10 Cheap Home Selling Tips

10 cheap home selling tips

Easy ways to make your home more attractive to potential buyers.

Getting ready to sell? Move your property fast – and for the highest selling price possible – with these easy, affordable staging tricks. These deal-sealing changes will make your home attractive to the largest pool of potential buyers, and the best part is, you can start at any stage in the game. Who knows – you may love your home’s new look so much that you decide not to list after all!

1 Paint!
Dollar for dollar, a fresh coat of paint gives you more bang for your decorating buck than anything else. Even if your current palette is relatively new, any scuffs or wear marks will channel an unkempt vibe. And an unusual colour choice – even if the height of fashion – may limit your home’s appeal. So break out that roller and slap on a couple coats of crowd-pleasing warm white or sand paint.

2 Improve the lighting
Replace any dated light fixtures ASAP. How can you tell if it has to go? If it’s over 15 years old and looks it – yet isn’t a vintage (50-75 years old) or antique piece (older) – it should probably go. “Retro” is not something most homebuyers are looking for. You don’t need to break the bank, just head to IKEA or Canadian Tire.

3 De-clutter
Take the collectibles off the mantel, put the mismatched armchair into storage (or better yet, donate it) and pare your closets down to what you’re actually wearing this season, packing away the rest. Ideally, all this extra stuff would head to charity (if in good, saleable condition), the garbage dump, or into storage. The more you store onsite, the more cluttered and small your home appears.

4 Give dated bathrooms a facelift
A nice bath helps sell a house but, don’t invest in a total renovation. Renos are costly, and you won’t recoup your costs unless you find your exact décor doppelganger. Bring an out-of-date bath up to speed with gleaming white walls whether via a fresh coat of white bath and kitchen paint or ceramic tile and new lighting (Home Depot excels at affordable, stylish bathroom vanity lighting). Buy neutral new shower curtains, a simple new bath mat and vanity set, and have fresh flowers in the room during open houses.

5 Take down curtains
Dated window treatments need to come down, pronto (if it’s over 10 years old, get rid of it). If privacy isn’t an issue, just leave the windows bare to maximize natural light and make the room’s dimensions seem more generous. Otherwise, buy basic-issue cotton or linen drapes from Linens ‘N Things or another well-priced retailer. Always tie drapes back during viewings and open houses.

6 Put up mirrors
Make small rooms appear bigger and dark rooms seem brighter by adding an attractive wall mirror. A boxlike dining room will benefit from a leaning floor mirror (Lowes sells well priced ones, and HomeSense often has great deals) and an entranceway more welcoming with a console mirror.

7 Update porch hardware
Increase your home’s curb appeal by updating the hardware on your front porch. Buy a doorknocker or bell, mailbox, kick plate, doorknob and lockset in a set or in complementary styles. Brushed nickel is a neutral finish that will never date, while oil-rubbed bronze is another favourite.

8 And the porch light
Update your porch light to coordinate with the new hardware, if needed. They don’t have to be an exact match or even come from the same period, but the finishes and styles should look pleasing together.

9 Spiff up the front yard
Refresh your front yard according to the season. In spring, summer and fall, trim back dead plants and foliage and plant attractive annuals or perennials in flowerbeds. In winter, keep the walkway shoveled and cut back any tree or shrub branches damaged by heavy snowfall. A pair of planters flanking the front door and filled with seasonal arrangements instantly conveys pride of ownership.

10 Tend the backyard
Simple fix-its will make the most of your existing yard layout. Replace any damaged boards on your deck or fence, and apply a fresh coat of paint, or stain and sealant if the finish needs it. Weed and groom your garden and add some perennials for colour when in-season. If kids’ toys are taking over the space, put some in storage. Think “tidy,” “update” and “refresh”: never do anything costly or major like adding a swimming pool or pond, which may put off potential buyers.

