Adding Value by Dennis O'Hagan

Homeownership Makes Tax Time Less Taxing...

RISMEDIA, Friday, April 13, 2012— With the April 17 tax deadline coming up, many individuals and families still have time to take advantage of the valuable tax benefits homeownership affords. Many are turning to the National Association of REALTORS’® consumer website, HouseLogic.com.

"Our government encourages homeownership because it benefits families, communities, and our nation's economy; homeownership is an investment in our collective futures," says NAR President Moe Veissi, "HouseLogic.com helps homeowners identify the benefits that will save them money today and plan ahead for future savings, as well."

HouseLogic.com provides tips and tools for homeowners, and devotes an entire section of its site to tax incentives for the home. Visitors can check out A Home Owner's Guide to Taxes to find helpful articles like 10 Easy Mistakes Home Owners Make on their Taxes, 12 Tough Questions (and Answers) About Home Office Deductions, and 6 Deduction Traps and How to Avoid Them that provide consumers with a wealth of information to ensure they get the maximum return to which they're entitled.

Tax benefits that encourage homeownership include the mortgage interest deduction, deductions for property taxes, and tax credits for energy-efficient remodeling projects and heating and cooling systems.

For more information, visit www.houselogic.com or www.realtor.org.

What You Need To Know About Cancellation Of Mortgage Debt...

Please click on the below link to learn about the cancellation of Mortgage debt...

http://rismedia.com/2012-03-11/what-you-need-to-know-about-cancellation-of-mortgage-debt/

The Vote Is In: Americans Place High Value on Homeownership...

RISMEDIA, Saturday, January 14, 2012— By an overwhelming margin, American voters strongly value homeownership and would oppose efforts to weaken or eliminate the mortgage interest deduction or diminish a federal role to help qualified home buyers obtain affordable 30-year mortgages, according to a new nationwide survey gauging likely voters’ attitudes towards homeownership and housing policy issues.

“The American electorate is sending a clear message that owning a home remains a cornerstone of the American Dream and preserving a federal commitment to homeownership is essential to maintain a thriving middle class and get housing and the economy back on track,” says Neil Newhouse, a partner and co-founder of Public Opinion Strategies.

Conducted on Jan. 2-5 on behalf of the National Association of Home Builders by the Republican and Democratic polling firms of Public Opinion Strategies in Alexandria, Va., and Lake Research Partners in Washington, D.C., the comprehensive survey of 1,500 likely voters includes data from key political “swing areas,” including National Journal political analyst Charlie Cook’s swing House and Senate seats and Stuart Rothenberg’s presidential swing states. The survey, which has a margin of error of ±2.5 percent, is a follow-up to a similar national poll conducted last May.

The poll shows that three out of four voters—both owners and renters—believe it is appropriate and reasonable for the federal government to provide tax incentives to promote homeownership. This sentiment cuts across regional and party lines, with 84 percent of Democrats, 71 percent of Republicans and 71 percent of Independents agreeing with this statement.

Also, two-thirds of respondents say that the federal government should help home buyers to afford a long-term or 30-year, fixed-rate mortgage.

Moreover, 73 percent of voters oppose eliminating the mortgage interest deduction. These figures held firm across the political spectrum, with 77 percent of Republicans, 71 percent of Democrats and 71 percent of Independents against doing away with the mortgage interest deduction.

Meanwhile, 68 percent would be less likely to vote for a congressional candidate who proposed to abolish the deduction, a figure that was virtually identical across all party affiliations (69 percent of Independents and 68 percent of Democrats and Republicans).

A majority of voters are also against proposals to reduce the mortgage interest deduction, eliminate the deduction for interest paid for a second home, limit the deduction for those earning more than $250,000 per year, scale back the deduction for home owners with mortgages above $500,000 and do away with the deduction for interest paid on home equity loans.

