Northwest Florida Real Estate Blog

Tax Advantages of Home Ownership

Ellen Marsh — Wed, 22 Jul 2009 21:11:00 GMT

Planning to buy a house? It's one of the smartest decisions you can make-and not just because you'll be creating a wonderful home in the location of your choice. It's because homeownership has many tax benefits as well.

Homeowners may receive benefits from Uncle Sam when they purchase or sell a home, and tax advantages may even accrue during the period you own a home. That's why many people consider homeownership to be the ultimate tax shelter.

Here are just three of the possible tax-saving opportunities for homeowners:

Mortgage interest deductions. Interest paid on a mortgage on a first-or even second-home is deductible for those who itemize. That reduces the cost of ownership. For example, someone who pays $10,000 in mortgage interest and who falls in the 25% tax bracket could save up to $2,500 in taxes each year. Generally, all the interest paid on a mortgage is deductible, unless the loan is more than $1 million.
Real estate tax deductions. Property taxes based on the assessed value of your home and paid to a state or local government can be deducted-whether you pay directly or through an escrow account. Your bank will provide you with a statement of the actual amount it paid. Also, remember to look at your settlement statement if you recently purchased a home. Any prepaid taxes for which you reimbursed the seller are deductible as well.
Capital gain exclusion for the sale of a home. Under current law, if you are selling your principal residence, you can exclude from taxation any profits up to $500,000 for married taxpayers or $250,000 for single taxpayers.
All of this combined with the current first-time home buyer tax credit makes owning a home a really smart move. Just remember that to qualify for the first-time home buyer tax credit you have to close by November 30, 2009.

Energy Bills Got You Down? Cut 'Em

Ellen Marsh — Wed, 22 Jul 2009 21:02:00 GMT

According to the U.S. Department of Energy, a typical American family spends about $1,900 a year on home utility bills. But you can save energy-and money-with these tips to make your home more energy-efficient.

Get a home energy survey from your local utility. Many will do a free analysis of your home and provide specific ways to save money on your utility bill.
Replace old furnaces and air conditioners with newer ones that are more energy efficient.
Install programmable thermostats.
Swap light bulbs for compact fluorescent bulbs bearing the Energy Star label.
Air dry dishes.
Turn off lights and ceiling fans when you leave a room.
Turn off computers and TVs when they are not being used.
Plug home electronic devices into power strips, and turn them off when the equipment is not being used. These devices often have a "standby" mode that uses power even when they are off.
Lower the thermostat on your hot water heater to 120° F.
Install a low-flow head on your shower. Opt for showers, not baths.
Only run the washer or dishwasher with full loads.
Purchase appliances that have the Energy Star label.

These tips can help you lower your energy use up to 25 percent, according to the DOE. That will not only save you money now, but reduced utility bills could also help you command a higher price for your home when you sell.

Man, it's Hot!

Ellen Marsh — Fri, 19 Jun 2009 19:26:00 GMT

That title sums it up! We are having some of the hottest weather on record this early in the season. I would expect upper 90's and 100's in late July and August, but the middle of June? No way! We haven't even reached the official "first day of summer" yet (June 21). Having lived here for...many decades, uh huh....this has been unusual. I can only wonder what the rest of the summer will be like. I imagine the opposite would be what Minnesota is like in February. Brrrrrrrr. Wow, that thought sure did feel good! But after all this is Florida, nicknamed "The Sunshine State" for a reason. I think I'm going to sip some cold lemonade and resume my thoughts of Minnesota.

Open House in Marianna on Sunday

Ellen Marsh — Mon, 15 Jun 2009 21:44:00 GMT

Marianna, Jackson County - We invite everyone to visit our open house at 2929 Wildwood Circle on June 28 from 2:00 AM to 4:00 AM.

We will have ice cold water to drink and chocolate chip cookies. Hope to see you there!

Property information

Mortgage Anyone?

