Real Estate Information

Did you know that what you spend on permanent home improvements, such as new windows, can be added into your home's cost basis, or amount of money invested in a home, which reduces capital gains when it comes time to sell. Capital gains are determined by the difference in price from the time a home is purchased and the time it is sold, minus the cost of any permanent improvements. However, the 1997 tax changes virtually eliminates the capital gains tax for most homeowners (the exemption is $250,000 for single homeowners and $500,000 for married homeowners.). Still, it is worthwhile to save all receipts for permanent home improvements just in case. They also can be useful documentation when it comes to marketing your home when you sell. If you ever have any questions about Real Estate please give me a call anytime.

Did you know that the housing boom has lifted home values 51 percent over the past six years. For most of us that means that if our house was destroyed, insurance would pick up only a portion of the cost to rebuild.

For the underinsured, the average shortfall is 21 percent, according to one firm that tracks building prices. Even if you bought a guaranteed replacement or an extended replacement policy, you could still face too-low coverage caps. (For more on being adequately insured, read the story here.)

To see how much coverage you need, have a contractor estimate the cost of rebuilding. And don't forget to check your contents coverage, which is often inadequate.

Did you know that getting rid of that old refrigerator in the garage could save you as much as $150 a year, according to the Environmental Protection Agency. Appliance use comprises about 18% of a typical home’s total energy bill, with the fridge being one of the biggest energy hogs. If any of your appliances is more than 10 years old, the EPA suggests replacing them with energy-efficient models that bear their "Energy Star" logo. Energy Star-qualified appliances use 10%-50% less energy and water than standard models. According to the Energy Star site, if just one in 10 homes used energy-efficient appliances, it would be equivalent to planting 1.7 million new acres of trees. If you have any further questions about reducing energy costs or Real Estate in general please let me know.

Have you ever considered switching to compact fluorescent lightbulbs (CFLs) in your home? I just started to replace the light bulbs in my home with CFLs and I think that they are wonderful. They cost a bit more than regular bulbs, but you'll lower your electric bill and pay less in the long run-CFLs last up to ten times longer than traditional ones. Worried that fluorescents will fill your house with a greenish glow? That's no longer a problem. CFLs produce light comparable, if not better than, regular lightbulbs. You can buy CFLs at most hardware and home stores. To save more on lighting, install dimmer switches and use timers, indoors and out.

If you have any further questions about saving energy or Real Estate in general please let me know.

Here's a Market Update for the month of May. Currently there are 1248 homes for sale in Rochester MN and the surrounding communities. There were 237 homes that sold in May. The average days on market for these homes was 98 and they had a average sale price of $191,015. The area showing the most activity were homes listed in the price range of $130,000 to $170,000. These homes had a average of 84 days on the market.

Studies show that the longer a property stays on the market, the less the seller will net upon the sale. It is very important to price your property at a competitive market value at the signing of your listing contract.

An Overpriced Home:

· Minimizes offers

· Lowers agents response

· Limits qualified buyers

· Lowers showings

· Lowers prospects

· Limits financing

· Wastes advertising dollars

· Nets less for the seller

When you are ready, contact me today for a personal market value analysis of your home. No hassles or obligation - just honest advice on how to get top dollar for your home!

Have you painted recently? Last time I did I learned a lesson about reattaching the switch plates to the walls. I realized that several of the screw holes had been stripped. Normally, this would be a minor annoyance, but this time, I was actually kind of excited because I recently heard about a quick and easy way to fix this little problem. All you need is white glue (Elmer's is perfect, but others will work just as well) and a cotton ball. Soak the cotton in the glue, stuff it in the stripped hole, and let it dry. After a day or so, just use a screwdriver to put a new screw into the spot. It's so easy! Next time you're faced with a stripped socket, try it and see. Next time you're faced with a real estate question or problem, call me! I look forward to helping you.

Have you ever noticed how the most meticulously maintained homes sell very quickly while the "diamonds-in-the-rough" stay on the market forever? Maybe you haven't been paying attention to these things like I have (it's my business, after all), but it's true. The more attention you pay to the way your home looks, the more attention it will get from buyers. I believe it's because today's buyers are too busy to invest in a "fixer-upper." It makes sense, that those who have already invested time in fixing up their homes will be the homeowners who finish first. If you're considering selling your home, call me and we'll finish in first together.

Here's a Market Update for the month of April. Currently there are 1230 homes for sale in the Rochester Minnesota area. There were 256 homes that sold in April. The average days on market for these homes was 83 and had a average sale price of $186,195. The area showing the most activity were homes listed in the price range of $130,000 to $170,000. These homes had a average of 50 days on the market.

According to a report published in March by The National Association of REALTORS®, the country saw a 3.9 percent month-over-month increase in sales of previously owned, existing homes. The Northeast led all regions with a 14.2% rise in sales in February, while existing home sales increased 1.6% in the South and 3.9% in the Midwest. Sales of existing homes remained unchanged in the West. The national median home price dropped to $212,800, which is a 1.3% decline from a year earlier.

Sales of new homes fell for the second consecutive month according to a March report by The Commerce Department. Sales of single-family homes fell 3.9 percent in February to a seasonally adjusted annual rate of 848,000 homes, which is the slowest rate in almost seven years. The decline follows another decline in January. Prices also fell in February to a median new-home price of $250,000, down 0.3 percent from a year ago. The inventory of unsold homes reached 546,000 units.

Economists say the difference between new-home sales and existing-home sales could be explained by a number of factors. New home sales are calculated from contracts actually signed in February when the weather was cold, while existing home sales reflect purchase agreements signed in December and early January, when the weather was unseasonably warmer in most parts of the country.