“With the 2012 election season in full swing, candidates running for the White House and Congress would be wise to heed the will of the American voters, who have expressed broad support for government policies that encourage homeownership and oppose efforts to make it more difficult to get a home loan and to tamper with the mortgage interest deduction,” says Celinda Lake, president of Lake Research Partners.

Among the poll’s other key findings:

• 96 percent of homeowners are happy with their decision to own and 84 percent who are “underwater,” or owe more on their mortgages than their home is worth, expressed the same sentiment.
• 79 percent of home owners would advise a family member or close friend just starting out to buy a home, and 69 percent of those who are underwater on their mortgage would offer the same advice.
• 74 percent said that despite the ups and downs in the housing market, owning a home is the best long-term investment they can make.
• Homeownership and a retirement savings program are considered by voters to be their best long-term investments.
• 78 percent of respondents said that owning their own home is very important to them.
• Nearly seven out of 10 voters who are not currently home owners (68 percent) said it was a goal of theirs to buy a home.
• Job uncertainty and saving for a downpayment and closing costs are the biggest barriers to buying a home.

The survey findings are consistent with the results of other public opinion surveys. In a New York Times/CBS News poll conducted in June, 89 percent said that homeownership is an important part of the American Dream and more than 90 percent indicated that it is important for the federal government to continue the mortgage interest deduction.

According to a Pew Research Study conducted last March, 81 percent of respondents agree that buying a home is the best long-term investment a person can make and 81 percent of renters surveyed said they would like to buy a house.

“Even in a down housing market, homeownership remains a core American value, with the vast majority of citizens who do not currently own a home saying they want to buy a home,” said Bob Nielsen, president of the National Association of Home Builders and a home builder from Reno, Nev. “Those running for office in November need to understand that voters will not look kindly on any candidates who seek to dismantle the nation’s long-term commitment to homeownership.”

For more information, visit www.nahb.org/homeownershippoll.

Preparing for Winter...

As winter approaches, preparations should be considered both inside and outside your home to protect your investment, maintain your safety, and provide comfort throughout the colder winter months.

Indoor Preparations

The most obvious items to address as the winter months approach center largely around ensuring that your home remains warm. Regardless of your heat source there are preventative measures that should be taken to ensure that you remain warm and safe inside your home. Some of the most important areas to assess include:

• Furnaces - regular annual furnace inspections will help keep your furnace in good repair. Cleaning or replacing furnace filters monthly during the operating months will also keep your furnace operating efficiently.
• Oil Heaters - like furnaces, oil heaters require annual inspections and maintenance. Annual inspections should include: inspecting the chimney, cleaning the pipes to remove soot build up, replacing the air filter, checking oil pressure and cleaning the oil filter bowl. Oil supplies will need to be replenished.
• Fireplaces - periodic cleanings should be performed by a chimney sweep to remove soot and creosote buildup to prevent chimney fires. It is also a good time to ensure that woodpiles are sufficiently stocked for the winter months with well-seasoned wood. Woodpiles should be located in a dry location and in an area away from structures to prevent granting wood-eating insects, such as termites, easy access to your home.
• Inspect windows and door for leaks - replacing cracked windows, or sealing air leaks around doors and windows will not only make the winter months more comfortable, but will also lower the costs of heating your home. One method of sealing leaks around windows is by using a removable caulking product which allows for easy removal and restoration of functionality for windows with the return of warmer weather in the spring.
• Evaluate smoke detectors and related safety equipment - the ending of daylight savings time is an ideal time to replace batteries in smoke detectors and any other battery-powered safety or emergency equipment. It is also a good time to evaluate existing smoke detectors, carbon monoxide detectors and fire extinguishers in terms of lifespan and whether they provide an adequate level of coverage. Smoke detectors and fire extinguishers are generally considered to have a lifespan of 10 years, whereas carbon monoxide detectors have a lifespan generally ranging from 2 to 5 years. Beware that batteries in the carbon monoxide detectors may still function after the actual carbon monoxide sensor has ceased being operational.

