Home Decorating Tips

Furniture Placement

• What your mom told you about making a good first impression is true, even with inanimate objects.  If the view from a doorway includes looking at the backs of chairs and dressers, or rows of uninviting furniture pushed up against the walls, a visitor won’t feel welcomed in.
• Use balance to bring a designed feel to a room.  To achieve balance, draw an imaginary line through the room and balance the furniture placed in each half.
• The traffic pattern is probably the most important factor to consider in furniture placement.  You should be able to enter and move about the room, getting to and from the most used items with ease.
• If you have the space, furniture moved to the middle of the room, instead of against the walls can create a great traffic pattern, as well as being warm an inviting.
• Allow 24 to 30 inches between furnishings for walking, (18 inches between sofa and coffee table) and be careful not to obstruct doors or windows.  Keep chairs and sofas no more than 8 feet apart for easy conversing.
• Rooms are more inviting if they are not overfilled with furniture.  If you have a piece that is too large, or is seldom used, consider moving it to another room, storing it, or selling it.

Focal Points

• A room should have a focal point.  It can be a fixed element, like a fireplace or a picture window, or a non-fixed element, like a favorite piece of art or furniture.  If you have a room with two or more things that compete for attention, such as a bedroom with a fireplace, you may choose to pick one and downplay the other.  If you want to highlight the fireplace, even though the bed is larger and more imposing, you can dress the bed simply while placing an eye-catching arrangement on the mantel.
• If a room lacks an obvious focal point, create one.  Choose to showcase your collectibles, a quilt or piece of art.  Add an artificial fireplace or a mirror.  Accent this focal point with lighting and anchor it with a piece of furniture such as a table, sofa, or a bookcase.
• Live in a great setting?  Create a focal point of your view by leaving a window free of heavy window treatments.

Color

• If you have patterned furniture, a rug, or large piece of artwork, pick colors you like from the pattern.  Choose a neutral wall color from the pattern’s lighter colors and secondary accents from the rest.
• Choose colors that you love.  Take a look at your closet for inspiration.  What colors do you wear the most often?  Even if your favorite is too bright for a wall color, pick a complimentary neutral for the wall and accent in the bright shade.  In contrast, don’t choose colors you don’t look good in, or you won’t want to spend time in the room.
• An accent color is a color that stands apart from any of the other colors within a room. Accent colors appear less frequently in a color scheme but, as a result, often have the greatest effect. Used wisely, they are excellent for highlighting architecture and furnishings within a space.
• Try the 60-30-10 concept.  Use 60% of the main color, 30% of a secondary color, and 10% of an accent color when decorating your room.
• Add accent colors in layers by using accessories like a sofa throw, tablecloth, china, pillows, or a lampshade.
• A light flooring color will draw the floor up to the eye, while a darker floor tone will drop it away from your eye. If you have low ceilings or want to increase the visual height of your room, add a deeper floor color.

Above All, Make Your Own Statement

Remember that your home is an expression of who you are and your personality should shine through.  Don’t just copy pictures from magazines or the latest look from a TV home show.  If you design rooms with your lifestyle in mind, that you will be comfortable living in, you can’t go wrong!

Planning the Perfect Living Space

Planning the Perfect Living Space - For You!

The cold and rainy weather is here and we are going to be spending more and more time indoors. After being outside so much during the warmer months sometimes at this time of the year I can feel trapped inside. If your home is feeling like it’s closing in on you, it might just need a little kick to give it some life. Check out the tips below on space planning and use the complimentary tool from Outrageous Interiors to create your ideal floorplan. Arranging your existing furniture, art and accessories in a new way can make a tired old room feel brand new!

Ready for Change

First, really think about how the area is used and the activities that take place in the room. You may have a formal living room with gorgeous exotic hardwoods, but if your children spend a lot of time in it on the floor playing games, you may want to move a rug from another part of the house to give them a soft place to sit (and to prevent wear and tear on your floors!) At this point you will also want to take a look at the current room and take notes about what is working and what you would like to improve. Do you continually find yourself moving chairs from one room to another to accommodate guests? Maybe you need more seating in one area and less in another, or the areas need to be repurposed to better fit your needs.

For Good Measure

You’ll want to work from a floor plan that is scaled to the correct dimensions of your room, so take measurements of the walls and all the structural features such as doors, windows, entranceways, closets, etc… Click the floorplan icon for a space planning tool compliments of Outrageous Interiors that lets you easily enter the measurements of the room, add and arrange furniture and accessories and save and print your plans.

