What is HOA? What You Need to Know About Rules and Regulations

Lobbying for change in your homeowners association’s rules requires procedure, compromise, and perhaps joining the board.

If you live in a newer suburban community or planned unit development, you're probably a member of a homeowners association. More than 74.1 million Americans live in homeowners associations, condominium communities, cooperatives, and other planned communities, according to Community Associations Institute. It’s also a good bet that you hadn't given your HOA much thought until you had a problem.

Since HOAs make and enforce the community rules, it’s smart to understand what you can do if you can’t or don’t want to follow them.

How an HOA Works

Each HOA, a volunteer group of neighbors who manage common areas and community property, creates its own covenants, conditions, and restrictions (CC&Rs). These CC&Rs cover subjects such as:

• Resident behavior (no glass containers around the pool)

• Architecture (no fences higher than eight feet)

• Common responsibilities (fee schedules and fines for non-compliance)

The mean monthly dues for a homeowners association is $191, according to the U.S. Census Bureau American Housing Survey 2021. And there’s value in the fee.

Disputes With the Board Can Escalate

Some boards can impose what some homeowners believe are invasive, silly, or even inconsistent rules. Yahoo! News reported a situation in which a homeowner submitted a plan for four window when the other homeowners had eight windows. The board rejected the first plan she submitted, but approved the second one, which was for four windows.

After the homeowner installed the four windows, a dispute started between the homeowner and the board about who would pay to switch the number of windows back to eight. The homeowners ended up being fined thousands of dollars, and the board put a lien on her house, and threatened to foreclose. The homeowner then sued the board and won. But the board plans to appeal.

Steps to Take When You Don't Like the Rules

Even if you disagree with the rules, keep paying your dues. HOAs have broad legal powers to collect fines and fees and regulate activities. If you don’t respond to letters from the board, property manager, or a collection agency, the HOA can and will turn to small claims court or file a lien against your property.  

You can handle some issues with a phone call. For example, adding recycling to the garbage collection route is a budget, not a rules, issue. Call the board member who oversees trash collection to find out if there’s leeway in the budget. If you want to do something that’s against the rules — like flying the American flag in your yard — start by:

• Making a written request for variance, using the appropriate HOA form in your CC&R documents. A variance gives you permission to be the exception to the rule. Submit your request to the board and property management company. 

• Seeking a compromise: For example, you could request permission to fly the American flag only on national holidays.

Don’t Expect a Quick Solution

Some HOA boards meet as infrequently as twice a year. If the board decides the issue is worth pursuing, it may require a community vote. If it passes a majority, the board will adopt it. Board members also may consult the HOA attorney to see if there’s a legal liability if they rule against you.

If you don’t get a timely response, request a hearing and resubmit your request for variance with as much support for your cause as possible. 

If the board rules against you without a community vote, you can appeal the ruling with a petition signed by a majority of other homeowners.

Fine Reality

If you fly your flag without permission, however, expect to be fined. Fines can range depending on the issue. Your CC&Rs will indicate the fine schedule — per day, per incident, etc. Interest for nonpayment can accrue, and the HOA can sue you in small claims court. 

If you think the ruling or the fines are unjust, the last resort is to hire an attorney and sue the HOA.

Become the Rule-Maker

If you don’t like the rules, the best way to change them is to become part of the process.  

Know your CC&Rs, annual budget, and employee contracts — Do you see areas where expenses can be cut? Are service providers doing their jobs? 

Volunteer for a committee or task — If the board needs to enforce parking rules, for instance, you can volunteer to gather license plate numbers of residents’ vehicles. In addition, put your professional expertise to work: Assist the board with data entry, accounting, or website design. 

Stand for election to the board — When a position becomes open, the board notifies the members, and you can put your name forward. New board members are elected at the annual meeting by member majority vote. Many boards are three to nine members large, with terms of one to two years.

Involvement Drawbacks

As a board member, be prepared to spend two to four hours a month:

• Reviewing property management reports

• Monitoring budgets

• Talking to other board members and residents

Most boards meet quarterly; small boards meet only twice a year for a couple of hours.  

