90% of homebuyers have historically opted to work with a real estate agent or broker. Here’s why that’s unlikely to change, according to the National Association of Realtors

The National Association of Realtors has agreed to settle litigation over commission rules for U.S. real estate agents, clearing the way for possible changes in how Americans buy and sell homes.

Last month, the National Association of Realtors announced a settlement that would resolve nationwide litigation over claims from home sellers related to broker commissions.

The $418 million settlement, and the practice changes it will usher in, have led some to speculate that real estate agents are at risk of becoming obsolete. As someone who has practiced real estate for 15 years, nothing could be further from the truth.

Members of the National Association of Realtors will continue to be the most reliable partner for the millions of Americans striving to realize the American dream through homeownership.

Specifically, the settlement will prohibit offers of compensation from being shared on multiple listing services (MLSs), the databases that show real estate brokers the properties for sale, and it will require MLS participants to enter into written agreements with their buyers.

These changes will go into effect in mid-late July 2024.

It’s important to note that the National Association of Realtors does not set commissions, and nothing in this proposed settlement would change that. Commissions would continue to be negotiable among buyers, sellers, and their brokers.

The “cooperative compensation” rule that has been subject to litigation says that selling brokers have to specify on each listing an offer of compensation to buyers’ brokers. That offer could be any amount, even zero.

Consumers continue to have options when it comes to compensating the brokers they work with. Some consumers may opt to pay a fixed fee for their broker’s services. In other cases, a seller may offer a concession on the sales price, which could be used by the buyer to help compensate their broker. And in other cases, listing agents may offer a portion of their compensation to buyers’ agents as long as the offer of compensation does not occur on an MLS.

Cooperative compensation, where the compensation a seller pays to their broker is shared, covering the cost of a buyer broker’s services, will continue to be an important option for consumers in all transactions and especially those involving lower and middle-income homebuyers, who may already have a difficult-enough time saving for a down payment.

The bottom line is that consumers will continue to be able to choose what kind of professional real estate advice they’d like–and how much, and how, they will pay for the work of a real estate professional.

Historically, nearly 90% of homebuyers have opted to work with a real estate agent or broker. That figure is unlikely to change.

Even in an era where seemingly everything can be researched and purchased electronically, the clear value added by realtors remains evident. Nine in 10 home buyers would use their agent again or recommend their agent to others.

Agents and brokers demystify local markets and neighborhoods and provide access to extensive information about available homes. We help prospective buyers determine realistic budgets and research varied financing options, including programs that may be able to help buyers with a down payment.

Seasoned agents and brokers also offer insights into property values, taxes, regulations, and zoning laws while overseeing thorough due diligence processes. And we connect buyers and sellers with other reputable real estate-related professionals such as lawyers, lenders, contractors, and inspectors–any of which can make or break a transaction.

When it comes time to make or evaluate offers, real estate professionals have a decades-long track record as skilled negotiators, ensuring that their clients submit the most competitive bids for their dream home–or hold out for what their home is really worth. And at the settlement table, we help our clients confidently close on what is likely the most significant financial transaction of their lives.

Even post-sale, real estate agents and brokers are crucial advisors for their clients, providing ongoing support, answering queries, and offering guidance as people confront the challenges and delights of homeownership.

NAR’s proposed settlement agreement and the associated practice changes will not change what makes realtors valuable: specialized knowledge, diligence, and a commitment to our clients’ best interests. And it does not change the fact that millions of people will continue to rely on us to help them fulfill their dream of homeownership.

For the original Article by Tim Hur on April 3, 2024 visit Fortune.com.

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.

Boomers Moving Will Be More Like a Gentle Tide Than a Tsunami

Have you heard the term “Silver Tsunami” getting tossed around recently? If so, here’s what you really need to know. That phrase refers to the idea that a lot of baby boomers are going to move or downsize all at once. And the fear is that a sudden influx of homes for sale would have a big impact on housing. That’s because it would create a whole lot more competition for smaller homes and would throw off the balance of supply and demand, which ultimately would impact home prices.

But here’s the thing. There are a couple of faults in that logic. Let’s break them down and put your mind at ease.

Not All Baby Boomers Plan To Move

For starters, plenty of baby boomers don’t plan on moving at all. A study from the AARP says more than half of adults aged 65 and older want to stay in their homes and not move as they age (see graph below):

While it’s true circumstances may change and some people who don’t plan to move (the red in the chart above) may realize they need to down the road, the vast majority are counting on aging in place.

As for those who stay put, they’ll likely modify their homes as their needs change over time. And when updating their existing home won’t work, some will buy a second home and keep their original one as an investment to fuel generational wealth for their loved ones. As an article from Inman explains:

“Many boomers have no desire to retire fully and take up less space . . . Many will modify their current home, and the wealthiest will opt to have multiple homes.”