Turning a Master Suite into a Cozy Nest

Turning a Master Suite into a Cozy Nest

After the kitchen, the one part of any house that gets the most attention is the master suite. And rightfully so: While the kitchen is the gathering place for family and friends, the master bedroom is just the opposite — a place where quiet and tranquility reign.
Having a cozy nest that creates an escape from the kids, if not the world, is still a high priority with today’s homeowners.
“We’re still seeing a focus on the idea of the master as a haven that’s safe and warm, but with a couple of new things added,” says Bruce Meller, president of the Decatur, Ga.-based Home Forge Remodeling firm. “One of the top things people are asking us to do is to insulate the interior master bedroom and bathroom walls to separate the suite from the rest of the house. It’s a privacy thing.” The added insulation can even extend to the floors to keep any noise from the master moving outward.
“It’s a little bit in both directions,” Meller says. “The parents don’t want to hear the kids, and at the same time, don’t want the kids to hear them. I think part of that may be a reaction to the fact that many homes we remodel are not necessarily huge, and the master isn’t very separate. Extra insulation can help with that.” New-home plans from John Wieland Homes and Neighborhoods incorporate privacy aspects into their master suites by separating the sleeping and living areas. At the Braeburn community in Milton, Ga., where 52 homes are priced from the high $400,000s, buyers have taken to master designs that give them room to spread out.
“We had a lot of plans where the owners’ suite with a sitting room was one elongated space, but we’ve had a lot more success when that retreat is more separate, maybe even walled off or on the other side of the bathroom,” says Itanza Johnson, a Wieland custom home agent. “That way, a couple can physically be doing two separate things in their bedroom. If your husband is an early CNN watcher, you can still sleep.” The master suite also affords parents a place where they can be close to the children without being in the same space.
“Since the concept of the two-story family room went away, rec rooms have moved upstairs, and that’s made the idea of a private space in the owners’ suite more popular,” Johnson said. “It gives Mom a place where she can be on the same level when the kids are in the rec room, but she can watch TV or pay bills with a little more privacy.” At the same time, homeowners are tired of the cavernous, poorly lit master. To make the space more functional, they’re adding more lighting than in the past.
“Masters are becoming much more well-lit, with lots of lights with dimmers,” Meller says. “We’re putting them in the whole room — over beds, in the tray ceiling, on separate switches so you can turn on lamps from the wall. Having more lighting also lets you create the mood you want by turning them off or on or dimming them.” Along with the sleeping and sitting areas, the master bathroom has undergone an attitude change in the past few years. While many are still spacious, they’re not quite as ostentatious, with owners opting for a more scaled-back but sophisticated look. And the first thing they say they don’t want is that monster jetted tub.
“For the longest time, people wanted that big bathtub with the jets,” says Charley Hipple, president of Cardinal Construction, a custom home and remodeling firm based in Duluth. “Now, they want the big tub but don’t want the jets, especially if they already have a pool with a spa in the backyard. Instead, they’re creating more of a spa feel with steam showers.” Jetted baths are being replaced by soaking tubs that may be shorter or narrower but are definitely deeper. The smaller tubs have an added bonus: more deck space around them for plants, candles or baskets of towels. Some owners are adding heat elements that keep the bath water a constant temperature without draining the hot water heater. And while a spa tub can cost about $5,000, a soaking tub with a heating element may be $2,000.
Bathroom finishes also are changing, with oversize tumbled stone and marble giving way to elegant porcelain that gives a bath a Roman feel, Meller says. “Porcelain is a lot more finished and consistent and doesn’t give you that ragged look,” he says.
Some owners are adding these elements not just into one master bath but into two. Once the standard for a million-dollar property, a his-and-hers layout is now becoming fashionable with buyers of homes priced below that benchmark.
“Every wife yearns for her own toilet,” Johnson said. “While the shower may be a shared space, the wife usually gets the tub, a larger vanity and usually the linen closet. Having separate vanities and water closets is very popular.”
©2012 The Atlanta Journal-Constitution (Atlanta, Ga.)
Distributed by MCT Information Services ^[2]

Home Organization for the Busy Household

Home Organization for the Busy Household

Between work, school, children's activities, family obligations and travel plans, today's busy families are left with little time to keep their homes tidy and well-organized. With summer fast approaching, it is important for on-the-go families to realize that home organization does not have to be difficult or time consuming.

If you follow these tips, you will learn to prioritize your home organization needs, delegate responsibilities, and ultimately save valuable time:

Make a plan: Keep a small journal in which you list all the areas you would like to tackle before the summer. This will remind you what to focus on and help you organize and clean in less time.

"Busy families need a good system of organization - places to put things and labels for identifying what you've stored so you can easily find whatever you need quickly and easily," says Martha Stewart, founder of Martha Stewart Living Omnimedia.

Teach your family to pitch in: If you're the main housekeeper, it's reasonable to ask family members to help with chores such as loading the dishwasher, picking up toys, taking out the trash and doing the laundry. Delegating small chores throughout the year makes larger organization projects a much easier task.

Stick to a schedule: Try a dry-erase weekly planner calendar, allowing you to create chore charts for family members and assign each task a time slot or day of the week. Place the chart on the door of the refrigerator, so everyone sees it regularly. Schedule a cleaning task as you would a play date or other fun activity.

Tackle one room at a time: To prevent yourself from becoming overwhelmed, it is important to identify the areas that need to be organized. From there, determine which tasks are most necessary in each of those rooms. For example, in your home office, you may need to declutter your desktop by filing away papers in magazine files or organizing financial information in a freestanding accordion file.

Use bins and labels to organize trash: Instead of simply dividing items into separate piles that will likely get knocked over or mixed up, use plastic bins and adhesive labels that say keep, recycle, or donate.

