Buying a home is a sizable investment relative to each buyer. Even if a person has purchased a home in the past, it benefits the buyer tremendously to work with a professional to advise them through the process and the buyer’s agreement spells out the specifics.
Household pests can be a persistent and an unwelcome challenge for homeowners, disrupting daily routines and potentially posing health risks to occupants. From ants marching across kitchen countertops to rodents scurrying through attics, the presence of pests can create a sense of unease and frustration.
However, understanding the common pests that may invade homes and implementing effective solutions can help mitigate these issues. In this article, we will explore the various types of household pests encountered by homeowners and provide practical solutions to address and prevent infestations, ensuring a cleaner, healthier living environment for you and your family.
Ants are often found in kitchens and around food sources and can be a common nuisance in homes, especially during warmer months. Solution: Keep kitchen surfaces clean, store food in airtight containers, seal cracks and openings where ants can enter, and use ant baits or natural repellents to deter them.
Cockroaches are resilient pests that can thrive in various environments, including kitchens, bathrooms, and basements. Solution: Maintain cleanliness, eliminate food and water sources, seal cracks and gaps, use cockroach baits or traps, and consider professional pest control if infestation persists.
Mice and rats can enter homes through small cracks and openings, causing damage to property and posing health risks through contamination of food and spreading diseases. Solution: Seal entry points, keep food stored securely, eliminate clutter, set traps, use ultrasonic repellents, and consider professional extermination for severe infestations.
Termites can cause significant structural damage to homes by feeding on wood, often going unnoticed until the damage is severe. Solution: Regular inspections, address moisture issues, remove wood-to-soil contact, use termite-resistant materials, apply chemical treatments or bait systems, and seek professional help for severe infestations.
Mosquitoes can breed in standing water and are known vectors for diseases such as West Nile virus and Zika virus. Solution: Eliminate standing water, use screens on windows and doors, install mosquito nets or outdoor traps, use mosquito repellents, and consider professional mosquito control services for severe infestations.
Flies can be a nuisance indoors, especially in areas where food is present, and can also spread diseases by contaminating surfaces. Solution: Keep food stored properly, clean up spills and crumbs promptly, use fly screens on windows and doors, install fly traps or electronic zappers, and maintain good sanitation practices.
Fleas are commonly associated with pets but can also infest homes, causing itchy bites and requiring thorough treatment to eliminate. Solution: Treat pets with flea control products, wash pet bedding regularly, vacuum carpets and upholstery frequently, use flea bombs or foggers, and consult a veterinarian for severe infestations.
While most spiders are harmless, some species can be venomous and pose a threat to humans. They often take up residence in dark, secluded areas of the home. Solution: Seal cracks and gaps, reduce clutter, keep outdoor vegetation trimmed, use spider repellents or natural deterrents, and remove webs regularly.
Nests built by wasps and bees around homes can pose a risk of stings, especially to those allergic to their venom. Solution: Remove nests carefully, keep outdoor areas clean and free of food debris, use insecticidal sprays or dusts for nest removal, and consider professional extermination for large or dangerous nests.
Maintaining a pest-free home requires vigilance, consistency, and a proactive approach to pest management. By identifying common household pests and implementing targeted solutions, homeowners can effectively control infestations and minimize the risks associated with these unwelcome visitors. By staying informed and taking proactive steps, you can enjoy peace of mind knowing that your home is a haven-free from the disruptions and health hazards posed by household pests.
Contact us if you would like a recommendation for a trusted pest control service.
Upcoming changes in real estate transactions are imminent following the resolution of significant class action lawsuits involving sellers and the National Association of REALTORS� along with numerous leading real estate firms nationwide. These changes will have implications for sellers, buyers, and agents alike.
There has been a lot of news coverage in the past few weeks but unfortunately, much of it has added to the confusion on how things will change rather than clarify it.
It was reported that since the seller will most likely be paying only their commission, the price of homes will come down. That is very unlikely to happen. The value of a home is not determined by whether a commission is paid nor the amount of it.
