A new state mandate requiring carbon monoxide alarms in existing single-family homes went into effect on August 1, 2008, that is protecting buyers and surprising sellers. Keep reading to find out how to prevent this silent killer's new law from sneaking up on you...
What is it?
The new carbon monoxide (CO) alarm law requires that "every single-family dwelling and every dwelling unit in a multifamily dwelling" have "an approved and operational carbon monoxide alarm installed within ten feet of each room lawfully used for sleeping purposes." (See MN Stat. 299.51) This law was effective as of August 1, 2007 for newly constructed homes, and just became effective August 1, 2008 for all existing single-family dwelling units. It becomes effective in August 1, 2009 for existing multifamily dwelling units. The alarms must be an approved device (conforming to UL2034 standards), and may be hardwired, plugged in, or battery-powered (if attached to the wall).
What is Carbon Monoxide?
Carbon monoxide (CO) is a deadly gas that human senses cannot detect because it is both colorless and odorless. It is produced by the incomplete combustion of fossil fuels, including natural gas, propane, kerosene, gasoline and heating oil.
CO - the Silent Killer
CO is the leading cause of poisoning deaths in North America. (AMA Journal)
On average, over 10,000 people are treated annually for CO poisoning. (North Haven Professional Firefighters Association)
Carbon monoxide exposure kills approximately 1,800 people each year. (AMA Journal)
Common Sources of CO
Potential CO sources include your fireplace, woodstove, furnace, water heater, gas dryer or stove, vehicles, grill and space heater.
What does it mean to you?
If selling your house, recognize that you have a direct legal obligation to equip your home with carbon monoxide detectors and take proactive steps to be sure that you have them installed before selling.
And if you're currently house hunting, be sure to check that the home you ultimately purchase is properly equipped with these detectors, provided by the seller.
Finally, to save $5 on a new carbon monoxide alarm click here and for more news coverage of the Minnesota CO alarm law click here.
In this second post of our H.R. 3221, the "Housing and Economic Recovery Act of 2008" Series, we talk about a provision included that allows most first time home-buyers to receive at $7500.00 tax rebate. Make sure you read all the way through as there are some caveats and a TWIST. Here are the details you need to know:
The $7500 Tax Credit is available to firs-time home buyers that purchase a principal residence sometime after April 9th of 2008 and sometime before July 1st of 2009.
The Credit is a "refundable" credit. So, if you have a tax liability of $2000 next year and qualify for the full $7500 credit, you would be hypothetically entitled to a $5500 refund!
A first-time home buyer is classified as someone who has not had an ownership interest in a property within the past 3 years.
There are income restrictions on the tax credit, so if you make more than $75,000 filing single or
$150,000 filing jointly, you may not be eligable for the tax credit (I haven't found a good description of the calculations used to phase-out the credit...let me know if anyone knows them and I'll post it here).
The tax credit is tied to the price of the home you purchase. It will be 10% of the purchase price of the home with a maximum of $7500. For example, if you purchase a home for only $50,000,then the credit you could receive would be $5000...but a purchase price of $160,000 would max out at $7500.
BUT WAIT....THERE'S A CATCH!
Unlike most other tax credits, this tax incentive must be paid back. All eligible purchasers who claim the credit will be required to repay it over 15 years. The statute specifies that the repayment amount will be 6.67% of the credit amount each year. Thus, a buyer who qualifies for the full $7500 credit will repay $502.50 each year. There will be no interest charge on outstanding balances.
When the person who used the credit sells the home, any amount of tax credit that has not been repaid will be due in the year of sale. For example, if an individual still "owed" $4000 in repayments and realized $25,000 of proceeds from the sale, the $25,000 of seller proceeds would be reduced to $21,000 and $4000 will be remitted to the IRS.
If the gain on the sale is less than the amount that must be repaid, part of the liability is forgiven. For example, if the individual still "owed" $4000 but the gain on the sale was only $3500, then the seller would not be required to repay the IRS the $500 shortfall. If there was no gain or even a loss, then the remaining $4000 would not be repaid.