Accept that you might become less popular if homeowners don’t like your decisions. In the worst case, you could be sued, along with the rest of the association.

Involvement Benefits

There are rewards. You’ll feel more in control of your community’s fate. You may find that some rules you didn’t support have merit after all. But most of all, you’ll know you’re doing all you can to protect your quality of life and your home’s value.

For the original article by BLANCHE EVANS visit Houselogic.com.

Replacing Your Deck? Here's How Much You Should Expect to Pay

Wondering whether to repair or replace your deck? Learn about costs, DIY vs. pro jobs, and money-saving tips.

Decks allow for outdoor dining, relaxation, and entertainment. However, they also deteriorate over time due to wear and tear, so understanding the average costs of deck repair and replacement is crucial for homeowners.

The average cost to repair a deck is about $2,000, but this figure varies depending on the extent of the damage and the materials needed. Standard repair tasks include replacing damaged boards, reinforcing structural supports, and refinishing the surface. The cost to replace a deck is typically around $15,000. However, this price varies depending on the deck size, materials, labor, permits, inspection, scope of work, and geographical location.

Average Deck Repair Costs

Deck life spans typically range from 10 to 30 years, and the cost and quality of deck materials often correlate with the frequency of repairs. The average cost ranges from a few hundred to several thousand dollars, depending on the scope of work and the geographic location of the home.

Minor repairs—such as replacing broken nails, boards, or loose railings—might cost between $100 and $4,000. More extensive maintenance involving structural issues or replacing a significant portion of the deck escalates the cost. This wide range of potential expenses underscores the importance of understanding the average deck repair costs before committing to a contractor.

Average Deck Replacement Costs

“The average price for a new, professionally built deck is around $20,000-$25,000, but you can get a smaller wood deck for as low as $10,000, and some maintenance-free options such as composite or PVC decking could cost as much as $60,000 or more,” says Diego Machado, president at Charlotte Deck Builders. While the initial cost may seem high, investing in a new deck brings long-term benefits, such as a competitive advantage when it’s time to sell and an enhanced outdoor living space if you decide to stay for the long term.

Factors That Affect Deck Replacement Costs

Machado says that some factors influencing the deck replacement costs are, “First, the size. The bigger the deck, the more expensive it will be. The second is the type of material used. A 100 percent wood deck is cheaper, but it requires some maintenance like repainting and sometimes replacement,” he says.

While the geographical location of your house affects the labor and material costs, the physical location of the deck also impacts the cost. If it is difficult for laborers to work under specific temperature, time, or space limitations, they may pass on the cost to you. Additionally, unique lighting and railing features also increase prices. Hiring a professional increases the final price, but DIYing increases the amount of time and the risk burden for the homeowner.

DIY vs. Hiring a Professional

Hiring a professional can significantly affect the overall cost of deck repair or replacement. “A professionally built deck usually costs three times more than the materials for a DIY deck, but it’s really important to know your local building codes. Simple structural mistakes, such as joists and beam sizes, post-to-beam connections, or even the way you use screws and nails, are fundamental to the durability and integrity of the deck. Ignored mistakes could put your family at risk or cost even more to rebuild,” notes Machado.

So, while DIY repairs may seem cost-effective initially, they require time, skills, and tools. Replacing a few boards or applying fresh deck stain is manageable for DIY enthusiasts. However, for long-term safety, complex structural repairs or complete deck replacements are best left to professionals. Hiring a professional contractor can ensure the job has the right permits and is done correctly, albeit at a higher cost.

The 9 Best Deck Stains of 2024 to Protect and Revive Your Deck

Tips and Strategies for Saving on Deck Replacement Costs

Several strategies can help you save money on a deck replacement.

• Consider cost-effective materials, like pressure-treated lumber or composite decking, over expensive premium hardwoods or imported materials.

• Reuse existing deck components. Framing or railing can sometimes be salvaged and reused to reduce material costs.