These simple steps make home organization more enjoyable and manageable. Follow the tips to freshen up your home and get ready to enjoy summer.

Exterior Replacement Projects Provide Biggest Return on Investment for Homeowners, Say REALTORS®

Exterior Replacement Projects Provide Biggest Return on Investment for Homeowners, Say REALTORS®

Homeowners looking for the most return on their investment when it comes to remodeling should consider exterior replacement projects. According to the 2013 Remodeling Cost vs. Value Report, REALTORS® rated exterior projects among the most valuable home improvement projects.

“REALTORS® know that curb appeal projects offer great bang for your buck, because a home’s exterior is the first thing potential buyers see,” says National Association of REALTORS® President Gary Thomas. “Projects such as siding, window and door replacements can recoup more than 70 percent of their cost at resale. REALTORS® know what home features are important to buyers in your area and can provide helpful insights when considering remodeling projects.”

Results of the report are summarized on NAR’s consumer website HouseLogic.com, which provides information on dozens of remodeling projects, from kitchens and baths to siding replacements, including the recouped value of the project based on a national average. According to the Cost vs. Value Report, REALTORS® judged a steel entry door replacement as the project expected to return the most money, with an estimated 85.6 percent of costs recouped upon resale. The steel entry door replacement is the least expensive project in the report, costing little more than $1,100 on average. A majority of the top 10 most cost-effective projects nationally in terms of value recouped are exterior replacement projects; all of these are estimated to recoup more than 71 percent of costs.

Three different siding replacement projects landed in the top 10, including fiber cement siding, expected to return 79.3 percent of costs, vinyl siding, expected to return 72.9 percent of costs, and foam backed vinyl, expected to return 71.8 percent of costs. Two additional door replacements were also among the top exterior replacement projects. The midrange and upscale garage door replacement were both expected to return more than 75 percent of costs.

According to the report, two interior remodeling projects in particular can recoup substantial value at resale. A minor kitchen remodel is ranked fifth and is expected to return 75.4 percent of costs. Nationally, the average cost for the project is just under $19,000.

The second interior remodeling project in the top 10 is the attic bedroom, which landed at number eight and tied with the vinyl siding replacement with 72.9 percent of costs recouped. With an average national cost of just under $48,000, the attic project adds a bedroom and bathroom within a home’s existing footprint. The improvement project projected to return the least is the home office remodel, estimated to recoup less than 44 percent.

The 2013 Remodeling Cost vs. Value Report compares construction costs with resale values for 35 midrange and upscale remodeling projects comprising additions, remodels and replacements in 81 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the 15th consecutive year that the report, which is produced by Remodeling magazine publisher Hanley Wood, LLC, was completed in cooperation with NAR.

REALTORS® provided their insights into local markets and buyer home preferences within those markets. The 2013 national average cost-to-value ratio rose to 60.6 percent, ending a six-year decline. The ratio represents nearly a three-point improvement over 2011-2012. Lower construction costs are the principal factor in the upturn, especially when measured against stabilizing house values. In addition, the cost-to-value ratio improved nationally for every project in this year’s report and is higher than it was two years ago for both remodeling and replacement projects.

“A REALTOR® is the best resource for helping homeowners decide what improvement projects will provide the most upon resale in their market,” says Thomas. “Each neighborhood is different, and the desirability and resale value of a particular remodeling project varies depending on where you live. When making a home remodeling decision, resale value is just one factor that homeowners should take into consideration. Consult a Realtor® to make sure you are making the best decision.”

Most regions followed the national trends; however the Pacific region, consisting of Alaska, California, Hawaii, Oregon and Washington, once again led the nation with an average cost-value ratio of 71.2 percent, due mainly to strong resale values. The next best performing regions were West South Central, South Atlantic, and East South Central. These regions attribute their high ranking to construction costs that were lowest in the country. While still remaining below the national average, most remaining regions showed strong improvement over last year. These are Mountain, New England, East North Central, Middle Atlantic, and West North Central.

To read the full project descriptions and access national and regional project data, visit www.costvsvalue.com ^[2]. “Cost vs. Value” is a registered trademark of Hanley Wood, LLC.

Buying Home Insurance: What You Need to Know

Buying Home Insurance: What You Need to Know

What is Home Insurance?

House insurance, or which is sometimes recognized as property insurance, offers disbursement to the homeowner in the occasion of loss because of fire, theft, or damage in the course of certain natural elements for instance hail, flooding, lightning and tornado. In accordance with the kind of policy, house insurance will reimburse the loss according to the fair market price at the time of the loss of the house, or completely substitute the loss based upon the existing rebuilding costs.