All in all, I'm in favor of this provision in the bill. It gives first-time home buyers a great incentive to purchase a home over the next year, and allows them to basically "borrow" up to $7500 from the government and pay it back with the equity they gain in their home...with no repercussions if they gain no equity by the time they sell. I'm sure there are a bunch of questions, so feel free to fill up the comments section or shoot us over an email.
Tomorrow we'll be talking about some of the changes to the FHA program the bill brought about.
Last Wednesday, President Bush signed H.R. 3221, the "Housing and Economic Recovery Act of 2008" into law. There are a bunch of items involved in this bill that may affect you as a current homeowner or a potential homeowner. Here at The Don Edam Group, we're going to spend the next 4 days pouring through the bill with you to give you the 'ins and outs' of each of the key provisions withing the bill. We will begin this afternoon with a tax credit given out to certain first time home owners who qualify. Stay Tuned...
Plentiful jobs, excellent schools, affordable housing - according to CNN's Money Magazine top 100 list of America's best small cities, 9 Minnesota cities have all that and more. And even better, the report ranked named our very own northwest suburb, Plymouth, MN, as the #1 place to live among U.S. cities with populations of 50,000 to 300,000!
The ranking touts Plymouth's "topnotch" schools, plentiful jobs, affordable housing, low crime rate and active outdoor culture. In addition, the report shows that Plymouth has a significantly higher-than-average median family income, family purchasing power, math and reading test scores, and percentage of residents with a health plan (91.2%); AND lower-than-average auto insurance premiums, shorter commute times, and lower median home prices. Here are a few other things they say about our little gem of a city..."Home prices are within reason: The typical three-bedroom, two-bath house goes for $350,000. The city's main school district is ranked among the top three in the state, and for culture, Plymouth's open-air amphitheater, the Hilde Performance Center, hosts numerous summer concerts. Residents are a quick drive from the Mall of America, the nation's biggest mall.
And did we mention the outdoors? Plymouth boasts more than half a dozen sizable bodies of water. Of course, this being Minnesota, winter can be brutal: January's average low temperature is about 13°F. But when the mercury plummets, the locals get busy. In February the city hosts a Fire & Ice Festival that includes mini-golf, bowling and basketball - all right on the ice."
Money ranks the communities based on financial data, housing, safety, crime rates, weather and similar factors. And while no other Minnesota city made the top 10, the state was well represented, taking 9 of the top 100: Eagan came in at #17, Apple Valley at 24, Lakeville at 26, Eden Prairie at 40, Maple Grove at 41, Burnsville at 43, Rochester at 70 and Blaine at 93.
To read more about why Plymouth is such a fantastic place to live, click here for Money Magazine's full report on the city. And if you want to get your hands on your own piece of this small city oasis, be sure to check out our latest listing at 18205 County Road 24 in Plymouth or any of our other great properties at www.donedam.com/listings.
Okay, "10,000+ Reasons to Buy a Home" might seem a bit excessive, but in a new housing initiative called Minneapolis Advantage, the city of Minneapolis is offering just that....up to a $10,000 zero-interest, zero-payment loan that's forgivin over a 5 year period (a.k.a. totally FREE after the 5 years are up) to qualified buyers that purchase a home in one of the city's 18 eligible neighborhoods.
Developed in response to the city's rising level of foreclosures, the Minneapolis Advantage loan program is a downpayment and closing cost assistance program to help rebuild the housing market in key neighborhoods (located mostly within the central South and North communities) that have experienced higher than normal levels of mortgage foreclosures.
In addition, the Harrison, McKinley, Folwell and Webber-Camden neighborhoods are offering buyers $4,000 in mortgage assistance, and Harrison is adding another $15,000 for renovations. That makes $29,000 in forgivable loan money to fix up an abandoned home in that neighborhood.
