Living • April 5, 2010

Doing taxes as a new homeowner

by Guest Author

The April 15th deadline to file your taxes is less than two weeks away. Worrying that things would be complicated for me as a first-time homebuyer, I had my taxes done this year by a CPA. Here are a few quick tips for fellow new homeowners that I learned from the experience.

Claim the 2009-10 First-time Homebuyer Tax Credit

You could qualify for the up-to-8,000 credit if you bought a home in 2009 or are in contract for your new home on or before April 30, 2010 and have not owned a home three years prior to buying.

Don’t e-file. You must file an old-fashioned paper tax return. You can still use online software, just be sure to print and mail all your documents.

Make sure the IRS receives your return by mailing it as Certified Mail with a Return Receipt.

Include your HUD-1 or Form 540.

IRS explains the complete details.

Deduct Private Mortgage Insurance (PMI) and Property Taxes
Did you put less than 20% down on your home purchase and are now required to pay PMI? This year, you can deduct that cost.

On your tax forms provided by your lender, look for the amount of PMI premiums paid in the last year to add to your Schedule A when filing.

All homeowners can also add tax payments of up to $500 for single homeowners or up to $1,000 for married taxpayers in addition to their standard deduction.

See the complete requirements to claim these deductions.

Save those receipts for energy-saving improvements
Receive a credit of 30% of the purchase price for energy-efficient improvements on your primary residence made between January 1, 2009 and December 31, 2010. The maximum credit amount is $1,500 over the two-year period.

Qualifying improvements can include: insulation, exterior doors and windows, approved natural gas, propane or oil water heaters.

Get the full list of qualifications.

Because my tax preparation skills are usually limited to answering the yes or no questions on Turbo Tax, please speak with your professional tax preparer or accountant for specific information about these and other tax related questions. Also visit irs.gov for official tax information.

Market News • March 29, 2010

Market soup

by Michael Fanning

Recently, Jamie Johnson, one of our Windermere Agents in Camano Island shared a great analogy about the current market that I would like to share with you.

"We slurp soup when we are ill. Or when the day is dark and gloomy, we hunker down and make soup. Why? It’s good for us, and gives us comfort. That is exactly what our real estate market has needed….a good soup recipe.

2010 is bringing a new “energy” to our business. Pending sales almost doubled in November compared to November 2008. The market is back in a big way. Think of our market as the perfect soup recipe. What is your favorite soup? Clam chowder? Chicken noodle? Whatever it is, it wouldn’t be good without all the ingredients to make the soup perfect. Too much salt, and it’s not edible. No chicken, well, then it wouldn’t be chicken soup.

The current housing market is the perfect soup for buyers and sellers. There are three main ingredients that make it yummy. Here is the recipe:

Market Soup:

First ingredient: Low prices. If you are a seller, you may say “this is not good for me.” But think of it this way….if prices were not low, there would be no buyers. And if you are looking to move into another home (most people are; they need a place to live!), you are going to find a GREAT buy on your next home.

Second ingredient: Low interest rates. Hovering around 5% right now. Wow! Almost free money!

Third Ingredient: Tax Credit. $8,000 for first time homebuyers, and $6,500 for repeat homebuyers. (more info at: http://www.federalhousingtaxcredit.com/). Since the beginning of this tax credit, we have seen a rise in interest in the first time home buyer market. Clients have been using the money for down payments or to simply upgrade their new home.

Directions: Combine all ingredients, heat up, and stir. Enjoy.

What is your favorite soup? Think about it. And jump. The perfect recipe doesn’t come around often."

Via Camano Island Real Estate blog

Buying • Selling • March 24, 2010

Questions to ask your home inspector

by Windermere Staff

To get a quality home inspection, ask the right questions before you put your inspector to work. Here are some of the basics.

What does your inspection cover?
Insist that you get it in writing. Then make sure that it’s in compliance with state requirements and includes the items you want inspected.

How long have you been in business?
Ask for referrals, especially with newer inspectors.

<!–more–>Are you experienced in residential inspections?
Residential inspection is a unique discipline with specific challenges.

Do you do repairs or make improvements based on the inspection?
Some states and/or professional associations allow the inspector to perform repair work on problems uncovered in an inspection. If you’re considering engaging your inspector to do repairs, be sure to get referrals.

How long will the inspection take?
A typical single-family dwelling takes two to three hours.

How much will it cost?
Costs can vary depending upon a variety of things, such as the square footage, age and foundation of the house.

What type of report will you provide and when will I get it?
Ask to see samples to make sure you understand his reporting style. Also make sure the timeline works for you.

Can I be there for the inspection?
This could be a valuable learning opportunity. If your inspector refuses, this should raise a red flag.

