I want to extend a personal invitation to join us here in Omaha, home of Warren Buffet (one of the world’s richest men) and the College World Series.
Now, I’m not just name-dropping here for the heck of it. Warren Buffet is one of the shrewdest people on the planet, and he knows all about the great benefits of living in Omaha.
But, lest you think I’m just blowing smoke, why don’t I tell you what the rest of the nation is saying about Omaha and give you links so you can check out the facts for yourself?
A pretty impressive list from respected sources, isn’t it? Now, let me back up those facts with my personal experience.
Omaha has an unbelievably wonderful quality of life. Food’s inexpensive…you can afford to put gas in your car…you can buy a house at reasonable prices…and, if you’re a businessperson, we’ve got lots of affordable sites available for you!
Baby, you gotta contact me right now at 402.680.2500. What in heck are you waiting for? Omaha rocks, and we want you to rock along with us!
Which Home Improvements Give You the Best Return on Investment (ROI)?
Below I provide you with the best home improvements to make in terms of their Return on Investment (ROI). Choose the ones that best fit your situation and your budget!
Natural Gas Furnace Replacement
The ROI on furnace replacement can reach as high as 100%. How can that be? Well, of course, it depends on how long you keep the house before you sell it. In the first year, the ROI of a new furnace may be only around 10%.
However, consider that a new furnace adds to the resale value of your home and makes your home very attractive to potential buyers. And, then, if you look at the money saved in utility bills over, say, a five-to-ten year period, well, then you’ll be hitting that ROI of 100%!
Painting
Amazingly, a new coat of paint on the exterior of your home can give you an ROI of 90%. Dollar for dollar, it’s one of the most cost-effective home improvement projects you can undertake!
Depending on the quality of exterior paint, it can cost you anywhere from $25 to $50 a gallon. To give you an idea of the overall costs, the average 3,000-square-foot home takes about 15 gallons of paint. So, you may pay anywhere from around $375 to $1,500.
Looking at the interior, you’ll likely pay anywhere from $12.00 to $50 a gallon, again depending on the quality of the paint. Plus, of course, you have the cost of rollers, brushes, drop cloths, etc.
If you do the work yourself, it’ll likely cost you around $300.00. If you hire a professional, double the cost. In either case, you’ll end up with an ROI of around 75%.
Vinyl Siding Replacement
If appropriate, siding is a great place to start your home improvement projects. It has an ROI of around 88%.
Nearly everyone loves vinyl siding for two reasons – it’s low maintenance and has great durability. Plus, of course, the shiny appearance adds the perception of increased value in the eyes of potential buyers.
And you have two options for putting it on. If you have the time and talent, you can do it yourself for around $1.00 per square foot!
If you have neither the time nor the talent, then it’s time to call in a professional. Depending on your area and the size of your home, the job may cost you around $7.00 per square foot and anywhere from $3,000 to $12,000.
Replacement Windows
New windows have an ROI of 80% plus. It’s true that they are expensive, running $300 for a basic design up to $1,000 for custom designs. However, they have tremendous value in terms of either maintaining the house or increasing its value for sale.
Chosen wisely, replacement windows can really improve the look of your home from the exterior and in the interior. In addition, of course, they can really save on heating bills since old windows are great leakers of energy.
Kitchen Remodeling
Remodeling your kitchen can give you an ROI of around 80%. Now, it’s true that such a remodel can be expensive; the average cost is about $17,000.
However, you must remember that the condition of the kitchen is very often the deciding “sale/no sale” factor in the minds of potential buyers!
So, seriously consider this remodeling project. Add new countertops, cabinets and appliances.
If you have the time and skills, do much of the work yourself. Plus, of course, shop all the sales to get the lowest price on any appliances like stoves and refrigerators.
Roof Replacement
Replacing a roof has an ROI from around 60% to 65%. Depending on the nature of the replacement, it can cost about $100 to replace a few asphalt shingles on up to around $100 to $350 for a 10 x 10 foot square.
An overall re-roofing can cost anywhere from $6,000 to $14,000, depending on the size of the roof and the nature of the shingles (asphalt, wooden, etc.).
Now, while roof repair or replacement doesn’t have as high an ROI as some other home improvements, it’s definitely important because buyers will back quickly away from the purchase of a home that needs roof repairs. So, put this one high on your list!
Bathroom Remodeling
The ROI on a bathroom remodel ranges up to 78-80%. The average remodel costs in the $12,000 to $13,000 range. If you go “whole hog,” costs can range up past $30,000.
