The Kestner Team

4 Things First-Time Home Buyers Need to Know about Home Inspections

April 23rd, 2010 3:55 PM

4 Things First-Time Home Buyers Need to Know about Home Inspections

RISMEDIA, April 21, 2010— A professional home inspection can not only provide a great education about the home’s systems, but also be a crucial tool in negotiating the most equitable price on the home, according to HouseMaster, one of the first and largest home inspection franchisors in North America.

“Our experience and research shows that approximately 40% of resale homes have at least one defect that can cost a home buyer a minimum of $500 to repair,” said Kathleen Kuhn, President of HouseMaster.“A home inspection by a professional and qualified home inspector is an excellent tool to encourage home sellers to make repairs or make further price adjustments as a result of conditions noted in the inspection report.”

According to the National Association of Realtors (NAR), in 2009, a record 47% of homes sold were purchased by first-time buyers. Tax credit incentives from the federal government of up to $8,000 and historically low mortgage rates continue to attract first-time buyers to the market. A professional home inspection not only educates buyers on the condition of the home but can minimize costly surprises down the road. HouseMaster provides the following tips to ensure that first-time buyers make an educated decision when purchasing a home and get the best price possible.

1. Inspect the Inspector. Only hire a home inspector with an excellent reputation and credentials. Ask how long the company has been in business, ask about specific formal training and ongoing education the inspector has and verify the inspector carries professional liability insurance also known as “Errors & Omissions” (E&O). If the company doesn’t carry this insurance, it could indicate a poor track record or lack of experience.

2. Ask for a sample of a report. The credentials of the inspection company and the quality of the final inspection report will be important. A poorly prepared report without pictures or clear, concise details addressing all the various systems and accessible elements of the home is less likely to be taken seriously by a home seller.

3. Inspect ancillary systems. It’s hard for first-time home buyers to know what they need, so be sure to ask what additional services the company offers. If the home you are considering has a septic system for example, a professional home inspection company may offer septic system inspections or can coordinate that service for you. Generally, the company will offer you a multiple services discount as well as the added convenience of only having to attend one inspection appointment. Other common services offered by home inspectors are termite inspections, mold screening, water testing and radon testing.

4. Go along on the inspection. Ask the inspection company if they encourage buyers to tag along on the inspection. If the inspector discourages you from going along and asking questions, find another inspector. A home inspection is not simply a laundry list of what is wrong with the home. In addition to documenting issues and needed repairs that may exist, a professional home inspector will also show the new buyer how to operate the various systems in the home and provide tips on improving energy efficiency and maintaining the home in general. And being present during the inspection will make the final written report that much more meaningful.

For more information, visit www.housemaster.com.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Posted by Nina Kestner and Kevin Lennon The Kestner Team on April 23rd, 2010 3:55 PMPost a Comment (0)

Just Listed! 404 Toomer Ct. Nashville, TN 37217

April 29th, 2010 12:12 AM

$187,500.00
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Nashville, TN 37217

Beds: 3	Rooms: 8
Full Baths: 2	Sq. Ft.: 1850
Garage: 2	Built: 2005

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Posted by Nina Kestner and Kevin Lennon The Kestner Team on April 29th, 2010 12:12 AMPost a Comment (0)

The American Clean Energy and Security Act (Cap and Trade) and Real Estate.

April 22nd, 2010 1:48 PM

The American Clean Energy and Security Act

The U.S. House of Representatives approved H.R. 2454, the American Clean Energy and Security Act by Reps. Waxman (D-CA) and Markey (D-MA). Following NAR’s long-standing policy to only take a position on legislation, or provisions within legislation that have a direct affect on real estate, NAR worked with our Congressional allies to strip the Energy Bill of provisions that would have adversely affected our industry.

After multiple consultations with the NAR Climate Presidential Advisory Group, the NAR Land Use, Property Rights and Environment Committee, and state associations who had dealt with energy audit legislation at the state level, the Land Use, Property Rights and Environment Committee directed NAR staff to concentrate on the real estate provisions in the bill. As a result, NAR issued calls for action and made this a talking point for Capitol Hill visits during its recent Midyear meeting.

