The Don Edam Group's Blog

NEWS YOU SHOULD KNOW: New MN Law for Carbon Monoxide Alarms

Don Edam (The Don Edam Group - Owner Options Realty) — Mon, 18 Aug 2008 21:31:02 -0500

(Originally posted on 8/12/08 at donedam.com)

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.

Further information about this statute can be found by discussing this issue with your attorney, or by reviewing the statute online at https://www.revisor.leg.state.mn.us/statutes/?id=299F.51.

Your $7500 Tax Rebate | H.R. 3221, the “Housing and Economic Recovery Act of 2008" | Why You Should Care Series - Post 2

Don Edam (The Don Edam Group - Owner Options Realty) — Mon, 18 Aug 2008 21:26:48 -0500

(Originally posted 8/6/08 at donedam.com)

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.

H.R. 3221, the "Housing and Economic Recovery Act of 2008" Why You Should Care Series - Post 1

First-Time Home Buying in 2008: 5 Reasons Why Now is a Good Time To Buy

Search the MLS for your first home here!

H.R. 3221, the “Housing and Economic Recovery Act of 2008" - Why You Should Care - A Series

Don Edam (The Don Edam Group - Owner Options Realty) — Mon, 18 Aug 2008 21:22:58 -0500

(Originally posted 8/5/08 at donedam.com)

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...

Small City USA: MN Claims Nearly 10% of America's Top 100

Don Edam (The Don Edam Group - Owner Options Realty) — Mon, 14 Jul 2008 23:36:23 -0500

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.

10,000+ Reasons to Buy a Home in Minneapolis Today

Don Edam (The Don Edam Group - Owner Options Realty) — Fri, 27 Jun 2008 00:49:40 -0500

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.

Just Listed - 1511 W 33rd Street - Complete Remodel 2 blocks from Lake Calhoun

Don Edam (The Don Edam Group - Owner Options Realty) — Mon, 02 Jun 2008 20:36:34 -0500

1511 W 33rd Street, Minneapolis, MN

3 bedrooms / 3 bathrooms / 2000 square feet

$650,000

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!

More Pictures

Virtual Tour w/ Floor Plan

Video Tour

Link to Google Map w/ Street View

Local School Information

Mortgage Calculator

What Every Buyer Should Know About Short Sales

Don Edam (The Don Edam Group - Owner Options Realty) — Mon, 02 Jun 2008 20:32:40 -0500

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.

Building or Remodeling? Get Your Free Eco Floor Plan Here!!!

Don Edam (The Don Edam Group - Owner Options Realty) — Mon, 02 Jun 2008 20:30:45 -0500

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.

Check ‘em out at www.freegreen.com!

The Eco Sleep Solution: New Products to Improve YOUR 6 Hours & 40 Minutes

Don Edam (The Don Edam Group - Owner Options Realty) — Mon, 02 Jun 2008 20:29:22 -0500

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!

Tax Audit Advice: 5 Red Flags to Avoid

Don Edam (The Don Edam Group - Owner Options Realty) — Fri, 22 Feb 2008 17:16:10 -0600

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

Foreclosure Filings Report: Hardest Hit Markets by State

Don Edam (The Don Edam Group - Owner Options Realty) — Fri, 22 Feb 2008 16:23:22 -0600

U.S foreclosure filings continued their upward climb in December, rising 97% from the previous year and 7% from the month before. Total foreclosures rose 75% in all of 2007.

According to MSN Real Estate's latest report, hardest-hit markets were along both coasts, which experienced a more severe boom and bust in the latest cycle, as well as areas hard hit by auto-industry layoffs such as Michigan and Indiana.

The surge in foreclosures is expected to continue at this same pace until after the next wave of risky loans resets in the middle of 2008.

2007 foreclosure filings by state

Rate Rank	State Name	Total # of filings	% chng. from 2006	% chng. from 2005	Total # of properties	%Households
1	Nevada	66,316	215.12	758.68	34,417	3.376
2	Florida	279,325	123.96	129.25	165,291	2.002
3	Michigan	136,205	68.32	282.22	87,210	1.947
4	California	481,392	237.99	681.95	249,513	1.921
5	Colorado	71,149	29.96	140.12	39,403	1.919
6	Ohio	153,196	87.93	207.35	89,979	1.797
7	Georgia	99,578	31.07	118.43	59,057	1.566
8	Arizona	69,970	150.91	160.7	38,568	1.516
9	Illinois	90,782	25.29	94.3	64,310	1.25
10	Indiana	52,930	11.31	73.57	27,980	1.027
11	Tennessee	45,834	24.56	65.66	25,914	0.983
12	Texas	149,703	-4.57	9.22	84,469	0.936
13	Missouri	32,022	80.93	176.74	23,492	0.906
14	New Jersey	53,652	34.06	52.75	31,071	0.902
15	Utah	9,668	-25.87	-16.19	7,438	0.852
16	Connecticut	23,470	100.05*	111.38*	11,860	0.833
17	Maryland	25,109	455.26	388.41	18,879	0.83
18	North Carolina	37,426	66.52	135.07	29,101	0.739
19	Mass.	41,487	161.14	751.36	17,737	0.66
20	Idaho	6,032	140.51*	119.83*	3,640	0.611
21	Washington	23,705	27.95	59.47	15,184	0.573
22	Oregon	10,746	12.25	56.76	8,461	0.543
23	Oklahoma	13,594	-12.78	0.71	8,256	0.52
24	Virginia	24,199	456.3	728.73	16,307	0.514
25	Minnesota	13,615	127.11*	506.73*	11,557	0.513
26	Arkansas	14,310	26.44	23.58	6,406	0.513
27	New York	57,350	10.19	54.72	38,688	0.493
28	Alaska	1,650	54.64	17.69	1,332	0.486
29	Wisconsin	17,503	131.15*	241.79*	12,133	0.486
30	Nebraska	3,971	30.88	91.84	3,636	0.474
31	Rhode Island	3,241	153.80*	7804.88*	1,838	0.41
32	New Mexico	3,893	-26.04	-46.55	2,994	0.357
33	Iowa	7,404	114.92*	251.90*	4,103	0.314
34	Pennsylvania	34,089	-11.07	18.98	16,379	0.302
35	Kentucky	8,793	23.45	76.96	5,105	0.274
36	Montana	1,378	29.27	52.6	1,150	0.268
37	Alabama	7,903	81.76	83.07	5,572	0.268
38	Delaware	1,430	225.00*	342.72*	999	0.266
39	South Carolina	5,038	-27.56	-33.76	4,247	0.22
40	New Hampshire	N/A	N/A	N/A	1,238	0.212
41	Louisiana	7,331	151.58*	90.61	3,968	0.204
42	Kansas	4,978	20.85	161.31*	2,434	0.203
43	Hawaii	1,270	88.71	-60.39	966	0.197
44	Wyoming	497	21.52	99.6	356	0.151
45	Mississippi	1,997	91.65	4.55	1,409	0.114
46	North Dakota	308	74.01	86.67	250	0.082
47	West Virginia	1,135	30.31	10.95	460	0.053
48	Maine	N/A	N/A	N/A	286	0.042
49	Vermont	61	35.56	1.67	29	0.009
50	South Dakota	N/A	N/A	N/A	24	0.007
	District of Columbia	800	607.96*	393.83*	777	0.28
--	U.S.	2,203,295	74.99	148.83	1,285,873	1.033

*Actual increase may not be as high due to improved or expanded data coverage in this state.

