The Columbia SC home selling market continues to improve and, as prices steadily rise more homeowners are considering selling their homes. Informed sellers are aware there are a number of considerations prior to putting their homes on the market. Let's examine a few factors to consider if you're planning to sell.
Columbia SC Home Selling: Timely Tips
Naturally, the first question you need to answer is where you will live or move to next. If you're contemplating purchasing another home, consider entering into a contract contingent on the sale of your existing home. If you're among the fortunate few Americans that don't have to rely on the proceeds from the sale of your home to be able to purchase a new home, timing will not be a major factor. However, you'll still want to be aware of the timetable of closing the sale of your existing home, moving into a temporary residence while you decide to buy or build, or – if you're moving out of the area – searching for a home to purchase in your new location.
In addition, it's important to know the tax implications of selling your primary residence. You may have to pay capital gains taxes if your profit exceeds $250,000 for individual sellers or $500,000 for married couples. To be sure, we recommend checking out IRS Publication 523, "Selling Your Home" for any questions about rules and for a worksheet. Lastly, if you're planning to downsize after the sale of your home, performing a little research may save time, money and future frustration. Often retirees who want to downsize experience "sticker shock" when they price smaller, more recently built homes or condos with many of today's desirable and expected amenities. Having to pay more than expected for a smaller home may put a sizable dent in your budget – and your downsizing plans.
Once you've decided to enter the Columbia SC home selling arena, probably the most vital piece of the puzzle is putting the correct sales price on your home. Real estate agents say the first three weeks a home is on the market are the most important in creating a "buzz," generating buyer interest and attracting potential buyers. A good agent would agree potential buyers often ignore a listing that's been on the market awhile. The perception – and the reality – is the "bloom is off the rose" and it's obvious there's a reason the home hasn't sold. The longer the house stays on the Columbia SC home selling market the higher the probability the sales price will suffer. Simply put, if your home hasn't had a serious inquiry for, say, four weeks, it may be time to reduce the asking price.
When it comes to setting the proper sales price and knowing if and when to reduce it, we strongly suggest enlisting the help of an experienced real estate professional. The selection process of choosing a qualified agent is similar to hiring an employee to work for your business. Make sure the agent has your best interest at the forefront of their desire to sell your home for the best possible price. A good agent should know your neighborhood and be familiar with what similar properties have recently sold for. Don't hesitate to ask for a written marketing plan describing what avenues your prospective agent plans to utilize to sell your home. Give your would-be agent higher marks for their digital and online expertise. Potential buyers shopping in the Columbia SC home selling market use the Internet to see listings, take virtual tours and make comparisons as they shop for the home they want.
After you choose the real estate agent you feel can best serve your needs, it's time to prepare your home for sale. A good agent will identify any items that may need improvement to help your home "show" better. Remember, you only get one chance to make a good first impression, so if there are items that may hamper buyer interest in your home, replace them, repair them, or get rid of them. To prepare for a successful open house, consider sprucing up with a fresh coat of paint – on the exterior if needed – and in the interior to give favorite rooms new life. In addition, clean or replace old carpets, mow the lawn and trim the shrubbery. Don't ignore the seemingly small things. Make sure all the lightbulbs are working, replace any that have dimmed or yellowed. Remove the clutter from laundry rooms, bookcases, the garage or a home office. Make your home as presentable as possible by making a great and memorable first impression.
If you're not up to the task of readying your home with its best foot forward, consider hiring a professional staging company. Home staging experts say giving each room of your home a purpose is an excellent way to create interest and intrigue among buying prospects. If you have a spare bedroom, stage it to be a bedroom – regardless of whether you currently use it for a sewing room, home office or all-purpose room. Staging is a proven technique that helps buyers imagine your home's potential, and envision it the way they want it to fit their lifestyle. Remember, stage your home as if it was an investment opportunity designed to appeal to the general public. Detach yourself from the emotional connection you've no doubt created over the years.
Some Columbia SC home selling participants, especially those selling older homes, often elect to arrange for a home inspection for their own benefit. That enables them to identify any potential shortcomings or problems early in the selling process. The sooner you become aware of an issue that may affect the sale of your home, the sooner you can correct it.
Lastly, as your home begins to pick up buyer traffic and interest, make it as easy and convenient for them and their real estate agents to see your house – more than once if needed. Sellers who are difficult to get in touch with or who put too many restrictions on showing times and appointments run the risk of losing potential buyers to other properties.