So, if you're looking to buy a home in Minneapolis and you have good credit, now you have 10,000+ more reasons to get out there on the house hunting trail and buy today ;)
For more information on Minneapolis Advantage program details and detail on how to apply click here.
Completely remodeled from top to bottom without losing the timeless charm of this 1911 home. Open kitchen with granite counter tops, breakfast bar, stainless steel appliances, and pantry. Hardwood floors, master suite overlooking professionally landscaped backyard, and a great deck & patio to enjoy warm summer nights. Top end amenities & only blocks from Lake Calhoun!
There are currently at least 29 short sales that are available for sale in the Edina and Southwest Minneapolis markets (found by searching in agent comments for "bank approval" and "short sale"). In the Camden area of Minneapolis, there are at least 70. If I look at Minneapolis proper, the number is over 315...St. Paul proper gives us over 300 as well. So, needless to say, there are a good amount of short sales out there. The question is, what does that mean to you, the buyer? How can you keep your dream home from vanishing before your eyes (like the one above)? Short sales open a whole new can of worms throughout the buying process...but first, a short (no pun intended) explanation of them.
In the current market, its no secret that inventory is high. If you look back in history, you can see spikes of inventory followed by lulls. What makes this time around a little different are the sheer number of foreclosures and "short sales" that make up the inventory. Most people are familiar with foreclosures, but when I mention short sales to people, the glazed look over their eyes has led me into deeper explanations almost every time. A short sale usually occurs when a seller owes more on their mortgage than their house can sell for in the current market. The bank or lender agrees to reduce the loan due from the seller. The homeowner sells the home for the current market price and the bank or lender receives the proceeds from the sale. They will then release the homeowner from their debt obligation. I'll get much more detailed regarding the short sale process in my next post (What Every Seller Should Know About Short Sales).
First, the good news...
Short Sales can bring great opportunities for home buyers. In the transactions that have involved a short sale where we have represented the buyers this year, the buyers have typically purchased the home at a good discount in comparison to similar homes in the neighborhood (analyzed through a comprehensive comparable market analysis). The homes are usually in pretty good shape as well, as they are more often owner occupied than foreclosures by owners who are looking to just get out from under their mortgages, rather than being forced to vacate by their bank or lender. It call all look like a pretty rosy picture...until
Now, the bad news...
Short Sales can be a nightmare to navigate through on the buyer side. First, lets assume a house has been selected by the buyer. In the comments of the listing, it says something like "sale subject to bank approval". That's your first clue that a short sale is being attempted by the seller. Now, one of two scenarios has taken place:
1. The listing agent and the seller did their homework before they put the home on the market and contacted the bank or lender. They talked to the bank or lender about what they were going to do, how they were going to price the home, and the proper steps and paperwork needed by the bank to help the short sale move along smoothly
2. More often, the listing agent and the seller have talked about doing the short sale with each other...but not with the most important entity in the transaction, the bank or lender.
We write up an offer on the property (including the dreaded phrase "Purchase Agreement Subject To Bank Approval"). We spend a couple of days negotiating with the homeowner and come to an agreement on all terms. Usually, that makes it close to a done deal (only inspection, financing, escrow to worry about)... But in a short sale, that's only the first step. After we have worked hard to get an offer the buyer and seller can agree on, it gets submitted to the bank. The bank will assign it to someone in their "Loss Mitigation Department". Now, keep in mind that the Loss Mitigation Department is probably grossly understaffed due to the recent influx of short sales an foreclosures. Its now typical to wait and hear absolutely nothing for 30 to 60 days (so make your closing dates realistic...ie "within 30 days of final bank approval"). And now here is the really bad news...after waiting for maybe 6 weeks, the bank can come back and accept, reject, or counter your previously negotiated agreement. So you could have agreed to this offer on May 1st, not received a response until June 15th and then gotten a flat rejection from the bank or lender. Or you could get a counter offer (read ultimatum many times ) of maybe $20,000 more than the previous agreed upon offer. Not to say we haven't had short sale transactions accepted by the bank or lender within 30 days of submission with the agreed upon terms, but that is not the norm.
