2011 Energy Tax Credits: What You Need to Know to Collect

2011 Energy Tax Credits: What You Need to Know to Collect  2011 Energy Tax Credits: What You Need to Know to Collect By: Donna Fuscaldo Published: January 23, 2012 They're not as much as they used to be, but there are still energy tax credits to be had for upgrades made in 2011. Other limits on IRS energy tax credits besides $500 max Credit only extends to 10% of the cost (not the 30% of yesteryear), so you have to spend $5,000 to get $500. $500 is a lifetime limit. If you pocketed $500 or more in 2009 and 2010 combined, you’re not entitled to any more money for energy-efficient improvements in the above seven categories. But if you took $300 in the last two years, for example, you can get up to $200 in 2011. With some systems, your cap is even lower than $500. $500 is the max for all qualified improvements combined. Certain systems capped below $500 No matter how much you spend on some approved items, you’ll never get the $500 credit--though you could combine some of these: System Cap New windows $200 max (and no, not per window—overall) Advanced main air-circulating fan $50 max Qualified natural gas, propane, or oil furnace or hot water boiler $150 max Approved electric and geothermal heat pumps; central air-conditioning systems; and natural gas, propane, or oil water heaters $300 max And not all products are created equal in the feds' eyes. Improvements have to meet IRS energy-efficiency standards to qualify for the tax credit. In the case of boilers and furnaces, they have to meet the 95 AFUE standard. EnergyStar.gov has the details. Tax credits cover installation—sometimes Rule of thumb: If installation is either particularly difficult or critical to safe functioning, the credit will cover labor. Otherwise, not. (Yes, you’d have to be pretty handy to install your own windows and roof, but the feds put these squarely in the “not covered” category.) Installation covered for: Biomass stoves HVAC Non-solar water heaters Installation not covered for: Insulation Roofs Windows, doors, and skylights How to claim the 2011 energy tax credit Determine if the system you installed is eligible for the credits. Go to Energy Star's websitefor detailed descriptions of what’s covered; then talk to your vendor. Save system receipts and manufacturer certifications. You’ll need them if the IRS asks for proof. File IRS Form 5695 with the rest of your tax forms in 2012. This article provides general information about tax laws and consequences, but isn’t intended to be relied upon as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice, and remember that tax laws may vary by jurisdiction. Visit houselogic.com for more articles like this. Copyright 2012 NATIONAL ASSOCIATION OF REALTORS®

Free List of Whidbey Island Homes for Sale

Oak Harbor Homes for Sale Anacortes Homes for Sale Search All Homes For Sale Free List of Foreclosed Homes For Sale Search Homes for Rent What is your home worth? Client Services Coldwell Banker Koetje Real Estate 360-675-5915 info@cbkoetje.com

Whidbey Island Real Estate Market Update 12/27/2011

As we approach the end of 2011, we wanted to give you a Whidbey Island Real Estate update. Since we are still in December, the final results won't be available  to be posted for a few weeks, but I thought I would give you a taste of the real estate market here on beautiful Whidbey Island.  I will show you a snapshot of total sales and median prices for the three areas of Whidbey Island; North, Middle, and South.  In my next post I will include graphs and explanations for the total 2011 sales.

• North Whidbey Island, which includes every sale north of Libbey Rd, was down both in total transactions and median sales price. Sales were down approximately 6% from 2010 and the median sales prices was down approximately 5%.
• Central Whidbey Island saw a year where the sales increased approximately 6% but the  median sales price remained about the same as 2010.
• South Whidbey Island experienced an increase in sales of approximately 1.5% but declined in median sales price of close to 13%.

As we have always been told, real estate is very local. These few statistics only give a snapshot of the overall market in these areas. Individual homes and locations can vary by quite a large differential. Your Coldwell Banker Koetje Real Estate professional can help you with your particular property's value and ability to be sold. I will be posting a much more in-depth Whidbey Island Real Estate market report in a few weeks.

Whidbey Island Real Estate and Oak Harbor Homes For Sale

Buying a Home Now Is A No-Brainer

Is now the right time to invest in a house?
Trick question. Actually, it's two questions.
Question No. 1: Is now the time to buy?
Question No. 2: Is buying a house a good investment?



The first answer is easy: With a few exceptions, if you have 20% to put down and good credit, now is a great time to buy. That's been the case all year, and I'd argue that we're probably closer to the end than to the beginning of the really great time. Let me explain.

Back in January home prices had dropped 28% from their peak. More important, interest rates were at historical lows. By locking in a mortgage for 15 or 30 years on a value-priced home, you were getting an incredible deal, even if home prices decreased.

