A Bit About Mold

There are a number of little things to look out for when purchasing a new home. Normally the things to consider includes such things as location, wiring, the condition of the house itself, and several other factors. One of these factors that the home buying public is becoming more concerned with is mold. There are many different types of mold that can occur in a home and lead not only to structural damage, but some health concerns as well. Mold is difficult to find in many homes as it grows exclusively in dark and moist areas that are usually hidden somewhere in the structural areas of the home such as attics and basements. By the time mold shows up in the actual living areas, chances are that it is all through the home.

One of the most likely places for mold to form is anywhere that moisture is improperly vented. Another area of concern is if a home has ever flooded and was not completely or properly cleaned and dried after. Leaky plumbing and basement crawlspaces are other likely candidates. Mold can be a difficult thing to completely get rid of as the only thing it needs to continue growth is an organic material such as wood, and moisture. Both of these items are usually abundant in any home. The most likely was that moisture finds its way into the home is through faulty or leaky roofs and foundations. Both of these areas should be checked over by an experienced mold inspector on a fairly regular basis if there is any worry of mold beginning to grow, or if these has been mold in the past. Mold can be an expensive problem to deal with so be pro-active about looking for it, it can save you money in the long run.

Mold is one of the inspections you will have when purchasing a home.  Finding a good inspector will be one of your top priorities when buying a home.  Contact Laura Key today to learn more about the Steps to Buying! www.KeyCaliforniaHomes.com

Realty Goddess

Unique Homes of the Word - Mexico City

The Nautilus

Background: This seashell-shaped home was completed in 2006. The stone steps running along the shrubs lead to the front door, which blends into the mosaic façade.

Why It’s Unique: Architect Javier Sensonian practices what he calls “bio-architecture," a style that has led him to design buildings shaped like snakes, whales and several other creatures. The Nautilus was created to imitate a crustacean’s shell, and its cavernous interior is filled with vegetation and small trees. “It’s not common that you would see a home of this design ascetic," Koliopoulos says. “However, it’s very enlightening and something that we can all learn from.

A house is not a HOME until you make it yours!  Ready to create your masterpiece today? Call Laura Key at 310.866.8422 for a free homebuying consultation!

"Read more: Source: Popular Mechanics

'Nightmare On Elm Street' Home On Sale For Over $2 Million

Looking for a horrifying new place? The home from the legendary "Nightmare on Elm Street" movie can be all yours for just a little over $2 million -- and it’s not nearly as creepy as we imagined.

According to the listing by Redfin, the Los Angeles home has four bathrooms, three bedrooms, "designer closets,” and en suite baths. It’s completely modern with hardwood floors throughout and stainless steel appliances in the kitchen.

The current owner told AOL Real Estate that the home really was a nightmare when she purchased it in 2006. "It was the only house on the street that looked beaten up. The pool looked like it hadn't been touched in 10 years -- it was black," Angie Hill told the publication.

Hill has transformed the property into a dream... but the home still boasts the famous red door from the 1984 thriller, and we are half expecting Freddy Krueger to open it.

Maybe this home is a little too frightening for you?  Call Laura Key to find your "DREAM HOME" today! www.KeyCaliforniaHomes.com

Is Your Home in a Buyer's or Seller's Market

As the overall housing recovery gains steam, local market divergences are growing wider. That is because one overriding factor —faulty and fraudulent mortgage lending — brought the market down; it will take varied local and national market drivers — jobs, income growth, consumer confidence, increased lending — to bring it back.

And that is why certain markets remain buyers' markets and certain ones have fast become sellers' markets.

Online real estate marketplace Zillow, defines a sellers' market as not necessarily one where prices are rising, but one in which homes sell faster, price cuts occur less frequently and final sale prices are close to or greater than list price.

Zillow ranked the top 30 markets and found that the formerly hard hit markets in California, Arizona and Nevada now rank as the top sellers' markets, which may seem counterintuitive, until you consider who the buyers there are now.

"Much of that strength is driven by investor interest, as many distressed and non-distressed homes are purchased and transformed into rentals," says Stan Humphries, Zillow's chief economist, in the report. "This investor activity is contributing to very low inventory levels, which increases demand and helps drive up prices, particularly for less expensive homes in these markets."

The best buyers' markets are equally surprising, with Chicago, Cleveland and Philadelphia topping the list.

These markets are still plagued by distress, despite the fact that their foreclosure numbers were lower during the worst of the housing crash. Investors are a far smaller share of buyers, as these markets don't offer the sun and leisure opportunities that the sand states do. Home prices are still suffering in these markets under still-tough local employment conditions. All that makes them less desirable for buyers. Stricter mortgage lending standards are also likely playing an outsized role, since most buyers in these markets would be owner-occupants.

The housing crash was the first fully national housing downturn in U.S. history. Usually housing downturns are local, spurred by some local phenomenon. Now that the overall economy is on the upswing, housing return to its roots and rises and falls on local factors again.

Source: CNBC —By CNBC's Diana Olick

Need to know how much your home is worth? Contact Laura Key today for a free Comparative Market Analysis! www.KeyCaliforniaHomes.com

Home Prices Surge Despite Distress

For nine straight months, national home prices have been in the positive, and the gains are only getting larger. The latest reading for November shows a 7.4 percent jump from a year ago, according to CoreLogic. That includes sale prices of distressed properties, bank-owned homes and short sales. This is the largest year-over-year jump since 2006 when we were at the height of the housing boom.