• Shop around. “If you intend to replace your deck fully. I would also advise that you shop around for companies who can provide this service. In doing this, you may be able to find a business who can source materials for cheaper or charge less for their time and labor,” advises Mike Falahee, president of Marygrove Awning Co.

• Obtain multiple quotes from different contractors to negotiate the best value for price. Falahee adds, “Keep an eye on the cost difference between certain materials. You should also maintain your deck yourself to prevent damage.”

• Keep the deck size small. Another cost-saving tip is to keep your deck size small. It may be hard to define precisely how much space you need, but consider the deck’s purpose. If it will be primarily used for lounging and grilling, you might not need as much space as if you plan to host regular outdoor family meals. Take time to consider reasonable sizes for your desired deck experiences and research different materials best suited for the job.

Tips for Prolonging the Life of Your Deck

Quarterly maintenance prevents minor issues from becoming major headaches. Promptly address any early warning signs of deterioration or weather damage to extend the life span of your deck and minimize repair expenses.

Additionally, avoid excessive weight loads, keep the deck surface clear of debris, and don’t lean heavy items on the support beams. Watch out for wood-eating bugs and any wobbling. Both jeopardize the structural integrity of your deck.

Do I Need to Replace My Deck?

If your deck is over two decades old or is in visibly poor shape, the best option might be to replace it rather than undertake cosmetic repairs. Signs that it’s time to replace your deck include significant termite damage, rotting, warping wood, mold, cracked or damaged support posts, loose railings, loose or bowing boards, and wobbly stairs.

Consult with a decking professional to help your family safely enjoy your deck for many years.

For the original article visit Better Homes and Gardens

Real Estate Is Still the Best Long-Term Investment

Some Highlights

• According to a recent poll from Gallup, real estate has been voted the best long-term investment for twelve straight years.

• That’s because a home is so much more just than a roof over your head. It’s also an asset that typically grows in value over time. 

• If you’ve been debating if it makes more sense to rent or buy, connect with a real estate agent to talk about why homeownership can be a better bet in the long run. 

For the original article visit KeepingCurrentMatters.com

9 Things to Consider Before Installing Solar Panels

Solar experts say these are the key factors to consider before committing to solar panels.

Solar panels have become increasingly popular among homeowners seeking ways to reduce their carbon footprint and save on energy bills. While solar panels can provide significant long-term savings and environmental benefits, they can also come with high upfront installation costs. They're not practical for every home or homeowner.

To know if solar panels are right for you, consider the weather conditions in your area, the slope of your roof, average monthly energy usage, and the length of time you plan to live in your home. Before installation can happen, you’ll need to understand better all possible financing options, as well the policies in place at your local utility company.

The 9 Best Solar Generators of 2024

How to Decide if Solar Panels Are Right for Your Home

Solar experts share the most important factors in deciding if solar panels are right for you.

Amount of Sunlight

First things first, if your home is in an area that doesn’t get much sun or has long parts of the year when it is overcast or dark, solar panels might not be right for you. Alan Duncan, founder of Solar Panels Network USA, says homeowners must evaluate their energy needs and the amount of sunlight their property receives. Does it tend to be cloudy or sunny where you live? Knowing the amount of sunlight your home gets during peak hours will aid in determining whether solar power would be a good energy solution for your household. If you’re not sure where to start, try free resources like Energy Sage and the free PDF e-book, To Catch the Sun, by Lonny Grafman and Joshua M. Pearce, Ph.D.

Roof Size and Slope

A roof’s orientation and condition determine whether it can support solar panels. Duncan says the direction and angle of the roof impacts solar panel efficiency. “Ideally, your roof should face south and have an angle between 30 and 45 degrees to maximize the amount of sunlight your panels receive,” he says. If your home has a flat roof, you may still be able to install solar panels. An expert installer will know how best to mount them to capture the most sunlight possible. 

Neil Gallagher, co-founder of BrighterWay Solar, reminds homeowners to ensure there is minimal shade or tree cover over their solar panels. If there is, be sure to budget for regular landscaping to have leaves and trees removed or trimmed. 

