Smart Tax Moves Before Year's End

1. Pre-pay your property taxes
In California, where property taxes are due twice a year, it may make sense to pre-pay next year’s first installment. This is especially the case for people who expect their income to go down next year. “Check with your CPA about what the rules are in your state,” Eisenberg advises.

2. Accelerate mortgage payments
For similar reasons, people expecting their incomes to go up may want to push their January mortgage payment into December. “If you’re going to make that payment in the next 30 to 90 days anyway, it’s almost silly not to accelerate and get the deduction,” says Amin. “Especially if your income is going to change.”

3. Make energy efficiency improvements
The IRS tax credit for making improvements to a home for energy efficiency–insulation, air conditioning or heating units, windows, among other items–they can qualify for a tax credit of 10% of the cost, up to a lifetime maximum of $500. Note that this is not a deduction, but a credit–a straight subtraction from taxes owed. “This thing may be expiring at the end of the year,” Eisenberg says. So do those energy efficiency projects now.

4. Finalize your foreclosure sale
Before the financial crisis, people who lost their homes to foreclosure and had the remainder of the balance on their mortgages forgiven had to report that cancelled debt as income and pay taxes on it. But in the midst of the recession, with people losing houses left and right, Congress had a heart and stopped taxing the first $2 million in forgiveness of mortgage debt. Well, that nice perk is coming to an end at the end of the month. So if you have a home in the midst of a short sale or foreclosure proceeding, put the pressure on everyone involved to get the deal done before the year is over.

“This is so important that people know,” Eisenberg says. “If they have $500,000 or $600,000 or $700,000 in debt cancelled,” on a sale that closes after the end of a year, “then not only have they lost their house, they’re also going to end up paying taxes on the debt forgiveness as income. Not a good outcome.”

In addition to the above steps you might want to take before the year is over, here are some items that you can’t do anything to change, but would be wise to keep in mind for 2013 taxes:

1.                          Deductibility of points
For new loans on home purchases for this year, points are deductible. This is true for any acquisition. However, for points on a refinance loan for anything other than improvements on the home, the points are deductible over the life of the loan. On 2013 sales of homes with a refinanced loan that has points, the unused portion of the points are deductible for this year’s taxes.

2.                         Deductibility of PMI ending
The tax deduction for principal mortgage insurance (PMI) is set to expire at the end of this month, but Eisenberg does not recommend pre-paying, as the IRS may not look fondly on that.

3.                         Exclusions on gains from sales
Home sales in 2013 qualify for an exclusion on the net sales gain (the selling price minus the purchase price plus any improvements) of up to $250,000 for an individual, $500,000 for a couple. The caveat: this only applies to a home that was used as a personal residence for two out of five years. If you’ve moved out of a personal residence and then moved back in, you have to live in it for five years before you can take this exclusion. Consult a tax accountant to see if you qualify for a partial exclusion.

4. Home office deduction
Both homeowners and renters can take advantage of a simplified rule for the home office deduction. Under new rules for 2013, the formula is a $3 per square foot deduction, up to 500 square feet. The office has to be used consistently and regularly, though.

5. Clean out and give away
Another thing that homeowners-—or anyone—-can do is go through their homes and get rid of extra possessions by making donations to charity. Taxpayers who itemize can include charitable deductions in their 2013 taxes. “Just make sure you’re donating it to an IRS-designated 501c3 organization,” Amin says.

- Erin Carlyle - Forbes Magazine

Make 'Home Sweet Home' your 'Home Safe Home' this Holiday!

You could be spending a lot of time this holiday season in a particularly dangerous place: your home.

While most of us assume our own home is safe (in one survey, 90% thought so), it's still where the great bulk of injuries occur. Each year in the U.S., an average of 21 million doctor visits and 20,000 deaths are chalked up to home accidents. That doesn't even take into account the millions of bumps and strains that go untreated.

And all the holiday hoopla can make things worse: December is the deadliest month for electrical fires, according to the U.S. Fire Administration.