"As we close out 2012 the pending index suggests prices will remain strong," wrote Mark Fleming, chief economist for CoreLogic in a release. "Given that the recently released Qualified Mortgage rules issued by the Consumer Financial Protection Bureau are not expected to significantly restrict credit availability relative to today, the gains made in 2012 will likely be sustained into 2013."

Some had predicted price gains of between three and five percent in 2013, but these numbers seem to indicate the market could outpace expectations.

While competition among investors for distressed properties drove home price gains in much of 2012, the non-distressed market appears to be catching up. Excluding distressed sales, home prices still saw a healthy 6.7 percent annual gain in November, and analysts at CoreLogic are predicting an even larger 8.4 percent jump in December.

"For the first time in almost six years, most U.S. markets experienced sustained increases in home prices in 2012," said Anand Nallathambi, president and CEO of CoreLogic. "We still have a long way to go to return to 2005-2006 levels, but all signals currently point to a progressive stabilization of the housing market and the positive trend in home price appreciation to continue into 2013."

Just six states, Delaware, Illinois, Connecticut, New Jersey, Rhode Island and Alabama saw annual price depreciation. New Jersey still has a huge backlog of distressed properties, as does Illinois. Arizona, Nevada and California are seeing big home price gains, as investors there continue to inhale properties to take advantage of the very lucrative rental market. Still, even excluding distressed sales, Nevada saw a 12 percent jump in home prices.

There are, however, still looming headwinds to home prices, as banks ramp up foreclosures especially in states that require these cases to go before a judge. That new inventory could slow price gains in those states. Inventory, or lack thereof, is the primary driver of much of these gains. There were just 2.03 million homes for sale in November, according to the National Association of Realtors, a 23 percent drop from November of 2011 and the lowest supply since September of 2005.

Some are concerned that low inventory and not increased demand is juicing prices faster than is healthy for the housing recovery. If prices start to outpace earnings and employment growth, and then more properties hit the market this Spring, these gains could take a U-turn.

Source: CNBC by By: Diana Olick

Buyers are starting to have a hard time finding the homes they need! Let me help guide you through the market to help you obtain the home you need before prices go to far! Laura Key www.KeyCaliforniaHomes.com

New Housing Fears: Home Prices Are Rising Too Fast

"For Sale" signs may seem like an eyesore to neighbors on any given local street, but the lack of them is a much bigger problem.

Just 1.82 million homes were listed for sale in December, according to the National Association of Realtors. That is a 22 percent drop from a year ago and the lowest supply since May of 2005, when words like "boom" and "bubble" followed the word "housing." At the current sales pace it would take just 4.4 months to sell those homes.

"The greatest concern in the market is the inventory situation," said Lawrence Yun, chief economist for the NAR. "Even if we see an increase in the Spring and Summer, if home sales hold at the [current] level or even a 5 to 6-month supply, price increases are guaranteed. We don't want to see rapid appreciation in prices faster than income."

The reasons for the low supply are varied, and the low numbers are in fact feeding on themselves. If potential buyers can't find something to their liking, they will probably not list their homes for sale.

There are also still 10.7 million borrowers who owe more on their mortgages than their homes are worth, according to the latest report from CoreLogic. An additional 2.3 million have less than five percent equity in their homes, referred to as near-negative equity. Most of these homeowners are stuck in place, unable to sell unless they can afford to pay in to their mortgages. As for new supply, even though builders are increasing starts, they are still not even at half the pace they were at the height of the housing boom.

As a result, home prices are now rising more and faster than most analysts predicted due to this short supply, up 7.4 percent year-over-year in November, according to CoreLogic. They are especially surging in some of the hardest hit markets from the housing crash, where large-scale investors are swarming with cash in hand. In Phoenix, home values jumped nearly 32 percent from a year ago in November and are now at the highest level since October of 2008 according to DataQuick. While still 39 percent off their boom-high in June of 2006, they are now up 41.5 percent from the bottom, and there is not much on the market.

Healthy housing market gains are historically driven by increasing employment and income, not by lack of supply; the latter leads to price bubbles. First-time home buyers, who generally account for 40 percent of the home-buying market or higher are still under-represented at just 30 percent, according to the Realtors. This is due to tighter credit conditions in the mortgage market and now decreasing affordability.

December's disappointing drop in home sales, month-to-month is a clear warning for the housing recovery going forward. Rising home prices are not the sole measure of a healthy market. Supply and demand need to fall closer in line, and a robust economic recovery should be driving both home sales and prices.