Ellen Marsh — Mon, 18 May 2009 16:26:00 GMT

If you are planning to buy a home or refinance your mortgage, you might be a bit apprehensive about the mortgage application process. Media reports on the credit crisis and on how banks have tightened their purse strings can make the process seem a bit daunting.

While it’s true that mortgage applicants face challenges not present at the height of the real estate boom, there is some good news you may not be aware of: 30-year fixed rate mortgages are now in the 5% range, or below… some of the lowest rates in over 30 years. That combined with the tax credits that I wrote about earlier make the news very promising.

There are things you can do now to ease the application process and increase the odds of finding the right mortgage. They are:

Improve your credit. Standards have normalized and you’ll need a good FICO score to obtain the best rates.
Make the largest down payment you can afford, and don’t forget about the closing costs.
Gather necessary paperwork to verify employment and other income as well as any assets.
Be an educated consumer. Learn about the various types of mortgages, and for adjustable rate loans, consider the impact if the adjustment reaches its peak.
Pay down debts. The fewer debts you have, the better your application looks to the lender. Mortgage lenders prefer borrowers who aren’t overleveraged.
Once you make an application, respond quickly and fully to any requests you receive from the lender for additional information.

Most importantly, talk to me, your REALTOR®, so that I can connect you with a local mortgage specialist.

House Hunters International

Ellen Marsh — Mon, 20 Apr 2009 18:34:00 GMT

I love to watch the House Hunters International show on HGTV. You know the one, where a couple from the USA wants to find their perfect second home in some country far away. It is interesting to watch them look at all of their possibilities and I have a good time, as I'm sure you do, too, trying to guess which home they will choose.

One common thread that always runs through the International shows is that the couple is always looking for a place that is unlike the metropolitan area that they are from. They are looking for a quiet retreat far away from the hustle and bustle of big city life.

As I watched this the other night I had the thought, "why would they have to leave the good, old USA to find such a place when it is right here under their noses". This area of Northwest Florida is the perfect getaway for those looking for a slower pace. It is in effect one of the last naturally-occurring pristine, unspoiled areas in Florida. If you are a hunter you will find abundant wildlife. If you are a fisherman you will find lakes, rivers, and boat ramps. If you are into horses you will find equestrian trails and parks. If you just like the outdoors you will find state parks, camping sites, ball fields, and community centers. If you like the ocean and all that is to be enjoyed there you are only a hour away. With the completion of the new Panama City/Bay County International Airport in May of 2010 travel to and from here will become a breeze. Oh, I forgot to mention eating. If you like to eat fresh seafood there are so many delicious "mom & pop" restaurants that you could spend all of your time just doing that.

What are you waiting for? Don't leave the "country"! Come on down to "God's Country". Your home away from home awaits you here.

Sell Your Home Faster With An Inspection

Ellen Marsh — Tue, 14 Apr 2009 17:39:00 GMT

What can make your home more attractive to buyers with more choices than ever before? A pre-listing home inspection might do just that. It might help your home sell more quickly and for more money. Imagine catching the eye of a prospective buyer by advertising the fact that your home has already been inspected and that there are no surprises. A home that has been well maintained may give buyers more confidence that are no underlying issues and creates the impression that the seller is acting in good faith by conveying the home in good condition.

A pre-listing inspection will not only alert sellers to potential problems with the house, but sellers who nip problems in the bud and undertake repairs immediately will also be eliminating potential bargaining chips. This can put more money in the sellers' pocket.

Most contracts contain inspection contingencies that allow buyers to back out if issues arise. By providing a pre-inspection report, a seller might even be able to eliminate these contingencies, thereby saving time and reducing the chances that the buyer will back out.

How can you find a qualified home inspector? The American Society of Home Inspectors provides referrals to certified inspectore via the "Find an Inspector" tab found on its web site, at www.ASHI.org or simply ask me for a recommendation. I can provide you with the names of several licensed inspectors in our area.

We'll Be Back

Ellen Marsh — Tue, 17 Mar 2009 16:18:00 GMT

Happy St. Patrick's Day!