Taking Inventory

Once you have your scaled floor plan set up and an idea in your mind of how the room needs to function, look around your entire house for items that you may want to use in the room and take their measurements.

Check out your storage areas for items like Aunt Beth’s dresser that you really love but never used because it didn’t match your bedroom furnishings. It might be the perfect place to store CD’s, DVD’s and games in your den. And remember, you aren’t really moving the heavy furniture at this point so don’t be stingy, it is better to have more than you need to choose from than not enough.

You’re Virtually Done

Look at the “blank slate” of the scaled floor plan as it is now in the space planning program and visualize the traffic pattern of the room. You will want to enter and move about the room with ease. Consider often overlooked things like windows you like to open, as well as the room’s entrances and closets. Using the software, create icons for your potential furnishings from the list you made earlier. Make sure that you resize the items to match their measurements. Move the icons around to find which placements work best for you, making sure that traffic can flow around all the items in the room. With this software, you can save multiple versions of the same room so that you can compare printouts side by side.

While your personal style and taste will ultimately determine the arrangement of your rooms, there are many guidelines the experts say you may want to consider.  Click Here for some tips from the “design” side of space planning.

A Surprising Safe Haven For Savings

An emerging story beneath the headlines

By Dave Jenks, Vice President of Research and Development and Jay Papasan, Vice President of Publishing and Executive Editor, Keller Williams Realty

Amidst fears of a financial market freefall, the real estate market is emerging as a bright spot. Indicators are pointing to an end to the bust; in fact, real estate may be poised for a bounce.

While consumers are scrambling to diversify their saving and investment accounts and retreating from paper assets (e.g. stocks) into hard assets (e.g. gold), the savviest among them are looking deeper than morning’s headlines and realizing that real estate is a solid investment option in the current market.

Home prices have corrected and fallen back into alignment with historic trends. The inventory of homes for sale is finally shrinking from the June 2008 peak. Also, based on year-over-year comparisons, housing affordability is now higher than it’s been for the past five years. All signs point to the real estate market turning the corner. So for investors seeking a safe haven in this financial storm, housing emerges as a surprisingly good choice—an undervalued hard asset with upside potential.

As the following chart illustrates, the unsustainably high run-up in home prices between 2001 and 2005 is coming back in to alignment with the historic 4 percent trajectory in home price appreciation. Indeed the market has corrected. While it is quite possible that the market will continue for a time to “over correct,” the important point to realize is that no one can ever predict or time the floor—until after the fact when opportunity has been lost.

Now is the time to buy and the reasons are many:

•Real estate remains one of the most stable long-term investments with relatively modest fluctuations in annual gains.

•The extensive housing inventory in most markets is providing great choices for investors.

•Mortgage money is available to financially stable buyers and interest rates remain attractively low.

•Real estate investments tend to bring a greater annual return on investment (ROI) than stocks, gold or commodities, because they are leveraged (buyers put 20 percent down, and receive appreciation on the entire value of the property).

•Just as the late 1980’s and early 1990’s provided a massive opportunity for real estate investors to make great buys and build wealth, the current market will do the same. Smart money is already back in the market buying up the distressed properties.

•There is a simple formula for investing in real estate – Criteria, Terms and Network. That formula and the step-by-step process for using it are clearly described in the best-selling book, The Millionaire Real Estate Investor.

What In the World Is Going On In the World?

The economic situation is getting worse day by day… or is it? In this jumbled mess, where do we turn for good, honest information? The reality is the media dramatizes the information they disperse to make for a good story. Drama and trauma sells.I am a home owner, a working woman, an investor, a consumer, and a future retiree who, just like you, needs good information in order to make sound decisions about my finances. Luckily, as a realtor, I have access to factual information and knowledgeable contacts who let me know what is really going on – no over exaggerating, no sugar coating, just the good honest truth.

As your real estate expert, I pass this information along to my clients.  Every week for the next month or so, my weekly e-mail forum, Brenda’s HouseBlend will be dedicated to a question that I have gotten from one of my clients. The topic of the week may be mortgages, credit scores, banking, even ways to save money on home maintenance – just something someone was concerned about, and I wanted to pass the information along to others.  If you’d like to receive messages like the one below, post a comment to let us know!

Are Lenders “Out” of Loans?
I have gotten several calls and e-mails recently from many of you who are worried about what is going on with the lending industry. If you listen to the news you will hear phrases like, “…when loans are available again.” or “Now that you can’t get a loan…” This is just plain untrue. I have been writing contracts through this financial crisis and getting loans for my clients without a problem.