Overall, REALTORS® succeeded in making a number of positive changes affecting the real estate provisions of the bill. The House-approved bill:

Does not create a federal energy audit requirement for real property;
Exempts existing homes and buildings from any federal guidelines for new construction energy efficiency information labels.
Prohibits the implementation of any labeling during a sales transaction.
Leaves the decision to states as to whether to require energy audits, disclosures, etc.
Provides property owners with significant financial incentives, matching grants and tools to make property improvements and reduce their energy bills;
Prohibits the Environmental Protection Agency from regulating residential and commercial buildings under the Clean Air Act;
Eliminated an early proposal to allow citizens to sue over minor climate risks under the Clean Air Act; and
Establishes green building incentives for HUD housing, including a loan program for renewable energy, block grants and credit for upgrades in mortgage underwriting.

For more information about the American Clean Energy and Security Act, see NAR's Information Pack.

What's Next?

The Senate must still pass its version of an energy and climate bill. If this occurs a House–Senate conference committee will be held to reconcile differences between the House and Senate bills.

DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020 I 1-800-874-6500

Posted by Nina Kestner and Kevin Lennon The Kestner Team on April 22nd, 2010 1:48 PMPost a Comment (0)

Housing Starts Maintain Upward Trend in March 2010

April 20th, 2010 12:33 PM

Housing Starts Maintain Upward Trend in March 2010

By Greg Robb Print Article

RISMEDIA, April 20, 2010—(MCT)—Fresh data on new construction of U.S. housing units revealed an upward trend in place since the beginning of the year, with an initial report of February 2010 weakness revised away.

Starts rose 1.6% in March to a seasonally adjusted 626,000 annualized units, the Commerce Department recently reported. This was stronger than the 610,000 pace expected by economists surveyed by MarketWatch.

Even more surprising, February starts were revised higher to a 616,000 pace from the 570,000 previously reported. This was up 1.1% from the prior month. The initial estimate had been a 5.9% drop.

As a result of the revisions, starts have risen for three straight months and are now at their highest level since November 2008. “The bottom line is that there is an upward trend and construction will be moving higher provided that new-home sales improve as well,” said Michelle Meyer, economist at Barclays Capital. Meyer cautioned that one should not get carried away with the improvement as it comes from “an incredibly low level of activity.”

Treasury prices and the dollar added to recent gains after the report. The government cautioned that its monthly housing data are volatile and subject to large sampling and other statistical errors. In most months, the government can’t be sure even whether starts increased or decreased. In March, for instance, the standard error for starts was plus or minus 15.2%. Large revisions are common, but rarely have they been in such a positive direction during this recession.

In March, strength came from multifamily starts. There was a slight decrease in starts of single-family homes. Starts of single-family homes fell 0.9% to a 531,000 rate in March, while starts of multifamily units surged 39.7% to 88,000.

The strength was concentrated in the South; all other regions declined in March.

“This was a modestly positive report. It is nice that construction is improving, but it would be better if the gains were more widespread,” wrote Joel Naroff of Naroff Economic Advisers.

In the past year, starts are down 20.2%. Starts of single-family homes are up 47.1%, while starts of apartments and condominium units have plunged 31.8%.

Building permits rose 7.5% to a seasonally adjusted annual rate of 685,000 in March.

Building permits for single-family homes increased 5.6% to a 543,000 rate—the highest level since August 2008. Many economists consider single-family permits to be the most important number in the government’s release. Permits for apartments rose 15.4% to 142,000.

The National Association of Home Builders recently said its members were more encouraged about their business in April. The builder’s sentiment index rose to 19 in April from 15 in March. “We may be seeing some modest improvement in the fundamentals for new housing construction,” wrote the RDQ economic team in a note to clients.

A tax subsidy for buyers expires at the end of April, and “we will need to see data for May and June before we can put too much weight on this conjecture,” the RDQ note said.

It can take four months for a new trend in housing starts to emerge from the data. In the past four months, housing starts have averaged 606,000 annualized, up from 594,000 in the four months ending in February.

The industry has slashed production of new homes to work off a massive amount of unsold inventory. The number of homes under construction fell 1.4% to a seasonally adjusted 489,000, the lowest on record, dating back to 1970. “Any pickup in demand,” Meyer said, “will warrant an increase in new construction.”

Distributed by McClatchy-Tribune Information Services.