Source CNBC —By CNBC's Diana Olick;

Prices are rising rapidly. Wondering if you can buy before they get too high? Call Laura Key today for a free consultation! www.KeyCaliforniaHomes.com

10 Ideas For a Quicker and Easier Sale When Selling Your House

1. NO CLUTTER. Throw out old newspapers and magazines. Pack away most of your small items like figurines and other trinkets. Store clothing that won’t be used in the near future to make closets seem roomier. Clean out the garage. Buyers like to visualize their possessions in the house and that is hard to do when the home is full of clutter.
2. Wash your windows and screens. This lets more light into the interior and dirty windows are a turn off.
3. Keep everything extra clean. Wash fingerprints and dirt from light switch plates. Clean the floors, stove, refrigerator, washer and dryer. A clean house makes a better first impression and tells buyers that the home has been well cared for.
4. Put brighter bulbs in light sockets to make rooms appear brighter, especially dark rooms. Replace any burnt-out bulbs. Turn all lights on before buyers come to view the home.
5. Make all minor repairs that you can find. Everything you don’t repair now will be revealed in the home inspection and can create a bad impression. Small problems such as sticky doors, torn screens, cracked caulking, cracked receptacle covers or a dripping faucet may seem trivial, but they'll give buyers the impression that the house isn't well maintained.
6. Shoot for good curb appeal. Cut the grass, rake any leaves, trim the bushes, and edge the walks. Put a couple of bright potted flowers near the entryway to cheer things up and get the buyers attention.
7. Patch holes in your driveway and reapply sealant, if applicable.
8. Clean dirty gutters.
9. Polish or replace your front doorknob and door numbers.
10. Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. If carpets are old and need replacing, it is worth while to replace them. The additional price you receive for your house will most likely outweigh the expense. Open the windows. The number one turn off to a potential buyer is an unpleasant odor.

For more helpful information including seller and buyer tips, contact Laura Key today at 310.866.8422!

Waste Not...Want Not

Americans have a global reputation for eating vast quantities of food. As a result, there are more overweight people in the U.S. than anywhere in the world. Now it looks like U.S. consumers can add an equally embarrassing reputation for throwing out more food than anyone else.  According to a study produced by the Natural Resources Defense Council, a non-profit, international environmental advocacy group, as much as forty percent of food in the United States is never eaten. 

That amounts to $165 billion a year in waste, or 20 pounds of food annually for every man, woman and child in the US. Think of it as dumping 80 quarter-pound hamburger patties in the garbage each month. 

Americans waste 10 times more food than Asian countries and American waste is up 50% since the 1970s. 

Most of the waste occurs in the home. American families throw out approximately 25% of all the food and beverages they buy. Food is so cheap and plentiful in the United States that Americans just don't value it properly. Impulse buys, sales, and incentives to buy in bulk are some of the reasons why Americans buy more food than they can eat. 

Part of the problem comes from spontaneous decisions to eat out when there's still food in the fridge. And when Americans do cook at home, they make far more than they can consume. The average size of the U.S. dinner plate is 36% bigger now than it was in 1960. 

Portion sizes account for significant food loss in restaurants, too. Seventeen percent of the food served in restaurants is not eaten. Portion sizes can be up to eight times larger than USDA or FDA standard serving sizes. Particularly wasteful are restaurants that serve buffets, because health code restrictions restrict buffet food from being reused or donated. 

Among the biggest wasters of food are food retailers. They overstock displays of fresh produce to give an impression of bounty, leaving items at the bottom bruised and not fit to sell. They make too much ready-to-eat food so as much as 50% gets thrown out. And they throw out food in damaged or outdated promotional package that is still edible.

There is also a problem on farms. Approximately 7% of planted fields in the United States are not harvested each year. Growers either can't get a good enough price for their crop to make harvest profitable, or they over-planted and have more crop than there is demand for. Citrus, fruit, and grape packers estimate that as much as 20% to 50% of the food they produce never gets marketed. 

Although the economic figures are staggering, the unnecessary high toll on natural resources and environmental implications are more worrisome. Food production accounts for 80% of the country's fresh water consumption. A single hamburger takes 660 gallons of water to produce. Wasted food means that 25% of that fresh water is being wasted. 

Food waste also contributes to global warming. Experts say that food rotting in landfills accounts for 25% of U.S. methane emissions. Methane is a greenhouse gas that remains in the atmosphere as long as 15 years and is 20 times more effective at trapping heat than carbon dioxide. 

Food labels are culprits, too. Consumers often confuse "sell-by" dates with "use-by" dates. On average, grocery stores throw out nearly $2,500 worth of food each day because the products have neared their sell-by expiration date. Yet most of this food is still perfectly edible. 

In many states, it's legal to sell food past its expiration date but many stores do not because they think it looks bad. Most stores, in fact, pull items 2 to 3 days before the sell-by date 

An unfortunate truth of all this is that the more food consumers waste, the more those in the food industry are able to sell. This is true throughout the supply chain where waste downstream translates to higher sales for anyone upstream. That needs to change. 

In a generation, some nine billion people will be living in a world where the increasing scarcity of natural resources and environmental dynamics more and more affect individuals and society. A prodigious waste of food is simply not a sensible option in a desirable future. 

The fact of the matter is that the world now produces enough food to feed everyone in the world, yet one in every six people goes hungry. If Americans could reduce food waste by just 15%, it could feed more than 25 million of the 50 million Americans who go hungry each year.