"The holidays are a time of year where you're just going to be stressed out and tired and distracted, and sometimes there might be a little holiday cheer involved," says Meri-K Appy, president of the Home Safety Council, a nonprofit dedicated to preventing home accidents. "These are all the kinds of things that conspire to make safety drift out of mind." (Bing: Find more holiday home-safety tips)

The No. 1 home-accident killer overall? Falls, followed by poisoning, fire, choking and, lastly, drowning.

"The good news is these accidents are very preventable," Appy says. "Think about the most important things, which are how to keep your loved ones safe and happy, and there are very easy ways to do that."

So, the experts say, take a moment now to put safety at the top of your holiday list and prepare your home intelligently.

 Here are 12 things to check around the house before the guests arrive and the punch bowl gets put out:

1. Be wary of cheap lights and check those cords!

According to the U.S. Consumer Product Safety Commission, about 12,500 people end up at hospital emergency rooms each year with decorating-related injuries. About 5,000 of those are electrical shocks or burns. Some cases, such as when ladders or light strings touch live wires, are fatal.

Preferably before you string up the lights on the tree or on your roof, check all the electrical and extension cords. Toss any that are frayed or cracked (don't wrap with electrical tape). Buy only cords that have been tested by an independent laboratory, such as Underwriters Laboratory, and that are clearly marked with the manufacturer's name and product information.

An influx of counterfeit electrical equipment has entered the country lately, says the Electrical Safety Foundation International, a Virginia-based nonprofit. The products may contain a phony UL tag, but they have not been tested and may not be safe.

Christopher Lindsay, the ESFI’s director of programs, recommends buying only from reputable hardware stores and avoiding online bargains or deep-discount retailers. "If the bargain is too good to be true with an electrical product, be very wary, be very wary," he says. "Unfortunately, these can have potentially deadly complications."

2. Buy cool tree lights

LEDs (light-emitting diodes), those nifty-looking little lights a lot of towns are using now, aren’t just cool for the environment — they use 90% less energy — they’re also cool for boughs.

The bulbs simply don’t produce heat buildup. And because they use less electrical current, it’s safe to string together as many strands as you might need.

According to the National Fire Protection Association, an average of 250 home fires a year began with Christmas trees between 2003 and 2007, causing, on average, 14 deaths, 26 injuries and $13.8 million in property damage.

3. Don’t overburden electrical sockets; use proper outdoor lights

Old homes sometimes lack enough electrical outlets to meet modern gadgetry needs, and people improvise by treating electrical plugs as if they are Legos, stacking them every which way. This is not a good practice, experts say.

To prevent overheating, plug in no more than one extension cord per socket and string no more than three sets of traditional lights together. There’s no universally accepted number of cords per outlet or means to gauge electrical current levels, so that puts your home at the mercy of common sense. If outlets or power strips are hot to the touch, emit a smell or trip fuses, shut things down and cut back on the juice.

Better yet, expand your capability, Lindsay says. Preferably you’d do this before the holiday crush sets in, but if you’ve already decked your home, have an electrician modify the wiring before next year’s festivities. “There are ways you can get your home to match your energy needs,” Lindsay says. Any cost will be less than the cost of a fire.

Outside, note the condition of electrical wires before carrying and bumping ladders around. Big jolts can kill instantly; smaller ones cause falls.

Outdoor cords must be labeled for outdoor use, and should be protected by a ground fault circuit interrupter, a device that cuts off the current if a leak is detected. These cost a few dollars and can plug directly into an outlet. They also save lives, Lindsay says.

Without one, a damaged wire can transfer electricity into water or metal. “If for some reason the wire is damaged and electricity is leaking, that could make the whole drain pipe live,” he says. “Anything metal that it touches is live, including the decoration itself.”

4. Clean furnaces and stoves

If you didn’t get around to these pre-winter fixes, why not use extra holiday warmth as an excuse to do it now? Heating-equipment fires are the leading cause of fire deaths in this country. In 2008, according to the U.S. Fire Administration, about 2,650 people were killed in house fires.

If you haven’t had your annual inspection by a chimney sweep or furnace repairman, do get it now.