Top 5 Tax Myths of Homeownership That Could Cost You

Don Edam (The Don Edam Group - Owner Options Realty) — Thu, 21 Feb 2008 07:09:40 -0600

Owning a home tops the dream list for most Americans, and for plenty of good reasons. It's a shelter for your family, a gathering place for your friends and a good long-term investment.

Tax breaks are also frequently cited as motivation for moving from renting to owning, and there are many ways a home can cut your tax bill.

But, as is often the case with the U.S. tax code, homeownership tax benefits are not always clear-cut. That frequently leads to some bad information floating around.

While myths, half-truths and misconceptions may abound, Bankrate.com has narrowed it down to five that, if you buy into them, could cost you.

1. My mortgage interest will reduce my tax bill.
This is true for the majority of homeowners, but not for all. And this tax break won't work forever.

To take tax advantage of your home loan's interest, you must itemize and come up with a total that exceeds your standard amount. On 2007 tax returns, the standard deductions are $5,350 for single taxpayers, $7,850 for head of household filers and $10,700 for married couples who file jointly. These amounts increase a bit each year to account for inflation.

"Given home prices these days, most owners are itemizing," says Mark Luscombe, principal tax analyst with CCH of Riverwoods, Ill. By the time they count mortgage interest, property taxes and other nonhome deductions, such as state taxes and charitable gifts, their itemized totals easily surpass their allowable standard deductions.

But most is not all.

Taxpayers who buy a home late in the year, for instance, might find the standard deduction is more beneficial, at least initially, says Kathy Tollaksen, a CPA at Sikich in Aurora, Ill. In these cases, where you make only a few payments in a tax year, depending on your loan you might not pay much interest, at least not enough to exceed standard amounts.

Timing also could reduce or eliminate other home-related tax breaks.

"Quite a few states have real-estate taxes that are calculated in arrears. That is, they have already been paid or mostly paid (by the seller) by the time you buy," says Tollaksen. "In the first year, you're seeing taxes that are someone else's responsibility so you're not getting the full tax value of your real-estate taxes."

The benefit of mortgage interest also could be a myth if you've lived in your home for a long time. In this case, you likely are paying more toward your loan's principal instead of interest. So homeowners at the end of a loan term don't get much, if any, from this tax break.

Or, as Bob D. Scharin, senior tax analyst and editor of Warren, Gorham & Lamont/RIA's monthly tax journal "Practical Tax Strategies," puts it, "Every deductible expense you incur may not produce a deduction."

2. All costs related to my home are deductible.
There are no two ways about this one. It's flat-out false.

"Some buyers think, hope, they can write off everything connected with the house," says Tollaksen. "Not so. Association fees and property-insurance costs are not deductible."

Neither, in most cases, is private mortgage insurance, which your lender probably required if your down payment was less than 20%. However, a new law changes the deductibility of PMI for mortgages originated or refinanced between Jan. 1, 2007, and Dec. 31, 2009.

If you got your mortgage and policy in that time frame, you might be able to deduct your insurance-premium payments. The law also extends beyond private insurance to others, including FHA, VA and rural housing.

There are some limits, though. The PMI deduction is phased out for taxpayers with adjusted gross incomes exceeding $100,000 and is totally eliminated once adjusted gross income reaches $110,000.

Don't try to deduct basic maintenance, repair or home-improvement costs either.

Tollaksen says, "I've had people say, ‘I put a new roof on my home; can I deduct that?' No."

If you try to write off these expenses, expect to hear from the Internal Revenue Service and to pay a higher tax bill (and possible penalties and interest) after you refigure your taxes without the disallowed deductions.

However, you still need to keep track of these expenses.

"If you convert the home to rental property or sell it," she says, "these costs will affect the property's tax basis."

A home's basis is critical when it comes time to sell. And selling is also a tax area in which many people fall for myth No. 3.

3. I must use money from my home sale to buy another residence.
This used to be the only way to get around a tax bill on a home sale. Even then, you were only able to defer taxes by purchasing a new residence of equal or greater value with the profits from your other house. When you sold your final house, you'd owe those long-deferred taxes you had rolled over throughout the years. Home sellers age 55 or older were allowed a once-in-a-lifetime tax exemption of up to $125,000 in sale profit.

But on May 7, 1997, home-sale tax law changed. Still, a decade later, many homeowners are confused about the tax implications of selling.

"I recently heard some neighbors talking about having to buy another house when they sell to avoid the taxes," says Scharin. "If the last time you sold the house was before 1997, you're thinking of those old rules."

Don't worry. Most taxpayers still get a nice break. Now, if you live in the house for two of the five years before you sell, the IRS won't collect tax on sale profit of up to $250,000 if you're single or $500,000 if you and your spouse file a joint return.

"The law change has really affected people's behavior," says Luscombe. "Before, it didn't really matter much whether you sold frequently or held onto your home for a long term. You basically could roll over the gain into a larger home and people could avoid tax until they sold for the final time without putting it into a replacement home.

"Now the law rewards people who sell frequently. In this current market, people who sell every couple of years can get and keep their gain," Luscombe says. "But people who buy and hold might find they have reached the point where the gain exceeds the exclusion."

That means they face unexpectedly high tax bills, even at the lower 15% capital-gains rate. The profit could also push them into a higher overall tax bracket, meaning they would make too much to claim some deductions, credits or exemptions. They also might even end up owing alternative minimum tax.

Another problematic consequence, says Luscombe, is that when the new rules took effect, people basically quit keeping records related to their homes.

"They thought: Since we're never going to be taxed on the sale, there's no need to keep track of what we paid and what improvements we made," he says. The improvements add to your home's basis, which you subtract from the sale price to determine your profit and whether any of it is taxable.

"Now with inflation in the housing market, a lot of people are selling homes in excess of the gains without any way to show that their tax bill should be less," says Luscombe.

4. Putting my child on my home's title is a smart tax move.
Worries about taxes on a residence sometimes lead homeowners to fall for this myth. It's a particularly tricky one, because it combines confusion about residential taxes with the even more complex estate-tax area.