Now, I don't want to scare all of you off from pursuing homes that are attempting to do a short sale. Just make sure you are working with an agent that does their homework upfront to see if the listing agent and seller have already contacted the bank or lender. Make sure you arepersistent with getting info from the listing agent (thus prompting them to stay in contact with the Loss Mitigation Department of the lender). Also, ensure you are looking at other homes throughout this offer process. There's a good chance your short sale offer will not be accepted, or will be countered. If this is the case, its good to have some backup homes in place so you don't have to go through the entire homebuying process from the start again and waste valuable time.
That's it for now. I'll be posting shortly on What Every Seller Needs To Know About Short Sales. Until then, if you have any further questions about short sales or real estate in general, feel free to leave a comment or contact us.
The growing masses of eco-minded consumers are continuously seeking out ways of incorporating green design principles into new or existing homes, but figuring out the logistics isn't always straightforward. Launched only a few short weeks ago and based on the belief that green design should be available to all, FreeGreen is a new site that offers free, downloadable green house plans.
Free Green's team of engineers and designers works with industry-leading product manufacturers to create home designs that incorporate different combinations of products, materials and vendors. Their team can also modify or customize any of the design plans and they provide 3-D images, energy simulations and written descriptions to help consumers find the right fit for their lifestyle.
The first of the two models currently available on the site is called the ‘Healthy Family' model, and combines comfortable contemporary living with superior indoor air quality and low energy bills. With functional options like mudrooms, homework nooks and home offices, Healthy Family homes are intended for young, three- to five-person families in cold to mixed climates.
The second model currently available, the modern ‘Suburban Loft', on the other hand, features open floor plans and high ceiling loft spaces. Designed to perform efficiently even in cold northern climates, the Suburban Loft plan is intended for first-time buyers or downsizing baby boomers.
And coming soon is the ‘Smart Box' plan, which FreeGreen aims to make a 1,200 to 1,400 sq. ft. home that can be built for less than $100 per square foot.
Consumers who download FreeGreen's plans get not just the very detailed plan set, but also an energy report specific to the town or city they select and a welcome packet with additional information, tools and resources.
The standard 8-hour business day is no longer the norm in America and neither is the getting the ‘required' 8-hours of sleep per night. In fact, according to the National Sleep Foundation's 2008 Sleep in America poll, the average American's work day is now 9 hours and 28 minutes and the average time spent in bed is 6 hours and 55 minutes - with only 6 hours and 40 minutes spent actually sleeping (if you're one of the lucky ones, that is)!
So if you're one of today's over-worked, sleep-deprived, eco-consious consumers, there's a new company on the scene offering eco-friendly sleep solutions for you and your family.
Recently appearing on The Veiw, Keesta, is an eco-bedding company that takes a thoroughly green approach to mattresses and other sleep products. Many of the mattresses we sleep on today include polyurethane, formaldehyde and other materials with questionable effects on the environment and human health. Keesta's mattresses, however, are built with sustainable components including recycled steel, scrap memory foam bits, bamboo fabrics and unbleached natural cotton, while odor control and anti-bacterial properties are delivered using EPA-approved technologies based on silver and green tea. And since different Keetsa mattress styles (which start at $385) use varying degrees of such sustainable components, the company uses a composite score called the Keetsa Quotient to summarize the overall greenness of each one.
Another great thing about the company, is that they've also developed a way to compress their large mattresses so they fit into convenient wheeled boxes which are made from recycled cardboard, of course. Not only does that make them maneuverable by one person, but it also reduces transportation expenses and the products' resulting carbon footprint, and gives consumers savings of between 50 and 75%.....sounds like an all-around, integrated, eco-friendly sleep solution to me!