Clean dust buildup from dryer hoses, as well as lint from the dryer itself with each load.

Clean cooking appliances, particularly any grease buildup that could make a spark in a busy kitchen suddenly worse. Cooking accidents are the leading cause of home fires.

About 250 people a year are killed by appliance-related electrocution, Lindsay says. For more holiday electrical tips, see the ESFI’s homesafety.org.

5. Clear ice dams from gutters; clear walks

Planning on having guests? Or spending more time trudging to and from and around the house? Load up on whatever gravel and rock salt you might need, and clear the walkways and gutters to prevent ice buildup.

You don’t want people injured, clearly, and you also don’t want to be found negligent. Laws vary by state, but generally homeowners are expected to take reasonable measures to maintain a safe environment. Snow may be a natural event; however, falling ice chunks resulting from gutters that you’ve failed to clear are not.

 “Negligence can be an accident, but you can still be found liable if you fail to act as a reasonable person would,” says Maureen Lane, an insurance defense lawyer at the Boston firm Melick, Porter & Shea. “For example, if people come across your threshold all the time and you still string a cord across there,” you could be held liable.

In Massachusetts, a jury can divvy up the costs based on what percentage of negligence each party exhibited. In other words, don’t expect your guests to sidestep badly placed stuff or dodge falling decorations.

6. Evaluate your homeowner’s insurance

Speaking of clumsy guests, the party season is a good time to check just what your homeowner’s insurance does — and does not — cover if someone injures himself on your property.

Surveys by the National Association of Insurance Commissioners indicate that people often don’t understand their own policies. Ask: What are your damage limits? Does your policy include liability and medical payments coverage?

“Unfortunately, after an accident people realize the limits of the policy, and it’s often too late,” says Michael McRaith, director of insurance for the state of Illinois.

The same holds for renters. The landlord’s homeowner’s insurance isn’t going to cover a renter’s personal belongings or defend against a renter’s negligence. If you’re hosting a party or having guests, talk to the landlord’s insurance company and consider buying your own insurance.

It’s also possible to buy temporary special-event coverage. For some standard guidelines on homeowner’s insurance, see this brochure from the Insurance Information Institute.

7. Fall-proof the house

Appy, of the Home Safety Council, recalls one Christmas when a visiting older relative navigating a dark hallway fell down the stairs. She suffered only a strain, “but it could have been so much worse,” Appy says. “It was dark, she wasn’t at [her] home, she got up to go to the bathroom ... we didn’t think about this, but there was no nightlight there. She got disoriented.”

Take extra care if you are expecting older guests, as falls are the leading cause of home fatalities.

Clear stairs, hallways and doorways of clutter. Consider installing railings along the stairs and grab bars in the bath.

“You can make some environmental changes that will really make your home safer,” Appy says.

8. Child-proof the house

Take the same cautious approach if children are expected, particularly if your house is not already child-proofed and relatives might be celebrating or preoccupied.

Most importantly, Appy says, put poisonous materials out of reach. Any supplies with words such as “caution,” “danger” or “warning” should be behind child-proof doors. Also, tinsel and decorations can choke small children with grabby fingers.

Learn about the safety hazards of rooms where small children will be sleeping, and how to keep toddlers out of bathrooms. For more information, see the room-by-room virtual safety tour atMySafeHome.org.

9. Check your smoke and CO detectors

Most residential fires start where everything’s cookin’, in the kitchen. Don’t start roasting if you haven’t verified the smoke detectors are installed correctly. Batteries should be replaced every six months, and there should be a detector on every floor outside bedrooms.

Homes should also have a carbon monoxide (CO) detector on each floor. Carbon monoxide, which can leak from dirty or malfunctioning heating equipment, is odorless and lethal.

If any of this sounds redundant, consider this: A recent survey by the National Fire Protection Association and the American Red Cross found:

•             48% of Americans plan to use alternative heating sources this winter to reduce their fuel bills;

•             36% of people with fireplaces reported they never cleaned or inspected their chimneys;

•             23% did not consider it essential to make sure someone is home when food is cooking on the stove;

•             Half did not have a CO alarm; and

•             26% did not have a fire extinguisher in their home.