At the time, I thought that prices and rates were more likely to rise than fall. I was half right: Home values have been inching up since the spring, but mortgage rates, incredibly, dropped further.

By August (the latest numbers available) the median home price had risen 1% over a year ago, but 30-year rates had dropped a half-point to 4.5%. Assuming 20% down and a 30-year mortgage, the total cost of owning a median-priced home is now down $16,000 from a year ago.

Home values may waffle over the coming year, but because Americans take out such large, long mortgages, rates are what really matter. And I am more likely to grow hair than see 30-year mortgage rates drop below 4%. It's far more likely that rates (and the cost of ownership) will rise.

Now for question No. 2: Is a house a good investment?

First, it depends on what you mean by investment. If your definition is strictly about dollars returned, a house probably won't be a great use of your capital. If you bought the median-priced house today with 20% down, to recoup your total costs (and I'm not including property taxes and maintenance here) over three decades, the home's value would have to rise about 3% a year.

That's likely, but you'll almost certainly (we all hope) do much better than that in the stock market. The fact is, however, that that's the normal case for housing; the booms that began after World War II and in the late 1990s were the exceptions.

That said, the key point to remember is this: Buying a fairly priced home at today's rates may be the best deal you will ever get. And who knows? It may even turn out to be a good investment.



Courtesy of CNNMoney

Yes, you can sell your Whidbey Island home during the holidays

The Holiday season isn't the best time to sell your Whidbey Island home, but if you have no choice, there are reasons to be merry. Anyone house-hunting on Whidbey Island on Thanksgiving or Christmas weekend must have a good reason: You are less likely to waste time on casual buyers and you won't have much competition.

Try these expert tips:

     Decorate tastefully.
Decking the halls is fun, but don't overdo it. Buyers want to see the home, not your mega-light display or 8 foot Christmas tree. Opt for neutral decor.

     Add curb appeal.
Replace summer plants with evergreen perennials such as hellebores or witch hazel. Bare trees expose your home, so touch up paint and clean gutters. Clear walkways of snow and ice.

     Price for a fire sale.
You don't have time to mess around with price reductions. Price you home 10% to 15% below comparable homes on the market.

     Hire a good agent.
You'll need a Whidbey Island professional who can show your home at a moment's notice and target buyers on a deadline.

Please contact us for other suggestions and pointers to help you achieve your goal of getting your home sold.

Inflation: How will it affect the Whidbey Island Housing Market

"INFLATION IS WHEN YOU PAY $15 FOR THE $10 HAIRCUT YOU USED TO GET FOR $5 WHEN YOU HAD HAIR." - Sam Ewing. And regardless of how much hair you have these days... one thing we can watch to help a get sense of where rates are going is inflation.

Right now, the headline numbers in the US show little inflation overall... but we are already seeing significant inflation in particular items like commodities, food, and oil - which are being driven by a weak US Dollar, and increasing demand from emerging countries like China and India. In addition, the global market reacted late last week to higher-than-expected inflation in China. This is important to us because Bonds and home loan rates hate inflation, no matter where the whiff of it comes from.

Here’s why. Think of inflation as a hot air balloon and rates as the basket under that balloon. As the balloon (or inflation) rises, the basket (or rates) must rise as well.

So, if inflation moves higher in China, their government has to raise rates to fight inflation. And if rates move higher in China, global investors seeking the highest yield will move away from the relatively meager returns seen in US Bonds - and move their Bond buying money into juicier yields found abroad.

There are so many opinions by so many smart people on both sides of the inflation argument, but right now it is all about what the Bond market thinks. And the recent market action shows just how quickly sentiment in the market can change. Remember, it was just a few weeks ago that fears and whispers of deflation helped the Bond market - and home loan rates - improve.

But now with the Fed intent on avoiding deflation and in fact creating inflation through another round of Quantitative Easing (or QE2), the entire Bond market - including Mortgage Bonds - have began to react negatively. Remember, Quantitative Easing is the concept of the Fed becoming a buyer of Treasuries and Bonds, in a bid to stimulate the economy by:

• Creating inflation


• Lowering the unemployment rate


• Raising Stock prices

While those goals may be good for the overall economy, we need to remember that all three are very unfriendly to Mortgage Bonds and home loan rates.

The good news is, despite ending the week worse than where they started, home loan rates are still near historic lows for the time being. If you or someone you know is looking to take advantage of low rates, now is the time. Please call (360-675-5811) or email me today to get started.