Even Those Who Do Move Won’t Do It All at Once

While not all baby boomers are looking to sell their homes and move – the ones who do won’t all do it at the same time. Instead, it’ll happen slowly over many years. As Freddie Mac says:

“We forecast the ‘tsunami’ will be more like a tide, bringing a gradual exit of 9.2 million Boomers by 2035 . . .”

As Mark Fleming, Chief Economist at First American, says:

“Demographics are never a tsunami. The baby boomer generation is almost two decades of births. That means they’re going to take about two decades to work their way through.”

Bottom Line

If you're stressed about a Silver Tsunami shaking the housing market overnight, don't be. Baby boomers will move slowly over a much longer period of time.

For the original article visit Keeping Current Matters.

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.

On the House: How Early Should I Begin Searching for a Home?

Q:How early should I begin shopping for a home if I hope to buy one this year?

There’s no hard-and-fast rule on how early to start looking for a home. But I suggest that first-time homebuyers give themselves at least six months.

Even with the rising number of more affordable homes going up for sale, it’s challenging to find a home you want in a location where you would like to live—and then beat out all of the competition for it.

Many buyers traditionally start home shopping around now as the spring housing market kicks off. Some will be lucky and have their first offer accepted, while others may be looking for years. How early you begin your search depends on your deadline to move, the number of buyers vying for homes in your area, and your price range.

It took the typical buyer 10 weeks to find a home, according to the most recent data from the National Association of Realtors®.

It might take you longer as there’s a lot of competition for move-in ready, affordable homes in a great school district. However, if you’re open to purchasing a fixer-upper, a home in a less popular location, or even a luxury home, your search might be considerably shorter. It’s really market-specific.

When my spouse and I purchased our first house, a starter home in the New York City suburbs, it took about nine months before we closed. This was in late 2021, though, during the COVID-19-juiced market. And we were holding out for that reasonably priced starter home with curb appeal.

If you’re thinking about starting your home search soon, there are a few things you should consider doing first.

1. Figure out what you can afford

The first thing first-time buyers should do is figure out how much home they can afford. There’s no point in falling in love with a home you can’t comfortably pay for. You also don’t want to get in over your head financially. (Repeat after me: I will not allow myself to be house poor.)

That’s why it’s helpful to run your numbers to help you to establish a budget. Don’t forget to factor in property taxes, home insurance, and private mortgage insurance (if you don’t put 20% down) costs as well.

Note: Property taxes can vary greatly from home to home and town to town. They can also rise steeply in some municipalities after you have work done on the property.

You can find out here how much home you can afford.

This might also be an opportune time to clean up your credit and pay down debt. Lenders typically grant larger loans to those with higher credit scores and less debt. Borrowers with pristine credit can also often score lower mortgage rates and fees on loans.

2. Get pre-approved for a mortgage

In the competitive spring market, you may need to act quickly if you see a great home. That’s why you should get a mortgage pre-approval letter early in your homebuying journey.

Most sellers aren’t going to want to take a chance on buyers who can’t prove they will be able to secure financing, especially if other offers come in. A pre-approval letter tells sellers that you’re serious—and are likely to be able to get a loan up to a specified amount.

3. Familiarize yourself with the local market

The more you know about the local market, the less time you’ll waste when you start putting in offers.

It helps to know how often homes in your price range are going up for sale and if they are located in neighborhoods where you would like to live. You’ll also want to know how quickly homes are selling in these areas, so you know if you need to make an offer on the spot or have some time to think it over.

Perhaps most importantly for first-time buyers, you should find out how much similar homes sold for at closing. Focus your research on homes in your price range in the places where you would like to live. If you want only a move-in ready home in a certain school district, look at those comps and not for fixer-uppers.

You’ll want to find out if these homes are selling for above the list price, and if so, by how much. Or maybe they’re not going for the asking price. This will help you to figure out the offers you should be making.

Try to be thorough in your research. What are the property taxes in this area? Is this area within a reasonable commute to your job? If you have children, are there other families in the neighborhood? Is the community close to parks and restaurants? You want to make sure this is a place where you’ll be happy.

4. Know your priorities

Finally, figure out what you have to have in a home—and what you can live without.

Unless you’re a multimillionaire, most first-time buyers will likely have to make some hard compromises. Knowing what you can live without or choosing a not-quite-ideal location could open up more potential homes. And if you’re looking in less competitive markets, you might be able to purchase a home faster.

For the original article by Clare Trapasso visit Realtor.com

6 Outdated Habits To Reset If You Hope To Sell Your Home This Year

With a new year comes the urge to kick bad habits to the curb—hence the popularity of “dry January,” for instance. But too much bubbly or Bud Light is hardly where our vices end.

If you’ve decided to sell your home this year, then it’s high time to make sure you’re in the right mindset to make it happen. Because let’s face it: Even in the best market conditions, selling a home can be a complex and stressful process where sellers might unknowingly engage in misguided tactics that could backfire and kill the deal.