"Sometimes we'll hear about taxpayers who, in doing some quick back-of-the-envelope estate planning, decide to put their home in the children's names," says Tollaksen. "The thinking is: My son or daughter won't have to worry about this when I die."

The goals: Avoid probate, keep the home in the family and get the property out of the parent's estate for those tax purposes. Such a move, however, could produce other tax problems for your children.

Unless the child moves into the newly deeded house with the parent and lives there long enough (two of the previous five years) to make the house the child's main residence, too, says Tollaksen, the son or daughter won't get the $250,000 or $500,000 residential tax break when the child later decides to sell. Without establishing primary residency in the house, either before or after the parent passes away, the child's ownership is viewed as an investment property.

Other parents opt to simply add a child's name along with theirs on the title to the house, known legally as a joint tenancy. It doesn't mean that all the owners live in the home, but simply that two or more people hold title to the property.

This, too, can produce tax complications.

Generally, when someone inherits a property, its value is stepped up. That means when the owner dies, the property becomes worth its fair market value that day.

But if the child co-owns the property with his parent, the child doesn't get to fully use stepped-up basis. Tax law considers the addition of the child's name to the title as a gift. And, along with that half of the home, the child receives half the basis that his or her parent has in the property.

This is known as the property's carry-over basis. And it could be costly.

Consider, for example, that you bought your house many years ago and your basis in the property is $50,000. You add your daughter to the title. When you die, she inherits your half of the home, which by then is worth $250,000. A buyer offers $300,000 for the home.

Pretty good deal, right? From a real-estate perspective, yes. But not when it comes to your daughter's tax bill on the sale.

Rather than owing taxes on just $50,000 more than the house's stepped-up market value, your daughter will owe on three times that amount. Here's the math:

Parent owns home with a basis of:	$50,000
Parent adds child to title, "giving" child carry-over basis of:	$25,000
At parent's death, house is worth $250,000, producing on the inherited half a stepped-up basis of:	$125,000
Home subsequently sells for:	$300,000
Child's total adjusted basis (line 2 plus line 3) is:	$150,000
Taxes due on sale profit (line 4 sale price less line 5 basis) of:	$150,000

What had been done with the best parental intention turned out to carry a big price because of this homeownership tax myth.

5. If I take a capital loss when I sell my home, I can write it off.
This myth, like No. 2, was probably started by wishful homeowners. Sorry, it's just as wrong.

It is true that real estate, like any other asset, has the potential to go down as well as up in value. But unlike most of those other holdings, you cannot write off any loss you suffer if you must sell your main residence for less than what you paid.

That's because your residence, under tax law, is considered personal property.

"When you sell your home for a loss, it's not like other capital items," says Scharin. "You don't get to deduct personal property that you sell for a loss."

"It's the same as any personal property that declines in value," says Luscombe, "like that old TV you sold to the neighbor kid so he could take it to college. You sold it for much less than you paid, but you can't take a loss."

You do, however, have to pay tax on gains you make when selling personal property.

But at least you now know the difference between fact and fiction when it comes to your residential property, which will help you make appropriate real-estate and tax decisions in the future. Full Story

From Money to Marraige: 8 Stress-Saving Tips for Enlisting an Architect

Don Edam (The Don Edam Group - Owner Options Realty) — Wed, 20 Feb 2008 21:24:46 -0600

t takes flexibility, communication and realistic expectations to work successfully with an architect. Here's a round-up (by MSN Real Estate) of some tips from architects and homeowners.

Pay attention to personality. Most people hire an architect only once in their lives. Searching for one is akin to finding a financial planner, architects say. Look for an architect who has designed projects that are similar in style and scope to yours. "There's no substitute for experience," says Todd Strickland, a partner with Historical Concepts, an Atlanta architectural firm. Because designing a home is such a personal project, it's important that you feel able to communicate with your architect.

Liza Nugent, 41, and her husband needed an architect to combine their apartment on Manhattan's Upper East Side with a neighboring unit; they got referrals from friends. The first architect they called made a snippy remark about how "unsophisticated" co-op boards in buildings on side streets such as theirs make renovations difficult. "I thought, with that kind of attitude, we definitely wouldn't get along," Nugent says. After calling two more architects and interviewing three others, the Nugents picked a longtime acquaintance who had creative design solutions for their project.

Enlist an architect early. Most architects will do their best to design a structure to work with whatever plot of land you have to build on. But they also can help scout prospective land purchases. With a general vision of your house and a budget in mind, the architect can evaluate the pros and cons of a location that a client might overlook, such as whether a site is big enough to accommodate the dwelling or whether a neighbor's right to a view will preclude building the 12-foot ceilings you want.

Is the site free of utility constraints? What about topographical features that could increase the cost of building? Paying for four or five hours of evaluation is likely to save money in the long run.

Bring visuals. Pictures help an architect understand your vision, whether it's a rough sketch you've made, magazine photos of homes you like, or a coffee-table book featuring interiors by your favorite designer. Snapshots of specific lighting fixtures or cabinet styles are helpful, but so are pictures that convey intangibles: the sense of place created by sunlight streaming through a skylight, or a library room with a "warm" feeling.

Dallas architect Marc McCollom, who designs modern houses, says clients also should bring pictures of things they don't like. Architects will regard the client's visual portfolio as a cue for whether they'll make a good team. "If they show me pictures with crown molding and decorative wallpaper, I shouldn't take that job," McCollom says. "I'm not going to be happy, and we shouldn't work together."

Find a listener. A relationship with a designer is like a marriage: Go with someone who listens, cut your losses with someone who doesn't - or risk getting a house you don't want to live in. When Jim Jenkins began a $1.5 million renovation of his Alamo, Calif., home, he hired a local who had designed other houses in the neighborhood. But 18 months into the process, the architect still hadn't produced a design that the Jenkinses liked or that could get past the local homeowners association.

"He wouldn't design what we were looking for," Jenkins says. "My wife's looking for something Caribbean and he kept thinking California Ranch."

Jenkins pulled the plug on that designer and hired a Berkeley architect, Robert Nebolon. "He read the codes, had some creative ideas and within six months I got what I was looking for," Jenkins says.

Clients need to listen, too. Telephones, faxes and e-mail aren't the best ways to communicate about home design. Avoiding in-person meetings will delay construction. A good architect won't act on any part of a project without clear approval.

Talk money upfront. A flat fee may be appropriate for projects whose scope is very defined. But construction projects often include unforeseen challenges, and for that reason most architects prefer to charge by the hour or by a percentage of building costs. Some architects charge by the hour in the concept stage and then charge fees ranging from 8% to 18% of construction costs after hiring. For projects costing $1.5 million plus, expect fees to range from 12% to 18%, says James P. Cramer, chairman of Greenway Group, a design-industry consulting firm.

