6 Easy Tips to Cut Back on Utility Costs

With rising utility costs and overall living expenses, people are looking for creative ideas on how to reduce spending. One of the major areas that can have a significant impact on your bottom line, long-term, is with heating, cooling and electric bills.

It's important to take strides whenever possible to help alleviate this financial burden.  I've devised a checklist of 6 items for you to review and determine where you can start cutting back expenses and improving efficiency in your home:

1.     Maintain your furnace and air conditioning units: This is one area homeowners tend to disregard. Yet, just like conducting routine repairs on your automobiles; it is just as important to keep up with these items as well.  It’s only necessary once per year!

In fact, the amount of money you can save in the long run by avoiding more significant maintenance hassles or losing a unit well before it’s time makes this step well worth it.  Additionally, you will maintain a higher efficiency and experience cleaner air too.

2.     Standby power: Did you know that many items around your house such as your TV, entertainment system, Wii, computer, microwave, etc. are constantly drawing electricity even when they are not powered on? 

In fact, items throughout your house such as these typically can account for approximately 10% of your total energy consumption!  Simply by having certain items plugged into a power cord that can be switched off when not in use may have a significant impact.

3.     Consider investing in a programmable thermostat: Installing one can be fairly inexpensive and is extremely useful for families that are always on the go!  Simply set the meter to fluctuate a few degrees during key timeframes, and the savings will really start to add up.

4.     Decrease your water heater’s temperature: By switching the temperature down to the lowest setting can impact your energy bills from 5-10%.  You will still have plenty of hot water and can enjoy some extra cost savings as well.

5.    Change you appliance settings: Many dishwashers, washers, and dryers have advanced settings that could also be increasing your utility bills. Consider turning off those extra bells and whistles such as the heated dry, automatic sensor settings, or wrinkle shield.  Also, you can wash with cold water and only do larger loads when necessary.

6.     Dimmer switches and motion detectors: Another tip is to replace your current fixtures or switches with these energy efficient alternatives.  You will be able to consume far less energy and your family will only use light when necessary.  Even if you don't install these items, get in the habit of shutting off the lights in any room that isn't occupied.

      By following these 6 simple steps, you will begin to save more money and consume fewer resourses. There are so may other ways that you can improve energy efficiency as well, so I encourage you to take the time to research what may be beneficial for you and your family. Be sure to bookmark this page for regular updates and other free real estate related tips.

How To Prepare Your Home For The Fall Season

It’s that time again!  The crisp cool air, countless beautiful shades of colors, and plenty of enjoyable evenings around the bonfire await us.  Yet, amidst all these great things, there are certain preparations that you need to be aware of when getting ready for the fall season as well.

As a homeowner, it’s important that you take certain steps in order to protect your home’s condition and also your wallet.  So here are 5 key areas that you ought to review over the upcoming weeks to be fully equipped for what lies ahead:

1. Routine furnace maintenance: Don’t hesitate to schedule an appointment for your furnace.  While trying to juggle work obligations, kids, school, chores, and much more, this is one of those areas that can easily be overlooked.

But a couple hundred dollars now is much more reasonable than a few thousand later.  Keep your furnace in good working condition and make sure you’re prepared for the colder temperatures.

2. Clean off your roof: As the leaves begin to fall, it’s important that you protect your roof from unnecessary moisture.  Take the time to clean off any debris that builds up before the winter months and ensure that your roof is patched from any basic wear and tear. 

This will be especially vital when winter snow begins to accumulate.  Also, clear out your gutters and scan the area around your chimney as well.  If there seems to be any places where water could leak in than it may be time to call a professional.

3. Prepare Your Pipes: First of all, don’t forget to unscrew any hoses or nozzles attached to the outside faucets.  For those who are using underground sprinklers, take the time to push out any remaining water from the summer.  Also, cleaning your septic system may be beneficial before the temperatures hit freezing.

4. Basic Crack Repair & Landscape: For those who have minor sidewalk or concrete damage, now may be a good time to fill some of those areas with something like Quikrete to avoid further damage.  This can help to keep water and moisture out, especially once snow hits.  Also, make sure to clear out the areas around your house where leaves have fallen, and cut back any other trees or shrubbery.

5. Insulation & Energy Efficiency: This can be a huge money waster!  For those who are rarely at home and constantly on the run, you may want to consider investing in a programmable thermostat.  This can save you hundreds of dollars alone by cutting back on unnecessary energy costs.  Especially with the rise in most utilities costs, this should certainly be considered.