The truth about loans:

• Loans are available, but lenders are being more discriminating
• Interest rates are very good and hovering around 6% or lower in some cases
• Loans are being driven by good credit scores

Who has challenges getting a loan?

• Poor credit, low credit scores
• No money to put down
• More than four homes (investment funding is being limited to four homes)
• Self-employed individuals that have a hard time proving income

Down Payment Requirements:

• Less than $417,000 – 5% down (the days of the 100% loans are gone)
• $417,000 - $650,000 – 10% down
• $650,000 and above – 20% down
• Investors (more than one home) – 20% down

In fact, if you have been a renter, now is a great time to buy. We are undoubtedly in a full-fledged buyers market so houses are priced to move. Interest rates are low. It all depends on your particular situation and needs. We work with some great lenders who can answer any questions you may have about the current market as well as the options for your circumstances. 

Federal Tax Credit for First-Time Home Buyers

Did you know that part of the Housing and Economic Recovery Act of 2008 includes some special help for first-time home buyers?

We’ve listed some of the highlights of the program below, as well as some detailed Q&As!

The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009 

The maximum credit amount is $7,500

Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit

Partial credits are available for some taxpayers whose incomes exceed the above limits, depending on income

The tax credit works like an interest-free loan

A “first-time home buyer” is a buyer who has not owned a principal residence during the three-year period prior to the purchase

You claim the tax credit on your federal income tax return

Any home purchased as a principal residence by an eligible first-time home buyer will qualify

 
1. Who is eligible to claim the $7,500 tax credit?

First time home buyers purchasing any kind of home—new or resale—are eligible for the tax credit. To qualify for the tax credit, a home purchase must occur on or after April 9, 2008 and before July 1, 2009. For the purposes of the tax credit, the purchase date is the date when closing occurs.

2. What is the definition of a first-time home buyer?

The law defines “first-time home buyer” as a buyer who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. For example, if you have not owned a home in the past three years but your spouse has owned a principal residence, neither you nor your spouse qualifies for the first-time home buyer tax credit. Ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer.

3. How do I claim the tax credit? Do I need to complete a form or application?

Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return. No other applications or forms are required. No pre-approval is necessary; however, prospective home buyers will want to be sure they qualify for the credit under the income limits and first-time home buyer tests.

4. What types of homes will qualify for the tax credit?

Any home purchased by an eligible first-time home buyer will qualify for the credit, provided that the home will be used as a principal residence and the buyer has not owned a home in the previous three years. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats.

5. Instead of buying a new home from a home builder, I have hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?

Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be on or after April 9, 2008 and before July 1, 2009.

In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date.

6. What is “modified adjusted gross income”?

Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine “adjusted gross income” or AGI. AGI is total income for a year minus certain deductions (known as “adjustments” or “above-the-line deductions”), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.

To determine modified adjusted gross income (MAGI), add to AGI certain amounts such as foreign income, foreign-housing deductions, student-loan deductions, IRA-contribution deductions and deductions for higher-education costs.

7. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit

Possibly. It depends on your income. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phaseout limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000.

8. Can you give me an example of how the partial tax credit is determined?

Just as an example, assume that a married couple has a modified adjusted gross income of $160,000. The applicable phaseout to qualify for the tax credit is $150,000, and the couple is $10,000 over this amount. Dividing $10,000 by $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $7,500 by 0.5. The result is $3,750.

Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $88,000. The buyer’s income exceeds $75,000 by $13,000. Dividing $13,000 by $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $7,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,625.

Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.

9. Does the credit amount differ based on tax filing status?

No. The credit is in general equal to $7,500 for a qualified home purchase, whether the home buyer files taxes as a single or married taxpayer. However, if a household files their taxes as “married filing separately” (in effect, filing two returns), then the credit of $7,500 is claimed as a $3,750 credit on each of the two returns.

10. Are there any circumstances for which buyers whose incomes are at or below the $75,000 limit for singles or the $150,000 limit for married taxpayers might not be able to claim the full $7,500 tax credit?

In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.

11. I heard that the tax credit is refundable. What does that mean?

The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.

For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).

12. What is the difference between a tax credit and a tax deduction?

A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS.

A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer’s tax liability would be reduced by $1,125 (15 percent of $7,500), or lowered from $7,500 to $6,375.

13. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?

No. The tax credit cannot be combined with the MRB home buyer program.

