But if you took $300 in the last two years, for example, you can get up to $200 in 2011.
With some systems, your cap is even lower than $500.$500 is the max for all qualified improvements combined.Certain systems capped below $500
No matter how much you spend on some approved items, you’ll never get the $500 credit—though you could combine some of these:
System Cap
New windows $200 max (and no, not per window—overall)
Advanced main air-circulating fan $50 max
Qualified natural gas, propane, or oil furnace or hot water boiler $150 max
Approved electric and geothermal heat pumps; central air-conditioning systems; and natural gas, propane, or oil water heaters $300 max
And not all products are created equal in the feds’ eyes. Improvements have to meet IRS energy-efficiency standards to qualify for the tax credit. In the case of boilers and furnaces, they have to meet the 95 AFUE standard. EnergyStar.gov has the details.
Tax credits cover installation—sometimes
Rule of thumb: If installation is either particularly difficult or critical to safe functioning, the credit will cover labor. Otherwise, not. (Yes, you’d have to be pretty handy to install your own windows and roof, but the feds put these squarely in the “not covered” category.)
Installation covered for:
Biomass stoves
HVAC
Non-solar water heaters
Installation not covered for:
Insulation
Roofs
Windows, doors, and skylights
How to claim the 2011 energy tax credit
Determine if the system you’re considering is eligible for the credits. Go to Energy Star’s website for detailed descriptions of what’s covered; then talk to your vendor.
Save system receipts and manufacturer certifications. You’ll need them if the IRS asks for proof.
File IRS Form 5695 with the rest of your tax forms in 2012.
This article provides general information about tax laws and consequences, but isn’t intended to be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice, and remember that tax laws may vary by jurisdiction.
Article by Donna Fuscaldo, House Logic
Donna Fuscaldo has written about personal finance for more than decade for Dow Jones Newswires, the Wall Street Journal, and Fox Business News. She’s currently a freelance writer with her own home office.
Subscribe to:
Posts (Atom)