Outdoor Preparations

Outdoor preparations should include a walk around your property with an eye for cracks in foundations, the mortar in brick structures, and caulking or weather stripping that has failed. Other things to look for include: evidence of uninvited guests in the form of rodents or birds living or nesting in unsafe or unwanted locations, exposed wood that may need some type of protective treatment applied, and items that are too close to heat sources that could become fire hazards. In addition to this general evaluation, here is a list of specific items to consider:

• Hoses/hose bibs - in regions where temperatures drop below freezing, it is important to disconnect and drain your garden hoses, and either wrap hose bibs or cover them with insulating covers to prevent freezing pipes. A quick inspection for other exposed pipes that may need insulating will prevent the headache of dealing with broken pipes later.
• Sprinkler systems - in colder climates, sprinkler systems will need to be drained to prevent water from freezing and causing cracked or broken pipes. You may be able to drain the water yourself, or you may hire a professional to winterize it by blowing the water out of your system with an air compressor.
• Roof - inspect your roof for any loose, missing, worn or damaged shingles, tiles or other roofing material and have any needed repairs made to prevent unwanted water damage.
• Clean your gutters and downspouts - after leaves and other tree debris has fallen and collected in your gutters, it will be important to clean the gutters and downspouts to prevent water from backing up and causing water damage or overflowing during winter storms.
• Clean landscaping tools - when storing your landscaping tools for winter, take the opportunity to clean them well, apply a light coat of lubricant on tools such as pruning shears to keep them operational and to extend their lifespan, and replace tools that are in poor condition so you'll be prepared next spring when your landscaping begins to come to life once again.
• Prepare winter equipment - now is the time to test winter equipment that you may need in the coming months and make any necessary repairs ahead of time. Knowing that the snow blower or back-up generator will work and are in good repair and that you are prepared for inclement weather will provide peace of mind. It is also a good time to place this equipment along with shovels and salt in an accessible location so it is readily available when it is needed.
• Winter fertilizer - an application of winter fertilizer to lawns will promote stronger roots and help produce a healthier lawn in the spring.
• Plants - take a look at your landscaping and determine if there are plants that may be sensitive to cooler weather and require special preparation. While some plants may need to be trimmed, others may require additional composting materials around their roots to protect them during freezing temperatures, and others will need to be moved to a sheltered area or indoors. This is also a good time to lift bulbs that won't survive the colder temperatures such as dahlias and to consider planting spring bulbs like tulips and daffodils.

Emergency Planning

Lastly, don't forget to review or establish an emergency plan and supply kit.

Emergency plans should include:

• Designated out-of-area contact as a centralized point person - often in emergencies it is easier to reach an out-of-area contact than a local one to relay information about impacted family members
• Back-up meeting place
• Back-up child care and pet care arrangements
• Accommodations for any special needs (non-ambulatory or disabled family members, family members using oxygen tanks, etc.)

Emergency supply kits should be kept in an easily accessible location and contain:

• Water
• Non-perishable food
• Pet food
• Blankets
• First Aid kit
• Candles and matches/lighter
• Battery-operated radio
• Flashlights
• Important phone numbers - relatives, utilities
• Fuel for any back-up heat sources
• Supplies for existing medical conditions
• For homes with infants, an adequate supply of diapers and infant related items

Balance your air flow...

As the cold starts to make its way to Texas, we all are starting to get ready for those chilly evenings to come.  Have you ever noticed that one room in your house is colder than another?  Maybe another room is much warmer than the rest?  This is likely due to an improper balance on your vents for your central heat and air system.  On your ceiling, your vent registers are attached to the dry wall.  Most of these registers have a small damper valve that can open or close the vent itself.  The air that is pumped through your system will choose the path of least resistance, just as if it was water flowing through your plumbing system. 