The policy of homeowner shall not merely cover the cost of repairs; however, the cost of the home contents (including clothing, jewelry, electronics, furniture, appliances, and so on), in addition to incidentals, for example the cost of an interchange residence for the period of the process of repair.

Mortgage lenders and House insurance

Several lenders shall demand a borrower to procure insurance for the house, and furthermore, enable the lender organization to gain advantage over the policy. In view of the fact that the holder of the mortgage has a lien concern regarding the home and the damage loss of the possessions shall have an effect on the fair market price of the property except well repaired. Proof of insurance of house is desired by the lender at some stage in closing and is forwarded to your solicitor using a folder letter from the organization of house insurance, with which you agreed.

Particulars of home insurance

House insurance is an obligation for any homeowner. Seeing that, the home is most individual’s biggest investment, it makes an immense economic sense to underwrite it is guarded from loss. Nevertheless, not all policies are generated equally. The following are some important points one ought to think about when buying house insurance.

Replacement Policy

When buying house insurance, one is supposed to gravely consider a replacement policy, why not at an elevated premium. When buying any assets, the building materials decrease in value, or lose price, as the age of the property goes on. Additionally, inflation has an effect on building costs as it does the whole thing in your financial plan.

A roof of a house, which claims an installation cost approximately four thousand dollars, might cost approximately seven thousand dollars to put back if it comes under the damage of frozen rain. A replacement policy shall cover the whole cost of substitution of the roof, not only its fair market price during the loss.

Contents

Ensure that the policy covers the whole cost of contents based on their replacement price. Furnishings, for instance clothing, electronics and appliances decrease in value quickly from the time of acquisition. The policy of replacement for furnishings shall replace the above mentioned items of a similar type and quality.

In the case of contents, it is a good thought to undertake an inventory of your furnishings and bring up to date it from through time. Some shall take photographs of the rooms in the house, together with storage areas, to make available evidence of the furnishings in the occasion of fire or other forms of natural disasters that cause loss. Moreover, having the photographs of your house contents in places that are safest from each and every possible risk of damage is also recommended.

Bathroom Remodeling for Style and Space

Bathroom Remodeling for Style and Space

Now, more than ever, homeowners are adding to the value and comfort of their homes by renovating bathrooms into private retreats with luxurious touches that rival those of an upscale spa or resort.

Ron and Susan Bishop of Adams Township, Pa., recently completed an extensive remodel of the master bathroom in their 20-year-old home. The remake covered nearly every square inch of the space, including the installation of new cabinets, tile, floor coverings and lighting. The couple says one of the biggest highlights is the custom shower enclosure, which uses a fused-on coating to keep its showroom appearance over time.

When considering an update for your bathroom, whether you choose to do an extensive remodel or a smaller project, most kitchen and bath designers agree on these tips:

Consider the size of the bathroom. If you have a small room, look for ways to make it feel more expansive. A sleek, stylish glass shower enclosure helps your bathroom appear more spacious, and in most instances, a frameless shower enclosure will provide the cleanest, most open look. If you decide to go with a framed shower enclosure, you'll have two choices: frameless sliding doors or framed doors. For framed doors, be sure the finish of the metal framing and handles matches your bathroom fixtures.

Think outside the box. Taking a creative approach to bathroom necessities can help you make the most of your space. For instance, the majority of shower enclosures are square or rectangular, but today's designers encourage you to think about other shapes. Don't be afraid to consider a circular or oval-shaped enclosure, a triangle or even a standard shape with an artfully bowed glass door, which can redefine the space and make your bathroom more versatile.

Brighten things up. Repainting your bathroom with light colors can make it feel more spacious. If your bathroom has windows or skylights, use window treatments and accents that maximize the amount of light that comes through to give the room a more airy feel.

Find the best use for your space. Move bathroom cleaning items to a hall closet if you are stretched for storage space in your bathroom, especially if you have freestanding storage units that are taking up valuable floor space. If you need more storage space, consider adding built-in compartments if possible between your wall studs to maximize useable space.

It's been shown time and time again that remodeling a bathroom can add to a home's value. Whether you want to sell or just enjoy your home more, it's one of the most practical and dramatic ways to make your home more appealing.

Budget-Friendly Backyard Fixes

Budget-Friendly Backyard Fixes

Transforming your backyard space can be a lot like adding square footage: with the right fixes you can make a whole new entertaining area and completely change the feel of your home. But for homeowners working on a tight budget the big backyard rehabs seen on TV or home and garden websites might be out of reach. Fortunately there are some ways that you can make small changes to your space that make a big impact.

Patio Furniture

No one enjoys a patio without having somewhere to sit (both their fanny and their cool drink). Concrete itself simply isn’t conducive to a comfy relaxing time. Therefore patio furniture is a must for any patio that sees entertaining use.