Source: Good Neighbor Newsletter - Feb 2013

Laura Key, Real Estate Agent - 310.866.8422 - Laura.A.Key@gmail.com

The First Ever ‘Zombie-Proof’ Home

This garrison styled home, dubbed the “Safe House”, is located on the outskirts of Warsaw Poland which was designed and built by KWK Promes from 2005 to 2009 and is essentially a 6,100 square foot concrete cube when the house enters ‘sleep mode’, folding into itself and sealing the occupants safely inside behind its thick concrete walls.

The only common entrance into this down-home stronghold is on the second floor, across a lowering drawbridge, and then through a safety zone where visitors need to be screened then “approved” before being allowed to enter into the main interior of the concrete habitat. There are walls which slide out from the side of the house towards the exterior walls creating a courtyard/garden area, and these walls can surround the property like a domestic Bastille. The colossal roll-down-garage-like-door made from white anodized aluminum doubles as a movie projection screen when it is fully closed plus it seals the patio completely inside, and the windows feature thick concrete slabs for shutters which, like a bank vault, protects the glass inside the windows. This home even comes complete with an indoor swimming pool; zombies roaming about feasting on the living and roving gangs abound looting and pillaging everything in sight, so why not let your guard down and relax with a swim melting away your troubles.

Since there would be a lack of man made electricity during a zombie outbreak, the safe house runs mostly off renewable energy sources like solar collection and a heat pump, which are also both supported by gas heat. During the winter, the glazing behind the walls collects energy from the sun, and during the summer is keeps the heat from entering the home.

The house was sold recently but the selling price is being kept a tight secret.

Are you ready for the zombie apocalypse? Better to be safe than sorry! Let me help you find your next home! www.KeyCaliforniaHomes.com

Source: www.thegreatestrealestateblog.com

Paul Giannini is a highly respected attorney who deals with HOA's. His insight is great on this subject! Enjoy!

Why Do You Need An Agent When Buying A Home?

My immediate response to that question is "Why wouldn't you?" For one thing, many people don't know that a buyer doesn't pay an agent; the seller does, so the services of a real estate agent are essentially free to the buyer. Also, a buyer's agent has access to historical price data for home sales in the area, which means he can recommend a bidding strategy based on real market data. Even though a lot of this kind of information is now available online, agents are much better able to analyze and interpret the data.

Many buyers will contact the agent listed with the property or walk into an open house thinking the listing agent will be working in their favor. But the seller's agent is contractually obligated to act in the seller's favor and get as close to the asking price as possible. They are not working for you.

Then there is the process of actually making an offer and handling all the details of a purchase contract. Aside from the fact that an agent is probably better at negotiating an offer than you are, there's a lot more involved than just making an offer.

There are many questions that a buyer just wouldn't ordinarily think to ask - things that could affect the outcome of the transaction. What should be included or excluded? How much time should be allocated to inspections, financing and closing? Are there any other conditions that could affect the sale?

Buying a home is a legal transaction for a great deal of money involving a whole host of local and federal laws and regulations. You will be much better off having someone in your corner who deals with these things every day.

I'd be more than happy to discuss this further or answer any questions you may have about real estate. Just give me a call.

Buying a Home is not like buying a pair of shoes or a car!  You will have to season your investment for at least 5-7 years in a good market to obtain your reward. You need an expert to help you obtain your Real Estate goals.  Call Laura Key today to start your journey and reach your goals! 310.866.8422 or email her at Laura.A.Key@gmail.com

Home Improvement with Heart — Just in Time for Valentine’s Day

Roses are red; violets are blue — here are romantic improvements that add value, too. The sensual shower

What makes your honey feel better than a long, soothing shower? (OK. It’s a rhetorical question.) But showering exactly the way you want it is a little luxury that can set the mood for a lot of love.

Programmable showers ($290 to $3,500) let you digitally determine water temperature, pressure, even type of spray. Pulsating, anyone? 

And if you want things to get a little steamy in the bedroom, start in the bathroom with asteam shower ($7,000 to $10,000). You’ll need space to put the steam generator — an adjacent closet will do — and you’ll have to make your shower airtight to trap the steam. Or you can buy a prefab unit ($1,000 to $5,000) that you can install yourself or hire a pro to do the wet work ($500 to $1,000).

Read on to learn about more romantic home improvements:

• Squeaky Clean
• Dim the Lights
• Surround Yourself with Sound
• Fireplaces Turn Up the Heat

Squeaky clean

We know you’ll want to be extra clean and coiffed for Valentine’s Day night, so get ready for the fun with an electronic toilet seat that washes and warms, plays music, and sprays pleasant scents.

A couple of years ago, these deluxe seats were hard to come by. Now, big box stores around the country sell these bathroom accessories that fit on top of your toilet ($150 to $600). They come with a host of features, some with slow-closing lids and germ-resistant seats. 

If you want to go whole hog, buy complete high-tech toilets that also include LED lights for late night bathroom breaks and no-touch flush ($450 to $1,100).

Dim the lights

Help romance along by avoiding harsh overhead lights and instead installing dimmers on bedroom lights ($16 to $38) or just replacing a few lamps with lower wattage bulbs.

Not only will dim lighting set the mood, but lowering brightness extends the life of bulbs,saving energy and money — and what’s sexier than that?

Surround yourself with sound

Isn’t it romantic to listen to music in the dining room, bedroom, even the bath? 

