Comparing New Homes and Existing Homes

Comparing New Homes and Existing Homes

When choosing what type of home you want to buy, there are several things to consider. One of the most important decisions you will have to make is if you want a newly-built home or an existing pre-owned home. Here are some pros and cons of each to help you make your decision.

When you decide to buy a home before the mortgage rates shoot up to high, one of the main decisions you will need to consider is if you want to purchase a new construction home or a resale home. This can be one of the most essential decisions you will need to make because it can help make you more comfortable with your choice. In order to make an informed decision, knowing the difference between the two types of homes will help you find the one that is right for you.

New Homes Have Modern Safety Features
When you decide to purchase a newly-constructed home, you can expect to find some of the most updated safety features within that home. When there are more safety features, there tends to be fewer hazards and this creates a better overall atmosphere for the entire family.

Existing Homes Often Have More Property
These days, it’s difficult to find a newly-constructed home with a huge backyard or any significant property. This is because today’s homes are typically built closer together. However, with older existing homes, you can usually find a larger yard for the kids or pets to roam around.

Resale Homes are Often Less Expensive
Many of the pre-owned homes that are on the market today have a lower price than the new construction homes. One of the reasons is because they don’t have the modern features that today’s new construction homes have. Also, depending on the state you live in, resale homes may also have less expensive property taxes.

Newly-Constructed Homes are More Efficient
Energy-efficiency is one of the things that today’s home builder has in mind when construction new homes. Today’s appliance manufacturers and window manufacturers make their products to save the consumer on electric and heating bills. With better windows, the new homes are better insulated, too.

Resale Homes have More Traditional Styles
Newly-constructed homes typically do not have the traditional feel that older homes have. You may be missing out on a formal dining room and other special features that are typical of homes from yesteryear.

Existing Homes have More Negotiable Prices
It is generally less difficult to negotiate a price on an existing home because the newly-constructed homes are in higher demand. In many cases, the builder is also involved in the negotiations with a new home so it is difficult to bring the price down too far. This means that you could possibly get more home for your buck by choosing to go with a resale home over a new construction.

Tax Tips for Homeowners

Tax Tips for Homeowners

Tax time is approaching quickly. Do you know the rules and deductions for homeowners?

With tax day approaching very quickly, everybody is looking for ways to save some extra money with legal deductions and other tax tips. If you are a homeowner, you probably already know that you can deduct the interest from your mortgage loan on your taxes. If you are doing your taxes this year or simply want to know about some legal write-offs, here are a few of them you should be aware of.

• You can write off the mortgage interest paid throughout the year on your first and second home as long as the two mortgage loans together do not equal more than $1.1 million. This is for married couples filing jointly. For individuals, the amount is cut in half.

• If you took out your home loan before October 14, 1987, many of the new tax rules do not apply to you when it comes to deducting mortgage interest and so forth.

• You can deduct the interest you pay on your second mortgage if the loan was taken out on or after October 13, 1987. The limit for this is $100,000.

• Property taxes are another deduction you can make on your income. However, you can only deduct the money you have paid for property taxes and not any money held in escrow if it has not been applied to your property taxes yet.

• Homeowners who use part of their home as an office can deduct a portion of the costs to pay for and maintain your home. You can deduct a percentage or insurance, repair costs and even depreciation as well.

• If you sold your home in 2009, you can keep the profits up to $500,000 for married couples filing jointly if the home was used as their primary residence for at least two of the last five years. Singles or married couples filing separately can keep up to $250,000 each when selling a primary residence.

• You can deduct some moving costs if you moved in 2009 as a result of a new job. To qualify for moving deductions, you must move within one year of starting a new job, you new home must be within 50 miles of your new job and other regulations.

• If you are a first-time homebuyer with low income, you may qualify for the mortgage tax credit which is equal to as much as 20 percent of the interest payments you made on the new home.

Tax guidelines and rules can be very confusing. Even if you know some basic guidelines like the ones above, it is probably best to consult with a qualified CPA to ensure you are doing everything correctly. A few simple mistakes could land you in hot water with the IRS so you don’t want to take any chances.

Tips for Understanding Your Local Housing Market

Tips for Understanding Your Local Housing Market

Buying or selling a home in your local housing market takes research, but how do you understand your local housing market? Here are some tips to help you out.

Your local housing market is often quite different than the nationwide averages and trends. Local markets do not always follow the trends and when sales are good nationwide, that could mean sales are mediocre in your area. On the flip side, when sales are bad across the nation, sales in your local housing market could be going very well. That is why it is so important to know how to understand your local housing market if you plan on selling your home or buying another one in the area in the near future. Here are some tips on how to understand your local housing market so you can make informed decisions when buying a selling.

Define the Phrase \"Local Market\"
Before understanding the housing market in your area, you have to define your \"local market.\" The best way to do this is to choose the smallest unit of area for which you can find information. Some local housing markets only consist of a neighborhood which may include three or four blocks. In more suburban areas, a local housing market may consist of a single housing development. In a rural market, the local market may be considered the entire county.

Once you have determined what the local housing market is going to be, take some notes about the geographic and political boundaries in that area. Are the houses and properties on one side of the street larger than on the other side? Are commercial buildings mixed in with the local area or is there a clear boundary between the businesses and the residential homes? These and other observations can help you break down your local housing market into an even smaller unit so you can understand it better.

Begin Your Research
These days, it is so easy to go online and research various neighborhoods across the country. Thousands of websites exist where you can find prices of mortgages in various areas, safety statistics, school information and pretty much anything else you want to know about local housing markets. You can even go to Google and find actual maps and pictures of the neighborhoods when doing your research. You can also compare mortgage rates and other fees and charges with various companies from the comfort of your own home. There are so many things you can do before you even step out of your house.