There's really no sure way to avoid an audit. Most audited tax returns are selected for review either because the filer is part of a target group or because a computer program selects the return. The computer selects many returns randomly, but there are red flags that will draw the IRS's attention.
The key is to minimize your exposure. Here are some suggestions from MSN Money on things you should try to avoid:
1. Math mistakes
The biggest reason people receive letters from the IRS is addition or subtraction goofs. Fortunately, math errors rarely lead to a full audit. Still, double-check your math before you send in your return.
And if you receive a letter from the IRS that says you owe them, check your numbers first. Sometimes, the IRS misreads one of your numbers, or the number is keyed incorrectly into the IRS computer. If it's wrong, send a letter with a printout of your calculations.
2. Mismatched interest and dividend reporting
If the amounts reported in supporting documents don't match the amounts on your return, you will get a letter.
There are lots of possible errors here. Sometimes, the IRS will enter the Form 1099 information into its computer and erroneously keystroke the income amount or the Social Security number of the recipient. If the income isn't yours, get a letter from the bank or other payer and forward that letter to the IRS. If the amount is incorrect, send a copy of the Form 1099 mailed to you by the payer.
3. You're on the IRS hit list
Those who receive much of their income in cash are traditionally on the radar screen of IRS agents looking for unreported income. Recently, the IRS has also pinpointed small-business owners and the self-employed in its bid to find more of the estimated $345 billion in uncollected taxes.
4. You've got a big mouth
Never brag about how you put one over on the IRS. Internal Revenue Service informers can earn a reward of between 15% and 20% of the additional tax collected, including fines and penalties and interest. Whistleblowers can file Form 211 or call the IRS hotline at 1-800-829-0433. Everyone else: Zip it, and keep your accounting strategies to yourself.
5. You're exceptional
An IRS computer program compares your deductions to others in your income bracket and weighs the differences. This secret IRS formula, called the "DIF Score," is used to select returns with the highest probability of generating additional audit revenue.
The IRS is coming If you are facing an audit, don't panic. An audit is merely a process where the IRS asks you to substantiate the numbers on your tax return. Here are some survival strategies:
Call your tax professional. Or get one. If the audit is simple - to prove your charitable and interest deductions, for example - you can do it yourself by mailing in copies of your substantiation. For all in-person audits, I strongly suggest professional representation.
Plan your taxes to preempt an audit. If, say, you have a huge medical deduction that you feel would increase your chances of being audited, attach copies of your medical bills to your return. The IRS computer will still kick out your return, but when a real person looks at it, the reviewer will recognize that you know the rules. This may actually reduce your odds of a full audit.
Keep records for three years. The IRS can audit you for three years after you file your return. In reality, however, most returns are audited within 18 months. This gives the IRS time to do the review and request the appropriate substantiation before the statute of limitations (usually the three-year period) ends.
Once the deadline has passed, the IRS normally cannot audit your return and your expenses are insulated from examination.
File at the last minute if you are concerned about a potential audit. It won't hurt and might decrease your chances of being selected. The good news is, if you are audited one year with a refund or no change, it decreases your odds of being audited in subsequent years. In fact, if you are audited on the same items two years in a row with no additional taxes due, the IRS manual specifically recommends that they not audit you on the same items for a third year. Full Story
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
Plentiful jobs, excellent schools, affordable housing - according to 
Okay, "10,000+ Reasons to Buy a Home" might seem a bit excessive, but in a new housing initiative called Minneapolis Advantage, the city of Minneapolis is offering just that....up to a $10,000 zero-interest, zero-payment loan that's forgivin over a 5 year period (a.k.a. totally FREE after the 5 years are up) to qualified buyers that purchase a home in one of the city's 
) of maybe $20,000 more than the previous agreed upon offer. Not to say we haven't had short sale transactions accepted by the bank or lender within 30 days of submission with the agreed upon terms, but that is not the norm.
;)
;)