Info courtesy of: AlaskaUSA Mortgage

Rolling Hills Oak Harbor WA

Rolling Hills in Oak Harbor, WA is a great community. Rolling Hills is located just south of beautiful Oak Harbor, Washington. It’s an outstanding community only a short distance from the beach. This community includes a community pool as well as community access to the beach and a community boat launch. Rolling Hills is a great community to call home.

If you are looking for a home in the Rolling Hills community consider 1592 Allyson St. This is a beautiful 2006 manufactured home. It includes an open floor plan with vaulted ceilings and a large master suite, which includes an outstanding walk-in closet. This home for sale in Rolling Hills also includes a huge deck that has a retractable awning and a fully fenced yard. This large lot includes gorgeous landscaping and a fire pit as well as multiple sheds. The property is located near the boat launch, beach & pool. This home is a fabulous home for relaxing or entertaining. If you would like to view this property please click the photo to the right.



Rolling Hills is a great place to call home. If you are interested in any additional information on this home or any other home please contact me. I would be more than happy to answer any questions you may have Rolling Hills homes for sale and other locations.

Marjorie Cooper, Broker
Coldwell Banker Koetje Real
marjcooper@whidbeyrealestate.com

Tips for Whidbey Island Home Sellers

Most Real Estate agents say spring is the season to sell a Whidbey Island home, but don't rule out fall just yet. There may be fewer buyers, but they tend to be more motivated. The key is to find them fast, because you don't have much time before the holidays kick in and real estate really slows down. Try these selling tips:

Price aggressively. You don't have the luxury of starting high and making incremental price drops. Be competitive - price your home 5% to 15% below comparable homes on the market.

Stage it to sell. Fall is one of the most beautiful times of the year on Whidbey Island, but it can also be hard on home maintenance. Make sure the front yard is clear of leaves, clean out gutters and downspouts, and touch up paint. Incorporate tasteful fall decor. If you have a fireplace, make it the focal point of the room.

Be flexible. Bargain hunters are out in force in the fall, so don't be discouraged by low-ball offers. See them as opportunities to negotiate. If you don't want to come down on price, be creative, such as offering to pay for closing costs or repairs.

What Are The Advantages of a Short Sale in Real Estate

A short sale occurs when a property owner sells real estate for less than the property's loan balance. The property owner typically does this when he becomes upside down on the loan, meaning the property value is less than the loan amount. The lender must give permission for the short sale to proceed. In some instances, the lender forgives the unpaid amount, while in other cases the lender issues a deficiency judgment against the borrower after the short sale.


Lender's Advantage
•When a borrower defaults on a loan, one option for the lender is to foreclose on the property. During a foreclosure process, an angry homeowner might damage the property, refuse to leave or leave prematurely without making necessary arrangements for the care and maintenance of the house. With a short sale, the borrower initiates the process, and if the property is a home, he typically agrees to continue residing at the property. While the lender may receive less than the initial loan balance when the property sells in a short sale or after a foreclosure, the lender could issue a deficiency judgment after the short sale in an attempt to recoup the unpaid balance.

Borrower's Advantage
If a homeowner discovers she is upside down on a loan and needs to move and sell the property, one option is a short sale. In some instances, the lender will agree to forgive the unpaid balance after the sale. Other circumstances can prompt a short sale, such as when the property owner has lost her job and is unable to continue making the house payments yet cannot sell the property for enough to cover the loan balance.

Property owners often perceive short sales in a less negative light than a foreclosure. In some instances, the short sale may be less damaging to the borrower's credit, but it depends on how the lender reports the short sale on the borrower's credit history.


Buyer's Advantage
•Both a foreclosure and a short sale can be a bargain. But in a foreclosure, the buyer is purchasing from the lender, while the buyer is purchasing from the borrower in a short sale. When buying from the property owner, the buyer has more opportunity to learn about the property and receive a full disclosure. Lenders usually do not know the intimate details about a house during a foreclosure, such as, for example, a mold infestation the previous year. A property owner who is the seller is obligated to give a full disclosure on the property to the buyer. A homeowner would be less likely to do malicious damage to the property during a short sale, as opposed to a foreclosure, since he is a party to the transaction as the seller.


Content provided by:
By Ann Johnson, eHow Contributor

First-Time homebuyers stoke demand for smaller homes

First-time homebuyers are contributing to an increase in demand for smaller and less expensive new homes, according to research from economists at the National Association of Home Builders (NAHB). Delving into data from the most recent biennial American Housing Survey, which was conducted by the Department of Housing and Urban Development and the Census Bureau in 2009, the study, "Characteristics of New and First-Time Home Buyers," finds that 41 percent of the 8.4 million households who bought a home between 2007 and 2009 were first-time buyers.