In the terms of the settlement, which is still to be approved by a court, the change will go into effect on August 17, 2024 but some companies will implement the changes earlier. The following excerpts are taken from the NAR Settlement Fact Sheet.
It is important for buyers to understand that in the many forms of buyer representation agreements that exist throughout the United States, there will be a provision stating the buyer’s agent fee for the transaction. In the past, the most common way the fee was handled was through an agreement that the seller would pay a specific amount to the buyer’s agent or that the listing fee would be shared with the buyer’s agent.
The market will be in a state of uncertainty as to the different ways the buyer’s agent will be compensated. The most common ways would be:
Consistently, almost 90% of homebuyers have chosen to collaborate with a real estate agent or broker, a trend expected to persist. Despite the rise of digital research and transactions, the obvious value provided by REALTORS� endures, with nine out of ten homebuyers expressing satisfaction and a willingness to recommend their agent to others.
National Association of REALTORS� members will remain steadfast partners for the countless Americans pursuing the dream of homeownership, providing reliable support and guidance along the way.
For more information and another viewpoint, see this Fortune.com article published April 3, 2024. Download a copy of 105 More Ways agents who are REALTORS� are worth every penny of their compensation.
The tax benefits of owning both a first and second home can be significant, with the IRS allowing taxpayers to deduct interest and property taxes on both properties as itemized deductions on their tax returns, albeit with certain limitations. Interest deductions are limited to the amount of debt incurred to buy, build, or improve the first and/or second home, with a maximum cap of $750,000. Property taxes, falling under the limitation of state and local taxes as set forth in the TCJA of 2017, are capped at $10,000 per year.
However, while second homes enjoy these benefits, they do not qualify for the Section 121 exclusion sale of principal residence rules. These rules only apply to a taxpayer’s principal residence, allowing couples filing jointly to exclude up to $500,000 of capital gain from the sale of their primary home, and single filers up to $250,000 of gain, provided they have owned and used the property as their principal residence for two out of the five preceding years.
Taxpayers considering selling their second home, which wouldn’t qualify for the exclusion, may explore changing its status to their principal residence. This entails owning and using the property as their principal residence for two years, along with careful documentation and planning to qualify for the exclusion. Indicators of a principal residence include making the second home the preferred mailing address for various documents, ensuring all family members reside there most of the time, having utilities in the homeowner’s name, and updating addresses with relevant entities.
Changing the status of the second home to the principal residence can be beneficial to avoid recognizing gain on the sale. However, it’s crucial to consult with a tax advisor to determine eligibility and ensure proper documentation and support for the change. This guidance will help navigate the process effectively and maximize tax benefits for the homeowner.
The gain on the sale of your home is determined by the price you sell the home, less selling expenses, less the price you paid for it, plus the capital improvements made during the time you owned the property.
IRS and accounting use the term "basis" to describe your cost in the home. It is a dynamic number that changes over time based on capital improvements that are made and capital losses that are incurred. What is called the tax basis may better be referred to as cost basis. It is the taxpayer’s cost in the property used to determine the tax on the gain of the sale.
The calculation begins with the purchase price of the property plus certain capitalized acquisition costs that were owed by the seller but were paid when purchased. Examples would include real estate taxes owed through the day before the sale date, back interest owed by the seller, and charges for repairs that were the seller’s responsibility. Capital improvements made to the property during ownership will increase the basis.
Capital improvements must either materially add value to the home, appreciably prolong the useful life of the property, or adapt a portion of the property to a new use. IRS Publication 523 has a section on figuring the gain or loss on a personal residence.
Some of the following may be considered capital improvements: landscaping, driveway, fence, swimming pool, new roof not covered by insurance, replacement of HVAC equipment and appliances. Maintenance and repairs to a person’s home is not a capital expenditure.
If the owner purchased a home for $350,000 and during that time spent $110,000 on qualified improvements, the cost basis of the property would be $460,000.
