Home Repairs You Shouldn't Put Off: Part 2

Earlier this week we started talking about some household repairs you should never ignore. Here is the continuation of that list:

Rodent infestations
Rodents – rats, mice and the like – not only carry some particularly nasty (and deadly) diseases such as salmonella, plague and hantavirus, but they can also cause house fires by chewing through insulation and wiring.
If you hear scampering, find droppings or nests, or have an actual sighting of pests, there are traps and baits you can purchase, or better yet – go ahead and call in an exterminator.

Dirty or Missing Air-Conditioner Filters
Here’s one of those fixes that’s actually NOT going to cost you a lot, but it WILL save you a lot in the long run. An air conditioner works by warm air passing over the coils, causing condensation. A dirty or missing filter lets dirt and dust settle on the coils, creating mud, and providing the perfect medium for mold to grow and blow all over your house.

Furthermore, if there’s enough of the mud, it can block air from getting into the system, which could create a fire. Many AC failures can be credited to this simple, cheap maintenance oversight. "With a $2 filter," Claude McGavic of Inspection Associates in Bradenton, Fla. told MSN. "you can preserve a $6,000 air-conditioning system."

So get into a habit during those months you use your air conditioner: set a date on the calendar (like the first of the month), and replace the filter. And be sure to get your cooling system checked annually.

Next up: Peeling paint and furnace problems.

For the full story, visit http://realestate.msn.com/article.aspx?cp-documentid=13108042

Home Repairs You Shouldn't Put Off: Part 1

Owning a home is a costly endeavor, there’s no doubt about that. So, we as homeowners often have to weigh the importance and necessity of certain repairs, upgrades and other household-related expenses.  But MSN Real Estate has a great report about seven household repairs you shouldn’t put off. Ignoring these fixes could end up costing you far more money down the road, or could risk the safety of you and your family.

This week we’ll list the seven repairs and suggest some fixes. Today we’ll tackle the first two, starting with one of the most destructive:

Water Leaks
These can appear in several forms – a stain on a ceiling or wall, white powder, a musty smell, or even a rocking toilet. No matter how it appears, it is one of the most destructive forces to a home, leading to dry rot, rot, mold and termite infestations. Further, it can weaken the integrity of the infrastructure of your home, causing roof and wall collapses and cracks in your foundation.

Stopping the leak as soon as possible is critical, then make the repair and ensure the problem doesn’t reoccur. Even if these steps cost a lot of money, ignoring the problem will cost more in the long run. Says the MSN report: “…if your roof is aged and failing, you may need to have it replaced. That's expensive, but not as bad as replacing the trusses and underlying roof structure that can rot away if not protected.”

Flickering/Dimming Lights
Does this sound familiar: Your microwave or your refrigerator cycles on, and your lights dim a bit? This could be a sign of poor wiring or overloading of a circuit, both of which could lead to a fire.

"A lot of older homes have only one or two circuits in the kitchen," inspector Jason Farrier of Elite Home Inspections in Phoenix told MSN. "People will update the kitchen but still have all the appliances running off those two circuits." Farrier went on to say that it’s safer to have at least four circuits in the kitchen: two for countertop appliances, one for the dishwasher/garbage disposal and another strictly for the microwave.

One short-term option to fix the overloading problem would be to distribute the appliances more evenly among the circuits, or taking care not to run more than one appliance at a time. But, the best long-term solution is to have your wiring upgraded and/or more circuits added by an electrician.

One important point to note: Homes built between 1965 and 1973 may contain aluminum wiring and flickering lights can be a sign of faltering connections. If a wiring upgrade isn't something you can afford, the U.S. Consumer Product Safety Commission recommends making this type of wiring safer by using special crimp connectors rather than the usual twist-on style. For more information, see the commission's Web site at www.cpsc.gov.

Next up: Rodent infestations and dirty or missing air-conditioning filters.

For the full story, visit http://realestate.msn.com/article.aspx?cp-documentid=13108042

Make A Green Change to Your Home for Earth Day

In honor of Earth Day tomorrow, consider doing at least one thing to make your home and lifestyle more “green”. Not only will you reduce your impact on the environment, but you’ll also save yourself some money.

It can be something as simple as changing a few light bulbs in your home to energy efficient bulbs, making sure you turn out lights when you leave a room, or simply unplugging appliances and devices in your home that aren’t currently in use to cut down on the latent power drain.

And trees and shrubs added to your outdoor landscape – strategically positioned to absorb some of the summer heat – can provide shade to your home and reduce cooling costs. Don’t forget that planting your own vegetable or fruit garden will provide you with months of food at significantly lower cost than what you’d pay for it at the grocery store.

If you’re looking for a larger-scale project, the National Association of Home Builders (NAHB) says that extra insulation in the attic and a new energy-efficient water heater or heating/air conditioning unit are the improvements with the biggest bang for the buck. Applying for the Tax Code Section 25C energy-efficiency credit can return up to $500 of the cost of each project.

NAHB also says that Tax Code Section 25D credit is available for 30 percent of the cost of qualified solar-, wind- and geothermal-powered renewable energy units, and that there are state and city programs that tack on additional incentives. Finally, don’t forget that $8,000 tax credit for first-time homebuyers, which can be used to add green upgrades to new homes that will reduce energy bills for years to come.
 
Learn about the energy efficiency tax incentives at www.nahb.org/efficiencytaxcredit.  Find links to additional state and local incentives for renewable energy at www.dsireusa.org. Get the details of the $8,000 new home credit for first-time buyers at www.federalhousingtaxcredit.org. And get the facts on green building and remodeling at www.nahbgreen.org.