You might find yourself thinking that buying new patio furniture is an improvement that is a tad on the expensive side, and if you spend your time only considering the stock of large home improvement stores you’d be right. Instead of instantly jumping on a new $300 set from Lowe’s, check out some local yard sales or flea markets. The furniture that you find might need a little TLC, but you’d be surprised how far a couple of cans of spray paint and some new cushions can go toward creating a trendy and comfy lounging space.

Also consider re-purposing items for patio furniture, such as using an old shipping pallet to form a rustic table. By thinking outside the box you can create a one-of-a-kind piece that will both inspire and keep costs in check. Visit DIYinspired.com for more great ideas for re-purposing.

Lighting

A good deal of backyard entertaining has been known to go down at night so you’ll want to add some lighting options. Sure you probably have a porch light or flood lights that will provide some light, but do they provide ambiance? Outdoor lighting itself is fairly inexpensive and can add a whole new feel to your patio or deck.

Consider some Chinese lanterns or simple outdoor string lighting to bring a pop of color and sparkle to the space. Solar lighting is also a great way to showcase your garden or to serve as path lighting from one entertaining area to another.

Covering

Having some sort of covering over your patio or deck doesn’t just serve as a pretty addition to the space: it also makes summer days spent outside much more bearable. Don’t automatically assume you’ll need to contact a handyman or contractor to help put this project together. Odds are that your local home improvement store has plenty of options for easily assembled fabric gazebos that will add both protection from the sweltering summer sun as well as a chic relaxing area.

Rehabilitating your backyard doesn’t have to put your into foreclosure. With these simple and inexpensive fixes you can enjoy a whole new entertaining and relaxing space, almost as if you’d added another room to your home.

For more ideas on inexpensive backyard updating visit HGTV.com.

Cheap and Easy Staging Tips to Improve Your Home’s Selling Features

Cheap and Easy Staging Tips to Improve Your Home’s Selling Features

Selling your home quickly often depends on how you stage it. Emphasizing the good features and downplaying your home’s weaknesses, convinces people that it’s the home they’ve been looking for. You’re not trying to trick or fool your potential buyers, instead it’s about helping them see that the good qualities of your home outweigh the lessor ones.

We all know that curb appeal is important and many people go to the effort of cleaning up the outside, but making the inside match the outside is just as important. You only get one chance to make a first impression and you want that impression to be a good one. Here are a few tips for improving how your home shows.

§  Get rid of the clutter. This might seem like a no-brainer but the fact is we generally keep more stuff than we need and our homes can appear cluttered. Give your home a good cleaning and decide what things you can live without. If you want to keep the items, rent a storage unit. If not, host a yard sale and make a little extra cash or donate to charity. Don’t be afraid to throw things away. Less is more when showing your home, although making it too sparse can be a drawback as well, so moderation is the key.

§  Update the kitchens and the baths. Along with storage space, kitchens and baths are often the highest thing on a buyer’s list. Stainless appliances are worth the investment, as well as fresh cabinet doors and modern hardware. If you can’t afford new cabinet doors, paint the existing ones. In the bath, new tile or professionally cleaning the existing tile to look like new, fresh paint and a new vanity can all be worth your time and efforts.

§  Storage space is a make or break for many potential buyers. Clean out your closets, pantries, attics, basements, or other storage locations to make them look bigger. The more storage it appears you have the better because people need places to store their things. If it looks like you home doesn’t have enough, it can send buyers looking elsewhere.

§  Finding extra space. Often we have those little corners or odd nooks in a home that are unused spaces. Transform those spaces with a chair and small table or a bookshelf or desk into usable space. Showing your potential buyers the advantages to those locations not only creates more space but also inserts cozy relaxation areas into your home. If you have a basement that is not being used, place inexpensive rubber mats or carpets remnants on the floors and turn the space into a yoga studio or workout area.

§  Lack of lighting. Great lighting shows off the beauty of you home and you want people to see it. Many homes don’t have adequate lighting, so try for 100 watts per 50 square foot, while paying attention to install the right type of lighting in the locations. Ambient, task and accent lighting are all important.

§  Paint, the cheap makeover. Fresh paint in neutral colors such as warm tans, honey, soft blues and greens are all great colors to paint your home. Many people are no longer looking for white rooms and find color more relaxing. Do stay away from bold colors because they seem to cause buyers to shy away. If you want darker colors, paint an accent wall to draw attention to a feature you don’t want your buyers to miss out on such as a fireplace or the outside view.

§  Fix visible issues. Missing floorboards, cracks in the ceiling, walls or flooring are all usually inexpensive to fix and are points for buyers to walk away or ask for reductions in your selling price because they are afraid they might be potential problems with the home. Get rid of that worry by getting rid of cosmetic or other issues before showing your home.