Some architects ask clients for a wish list of features, fixtures and qualities along with an estimated budget. "Sometimes people's expectations aren't realistic, given what their budgets are," says Manhattan architect Darby Curtis.

Consider full service. Architects will be as involved as you want them to be. They can simply do design conception and deliver drawings. Or they can visit sites, coordinate contractors and observe construction. Many architects advise clients to retain a designer through construction. "In the long run you'll save yourself from headaches and extra construction," Curtis says.

Have a strong marriage. Architects offer this last bit of advice in all seriousness. Money tends to cause stress in a relationship, and building a home involves a lot of money. Building a house together, McCollom says, "is not going to save your marriage." Full Story

Too Many Cast-Off Toys Cluttering Your Casa? Rental Options to the Rescue

Don Edam (The Don Edam Group - Owner Options Realty) — Wed, 20 Feb 2008 20:50:46 -0600

Every parent of young children has an unwanted-toy graveyard somewhere in the home. Today's prized playthings inevitably become tomorrow's cast-offs, ready to be given away, discarded or boxed up in the garage. According to the folks at Springwise however, the alternative, offered by Texas start-up Babyplays, is to receive four to six toys by mail each month. Parents can keep the toys as long as they like, and send them back to receive a fresh batch. Monthly subscription rates range from $36.99 to $64.99.

Babyplays offers a range of age-appropriate toys, and depending on their membership level, parents can rent up to 10 toys a month. Besides reducing clutter, members can save money by renting instead of owning. You could call it the Netflix rental model applied to toys. We've seen start-ups tweak the rent-not-buy concept in innovative ways: a German company, Lütte-Leihen, sends parents a fresh batch of baby clothes that can be exchanged for new ones each month and the same model has been applied to women's accessories, with companies like Bag, Borrow or Steal offering members access to designer handbags and jewellery.

A factor all of these firms must reckon with is the need to acquire an adequate inventory of items to accommodate customer whims-a potentially expensive proposition. That said, the rental model still has plenty of new potential applications. What's key is that many consumers are becoming less interested in full ownership, opting instead for the convenience and flexibility of renting or fractional ownership.

Consumer Confidence: High Hopes or Hardly Holding On?

Don Edam (The Don Edam Group - Owner Options Realty) — Tue, 19 Feb 2008 20:55:02 -0600

According to the Center for Media Research and the BIGresearch Consumer Intentions & Actions Survey in February, over 8,000 consumers provided unique insights & identified opportunities in a fragmented and transitory marketplace. On the downside, only one in four (26.2%) are confident/very confident in chances for a strong economy in February, a five year low. A sinking housing market, credit collapse, and record prices at the pump provides the impetus for only half as many consumers holding high hopes for the future than in February 2007.

Consumers Anticipating a Strong Economy
*Date*	*% of Respondents*
February 2003	30.8
February 2004	49.3
February 2005	47.7
February 2006	44.5
February 2007	53.2
February 2008	26.2
Source: BIGresearch, February 2008

On the upside, Phil Rist, Vice President of Strategy for BIGresearch, concludes that "Many Americans will be wisely using their rebate checks to save, spend, and pay down debt, so the overall result will be positive for the U.S. economy... some will splurge on big ticket items, many... will use the checks for important day-to-day purchases."

While women will spend a larger percentage of their rebate check than men (42.2% vs. 38.7%), both genders will plan to set aside the same percentage for savings (18.7%) Young adults 18-24 will spend more of their checks (46.2%) than any other age group. And:

30.3% contend they'll save the money in their piggy banks
25.4% will use it to pay down credit cards, while
15.7% say they'll pay down debt (installment loans)
14.6% reveal that they'd purchase necessities with their checks, with 22.5% of those earning under $50,000 buying necessities

And while 39.7% of those aged 18-24 are the most likely group to save their checks, 14.9% of this age bracket is the most likely to use their checks toward paying off student loans. 13.3% will buy apparel, and 11.2% expect to purchase electronics.

While confidence in the economy is plummeting, only two in five contend that they've become more practical in their purchases, down a point from January, and still on the rise from ‘07.

50.4% of the respondents contend there will be "more" layoffs in the next six months, up from 41.5% in January and the highest reading since March ‘03 (50.4%). While consumers foresee a dreary outlook for employment, it seems they have the "it's not going to be me. 5.5% fear becoming laid off, up slightly from January's 5.2%.

With pump prices rising to today's average $2.972/gal (source: AAA), driver's budgets are increasingly strained by additional fuel expenditures. While 40.5% are attempting to cope by simply driving less, 35.3% say pump pressures have led them to reduce dining out and 33.6% decreasing vacation/travel/ 29.8% are spending less on clothing. while 22.4% are delaying a major purchase, such as a car or furniture

Seasonal demand for spring merchandise, such as Easter apparel and lawn & garden supplies, lifts the 90 Day Outlook from January, according to the BIGresearch Diffusion Index, but the current economic outlook is expected to put a damper on spending compared to February 2007.

Consumers aren't as likely to be considering purchasing high-dollar durables in the next six months compared to last month and last year. Purchase intentions are down for computers, furniture, home appliances, housing, jewelry, DVD/VCR, and digital cameras...major home improvements and vacation travel flat from January (though still down from ‘07), while TV remains flat from last month and rises from last year.

Six month purchase intentions for autos remain stable from last month at 11.8%. Among those planning to buy, 43.5% still plan to buy new, while 16.7% aren't yet sure. The average price auto buyers are planning to spend has lowered from $21,150 in January to $19,830 this month.

For more from BIGresearch, please visit them here.

“Greening” Your Real Estate Office

Don Edam (The Don Edam Group - Owner Options Realty) — Mon, 18 Feb 2008 23:24:29 -0600

Whether you have your own office or are part of a larger office environment, you can make some dramatic changes for your pocket book and the environment quickly and easily. Here are some ideas from RISMedia to get you started.

- Use both sides of writing paper. Copy documents on both sides as well. This reduces paper costs enormously and saves a considerable amount of wasted paper.

Statistics: It is estimated you can save 20% on paper by everyone following these simple rules. This can save $70 per employee, per year or $7000 in just a 100 employee office! An employee in a typical business generates 1.5 pounds of waste paper per day, most of which is NOT recycled.

- Paperless payroll can create a large savings as well. Asking receivers of your e-mails and documents to only print them out if it is absolutely necessary. Create a common statement that is at the bottom of all your e-mail communications.

- Buy office supplies that disintegrate in landfills. Avoid aluminum, PVC, and styrofoam.

- Buy recycled paper that is PCF (processed chlorine free). Use unbleached or uncolored paper. If you need to use colored paper, use pastels. Buy products in bulk to minimize packaging.