Are you a member of a professional home inspector association? What other credentials do you hold?
Ask to see their membership ID; it’s some assurance.

Do you keep your skills up-to-date through continuing education?
An inspector’s interest in continuing education shows a genuine commitment to performing at the highest level. It’s especially important with older homes or homes with unique elements.

Any other good questions to ask? Post yours now!

More • March 23, 2010

Bryant Elementary receives $5,000 grant from Windermere Real Estate Company’s Foundation fund

by Christine Wood

Greetings from the Windermere Foundation,

The Windermere Real Estate Company, which is comprised of 6 Seattle offices (Green Lake, Lake Forest Park, Lakeview, Northgate, Sand Point & Wedgwood), recently donated $5,000 to Bryant Elementary’s Families In Need Fund. The goal for this fund is to provide students with a rich elementary school experience so they may feel a part of the school community and receive the “extras” that most students at Bryant enjoy.

Things like a Bryant t-shirt, year book, school pictures, camp supplies, socks, underwear and winter coats are all considered extras. In addition, this fund will also help provide grocery gift cards for families who are dependent upon the school breakfast and lunch program and cannot afford food during school breaks.

Bryant families are also given the opportunity to give directly to the Families In Need budget, which helps offset the costs of music programs, 5th grade camp, drama club and chess club, etc. – in an effort to allow its own community to support Bryant students who need the additional financial help.

Unfortunately, the need this year is far greater than anticipated and Bryant simply does not have the funds to cover some of the basics. This grant from the Windermere Foundation will help ensure students come to school feeling good about themselves and also have the basic needs of a hot breakfast and lunch during school breaks. Now that’s important!

Best,
Christine Wood
Windermere Foundation

Market News • March 18, 2010

Are mortgage rates on the rise?

by Windermere Economics

Despite being just a few weeks from the much anticipated end of government purchasing of mortgage-backed securities (MBS), mortgage rates remain steady. 30-year fixed FHA loans were also available at 4.75 percent with a standard .07 to 1 point origination. Jumbo 30-year fixed rates, for true jumbo mortgages exceeding conforming jumbo loan limits, remain at 5.625.

Are steady, low mortgage rates indicative of a “calm before the storm”? I am still forecasting a rise in long-term fixed mortgage rates to take place when government MBS purchases stop at the end of this month. However, one thing is clear to me and that is that nobody, including Federal Reserve Chief Ben Bernanke, knows exactly what's going to happen to mortgage rates, which move opposite MBS prices, when the purchasing stops. I believe that is why the Federal Reserve has left the door open to potentially re-starting the purchase of mortgage-backed securities if needed.

Market News • March 18, 2010

Lessons From The Mountain

by Geoff Wood

Last summer I had the opportunity to climb Mount Rainier. At just over 14,000 feet, Rainier is iconic in that many world-class climbers practice on it to prepare themselves for the really big ones like Mount Everest. Since I’m an amateur climber, I relied on a professional guide to help me up and down the mountain.

Climbing a mountain isn't easy. Getting to the top is an exhilarating and rewarding accomplishment – and humbling, too. As I trudged up and down the mountain over three days, I had a lot of time to think, and I was struck by some interesting parallels to the more grounded world of real estate.

Prepare Well

You don't just get up one day and decide to climb the mountain. It requires weeks and months of conditioning to prepare for the incredible test of strength and stamina the mountain demands. It also means planning: What gear should I take? What weather conditions should I prepare for? How much weight can I carry and for how long? How much of that awful carb gel will I need?

The application here to real estate is obvious: buying or selling a house requires careful planning.

Embrace a "Slow and Steady" Mindset

Climbing Mount Rainier was a three-day experience. Day one is getting to base camp at Camp Muir, and that's a four-hour hike to a bunkhouse at about 10,000 feet. Day two is on-snow training. You are taught how to stop yourself in the event of a fall, how to "read" the snow, and how to work with your group on a rope. Day two-and-a-half and day three are devoted to the ascent. It starts around midnight, to the summit in about eight or nine hours, then, the hard part, back down in about six hours. It requires a great deal of stamina, careful pacing, and a surprising amount of patience.

The housing market these days also demands stamina, pacing and patience. The combination of economic variables and market conditions requires a thoughtful and smart approach – with the knowledge that patience and timing are everything.

Use the Best Guide

As proud as I was to get to the top of Mount Rainier, I absolutely could not have done it without our experienced guides. The best guides have a combination of expertise, enthusiasm and keen judgment earned over many years. Being familiar with all the pitfalls, they helped us avoid big mistakes. They prepared us, instructed us, managed our expectations, and boosted us when we were tired and discouraged.
Experienced guides have seen it all. They are accustomed to ever changing conditions, which in the mountains can literally mean life or death. The best guides track the weather scientifically, but they also use their intuition. When they say go, you go. And when they say the timing isn't right, you stay put.