With advance planning and careful, thoughtful preparation these Columbia SC home selling tips will assist you in selling your home quickly, efficiently and at the highest price available in the market.
Columbia SC home improvement is popular these days, especially among first-time home buyers. Starter homes or “fixer-uppers” often give first-time buyers the opportunity to purchase a home with a remodeling plan in mind. However, the phrase “buyer beware” is never more cautionary than when you’re buying a home whose “potential” turns into a “money pit.” Here are a few tips to avoid falling into the dreaded, deep, dark money pit.
Spotting a Metro Columbia SC Home Improvement Money Pit
Of course, savvy home buyers will have a professional home inspector perform an inspection of the house they want to buy. And if it’s an older home or if you suspect potential problems there are some things you should know on your own –– before hiring a home inspector.
Basement – If the home has a basement, check exposed pipes and wiring for damages or excessive wear. Inspect the foundation for cracks or potential problem areas.
Roof – Inspect the roof to see if there is aging, rotting wood and leaks.
Layout – Will the existing layout of the rooms in the home work for your needs, or will you need to move walls, plumbing and electrical? Doing so can add up to be an expensive Columbia SC home improvement item.
Recent repairs – Look closely in all areas of the home to see if there have been noticeable changes in the paint, flooring, ceiling, etc. If something looks brand new — especially compared to an adjacent area — it could mean there’s been a recent repair, or there’s been an effort to cover up an issue.
Trust your sense of smell – A septic tank or sewer leak, a gas leak or even mold and mildew may be detectable by an unusual odor. Trust your nose to prompt you to inspect further to see if there’s a problem.
Before you commit to purchasing a fixer upper, remember these two final points.
1) As mentioned earlier, hire a home inspector, and
2) Make sure you’re ready for what may be ahead. Columbia SC home improvement projects almost always take longer and cost more than you expect, so make sure you’re really committed — emotionally and financially — to deal with the project at hand.
See more articles pertaining to Columbia SC home improvement news in the Columbia SC Home Improvements section of our site below Columbia SC Real Estate Categories in the column to your right. You can find information here on a variety of topics ranging from home buying and home selling tips to home improvements, home inspections, mortgage financing, homeowner's insurance and, of course, all the latest Columbia SC real estate news that affects all of these categories.
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As the Columbia SC tax deadline looms closer and closer, homeowners should be careful not to make any of these costly home-related mistakes. Tax professionals say these mistakes are common among homeowners who either don't know the current tax laws or are careless in their paperwork.
Columbia SC Tax Tips: Avoid Costly Errors
Mistake #1: Deducting property taxes for the wrong year Although it can sometimes be confusing, you should deduct the amount of property taxes for the year for which you actually paid them. In other words, if you're billed for your 2015 property taxes in late 2015 but actually pay them in 2016, you may only deduct the amount you paid during the tax year in which you're filing. On your federal tax forms, you should enter the amount you actually paid in that tax year. If your taxes are being escrowed each month and paid by a third party such as your mortgage lender or loan servicer, enter the amount they show they paid during that taxable year.
Mistake #2: Confusing actual taxes paid with the amount escrowed If your lender escrows your property tax payments each month, don't simply just deduct the amount being escrowed. The normal amount you pay every month as part of your principal, interest, taxes and insurance (PITI) is actually slightly more or less than the actual property tax amount. Your mortgage lender or loan servicer usually adjusts the escrow amount each year to make sure the amounts match as closely as possible. As an example, let's say your property tax bill is $1,200. Your lender may have collected $1,100 or $1,300 in escrow during the year. You should deduct only $1,200 or whatever the lender-provided Form 1098 shows. That is the actual amount of property taxes that was owed and paid on your behalf. You are entitled only to deduct that amount. Should you not receive the Form 1098, contact your lender or loan servicer as soon as possible to find out how much they paid on your behalf – and get a replacement copy for your records.
Mistake #3: Deducting points you paid to refinance your mortgage You are allowed to deduct points (or a certain percentage of your loan amount) paid to your lending institution to get your mortgage. You can deduct that amount in full for the year in which you purchased your home. But, if you refinance your loan, you are only allowed to deduct points over the life of the new loan. In other words, let's say you paid $2,000 in points as part of your refinance on a 15-year mortgage. Your allowable Columbia SC tax deduction is $133 each year for 15 years ($2,000 divided by 15 years.)
