Your House As Seen By:

Yourself….

And…
Your County’s Tax Assessor…

Check out this new property that I just posted on my Web site. It is at 25 Saddlebrook Rd. in Sherborn.

 A master suite addition returns an average of 60% of its cost, as long as you keep improvements in line with other homes in your neighborhood.

You can reduce the cost and potentially increase the return of a master suite addition by renovating existing space in your house, rather than building extra square footage.

Adding a master suite to your home is one of the most expensive improvements you can undertake. The private bed-and-bath combo for the masters of the house costs an average of $104,000 with midrange appointments and as much as $226,000 if you go with top-of-the-line fixtures and finishes, according to the 2009-2010 Cost vs. Value Report from Remodeling magazine. Of that, you can expect to recoup between 55% and 65% of the investment, based on national averages.

The highest rate of return on a master suite addition is out west; in Los Angeles, for example, a $125,000 job recoups more than $90,000, a 73% return. But more than region of the country, payback on a master suite depends on how it compares with other houses in your backyard. “If you’re in a neighborhood of empty-nesters with two-bedroom houses, you probably won’t recoup the investment,” says real estate salesperson and appraiser Everett (Vic) Night, of Chapel Hill, N.C. “But if nice master suites are common in similar houses in your neighborhood, you’re likely to get a good portion of your money back.”

A master suite usually involves building a ground-floor extension, which means spending a sizable chunk of the budget to have the site excavated and a foundation poured. If you can take advantage of existing space—such as building up over a garage, or converting an unfinished attic or basement—you can significantly reduce costs and increase potential return.

But given the size of the investment, turning a profit shouldn’t be your motivation for adding a master suite, or for doing any large home improvement. Do the work because you want to, and only if you plan on staying put for at least three to five years, so you get the chance to live in and enjoy the new space.

National average cost, 24 x16 ft. master suite with midrange appointments:

Job cost: $103,696
Resale value: $67,578
Cost recoup: 65.2%

National average cost, 32×20 ft. master suite with upscale appointments:

Job cost: $225,995
Resale value: $125,793
Cost recoup: 55.7%

Walsh Team member Evan Walsh was recently honored as being named the Social Media Consultant for the William Raveis Wellesley and new South Natick offices. William Raveis Real Estate is currently in the process of designing a Social Media Marketing campaign and Evan is responsible for spearheading the program in Wellesley and South Natick. Duties include educating all agents about the various Social Medias, like Facebook, Twitter, Linked-In, Youtube and blogs. Evan will also be helping all agents create business related profiles and will teach agents how to use them effectively for marketing Real Estate. “Our business, actually all business has changed dramatically over the past few years with the advent of Social Media. If you don’t get on board now, you’re going to miss it completely”, Walsh says and adds that, “Social Media offers us limitless potential and unparalleled market exposure for our clients”. Evan Walsh and William Raveis are at the forefront of this new medium and both are industry leaders.

If you would like to see how Social Media can help sell your home or property, contact Evan Walsh for a personalized marketing plan and Social Media consultation. evan@walshteam.com

Whether a first-time buyer or a longtime owner, you may be eligible for a homebuyer tax credit if you meet IRS guidelines.  

Do you qualify?

• You meet IRS income and homeownership rules.
• You sign a binding contract by April 30, 2010.
• You close on a home purchase by June 30, 2010.

If you receive a tax credit, it will come in the form of a reduced tax bill or an increased refund. Image: DreamPictures/Photodisc/Getty Images

Some first-time buyers and longtime owners may be able to claim a federal homebuyer tax credit on a principal residence bought in 2009 or early 2010. Eligibility depends on a number of factors, including income, homeownership status, and the exact purchase date of the home.

To be considered a first-time buyer by the IRS, you mustn’t have owned a home for the three years prior to your purchase. Longtime owners must’ve lived in their homes for five consecutive years during the past eight years. Revised rules apply to those who buy between Nov. 7, 2009, and April 30, 2010. Buyers who made purchases on or before Nov. 6, 2009, are covered under an older set of guidelines.