14. I live in the District of Columbia. Can I claim both the DC first-time home buyer credit and this new credit?

No. You can claim only one.

15. I am not a U.S. citizen. Can I claim the tax credit?

Maybe. Anyone who is not a nonresident alien (as defined by the IRS), who has not owned a principal residence in the previous three years and who meets the income limits test may claim the tax credit for a qualified home purchase. The IRS provides a definition of “nonresident alien” in IRS Publication 519.

16. Does the credit have to be paid back to the government? If so, what are the payback provisions?

Yes, the tax credit must be repaid. Home buyers will be required to repay the credit to the government, without interest, over 15 years or when they sell the house, if there is sufficient capital gain from the sale. For example, a home buyer claiming a $7,500 credit would repay the credit at $500 per year. The home owner does not have to begin making repayments on the credit until two years after the credit is claimed. So if the tax credit is claimed on the 2008 tax return, a $500 payment is not due until the 2010 tax return is filed. If the home owner sold the home, then the remaining credit amount would be due from the profit on the home sale. If there was insufficient profit, then the remaining credit payback would be forgiven.

17. Why must the money be repaid?

Congress’s intent was to provide as large a financial resource as possible for home buyers in the year that they purchase a home. In addition to helping first-time home buyers, this will maximize the stimulus for the housing market and the economy, will help stabilize home prices, and will increase home sales. The repayment requirement reduces the effect on the Federal Treasury and assumes that home buyers will benefit from stabilized and, eventually, increasing future housing prices.

18. Because the money must be repaid, isn’t the first-time home buyer program really a zero-interest loan rather than a traditional tax credit?

Yes. Because the tax credit must be repaid, it operates like a zero-interest loan. Assuming an interest rate of 7%, that means the home owner saves up to $4,200 in interest payments over the 15-year repayment period. Compared to $7,500 financed through a 30-year mortgage with a 7% interest rate, the home buyer tax credit saves home buyers over $8,100 in interest payments. The program is called a tax credit because it operates through the tax code and is administered by the IRS. Also like a tax credit, it provides a reduction in tax liability in the year it is claimed.

19. If I’m qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?

Yes. The law allows taxpayers to choose (”elect”) to treat qualified home purchases in 2009 as if the purchase occurred on December 31, 2008. This means that the 2008 income limit (MAGI) applies and the election accelerates when the credit can be claimed (tax filing for 2008 returns instead of for 2009 returns). A benefit of this election is that a home buyer in 2009 will know their 2008 MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.

20. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?

Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in 2009 and a larger credit would be available using the 2008 MAGI amounts, then you can choose the year that yields the largest credit amount.

21. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2008 tax return?

Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the future home buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment. Buyers should adjust their withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.

Let’s Talk Toilets!

Toilets account for almost 30% of residential indoor water use in the United States.

Toilets are also a major source of wasted water due to leaks and inefficiency. In a home that was built prior to 1993 it is most likely that the toilet uses 3.5 gallons or more for every single flush (in Dekalb County alone, approx. 165,000 homes were built prior to 1993 – there are approx. 1 Mio. Homes in the Greater Atlanta area that still have old, inefficient toilets in use). Experts say that the minimum needed to meet the basic human needs of drinking, cooking and hygiene is five gallons of clean water per person per day. It’s far from enough to ensure health and well-being-just enough to get by. Do we really need to flush down that much each time we go “Number One”?

In the beginning of modern toilets there was the seven-gallon flushing porcelain lavatory. Then there was the low-flush toilet. And by the time you’d flushed several times the bowl was “clear” and you had flushed more water than you did with the faithful lavatory.

Then there was the new and improved low-flush toilet, which was better but still not what always got the job done. And finally, the High-Efficiency toilet arrived; you now have your choice of flushing as little as .8 gallons with dual flush toilets. The best part is that they really work!

What Are High-Efficiency Toilets?

Under federal law, toilets must not exceed 1.6 gallons per flush (gpf). High-efficiency toilets (HETs) go beyond the standard and use less than 1.3 gpf. The WaterSense label will be used on HETs that are certified by independent laboratory testing to meet rigorous criteria for both performance and efficiency. Only HETs that complete the third-party certification process can earn the WaterSense label.

Do High Efficiency Toilets Work?

Everyone is concerned about the performance of low-flow toilets. Do they clear the bowl and leave it clean? Do they stop up frequently? Unlike the first 1.6 gallon / flush toilets, WaterSense HETs combine high efficiency with high performance. Advances in toilet design permit WaterSense HETs to save water without loss of flushing power. In fact, many perform better than standard toilets in consumer testing.