Mistake #4: The home office tax deduction There's probably no deduction that's more misunderstood than the home office tax deduction. Although it's not all that complicated, and usually doesn't total very much, it must be recaptured if you enjoy a profit when you sell your home. It's also one of the areas on your Columbia SC tax returns that often invites scrutiny from the IRS. However, the good news is that there's a simplified home office deduction option available if you opt not to claim actual costs. If you meet the eligibility requirements, you can deduct $5 per square foot up to 300 square feet of office space in your home for a total of $1,500 a year.
Mistake #5: Failure to repay a first-time homebuyer tax credit If you were one of millions of Americans that took advantage of the original one-time homebuyer tax credit in 2008, you are required to repay 1/15th of that credit over 15 years. If the tax credit was used in 2009 or 2010 and you then sold your home or stopped using it as your primary residence. you must also pay back the credit. Need help with it? The IRS has an informative tool that can help you figure out how much you owe. Visit their website at www.irs.gov.
Mistake #6: Failure to keep up with home-related expenses Hopefully, if you're deducting home-related expenses, you have sufficient records you can access easily if you need to. Maintain a file or computer desktop scan to store home office and home improvement expenses and receipts in case you are audited or asked questions by your CPA or the IRS.
Mistake #7: Not keeping track of capital gains for your Columbia SC tax returns If you sold your primary residence in 2015, remember you'll have to pay capital gains taxes on any profit you enjoyed. Typically, you are able to exclude $250,000 of the profits from taxes (or up to $500,000 if you are married and filing jointly.) If, for example, the cost basis of your home is $100,000 – the amount you paid for it plus any additional improvements – and you sold it for $400,000 the capital gains are $300,000. if you're a single taxpayer, you would owe taxes on $50,000 of gains. Remember, however, there are minimum time limits for holding on to property in order to take advantage of the exclusions. See IRS Publication 523 if you have questions or need additional information. One additional tip: if you're in a higher tax bracket you'll probably have to pay an additional tax.
Mistake #8: Filing incorrect energy tax credits Home improvements made in either 2015 or 2016 may be eligible for a 10% tax credit. If you installed an energy-efficient heating and cooling system, for example, you may qualify for the 10% tax credit. You may also be eligible for the Residential Energy Efficient Property Credit if you installed a solar electric, solar water heater, geothermal, or small wind energy system. Claim the deduction by completing Form 5695, which can be confusing. Read the instructions carefully and ask your CPA if you have questions.
Mistake #9: Claiming more than you should for mortgage interest U.S. taxpayers are allowed to take a deduction of up to $1 million in mortgage interest for a home purchase. In addition, they can deduct up to $100,000 in home equity debt. You can only deduct the interest on your mortgage that you actually paid during the Columbia SC tax year. That includes amounts that you may have prepaid in an effort to reduce your loan balance faster by paying an additional month's payment.
Get more tax tips by visiting our other articles in the "Taxes" section of our site under Categories to your right. And don't forget to Find us on Facebook and Follow us on Twitter. We do post occasional tax tips there as well.
Columbia SC insurance is a virtual necessity for homeowners. Naturally, if you have a mortgage your lender will require you to have homeowner's insurance coverage to protect their interest in the event of a fire or other peril. For homeowners without a mortgage, insurance coverage is still one of the best investment asset protections available. It will give you peace of mind knowing you're covered in the event your home is partially or totally damaged as a result of a catastrophe.
Because protecting your home is so important, it's a good idea to know as much as you can about homeowner's insurance when you get ready to buy it, add to it, or shop around for the best coverage or lowest rate. Let's take a look at some helpful tips when shopping for Columbia SC insurance.
Columbia SC Insurance: Ins and Outs
Just the facts, ma'am. Once you find a home you want to buy, assemble as much information about the house as possible. The more facts you know about the property, the better idea you'll have of determining the cost of the insurance coverage. Insurance costs – or premiums – are affected rather dramatically by the age of the home and its components, specifically the plumbing, electrical, water, sewer, and heating and air-conditioning systems. In addition, the materials used in the construction of the home will have an impact on the insurance premiums. Brick homes, because they withstand fires better, are usually less expensive to insure than wood siding homes. Premiums for homes with less flammable roofing materials will be lower than homes with cedar-shake shingles. For more information on building codes and materials recommendations visit www.disastersafety.org/.