However, you don’t have to do all the remodeling at one time, and you may be able to make some of the changes yourself.
For example, new tile or linoleum can up down for anywhere from $100 to $1,000, depending on the size of the bathroom and the materials used. New light fixtures can also be an inexpensive do-it-yourself project.
So, there you have it – a list of home improvements that will give you the best return on investment! If you’d like to discuss the ROI on other home improvements, contact me today at bill.black@cbshome.com or 402.680.2500 and I’ll give you all the information you need!
When the feds introduced the $8,000 Home Tax Credit program for first-time home buyers, there were some skeptics out there. They thought it wouldn’t do much good.
How wrong they were!
The program is so popular that it’s been extended into 2009 and expanded to include second-time home buyers!
Now, we know you want to get into a new home fast so here are the details on the program.
If you’re a first-time home buyer, the tax credit remains the same - $8,000.
However, there’s been a wonderful change in terms of the income range. It’s been expanded as well!
Now, the credit doesn’t begin to phase out until your modified adjusted gross income exceeds $125,000 for single filers or $225,000 for joint filers. The old phase-out thresholds were $75,000 and $125,000, respectively.
And now for even better news if you already own a home but want to build a new one. The program has been expanded to cover you if you’ve lived in your current principal residences for at least five out of the last eight years. Your maximum credit will be $6,500. Yup, it’s lower than that of a first-time home buyer, but, what the heck, it’s still a substantial amount of money!
So, whether you’re a first-time home buyer or a current owner, contact us right now at 402.680.2500 to learn the details of the program!
Don’t wait! It takes six months to get that new home built so the time for action is now!
Believe me, great curb appeal is everything when it comes to getting potential buyers into your home! Plus, outstanding curb appeal can not only make the sale but increase your profit from that sale as well!
The benefits don’t stop there. Curb appeal can actually be achieved with very little money (depending on the size and condition of the home, of course). So, don’t think of it as cash spent; it’s actually an investment in more profit! Below, I provide you some very low-cost and sensible methods for making your home “shine!”
Clean – Then Clean Again!
I don’t know about you but when I see dirt and grime in a house, it’s a turn off because, as a buyer, I certainly don’t want to end up cleaning it all out! But, there’s another negative to a messy house – it tells potential buyers, “The owner doesn’t seem to care about his property, so why should I care?” Granted, this is not always a fair conclusion, but, remember, we’re dealing with the “emotional” side of the buyer. What they see is what forms their opinion of a property.
So, don’t risk the possibility of a negative opinion! From top to bottom, clean your home or have it cleaned by a professional service. Especially pay attention to getting rid of any odors! Unpleasant smells have a particularly negative impact upon potential buyers since odors create an immediate impact upon the most primitive and powerful part of the brain.
Get Out the Paint Brush…Roller…Sprayer!
The big temptation here is to go with the cheapest paint possible. Don’t give in to this urge. Go with good quality paint for both the interior and exterior! It simply looks better and emphasizes the quality of care you’ve put into your home. Buyers will notice that!
Roll Out the “Red” Carpet!
If your present carpet is at all worn or threadbare, consider replacing it with new carpet. I know, I know, it can be expensive, but new carpet can also add several thousand dollars to the final sale price! Once again, think of it as an investment, not as an expense. At a minimum, if your current carpet is in good shape, have it professionally cleaned to make it look even better.
Repair All the Little Things!
By themselves, a missing knob, a crooked gutter, an ill-fitting door, etc., don’t have much of a negative impact upon a buyer’s perceptions. However, when they see all these things together, they definitely get a sour attitude very quickly. So, repair all the little things to enhance exterior and interior curb appeal. Replace/repair gutters, rotted wood, broken door latches, leaky faucets, etc.
Manicure That Lawn!
A mowed and edged lawn really enhances the curb appeal of your home and shows potential buyers that you take good care of your place. To really put the “icing” on the curb appeal “cake,” add plantings like flowers, bushes, etc. They add color and delightful smells. :)
If you really want to make your home stand out in terms of terms of exterior and interior, consider hiring an accredited, professional “home stager” (ASP).
What’s a Home Stager?
Home stagers work with the “flow” of a home. Think of them as similar to set designers for plays and movies. They know how to “set the stage” in exactly the right way to impress any potential buyer visiting your home.
Overall, they eliminate clutter, arrange furniture, and help you enhance interior/exterior curb appeal in every way possible. Their charges may be on an hourly basis or a flat fee.