Roof Age and Condition

Solar panels can be installed on most roof types, including asphalt shingles, metal roofs, and flat roofs. But Duncan notes that a roof’s condition and age can impact the installation process and solar panel efficiency. He recommends assessing whether your roof is nearing expiration or in need of repairs. Also, Gallagher adds that it’s a good idea to have extra tiles on hand for tiled roofs, in case any get cracked during the installation process.

Current Energy Usage

Duncan also notes that having an understanding of energy usage patterns and how much your current energy bills are will help determine how much solar energy you need to generate. A reputable installer will estimate the cost per unit power ($/W). Dr. Pearce says to verify installer’s numbers against the free U.S. government site Pvwatts, and see if your solar panel system can produce enough energy to fully replace current household usage from the grid.

Budget and Financing

“While solar panels can provide significant cost savings in the long term,” Duncan says, “the initial investment can be expensive.” It is important to consider your installation budget to decide if the future utility savings is worth the swap. There are many financing options, such as solar leases and power purchase agreements. Most panel systems come with long-term warranties and limited maintenance, but you’ll need to consider any additional costs associated with homeowner’s insurance and roof care. 

For homeowners who only plan to live in their homes for just a few years before selling, installing solar panels may not be a good investment. However, if you’re living in your forever home and expect to have decades to see the savings accrue, solar panels tend to be a good long-term investment.

Incentives & Tax Credit Programs

There are many programs to incentivize homeowners to switch to solar energy. The Office of Energy Efficiency & Renewable Energy updated its guide for Federal Tax Credits for 2023. There are also state programs for which many homeowners may be eligible. Many of these incentives are rebate programs that reimburse after you’ve already paid the upfront costs. So, it’s important to be able to absorb the initial costs and ensure you prepare all the documentation and process steps needed to get the maximum in rebates and incentives owed.

Available Providers

Gallagher encourages homeowners to research various installation companies and sales companies, which provide two separate services. “The sales organization is its own entity, and it will sell a product to the homeowner and turn it over to an installer that they have partnered with,” he says. It’s important to research both companies thoroughly to find the right combo for you. Also, not all solar companies provide services in every part of the state, so if you're looking for a solar provider in Florida, for example, check the company’s website for details.

City or HOA Approval

Before installing solar panels, you will likely need to obtain permits and approvals from local authorities. Duncan says that many cities and homeowner associations (HOAs) have specific guidelines for solar panel installation. Failure to obtain approval prior to the installation company beginning the work can result in fines or legal action. “To obtain approval, you will need to submit a permit application and detailed plans outlining the design and location of your solar panel system,” he says. Local solar installers usually can assist homeowners with this process to ensure the installation complies with all relevant regulations and guidelines, but it is the homeowner’s responsibility to confirm and comply with any state, county, and local regulations that may apply. 

Storing Excess Energy

Each utility company has its own rules about net metering and selling excess energy back to the grid. In many cases, when a household uses less energy than the solar panels harvest, the utility grid is willing to put those megawatts to good use and provide credits for the excess. The amount will vary depending on the utility company and region. Otherwise, you can store excess energy on batteries to use later when there’s low sunlight or high energy demand. Have a plan in place to ensure long-term sustainability.

For the original article By Nafeesah Allen on April 17, 2023 visit Better Homes and Gardens

Thinking of Selling? You Want an Agent with These Skills

Selling your house is a big decision. Your home is one of the biggest investments you’ve probably ever made, and it’s a place where you’ve created countless memories. That combo means there’s going to be a lot of emotions involved. You want someone who understands your perspective, knows what it feels like, and is an expert at helping homeowners just like you navigate the process of selling a home.

That’s where a good listing agent, also known as a seller’s agent, comes in. Here are just a few skills you’ll want your agent to have.

The Ability To Turn Something Complex into Something Simple

Some agents are going to use big, fancy real estate terms to try and impress you. But you shouldn’t have to know all the industry jargon in order to understand what they’re saying. If anything, it’s an agent’s job to keep it simple, so you don’t get overwhelmed or confused.