Statistics: A ton of 100% recycled paper saves the equivalent of 4,100 kWh of energy, 7,000 gallons of water, 60 pounds of air emissions and three cubic yards of landfill space. In the U.S., 40% of solid waste is paper!

- Change light fixtures to compact fluorescent lamps. Replace old fluorescent lighting fixtures that are likely using T-12 lamps with T-8 fluorescent lamps. You'll get better color, less flickering and use 20% less energy.

- Use occupancy sensors in conference, break and bathrooms. They are easy to install and relatively inexpensive.

Statistics: Changing to more efficient lamps can achieve 50-80% savings, and they last 10X longer. Lighting is generally 29% of the energy use in an office.

- Need new heating and cooling equipment? Opt for the highest energy efficiency equipment possible. Go to the ENERGY STAR Website for information. Turn your thermostats down by one or two degrees and save about 10% on your electricity bill!

Statistics: Heating and cooling office space is responsible for 40% of carbon dioxide emissions in the U.S. and it eats more than 70% of electricity usage.

- If you are searching for office space, look for green certified buildings. Contact the Leadership in Energy and Environmental Design (LEED) and the US Green Building Council to start.

Tax Savings: Building owners and tenants who can reduce energy costs by 50% or more can get a tax deduction. Go to the government's ENERGY STAR Website for more information. Many local utility companies are now offering energy audits for free. Contact your local utility and get started.

- Use power strips for all equipment that can be turned off at night in your home, as well as your offices.

Statistic: 40 watts of energy can be lost for each piece of equipment remaining plugged in, but not in use.

- Upgrade older computer equipment by adding memory capability or RAM and make repairs.

Always purchase new energy efficient equipment if you must replace it, and make sure it has expandable memory slots. For computers the Green Electronics Council's Electronic Product Environmental Assessment Tool can help.

- Place equipment into sleep modes automatically - screensavers do not count - they actually waste more energy.

- Always recycle older equipment & cartridges with the manufacturer or at recycling drives in your community. Never just throw away cartridges or equipment in the garbage.

- Recycle cell phones and rechargeable batteries at sites such as www.call2recycle.com

Statistics: Office equipment typically uses about 16% of energy costs. If every US computer and monitor were turned off at night, the nation could shut down eight large power stations and avoid emitting 7 million tons of CO2 every year. And the energy savings in just your own office will add up to real dollars!

- Have a recycling program for paper, glass, plastic at your office. Many times recycling bins are provided free of charge. Search the Internet or phone book for your city's program and get started. Make sure everyone knows where the recycling bins are and what you expect.

- Reward employees for good energy conservation and recycling behavior. You can even give incentives for ride sharing, bicycling and walking to work, paper savings, energy savings and more. Communicate what they have saved in money, energy and materials. Create office Green Guidelines.

- You will find many ways around the office to eliminate landfill waste and conserve energy if you look. Even smaller items like eliminating styrofoam coffee cups, plastic forks, knives and spoons. The kitchen is a great area to review. And, again, it will save money too!

- If you are too busy and have a large office or numerous offices, consider hiring an energy manager/transportation coordinator. This person can pay for himself in a very short time and preserve the environment for future generations. Full Story

More Green Living: 10 Easy Tips for “Greening” Your Home

Don Edam (The Don Edam Group - Owner Options Realty) — Fri, 15 Feb 2008 22:20:59 -0600

When it comes to the environment, being a good global citizen starts at your doorstep. From recycling to using alternative cleaning materials, minor changes at home can add up to real benefits for the planet, not to mention your own health and happiness.

It may be a cliché, but the best way to be Earth-friendly is to cut down on what you consume and recycle whenever you can. The U.S. generates about 208 million tons of municipal solid waste a year, according to the National Institutes of Health. That's more than 4 pounds per person per day. Every little bit helps; recycling just one glass bottle saves enough electricity to light a 100-watt bulb for four hours.

Here are 10 more easy ways from MSN.com to green your home:

1. Green up your appliances. Getting rid of that old refrigerator in the garage could save you as much as $150 a year, according to the Environmental Protection Agency. Appliance use comprises about 18% of a typical home's total energy bill, with the fridge being one of the biggest energy hogs. If any of your appliances is more than 10 years old, the EPA suggests replacing them with energy-efficient models that bear their "Energy Star" logo. Energy Star-qualified appliances use 10%-50% less energy and water than standard models. According to the Energy Star site, if just one in 10 homes used energy-efficient appliances, it would be equivalent to planting 1.7 million new acres of trees.

Also, consider what you put in that energy-efficient refrigerator. Pesticides, transportation and packaging are all things to consider when stocking up. Buying local cuts down on the fossil fuels burned to get the food to you while organic foods are produced without potentially harmful pesticides and fertilizers.

2. Watch the temp. Almost half a home's energy consumption is due to heating and cooling.

Turn down the thermostat in cold weather and keep it higher in warm weather. Each degree below 68°F (20°C) during colder weather saves 3%-5% more heating energy, while keeping your thermostat at 78°F in warmer weather will save you energy and money. A programmable thermostat will make these temperature changes for you automatically.
Clean your furnace's air filter monthly during heavy usage.
Consider a new furnace. Today's furnaces are about 25% more efficient than they were in the 1980s. (And don't forget to check out furnaces carrying the Energy Star label.)
To keep your cool in warmer weather, shade your east and west windows and delay heat-generating activities such as dishwashing until evening.
Use ceiling fans instead of air conditioners. Light clothing in summer is typically comfortable between 72°F and 78°F. But moving air feels cooler, so a slow-moving fan easily can extend the comfort range to 82°F, according to "Consumer Guide to Home Energy Savings" by Alex Wilson.

3. Save water. The Web site "Water - Use it Wisely," created by a group of Arizona cities, lists 100 simple ways to save water. We'll share just a few here:

Put an aerator on all household faucets and cut your annual water consumption by 50%.
Install a low-flow toilet. They use only 1.6 gallons per flush, compared to 3.5 gallons per flush for pre-1994 models. If you have an older model, adjust your float valve to admit less water into the toilet's tank.

Of course, you don't need products to save water - behavioral changes also add up quickly: using a broom instead of the garden hose to clean your driveway can save 80 gallons of water and turning the water off when you brush your teeth will save 4.5 gallons each time.

