Real Estate Information Archive

Blog

Displaying blog entries 11-20 of 20

Winter Heat or Summer Cooling - It's always good to seal your windows. Here's a LOW COST way of saving money and being more comfortable at the same time.

Friday, May 27, 2011
by Scott Darling

  • Got Leaky Windows? 3 Low-Cost Tips to Fix Them

    I used to hang an extra woolly robe in my bathroom because my post-shower route took me past a window so drafty it made me wonder about the etymology of “window.” Turns out it comes from the Anglo-Saxon “vindr” and “auga,” which translates as “wind eye.” How appropriate. Read

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

Add Comment

How to Use Comparable Sales to Price Your Home

Thursday, April 28, 2011
by Scott Darling

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

Add Comment

Spray Granite for Kitchens and Baths

Tuesday, April 12, 2011
by Scott Darling

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

Add Comment

Under-Stairs Storage Stomps Out Clutter

Friday, April 1, 2011
by Scott Darling

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

Add Comment

Understanding Real Estate Representation

Wednesday, March 23, 2011
by Scott Darling

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

Add Comment

Should I Buy a Fixer Upper?

Tuesday, March 1, 2011
by Scott Darling

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

Add Comment

7 Tips for Staging Your Home

Monday, February 21, 2011
by Scott Darling

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

Add Comment

7 Tips For Improving Your Credit

Wednesday, February 16, 2011
by Scott Darling

Visit houselogic.com for more articles like this.

Copyright 2011 NATIONAL ASSOCIATION OF REALTORS®

Add Comment

How Chester County Real Estate Owners Save On Taxes

Monday, January 17, 2011
by Scott Darling

Happy New Year! January is the time for starting out with a clean slate and vowing to make changes that are good for us. In spite of our good intentions, however, by now many of us have made--and broken--many familiar resolutions and have fallen back into bad habits. Despair not. There is one action you can begin right away, stick to without hardship or self-denial, and benefit greatly from in just a few months. The holiday season may be behind us, but tax season is not far away, and you can resolve to get an early start by identifying house-related tax deductions now and gathering the necessary documentation for them.

Doing so provides you with a win-win situation. Not only will you get a head start on a sometimes onerous task, you will also derive pleasure from seeing how much money you will save simply by owning Chester County real estate. The following information is current as of now, but I urge you to check with your accountant, visit the IRS website, or call the IRS assistance line at 800-829-1040 for verification and/or specifics.

tax deductionPRIMARY RESIDENCES

  • MORTGAGE INTEREST: As you know, much of your mortgage payment goes toward paying off interest, especially in the early years. All this paid interest, on debts of up to $1 million on a joint return, is tax deductible. The amount you have paid is reported to you on a 1098 form sent by your lender and should be reported by you on line 10 of a Schedule A form (itemized deductions).
  • HOME EQUITY LOAN INTEREST: Interest paid on home equity loans (second mortgages, equity credit lines, and some refinancing) is fully deductible up to $100,000--regardless of how you use the proceeds. If you use some or all of the proceeds for home improvements, that amount can be added to the $100,000. Be sure to carefully document all improvement costs. Note: The limits mentioned apply only as long as all debt secured by the residence does not exceed the fair market value of your Chester County real estate.
  • POINTS: The points you paid to the lender at closing are deductible for the year in which you paid them. This amount is also reported to you on the lender’s 1098 form. See publication # 936 from the IRS for more specific information, especially about points paid for refinancing.
  • PROPERTY TAXES: Chester County real estate property taxes are fully deductible.
  • PRIVATE MORTGAGE INSURANCE: If your mortgage was taken out between 2007 and 2010 and your joint income is below $100,000, you can deduct any premiums you paid. Note: This is the last year that you can take this deduction.
  • HOME OFFICE: If you use a portion of your home exclusively for business purposes, there are certain costs you can deduct. Such expenses may include a percentage of your utilities, repairs, qualified insurance premiums, and even property taxes. The IRS has specific requirements for these deductions. Consult IRS publication #509.
  • SELLING YOUR HOME: In addition to being able to pocket as much as $500,000 tax free in profit if you file jointly and have lived in the piece of Chester County real estate for two of the past five years, you can also deduct from your taxable capital gain many costs which you incurred while selling the property. Such costs usually include realtor commissions, legal and inspection fees, and title insurance. In addition, cosmetic repairs and improvements you made to the home within 90 days of the sale are also deductible.