Posted by Nina Kestner and Kevin Lennon The Kestner Team on April 20th, 2010 12:33 PMPost a Comment (0)

Just Listed! Builder Leasebacks - Investment Properties Nashville, TN 37215

April 8th, 2010 3:20 PM

$140,000.00
Builder Leasebacks - Investment Properties

Nashville, TN 37215

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Posted by Nina Kestner and Kevin Lennon The Kestner Team on April 8th, 2010 3:20 PMPost a Comment (0)

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April 8th, 2010 3:01 PM

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Posted by Nina Kestner and Kevin Lennon The Kestner Team on April 8th, 2010 3:01 PMPost a Comment (0)

5 Tips to Help Teens Understand Importance of Financial Literacy

April 7th, 2010 4:58 PM

5 Tips to Help Teens Understand Importance of Financial Literacy

Print Article

RISMEDIA, April 5, 2010—April is Financial Literacy Month, and the recently announced findings of the annual “Teens and Personal Finance Survey” conducted by Junior Achievement (JA) and the Allstate Foundation, indicate it might be wise to pay a little more attention to the importance of financial literacy–especially with teens.

According to the survey’s findings, 42% of the teens who don’t manage their money aren’t even interested in money management. Despite this lack of interest, 86% still think they’ll be as financially well-off or better off than their parents. The discrepancy between planning and results raises the question of whether or not the next generation is ready to handle their own finances. The Illinois CPA Society suggests parents may have some work to do to prepare their teens for the future. Financial Literacy Month’s a good time to start talking money with your teen, so the Illinois CPA Society shares these thoughts on the subject:

Communicate – It’s not easy to get your teen to talk or to listen, but try to include them in conversations about family finances. Help them build a better understanding about saving and budgeting through real life examples – like why there will be no vacation because the roof needs to be repaired or being able to buy a new car because you saved for it. Encourage them to participate when you sit down to pay bills or do your taxes and explain what you’re doing and why. Talk about your choices when shopping or how you comparison shop online.

Encourage them to take responsibility for their own money and purchases – Don’t just handle everything for your teen. If they have a cell phone, do they pay the bill or even know the monthly cost? Tap into their interests and tie it to money, whether it’s music and what’s being spent on downloads, sports and the cost of events or equipment, or the latest fashion fad and finding a bargain or shopping at a resale store to achieve the same look. Get them in the habit of saving; even $1 a week can start a positive pattern that will last a lifetime.

Be a role model - Take a good look at what you do and say when it comes to money. If it seems to flow freely without any questions or concerns, then your teen might make the assumption money will always be there. Think about the attitudes on money you convey – do you take it seriously and plan how you use it, or give it little thought and find yourself constantly scrambling to make ends meet?

Provide positive reinforcement - When you talk money, the topic shouldn’t be all doom and gloom despite the current economy. Make the connection between the right decision and a reward. Notice smart choices and a little spending restraint, and compliment your teen on their wise money moves not just their mistakes.

Educate yourself, so you can educate your family - Make sure you’re armed with some financial knowledge so you can pass along that knowledge to your children. Beyond such basics as budgeting and saving, know what a good credit score is and the impact it has on your ability to get a mortgage, car loan or credit card. Brush up on investment terms, savings and credit card rates, and find out more about college loans and financial aid forms.

For more information, visit www.icpas.org.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

Posted by Nina Kestner and Kevin Lennon The Kestner Team on April 7th, 2010 4:58 PMPost a Comment (0)

Tread Carefully To Avoid Tax Disasters

April 6th, 2010 3:18 PM

Tread Carefully To Avoid Tax Disasters

By Susan Tompor

RISMEDIA, April 6, 2010—(MCT)—Two things are true about taxes: We'd rather see a refund — or at least not owe a lot of money. And we don't want any trouble.

So with the April 15 filing deadline near, pay attention to the 1040 land mines to be sure you get everything to which you're entitled and avoid a complicated tax mess.

Trouble can pop up any year — if, for example, you somehow forgot about a W-2 form and neglected to include all your taxable income. Other tripwires may be found in a slew of rule changes linked to last year's economic stimulus package.

The Internal Revenue Service, for example, says there has been a lot of fraud with the homebuyer tax credits. As a result, be prepared to send lots of paperwork to support such a claim with your tax return — and yes, you're going to have to mail that return the old way to get the credit.

Here are other ways to avoid a mess:

If you use a tax preparer, take time to study your completed return.
One reader complained that he and his wife have had their taxes done for 15 years by a certified public accountant. But in December, they got a letter from the IRS citing a mistake on their 2007 return. The couple discovered their CPA had neglected to report all of their income, despite having the necessary paperwork.

In that situation, the CPA agreed to pay the interest on the $650 the couple discovered they owed in 2007 taxes because of the CPA's error. Generally, when such mistakes are made, the taxpayer is still responsible for what would have been owed had the return been correct, said Patricia Bojanic, tax partner for Gordon Advisors in Troy, Mich.