A great agent is going to be someone who is very good at explaining what’s happening in the housing market in a way that’s easy to understand. But they’ll take it one step further than that. They’ll explain what’s going on and, specifically, what that means for you. That way you’re always in the loop and it’s a lot easier to feel confident when you’re making a big decision. As Business Insider explains:

“Maybe you have a better rapport with one of the agents you’re considering, or you just feel like they’re easier to approach. You’re going to be working closely with this person, so it’s important to choose an agent you’re comfortable with.”

A Data-Based Approach on How To Price Your House

While it may be tempting to pick the agent who suggests the highest asking price for your house, that strategy may cost you. It’s easy to get caught up in the excitement when you see a bigger number, but overpricing your house can have consequences. It could mean your house will sit on the market longer because the higher price is actually turning away buyers.

Instead, partner with an agent who’s going to have an open conversation about how they recommend you should price your house. They won’t throw out a number just to win your listing. A great agent will back up their number with solid data, explain their pricing strategy, and make sure you’re both on the same page. As NerdWallet explains:

“An agent who recommends the highest price isn’t always the best choice. Choose an agent who backs up the recommendation with market knowledge.”

A Fair, but Objective Negotiator

The home-selling process can be emotional, especially if you’ve been in your house for a long time. But that sentimental tie can make it harder to be objective during negotiations. That’s where a trusted professional can really make a difference.

They’re skilled negotiators who know how to stay calm under pressure. You can count on them to handle the back-and-forth and have your best interests at heart throughout the process. Not to mention, they’ll be able to rely on their market expertise and what they’re seeing work in other transactions to offer the best advice possible. As Rocket Mortgage explains:

“Whether this is your first or third time selling a house, listing agents work to help make the home selling process smoother and less stressful. These real estate professionals know the ins and outs of the industry and can help you secure the best deal.”

Bottom Line

Whether you're a first-time seller or you’ve been through this before, a great listing agent is the key to your success. Connect with a real estate professional so you have a skilled local expert by your side to guide you through every step of the process.

For the original article visit Keeping Current Matters.

Tips for Younger Homebuyers: How To Make Your Dream a Reality

If you’re a member of a younger generation, like Gen Z, you may be asking the question: will I ever be able to buy a home? And chances are, you’re worried that’s not going to be in the cards with inflation, rising home prices, mortgage rates, and more seemingly stacked against you.

While there’s no arguing this housing market is challenging for first-time homebuyers, it is still achievable, especially if you have professionals on your side.

Here are some helpful tips you may get from a pro.

1. Explore Your Options for a Down Payment

If a down payment is your #1 hurdle, you may have options to give your savings a boost. There are over 2,000 down payment assistance programs designed to make homeownership more achievable. And, that’s not the only place you may be able to get a helping hand. While it may not be an option for everyone, 49% of Gen Z homebuyers got money from loved ones that they used toward a down payment, according to LendingTree.

And chances are you won’t need to put 20% down (unless specified by your loan type or lender). So be sure to work with a trusted mortgage professional to explore your options, find out how much you’ll really need, and learn about any guidelines on getting a gift from loved ones.

2. Live with Loved Ones To Boost Your Savings

Another thing a number of Gen Z buyers are doing is ditching their rental and moving back in with friends or family. This can help cut down your housing costs so you can build your savings a whole lot faster. As Bankrate explains:

“. . . many have opted to stop renting and live with family in order to boost their savings. Thirty percent of Gen Z homebuyers move directly from their family member’s home to a home of their own, according to NAR.”

3. Cast a Broad Net for Your Search

When you’ve saved up enough, here’s how a pro will help you approach your search. Since the supply of homes for sale is still low and affordability is tight, they’ll give you strategies and avenues you may not have considered to open up your pool of options.

For example, it’s usually more affordable if you consider a rural or suburban area versus an urban one. So, while the city may be livelier and more energetic, the cost of living may be reason enough to look at something further out. And if you consider smaller homes and condos or townhouses, you’ll give yourself even more ways to break into the market. As Colby Stout, Research Analyst at Bright MLS, explains:

“Being flexible on the types of home (e.g., a condo or townhome versus a single-family home) and exploring more affordable neighborhoods is important for first-time buyers.”