In the comments section, tell us what you've done to make your home and lifestyle more "green".

Foreclosures Up In March But More Lenders Sign On To Help Homeowners

According to data released today by RealtyTrac, foreclosure filings spiked in March by 17 percent over the prior month. But the news isn’t all bad – the Treasury Department announced that six major lenders have signed on to participate in the Obama Administration’s $75 billion foreclosure prevention program and more are expected to follow.

RealtyTrac, which includes more than 90 percent of U.S. households in its studies, counted more than 340,000 foreclosure filings nationwide last month. Filings include default and auction sale notices and bank repossessions. This number is up 46 percent from a year ago.

“Much of this activity was in new foreclosure actions, it suggests that many lenders and servicers were holding off on executing foreclosures due to industry moratoria and legislative delays,” said James J. Saccacio, chief executive officer of RealtyTrac.

RealtyTrac’s data was released on the heels of Treasury’s announcement that Chase Home Finance (a unit of JP Morgan Chase), CitiMortgage (a unit of Citigroup), GMAC Mortgage, Saxon Mortgage Services, Select Portfolio Servicing and Wells Fargo have joined the program that provides incentive payments to lenders who lower the mortgage payments of struggling borrowers.

The administration hopes to help as many as 4 million troubled homeowners, but it may be months before the program has an impact on foreclosure numbers.

Think you may qualify for the administration’s foreclosure prevention program? www.MakingHomeAffordable.gov has a self-assessment tool that will help you determine if you are eligible.

Have You Checked Your Credit Report Lately?

Do you know what's on your credit report? It's a lot easier to find out than you might think. Many Americans not only don't know what their credit reports say, but they also don't know that they're entitled to find out -- for free.

Each of the three major credit reporting agencies -- Equifax, Experian and TransUnion -- will provide you with one free credit report per year. So, by spacing the requests out every four months (keep track of it on your calendar or computer and set yourself reminders), you can effectively monitor your credit record throughout the year and keep track of any questionable issues that could negatively affect your score.

There are a lot of sites out there advertising that they will provide you with a free credit report, however, AHAA recommends that you only use the official (and safest) site for obtaining your free credit report -- www.annualcreditreport.com.

Annualcreditreport.com also has a wonderful FAQ section that can answer any questions you may have before and after you view your report.

Little-Known Tax Breaks That Could, But Probably Won't, Save You Money

The April 15 income tax deadline is just around the corner, so what better time than now for a little tax humor? Thanks to Newsweek, Marc Luscome of tax research firm CCH, and Bob Scharin, a tax analyst with Thomson Reuters tax business, below are some little-known provisions in the tax code that may not save you any money on your taxes, but if nothing else will certainly entertain you.

Repairs to Your Whaling Boat
Alaskan whaling boat captains get a $10,000 deduction for expenses made toward repairs and upkeep on their boats and equipment, thanks to a small provision in the American Jobs Creation Act of 2004. 

Your Gambling Wins, Provided You Don’t Live Here
Money won on horse or dog races in the United States by foreign nationals who don’t live in this country is exempt from U.S. taxes. That can be a substantial savings considering that Americans pay a 30 percent withholding tax on such winnings. This tax break on legal activities, of course, does not apply to any taxes you may owe for any illegal activity. (Yes, just as there are little known and unusual tax breaks, here is an unusual tax hit.)  Anyone earning income from bribes, drug deals, kickbacks or theft must pay taxes on that income.

Expenses For Your “Medical Necessities”
A favorite of tax lawyers is the medical expense deduction, which has been on the books since 1962. At the time, the IRS allowed parents to deduct their kids’ clarinet and music lessons because orthodontists claimed they would help with kids' overbites. Now, thanks to the agency’s generous interpretation, a doctor’s note can turn air conditioners, swimming pools, hot tubs, alternative therapy consultations, diet dinners and home remodeling into “medical expense” deductions.

Your Catalog of Songs
Songwriters who are selling their copyrighted catalog of songs may claim they are selling a “capital asset,” which is subject to the capital gains rate (maximum of 15 percent) versus the maximum 35 percent income-tax rate.

Those Fishing-Tackle Boxes You Make
Okay, if you happen to make fishing-tackle boxes, you probably already know about this one. However, for those who don’t – a little history: Prior to 2004, fishing-tackle box-makers had to pay a 10 percent excise tax on their boxes, which drove up costs. So, sport fishermen turned to less-expensive plastic sewing boxes to store their gear. In 2004, the rate was cut to 3 percent, which amounted to an $11 million savings for the industry over the past five years, and enabled Mom to have her sewing box back (not that she’d want it anymore…)

www.newsweek.com

Pending Home Sales Up in February

Low mortgage rates and first-time homebuyer tax credits are apparently giving the housing market a bit of a boost. The National Association of Realtors (NAR) announced today that pending home sales of previously occupied homes rose 2.1 percent in February over January’s record low. Pending home sales are based on signed contracts, so they are a good indicator of future sales.

“The drop in mortgage interest rates and home prices mean the buying power of a typical family has never been better,” said NAR President Charles McMillan. “If you have a good job and long-term plans, it’s unlikely that you’ll find a much better time to buy a home. This is especially true for first-time buyers who can qualify for an $8,000 tax credit this year, have a great selection of homes to choose from, and are in a favorable negotiating position.”