Know your geography. While materials used in the construction of a home is important, where the home is located in the U.S. can influence insurance availability, coverage, and cost. If your home is in areas known for severe weather events or natural disasters such as hurricanes, tornadoes, earthquakes, wildfires, or mudslides you can expect higher costs for insurance coverage. Florida, Louisiana and Texas, for example, are three states which typically pay higher homeowner's insurance premiums due, in part, to the frequent claims for wind and water damage –– especially along their coastal areas.
The neighborhood in which your home is located may also affect your insurance premiums. A home in relatively close proximity to a fire station will probably cost less to insure than a home in a rural area, secluded from nearby towns and suburbs.
Know when to "say when." According to recent studies by construction cost estimating experts, over 60% of American homeowners are underinsured. They don't have enough coverage to replace their homes in the event of a total loss. Insuring a home for its "replacement value" means your coverage would pay for the cost to completely rebuild the home from the foundation up. Keep in mind, there's a vast difference between "replacement value" and "market value." One is the cost to rebuild your home in its entirety, the other is what a willing buyer would pay to purchase the home.
The cost of building materials has risen steadily in the past few years. As a result, it will likely cost more to rebuild an older home than its market value. For homeowners that have remodeled their homes, it's imperative to update your insurance coverage to take into consideration the home's replacement cost increase. Be careful to insure your home for its entire replacement value, but don't over-insure it. Paying for unnecessary coverage is wasting money. Know when to "say when."
Consider floating. Standard homeowner's policies cover the structure of your home and most of the contents, including some of your personal belongings. Unusually expensive or valuable possessions like jewelry, collectible art, or coin collections may not be completely covered against loss. If you own specific items whose value is higher than the limits of your policy coverage, you can add a "personal articles floater." While rates vary from state to state – and on the item(s) insured – a personal articles floater may be purchased for under $50 a year.
Full protection, including protecting your assets. A typical Columbia SC insurance policy covers the repair or replacement of your home in the event of a loss. However, that's only one part of the homeowner's insurance coverage. Consider protecting your financial future – and your other financial assets – by carrying personal liability coverage. If a guest in your home suffers a fall on your front steps and is severely injured, his or her insurance company could hold you liable since the accident took place on your property. If you have homeowner's liability coverage your policy would usually cover the incident up to specified limits.
While standard homeowner's policies typically offer $100,000 in liability coverage, insurance experts suggest carrying a minimum of $300,000 of coverage. The increased limits may be especially important for homeowners with properties having certain potential safety hazards. Examples would be swimming pools, steep stairs or steps, or walkways that may be slippery when wet or icy.
Be comfortable with your coverage. One good thing about homeowner's insurance is you can decide what you're willing to pay out of pocket in the event of a claim. Known as a deductible, it's the amount of money you elect to pay before your insurance company pays the claim. You can opt for a higher deductible and reduce your premiums.
Be safe and save money. You can probably save money on Columbia SC insurance premiums by taking safety precautions that may result in discounts by your insurance company. Items like security alarms, deadbolt locks, motion detectors and security cameras can thwart thieves and save you money. In addition, having handy fire extinguishers and smoke detectors in your home will likely save on insurance premiums.
Preventive maintenance. By practicing preventive maintenance and repairing small issues before they become bigger problems, you can avoid potential losses at a later date. Consider home warranty coverages for maintenance needs for appliances, plumbing or electrical systems.
Pay attention to your paperwork. Keep your home records up to date. Have an inventory of your possession and home contents. Many people take photos or videos of their belongings as evidence of ownership. Be sure to keep this and other information in a safe place – away from your home – so it won't be destroyed if disaster strikes.
Lastly, choose a reputable Columbia SC insurance company. Check the company's track record, including the Better Business Bureau's rating, their customer satisfaction, etc. The department of insurance in your state will likely have a website you can visit to do some research. In addition, industry analyst companies such as J.D. Power & Associates or the A.M. Best Company are good sources of information on insurance providers.
We have a lot more Columbia SC insurance tips and information in the section of articles to your right under Columbia SC Real Estate Categories dealing with "Insurance Info". And we do post tips from time to time on Twitter and Facebook pertaining to Columbia SC insurance. Check us out there as well.
Columbia SC home selling tips are plentiful in today's housing market. No matter how many homes are on the market at any given time, those that make the best first impression are the ones that buyers remember most and are more likely to buy. In the often complex world of real estate, a home's ability to create a good first impression is called "curb appeal." Let's take a look into what comprises curb appeal and how to improve it when you're preparing to sell.