4. Clean green. Stop buying household cleaners that are potentially toxic to both you and the environment. In his book, "The Safe Shopper's Bible," David Steinman suggests reading labels for specific, eco-friendly ingredients that also perform effectively. These include grain alcohol instead of toxic butyl cellosolve, commonly found in carpet cleaner and some window cleaners as a solvent; coconut or other plant oils rather than petroleum in detergents; and plant-oil disinfectants such as eucalyptus, rosemary or sage rather than triclosan, an antifungal agent found in soaps and deodorant. Or, skip buying altogether and make your own cleaning products. Use simple ingredients such as plain soap, water, baking soda (sodium bicarbonate), vinegar, washing soda (sodium carbonate), lemon juice and borax and save money at the same time. Check out these books by Annie Bertold-Bond for cleaning recipes: "Clean and Green" and "Better Basics for the Home."

5. Let there be energy-efficient light. Compact Fluorescent Light bulbs (CFLs) use 66% less energy than a standard incandescent bulb and last up to 10 times longer. Replacing a 100-watt incandescent bulb with a 32-watt CFL can save $30 in energy costs over the life of the bulb.

6. Save a tree, use less paper. You can buy "tree-free" 100% post-consumer recycled paper for everything from greeting cards to toilet paper. Paper with a high post-consumer waste content uses less virgin pulp and keeps more waste paper out of landfills.

Other tips:

Remove yourself from junk mail lists. Each person will receive almost 560 pieces of junk mail this year, which adds up nationally to 4.5 million tons, according to the Native Forest Network. About 44% of all junk mail is thrown in the trash, unopened and unread, and ends up in a landfill. To stem the flow into your own home, contact the Direct Marketing Association's Mail Preference Service at P.O. Box 643, Carmel, NY 10512, or download the online form. Opt out of credit card or insurance offers at OptOutPrescreen.com or by calling 888-567-8688, a single automated phone line maintained by the major credit bureaus.
Buy unbleached paper. Many paper products, including some made from recycled fibers, are bleached with chlorine. The bleaching process can create harmful byproducts, including dioxins, which accumulate in our air, water and soil over time.

Finally, here's a third answer to the old "paper or plastic" question: No thanks. Carry your own cloth bags to the store to avoid using store bags.

7. Want hardwood floors? Opt for bamboo. Bamboo is considered an environmentally friendly flooring material due to its high yield and the relatively fast rate at which it replenishes itself. It takes just four to six years for bamboo to mature, compared to 50-100 years for typical hardwoods. Just be sure to look for sources that use formaldehyde-free glues.

8. Reduce plastics, reduce global warming. Each year, Americans throw away some 100 billion polyethylene plastic bags - from grocery and trash bags to those ultra-convenient sandwich bags. Unfortunately, plastics are made from petroleum - the processing and burning of which is considered one of the main contributors to global warming, according to the EPA. In addition, sending plastics to the landfill also increases greenhouse gases. Reduce, re-use and recycle your plastics for one of the best ways to combat global warming.

9. Use healthier paint. Conventional paints contain solvents, toxic metals and volatile organic compounds (VOCs) that can cause smog, ozone pollution and indoor air quality problems with negative health effects, according to the EPA. These unhealthy ingredients are released into the air while you're painting, while the paint dries and even after the paints are completely dry. Opt instead for zero- or low-VOC paint, made by most major paint manufacturers today.

10. Garden green. First, use compost instead of synthetic fertilizers. Compost provides a full complement of soil organisms and the balance of nutrients needed to maintain the soil's well-being without the chemicals of synthetic fertilizers. And healthy soil minimizes weeds and is key to producing healthy plants, which in turn can prevent many pest problems from developing to begin with.

Use native plants as much as possible. Native plants have adapted over time to the local environment and support native animals. They also use less water and require less of your attention.
Focus on perennials. Gardening with plants that live for more than one year means you don't have to pay for new plants every year; it also saves the resources used commercially to grow annuals.
Stop using chemical pesticides. American households use 80 million pounds of pesticides each year, according to the EPA. These toxic chemicals escape gardens and concentrate in the environment, posing threats to animals and people, especially children. A better alternative is to try a variety of organic and physical pest control methods, such as using diatomaceous earth to kill insects, pouring boiling water on weeds or using beer to bait slugs. You can find more non-chemical pest control tips at the National Audubon Society's site.

Finally, consider using an old-fashioned push mower. The only energy expended is yours. Full Story

Will Paying Your Mortgage Off Early Payoff for You?

Don Edam (The Don Edam Group - Owner Options Realty) — Fri, 15 Feb 2008 22:06:37 -0600

Does it ever make sense for a homeowner to pay off a mortgage early?

According to Kiplinger.com, the answer depends on the interest rate of the loan and the timing of the payoff.

Paying down a 6% mortgage is the equivalent of earning a 6% taxable return on your money. You should be able to beat that return by investing your money elsewhere, especially when investing for the long term.

"If you have a very low interest rate on your loan and know that you can earn a higher return with additional money you have to invest, it's OK to keep the mortgage," says Los Angeles CPA Michael Eisenberg.

Investing outside your mortgage also gives you easier access to your funds because you don't have to borrow against your home equity to get your money. Paying more toward your mortgage can reduce the total interest paid, and you might pay off your loan earlier. But it doesn't lower your payments, and if you're still in the early years of the loan, you might not see the difference for a decade or more.

Your priorities may be different, however, if you're nearing retirement and your mortgage is close to being paid off. In that case, making extra payments can speed up the payoff, lowering your expenses after you leave your job. In Eisenberg's experience, "most people don't want to have debt when they retire."

Paying off the mortgage early made sense for Myrna Oliver, 64, who worked at the Los Angeles Times for more than 30 years. When Oliver was in her mid-50s, many of her colleagues were getting buyout offers. She wasn't ready to retire yet, but she wanted to be able to jump at a good offer if one came her way. To do that, she needed to cut her post-retirement expenses - especially the mortgage on her condo in downtown Los Angeles.

"I didn't want the mortgage payments to figure into my retirement spending," says Oliver.

So Oliver began making extra payments toward her 7.5% loan whenever she got a raise, a bonus or extra money from some other source. At age 60, she paid off the loan - eight years early - and shifted the money to her 401(k) plan to take advantage of catch-up provisions for contributors who are 50 or older. This year, employees in that age range can kick in an extra $5,000, on top of the $15,500 that all workers may contribute.

When Oliver got a buyout offer last year, she had only three weeks to make a decision, but it was a no-brainer.

"Having the mortgage paid off gave me the freedom to take early retirement," she says - and to take a year off to travel. Full Story

Hollywood Hits the Market

Don Edam (The Don Edam Group - Owner Options Realty) — Thu, 14 Feb 2008 10:11:39 -0600

Looking for a commanding view of the collapsing housing market? According to a recent article in the Wall Street Journal, some 138 mountaintop acres next to the landmark Hollywood sign in Los Angeles are going on sale Wednesday for $22 million.

