Check out the discussion about real estate commissions and weigh in. It’s your money. Realtors will argue that if they cut commission they will have to cut their services. I have listing agreements that vary from client to client because ALL COMMISSIONS ARE NEGOTIABLE.

It’s possible to be a full service real estate broker in northern Idaho or anywhere in Idaho and offer all the services a Seller client wants or needs because everything is negotiable. Now, when you are waiting longer to sell your Sandpoint home, have product on the shelf, and you are servicing debt; now is the time to make a move that is in YOUR best interest. Talk to me about our tech savvy Realtors that can give you a virtual advantage and talk to you about the most important room in a real estate transaction – your “room to move” on price point to achieve a sale without cutting into your yield.

Dan Young, Broker, ABR

Owner, Rainbow Realty

“Yesterdays Values & Tomorrow’s Technologies”

When the bidding battle commences it is hard for traditional buyers to prevail because the Investors are normally cash buyers that can bid the property up with no concern about having to qualify for a conventi0nal loan.

Another great reason to work with a Real Estate professional to ensure you avoid being lured in to paying too much or wasting your time against cash fortified investors.  Contact a Sandpoint, Idaho Real Estate Professional to plan your homebuying strategy.

With 2009 now half over, the Internal Revenue Service reminds taxpayers to take advantage of the numerous tax breaks made available earlier this year in the American Recovery and Reinvestment Act (ARRA).

The recovery law provides tax incentives for first-time homebuyers, people purchasing new cars, those interested in making their homes more energy efficient and parents and students paying for college. But all of these incentives have expiration dates so taxpayers should take advantage of them while they can.

First-Time Homebuyer Credit

The Recovery Act extended and expanded the first-time homebuyer tax credit for 2009.

Taxpayers who didn’t own a principal residence during the past three years and  purchase a home this year before Dec. 1 can receive a credit of up to $8,000 on either an original or amended 2008 tax return, or a 2009 return. But the purchase must close before Dec. 1, 2009, and an eligible taxpayer cannot claim the credit until after the closing date. This credit phases out at higher income levels, and different rules apply to home purchases made in 2008.

New Vehicle Purchase Incentive

ARRA also provides a tax break to taxpayers who make qualified new vehicle purchases after Feb. 16, 2009, and before Jan. 1, 2010.

Qualifying taxpayers can deduct the state and local sales and excise taxes paid on the purchase of new cars, light trucks, motor homes and motorcycles. There is no limit on the number of vehicles that may be purchased, and you may claim the deduction for taxes paid on multiple purchases. But the deduction per vehicle is limited to the tax on up to $49,500 of the purchase price of each qualifying vehicle and phases out for taxpayers at higher income levels. This deduction is available regardless of whether a taxpayer itemizes deductions on Schedule A.

Energy-Efficient Home Improvements

The Recovery Act also encourages homeowners to make their homes more energy efficient. The credit for nonbusiness energy property is increased for homeowners who make qualified energy-efficient improvements to existing homes. The law increases the rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to a total of $1,500 for improvements placed in service in 2009 and 2010.

Qualifying improvements include the addition of insulation, energy-efficient exterior windows and energy-efficient heating and air conditioning systems.

Tax Credit for First Four Years of College

The American opportunity credit is designed to help parents and students pay part of the cost of the first four years of college. The new credit modifies the existing Hope credit for tax years 2009 and 2010, making it available to a broader range of taxpayers, including many with higher incomes and those who owe no tax. Tuition, related fees, books and other required course materials generally qualify. Many of those eligible will qualify for the maximum annual credit of $2,500 per student.

Certain Computer Technology Purchases Allowed for 529 Plans

ARRA adds computer technology to the list of college expenses (tuition, books, etc.) that can be paid for by a qualified tuition program (QTP), commonly referred to as a 529 plan. For 2009 and 2010, the law expands the definition of qualified higher education expenses to include expenses for computer technology and equipment or Internet access and related services to be used by the designated beneficiary of the QTP while enrolled at an eligible educational institution. Software designed for sports, games or hobbies does not qualify, unless it is predominantly educational in nature.

Making Work Pay and Withholding

The Making Work Pay Credit lowered tax withholding rates this year for 120 million American households. However, particular taxpayers who fall into any of the following groups should review their tax withholding rates to ensure enough tax is withheld, including multiple job holders, families in which both spouses work, workers who can be claimed as dependents by other taxpayers and pensioners. Failure to adjust your withholding could result in potentially smaller refunds or in limited instances may cause you to owe tax rather than receive a refund next year. So far in 2009, the average refund amount is $2,675, and 79 percent of all returns received a refund.