In the world of real estate, the best full-service agents really are the best guides to help you navigate some tough and tricky terrain. They've got what it takes to lead you to the top of the mountain – and they'll be there with you every step of the way. So while the parallels of mountain climbing and real estate aren’t always obvious, it’s nice to know that a rewarding accomplishment can be achieved in both.

Living • March 16, 2010

Fruit trees for a small garden

by Guest Author

I have a very small backyard, but I still dream of planting a garden with a few fruits and vegetables like tomatoes, kale or strawberries. I never thought I had enough space for a fruit tree until I recently discovered dwarf fruit trees. Even if you have a large garden area, dwarf fruit trees are a great option as they take much less space.

Dwarf fruit trees:

Come in many types – apples, cherries, lemons, oranges, pears and more

Grow anywhere from 3 to 15 feet tall

Can grow in an 8" diameter pot or in the ground

Yield full size fruit

Require 8-10 hours of full sun

Usually the variety of fruit is grafted to a type of rootstock that keeps the tree shorter (a rootstock is a type of root that is specifically grown for other plants to be attached to)

Where can you find one?
Your local nursery is the best place to find a dwarf fruit tree.

Glean extra fruit for your local food bank
If you end up with more fruit than you can eat, be sure to find a gleaning organization in your area. These groups can collect the extra fruit throughout a neighborhood and donate the harvest to a local food bank.

More • March 9, 2010

MultiCare’s Tree House project receives over $4,000 from Tacoma Professional Partners

by Christine Wood

Greetings from the Windermere Foundation,

Professional Partners (Tacoma and Tacoma North) donated over $4,000 to MultiCare’s Tree House project – a project that fills a very important need. Imagine you had a child in the hospital, fighting for life, and while you of course would want to stay near your child, what if you lived far away? And… what if you didn’t have a place to stay or sleep nor the resources to pay for such accommodations?

Tree House is MultiCare’s new family housing complex which offers 43 sleep rooms, most with two queen beds, private bathrooms, laundry facilities, a communal kitchen and dining room, and a playroom for parents to play with their other children.

“During one of the most traumatic times a family can face, family housing is a true gift that touches lives in a most meaningful way. Thank you for your ongoing support to ensure that Tree House continues to offer parents and families a nurturing, restful environment that lets them focus all of their energies on their beloved child.” MultiCare’s Website

This $4,000 donation will be put to good use making sure families, who live out-of-area, have a place to stay – close to the hospital and close to their child.

Best,

Christine Wood

Windermere Foundation

Market News • March 4, 2010

You get one chance to make a first impression

by Windermere Staff

Studies indicate that buyers decide if they’re interested within the first 30 seconds of entering a home. Read more about staging your home.

Selling • March 4, 2010

Staging your home – Pink Flamingos not included

by Windermere Staff

It can sometimes be tough to hear an agent asking you to hide your prize possessions when preparing your home for sale. I overheard two agents giving each other advice about how to politely help their sellers relocate their pink flamingo display and car collection off the front yard before putting the homes on the market.

Studies indicate that buyers decide if they’re interested within the first 30 seconds of entering a home. You get one chance to make a first impression.

Make sure your house looks attractive, well maintained and move-in ready at a glance. Before you put out your “for sale” sign, put these tasks on your to do list.

• Get your yard in shape—Mow the lawn, trim the hedges, haul away debris, sweep the walk, porches and patio, and consider adding some potted plants or hanging baskets for a touch of color.

• Keep it clean—Make sure your house can pass the white-glove test. Polish windows and scrub bathrooms, appliances, counters and floors until they gleam. Vacuum carpets, rugs, drapes and upholstery. Dust shelves, floorboards and molding.

• Give it a fresh coat—Paint the front door, walls leading to entrances, ceiling stains, cracks, chipped or damaged areas. A little paint goes a long way to improve the look of your home.

• Just fix it—Repair anything that needs it, including broken doorbells, torn screens, leaky faucets, broken deck railings or banisters, damaged floor tiles or doors that don’t close properly.

• Lose the chaos—Organize your rooms, closets and basement—anywhere a prospective buyer is likely to look. And don’t forget to remove pets and litter boxes.

• Set the stage—Help prospective buyers imagine life in your house. Remove excess furniture and rearrange what remains so that rooms look spacious and welcoming. Light scented candles, play soft music, add flowers here and there, you might even bake cookies.

• Hire a pro—Don’t have time to get your house ready to show? Turn to a realtor with an ASP® (Accredited Staging Professional) designation to stage your house professionally.