Abutting the largest urban park in the country -- and just west of the giant sign's H, the property atop Cahuenga Peak has been privately owned for years. Eccentric billionaire Howard Hughes bought it before World War II in hopes of building a mountain hideaway for his then-girlfriend Ginger Rogers. She demurred. It passed undeveloped into Mr. Hughes's estate and was sold in 2002 to Chicago-based Fox River Co. for $1.68 million.

Two years ago, city officials, residents and conservationists launched a fundraising drive to buy the property atop the 1,820-foot-high peak, which affords sweeping views of Los Angeles and the San Fernando Valley and the San Gabriel mountains. Their stated goal was to make the peak part of Griffith Park, the municipal land that practically envelopes it. Safe to say, they didn't raise anywhere near the current $22 million asking price.

Griffith Park has suffered two damaging wildfires in the past year. Any potential developer is certain to face obstacles getting building permits.

Still, rare hill properties in Los Angeles can attract determined buyers, while the overall housing market remains depressed. In Los Angeles County, notices of default outnumbered home sales in the fourth quarter of 2007, and the median price of homes continues to fall, according to DataQuick Information Systems, a La Jolla, Calif., real-estate research firm. From the lofty heights of Cahuenga Peak, the view isn't necessarily rosy. Full Story

New & Old Points: Two More Tax Deductions Often Missed

Don Edam (The Don Edam Group - Owner Options Realty) — Thu, 14 Feb 2008 10:02:04 -0600

How many times have you done your taxes and, three weeks later, learned you had missed the opportunity for a deduction? Too many, I'm sure. How can you not miss these deductions the next time? Start planning now.

I've posted previously about What is Deductibe When Buying a Home, but here are two of the most often overlooked tax deductions for current homeowners that can affect your tax bill for 2007 and your tax planning for 2008.

New points on refinancing

With interest rates so low over the past few years - even in 2007 and 2008 - lots of homes have been refinanced, sometimes more than once.

Any points you pay to refinance your home can be deducted on a monthly basis over the life of the new loan. So, if you refinanced your mortgage on June 1, 2007, for a 20-year term, seven out of 240 months will have passed after Dec. 31. If you paid $2,400 in points, you can write off $70 ($10 a month for seven months) for 2007. You can write off $120 for 2007 and each year thereafter until the points have been deducted in full. The amount may not be huge, but every little bit helps.

Old points on refinancing

This is one deduction lots of people miss. All unamortized points on an old refinancing are deducted in the year of a new refinancing.

So, let's say you refinanced on June 1, 2006, and paid $2,400 in points. You refinanced again on June 1, 2007. You can deduct all the remaining points on the 2006 loan. That's $2,280 plus the $50 you could deduct for January through May 2007. Likewise, if you refinance the 2007 loan in 2008 (if interest rates stay low), you will be able to write off the remaining balance on your 2008 return. Full Story

Retirement & Relocation: Boomers' Plans to Pursue Sun and Fun

Don Edam (The Don Edam Group - Owner Options Realty) — Wed, 13 Feb 2008 22:23:47 -0600

According to a recent article by RISMedia, additional results from a new retirement study conducted by Gray Hair Management, one of leading career coaching, networking and job search resources for professionals with base salaries of $75,000 to $300,000+, reveal that 70% of America's corporate executives plan to pursue hobbies, travel or golf during their retirement years, and half are planning a post-retirement relocation.

Gray Hair Management's 2007 Executive Retirement Survey was conducted in December 2007 and included almost 1000 senior level executives age 40 or older. And according to the article, results related to retirement age, financial readiness and top retirement concerns were reported earlier this month, revealing that 75.2% of America's corporate executives plan to retire after age 60 and only half believe they are on course, financially, to retire at their planned retirement age. Additionally, health care and finances top their list of retirement concerns.

Leisure Pursuits

Contrary to reports that most baby boomers plan to work or start businesses during retirement, Gray Hair Management found that the majority of corporate executives (70.4%) plan to pursue hobbies, travel or play golf in their retirement days. Specifically, 30.9% said they plan to pursue hobbies, 25.9% plan to travel and 13.6% plan to play golf. However, 9.1% plan to start a business, 5.7% plan to go back to school, 5.4% plan to do volunteer work and 3.8% plan to work part-time (primarily as teachers or consultants).

"As baby boomer executives postpone retirement until their late sixties, seventies and beyond, it appears that most plan to enjoy leisure pursuits, rather than work, in their post-retirement days," said Scott Kane founder and managing director of Gray Hair Management. "For those who plan to work after retirement, they will pursue volunteer opportunities, entrepreneurial ventures or part-time work as teachers or consultants."

Retirement Relocation

The Gray Hair Management retirement survey also found that 50.7% of corporate executives plan to relocate when they retire. Almost 40% (38.5%) cited climate is the biggest reason for their planned post-retirement move, while 23.5%% want a smaller home, 17.5% said they need to downsize financially and 13% want to move closer to family.

Of those who plan to relocate after retirement, 74.4% plan to move out of state, with 8.5% planning to move to Florida, 7.6% to Arizona, 2.7% to Texas and 54.1% to other states. Additionally, 12.4% plan to move within their existing city/area, while 5.6% plan to move out of the country.

For more information, visit http://www.grayhairmanagement.com/. Full Story

Couples Therapy: 6 Financial Tips for Less Romantic Times

Don Edam (The Don Edam Group - Owner Options Realty) — Wed, 13 Feb 2008 22:08:58 -0600

Valentine's Day is a time for roses, chocolate and sparkly dinners. But according to RISMedia, if you want to ensure your relationship with your partner endures through less-romantic times, be sure to talk about finances. Being on the same page about all of your financial data is a long-lasting way to show each other your commitment.

To help you broach the subject of finances and make sure they are in alignment, they say that we should consider these tips from Marvin Feldman, president and CEO of the nonprofit Life and Health Insurance Foundation for Education (LIFE):

Have ‘the talk.' If you haven't done so yet, tell each other where your key financial information (checking, savings and investment accounts, mortgages, and insurance policies), as well as valuables (birth and marriage certificates, jewelry, safe deposit key) are located. It's important to understand each other's financial dreams and plans, as well as final wishes, so that you know exactly what to do in an unforeseen situation.
Boost your life insurance. This is of paramount importance if you have dependents. According to the Life Insurance Marketing and Research Association, today's average married couple has less than half the amount of life insurance coverage experts recommend. For husbands, it's barely enough to replace their income for 4.2 years, and for wives 4.9 years.
Evaluate disability insurance needs. According to LIFE research, 70% of working adults say they could only afford to take off one month or less of unpaid vacation before everyday expenses would force them to return to work. Yet, nearly one out of every three workers over the age of 30 will suffer a disability lasting at least three months at some point in their career. To ensure that financial strain doesn't fall on your household and figure out how much disability insurance you need, visit www.lifehappens.org/disabilitycalculator.
Where there's a will, there's a way. If you are married, now is as good a time as any other to put in place a will that names executors, guardians and trustees. This is especially relevant if you have small children, to ensure their well-being in the rare event that something happens to both you and your spouse. When choosing a guardian for your kids, don't hesitate to look outside the family; it is more important to find someone with values similar to yours rather than entrusting an aunt or an uncle you're not comfortable with.
Meld your financial responsibilities. While your chemistry may be great in the beginning of a relationship, make sure it lasts by determining upfront your spending and saving habits, whether you want a joint checking account, and whose responsibility it is to handle the bills.
Rest in peace. This is always a tough topic, but discussing your final wishes and arrangements will ensure neither of you will be burdened with those decisions later on. Write down and tell your spouse, as well as other family members, where you want to be buried, funeral arrangements and even whether or not you wish to be an organ donor. Full Story