The market share of first-timers was up from 35 percent in both 2005 and 2007. Although some of the demand was fueled by the initial version of the home buyer tax credit in mid-2008, which was specifically targeted to those buying a home for the first time, the upward trend is expected to continue as children of baby boomers - members of a generation that is larger than their parents' - move into their household formation years in the period ahead.

First-time buyers for the two years of the study had an average age of 34, compared to 46 for those trading up. The average income of first-timers was over $67,000, about 30 percent below the average household income of trade-up buyers of $97,000. About half of the first-time buyers earned less than $60,000.

The household size of both first-time and trade-up buyers has been declining, while single-person households have been on the rise. First-timers bought homes with an average market value of about $184,000, compared to more than $297,000 for trade-up buyers. First-time buyers bought homes averaging 1,874 square feet, significantly below the 2,549-square-foot home purchased on average by those trading up. Forty-six percent of first-timers bought homes smaller than 1,500 square feet.

The full report is available here.

Questions?? Questions?? Questions??

Short Sales? Foreclosures? REO Properties? Bank Owned Properties? HUD Repos? What kind of houses are these? Are they good Deals? Should I buy one?

VA? FHA? Conventional Financing? ARMS? 15 Year? 30 Year? What Down payment? Points? Buy Down? Closing Costs? Yikes, what should I do???

There are many opportunities and questions in today’s real estate market. I believe because there are also so many unknowns and choices that consumers are overwhelmed and fearful of making a decision. They don’t want to make the WRONG decision.

Our responsibility is to help you make the decision that is RIGHT for you. We are passionate about this. We want what is best for you. As professionals, we have been guiding home buyers and sellers through this maze for a long time. We are continually educating ourselves on the latest laws, trends, marketing ideas, and technology so that we can answer your questions and point you in the right direction.

If you are a buyer with questions or frustrations, let us help you with some answers. If you are a seller and need some counsel or want to know our marketing strategies, give us a call or email or visit our website. We consider it an honor to be of help to our neighbors and friends. Thank you.

Waiting For Home Prices to Go Lower Can Cost You Money

While it seems that waiting for the price of Whidbey Island homes to go lower before purchasing is a good idea, it may cost you more to wait than to purchase now. Trying to time the bottom of a market, to get the "best deal" is very hard to do. With interest rates at their lowest levels in quite some time, it is in the buyer's best interest to negotiate their best deal now and lock in the mortgage rate that is currently available. It is recommended that you visit with your local Whidbey Island lender and get pre-qualified at today's interest rate and go shopping for your dream home now instead of waiting for prices to go lower.

This video discusses and compares the differences of interest rates. Please feel free to call us with any questions or visit our Whidbey Island website for further information.

Military Tax Credit Extension

We are pleased to present another reminder to all of our military and DOD personel about the Home Buyer's Tax Credit Extension that has been granted to those who qualify. Take the time to view the video and make sure that any of our Military Members who might qualify are aware of this benefit and extension.

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Military Tax Credit Extension

Whidbey Island's Real Estate Company of Choice presents a short video explaining the Home Buyer's Tax Credit Extension for qualified military members. Please forward to any military member that you might know who is considering purchasing a home. We want to get this word out. Thanks.

Whidbey Island Real Estate Condition - Where it Was, Where it Is, and Where it is Headed.

The residential housing marketplace here on Whidbey continues to present a challenging environment. Home sales are still occurring although their number is down considerably from recent peak years. Based upon data provided by the Northwest Multiple Listing Service, 2005 was the peak year for home sales when 1,635 homes sold.

For the prior 12 months ending May 31, 2010 there were 750 home sales reported on the Island. On the basis of home sales activity it would appear that the local housing market bottomed out this past winter. On a 12 month moving average basis, the number of home sales has been slowly rising each month since that time.

In contrast, home prices appear to be still in a state of fluctuation. Some months the reported average sale price (on a 12 month moving average basis) is up a tad; other months it is down slightly. This is probably an indication that prices are stabilizing. It appears that the better properties are selling more quickly and for the most money. Such properties are those that have the best locations and/or are improved with homes that are in good, well-maintained condition, with contemporary floorplans and, of course, fairly priced. On the other hand, the properties having poor locations and/or homes with significant functional obsolescence or that are in poor condition are suffering the most.

It appears that as we go into the summer selling season that the inventory of available homes for sale is rising. The number of foreclosures and bank-owned homes that are competing for buyers will need to dissipate before there can be return to normalcy. Another concern is what impact will the expiration of the $8,000.00 federal tax credit program have on the local housing market.

This continues to be buyers market and will likely remain so for the foreseeable future.

Written by Gregor M. Strohm, ASA