4. Take a Close Look at Your Wants and Needs

And lastly, an agent can help you really think about your must-have’s and nice-to-have’s. Remember, your first home doesn’t have to be your forever home. You just need to get your foot in the door to start building equity. If you want to buy, you may find making some compromises is worth it. As Chase says:

“An open-minded approach to house-hunting may be one way for Gen Z homebuyers to maintain some edge. This could mean buying in areas that are less expensive. Differentiating needs vs. wants may help in this area as well.”

An agent will help you prioritize your list of home features and find houses that can deliver on the top ones. And they’ll be able to explain how equity can benefit you in the long run and make it possible to move into that dream home down the line.

Bottom Line

Real estate professionals have expertise on what’s working for other buyers like you. Lean on them for tips and advice on ways you can get ready to buy. As Directors Mortgage says, with that support you can make it happen:

“The path to homeownership may not be a straightforward one for Gen Z, but it’s undoubtedly within reach. By adopting the right strategies, like exploring down payment assistance programs and sharing living costs with relatives, you can bring your dream of owning a home closer to reality.”

For the original article, visit Keeping Current Matters.

The Perks of Buying over Renting

Thinking about buying a home? While today’s mortgage rates might seem a bit intimidating, here are two solid reasons why, if you’re ready and able, it could still be a smart move to get your own place.

1. Home Values Typically Go Up Over Time

There’s been some confusion over the past year or so about which way home prices are headed. Make no mistake, nationally they’re still going up. In fact, over the long-term, home prices almost always go up (see graph below):

Using data from the Federal Reserve (the Fed), you can see the overall trend is home prices have climbed steadily for the past 60 years. There was an exception during the 2008 housing crash when prices didn’t follow the normal pattern, but generally, home values kept rising.

This is a big reason why buying a home can be better than renting. As prices go up and you pay down your mortgage, you build equity. Over time, this growing equity can really increase your net worth. The Urban Institute says:

“Homeownership is critical for wealth building and financial stability.”

2. Rent Keeps Rising in the Long Run

Here’s another reason you may want to think about buying a home instead of renting – rent just keeps going up over the years. Sure, it might be cheaper to rent right now in some areas, but every time you renew your lease or sign a new one, you’re likely to feel the squeeze of your rent getting higher. According to data from iProperty Management, rent has been going up pretty consistently for the last 60 years, too (see graph below):

So how do you escape the cycle of rising rents? Buying a home with a fixed-rate mortgage helps you stabilize your housing costs and say goodbye to those annoying rent increases. That kind of stability is a big deal.

Your housing payments are like an investment, and you’ve got a decision to make. Do you want to invest in yourself or keep paying your landlord?

When you own your home, you’re investing in your own future. And even when renting is cheaper, that money you pay every month is gone for good.

As Dr. Jessica Lautz, Deputy Chief Economist and VP of Research at the National Association of Realtors (NAR), says:

“If a homebuyer is financially stable, able to manage monthly mortgage costs and can handle the associated household maintenance expenses, then it makes sense to purchase a home.”

Bottom Line

If you're tired of your rent going up and want to explore the many benefits of homeownership, talk to a local real estate agent to explore your options.

For the original article visit Keeping Current Matters.

Is a Multi-Generational Home Right for You?

Ever thought about living in the same house with your grandparents, parents, or other loved ones? You’re not alone. A lot of people are choosing to buy multi-generational homes where everyone can live together. Let’s check out why they think it’s a good idea to see if it might be a good fit for you, too.

Why People Are Choosing Multi-Generational Living

According to the National Association of Realtors (NAR), here are just a few key reasons buyers opted for multi-generational homes over the past year (see graph below):

 Two of the top reasons had to do with aging parents. 27% of buyers chose multi-generational homes so they could take care of their parents more easily. And 19% did it to spend more time with them. A lot of older adults want to age in place, and living in a home with loved ones can help them do just that. If your parents are hoping to do the same, but need a bit of help, a multi-generational home may be worth considering.