New rules for first-time homebuyers

First-time buyers who purchase a home between Nov. 7, 2009, and April 30, 2010, may be entitled to a federal tax credit worth 10% of the sale price or $8,000, whichever is lesser. Income restrictions apply. The tax credit for joint filers begins to phase out at a modified adjusted gross income of $225,000 ($125,000 for individual taxpayers). The credit disappears entirely at $245,000 for joint filers ($145,000 for individuals).

While first-time buyers must enter into a binding contract to purchase a principal residence by April 30, the closing can take place as late as June 30, 2010. The home can’t cost more than $800,000.

Qualifying purchases in 2009 can be claimed on your 2008 or 2009 return. File an amended return for 2008. Purchases in 2010 can be claimed on your 2009 or 2010 return. To get the credit for the 2009 tax year on a purchase that closes after April 15, 2010, either request an automatic filing extension or file an amended 2009 return.

The first-time homebuyer tax credit is “refundable,” according to Ken Burstiner, a CPA at Weiser LLP in New York City. That means you can earn it even if you owe no federal tax, the credit exceeds your total tax liability, or you have little income. Claim the credit on IRS Form 5405, which should take less than an hour to fill out. It’s a good idea to consult a tax adviser. H&R Block’s average fee to prepare a tax return is $187.

Old rules for first-time homebuyers

First-timers who bought a home between Jan. 1, 2009, and Nov. 6, 2009, may also be eligible for a federal tax credit worth up to $8,000. A tax credit reduces your tax bill or increases your refund dollar for dollar. In general, whether under the old rules or the new rules, you’ll be required to repay the full value of the credit to the IRS if you don’t maintain the home as your principal residence for three years.

First-time buyers subject to the old rules face tighter income limit. The phase-out kicks in for joint filers when modified adjusted gross income hits $150,000 ($75,000 for individual taxpayers). It disappears entirely at $170,000 for joint filers ($95,000 for individuals). Married filing separately taxpayers can claim only up to half of the $8,000 credit.

First-time buyers in 2008 were subject to a different tax-credit program. Homes purchased after April 8, 2008, and before Jan. 1, 2009, were eligible for a credit worth the lesser of $7,500 or 10% of the home’s purchase price. Income limits and phase-out ranges were the same as those for first-time buyers between Jan. 1, 2009, and Nov. 6, 2009.

The biggest difference between 2008 and 2009 was that the tax credit in 2008 really functioned as an interest-free loan that must be paid back over 15 years. The first of the annual installments should come due on the 2010 tax return filed in 2011. With few exceptions, if your home ceases to be your main residence during those 15 years, you have to pay back the outstanding amount with the subsequent tax return.

Tax credit for longtime homeowners

If you’re a longtime homeowner—meaning you’ve lived at your principal residence for five consecutive years out of the last eight—you may qualify for a homebuyer tax credit worth up to $6,500. You must purchase a new principal residence between Nov. 7, 2009, and April 30, 2010. Like the first-time homebuyer tax credit that applies to these dates, you can settle as late as June 30, 2010, as long as you have a binding contract by April 30.

The same $800,000 cap on the purchase price applies to longtime homeowners, as do the same income restrictions. The credit begins to phase out for joint filers at modified adjusted gross income of $225,000 ($125,000 for individuals), and disappears at $245,000 ($145,000 for individuals). Married couples filing separately are eligible for up to half of the $6,500 credit.

For both first-time and longtime buyers who want to claim the tax credit for a purchase made after Nov. 6, 2009, the IRS requires proof. Attach a copy of the settlement statement you received at closing to your return. You must be at least 18 years old.

Other restrictions and provisions

As long as they serve as principal residences, single-family homes, townhouses, co-ops, and condos are all eligible for a tax credit. Mobile homes may be eligible for the credit, even if the land itself is leased. Owning a vacation home or rental property doesn’t disqualify you as a first-time homebuyer, but you do have to make it clear such properties were never your principal residence.

You won’t be eligible for the tax credit if you’re buying from a close relative. For example, if your mother goes into a nursing home and you buy her house from her, you can’t claim the credit. Close relatives include parents, grandparents, children, grandchildren, your spouse, and your spouse’s family.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

Richard J. Koreto, a freelance writer, is the former editor of several professional financial magazines and the author of “Run It Like a Business,” a practice management book for financial planners. He and his wife own a pre-Civil War house in Rockland County, N.Y.