You can go high-end — and high-effort — and have a sound specialist install whole-house sound, which entails running speaker wires through ceilings and walls ($700 to $2,700 per room), and hooking up a pair of speakers ($100 to $2,000 each pair).

Or, you can save some money and install a wireless system yourself. The music is distributed by a computer and sent via router into small player boxes in each room ($400 per room). This DYI project takes a couple of hours.

Fireplaces turn up the heat

Lounging by the fireplace on Valentine’s Day, sipping champagne, eating chocolate-covered strawberries is a dream celebration. But, let’s get down to earth and just settle for the fire.  

If you already have a wood-burning fireplace, sweep it out and perform chimney maintenance so your V-Day doesn’t go up in flames. 

If you’re missing a place for flames, you could go all out and add a fireplace. If you have a wood-burning fireplace one but never use it because of the hassle, you can retrofit with agas fireplace insert that gives you light and heat with just a flick of a switch ($3,000 to $4,000).

Or, if you’re in a hurry, install a plug-in, electric fireplace that supplies a realistic-looking flame and even heat. Installation is a DIY project. Your biggest hassle will be selecting the location — along a wall or stand-alone — and picking the most romantic-looking mantle surround or fireplace shelf (with mantle package $800 to $1,600).

Tell us what you love about your home.

Thinking of buying or selling your home! You need someone who is experienced, caring and hardworking!  Call Laura Key today at 310.866.8422 or email Laura.A.Key@gmail.com

Love Those Baby Wipes! - Great Home Ideas!

The manufacturers of baby wipes never envisioned that their product could have so many uses other than cleaning up baby. Check out these ideas and you'll never be without them again:

• Makeup Remover: A few swipes with a baby wipe and makeup is gone.
• Removes crayon marks from painted walls or finished furniture.
• Remove stains from clothes.
• Excellent for shining shoes.
• Clean up shards of glass off floors after an accident.
• Touch up bathrooms between cleanings.
• Clean dashboard and car interior.
• Remove "white marks" from deodorant on clothes.
• Wipe down shower or tub after each use to prevent soap scum.
• Remove hairs from a shedding pet.
• Remove scuff marks off of floors.
• Cool a sunburn by patting it with a baby wipe.
• Touch-up floors. Put a wipe under each foot. Scoot feet along the floors.
• Water-less pet baths.
• Electronic Screen Cleaner: Use them on TV, cell phone, iPod and computer monitors.
• Remove bird splatters from car windshields.
• Wiping down restaurant tables, high chairs, shopping carts, changing tables and toilet seats in public places.
• Place a few drops of your favorite essential oil on a wipe and place it in a dresser drawer as a sachet.
• A must have on camping trips - good for cleaning yourself when a shower isn't available.
• Cleans window blinds.

Source: Good Neighbor Newsletter Feb 2013

Laura Key, your LA Real Estate Agent! For all your Real Estate needs call her for a free consultation! 310.866.8422 or Laura.A.Key@gmail.com

25% of Consumers Have Errors on Credit Report

Consumers need to be extra vigilant about checking for any errors on their credit reports, according to the Federal Trade Commission. 

One in four Americans report they’ve found an error on their credit report, according to a study conducted by the FTC, which analyzed 1,001 consumers’ credit reports from the three major agencies, Equifax, Experian, and TransUnion. Researchers helped the consumers spot potential errors on their reports. 

Five percent of the consumers found such large errors on their report that they could have gotten stuck paying more for mortgages or other financial products, if they hadn’t taken steps to correct it before applying, according to the study. 

Twenty percent of the credit reports studied that were found to have errors in it were ultimately corrected after the consumer took steps to dispute it, which resulted in about 10 percent of consumers receiving a higher credit score, according to the study. 

Consumers are entitled to receive a free copy of their credit report each year from the three reporting agencies. 

Source: “Study: 1 In 4 Consumers Had Error In Credit Report,” The Associated Press (Feb. 11, 2013)

Keeping a close look at your credit can make or break the decision to purchase a home! Call Laura Key for more info! 310.866.8422 or Laura.A.Key@gmail.com

Don't-Miss Home Tax Breaks

From the mortgage interest deduction to energy tax credits, here are the tax tips you need to get a jump on your returns.

• Mortgage interest deduction
• Private mortgage insurance deduction
• Prepaid interest deduction
• Energy tax credits
• Vacation or second home tax deductions
• Home buyer tax credit repayment
• Property tax deduction

Mortgage interest deduction

One of the neatest deductions itemizing home owners can take advantage of is themortgage interest deduction, which you claim on Schedule A. To get the mortgage interest deduction, your mortgage must be secured by your home — and your home can even be a house trailer or boat, as long as you can sleep in it, cook in it, and it has a toilet.

Interest you pay on a mortgage of up to $1 million — or $500,000 if you’re married filing separately — is deductible when you use the loan to buy, build, or improve your home.

If you take on another mortgage (including a second mortgage, home equity loan, or home equity line of credit) to improve your home or to buy or build a second home, that counts towards the $1 million limit.

If you use loans secured by your home for other things — like sending your kid to college — you can still deduct the interest on loans up $100,000 ($50,000 for married filing separately) because your home secures the loan.