But buying a multi-generational home isn’t just about being close or taking care of the people you love—it can save you money, too. 22% of buyers say they picked a multi-generational home to cut down on costs, and 11% needed a bigger house multiple incomes could afford together.

Sharing costs like the mortgage and utilities can make owning a home more affordable. This is especially helpful for first-time homebuyers who might find it challenging to buy a place on their own in today’s market.

As Axios explains:

“Financial concerns and caregiving needs are two of the major reasons people live with their parents (and parents’ parents).”

How an Agent Is Key in Finding the Right Home for You

Looking for the perfect multi-generational home is a bit trickier than finding a regular house. You’ve got more people, which means more opinions and needs to think about. It’s kind of like putting together a puzzle where all the pieces need to fit perfectly.

If you’re into the idea of living with loved ones and want all the benefits that come with it, team up with a local real estate agent who can help you out.

Bottom Line

Whether you're looking to save money or want to take care of your loved ones, buying a multi-generational home might be a good idea for you. If you want to find out more, talk to a local real estate agent.

For the original article visit Keeping Current Matters.

How to Qualify for Energy Efficiency Tax Credits

Charge up your tax savings by getting money back — and savings on utility bills.

If inflation has an upside, it may be energy improvement tax incentives. The Inflation Reduction Act of 2022 offers tax credits to homeowners who make specified home energy efficiency improvements.

It can be costly these days for homeowners to pay high utility bills while maintaining and improving their homes. You can help offset those costs by using new home energy efficient tax credits that go far beyond similar tax credits of the past. While you reduce energy usage, these tax credits could charge up your savings.

“There have been a number of tax incentives for energy in the past decades, and they’ve been very helpful,” says Evan Liddiard, CPA, director, federal taxation, federal policy and industry relations with the National Association of REALTORS® in Washington, D.C. “But these new ones leave them in the dust because there are more incentives and more money on the table. Earlier laws had lifetime limits. Once a taxpayer had credits up to that limit, they couldn’t claim more. But these new rules have no lifetime limits in some of the categories. However, there are some year-to-year limits.”

Two Types of Tax Credits: How They're Different

The tax credits are divided into two types: the Energy Efficient Home Improvement Credit and the Residential Clean Energy Credit, says Courtney Klosterman, home insights expert at Hippo Home Insurance Group.

Energy Efficient Home Improvement Credit

This tax credit is available to homeowners making qualified energy efficient improvements to their homes. These can include exterior doors, windows, skylights, insulation, and air sealing materials or systems. Homeowners can request home energy audits from professional home energy auditors for tax credits of up to $150 per year. Auditors show homeowners where they’re losing energy and identify possible home health and safety issues. The home energy audit could help homeowners save up to 30% on their energy bills by making recommended improvements, according to the U.S. Department of Energy, Klosterman says.

Under the same program, the installation of ENERGY STAR’S most efficient exterior windows and skylights can earn owners credits up to $600 per year, Klosterman says. Installing heat pumps and biomass stoves and boilers with thermal efficiency ratings of at least 75% qualify for up to a $2,000 credit per year. Qualified improvements for that $2,000 credit include new electric or natural gas heat pumps, electric or natural gas heat pump water heaters, and biomass stoves and boilers, according to irs.gov.

Homeowners can claim tax credits of up to 30% of what they spend in a year for every year up to 2032, Liddiard says. If an owner spent $4,000 on insulation one year and claimed a $1,200 credit, they could buy improved windows and skylights for $4,000 the next year, claiming another $1,200.

Residential Clean Energy Credit

This tax credit is available to homeowners who invest in renewable energy for their homes, including solar, wind, geothermal, fuel cells, or battery storage technology, Klosterman reports.

This credit intentionally covers improvements that aren't common yet, Liddiard says. “The tax credit was put together with an eye toward what might become more widely available over the next 10 years, such as fuel cells. Congress took the time to really look forward to what could be widely available in the next decade.”