Related Information

For more on the Recovery provisions that may apply to individual taxpayers see the ARRA page on IRS.gov.

It’s out there and available so do an assessment of your needs and check it out to see if you qualify.  If you need any help trying to figure this out then stop by and one of us can prove that we are every bit as confused as you are but between us we will come up with some answers.

What Is radon? You can’t smell or see radon. It’s an odorless, colorless gas that is the second-leading cause of lung cancer in the U.S. If you’re unsure whether your home has a high level of radon, it’s time to find out if your house is among the estimated 1 in 15 with a dangerous level of the cancer-causing radioactive gas, which is estimated to claim 21,000 lives a year in this country. See the article at here for information about radon detection, prevention and remediation.  Check out the newsletter from Jeanne and Russ Spriggs for more interesting and useful information.  These two professionals are always ready to answer your questions and make you feel like you are visiting with your friends and neighbors while they do it.    The Cancer Relay for Life will begin at 6 pm on Friday, June 12, 2009 at the Bonner County Fairgrounds in Sandpoint, Idaho.   You can support us by visiting our Relay for Life site.

Russ Spriggs stopped by the office this week to drop off his updated Home Inspection brochures and some $50 off discount cards good for all of 2009!   We had a terrific visit talking about everything from radon to roofing and plumbing to pollutants.   We even spoke of Snufflebugs!    One of the smartest actions taken by real estate agents and brokers is to always, always, always recommend a professional home inspection.   It was only a few years ago that the Bonner County Building Department was eliminated and that has had an impact on rural homes.    Remember that people have been building all kinds of homes in this county and others have added on with some pretty darn creative remodels and additions.   I liked the house up the hill, off Flume Creek road that had the tree going through the kitchen floor, upstairs through the bedroom, and out the roof.   Uh, yep.   We did call it the “tree house”.      What is the biggest thing that can go wrong with a Home Inspection?

That depends on where you live, how it was constructed, and how it has been maintained.   No one should be afraid of a home inspection, whether you are buying or selling it just makes sense.   Many homes have new paint, floor and wall coverings but that may just be like dressing up for the prom.   We have all seen tanned, botoxed, well-dressed people on talk shows and while they look fabulous – it does not tell us about their heart, lungs, and cardio-vascular systems.   The stuff inside.   A home inspection gets inside and addresses the condition and safety of the wiring, plumbing, heating, roof and other aspects of a home that you will depend on whether the paint is new or not.

Visiting with Russ is amazing because he is passionate about the work that he and his wife do to help people with their dream homes.   I am convinced that he could make a ticket to a tupperware party sound like a trip to Disneyland.   Russ and Jeanne have a lot to be proud of and tons of detailed information that they are happy to share with you as a Buyer or a Seller.   You can visit them on their website or call them to discuss your needs.    Jeanne is pretty proud of the fact that Russ is Idaho’s first Certified Master Inspector and President of the Idaho State Chapter of the National Association of Certified Home Inspectors. 

There are many professional Home Inspectors in Idaho’s panhandle and they can do an outstanding job for you.   I always recommend you visit with at least three before making a decision.   At the top of the list of home inspectors that I recommend is Russ and Jeanne.   (and no, we don’t make any money from the Spriggs).   I am a fan of professionals and here is a couple that really works their industry, believes in continuing education, and can take care of both residential and commercial needs.   You can hit their website or call Russ and Jeanne today at 208-660-8877.     Ask them about Snufflebugs!

To highlight the need for better sanitation around the world, the chairman of the World Toilet Association, Slim Jae-duck, built his house in the shape of a toilet (now that’s dedication). The steel, white concrete and glass house is named Haewoojae, which in Korean means “a place of sanctuary where one can solve one’s worries.” Before he moved in, Jae-duck rented the house for $50,000 and gave the proceeds to his campaign to provide poor countries with proper sanitary facilities.

You have to admit he made a point and did some good at the same time. Bravo.  Click the link above to see the plane house, shell home, guitar, pineapple, shoe homes and more!   It will either have you longing for some really, really wicked discretionary income or make you appreciate your own “Home Sweet Home”.

On the plus side, most reverse mortgages are designed with no monthly payment as long as the owner(s) reside in the home.  There are no minimum income requirements.   You can use the money for any purpose.  Equity disbursed from this type of loan is tax-free.

Depending upon your plan, reverse mortgages will usually allow the owner to retain the title to the property until they have lived in a different residence for 12 months, sold the property, died, or you reach the end of the loan term.

Keep in mind that if your home increases in value during your loan period, less equity will be lost overall.

Here’s some advice, visit the HUD page on this subject and consult AARP and the National Center for Home Equity Conversion.