By: Richard Koreto

Published: November 18, 2009

What To Know

Evaluate the cost of purchasing, installing, and maintaining an outdoor spa to decide if it’s a worthwhile addition to your deck.

The safest spot for a spa is on the lower level of a deck. It should be able to support 100 lbs. per square foot. Image: ThermoSpas

Hot tubs and spas come in an array of shapes and sizes, and can be equipped with scores of accessories. Accordingly, they have a wide range of prices. Choosing the right spa depends on its intended use, how big your deck is, and what structural alterations will be required for your deck. In addition, you’ll need to know the cost of installation, day-to-day expenses, and how much you can expect to recoup on your investment should you sell your home.

Different types of spas and their costs

It started with that icon of laid-back living, the redwood hot tub. Before long, fiberglass versions with circulating jets appeared called “spas.” Today the terms “hot tub” and “spa” are used interchangeably, but because most units are jetted, spa is the term more commonly used. Spas range in size from two-person models costing about $2,000, to 20-foot-long swim spas costing $18,000 or more. In between are those most popular for decks: 4- to 8-person models costing from $2,500 to $10,000.

Choosing a spa can be challenging. You’ll need to select from a dazzling number of accessories, including cup holders, colored LED lights, iPod docks, stereo systems, pop-up TV screens, and even waterproof keyboards.

“The gadgetry is there to catch your eye while shopping,” cautions Erich Johanson, an experienced spa installer in Olympia, Wash. He recommends choosing established manufacturers and narrowing your choice from there. “Look at the national brands and find one you like,” he says. “Then chose a model that has the features you want.”

His top recommendation is for “full-foam” insulation—a high-density, closed-cell polyurethane foam that fills the cavity between the fiberglass tub shell and the outer cabinet and helps reduce heat loss. In addition, full-foam insulation helps reduce noise and adds stability to the entire unit.

Check installation costs as well. They’ll be dependent on the size of the spa and the ease of getting it where it needs to be. In some cases, limited access may require the use of a crane to lower the spa into place. For an 8-person spa, expect about $300 for delivery and setup.

Adding structural components to carry the weight

The safest—and most cost-effective—location for a spa is the lower level of a deck. A deck only a few steps above ground, if built to code, should be able to support 100 lbs per sq. ft.—a filled 8 x 8 spa at 6,000 lbs. works out to about 94 lbs per sq. ft., just within limits. Check your local codes for any restrictions governing the installation of a spa on a deck.

Even better is a reinforced concrete pad, a great option if you’re planning a new deck or intend to add on to an existing deck. A 4-inch slab will safely bear 115 lbs per sq. ft.

If you want the tub on a deck more than a couple of feet above ground or on an upper level of a deck, things get more complicated. You’ll need to hire a structural engineer to provide specs for a site-specific framing structure to support the weight. Expect to pay an engineer $300 to $500 for these services. The necessary framing for a typical backyard deck may cost only a few hundred dollars, but expect to pay much more if your deck is a high-flying structure perched on a slope.

Accessing power and water

Spas require a nearby source of electricity. Because water is involved, any electrical hookup for a spa must include ground-fault circuit interrupter (GFCI) protection. This nifty device shuts down the system within milliseconds if it detects the tiniest change in current flow caused by a short circuit. Some spas come with an extension cord with a GFCI built in that can be plugged into a 110-volt, 20-amp circuit.

Larger units require at least one dedicated 220-volt, 50-amp circuit. In addition, there must be an emergency shutoff within sight of the spa, but not closer than 5 feet or farther than 50 feet. A new circuit and shutoff will cost about $800. 

Water access is simple; spas fill with an outdoor hose. The spa then heats and circulates the water. Insulated tub covers limit evaporation, but the tub will need occasional topping off. When it’s time to empty the unit, all spas have built-in hose bibs so you can drain the water.

Safety

Getting in and out of a spa provides opportunities for mishaps. A handrail is a good idea for older—and younger—users. A cover with a lock is must if you have children.

If you plan to build your spa into the deck, it may seem best to drop it into the deck so that the rim of the tub sits on the decking. Unfortunately, this makes it easy for people to fall in or step on the cover, and also complicates getting into the tub. The ideal arrangement is to set the spa partially into the deck so the rim is 17 to 24 inches above the decking. That way, bathers can sit on the rim, swing their feet over, and enter the water.