“Too many people are lackadaisical about fire these days,” says Jim Burns, past president of the National Association of State Fire Marshals. About 3,500 people die in fires every year in this country.

Space heaters account for three-quarters of the heating-fire deaths. Whether saving on heating oil or warming up a basement guest room, make sure to buy a new model with an automatic shut-off. Keep it three feet away from objects and never leave it unattended. For more, see these NFPA heating safety tips.

 “What happens around the holidays is you have a convergence of things that creates a fire risk,” says Lorraine Carli, an NFPA spokeswoman. “There are a lot of things occurring around a small period of time.”

Make sure you’ve got fire extinguishers near heating sources and passageways. The NFPA recommends at least one extinguisher per floor. Make sure family members know how to use them (and what not to do, such as not putting water on a grease fire).

11. Plan for partiers before the party

Hosts are responsible for their guests, not only morally but legally. In some states, hosts who have served alcohol can be held liable for the actions their guests take later.

Before you get sidetracked by the hors d’oeuvres planning, take a minute to review how the courts in your state can hold you responsible should a guest get a DUI on his way home from your party, and what your homeowner’s insurance will cover. It could serve as the extra motivation to keep any impaired guests off the road and may save lives.

SocialHostLiability.org, a private law firm’s site, has links to research and laws regarding the legal responsibility of hosts who serve alcohol. And Mothers Against Drunk Driving has tips on dealing with intoxicated guests.

12. Lock the doors; store the goods

Thieves aren't always so dumb, and they can be easily enticed by the sight of big boxes through the window. So, when you’re away from home for a while, do the usual: Put lights on timers; have a neighbor shovel the walk and pick up the mail; avoid displaying gifts in front windows; and always lock up.

While homeowner's insurance policies cover theft, they typically carry a maximum. If need be, consider buying a personal articles policy to increase the limit, says Dick Luedke, a State Farm Insurance spokesman.

By Karen Aho of MSN Real Estate

Real Estate Agents - Don't Let the Snow Slow Your Sales this Winter Season!

A long-standing practice of real estate professionals is to take a home off the market in the winter to “refresh” the listing, and then relist the home in the spring.  Most will tell a homeowner who is thinking of putting their home on the market in winter to wait until the spring, since more homes sell at that time of year.  But you really need to put this old notion aside.  Winter is the time you should really ramp up your marketing efforts and really push to make a great start to the new year and here are just a few reasons why……

Technology makes homes more accessible to buyers.  With all the technology available to buyers today, the winter weather does not have to be a huge deterrent.  Nine out of ten home buyers search for their home online, according to the National Association of Realtors.  They’re searching at night after dark.  They’re browsing real estate websites while out of town, at Grandma’s after a long Thanksgiving dinner.  They’re driving around their desired neighborhood, viewing available homes on a mobile phone, in the safety of their warm vehicle. The way buyers search for homes has changed, and their location, the time of year, and the weather have far less effect on their ability to view homes than it used to.

January is the BIGGEST transfer month.  Corporate transferees, who need to buy a house now, simply cannot wait until spring. The percentage of homes sold in winter compared to total sales has risen significantly over time.  Home buyers’ changing employment and mobility situations have lessened the seasonal effect that we’re used to quoting in real estate circles.  There are certainly still less sales in winter, but that brings us to the next factor…..

Competition is lighter in winter! This is one of the most significant factors most agents and sellers need to ponder.  While a buyer may have had 30 homes to choose from in June, there may only be 10 homes that fit their criteria in January. If they are motivated to buy (and winter buyers are), they will choose one of those 10 homes. Sellers who stick out the market through the winter actually increase their chance to sell significantly.  When the smaller number of winter sales are compared to the smaller inventory of available homes, you’ll see that an individual home seller may actually be just as likely to have their home sell in winter as in summer.