TAX CREDITS: These are even more beneficial than deductions and fall into two categories for the 2010 tax year.

  • HOMEBUYER TAX CREDIT: Buyers who purchased a house before May 2010 and qualified for a Homebuyer Tax Credit may claim that credit by mailing in (you cannot file electronically) your return with IRS Form 5405. Members of the military, foreign service, and intelligence communities have until April 30, 2011, to purchase a home and be eligible for this credit.
  • HOME ENERGY TAX CREDIT: If you installed qualified energy-efficient systems, windows, and/or appliances in your home before December 31, 2010, you may be eligible for a tax credit of up to $1500. Again, you may not file electronically, and you must complete and attach IRS Form 5695 to your return.

FORGIVEN DEBT: Mortgage debt to buy a principal residence that is forgiven (as in a short sale, foreclosure, or debt restructuring) is no longer taxable in many cases. Restrictions apply for investors, equity lines, refinancing, etc. See IRS Publication 4681 for detailed information and use IRS Form 982 for filing.

Add Comment

Chester County PA Real Estate Sales Statistics - May 2010

Monday, July 19, 2010
by Scott Darling

Pending home sales have risen for three consecutive months, reflecting the broad impact of the home buyer tax credit and favorable housing affordability conditions, according to the National Association of Realtors®.

The Pending Home Sales Index rose 6.0 percent to 110.9 based on sales contracts signed in April. This figure is up from 104.6 in March, and is 22.4 percent higher than April 2009 when it was 90.6 and reflects increases of 7.1 percent in March and 8.3 percent in February.

Pending home sales are at the highest level since last October when the index reached 112.4 and first-time buyers were rushing to beat the initial deadline for the tax credit. The data reflects sales contracts and not closings, which usually occur with a lag time of one or two months.

Let's look at May real estate sales to see how the local Chester County market is faring.

Downingtown Area School District saw a 14% increase in sold listings in May 2010, compared to May 2009.  Pending listings have decreased by  56% and active listings have decreased by 45%.  There was a 13% decreased in average sales price to $292,054, while market times decreased by 34 days.

Downingtown

Active
Listings

Pending
Listings

Sold
Listings

Average
Sales Price

Average
DOM

May 2010

68

31

56

$292,054

58

May 2009

123

71

48

$335,718

92

In the West Chester Area School District, there was an increase in Sold listings  of 29% when compared to May 2009.  While pending sales decreased by 32% in May 2010 when compared to May 2009.  Average sales price increased by 6% to $342,317 and active listings decreased by 8% from May 2009.  Market times have decreased by 31 days.

West Chester

Active
Listings

Pending
Listings

Sold
Listings

Average
Sales Price

Average
DOM

May 2010

130

63

102

$342,317

60

May 2009

142

93

72

$323,482

91

Sold listing have increased by 28% in the Coatesville Area School District in May 2010 when compared to May 2009.  The average sales price increased by 8% to $235,468 and active listings decreased by 7%.  The number of pending home sales decreased by 33% when compared to May 2009, while homes were on the market on average 6 days more than in May 2009.

Coatesville

Active
Listings

Pending
Listings

Sold
Listings

Average
Sales Price

Average
DOM

May 2010

130

33

67

$235,468

85

May 2009

140

49

48

$217,375

79

A word of caution...markets within a school district can be very different from neighborhood to neighborhood. For the latest Chester County PA real estate market conditions in your neighborhood, please call me at 610-564-SCOT or visit ChesterCountyHomeSource.com.

Add Comment

Displaying blog entries 11-20 of 20

Syndication

Categories

Archives