With your system on, put your hand in front of the vent register that is closest to the air handler system.  More than likely you will feel a pretty good breeze through that vent.  Now go to the vent register farthest away from the air handler.  There is likely little to no air pressure there.  This is the balance that I am referring to.  So how do you fix it?  Simple.  Go back to the vents closest to the air handler and start closing off those dampers.  You don’t have to close them all the way.  I would start with about 75% closed off to start.  Do this with the vent registers that are closest to the unit.  The farther you get away from it, the more open you leave it.  The vent registers farthest away from the air handler should be all the way open.  You may have to open and close your vents a few times to balance your system properly, but once you do, you will find that each room should stay closer to the same temperature.  After each adjustment, put your hand back in front of the vent to feel how much air is coming through.  Adjust accordingly until you find a balance that’s right for you. 

This will not only make your home more comfortable, but it will likely cut down on different members of the family wanting to adjust the thermostat as they are in rooms that are different temperatures.  This will also produce a more efficient running unit, which will save you money as well.  

BIG THANKS to my good friend Lee Warren (Licensed Home Inspector) for sharing this great piece of information with us... 

E. Lee Warren III

Licensed Home Inspector

TREC License #8411

Prospect Inspectors, Inc.

469-682-0341

TIPS FOR KEEPING YOUR HOME COOLER...

BY REDUCING THE AMOUNT OF HEAT THAT YOUR HOME GENERATES:

1. Cook outside on a grill instead of heating your home by using your oven or stove;
2. Run the dishwasher and do the laundry in the evening when temperatures are cooler;
3. Caulk and seal around doors and windows, to help avoid entering / escaping airs;
4. Service your A/C unit(s) - even a small amount of missing Freon may cause your system to work less efficiently;
5. Properly insulate - using at least 12 inches depending on the material content;
6. Ventilate your homes attic allowing heat to move up and out - one square foot opening for every 150 square feet;
7. Replace light bulbs with compact fluorescents and LEDs to reduce heat output and electrical use - although there may be initial costs, are more cost-saving overtime in multiple ways; and
8. Consider "Radiant Barrier" systems which may prevent 75% and up of the suns radiant heat from entering the attic area.

One or two of these steps may reduce the amount of heat your home is generating!

STAY COOL!!!

*  Tips provided by Candace & Richard Whitsitt, www.WeInspectDFW.com

What's In Your Credit Report?

A credit report contains information on where you work and live, how you pay your bills, and whether you've been sued, arrested or filed for bankruptcy. Consumer Reporting Agencies (CRA) gather this information and sell it to creditors, employers, insurers and others. The three major national credit bureaus are: Equifax, Experian, and TransUnion.

As of September 1, 2005, all consumers are eligible to receive a free annual credit report from each of the three major CRAs. The information in your credit report is used to calculate your credit score - a number generally between 300 and 850 that rates how risky a borrower you are. The higher your score, the less risk you pose to creditors.

Anyone who denies you credit, housing, insurance, or a job as a result of a credit report must give you the name, address, and telephone number of the CRA that provided the report. Under the Fair Credit Reporting Act (FCRA), you have the right to request a free report within 60 days if a company denies you credit based on the report.

Winter 2011 Energy & Cost Savings Tips...

Save Energy This Winter - 11 Ways to Cut Energy Costs in 2011

1. Turn down the dial.
Set your thermostat to 68 degrees. With each degree you lower, you can save 2-5% on heating costs. Layer warm weather clothing while at home and you won’t even notice the difference. At night or when leaving the home for an extended period of time, lower the thermostat to 55-60 degrees. An automatic thermostat will make this even easier! Just program the temperatures based on your daily schedule. Doing this will knock off 5-20% on your heating bill.

2. Don’t overreact to a cold home.
When you come home after a day of work to a frigid home, or are home in the middle of the day when your thermostat is programmed to 55, don’t overreact and crank the heat up to 75. You only need to heat to 68 degrees and setting the thermostat to 75 won’t heat the home any faster than if it’s set to 68. If you are home before the furnace has turned on, you can simply override your thermostat to 68. Be patient and throw on a sweater. You may not realize when the thermostat reaches 68, and before you know it you’ve been heating your house at 7 degrees higher than you need – or want – to pay for!