How Much Water and Money Do HETs Save?

High efficiency toilets save you money by reducing your water and wastewater costs. Over the course of a lifetime, an average person flushes the toilet nearly 140,000 times. If you install a WaterSense HET, you can save 4,000 gallons per year and your children can each save about a third of a million gallons during their lifetime. If a family of four replaces one 3.5 gpf toilet made between 1980 and 1994 with a WaterSense toilet, they can save $2,000 over the lifetime of the toilet. If the toilet being replaced was made before 1980, it uses 5 gallons per flush so the savings will be much greater. If you’d like to calculate how much water you can save try the water savings calculator on www.ecotransitions.com.

With these savings, new high-efficiency toilets can pay for themselves in only a few years. Even better, many local utilities offer substantial rebates for replacing old toilets with HETs. Detailed information on the rebates available in Georgia can be found here Rebates in Georgia.

What are Dual Flush toilets?

Dual flush toilets offer a patented dual flush technology consisting of a 0.8 Gal flush for liquid waste and a 1.6 Gal flush for solids. They can save up to 40% (approx. 4600 gallons) compared to today’s standard 1.6-gallon single flush toilets. On an average of 4/1 uses a day, Dual Flush toilets have the lowest water consumption of all – 0.96 Gallons per flush. Caroma, an Australian manufacturer that invented the Dual Flush technology manufactures award winning toilets that are both user friendly and, with a full 4″ trap way, virtually blockage-free! Wouldn’t that be nice to be able to finally kiss the plunger good bye? Beware of some products reducing the amount of water flushed to use with your existing toilet. Existing bowls are not designed to perform with reduced amounts of water, so the likelihood of clogging your toilet while you are trying to flush paper and solid waste increases drastically.

Select a WaterSense Labeled High-Efficiency Toilet!

Whether you are remodeling a bathroom, beginning construction of a new house, or just want to replace an old, leaky toilet, a WaterSense labeled HET is your best bet. Look for the WaterSense label on any toilet you buy. If every home in the United States replaced just one old toilet with a new HET, we would save almost one trillion (spelled with a T) gallons of water per year, equal to more than two weeks of the water flowing over Niagara Falls!

Note that some manufacturers offer high-efficiency and ordinary models with very similar names, so be sure and look for the WaterSense label. A list of WaterSense labeled High-Efficiency Toilets can be found here List of WaterSense labeled HET’s published by the EPA.

Where can I find a HET?To find WaterSense partners and resources in your area, please follow the link and click on your state below or choose from the list that follows. EPA - Where you live

For a watersavings calculator and more information on Dual Flush toilets please visit www.ecotransitions.com.

Home Warranties are Great for First Time Home Buyers

In December of 2007 I purchased my first house, which was also a foreclosure.  Per the advice of my Realtor, Brenda Richterkessing, I purchased a home warranty which was paid for by the seller at closing.  Since the property was a foreclosure and had some older home systems (outdoor AC unit, furnace, refridgerator, and a few others) the home warranty made a lot of sense to purchase.  In addition, I had limited funds after making this major purchase.  If I were to have an unpredicted major expense to repair or replace something I would be up a creek!  The Old Republic Home Warranty that I have on my home systems, appliances, and swimming pool have saved me from numerous financial crisises.

Home warranties help you budget for the repair and replacement of major home systems and appliances.  Most home warranties will cover Plumbng, Electrical, HVAC systems and kitchen appliances.  In addition, many hom warranty companies provide optional coverage choices that can be purchased to “custom fit” the Plan to the unique needs of your home.  This means that you could also include your swimming pool or roof in the plan as well!

There are many home warranty companies to choose from…I recommend using either Old Republic Home Warranty or American Homeshield Home Warranty.  Most home warranty company’s offer a basic/standard plan that typically ranges from $350 to $500 per year with a fee per service call between $55-$75. 