As for interest and penalties, ask your preparer upfront.

Avoid penalties. Be sure to file a return — and pay up.
The penalty for failure to file is generally more than for failure to pay. It's far better to file your return on time even if you can't pay all that you owe.

The penalty for filing late is usually 5 percent of the unpaid taxes for each month or part of a month that a return is late. This penalty will not exceed 25 percent of your unpaid taxes.

If you filed an extension and you paid at least 90 percent of your actual tax liability by the due date, you will not be faced with a failure-to-pay penalty if the remaining balance is paid by the extended due date.

Home is where accidents can happen.
The IRS is on the lookout for taxpayers who claim but don't necessarily qualify for rich tax credits for buying a home, who take deductions for a home office when they really work out of the living room or who cook up losses that are bigger than allowed on rental properties.

The rules are complicated for the latest tax credits for new home buyers and some long-time homeowners who recently bought new homes.

Some consumers have reported situations in which they received confusing or bad information about the credits from their banks and real estate agents. So research the rules — and, if necessary, talk to a tax professional.

The home buyer tax credits themselves are huge — up to $8,000 for a first-time buyer — and proved to be quite a temptation for people who were out to scam the system. So the IRS is now demanding Form 5405 — and much documentation to be filed with paper returns.

"It's going to get additional scrutiny," Bojanic warned.

One hint: Do not try to take the credit if you bought the house from your parents or grandparent. You won't qualify.

As for home offices, many tax experts say they are a well-known red flag.

A key rule: The taxpayer's "home office" space must be dedicated to "regular and exclusive use" as a main place of business. It could be where you regularly meet or deal with patients, clients or customers.
Ronald N. Silberstein, certified public accountant and principal at Silberstein Ungar in Bingham Farms, Mich., said the home office deduction is very specific and may not apply to people who are not required to work out of the home.

He said taxpayers who work from home as a convenience probably should not take that deduction. As part of an audit, Silberstein said, the IRS might require confirmation from the employer.

As for taking a loss on a rental property, again it's essential to follow the rules and be sure that you have the proper documentation. You're going to need receipts to back up expenses incurred, rents received and attempts made to rent the property, such as receipts or copies of paid ads. See Form 8582.

Avoid sounding far more generous than you really were in 2009.
Did you really hand over $15,000 to your religious group, charities or pet causes in 2009, even though your income was $100,000 or less? You gave away 15 percent or more of your money? Really?
While that might make you sound special, it also could trigger trouble with the tax titans.

No one can roll out an exact number of how much is too much to claim as a deduction for charitable contributions, but the IRS could question charitable contributions that far exceed 10 percent of your income, according to James Jenkins, president of Jenkins & Co., a tax firm in Southfield, Mich.
"It's going to turn the lights on — it's got to," Jenkins said.

So don't claim it if you really didn't contribute it.

Charitable contributions are deductible only if you itemize deductions on Form 1040, Schedule A.
For any contribution of $250 or more (in cash or property), you need written acknowledgment from the qualified organization indicating the amount of money or describing the donation, and whether the organization provided anything in return. For example, if you enjoyed a $100 dinner when you bought a $250 for a ticket to a benefit, you can deduct only $150.

And if you did contribute 15 percent or 20 percent of your income, Jenkins said, he would suggest photocopying all the documents to back up those gifts and attaching them to the return.

Stay far away from tax preparers who are running scams — and guaranteeing fat refunds.
"If they don't know your tax history, how can they possibly guarantee that they're going to give you a refund — let alone a substantially bigger refund than anyone else?" said Luis D. Garcia, a spokesperson for the IRS in Detroit.

You also want to pay extra attention to e-mails that appear to be from the IRS. Many identity thieves try this trick to get you to divulge personal information.

One such phishing scam sends a bogus e-mail about a tax refund. It may use the phrase "last annual calculations of your fiscal activity."

To claim the refund, the e-mail urges the consumer to open an attachment or click on a link and complete a form. Don't do it. This is how scammers get your personal and financial information.
Dodge that disaster. The IRS isn't sending out e-mails so you can claim refunds.

(c) 2010, Detroit Free Press.
Distributed by McClatchy-Tribune Information Services.

Posted by Nina Kestner and Kevin Lennon The Kestner Team on April 6th, 2010 3:18 PMPost a Comment (0)