Just wanted to take a few minutes to share the fun that was had this past Saturday in downtown Marianna. The festival and bedrace were a huge success. Lots of folks turned out even though rain threatened. The bedrace was loads of fun with the REALTORS coming in second place and winning the spirit trophy. We had a great group of guys who pushed the bed and were only slightly behind the Firemen at the finish line (the firemen were obviously in better shape from fighting all those fires). Our bed looked terrific with our REALTOR logo proudly displayed and everyone dressed in their REALTOR shirt. We sold hotdog, hamburgers, and sausage dogs from our booth along with glow necklaces and glow teeth. A great time was had by all and we look forward to next year. Look out firemen.....as a famous actor said, "We'll be back"!

A Little St. Patrick's Day Fun

Ellen Marsh — Fri, 13 Mar 2009 18:17:00 GMT

I know tomorrow is not St. Patrick's Day (March 17th), but it is close. If you are looking for something to do in downtown Marianna come on out between 3PM and 9PM on Saturday, March 14th and watch a bunch of crazy REALTORS in a bed race. There will be lots of other teams racing beds and trying to win bragging rights. The corner of Madison & Market Street will be the center of the action. There will also be live entertainment, food, arts & crafts and lots of green Irish fun! If you get hungry the same bunch of REALTORS will be selling hotdogs, hamburgers and drinks. We'll even have fake tatoos for the youngsters and youngsters at heart, too. So, come on out, bring the family and be sure to stop by our booth and say hello.

Are You Superstitious?

Ellen Marsh — Fri, 13 Mar 2009 18:05:00 GMT

Friday the 13th usually is seen as a day to beware, a day to be cautious, a day full of superstition. I have had people who did not want to close on a home or enter into a contract on a home on Friday the 13th. If you have these feelings that is understandable. However, if you are afraid to buy a home right now for any other reason you may want to rethink that decision. Interest rates won't stay low forever and they have been low for quite a long time now. There is a tax refund coming your way if you are a first time home buyer ( I wrote an entire post on this previously). The deals at present are just phenomenal. You will look back in 10 years and kick yourself in the pants for missing this opportunity. So, if you are not buying a home today, Friday the 13th, I understand, but tomorrow on the 14th there is nothing to be afraid of. Go for it! You'll be glad you did.

More Good News For First-Timers

Ellen Marsh — Tue, 24 Feb 2009 20:04:00 GMT

As you may have heard, substantial improvements in the temporary First-Time Homebuyer Tax Credit were signed into law on February 17. This is to provide a housing stimulus for first-time home purchases that occur between January 1, 2009 and December 1, 2009. This is more good news for first-time homebuyers because the tax credit maximum has been increased from $7500 to $8000 and best of all it does not need to be repaid unless you resell your home within 3 years.

Here are the significant points:

Credit maximum was increased from $7500 to $8000. The credit is calculated as 10% of the purchase price. For example: If the puchase price is $80,000 the credit is $8000.
There is no longer a repayment requirement, provided the homebuyer does not resell the home for 3 years.
Only first-time homebuyers are eligible. In this case, a first-time homebuyer is defined as someone who has not owned a primary home at any time during the three years prior to purchase, but who may have done so prior to that time. Although certain income limits do apply, the amount of the credit is the same for all taxpayers, married or single.
To be eligible for the full tax credit, the homebuyer can have an annual adjusted gross income of no more than $75,000 ($150,000 on a joint return). A homebuyer with an annual adjusted gross income above that level and up to $95,000 ($170,000 on a joint return) is eligible for a reduced tax credit.
The tax credit can be claimed on one's individual or joint tax return for the purchase of any single family home between January 1, 2009 and December 1, 2009. It can be claimed on a 2008 tax return (to be filed by April 15, 2009), an amended 2008 tax return, or a 2009 tax return. You should always consult a professional tax advisor for exact tax calculations and timing.

So, first-timers what are you waiting for? Prices are right. Tax credits are in your favor. Get out there and buy!