3. A clean furnace is an efficient furnace.
Replace or clean furnace filters once a month. Dirty filters restrict air flow and increase energy use.

4.  Hot water can still be hot and save you money!
Set your water heater to the normal setting or 120 degrees. You can save up to 11% on heating costs!

5.  Go green with ENERGY STAR®.
Consider replacing old gas appliances with ENERGY STAR® qualified products or add HWA’s GreenPlus to your plan. If your appliances are more than 12 years old, you should consider the upgrade. The Consumer Energy Center recommends replacing your old gas appliances with ENERGY STAR® qualified products. Gas water heaters are labeled with an EF number the higher the EF, the more energy efficient the appliance will be.

6.  Beat the cold weather dryness.
Use a humidifier to add moisture to the dry winter air in your home. Moister air feels warmer, so by using a humidifier, you will be more comfortable in your home even when the thermostat is set to a lower temperature.

7.  If you don’t use it, don’t heat it.
Close off unused rooms such as spare bedrooms. When the room is not in use, close the floor or wall registers and keep the doors closed. If you have guests coming to visit, you can re-open everything and the room will warm up in just a couple hours.

8.  Let the sunshine in.
Open south or east facing window curtains and blinds in the morning and during the day to take advantage of sunny days. At night, close window coverings to keep the heat in.

9.  Let your radiators and heating vents do their job. 
Don’t block your radiators or vents with furniture or draperies. Keep them free of dirt and dust and position your furniture so the heat can fill the room.

10.  Cold water can do it better. 
Cold water does more for your disposal. Run cold water when you are using your garbage disposal and it will work even better. Hot water uses energy to warm the water. Cold water saves energy, plus it solidifies grease, moving it more easily through the garbage disposal and pipes.

11.  Cook small.
Prepare meals with small appliances rather than firing up the range. A microwave, toaster oven, electric skillet and slow cooker use much less energy than the range. Plus, the smaller appliances heat up much quicker. You can reduce cooking energy by as much as 80% when using your microwave for small portions. So when you’re preparing smaller recipes or just need a quick warm-up, the smaller appliances are perfect!

The Latest Technology in the Building Industry.

An infrared camera measures temperature differentials.  The majority of objects in the universe emit heat/radiation.  An infrared camera provides the ability to see beyond the surface of an object within the infrared range on the electromagnetic spectrum and measure these temperature differences. 

Since World War II, infrared cameras have mostly been used in military or police applications.  Due to advances in technology, infrared cameras have become affordable enough to use in other applications like the building industry.   

Infrared cameras or thermal imaging provide the ability to detect many things typically not visible to the naked eye.  Some of these include: missing insulation in walls or ceilings; heating and air conditioning duct leakage; over-heating electrical components hidden behind walls; water leaks before the water stains appear; and air leakage around windows or doors.  

An infrared camera allows the detection of these types of problems in a non-destructive manner.  This prevents having to cut holes into the sheetrock or any other building material.  Infrared cameras are able to scan large or small areas while viewing a video monitor in real time.  The equipment locates anomalies through differences in apparent temperatures, analyzing the pattern(s), and documenting the issues.   This technology with proper training can eliminate the guess work and unnecessary damage that comes with it thus preventing costly repairs.  As time passes, this technology will become more common across all industries.  Thermal imaging is here to stay.

Jeff Cardile

Professional Inspector, TREC 9266

Infrared Certified#040800182 

Lookout Capital Inspections

Texaslookout.com

Importance of an Appraisal...

An APPRAISER is a professional person who can tell you what your home is worth. The appraiser will come to your house and list the number and size of the rooms and any extras, such as a fireplace, porch, pool, or garage. The appraiser will compare your home and property to other homes that have sold recently with similar features. The appraiser then estimates that your home might sell for approximately the same amount of money as similar homes. This is called an "appraisal." In short, an appraisal is the estimated amount of money your home may sell for.

What is a Real Estate Appraiser?