Also, are there areas around your windows, doors or elsewhere that may be allowing draughts to enter your home?  Consider either having these places sealed or maybe investing in some new materials.  Depending on how long you plan to live at your current residence, the cost could certainly be justified.

Hopefully you have found these 5 tips to be helpful & informative. If you need some assistance from someone in my rolodex that can assist you in any of these items, please feel free to email me so I can send them your way.

Foreclosure Property Purchasing Pitfalls

Due to the mortgage crisis our country has faced over the last several years, there are continually more and more foreclosure properties that are being put up for sale everywhere you turn.  Of course, this can be very tempting for homebuyers as people can sometimes get properties for 30% or even less on the dollar.

However, if you are considering a foreclosure property for your next purchase, there are some common pitfalls that you will need to avoid along the way to protect yourself and your future asset. 

Here are some areas to be aware of before making any serious offers:

1.     Avoid Making Emotional Offers: When you are planning on putting a bid down on a property, you need to be extremely confident with the home’s current condition, its true market value, and what will be needed to fully restore the property. 

Too many buyers will think that they found a slamming deal and fear that they will lose the home to another bidder.  So instead of taking the time to truly do their homework and complete the proper inspections and analysis, they can end up locking up a property for more than it’s actually worth.

2.    Estimate Neighborhood Values: Consider what other comparable properties are selling for and talk to a real estate professional who has a working knowledge of the area.  In fact, it’s a wise decision to thoroughly review these questions and any other recommendations your Realtor may make:

• Is this neighborhood a desirable location and how are crime rates?
• What schools would be available for my kids or future buyers?
• Were there any other foreclosures or investor sales that could negatively affect the future value of my home?
• How long do I plan on living there and how could that affect things?
• What type of appreciation should I expect?

3.    Get Preapproved: Before you even start looking at homes, you must get preapproved on a mortgage in order to know exactly what you can afford.  Sadly, many buyers can miss out on some phenomenal deals or spend hours of wasted time because they avoid this step.  Show lenders that you are a serious buyer and have your financing in place!

4.     Get Professional Help: Not only should you seek the expertise and of an experienced Realtor, but you may also need guidance from a real estate attorney or financial consultant as well.  Each professional can ensure that you are making the right choices throughout the process and can protect you from any issues you may come across along the way.

Remember that there is a lot more than meets the eye when you are trying to buy a foreclosure property.  Negotiating with the banks, filling out paperwork properly, and undergoing all the necessary inspections can be a very detailed and tedious procedure. 

I encourage you to find someone you can trust that has years of experience assisting other clients buying foreclosures for their next home or investment property. 

Happy home and investment hunting!

You've heard the saying "You never get a second chance to make a great first impression"?  If you are selling your home, or will be shortly, you need to take that little saying to heart. Let me share with you my top staging mistakes to avoid in hopes that you'll apply what you've read today and be on your way to a successful sale!

Staging Mistake #1:  BAD MLS Photos

Did you know that over 85% of buyers are looking on the Internet first to find a home? First Impressions start here folks! How do your photos look?  I am amazed when working with sellers that have had their home on the market with another Realtor®  that they hadn’t even bothered to take a look at their pictures online, or that their Realtor®  didn’t even show them! I think it didn't even occur to them that this is a critical marketing tool that pulls those buyers in.

I see poor photos all the time. Blurry. Tilted. Dark. Cluttered. Busy. Boring. The worst is only seeing a small portion of the room. Buyer’s don’t care what the sellers BED looks like...what about the room? They want to see everything in the room in one shot.

GREAT PHOTOS are a must! Professional Photography makes all the difference in capturing buyers attention and getting them in the door. Great photos capture ALL of the room, have good color and clarity and show interesting angles of each room. Make sure YOU have at least 15 photos advertising YOUR home on the Internet/MLS.  Buyer's really want to see as much of the home as possible.

Staging Mistake #2:  Disappointing Curb Appeal

When selling your home, don't disappoint your buyer!  When they pull up to the front of your home, they carry with them their hopes and dreams that this home could be the one!  Shouldn't you do whatever you can to impress these buyers so they will want to come in for a closer look?

It's amazing how a freshly cut green lawn, trimmed trees, new mulch, shiny new fixtures, seasonal potted plants, and a fresh paint job on the front door can sing "Welcome Home" to your potential buyers. Doing these basics make all the difference! And don't forget a new “Welcome” mat and doorbell too. Believe it or not, these items get overlooked all the time.

 

Staging Mistake #3:  A Dirty, Cluttered House

 “The way you live in your home and the way you sell your home are two completely different things.”  Sellers can throw up their hands and say, "But I have to still live here!"  so remember...you're house is not YOUR home anymore.  

