Realtors® consistenly report that exterior remodeling projects return the most money as a percentage of cost, which is also detailed in the Remodeling Cost vs. Value Report provided via NAR.
Without getting technical and quoting percentages, note that on a national level, "remodels" consisting of wood deck additions and all types of siding replacements – upscale fiber cement, midrange vinyl, and upscale foam-backed vinyl – returned more than 80 percent of project costs upon resale. Something to think about if you're currently selling your home or considering it…
Regardless of the trending market (Inventory or lack thereof) it is always important for a home to make a positive first impression — this translates to quality curb appeal. Realtors® understand what attracts and motivates their Buyer Clients, which is almost always eye candy at first glance. As a homeowner, taking pride in your curb appeal specifically is a smart move to take advantage of prior to putting your house on the market to ensure less time on the market and take the spot light when compared to competition. Show how much you love your home so your future Buyer can love it, too.
While you could go all out by replacing wood decks, siding, windows etc. sometimes just a fresh paint job and sprucing up your garden (or lack of) can be worth thousands — particularly in the Spring and Summer months. However, keep in mind that if there are specific areas in need of a remodel, the return in terms of resale value is almost invaluable and should seriously be considered for [potential] additional profit.
Although most regions follow national trends, the regions that consistently estimate to return a higher percentage of remodeling costs upon resale were the Pacific region of Alaska, California, Hawaii, Oregon and Washington — which is fantastic for us, isn't it?! Fret not if you're not in any of those states because the West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia are ALSO included in this study (Remodeling Cost vs. Value Report) — did we leave anyone out?! 😉
Remember, the resale value of any given remodeling project depends on a variety of factors — the home's overall condition, availability and condition of surrounding properties, location, and regional economic climate and so on. So.. before putting your gloves on, schedule a consult with us since it is literally our job to view every single home on the market and to provide valuable insight into what projects and improvements will make a difference with Buyers in your area(s). 🙂
The Mortgage Debt Relief Act of 2007, provided tax relief to homeowners by exempting them from paying federal taxes on debt forgiven by a lender in a short sale, foreclosure, or loan modification of a primary residence. The act was scheduled to expire on December 31, 2012, meaning that homeowners who had debts forgiven after 2012 would have to pay taxes on the forgiven debt as forgiven debt is normally considered income since the homeowner is no longer obligated to repay it.
However, I am so excited to share with you all that the Mortgage Debt Relief Act has been extended by Congress for another year as part of the “fiscal cliff bill” passed on January 1, 2013.
What this means is that the debt forgiven pursuant to your Short Sale will not count as taxable income if the sale of your home closed or closes in 2013. To qualify for the exclusion, the forgiven or cancelled debt must be used to buy, build or substantially improve your principal residence and be secured by the home.
Per usual, contact your tax advisor to assist in the details as well as identifying what impact HR-8 may have on you and/or your business so they can immediately assist in potential adjustments to your 2013 tax strategies. You may also contact us to promptly schedule a Listing Appointment to expedite your Short Sale! This is an area we are very familiar with and you can feel confident we will take care of you during the entire process.
There will no doubt be much more talk regarding this topic as time progresses, so look out for updates or more details if this is a topic of interest for you. In the meantime, you can always google key terms such as: Mortgage Debt Relief Act, or IRS Publication 4681
Here are a few links:
The HOPE for Homeowners program will refinance mortgages for borrowers who are having difficulty making their payments, but can afford a new loan insured by HUD's Federal Housing Administration (FHA). The program began October 1, 2008 and continues to help families across the country.
Check Out the following websites for additional information & potential solutions:
Any questions, feel free to contact us directly!