PMI and FHA mortgage insurance premiums

Helpfully, the government extended the mortgage insurance premium deduction through 2013. You can deduct the cost of private mortgage insurance as mortgage interest onSchedule A — meaning you must itemize your return. The change only applies to loans taken out in 2007 or later.

What’s PMI? If you have a mortgage but didn’t put down a fairly good-sized down payment (usually 20%), the lender requires the mortgage be insured. The premium on that insurance can be deducted, so long as your income is less than $100,000 (or $50,000 for married filing separately).

If your adjusted gross income is more than $100,000, your deduction is reduced by 10% for each $1,000 ($500 in the case of a married individual filing a separate return) that your adjusted gross income exceeds $100,000 ($50,000 in the case of a married individual filing a separate return). So, if you make $110,000 or more, you lose 100% of this deduction (10% x 10 = 100%).

Besides private mortgage insurance, there's government insurance from FHA, VA, and the Rural Housing Service. Some of those premiums are paid at closing and deducting them is complicated. A tax adviser or tax software program can help you calculate this deduction. Also, the rules vary between the agencies.

Prepaid interest deduction

Prepaid interest (or points) you paid when you took out your mortgage is 100% deductible in the year you paid them along with other mortgage interest. 

If you refinance your mortgage and use that money for home improvements, any points you pay are also deductible in the same year. 

But if you refinance to get a better rate and term or to use the money for something other than home improvements, such as college tuition, you’ll need to deduct the points over the term of the loan. Say you refi for a 10-year term and pay $3,000 in points. You can deduct $300 per year for 10 years.

So what happens if you refi again down the road?

Example: Three years after your first refi, you refinance again. Using the $3,000 in points scenario above, you’ll have deducted $900 ($300 x 3 years) so far. That leaves $2,400, which you can deduct in full the year you complete your second refi. If you paid points for the new loan, the process starts again; you can deduct the points over the term of the loan.  

Home mortgage interest and points are reported on IRS Form 1098. You enter the combined amount on line 10 of Schedule A. If your 1098 form doesn’t indicate the points you paid, you should be able to confirm the amount by consulting your HUD-1 settement sheet. Then you record that amount on line 12 of Schedule A.

Energy tax credits

The energy tax credit of up to a lifetime $500 had expired in 2011. But the Feds extended it for 2012 and 2013. If you upgraded one of the following systems this year, it’s an opportunity for a dollar-for-dollar reduction in your tax liability: If you get the $500 credit, you pay $500 less in taxes.

• Biomass stoves
• Heating, ventilation, air conditioning
• Insulation
• Roofs (metal and asphalt)
• Water heaters (non-solar)
• Windows, doors, and skylights
• Storm windows and doors

Varying maximums

Some of the eligible products and systems are capped even lower than $500. New windows are capped at $200 — and not per window, but overall. Read about the fine print in order to claim your energy tax credit.

• Determine if the system is eligible. Go to Energy Star’s website for detailed descriptions of what’s covered. And talk to your vendor.
• The product or system must have been installed, not just contracted for, in the tax year you'll be claiming it.
• 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.

Vacation home tax deductions

The rules on tax deductions for vacation homes are complicated. Do yourself a favor and keep good records about how and when you use your vacation home.

• If you’re the only one using your vacation home (you don’t rent it out for more than 14 days a year), you can deduct mortgage interest and real estate taxes on Schedule A.
• Rent your vacation home out for more than 14 days and use it yourself fewer than 15 days (or 10% of total rental days, whichever is greater), and it’s treated like a rental property. Those expenses get deducted using Schedule E.
• Rent your home for part of the year and use it yourself for more than 14 days and you have to keep track of income, expenses, and divide them proportionate to how often you used and how often you rented the house.

Home buyer tax credit

There were federal first-time home buyer tax credits in 2008, 2009, and 2010.

• If you claimed the home buyer tax credit for a purchase made after April 8, 2008, and before Jan. 1, 2009, you must repay 1/15th of the credit over 15 years, with no interest.
• If you used the tax credit in 2009 or 2010 and then sold your house or stopped using it as your primary residence, within 36 months of the purchase date, you also have to pay back the credit. Example: If you bought a home in 2010 and sold in 2012, you pay it back with your 2012 taxes.
• That repayment rules are less rigorous for uniformed service members, Foreign Service workers, and intelligence community workers who get sent on extended duty at least 50 miles from their principal residence.

Members of the armed forces who served overseas got an extra year to use the first-time home buyer tax credit. If you were abroad for at least 90 days between Jan. 1, 2009, and April 30, 2010, and you bought your home by April 30, 2011, and closed the deal by June 30, 2011, you can claim your first-time home buyer tax credit.

The IRS has a tool you can use to help figure out what you owe.

Property tax deduction

You can deduct on Schedule A the real estate property taxes you pay. If you have a mortgage with an escrow account, the amount of real estate property taxes you paid shows up on your annual escrow statement.

If you bought a house in 2012, check your HUD-1 Settlement statement to see if you paid any property taxes when you closed the purchase of your house. Those taxes are deductible on Schedule A, too.

This article provides general information about tax laws and consequences, but shouldn’t be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws may vary by jurisdiction.