When you put your home on the market, it became a PRODUCT. In order to sell a product, it has to be packaged beautifully so it sells! Buyers expect to see an immaculate home with no visible signs of dirt, dust or hair.

It's no different when you go on vacation and you've decided to stay at a very nice hotel. You expect that when you walk into your room that the bed is made to perfection, everything is sparkling clean and they've even left you a little something that says "Welcome", right?  What if you walked into the bathroom and you spotted hair in the sink and you couldn't tell if the towels were used or not?  We’d be calling the front desk and demanding a new room!  

Buyers are really no different. Dazzle them with a sparkling clean and clutter free home to buy!  Clear away all your clutter so that the selling features in each room are highlighted and your home becomes the STAR, not the people that currently live there.

Staging Mistake #4:  Making Your Buyers Feel Like A Guest

When we walk into someone else's home and look around, we see their family photos and decor, and it is apparent that this is "their" home. Their personality is in every room and even if you squeezed your eyes shut and tried really hard to imagine living there, you just couldn't do it.  Trying to imagine your stuff over all their stuff is just impossible to do. This is how potential buyers feel when they walk into a home that is full of family photos and taste specfic decor. They immediately feel like a GUEST in your home and this is one mistake you don't want to make!

That’s why it is so important to pack away your family photos and neutralize each room to appeal to a broad range of buyers. This also includes collections, religious items, personal awards and trophies, your family calendar and those fifty million magnets, invitations and "TO DO" lists from the refrigerator.

Don't forget your taste specfic decor as well. You may LOVE your kitchen bright yellow because it goes so well with your sunflower collection but it has got to be neutralized so buyers can SEE your kitchen with its 42" cabinets and corian countertops. They need to be able to visualize themselves cooking and entertaining in there!  

Staging Mistake #5:  Decor That Fails To Connect With Buyers

A homeowner has lived in their home for the past 15 years and the last time it was decorated was when they first moved in 1994. Outdated furniture and dried flower arrangements. Dated decor, empty rooms and random furniture pieces scattered throughout can make any house, no matter how nice the selling features, feel TIRED, DATED and OLD.

It’s amazing what a few key decorative items can do for a room too. You want buyers to have that same reaction...their eyes lighting up as they view the room… becoming more impressed as they tour the home.

One of the biggest misconceptions about staging is that you need tons of new furniture and decorative items to make your house look like a model home.  You can relax now when I tell you that it isn't true.

If you are living in your home while it is on the market, work with what you have, plus maybe a few new items with a minimum investment. That’s all you need. 

Consider working with a Professional Stager. They are experts at working with what you have using their creativity to re-purpose it and sometimes blending it with a few newer items. This gives older furniture and decor a fresh new look and feel. A few key accessories can make all the difference in highlighting a selling feature and breathing new life into a room!   Slipcovers, new pillows that pop color, updated lamps, a rug or some inexpensive window panels might be all that is needed to turn unimpressive decor into a fabulous new room that your buyers will love and connect to!

If your house is vacant or you have empty rooms because you never got around to buying that dining or living room set, you will want to consider options like renting furniture. Most Professional Stagers carry beautiful furnishings you can rent and will work within your budget.

Stage For A Successful Sale
Selling your home and getting it ready can be a pretty overwhelming task. That is stressful in and of itself. Did you know that working with a Professional Home Stager can take that stress away and let you focus on the other important things about your move like finding YOUR dream home?  They can create a staging plan for you that is unique to your property. You can have complete confidence in knowing that you will not be making any major staging mistakes with a Stager on your team while you sell your home!

If you would like a recommendation for staging your home,

please feel free to contact me: rhonda@rhondasrealestate.com.

3 Sources of Financing for Real Estate Investors

One of the most important aspects to investing in real estate is how to finance your property.  Although all other factors may look favorable, having little to no access to good terms could be a deal breaker.  So before doing anything else, it is important that you begin to line up some potential sources and explore what options are available to you.

There are various ways to start investing in homes, and each source has its own set of strengths and weaknesses.  Your exit strategy, the condition of the property and various other factors will play a part in how you may be able to finance each specific investment.  So let’s explore 3 of these top sources:

Traditional Financing

If one of your strategies is to buy, hold and rent, then using banks may be a safe bet for some of your investment properties.  This is a source that can be considered up front when a property is in considerably good condition.  Most banks will not support the financing of a fixer upper until repairs are completed, due to the amount of risk involved.