A real estate appraiser is an impartial, independent third party who provides an objective report on the estimate of value of real estate. The appraisal is supported by the collection and analysis of data.

A real estate appraiser values real property (land, houses, buildings, etc.), not personal property (cars, jewelry, furniture). The appraiser determines the physical characteristics of the property to be appraised and estimates value based upon three common approaches to value:

• Sales Comparison Market Approach
• Cost Approach
• Income Capitalization Approach

A state licensed real estate appraiser meets nationally established standards for education and experience, and successfully passes a comprehensive examination. A state licensed appraiser conforms to national ethical and professional standards, which establish the standards for ethics, competency and confidentiality governing professional appraisal practices.

When Should I Use An Appraiser?

You will likely need the services of a real estate appraiser whenever an estimate of the value of your real estate is required. Most commonly, this occurs when you apply for a real estate loan, either to purchase or refinance your home. You may also need a real estate appraiser to assist in the appeal of your property tax assessment, for insurance purposes, for probate and estate settlements or other reasons.

What's My Property Worth?

It is common to ask the appraiser this question as soon as the appraiser has inspected the property. The truth is at that time the appraiser doesn't yet know. The inspection is the first step of many that the appraiser must complete before a value is determined.

The appraiser measures the house from the outside to determine square footage. The appraiser takes notes concern- ing the features of your house such as room layout, number of bedrooms, baths, etc. The appraiser also makes a determination of the general condition, appeal and functional layout of your house. All of these items are taken into consideration in the appraisal report.

How Long Does an Appraisal Take?

The physical inspection of a typical property usually takes about twenty to forty-five minutes. Sometimes an inspection can take longer if the house is difficult to measure or has some unique features that require additional investigation by the appraiser.

After the initial inspection of the property the appraiser spends time examining or analyzing the neighborhood or area. The purpose of this is to search for other properties that are similar to the property being appraised that have sold recently and examine neighborhood influences. When the fieldwork is finished, the appraiser completes the report at his office.

What Does The Appraiser Need to Know?

To help the appraiser complete the appraisal, you can provide some information that is helpful. Please tell the appraiser of any previous sale on the property within the last 12 months. Indicate if there is a pending contract to purchase on the property. Does the property have any right of way or other easements? Is there structural damage, or water leakage in the house? Is the property in a flood zone? Basically, inform the appraiser about any hidden features or detriments to the property.

How do I choose an Appraiser?

Although federal and state laws usually require that the lender must hire the appraiser when the appraisal is to be used for a real estate loan, some lenders will allow you to select an appraiser from their list of approved appraisers. For all other appraisals, you are allowed to select your own appraiser.

Licensed real estate appraisers can be found on the internet or by talking to your friends who have previously used an appraiser. Be sure to interview the appraiser carefully to determine if he or she is licensed and experienced in appraising your type of property.

Most licensed appraisers will provide an advance estimate of the cost to perform the appraisal, and many will commit to a fixed fee for the appraisal. It is always wise to obtain a written contract for services which includes a description of what is to be appraised, the scope of the assignment, the anticipated delivery date, the fee and terms of payment.

Home Inspections Are Not Appraisals.

A property appraisal is a document that provides an estimate of a property's market value. Lenders require appraisals on properties prior to loan approval to ensure that the mortgage loan amount is not more than the value of the property. Appraisals are for lenders; home inspections are for buyers.

The Federal Housing Authority (FHA), which is part of the U.S. Department of Housing and Urban Development (HUD), requires lenders to obtain appraisals of properties securing FHA-insured loans. FHA requires appraisals for three reasons:

1. To estimate the market value of the property.
2. To make sure that the property meets FHA minimum property requirements/standards (health and safety).
3. To make sure that the property is marketable.

The FHA appraisal process will note property deficiencies that are readily observable and found not in compliance with HUD's minimum property requirements/standards. These deficiencies may not be the same as those items noted in a home inspection report.

PROVIDED TO US FROM Dan Bourland, Realtor, e-Pro, SRES