Buyers are more serious.  Let’s be honest; if you were a casual looker and not ready to buy, are you going to waste your time trudging around in the snow and cold to view homes?  No.  Buyers that are looking in winter are much more motivated to find a home.  They are still looking because they have to!  This can lead to fewer concessions on your seller’s part to make the deal happen.  With less competition and more serious buyers, your sellers can really have the upper hand in negotiations - bringing in in a higher price than they would be in the spring.

Homes show well during the Holidays!  Use the holidays as a chance to play off of buyers emotions.  You have a chance to show your home at its very best, adorned with warmth and holiday cheer.  People want to be able to “see themselves” in a home.  Holidays give sellers a great chance to make buyers feel the home as a warm and inviting place to reside.

The bottom line is don’t stop your marketing efforts in the winter.  Use the slow season to your advantage and close more deals! 

Hiring a real estate agent can SAVE you money!

Did you know hiring a good Real Estate Agent to sell your home will most likely SAVE you money? Don’t go at it alone. If you are thinking of selling your home give us a call and we can help connect you with a great agent in your area! Call today! 1-800-898-9688 

You Need a Professional to Sell or Buy a Home

by The KCM Crew on October 8, 2013 in For Agents

Many people ask  whether they should hire an agent to sell their home or whether they should first try as a For Sale by Owner (FSBO). In today’s market, we believe this is an easy decision: you need an experienced professional!

You need an expert guide if you are traveling a dangerous path

The field of real estate is loaded with land mines. You need a true expert to guide you through the dangerous pitfalls that currently exist. Finding a buyer ready, willing and able to pay fair market value for your home at a time when lending standards are so stringent is not an easy task. Finding reasonable financing can also be tricky when interest rates are volatile like they have been over the last several months.

You need a skilled negotiator

In today’s market, hiring a talented negotiator could save you thousands, perhaps tens of thousands of dollars. Each step of the way – from the original offer, to the possible re-negotiation of that offer after a home inspection, to the possible cancellation of the deal based on a troubled appraisal – you need someone who can keep the deal together until it closes.

Realize that when an agent is negotiating their commission with you, they are negotiating their own salary; the salary that keeps a roof over their family’s head; the salary that puts food on their family’s table. If they are quick to take less when negotiating for themselves and their families, what makes you think they will not act the same way when negotiating for you and your family? If they were Clark Kent when negotiating with you, they will not turn into Superman when negotiating with the buyer or seller in your deal.

Bottom Line

We believe that famous sayings become famous because they are true. You get what you pay for. Just like a good accountant or a good attorney, a good agent will save you money…not cost you money.

How the Government Shut Down will affect Mortgage Loans

A number of you have asked me the following question:  “How will this government shut down affect  mortgage loans and our clients?”

·        The government’s fiscal year runs from October 1 to September 30.  Every year – Congress has to pass the spending bills that fund the government.  If they don’t pass those spending bills – the government can’t spend any dough.  Who says Congress has to approve these spending bills before the government spends money?  The Constitution.

·        Why won’t Congress sign next year’s spending bill?  It’s a big debate over the new health care law.

·        Hmmm.  Lots of things depend on government spending.  Will air traffic controllers get laid off?  What about the men and women in our armed forces?  About 2.5 million government employees will be considered “essential.”  Those people will keep on working.  Air traffic controllers and military are in that category.  But, about 800,000 employees will be considered “non-essential.”  They get furloughed.

·        Will this affect the economy?  Perhaps.  If it only lasts a week or so – probably not.  If it goes on longer, it could definitely have an effect on the economy – especially because we’re in a pretty fragile recovery.

·        How will this affect loans?  In the short run – it won’t affect us much.  In the longer run (beyond 10 days) it will start to have a more serious effect:

o   FHA

§  We’ll still be able to write FHA loans if the spending bill isn’t passed.

§  We will still be able to get an FHA Case Number from FHA.   FHA Total Scorecard will still be available.

o   VA

§  We’ll still be able to write VA loans if the spending bill isn’t passed.