Minneapolis Makes Forbes Top 3 in "America's Best Cities for Couples"

Don Edam (The Don Edam Group - Owner Options Realty) — Tue, 12 Feb 2008 19:04:59 -0600

With rents in many cities skyrocketing, men and women marrying later and a divorce rate for first-time marriages that hovers at about 45%, it's no wonder more American couples are deciding to shack up.

There were an estimated 6.02 million unmarried-partner households in the U.S. in 2006, according to the Census Bureau's latest research. This number includes 779,867 same-sex households. When the census began measuring unmarried partners in 1996, there were only 2.86 million opposite-sex couples.

Though you likely know at least one cohabiting pair, unlike their married and single peers, unmarried couples are not an easy group to quantify. They cannot check the single or married box truthfully, and there is little but a shared address to signify their official commitment.

But couples who live together have needs, too. In the Forbes.com roundup of the best cities for couples, they've identified what this growing demographic requires to maintain a stable relationship while on the path to marriage or something less traditional. They selected the country's 40 largest metropolitan areas and collected data on marriage and divorce rates for the 20- to 34-year-olds who live there, the affordability of a starter home, the area's income disparity and the availability of family counseling.

Dallas, the city made famous on television for its scheming lovers and dysfunctional relationships, topped the list. Four other Texas cities are in the top 10: Houston, Austin and San Antonio. Cities at the bottom of our list, with low marriage rates, high income disparity or poor housing affordability, included Cleveland, Providence, R.I., and Miami.

Top 5 cities for couples

Dallas
Houston
Minneapolis
Denver
Austin, TX

You can see Forbes' full slide show of best cities for couples here. Full Story

Green Living: How "Green" is Your Lifestyle?

Don Edam (The Don Edam Group - Owner Options Realty) — Tue, 12 Feb 2008 18:52:22 -0600

People band together online to date, discuss politics or lose weight. Now, according to the folks at Springwise, a US website called Greenopolis has created a community whose members help each other live in a more earth-friendly manner. After registering on Greenopolis, which is still in beta, visitors complete an online survey that analyses their daily activities to determine how ‘green' their lifestyle is. Based on the survey findings users receive a coloured badge, which shows other members just how much of a friend to the earth they really are. Orange badge holders need to clean up their environmental act, and solid green badge holders are on the right track.

By participating on the site, users are awarded points, which are displayed for other members to see (sometimes, peer pressure can be used for good). More points-and corresponding changes in badge colour-show that they're becoming more environmentally responsible. Plus, when the site officially debuts, points can be used to receive discounts on sustainable products. Greenopolis founders also want to make the badges portable, so that members can post them on their blogs and social network pages.

Energy Audits to Inspections: Helping Homeowners Maintain Value

Don Edam (The Don Edam Group - Owner Options Realty) — Mon, 11 Feb 2008 10:39:54 -0600

With reports that foreclosures are up 51% from 2006 and that home ownership took a record plunge in 2007, RISMedia says it's clear that 2008 will be a year of economic uncertainty, and at worst, a year of continuing downturn. As consumers continue to feel the squeeze, the American Society of Home Inspectors (ASHI) reminds homeowners and those eager to sell to look to ASHI Certified Inspectors when considering options for buying, selling or maintaining their home in a down market.

"ASHI has taken steps to arm its members with the resources and support to provide a diverse range of services for homeowners," said Brion Grant, 2008 ASHI president. "We know that one-size doesn't fit all in this market. From energy audits to maintenance inspections, phased-inspections and more, we're arming members with tools to diversify their services so that they can meet the needs of the public."

New Services for Homeowners

Energy audits are among the core services that ASHI is encouraging its members to fine-tune so consumers have the benefit of potential cost savings. In December, members of ASHI's Blue Ridge Chapter (Virginia) participated in group training with a nationally certified energy auditing company to secure certification to perform energy audits in their region. "With the cost of fuel skyrocketing, energy audits can uncover inefficiencies and point to savings," added Grant. "ASHI is working in conjunction with a certifying organization to provide opportunities for training and certification so that its members can offer this ancillary service nationally."

Another service homeowners may not think about is maintenance inspections.

"Maintenance should be at the top of every seller's list this year, said Grant. "In this market, home buyers have more properties to choose from, and will look closely at how well a home has been kept up."

Homeowners who are serious about selling their home in 2008 should consider hiring an inspector to conduct a maintenance inspection, which includes checking everything from the foundation, roof and gutters, to a home's exterior and interior walls, electrical wiring and plumbing. ASHI also offers a maintenance checklist, a list of items in the home that should be maintained annually or by season. Those interested in obtaining a copy of ASHI's home maintenance checklist should contact a local ASHI Certified Inspector via ASHI's Website www.ASHI.org.

Services for Buying or Building a Home

With a record 2.18 million homes sitting vacant and sellers chomping at the bit to unload their home, buyers are at risk too. Before purchasing a home, ASHI encourages buyers to hire an inspector to conduct a pre-sale inspection to determine its quality, efficiency and safety. "There are a lot of people who are willing to do whatever it takes to sell their homes," said Grant. "In a market like this, people are quick to jump in because of the rock-bottom price rather than the quality and safety of the home." And, with many bank-owned properties being sold "as is," meaning the seller will not be performing any repairs, pre-sale inspections can provide vital information about costly defects.

Phased inspections are also a good way to protect the interests of people who are building a home from scratch. By engaging a home inspector early on, even in the site selection, homeowners can benefit from having an inspector assess the quality of construction at every step. From pouring the foundation, to closing the walls, home inspectors can provide an unbiased assessment of a home that will save homeowners time and money.

"I wish forecasting the future was as easy as picking up a Magic 8-Ball," said Grant. "‘Outlook good' would be a welcomed relief from what we've seen over the last year. But Americans are resilient, and ASHI is committed to helping homeowners weather this storm." Full Story