Source: House Logic By: Dona DeZube

For all your real estate needs give Laura Key a call today! 310.866.8422 or email Laura.A.Key@gmail.com

Top 10 Legal Mistakes Homebuyer Make

Top 10 Legal Mistakes Homebuyer Make

1. Not realizing that if you don't write a strong offer to purchase, the seller may reject or not respond to your offer.
2. Not realizing that if you don't write a strong offer to purchase, you may lose the property to another more highly motivated buyer.
3. Not realizing that, without a confidentiality agreement,  a seller need not treat your offer as confidential.
4. Not understanding when a contract becomes legally binding.
5. Entering into an agreemetn before checking title records, liens, and other thigns to ascertain whether the seller will be able to close escrow as scheduled.
6. Not understanding the legal implications of loan and inspection contingencies, and other contractual provisions.
7. Not obtaining a seller's disclosure.
8. Not conducting your own inspections and investigations as the buyer.
9. Not fully considering the legal, tax, credit and other ramifications of homeownership, especially co-ownership.
10. Not properly handling a claim for property defects discovered after close of escrow.

Source: C.A.R. Legal Department (California Association of Realtors)

A good buyers agent will help guide you through this list and help you understand each and every one of them.  Contact Laura Key for more info: 310.866.8422 or Laura.A.Key@gmail.com

Happy Chinese New Year 2013, Year of the Water Snake

This is a great time to get your home in order with Feng shui!!!! The Lunar New Year dates from 2600 BC, when the Emperor Huang Ti introduced the first cycle of the Chinese zodiac. Because of cyclical lunar dating, the first day of the year can fall anywhere between late January and the mid-February. On the Western calendar, the start of Chinese New Year this year falls on Sunday, February 10, 2013 — The Year of the Water Snake.

San Francisco has the oldest and largest Chinatown in the United States and is home to the largest population of Chinese outside of China. The New Year’s celebration is a continuation of a tradition in Chinatown that had been part of the neighborhood since the 1860s, the Gold Rush days.

If you were born in 1917, 1929, 1941, 1953, 1965, 1977, 1989, 2001, 2013, you were born under the sign of the Snake.

Like the houses of the zodiac in Western astrology, the animals of Chinese astrology are thought by many to dictate personality traits or even to impact world events in any year they rule.Snake and those born under compatible signs benefit from good fortune during a Snake year.

013 Prediction for Snake

Snake can expect good fortune in relationships and look forward to a time when they personally or professionally shine. It will be a year when Snake can easily overcome recent setbacks or obstacles experienced in 2012. Even though Snake may not have the income desired in the first half year, financial fortune comes in the second half year.

Snake Characteristics

Self-reliant Snake's characteristics are complex. Snakes don't like to ask others for advice and some see them as cold and calculating – not so, they are just being careful.They need to plan every detail before embarking on an objective. Snake has excellent communications skills, but they are creatures of few words. Quiet and unassuming, they prefer to work alone and are more often in the spotlight for real and lasting accomplishments than for attempts at garnering attention. Actually, they can be a lot of fun when they want to be and they exude a charismatic confidence that is quite sexy.They have the ability to shed adversity like a second skin, and their recuperative powers are legendary.

The list of famous Snakes includes: Oprah Winfrey, John F. Kennedy, Abraham Lincoln, Martin Luther King, Jr., Pablo Picasso, Bob Dylan, James Joyce, Martha Stewart, Kanye West, Pierce Brosnan, Charlie Sheen, Courtney Love, Howard Stern, and Edgar Allan Poe.

Source:

• BY: BARBARA SCHNEIDER
• 

Many Renters Don’t Get Security Deposits Back

Twenty-six percent of renters are denied in getting their security deposits back when they move out, a Rent.com survey finds of 1,000 renters.  Landlords cite the biggest reason for withholding security deposits was a tenant who moved out too early. Indeed, 44 percent of the renters surveyed between the ages of 18 and 24 said they broke the lease agreement early and that’s why they didn’t get their security deposit returned. Nine percent of women and 3 percent of men surveyed say they lost their security deposits due to pet damage. 

Thirty-six percent of the survey respondents said that their landlords failed to offer an explanation why their security deposits were being withheld. In some places, that’s illegal. For example, in New York, landlords are required to return security deposits -- excluding any legal deductions -- within a certain time frame. 

Landlord.com offers up a list of security deposit laws for all 50 states. 

Source: “Security Deposit Refund: 1 in 4 Renters Don't Get Their Money Back, Survey Finds,” AOL Real Estate (Jan. 29, 2013)

*No need for this to be an issue!  Become a homeowner today, contact Laura Key, Real Estate Agent.  Homeownership never looked so GOOD!

www.KeyCaliforniaHomes.com   ●  Laura.A.Key@gmail.com

Allen Iverson Loses Atlanta Mansion in Foreclosure Auction, According to Report

Just one week after declining an invitation to join the Dallas Mavericks' D-League affiliate as he continues his thus-far unsuccessful pursuit of a return to the NBA and days after a family court judge lambasted his parenting during divorce proceedings, former All-NBA guard Allen Iverson has now reportedly lost his Atlanta mansion to foreclosure. The grim news comes, as it so often does, from TMZ:

Iverson allegedly defaulted on a $1.2 million mortgage which sent the $4.5 million home into foreclosure. He briefly fought off an auction ... but ultimately, he couldn't stop it.