Columbia SC Home Selling Tips
For the vast majority of home buying prospects a home's first impression is how it looks from the street – either walking by or passing by in a car. For decades that was pretty much what a potential home buyer saw and based an initial decision on, until they had the opportunity to take a personal tour of the home. Today, of course, with the advent of smartphones, tablets and digital correspondence such as text messaging and emails, house hunters have much more information available to them than ever. Yet, one thing has remained constant – the first impression is still what the home looks like from the "curb," whether it's in a photograph on a real estate website or a picture taken by a smartphone and texted to one spouse from another.
Chances are, if a home has good curb appeal, the seller invested a good amount of time making sure his home "shows" well from the street. A nice, well-manicured lawn always makes for an attractive first impression and usually entices a prospective buyer to want to see more. An inviting walkway or freshly-painted front door may mean the difference in encouraging prospects to visit an open house or keep on looking.
Simply put, most real estate professionals agree, for years curb appeal was always the most important factor in a home's viewing popularity. Consider these tasks as part of your Columbia SC home selling preparation:
Clean, clean and clean some more.
A well-kept yard is often a sign of a well-kept home on the inside, too. An unkempt lawn or garden may signal the exact opposite, and scare off potential buyers. If your yard needs mowing and raking, do it now. Replace dead or struggling plants, flowers or shrubs. Clear up any unsightly woodpiles or areas where weeds have taken over such as corners near property lines, areas near outbuildings and fences, or other tight spots near trees.
Use a power washer to pressure wash your driveway, walkway, fence or other areas that need attention. Clean your windows – inside and out – you'll be amazed at the difference it makes in your home's appearance. While you're at it, inspect the window trim and consider cleaning, repairing, painting or replacing if necessary.
Use your green thumb.
Potential home buyers appreciate a home with splashes of color in their lawns and gardens. Consider these tips for making and helping plants and flowers grow better:
• Trim the shrubbery
• Weed the garden area and plant seasonal blooming flowers
• Use attractive, clean mulch
• Plant a low-maintenance ground cover to improve large, bare spots
• Use patches of sod to improve parts of the lawn that may have died
The addition of window boxes is a popular choice for providing colorful, attractive curb appeal. Don't forget to use potted plants in highly visible, high-traffic areas such as porches, walkways or entryways. A healthy, eye-catching plant or two can be a big addition to your home's entrance.
Remember, less is more.
It's been said that if you can look at the home you're selling through the eyes of the potential buyers it will help prepare it for a faster sale. Allow your prospects the opportunity to use their imagination by "seeing" their furnishings and accessories in your home's rooms. To effectively do this, it's important to store or remove excess furniture, exercise equipment, magazines, and personal items like framed photos, trophies, etc. The less clutter your prospect has to remove in their mind's eye, the better your chances of them imagining your house being theirs.
Don't forget the cosmetics.
It's always a good idea to consider making minor cosmetic improvements when preparing your house for sale. Because kitchens and bathrooms are popular selling points, give them the attention they deserve. Clean the grout and shine up the fixtures and hardware. Consider a fresh coat of paint, if needed, in some areas.
In today's Columbia SC home selling market, curb appeal is still very important. Yet, its importance is now measured sightly differently. Today's technological world allows almost every potential buyer the opportunity to form their first impression from an online photo – usually from a real estate website. Instead of spending endless hours driving through neighborhoods, today's buyers are able to scroll through dozens of interior and exterior photos of homes they are interested in. If they like what they see, of course, they may include those homes on the short list of ones they'd like to see in person. If they aren't impressed by a home's online photos, it's a pretty safe bet that home won't make the cut.
This new way of home shopping creates a new opportunity – and a new challenge – for home sellers. The home's exterior no longer is the only enticing feature that may sway a prospect from visiting. Now it's just as important to highlight your home's interior. In the digital age, web appeal has become the new curb appeal. The challenge is to photograph your home in its best condition. If the photos aren't of good quality and professionally produced, most buyers will keep on moving – or scrolling – until they find what appeals to them.
So, what should you do if you're planning to sell? Real estate experts offer this Columbia SC home selling tip: spend the time necessary to have your home's interior ready to photograph in order to put its best foot forward. That will increase your "web appeal" which, in turn, will increase the chances that your home will stand out enough to make a prospect's "must see" list. While it may require a greater investment of time from most dedicated sellers, in a competitive market full of real estate websites and online information it could mean the difference in selling faster – or not at all.