All or most of these fixes can be completed in DIY projects by you, without having to spend a lot of money. Do these things before attempting to sell your home and you are well on the way to making a good first impression with your potential buyers.

What Are the 2013 Capital Gains Tax Rates?

What Are the 2013 Capital Gains Tax Rates?

by Susan Lyon on March 3, 2013

There are several new tax laws and provisions to be aware of as we head into 2013 tax season, but one of the most important ones is the change that is taking place when it comes to capital gains tax rates.

Due to new fiscal cliff legislation, capital gains & dividend tax rates are increasing from 15% to 20% for singles earning over $400,000 and couples earnings over $450,000.  Additional changes include:

• Individuals making in the $36,250 to $400,000 range will see their capital gains continue to be taxed at a 15% tax rate.  Meanwhile, earners in the lowest two income tax brackets will pay 0% on investment income.
• There will also be an additional 3.8% investment income tax applied to singles earning over $200k and couples earning over $250k.  The purpose of this new tax is to help fund Medicare.

How To Minimize Capital Gains Taxes

Capital gains taxes can be minimizes in two major ways:  by investing for a long time – and a very long time.  If you invest for over a year, your capital gains become “long-term” rather than “short-term” and are taxed at the lower long-term capital gains rate.  Short-term capital gains are typically taxed at the higher short-term rate.  If you really want to minimizing taxes, invest for the very long term in assets with low dividend yields.  Taxes are incurred when assets are sold or dividends are received, so by holding an asset for many years and minimizing dividends you are effectively deferring taxes for many years.  By deferring taxes, your investment is able to compound more quickly, just as it would in a tax-advantaged account like an IRA or 401(k).

This tax-minimization strategy requires holding positions for long periods.  To do so, you’ll want an investment account with a brokerage that will be around for a long time.  You will also want to have access to quality fundamental company research so that you can invest carefully up front, since changes later will incur taxes.  NerdWallet recommends the following brokers because of their long-established reputation and their access to the highest quality research:

• TD Ameritrade - With over 5 million customers, TD Ameritrade is one of the best established brokerages in the country.  The company is know for customer service and access to top tier research.  Stock trades cost $9.95 and the company provides free access to over 2,500 no-transaction-fee mutual funds.
• E*trade - With almost 3 million customers and over 20 years in business, E*trade has built a reputation for excellence in trading platforms.  The company offers over 1,300 no transaction fee mutual funds, $9.99 trades, and free access to fundamental company research.

Capital gains taxes can also be minimized by taking advantage of tax-advantaged investment options like retirement accounts.  For more information on IRA, check out the NerdWallet list of the best Roth IRA account providers of 2013.

What Are Capital Gains?

The IRS defines capital gains and losses as such:

“Almost everything you own and use for personal or investment purposes is a capital asset. Examples include a home, personal use items like household furnishings, and stocks or bonds held as investments. When a capital asset is sold, the difference between the basis in the asset and the amount it is sold for is a capital gain or a capital loss.”

Put simply, the money you make on any investment is your capital gain – while any money you lost would be your capital loss.

In terms of the tax paperwork needed to file in 2013, the IRS further explains:

“Capital gains and deductible capital losses are reported on Form 1040, Schedule D (PDF), Capital Gains and Losses, and on Form 8949 (PDF), Sales and other Dispositions of Capital Assets. If you have a net capital gain, that gain may be taxed at a lower tax rate than your ordinary income tax rates.”

There are many exceptions to these general guidelines, so always be sure to consult a certified tax professional for any specific advice.

Why Are Your Investments Taxed?

Almost all countries tax capital gains to provide an additional source of national revenue.  In the U.S., most capital gains are taxable by the IRS, giving the government a portion of any profits you make when you successfully invest.  Though it varies widely by country, in the U.S. our net annual capital gains are what get taxed, as well as dividends.

This is one of the reasons that an individual retirement account (IRA) is such an appealing option for investors saving for retirement; they can invest money in a tax-advantaged account such that the profits they earn over time become tax free during their life time.  While the details vary by the type of tax-advantaged account you select, these are on the whole a very effective money management strategy because your money avoids high tax rates as it grows.

What If Your Investments Lost Money This Year?

Worried about how to file if your investments lost money this year?  Don’t fear – you can use your capital losses to offset your gains, thereby potentially affecting the rate at which you are taxed.  If you sold your investment at less than the purchase price you paid for it, you may be eligible here.

To get started, check out IRS Form 8949 and Form 1040 (Schedule D) to accurately recording your capital gains and losses.

For more details on how the new tax rates apply to you, visit NerdWallet’s comprehensive guide to 2013 investment tax rates.