For information on home staging professionals, google “Home Staging Professionals” to see who’s available in your area. Or, check out these sources on the Internet:
Believe me, your down payment on a new home affects nearly everything you can think of in the buying process - the loan programs you're able to qualify for, the size of the interest rate, the amount of closing costs, etc.
The basic rule is this: the more you have to put down on a down payment for a home, the more options you have!
This rule is true because, like all lenders, mortgage lenders dislike risk. They're in the business of making money by lending money. So, the more money you put down, the lower the risk, and the more lenders like your deal.
By the way, when you combine a good-to-excellent credit score with a large down payment, you'll definitely get positive attention from loan officers!
Acceptable Sources for Down Payment Monies
In general, lenders want to see adequate funds available for a period of at least sixty (60) days in your account. The usual methods of proof of these funds are either a Verification of Deposit form or two months' worth of your most recent bank account statements.
So, if you're person who keeps money "under the mattress" or somewhere in your home, this isn't acceptable. It has to be deposited in an account (bank or investment) for at least two months (preferably longer).
In technical terms, this is called "seasoning." And the reason behind it is this: First, by having money in an account, it shows you have to ability and discipline to save money and, thus, are a good risk from the lender's point of view. Second, it demonstrates that the money is likely yours and not a personal loan from a family member or a friend. Lastly, and obviously, it shows you have enough money on hand for a down payment.
In general, here are sources you can use for a down payment:
- Checking account
- Savings account
- 401k account
- IRA account (have to meet specific guidelines)
- Money market account
- Stocks
- Bonds
- Mutual funds
- Certificates of deposit and other liquid assets.
- Sale of an asset, etc.
Frankly, in this New Age of Frugality, the safest method is to simply save the money for a down payment. This teaches you financial discipline which is good for all aspects of your life, and it means you don't have to rob other assets to pay the down payment.
I'd be happy to discuss and suggest many different ways of obtaining down payment money. Contact me at bill.black@cbshome.com or call me at 402.680.2500 today!
An $8,000 Tax Credit Is Yours If You’re Buying Your First Home!
Believe me, it’s a great time to become a first-time home owner. Why? Because, after the mortgage market crashed, the feds wanted to help us all out and get the whole system working again.
So, to re-energize the market, they hit upon a tax-credit program for first-time home buyers – an $8,000 one! And then they got even more generous when they decided you do not have to repay the $8,000!
The formal name of the program is The American Recovery and Reinvestment Act of 2009. Now, as you might expect because it’s a federal program, there are guidelines you’ll have to follow in order to qualify for and participate in the program. Those guidelines are described below:
Guideline 1
For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
Guideline 2
The tax credit is equal to 10% of the home’s purchase price up to a maximum of $8,000.
Guideline 3
The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009. Remember, you only have four months left to enjoy the benefits of the tax credit!
Guideline 4 If you’re a single taxpayer with an income up to $75,000, you qualify for the full tax credit. And, if you happen to be a married couple with incomes up to $150,000 (filing a joint return) you also qualify for the full tax credit.
What occurs if your income goes over those limits? The rule is this: the tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return.
According to the government, "the phase-out range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts."
Remember, this tax incentive is a true tax credit; you don't have to pay it back!
However, you must use the residence as a principal residence for at least three years or face recapture of the tax credit amount. Now here two questions I know you want answered.
What Kind of Home Qualifies for the Tax Credit?
You can buy any home that you’ll use as your principal residence! This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.
Is the Application for the Tax Credit Complicated?
Not at all! It's as easy as it ever gets with the government. You simply claim the tax credit on your federal income tax return.
To get specific, you’ll need to complete IRS Form 5405 to determine your tax credit amount. Then, claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns).
There’s no requirement for any other applications or forms. Better yet, no pre-approval is necessary!
One Disclaimer: You can't claim the credit on Form 5405 for an intended purchase at some future date; it must be a completed purchase!
I’d love to help you participate in this wonderful program. Contact me at 402.680.2500 so I can answer any questions you have or provide you with more information! Remember, it ends December 1st of this year!
I want to extend a personal invitation to join us here in Omaha, home of Warren Buffet (one of the world’s richest men) and the College World Series.
Omaha has an unbelievably wonderful quality of life. Food’s inexpensive…you can afford to put gas in your car…you can buy a house at reasonable prices…and, if you’re a businessperson, we’ve got lots of affordable sites available for you!