Here’s how a home warranty works:

• You pay an annual rate to cover your home’s systems and appliances (renewable each year)
• You can opt to have additional coverage to “custom fit” the plan to your home
• The plan you choose will determine the deductible that you will pay each time a service technician comes to your property
• When a home system or appliance needs to be repaired or replaced you contact the home warranty company and inform them of the problem
• The home warranty company will provide you with the contact information of a preferred vendor that will contact you to setup an appointment
• The service technician will usually be out to your house within 24-48hrs.
• If needed repair or replacement is covered by your plan, then you pay your deductible ammount and the home warranty covers the remaining balance
• If needed repair or replacement is not covered by your plan, you pay the deductible ammount and have the option of paying the technician out of pocket o resolve the problem

In an eight month period I have used my home warranty plan a total of five times and only one issue was not covered under my plan.  As a result of my plan the following reapirs have been covered:  kitchen faucet replaced, garage door opener sensors replaced, outdoor condensing unit (AC) replaced, and a new AC fan motor installed.  (To date I have saved thousands all as a result of having a home warranty)

I strongly urge anyone to purchase a home warranty and renew it every year…at the very least, look into what the cost would be for a plan that fits your needs.  A home warranty plan is great for the first time home buyer, older homes, investment homes, or rental homes.  I have avoided situations of extreme stress as a result of having a home warranty plan…you could to!

Have you saved money by having a home warranty?  Tell us about it.

Olde Taylor Farms Estate Community in Johns Creek Files Bankruptcy

The housing crisis has moved up the economic ladder with Olde Taylor Farms a luxury subdivision in Johns Creek going bust.  Harrison Design Associates, the developers of Olde Taylor Farms in Johns Creek, with homes priced from $1.6 million to more than $3 million, filed for Chapter 11 bankruptcy protection July 1.

Olde Taylor Homes is situated amongst some of the most prestigious schools and organizations in Atlanta, such as the Atlanta Athletic Club, St. Ives Golf and Country Club, Woodward Academy, and Wesleyan School.

An exclusive enclave of 33 residences, Olde Taylor Farms is a serene community with pedestrian and bike paths that cross over the Chattahoochee River.  The neighborhood backs up to open green space that can not be developed.  Community sidewalks and wooded homesites will encourage neighbors to spend time walking and enjoying their outdoor living areas.  Ancient oaks and hardwoods line the streets and give the neighborhood an established feel.

From GA-400 take Exit 10 - Old Milton Parkway.  Follow signs to GA-120 East.  Take a left onto Medlock Bridge Road/GA-141.  Turn right onto Bell Road and continue left on Bell Road.  The subdivision will be on the right.

Olde Taylor Farms Homes for Sale

 

State of Georgia Ranked #24 for House Appreciation in 2007

According to a report published by the Office of Federal Housing Enterprise Oversight, Georgia ranked number 24 for percent change in house prices from the year before.  The state increased at 2.55% in 2007 than in 2006.  The top three states (in order) were; Utah (9.27), Wyoming (8.27), and North Dakota (7.87).  The bottom three were; Florida (-4.69), Nevada (-5.86), and California (-6.65).

Ranked metropolitan statistical areas and divisions which is calculated using estimates of all transactions house price index which includes purchase and refinance mortgages found that the communities of Atlanta-Sandy Springs-Marietta ranked 151 nationally.

Below is a chart depicting the fourth quarter price change by state for the entire United States.

The graph above shows (click to enlarge) that the state of Georgia had an increase of 2.6% in the forth quarter.  Though these are tough times felt across our nation the market in Georgia isn’t as bad as one may think.  Georgia can contribute its continued appreciation to the many new jobs and population growth that the state has experienced.

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The Beginning of the End of Super-Low Mortgage Rates?

There are several factors that indicate that home buying will be increasing which in turn will help fuel a recovery of the housing market.

The National Apartment Association recently conducted an online poll in which results showed 17 percent of renters plan to purchase their first home within the next year; 41 percent of the 2,041 respondents planned to be home owners within two years.  Only 31 percent planned to still be paying rent five years from now.

The past six months have seen a drastic drop in mortgage rates, however fixed-rate mortgage rates rose to 6.32 percent, the highest it has been since October.  Following the months of aggressively dropping interest rates, many feel that the Fed will be forced to raise rates back up.  If interest rates rise, so to will mortgage rates.

According to a press release by Freddie Mac, Frank Nothaft, Freddie Mac vice presient and chief economist said that, “Mortgage rates jumped this week after a number of Federal Reserve officials, most notably Chairman Bernanke and Vice Chair Kohn, expressed concern over a threat of inflation.” We may very well be seeing the beginning of the end of the super-low mortgage and potential buyers may realize that with rising rates, now may be the time to jump in. Nothaft added, “Moreover, pending home sales for April unexpectedly rose by 6.3% and mortgage applications for home purchases … were also up last week.”

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