Additional Tax Day Resources:

• NerdWallet’s Tax Season 2013 Roundup: All the resources you need in one place
• 2013 Federal Income Tax Brackets, Explained
• 2013 401(k) Contribution Limits
• 2013 IRA Contribution Limits

How-To Make Sure a Home Is Appraised Accurately

How-To Make Sure a Home Is Appraised Accurately

Despite a steadying housing market, sellers and real estate agents still complain that low appraisals delay or kill up to 15 percent of all deals.  In recent years, agents and others blamed a 2009 law that they said inadvertently led to less-experienced appraisers working in unfamiliar neighborhoods.

Now a common refrain is that appraisers purposely keep valuations down. St. Petersburg, Fla., appraiser Frank Gregoire, who testified before Congress, says banks and underwriters are pressuring appraisers “to be less optimistic and more cautious” to prevent another housing bubble.
But that’s “patently false,” says Ken Chitester, spokesman for the Chicago-based Appraisal Institute. He concedes there may be a lag in valuations in a recovering market, but says appraisers can only work with the data available to them at the time.

Appraisers make the final call, of course, but here are steps that sellers and their agents can take to ensure that valuations are fair and accurate:

—Don’t get greedy. Strong demand for homes is resulting in multiple offers, and some properties are being bid up so high that they won’t appraise, real estate agents say.
Cash buyers typically don’t request appraisals, but banks require them so they don’t lend more money than homes are worth. In accepting a bid from a buyer needing financing, a seller would be wise to consider whether the offer can match the appraised value.
“Highest is not always best when you’re dealing with an appraisal,” says Jim Heidisch, a broker in Pompano Beach, Fla.

—Be accommodating without being intrusive. The change in rules governing appraisals discourages contact between agent and appraiser, but there’s nothing improper about the agent’s being at the home to give the appraiser access and answer any questions, said Michael Citron, of Coconut Creek, Fla.
Sellers should not be present because they tend to get in the way, agents say.
“If they’re there, the sellers will ask, ‘Is it going to appraise?’ and you don’t want to bother the appraiser,” Citron says. “Just have the lights on and the air conditioner blowing real cool to make it as comfortable as possible.”  Fort Lauderdale appraiser Scott Dooley says he doesn’t mind if sellers stay. If they aren’t there, he prefers for an agent to meet him. In roughly half the cases, agents don’t show up, and instruct him to gain entry by using a lock box, he said.

—Provide information about the house, including renovations and comparable sales. When Citron greets appraisers, he gives them packages that include comps, upgrades and amenities within the development.
The report should include the dates of major work done on the kitchen, bathrooms and roof, as well as the closed permits on any additions, Fort Lauderdale appraiser Patrick Sullivan said. Providing receipts also is helpful, he says.

The homeowner’s report may point out a favorable location within a community and other characteristics that distinguish it from other nearby homes, Dooley says.
“You don’t want things to be missed that may result in higher value,” he says.

©2012 Sun Sentinel (Fort Lauderdale, Fla.)
Distributed by MCT Information Services ^[2]

9 Ways to Make a Kitchen Look Swank for Less

9 Ways to Make a Kitchen Look Swank for Less

Costs for even relatively moderate kitchen redos can run well into the tens of thousands of dollars. Here are a few ways to enhance this focal point of a home on a budget.

According to Remodeling magazine’s latest Cost vs. Value survey, the average price of an upscale kitchen redo hovers about $113,000. Even the cost of a mid-range overhaul is a whopping $58,000.

However, sellers are rarely willing to invest the kind of time and money it takes to do that kind of remodeling job, especially one they’ll barely use before they move. But there are affordable alternatives to make this much-used gathering spot more appealing, both aesthetically and functionally. Here arenine easy-to-implement, easy-to-copy ideas for you to share with sellers and buyers. Tell them to try one, two, or perhaps all of them!

▪ Reuse existing elements in the kitchen when possible. “We try to take a hard look before we start any renovation to see what can be salvaged,” says architect Talia Braude, AIA, LEED AP, whose firm Braude Pankiewicz Architects is based in Brooklyn, N.Y. For example, when Braude found floor joists that were too damaged to be structurally sound, she reused them as kitchen shelves, for which they worked perfectly.

▪ Go with affordable cabinets, possibly a line with simple maple, cherry, or oak rather than exotic imported wood or lacquered fronts. Also, opt for pressed rather than solid wood interiors and shelves to pare costs. Because cabinets often represent 50 percent to 60 percent of a remodeled kitchen’s cost, saving here brings down the price, says Lou Manfredini, Ace Hardware’s “Home Expert” based in Chicago. But if possible, spend a bit more on quality hardware that will eliminate wear and tear when opening and closing doors and drawers. One good place to start looking for affordable cabinets is at IKEA, says Braude, which her client Orli Belman did when remodeling a kitchen in her Los Angeles home. Belman saved even more by purchasing cabinets during IKEA’s kitchen sale. Other alternatives include replacing the doors (and reselling the old ones), or repaint cabinets with a product like Ace Hardware’s Cabinet, Door & Trim Paint, an alkyd-based semi-gloss finish that yields a smooth, factory-like finish.