Therefore, you may need to spend a little extra time searching for those diamonds in the rough.  Traditional financing is extremely favorable, because you can usually get some of the best interest rates, terms and closing costs when approved.  The process certainly will take longer than using cash buyers or hard money lending for example, but it can be worth the wait.

Hard Money Lenders

For those who will either be flipping a property or would need to conduct significant repairs in order to refinance may want to consider building a relationship with a hard money lender.  It is advisable to shop around to at least 2 or 3 in your area when possible to see which terms you find to be most favorable.

These loans will come with much higher interest rates (typically 12% or more), points and some type of balloon payment near the end of the agreement.  Hard money may be offered for 6 months to a year while the repairs are made, until the home is ready to be sold or refinanced for better rates. 

It is important that investors are prepared to either rent out or lease-to-own their property if perhaps the home is unable to sell on the market quickly enough.  Also, newbie investors beware!  Flipping houses can be more difficult that it may seem, and you must have a solid plan in place so that you are not forced into a tight financial situation.

Private Lending

Before ever considering this option, it is strongly encouraged that you talk with a local attorney that specializes in SEC policies.  Laws can vary on a state by state basis, so it is important that you have a good understanding of those guidelines before building any relationships with private lenders.

However, when done correctly this can be a powerful resource available to you, that doesn’t require credit checks or adhering to all the strict guidelines enforced on mortgage companies.  Private lenders can be nearly anyone who has access to the necessary funds for your purchase (i.e. your doctor, friends, family, or investor club).

Typically private lenders can receive anywhere from around 9% and up for their investment, which is secured by the property and can be a great investment for them based on today’s rates.  Loans can be negotiated on a property by property basis so that each investor only funds the deals that they are comfortable with.

With these 3 examples alone, you may have all that is needed to start funding real estate deals.  So now you can take action and begin building the relationships and networks of lenders that you will need in order to start investing.

Are you in need of referrals?  If you need a list of preferred lenders that I  can recommend for your investment business, please feel free to send me an email: rhonda@rhondasrealestate.com.

7 Tax Benefits Of Owning Real Estate

There are so many advantages to purchasing your own home.  For instance, it offers the pride of ownership, provides an overall sense of accomplishment, and is a place where you and your family will build many lasting memories.  Among others, real estate opens the door to many tax benefits as well.  Here are some of the ways that owning a home can help to create a tax shelter.

1. Mortgage Interest & Points: If mortgage debt is $1,000,000 or less, married couples filing jointly can deduct the full amount of their interest.  Otherwise, those filing separately can write off up to $500,000 worth.  This also includes second homes or adjacent land to your main residence.  Points on either a home purchase or refinance can also be deducted, but these must be amortized for the latter.

2. Property Tax Deductions: All state and local taxes regardless of how many properties you own can be deducted, up to the alternative minimum tax required by law.  Funds that are held in escrow accounts can only be written off once the taxes are paid.

3. Private Mortgage Insurance (PMI): A portion of PMI can also be deducted if household income is less than $109,000 per year or $54,500 for those filing separately.

4. Interest On Home Equity Loans: As long as you have the necessary equity in your home to secure the required debt, you can write off the interest on a loan of up to $100,000 for those who are married filing jointly, or $50,000 when submitted separately.

5. Working From Home: That’s right!  Even those who use a portion of their home for work purposes are able to deduct a percentage of the home’s depreciation, utility/maintenance costs and insurance.  This is one you definitely want to review with your tax professional to make sure you are getting the maximum available to you.

6. Home Maintenance Interest: This is a tricky one, as you can write off the interest on any capital improvements made to your home, which will increase value and/or prolong the life of your home.  This includes certain types of restorations or additions made to the home with no cap on the investment.  However, you will not be able to deduct minor patching or cosmetics made to the home.

7. Capital Gains/Selling Costs: As long as you have lived in your primary residence for at least 2 of the last 5 years, you are permitted to sell your property for up to $500,000 of profit for married couples filing jointly, or $250,000 for singles with absolutely no tax penalties.  However, if you end up selling for an amount above either threshold, you can subtract the amount of closing/selling costs that you incurred from your total gain.  Those who fall outside of the 2 out of 5 year limitation may be granted an exception given certain unique circumstances such as health problems, relocating for work or other such occurrences.

Therefore, it pays to consider the benefits of homeownership and to discuss with your tax professional what you may qualify for.  Especially for those who are entertaining the thought of buying instead of renting, it is very important to consider the long-term impact that owning real estate can have on your overall financial future.  There are advantages whether you are buying for yourself or investing in properties for additional income.  For more information to start exploring what options may be available for you, feel free to contact me...I'd love the opportunity to assist you!