Hot water feels great, but needs to be indulged with caution. The Association of Pool & Spa Professionals recommends keeping the water temperature between 100°F and 102°F, with 104°F as a maximum. A safe soaking duration is 15 minutes. To keep the spa free of bacteria, you must be clean it regularly and add sanitizing chemicals.

Anticipating the cost and value of a spa

It costs as little 50¢ a day to run a spa. That amount can vary according to the amount of use, your local energy costs, the quality of insulation in your spa, and the quality of the cover. Covers typically come with spas, but consider upgrading to a higher efficiency type. The additional cost is modest and the better-insulated covers are often lighter, making them easier to remove.

If you live in a region with a climate moderate enough for year-round use, a deck equipped with a spa should give you a slight edge in selling a home. John Tripp, an appraiser with Foundation Trust in San Jose, Calif., says that spas “normally are assets as long as they have been properly maintained and there is no evidence of leakage or deferred maintenance.”

In other areas of the country, don’t expect much of a return. “They don’t have the payback to meet the cost,” says Richard Koestner, an appraiser with Koestner, McGiven & Associates in Davenport, Iowa. “If they do add any value it would be in the upper price range. It could be detriment if they aren’t in the right market.”

People react differently to the prospect of purchasing a house that has a spa. Some buyers may ask that it be removed as a condition of sale. Others will hardly be able to wait for that first soothing soak.

Dave Toht has written or edited more than 60 books on home repair and remodeling, including titles for The Home Depot, Lowe’s, Better Homes & Gardens, Sunset, and Reader’s Digest. A former contractor, Dave was editor of Remodeling Ideas magazine and continues to contribute to numerous how-to publications.

By: Dave Toht

Published: November 25, 2009

Reduce your electricity bills by systematically purging your family room of wasteful energy practices.
The three biggest energy hogs in the family room are the plasma television, DVR/Tivo box, and digital cable box. Image: Steven Errico/Digital Vision/Getty Images

The fun—a video game console, TV, DVR, DVD, and stereo system—that your family room provides comes with a price. By reducing standby power, using rechargeable batteries in remotes, and replacing incandescent bulbs with compact fluorescents, you could save up to $130 a year in energy costs.

And if you’re in the market for a new TV, you can save even more energy by being flexible on the type you buy.

1. Reconsider that plasma TV. The three biggest energy hogs in the family room are the plasma television, DVR/Tivo box, and digital cable box, says the nonprofit American Council for an Energy Efficient Economy, which promotes energy efficiency to consumers and government policymakers.

A typical plasma TV (less than 40 inches) consumes 441 kilowatt hours of electricity per year, according to ACEEE. That translates into about $50 (based on 11.3 cents per kilowatt hour). Next up are TiVo devices at $41 annually, followed by digital cable boxes at $27. Both devices are always fully on because they constantly receive and download data.

Opting for an LCD (liquid crystal display) TV will cost about $8 to operate annually—for an annual savings of about $42 over the plasma. Of course, weigh your decision against the cost of a new TV.

2. Reduce standby power. Vampire power—the energy that’s wasted by electronic devices that are plugged in, but not in use—represents about $100 per year in the average household’s electricity costs, says Energy Star. Assuming the family room represents about 15% of your electricity bill, you could save about $15 per year with smart standby practices.

Unplug rarely used electronics (like that karaoke machine) altogether and cluster other appliances, even adapters for cell phones and digital cameras, onto power strips ($3-$12 for a six-outlet strip). Then you can fully turn off all attached electronics with one switch.

Unfortunately, some family room electronics, such as set-top boxes and downloading devices like TiVo, can’t be turned off, because that would disrupt the digital data-gathering you’ve programmed them to do. But with a so-called smart power strip (about $20 to $40 through online retailers), you can completely turn off your TV while leaving the always-on DVR plugged in.

3. Opt for Energy Star-rated electronics. They’re anywhere from 6% (audio products) to 75% (DVD players) more efficient than non-rated electronics. Take Energy Star-rated television sets. They use about one-third less energy than their nonrated counterparts.