§  We’ll still be able to obtain Certificates of Eligibility online

o   Fannie and Freddie

§  Both of these entities won’t be directly affected.  We’ll still be able to Register and underwrite conventional loans.

o   Sounds like we won’t be affected all – that’s great news.  What’s the problem then?

§  Some things won’t work if Congress doesn’t pass the spending bill:

·        IRS – they will still collect our taxes, BUT, they won’t be processing any forms – like the 4506t.  It’s possible that, without the tax transcripts, some processing could be delayed.

·        Social Security Administration – lenders often rely on the SSA to verify social security numbers.  This function could be delayed.

·        FEMA (Flood Insurance) – the ability to get new policies could be delayed.  This could affect purchases if the shutdown goes on for a while.  Again, it will have very little effect if it only occurs for a few days.

·        What about interest rates?  If the government stops paying some of its bills – won’t interest rates go way up?

o   Interestingly, at least in the short run – probably not.  Why?  Because nobody believes the US Government won’t ultimately pay back bond holders (that fight is coming when the borrowing limit needs to be raised on October 17^th).  But, because this game of chicken that Congress is playing with themselves will potentially damage the economy – the biggest losers if this goes on for a while would be individual companies and people like us.  So, people who think this will go on for a while are moving money out of stocks and putting them into US Treasury bonds.  Weirdly, the government saying they won’t pay their debts for a while could actually push rates lower.  BUT – before a loan officer gets super excited and tells his/her clients to float, consider that things could get really messy if this goes on for a while and nobody knows how that will play out.

  

So that’s it for now.  As I’ve mentioned, things could get more complicated if this lasts for a while.  We’ll certainly provide more updates in the days to come. 

Homeownership is STILL the American Dream

A big question facing the real estate industry over the last few years is how the housing crisis would impact the public’s belief in homeownership as a major component of the American Dream. Many felt the tragedy experienced by so many families would force them to reconsider their desire to ever be a homeowner again.

A recent study by the Joint Center for Housing Studies at Harvard University addressed this question. Their paper, Reexamining the Social Benefits of Homeownership after the Housing Crisis, revealed some interesting findings:

Homeownership Still Preferred Over Renting

“Even after the dramatic loss of equity and the high foreclosure rates, the early evidence suggests that people seem to believe that, over the long run, owning is still preferable to renting…The long term cultural preference for owning seems to have weathered the recent housing crisis.”

Americans Still Expect to be Homeowners

“The research on home-buying expectations supports the conclusion that very large percentages of Americans still expect to buy a home at some time in the future.”

Younger Americans More Desirous of Homeownership

“Moreover, the finding that younger renters and owners are more likely than their older counterparts to expect to own bodes well for the future of the housing market.”

Even after one of the most difficult decades in this country’s real estate history, the belief that homeownership is a part of the American Dream still lives on.

About The Author

We at The KCM Crew are pursuing our mission of building a home for real estate information. We are truly dedicated to helping real estate professionals by supplying all the tools and resources they need to be seen as industry leaders in their marketplace. See how we can help you become an industry leader in your marketplace, and be sure to check out our page on Facebook and follow us on Twitter.

Buying your Dream Home: How to Avoid a Nightmare!

Buying your dream home shouldn’t turn into a nightmare. Make sure you know how much of a mortgage you qualify for before you start looking.  We can help! Call our office to get prequalified at 412-243-0218.

Check out this great article and video from Destination Home via Yahoo.com

Buying a house may be the American Dream, but what mistakes do you need to avoid when buying your dream home?

In this episode of Destination Home, Rutenberg Realty agent and founder of BuyingNYC.com Brad Malow details how people can figure out if they can afford their dream home, and he addresses common mistakes homebuyers make in the process.

He says stretching the budget is one of the biggest mistakes homebuyers can make. The financial crisis pretty clearly set the precedent for how well that works out (horribly!).

“If we look at what happened a few years back before the housing market crashed, people were taking short-term mortgages, buying dream homes, and ending up in foreclosure and losing their shirts,” Malow tells Destination Home.