▪ Appliances are another huge cost factor in redoing a kitchen, and stainless-steel name brands are among the biggest offenders. Besides opting for less expensive black-and-white fronts and going with cheaper brands, Web sites like Craigslist and Overstock are good resources for new or little-used items others are trying to get rid of. Belman went those routes and found a double oven and refrigerator drawers on Craigslist, each for $400, when a construction project stalled. She estimates each would have cost about $3,000 retail. She also found an inexpensive but good faucet at Costco and discontinued Martha Stewart light fixtures on another Web site.

▪ Changing a countertop or several can add an instant fresh look, but instead of replacing them with high-end granite, marble, or manmade quartzes, Manfredini suggests covering tired laminate tops with RustOleum’s highly durable Countertop Transformation product, a three-part system that transforms them into look-alike granites in five different colors. Belman also found affordable butcher-block tops at IKEA.

▪ A new backsplash can make a huge difference, and there are many self-adhesive tiles that are easy to install for DIY consumers, including those with the hot metal look in vintage or modern patterns and a host of sizes, shapes, and colors, Manfredini says. Savvy home owners also should consider contacting manufacturers, many of which offer overstocked goods for far less. For instance, Heath Ceramics has been known to sell them for 75 percent off retail at its factory showroom in Sausalito, Calif.

▪ New lighting is one of the easiest switches to make and offers a big payback since it can make a kitchen look larger and highlight its best features, from a great island to kitchen table to new backsplash. Advise homeowners to locate new lighting under cabinets where main tasks are performed, within cabinets, especially glass-fronted ones, to show off cabinets and attractive contents, and over a dining table or island where one great fixture will shine, literally. When possible, opt for compact fluorescent or light-emitting diode bulbs to conserve energy, even though the initial price is higher. And if the bulb’s compatible with dimmers, it’s a great way to vary moods.

▪ Though replacing an entire floor can be costly, time-consuming, and expensive, there are handsome options that will last and won’t break the bank. Durable and affordable options include Marmoleum, a sustainable linoleum, which no longer resembles what your parents or grandparents had but comes in hot colors and textures; old-growth bamboo that’s denser than new variations; and cork, another natural material that’s easily repairable if dings (or worse) occur. If a room is partly remodeled, often the floor can be saved with patching and restaining rather than replacing all of it, Braude says.

▪ Buyers should consider redoing the layout if it doesn’t work, then save elsewhere rather than the reverse, Braude advises. If they install all new cabinets and appliances, but keep the same old, poorly functioning kitchen plan, they probably won’t be pleased. It’s better for them to gain a new layout and budget elsewhere — maybe keep cabinets — and later replace them, she says.

▪ Even when budgeting, home owners shouldn’t forget to add in one or two splurges for a focal point and some kind of “wow” element to raise the level of the renovation, even if it’s a budget one, Braude says. Examples include handcrafted tiles with beautiful finishes, colors, and patterns, and a great island countertop, perhaps fashioned from a gorgeous CaesarStone as Belman and her husband chose to add.

5 Tips for Buyers Who Use Downpayment Gifts

5 Tips for Buyers Who Use Downpayment Gifts

Daily Real Estate News | Thursday, January 03, 2013

About a quarter of first-time home buyers use gifts from relatives to fund a down payment for a home purchase, according to data from the National Association of REALTORS®. But lenders are carefully scrutinizing such gifts.

“Basically, the banks want to make sure that you’re not getting a second loan,” Ray Mignone of Ray Mignone & Associates, a financial planning firm, told The New York Times. “If all of a sudden $50,000 pops into your account, they want to make sure it’s not a loan against the property that they’re going to put a mortgage on.”

In a recent article, The New York Times provided some of the following tips in making make these lenders’ checks and balances go smoother for home buyers:

• Have the money come in a check or wire transfer so that it’s traceable. Lenders often become cautious over cash gifts.
• Have the giver provide the lender with a gift letter, which verifies the money is a gift, the specific amount being given, the relationship to the borrower, and that repayment is not required.
• Deposit any gift money into the borrower’s account a few months before applying for a mortgage so the lenders have fewer questions about it, Mignone says.
• Consider federal gift-tax regulations: Individual gifts of more than $13,000 must be reported to the IRS and are subject to tax.
• Be aware that certain types of mortgages may limit how much of a down payment you can receive as a gift. For example, with conventional loans, lenders may require at least 5 percent in the borrower’s own money that is not a gift. However, Federal Housing Administration loans — which are popular among first-time home buyers — do not have any limits on gifts and borrowers can use gifts to cover the entire down payment.