Sources close to the sale tell TMZ ... Iverson's bank purchased the mansion [Tuesday] for $2.5 million.

This isn't the first time a mansion owned by Iverson has gone into foreclosure. Back in March 2011, the six-bedroom, nine-bathroom, 6,848-square-foot mansion he'd purchased in Cherry Hills, Colo., while a member of the Denver Nuggets "slip[ped] into foreclosure" after Iverson quit paying a mortgage on which he still reportedly owed $2,572,914. Iverson also met with some strife when parting with the six-bedroom mansion in Villanova, Pa., he'd owned while a member of the Philadelphia 76ers; it sat on the market for three years after he listed it at $6.3 million before eventually selling for just $2.6 million in 2010.

Iverson's personal finances have long been a matter of inquiry — since his last NBA stint with the 76ers ended in February 2010, there have been reports that, despite earning more than $154 million in salary over the course of his 14-year NBA career, plus plenty more in endorsements, the 2000-01 NBA Most Valuable Player is broke.

Those reports picked up steam last January, when a Georgia judge garnished Iverson's wages to settle a reported six-figure jewelry bill, leading to fast-money/publicity-grab offers for the former 76ers, Nuggets, Detroit Pistons and Memphis Grizzlies guard to play basketball in Puerto Rico and indoor soccer in Rochester, N.Y. They waned shortly thereafter, thanks to the revelation that Iverson actually has tens of millions stashed away in a trust, the lion's share of which he can't access until age 55 (Iverson turns 38 in June), and that he receives a $1 million annual stipend with which he can do as he pleases.

This latest round of reports, however, indicates that in spite of the funds he has available and in reserve, Iverson wasn't able to stay above water with the bank. His continued real-estate-centric turmoil, however, pales in comparison to the strife detailed in the final decree of a messy, long-term divorce between Iverson and his ex-wife Tawanna, which resulted in Iverson reportedly agreeing to a$3 million settlement late last month. The details on the decree:

TMZ.com reported that the [Atlanta family court] judge, who was not named by the website, blasted Iverson, who was married to Tawanna for 11 years. The couple have five children together.

The website, citing the couple's final divorce [decree], reported that the judge wrote, "[Iverson] does not know how to manage the children; has little interest in learning to manage the children and has actually, at times, been a hindrance to their spiritual and emotional growth and development.

"For example, he has refused to attend to an obvious and serious alcohol problem, which has caused him to do inappropriate things in the presence of the children while impaired.

"He has left the children alone without supervision. He has left his young daughters in a hotel room with men who are unknown to the mother."

According to TMZ, the judge ordered Allen Iverson to see a psychiatrist, and to attend Alcoholics Anonymous meetings for a year.

The website also reported that the judge awarded Tawanna custody of the children and that Allen can visit them under certain conditions.

Among them, according to the report, is that he can't drink alcohol within 24 hours of visiting.

All of this, obviously, is awful. As much as I once wanted to see Iverson return to the league on the off chance that he could, just for a moment, showcase the same singular spark of brilliance that made him so endlessly watchable and inspiring on the court during his time at Georgetown, in Philly and (to a lesser extent) in Denver, I've come to accept that his on-court life, at this stage, is likely over; now I only hope he can find some stability and balance in his off-court life. Continually reading and writing about his unsuccessful attempts thus far just hurts my heart.

Source: Yahoo Sports - By Dan Devine | Ball Don't Lie

Call Laura Key with all your foreclosure and short sale questions! 310.866.8422 www.KeyCaliforniaHomes.com

Beginning Your Home Search

Once you've determined that you're ready to buy, it's time to begin thinking about where you want to look. You'll find there are many questions you must answer about the type of house you want to purchase. For example, are you interested in an older home or a new one? How big of a home do you need? Would you like to move closer to certain major roads or freeways? Your REALTOR® can answer many questions about the homes and communities you're considering, and in the meantime, there are myriad resources available for you to begin your research. Location Is Everything

Do you want to live in a particular city or neighborhood? If you're a parent, you're probably considering school districts and other child-friendly options like the proximity to parks. If you're relocating to an unfamiliar area, you can contact the city or county government for information about the community. It's a good idea to investiage crime statistics per neighborhood when you're narrowing down the areas of your home search.

Or perhaps location is the reason why you're buying in the first place -- to move closer to your work, your spouse's work or your extended family, or to live within a particular school district's zone. As you're probably aware, the location of your home can have a dramatic effect on its price.

Size Matters

You may have experienced growing pains in your current home, which prompted you to pursue buying a new abode. Or you're entering a self-employed profession and need a home office. Consider all your space requirements before you start searching for a new home. There's no reason to waste time looking at two-bedroom condos when you really need a four-bedroom house.

Locating Listings

Once you've narrowed down the specifics of your ideal home, where do you find listings? Your REALTOR® has access to thousands of listings in your area through the Multiple Listings Service (MLS). He or she will help you find available homes that meet your criteria. Or, you can start your home search by calling Laura Key at 310.866.8422

Source: CAR (California Association of Realtors)

www.KeyCaliforniaHomes.com  ● Laura.A.Key@gmail.com