Time Is Running Out

Ellen Marsh — Tue, 10 Feb 2009 18:19:00 GMT

Did you buy a home in Florida in 2008 and move in before December 31? If so, have you remembered to file for your homestead exemption? You only have until March 1 to do so. Failure to make application by March 1 constitutes a waiver of the exemption privlege.

How much is the exemption?

$25,000 for your primary residence

$25,000 additional exemption for persons 65+

$500 additional for widows

$500 additional for permanently disabled

$500 additional for blindness

However, you only get these exemptions if you file. So go in person, call or visit your property appraiser's website now before you forget because time is running out.

Still The One

Ellen Marsh — Tue, 06 Jan 2009 17:35:00 GMT

Remember the song, "Still The One" by Orleans?

The last stanza says,

"You are still the one that makes me shout
Still the one that I dream about
We're still having fun, and you're still the one... "

This makes me think real estate. Why? Because over the long-term real estate has always appreciated in value. It has always been one of the most solid investments in America since people always have and always will need a place to live. According to the National Association of Realtors' chief economist, Lawrence Yun, "If a buyer were to put down $10,000 for a down payment on a typically priced home in the United States at a typical appreciation rate of 5%...(he/she) would see a return of $100,300 after 10 years. The same $10,000 invested in the stock market appreciating 10% annually would result in $23,600. Historically, home ownership pays off well for people who keep their homes at least 7-10 years. If you are looking for a place to park your money or if you are just looking for a place to live why not consider real estate? The inventory is great, the prices are low and so are mortgage rates to qualified buyers. If you are not a qualified buyer you should not even consider buying a home. If you are not sure whether you are a qualified buyer or not please speak with a mortgage professional before you decide to go house hunting. There are some great deals out there right now. I've heard people says, "I'm waiting for the market to reach the bottom." My response is, "How do you know the bottom has been reached until things start going up?" Once inventory is depleted, prices are up and mortgage rates rise you will know that there was a bottom, but then it will be too late. The savvy buyers are buying right now because they know that real estate is Still The One.

Christmas in Northwest Florida

Ellen Marsh — Wed, 03 Dec 2008 16:22:00 GMT

Do you live in a place where it is so cold you dread getting out of your house in the winter? Are you tired of shoveling snow just to be able to get your car out of your driveway? Have you had enough of the slippery roads and other hazards that winter brings? Why not move to Florida and leave all of that behind. What is that you say? You would miss the changing seasons? What you may not know is that unlike Central or South Florida we have the changing seasons. The leaves this year have been and still are unusually beautiful. Various shades of red, gold, and orange have been so bright and vivid that it makes you just want to stop and stare awhile. The weather gets cold here, too. It is not unusual to wake up to temperatures in the high 20's and 30's. But snow is a rarity. Having lived here for 5 decades I can count the times on one hand that we have had actual snow that stuck to the ground. It definitely gets cold enough to "feel like Christmas" and if you want a White Christmas you can do what I do... get a steaming cup of hot chocolate with marshmallows, wrap up in a blanket, get in the recliner and watch the movie. Ahhhhhh....Christmas in Northwest Florida.....can't be beat!

Dinner and Auction

Ellen Marsh — Tue, 11 Nov 2008 15:58:00 GMT

Habitat for Humanity began as an idea in the 1960's in Americus, Georgia. Since then Habitat has built nearly 300,000 houses around the world. Locally Habitat has built 42 homes in Jackson County since it's beginning almost 20 years ago. You can help that local effort by attending the annual Habitat for Humaity smoked steak dinner and auction at the Jackson County Agricultural Center this Thursday night, November 13. Tickets for the smoked steak dinner are $25 in advance or $30 at the door, or you can choose to attend just the auction for $5. There will actually be 2 auctions in one. A silent auction will begin at 3:00 P. M. with quiet a variety of items on display from gift certificates to furniture. A live auction will begin at 6:30 followed by the smoked steak dinner. So, Thursday night there is no menu to plan or any dishes to wash, just come out to the Ag Center to support a worthy cause and have some great fun.