If cost recovery had been taken on the home when it was used as a rental property, even though it is now considered a principal residence, the total amount of the depreciation lowers the basis in the property.
| Purchase Price | $350,000 |
| Plus Capital Improvements | $110,000 |
| Adjusted Basis | $460,000 |
| Sales Price | $650,000 |
| Less Selling Costs | $31,000 |
| Net Selling Price | $619,000 |
| Less Adjusted Basis | $460,000 |
| Capital Gain | $159,000 |
In the example above, if the taxpayer owned and used the home as their principal residence for two out of the last five years and had not taken an exclusion on another home during the two years prior to the current sale and didn’t acquire the home through a 1031 exchange during the past five years, the gain qualifies for an exclusion and no tax paid. Single taxpayers and married taxpayers filing separately can exclude up to $250,000 of gain from the sale of a principal residence. Married taxpayers filing jointly can exclude up to $500,000 of gain from the sale.
Record keeping is important for you to substantiate the capital improvements when it comes time to calculate the gain. While IRS does allow you to reconstruct the expenses, it is much better to keep track of them in a contemporaneous manner with dates, receipts, and possibly, pictures for the more expensive improvements.
For more information, download our Homeowners Tax Guide.
Owning a home has long been considered a fundamental part of the American dream. It represents far more than just having a place to live�it embodies values, aspirations, and a sense of security. Here’s why homeownership is widely regarded as a key component of the American dream:
Stability and Roots: Owning a home provides a sense of stability and roots in a community. It allows individuals and families to establish themselves, put down roots, and create a sense of belonging.
Wealth Building: Homeownership is often seen as a pathway to wealth building. By building equity over time, homeowners have the potential to accumulate wealth, establish financial security, and pass down assets to future generations.
Personalization and Pride: Homeownership grants the freedom to personalize and customize a space according to personal taste and style. It offers a sense of pride and accomplishment, as homeowners can create a place that truly reflects their identity and values.
Community and Social Connections: Homeownership fosters a sense of community and social connections. Neighbors become more than just acquaintances; they become friends, creating a supportive network that enhances the overall quality of life.
Stability for Future Generations: Homeownership provides a stable environment for future generations. It offers the opportunity to create lasting memories, build family traditions, and provide a secure foundation for children and grandchildren.
Financial Benefits: Homeownership can provide various financial benefits, including potential tax advantages and the opportunity to build credit and establish a solid financial history.
Sense of Achievement: Achieving homeownership is often viewed as a significant milestone and a symbol of personal achievement. It represents hard work, dedication, and the fulfillment of a long-held dream.
Control and Independence: Homeownership brings a sense of control and independence. Homeowners have the freedom to make decisions about their property, from renovations and improvements to landscaping and design choices.
Long-Term Investment: Real estate has historically been a reliable long-term investment. Homeownership allows individuals to build wealth over time while enjoying the benefits of a place to call their own.
Emotional Well-being: Owning a home can contribute to emotional well-being and overall happiness. It provides a sense of security, pride, and a place to create lasting memories with loved ones.
Homeownership represents a significant part of the American dream, encapsulating aspirations for stability, financial security, personalization, and a sense of community. It symbolizes the pursuit of a better future, a place to call home, and the realization of one’s own piece of the American dream.
For more information, download Homeownership Today!
Are you in the market for a new home and wondering which mortgage option is right for you? While the world of home financing offers a surplus of choices, one option often overlooked is the Adjustable Rate Mortgage, or ARM. If you’re in a market where interest rates are trending lower, an ARM could be the key to significant savings and financial flexibility.
The problem is simple, while you’re waiting for interest rates to come down, the price of homes are still going up. Any savings from the lower interest rate could more than be offset by the increase in purchase price due to appreciation. Buying at today’s prices with an interim loan might be the answer.
Picture this: You’ve found your dream home, and it’s time to secure financing. An ARM often starts with a lower initial interest rate than a fixed-rate mortgage. This means your monthly payments will be more manageable from day one, allowing you to allocate your budget wisely.
In a market where interest rates are on a downward slope, ARMs can lead to even lower monthly payments. If rates continue to decline, your mortgage payments could shrink, leaving more money in your pocket.
