BLOG
Two Ways You Can Win In This Market
It’s no secret that many prospective homebuyers are finding the current real estate market challenging. One of the more unexpected consequences of the Covid pandemic was the hyper-focus on one’s home. This has resulted in a robust market where sellers are seeing advancing home sales prices and multiple offers.
While competition is fierce, clearly for sellers to sell, they need buyers. If your goal is to find a new home this year, there are a couple ways you can maximize your ability to have your offer accepted.
Two Ways Homebuyers Can Win in Today’s Market
1. Act Early - There are a couple reasons why home buyers should start early this year. With rising inflation, interest rates are likely to rise this year. While conventional wisdom may suggest lower real estate prices with an increase in mortgage rates, this is a gamble. Lower interest rates can not only save homeowners thousands of dollars over a 30-year term, but also provides better buying power with lenders, providing more choices.
2. Buy Now and Move Later - The rapid pace of the current market affects not only buyers but sellers as well. In a typical market, sellers often have weeks or months to find their replacement property. Buyers can sweeten their offer by asking about the sellers needs and allowing them extra time to move, offering to close quickly but renting to the sellers for 2-3 months to allow them time to find their new home.
The bottom line is that home loan rates and home prices will likely continue to advance throughout 2022. Potential homebuyers who move quickly can maximize their buying power and ability to win the home.
Find Your Next Home With Me! www.homesnap.com/laura-key
Scary Home Inspections
Unhappy with your Home Inspection Report? Let’s Talk!
Download for FREE Homebuyer’s Guide: bit.ly/letsdothishomebuyingthing
Make sure you follow my blogs and social media for other great information
@RealtyGoddess
Seller's Market? Consider New Construction Homes
Most of the country is experiencing a very tight real estate market. Inventory levels are historically low, perhaps owing to the concern of strangers traipsing through the home during this time. Additionally, because most people are staying home, they have been able to focus on their property and how it fits into their lifestyle, emphasizing the need to right-size their environment.
Most of the country is experiencing a very tight real estate market. Inventory levels are historically low, perhaps owing to the concern of strangers traipsing through the home during this time. Additionally, because most people are staying home, they have been able to focus on their property and how it fits into their lifestyle, emphasizing the need to right-size their environment.
With properly-priced homes moving quickly off the market, homebuyers are frustrated. For those who can be flexible with their timing, new construction offers an appealing alternative to the resale market. New construction offers the buyer a fresh, blank canvas on which to create their perfect home. In any market, this can be appealing, but when resale inventory is low, this is even more attractive. Yet, new construction is more than modern floorplans and beautiful finishes. Before buying new construction, it’s important to ask a few questions first:
• How long will the property take to build, and what possible delays could affect that timeframe? How does that timeline fit in with selling your current home or finding interim housing?
• Is your completion date affected by the sale or occupancy of other units or phases?
• What is included in the base unit and what are the additional costs for custom add-on options?
• What are the HOA (homeowner’s association) fees and what do they cover?
In addition, it’s important to understand the exact location of the new home and any planned developments or improvements which could affect the home in the future – road-noise, parking or traffic congestion, view, etc.
For those trying to compete in this resale seller’s market, it could be time to buy new. Developers are offering some great incentives in this climate, and it can be a great alternative for those with a little time to wait.
Ready to start the journey! Let’s get started!
SHOP NOW!
Making Your House A Home!
Recycled pallets, sanded & finished as a table!
Love the branding and varying colors of stain!
Find your next home with me! Text LKHOMES to 87778 to download the MLS on your mobile phone, or visit http://87778.mobi/lkhomes to download the FREE app on your iPad/Tablet
How to Claim Your Energy Tax Credits
How to Claim Your Energy Tax Credits
By: Donna Fuscaldo
Published: January 30, 2014
Energy tax credits on select improvements available through the end of tax year 2013.
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 past years combined, you’re not entitled to any more money for energy-efficient improvements in the above categories. But if you took $300 back then, for example, you can get up to $200 now.
- 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
Installation not covered for:
- Insulation
- Roofs
- Windows, doors, and skylights
How to claim the energy tax credit
- Determine if the system you installed is eligible for the credits. Go to Energy Star's websitefor 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.
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.
Find your next home with me! Text LKHOMES to 87778 or visit http://87778.mobi/LKHOMES for your FREE search.
Laura Key, CalBRELic #0198085
310.866.8422
Home Underwater and You Feel Trapped?
What if I told you there is a legitimate program that will allow you to short-sale your current home and buy a home the next day? Yeap, I bet that got your interest. Some peoples homes are underwater due to no fault of their own. Yes, my friend....we can help! No crazy fills or frills...a honest to goodness solution for those who need help.
Contact me today for more details.
Laura Key, REALTOR® Laura.A.Key@gmail.com