Home affordability is more complicated than most think, and Malow lays out what you need to consider in terms of your income, debt and lifestyle. He encourages people to remember that banks don’t ask how much you shop or vacation when you're applying for a mortgage. 

If you’ve crunched the numbers and the affordability of owning versus renting is very close, this might be one instance where Malow would give you the green light to stretch your budget and buy — but only stretch a little. Check out the video to hear his advice.

Another common mistake for those in their 20s and 30s is busting the budget to buy a starter home, thinking you have not yet reached your peak earning potential. According to Malow, do not assume your income will increase in the future. In fact, when calculating affordability you should base your math on your lowest annual salary. 

Yet another mistake he sees this demographic of buyers make is pouring money into renovations. Wait, don’t you want to improve your home's value? Maybe not as much as you’d think. Check out the video to find out why and learn when it's a good time to invest in turning your fixer-upper into your dream home.  http://finance.yahoo.com/news/buying-your-dream-home--how-to-avoid-a-nightmare-185825729.html

6 Worst Home Fixes for the Money

Check out this great article from Dana Dratch of Bankrate.com

It's the magic phrase uttered by almost anyone who's ever considered the cost of home remodeling: "We'll use our home equity and get it back when we sell."

Unless you keep those projects practical, though, you might just be kidding yourself.

 

Every year, Remodeling magazine looks at the hottest home upgrades and renovations and calculates just how much owners get back when they sell.

 

Upkeep is more popular than upgrades these days, says Sal Alfano, editorial director for Remodeling. These are the projects that often recoup the biggest slice of expenses at resale. But prices and returns do vary regionally, he says.

 

Ever wonder what brings the lowest return when you plant that "for sale" sign? Think high-dollar, high-end and highly personalized add-ons that make you drool. Like a totally tricked-out garage built from the ground up. Or a super luxe master suite addition. Or the home office redo designed just for you.

Here are the six improvements that, in their 2010 report, ranked dead last nationally when it comes to getting those renovation dollars back at resale.

 
HOME OFFICE REMODEL

Want to get an idea what today's office-away-from-the-office looks like? Walk into Starbucks.

These days, a home office consists of a multiple-choice combination of wireless laptops, smartphones, PDAs and touch-screen tablets. And that worker bee might be toiling anywhere from a home patio or a favorite restaurant to a park bench.

The standard home office renovation, meanwhile -- complete with plenty of built-in storage and high-tech wiring -- is this year's biggest loser in the resale value sweepstakes. Nationally, homeowners spent an average of $28,888 and can expect to recoup about 45.8 percent at resale, according to the report.

Return on investment doesn't reflect your enjoyment of the space, Alfano says.

He offers two tips for home-office remodelers when they sell. First, opt for something that can be easily converted back into a bedroom or den for (or by) the next buyer.

Second, when you're selling, call it a study, den or hobby room. "There's lots of call for multipurpose space. Don't lock yourself into that one use," Alfano says. Don't use words that invoke images of actual work. Or the office.

BACKUP POWER GENERATOR

You see a backup generator and imagine all of the comforts no matter what the weather.

But potential buyers hailing from outside your local area may not share that vision. (And a handful of those who do might have watched too many zombie movies.)

On average, when homeowners have a heavy-duty backup power generator installed, they spend about $14,718, according to the report. Going with a slightly less expensive model or having a less complicated installation could cut the costs significantly, Alfano says.

Average amount of the price recovered at resale time: 48.5 percent.

SUNROOM ADDITION

Real estate agents will tell you that potential buyers want square footage, pristine condition and lots of light. So a brand-new room that has the word "sun" in it, it has to be great for resale value, right?

Not necessarily.

Your first clue: The word "addition" -- which means expanding the footprint of your home -- indicates that this is not a renovation for the faint of heart (or wallet). "It's one of the more expensive projects," Alfano says.

While it seems simple enough, the national average for a sunroom addition is $75,224, according to the report. Homeowners can expect to recoup about 48.6 percent when they sell.

That doesn't mean that adding a sunroom is always a bad move.