If you can’t live without plasma, consider an Energy Star model for which you’ll pay $18 less per year in operating costs than for a nonrated one. If you use an Energy Star-rated digital cable box (ask your provider if any are available for no charge), you could pay 30% less for energy—an annual savings of about $8.50. Energy Star hasn’t yet published data on swapping out a DVR or Tivo device.

4. Invest in rechargeable batteries. No, they won’t help you save on your electric bill. But you’ll save on the cost of batteries for your video game system and other entertainment remotes, according to PJ Stafford, founder of Green Irene, an eco-consulting company that provides energy and environmental makeovers to homeowners. You’ll help the environment, too. For every rechargeable battery you buy, you prevent at least 500 single-use batteries from entering the waste stream, Stafford says.

Consider a game system charger station, which runs about $25, or outfit your media room with 10 rechargeable batteries and two chargers for $55 to $65. (Rechargeable AA and AAA batteries cost $3 to 3.50 apiece, versus 75 cents to $1 for disposables; a charger costs $25 to $30.) That investment in rechargeable batteries and chargers, in lieu of 500 batteries over four years, adds up to about $310 to $445 in savings. Buying a charging system for your video game system eliminates the need to buy batteries for the controllers.

Call your local trash collection service to find out which batteries can be recycled or taken to a transfer station versus being thrown away. If you’re doing a major sweep-out of old batteries and appliances, consider Big Green Box, which lets you send your devices and batteries to a sustainable processing facility. Recycle old rechargeable batteries for free via programs like Call 2 Recycle.

5. Replace bulbs with compact fluorescents. By replacing one 60-watt incandescent bulb with the equivalent compact fluorescent in a family room where lights are on for four hours per day, you could save $7 per year. CFLs cost between $2 and $15.

Jane Hodges has written about real estate for publications including The Wall Street Journal, MSNBC.com, and The Seattle Times. In 2007 she won a Bivins Fellowship from the National Association of Real Estate Editors to pursue a book on women and real estate. Her work has also appeared in The New York Times, CBS’s BNET, and Fortune. She lives in Seattle, in a 1966 raised rancher with an excellent retro granite fireplace. Latest home project: Remodeling a basement bathroom.

By: Jane Hodges

Published: September 23, 2009

To eliminate mold, seek a credentialed professional who understands the inspection, sampling, and clean-up process.

A mold remediation will typically take a few days, depending on how extensive the mold growth is. Image: QuicDry

If you’ve found mold growing in your home, what you should do next depends on where you find it and how much there is. But eliminate mold promptly, because delay can mean an expensive repair that may not be covered by your homeowners insurance.

Professional mold elimination may take a few days and costs roughly $500 to $6,000, but can easily reach five figures if the problem is severe. If drywall, studs, or other building materials must be replaced after cleanup, you’ll need to hire a building contractor for that service as well.

“I had a case of roof damage where water infiltrated the kitchen, and mold damaged the kitchen, the foyer, the bedroom, and the family room,” says Jason Yost, owner of Solutions Indoor Environmental Consulting in Terre Haute, Ind. “Because the home wasn’t maintained properly and was cluttered, the mold amplified quickly. The total bill came to $60,000 to remediate and reconstruct the house.”

Mold and insurance

Mold remediation isn’t necessarily covered by homeowners insurance, which typically pays only if the problem results from a sudden emergency already covered on your policy, such as a burst pipe. Insurance usually doesn’t pay if the problem results from deferred maintenance or floodwaters (unless you have flood insurance).

Everyday mold growth

When mold is growing on household surfaces, both its spores (reproductive structures) and any toxins it produces can become airborne. This can aggravate asthma and allergies and sometimes contribute to more serious diseases, especially in children, the elderly, and those with weak immune systems. Mold also ruins porous materials such as drywall and carpeting and can damage woodwork, although serious damage to structural elements is rare.

Expect to find mold occasionally in wet areas such as kitchens and bathrooms. Confined to washable surfaces, it’s fine as long as you clean it promptly with soap and water. Disinfecting the area after cleaning with a 1:9 bleach-to-water solution can also help.

If you find small amounts of mold growing in places that shouldn’t be wet—such as floor grilles—address your moisture problem so it doesn’t return after you clean it up.