If you anticipate selling or refinancing your home within a few years, an ARM can be a strategic choice. The lower initial rates and shorter fixed-rate periods align with your shorter-term ownership plans, offering cost savings during your stay.
Imagine paying less interest over the life of your mortgage. In a declining rate environment, an ARM can translate into lower overall interest expenses compared to a fixed-rate mortgage, assuming the rates stay favorable.
One of the unique features of ARMs are the rate caps. These caps limit how much your interest rate can adjust during each period, offering a safeguard against sudden and steep rate hikes. Your financial peace of mind is protected.
A lower initial interest rate can boost your borrowing power. With an ARM, you may qualify for a larger loan amount or consider a property that might have been just out of reach with a fixed-rate mortgage.
Lower initial monthly payments with an ARM can free up funds that you can redirect towards paying down your mortgage faster. This could help you build equity in your home more rapidly.
Life is full of surprises, and an ARM provides you with flexibility. As market conditions change, you have the option to adapt your mortgage to your financial goals. You can choose to refinance, lock in a fixed rate, or ride the wave of lower rates.
While ARMs offer exciting benefits in a declining rate environment, they are not without risks. If interest rates rise, your monthly payments could increase, potentially impacting your budget. Therefore, it’s crucial to assess your financial situation, future plans, and risk tolerance carefully.
When the market is trending toward lower interest rates, an Adjustable Rate Mortgage can be a valuable tool for savvy homebuyers especially when the price of homes are still going up. It’s all about seizing the opportunity for savings, financial flexibility, and homeownership that aligns perfectly with your goals and lifestyle. Explore your options, consult with a trusted mortgage professional, and make an informed decision that leads you to your dream home with your financial well-being in mind.
Downsizing can be a significant life transition for any age person, but especially for seniors who may have lived in this last home for some time. Follow these suggestions to make the downsizing process smoother and less stressful.
Remember that downsizing is a personal journey, and it’s essential to approach it with patience and a positive mindset. Don’t hesitate to seek support from family and friends, and don’t be too hard on yourself during this process.
For more information download our guide Downsizing Your Home.
Who wouldn’t want to reside in a beautiful neighborhood adorned with meticulously manicured lawns? While some homeowners relish the thought of working on their yards, others may not share the same enthusiasm. If you’ve ever contemplated the idea of installing artificial turf, also known as fake grass, as a part of your landscape, it’s essential to consider both its advantages and drawbacks.
Let’s Begin with the Advantages:
Modern advancements in artificial turf technology have rendered it nearly indistinguishable from real grass, offering an evergreen and perpetually lush appearance to your landscape.
One of the most significant perks of artificial turf is the elimination of the need for regular mowing and trimming. This translates to potential cost savings by reducing monthly expenses associated with professional yard maintenance.
Artificial lawns are highly durable and can endure for up to two decades with minimal upkeep.
Many manufacturers incorporate recycled materials like tires and plastic bottles into their synthetic grass, contributing to a reduction in your environmental footprint.
Artificial turf conserves water, requiring only periodic watering for surface cleaning. In regions with consistent rainfall, this may even become unnecessary, making it an ideal solution for drought-prone climates. Additionally, artificial grass eliminates the risk of groundwater pollution since it doesn’t require fertilizers. It also reduces air and noise pollution by eliminating the need for gas-powered lawnmowers and trimmers.
Now, Consider the Drawbacks:
Artificial grass can come with a substantial initial cost.
Being synthetic, it can absorb heat, potentially making it uncomfortably warm under bare feet in direct sunlight.
Accidental pet waste may pass through the turf, with solids being removable, but odors could linger. However, these odors can typically be eliminated using a vinegar and water solution.
Small debris that can’t be removed with a leaf blower, such as mulch chips and tiny branches, may require a specialized artificial grass sweeper or turf rake for thorough cleaning.
Before deciding on artificial turf for your yard, carefully weigh these pros and cons to determine if it aligns with your needs, preferences, and budget.