If your home needs another common area, a sunroom could be the answer, says Katie Severance, co-author of "The Complete Idiot's Guide to Selling Your Home." An addition is best considered in the context of the whole home, she says. "The doctor has to treat the whole patient. You have to look at the house and say 'What's out of balance?'"

UPSCALE MASTER SUITE ADDITION

Who doesn't want to wake up in a five-star-hotel-quality suite with an attached spa bathroom and a kitchenette that affords you coffee and pastries before facing the world?

Once you see the price tag, it won't just be the coffee keeping you up at night.

For a super-deluxe master suite addition -- which adds square footage and uses only top-dollar materials -- the average cost is about $232,062, according to the report.

That's 460 nights at a posh resort with enough left over to raid the minibar.

In years past, this project was "sort of a trend in vacation homes" that migrated to primary dwellings, Alfano says. Sellers can expect to recover about 52.7 percent at resale.

Your buyer can purchase a newer house with the same features as part of the original floor plan that "probably lays out better anyway," says Loren Keim, author of "How to Sell Your Home in Any Market."

So while the next buyer may appreciate your luxury accommodations (which could even tip their decision in your home's favor), chances are they won't want to pay the full tab for your remodel.

BATHROOM ADDITION

Unless you're a hermit who never entertains, you've probably wished for an extra bathroom now and then.

But bathroom additions require serious coin. For a moderately outfitted addition with synthetic stone or plastic laminate surfaces, figure parting with about $21,695, according to the Remodeling report. Go upscale, with finishes like premium marble or fine tile, and you can easily spend in the neighborhood of $40,710.

Either way, you get about the same return: 53 cents on the dollar. "In the buyer's mind, the additional bathroom isn't worth that additional $20,000 to $40,000," Keim says.

Investigate a less-expensive way to get the same result without flushing quite as much cash. While additions usually cost more, pros might be able to reconfigure your existing space to add a bathroom for less, Alfano says.

UPSCALE GARAGE ADDITION

Instead of cleaning out the garage, how much would you pay to have a new one built from scratch?

This time, it would have all the organizational built-ins, and a durable, easy-to-clean floor to ensure it would never be messy again. And windows for natural light.

Oh yeah, and you could store a couple of cars in there, too.

The price tag for a top-of-the-line detached two-car with all the trimmings is about $90,053, according to the report. You can expect to recover about 53.6 percent of that when you sell.

"This one is completely decked out on the inside," says Alfano. "It's a dream garage."

And that's likely some of the problem with recovering the value at resale. Says Keim, "You've got a very small target audience out there that wants an upscale garage."

Read more: http://www.bankrate.com/finance/real-estate/6-worst-home-fixes-for-the-money-1.aspx#ixzz2aeWw6FEH 

'Burgh ranks as top city for growth in 2012

U-Haul ranked our 'burgh as the Top City for Growth in 2013! If you know anyone thinking about making a move, we can help with their financing. Have them call our office at 1-800-898-9688!

PHOENIX (April 12, 2013) — U-Haul International, Inc., today released results of the annual

U-Haul National Migration Trend Report that reflects the nation’s top growth areas for families that moved during 2012. The U-Haul 2012 Top U.S. Growth Cities Report indicates that for cities with more than 5,000 families moving, Pittsburgh takes the No. 1 spot with the highest percentage of growth, at 9.04 percent.

“The report, reflective of growth patterns in the United States during 2012, was compiled based on nationwide trends in cities of all sizes and reflects communities with more than 5,000 families moving in or out of the area,” stated John “J.T.” Taylor, president, U-Haul International, Inc. “Growth cities were then determined by calculating the percentage of inbound moves vs. outbound moves for each area.”

The U-Haul 2012 Top U.S. Growth Cities Report was compiled from more than 1.6 million U-Haul one-way truck transactions occurring during a recent 12-month period.

The annual mileage of North American U-Haul rental trucks, trailers and tow dollies would move a family to the moon and back again more than 9.9 times per day, every day of the year and could also travel around the Earth more than 177 times per day, every day of the year.