Calling for help

If you find mold growing on drywall, trim, or unfinished wood surfaces (studs, joists, subfloors), especially if the affected area exceeds 10 square feet, it’s time to seek a professional, scientific opinion. Your best bet is an independent consultant with credentials in mold investigation.

Less-than-ideal choices would be a home inspector, who likely doesn’t have mold training, or a mold remediation company, which can increase its profits by recommending cleanup procedures that aren’t necessary. On the flip side, you want someone who isn’t motivated to minimize costs to keep insurance companies happy.

The mold industry is largely unregulated, says licensed professional engineer and certified industrial hygienist Wane A. Baker of Michaels Engineering in La Crosse, Wis., because the word “mold” encompasses thousands of different types of fungi, whose health effects are highly individual and still under study. This lack of government oversight means almost anyone can hang out a shingle.

Look for the right credentials

Reputable mold remediation companies will hire a third-party inspector to determine the scope of work and roll that into the project cost. Also consider hiring our own inspector to  ensure you have an advocate in the cleanup process.

A good mold inspection professional:

• Has at least an undergraduate degree in a science or engineering field
• Will provide a customized written report as part of his fee that includes the lab results of any air or surface samples taken
• Doesn’t hype one species of mold as being significantly more dangerous than another
• Doesn’t sell mold-related products
• Has completed industry-approved coursework in mold investigation, preferably from the American Board of Industrial Hygiene or the American Council for Accredited Certification (formerly the American Indoor Air Quality Council). He or she should also bear respected industry credentials, such as PE, CIH, CIEC, and CMRS.

What to expect from inspection and cleanup

Expect to spend $250 to $500 for a site visit from a qualified inspector that takes 20 minutes to two hours, depending on the scope of the problem, and a detailed report of findings and recommendations. Individual air samples, if necessary, may or may not be included in the price (ask your inspector ahead of the visit) and cost anywhere from $18 to $225 apiece, depending on the laboratory used to process results.

If mold growth is visible, air or surface sampling may not be necessary; it depends on the situation. It’s not important to identify the actual mold species unless there are specific legal or medical reasons to do so—say, if you have an allergy to a certain species. If mold growth is suspected but not visible—for example, if it’s concealed within walls—sampling may help confirm its presence.

Sampling is also typically used after the cleanup process to verify whether the job was successful. Ask inspectors why they’re performing any sampling that occurs on the initial visit; they should be able to articulate clearly whatever hypothesis they’re trying to confirm.

If the cleanup is simple enough to perform yourself, a mold inspector can advise you on procedures, protective equipment, and tools. The inspector should also be able to pinpoint the moisture issue that led to the mold problem so that you can correct it.

If you need a remediation pro

If a professional remediation is necessary, the inspector can recommend a company or you can choose one yourself. The cleanup process generally takes a few days, depending on the extent of mold growth, and may involve cleaning and disinfection, removal of drywall, professional cleaning of personal belongings, and HEPA (high-efficiency particulate air) filtration. The severity of the problem determines whether you’ll be able to remain in your home during the project.

“I’d like to stress that a mold remediation isn’t about kill, kill, kill,” Baker says. “Even dead mold can still be allergenic. Remediation is really about the physical removal of mold from water-damaged materials.” The remediation company should follow the work plan designed by your mold inspector, who will return for follow-up sampling to ensure the job was successful. Once the cleanup is approved, you can hire a building contractor to replace any drywall or other materials that were removed.

Home testing kits

Don’t bother with hardware store petri-dish kits, which claim to help you identify whether you have mold in your indoor air. “These kits are completely ineffective,” Baker says. The kits might grow a bit of mold for you—because mold spores are always present in indoor air—but they can’t guarantee a statistically significant sample of air, confirm the presence of dead mold spores (which also cause health symptoms), or determine baseline levels of mold in your home in order to compare results.

The key to dealing with mold quickly and effectively is finding a qualified professional inspector whom you trust.

Karin Beuerlein has covered home improvement and green living topics extensively for HGTV.com, FineLiving.com, and FrontDoor.com. In more than a decade of freelancing, she’s also written for dozens of national and regional publications, including Better Homes & Gardens and the Chicago Tribune. She and her husband started married life by remodeling the house they were living in. They still have both the marriage and the house, no small feat.

By: Karin Beuerlein

Published: November 18, 2009