“It might be advisable to get started by having a home energy audit and learning what an expert recommends,” Liddiard continues. “And then you plan it out per year for the maximum tax credit. You’re gaining the maximum tax credit for what you intend to do over a period of years.”

After 2032, the Residential Clean Energy Credit annual reimbursement drops to 26% in 2033 and 22% in 2034, according to Liddiard. “Another nuance: If you do all the upgrades in one year, you can carry forward to future years what credits you don’t use."

There are key distinctions between the two types of tax credits: “This carry-forward is not available with the Energy Efficient Home Improvement [Credit],” Liddiard says. In addition, a rule on the Energy Efficient Home Improvement Credit says the home can’t be new and must be an existing home and primary residence.

The Residential Clean Energy Credit can be used by an owner of either a new or existing home and even if you are a tenant in a rental home. In addition, some of these credits can be claimed on a second home if you’re not renting it out, Liddiard says.

Prioritizing Energy Efficiency Projects

Planning is essential in prioritizing energy efficiency projects, says DR Richardson, cofounder of Broomfield, Colo.-based Elephant Energy, which helps homeowners upgrade their homes and make them more climate friendly. “An average home will have one water heater and one furnace, and you want to plan it out,” he says “You want to install the heat pump one year and the heat pump water heater the next year to maximize those credits.”

For energy improvements made during 2023, claiming the Energy Efficient Home Improvement Credit requires homeowners to file Form 5695, Residential Energy Credits Part II, with their tax returns. The credit must be claimed for the tax year in which the installation was made, not the year it was merely purchased, the IRS states.

Avoid the mistake of installing equipment that isn’t efficient enough to qualify for the tax credits, Richardson says. “And, of course, the federal government doesn’t make it perfectly clear to the average consumer which products are sufficiently efficient,” he adds. “So, you want to work with a contractor. Most buyers are not buying from the store, and the average salesperson would not necessarily know.”

Newer Homes Can Benefit from Energy Efficiency Too

Liddiard speaks about home energy efficiency improvements from personal experience. He recently had to replace the furnace in his 11-year-old home. “It’s remarkable how much improvement has gone into furnaces in just 10 years,” he observes.

“Your home does not have to be 40 years old for you to reap significant benefits and tax credits from energy efficient home improvements you undertake.”

For the original article Updated on March 8, 2024 by JEFFREY STEELE visit Houselogic.

Single Women Are Embracing Homeownership

In today’s housing market, more and more single women are becoming homeowners. According to data from the National Association of Realtors (NAR), 19% of all homebuyers are single women, while only 10% are single men.

If you’re a single woman trying to buy your first home, this should be encouraging. It means other people are making their dreams a reality – so you can too.

Why Homeownership Matters to So Many Women

For many single women, buying a home isn’t just about having a place to live—it’s also a smart way to invest for the future. Homes usually increase in value over time, so they’re a great way to build equity and overall net worth. Ksenia Potapov, Economist at First American, says:

“. . . single women are increasingly pursuing homeownership and reaping its wealth creation benefits.”

The financial security and independence homeownership provides can be life-changing. And when you factor in the personal motivations behind buying a home, that impact becomes even clearer.

The same report from NAR shares the top reasons single women are buying a home right now, and the reality is, they’re not all financial (see chart below):

If any of these reasons resonate with you, maybe it’s time for you to buy too.

Work with a Trusted Real Estate Agent

If you’re a single woman looking to buy a home, it is possible, even in today’s housing market. You’ll just want to be sure you have a great real estate agent by your side.

Talk about what your goals are and why homeownership is so important to you. That way your agent can keep what’s critical for you up front as they guide you through the buying process. They’ll help you find the right home for your needs and advocate for you during negotiations. Together, you can make your dream of homeownership a reality.

Bottom Line

Homeownership is life-changing no matter who you are. Connect with a local real estate agent to talk about your goals in the housing market.

For the original article visit Keeping Current Matters.