To help, we asked real estate agents what outdated habits home sellers should give up for good. Here’s what the pros say should go out with the old year and what’s in for the new year that will get your home sold for the price and terms you want.

Outdated habit No. 1: Trying to sell your house on your own

If you believe the home-selling process is as complicated as it is, you might think adding another person to the mix—in the form of a real estate professional—could make your journey even more challenging.

But that concept needs to be chucked out the proverbial window—quickly.

Why? Because homes for sale by owner “never sell for the same price it would if it was listed with an experienced” real estate agent, says Andrea Viscuso, an agent at Forte Team at Compass in Connecticut.

In addition to knowledge and experience, a listing agent has networking power with contacts within the industry and can boost marketability.

Even if a buyer falls into your lap, you must still be familiar with the laws and regulations of selling a house. Despite your many other talents, you might be missing the skills to vet offers, avoid wire fraud, and negotiate deals, which a real estate professional can offer.

“We know how to negotiate in our client’s best interest and provide a buffer for the client,” explains Viscuso.

Outdated habit No. 2: Considering only the highest offer

Weird fact alert: The highest offer on a home might not be the best offer.

Sure, the highest bid looks appealing, but it’s crucial to consider other factors, too.

As a seller, you should consider the buyer’s overall financial stability, the contingencies, and the closing timeline.

For example, the buyer making the highest offer might have a lender that requires a home appraisal to support the accepted offer. And if the appraisal doesn’t support the offer—the buyer can back out. Or maybe the highest offer comes with an extended closing time, yet you need to get moving due to a contractual agreement on another property.

“By broadening your perspective beyond the price tag, you’ll make a smarter decision and avoid any unpleasant surprises down the road,” says Fran Lisner, a real estate agent with Daniel Gale Sotheby’s International Realty on Long Island, NY.

Outdated habit No. 3: Being inflexible for showings

Yay! Your agent has a very interested buyer who is excited to see your home. Ugh! The requested appointment is in two hours.

Being at the beck and call to show your home can turn your daily life upside down, but a home seller needs to be as flexible as possible.

It can be a major turnoff to home shoppers if you’re rigid with showings and unwilling to work with prospective buyers’ schedules.

“Be the unicorn-friendly seller and show some flexibility,” says Lisner. “By accommodating various showing times, you’ll cast a wider net and reel in more interested buyers.”

Outdated habit No. 4: Assuming a cash offer is always best

A cash offer for the full asking price seems like the ultimate dream come true for a seller. Cash usually means a quicker sale at a good price. Plus, you might avoid inspections, appraisals, and contingencies.

Cash offers mainly come from wealthy buyers, investors who fix and flip properties, and iBuyers. Yet because cash buyers don’t use conventional financing, it can be difficult to know if you’re dealing with a reputable buyer.

“Cash really is king as it does present huge advantages, but some investors throw out offers casually and then walk,” says Viscuso. “I have seen more cash deals go sideways because of a change of heart than mortgaged offers.”

So, don’t jump at the chance to take the money and run.

“A strong buyer with a pre-approval letter who is properly vetted can sometimes be more invested in the property,” adds Viscuso.

Outdated habit No. 5: Forgoing minor repairs

We get it—fixing up a home you plan to leave doesn’t inspire anyone to break out their tools.

Yet, making minor repairs could yield an even higher sales price for some sellers.

Best of all, you can prep your house on the cheap. Take a fresh look at your home—inside and out. You might need to do a deep clean, declutter, and organize. Or fix that hole in the screen and repaint the front door.

Jen Turano, a real estate agent at Compass in Greenwich, CT, encouraged her sellers to make minor improvements to increase the home’s value, which paid off.

“We received multiple offers, and the home sold significantly over the list price,” says Turano.

Outdated habit No. 6: Skipping staging

Is home staging really necessary? The answer is a resounding yes. Staging can be the key to getting the highest price regardless of market conditions.

“Neglecting home staging and maintenance is like serving a gourmet meal on a paper plate,” says Lisner. “It just doesn’t do justice to your beautiful property.”

Staging likely secured an offer above the asking price for one of Turano’s clients selling a home they had already vacated. (Staging is just as crucial for occupied homes, too.)

“Staging made the home feel more finished, and the beautiful furniture and decor selected by the stager transformed the home’s already beautiful appearance into something pretty spectacular,” says Turano.

Lisa Marie Conklin knows a little something about moving. She's moved eight times in the past 10 years but currently calls Baltimore home. She writes for Reader's Digest, Family Handyman, The Healthy, Taste of Home, and MSN.

For the original article By Lisa Marie Conklin dated Jan 18, 2024 visit Realtor.com

How to Avoid Capital Gains Tax on a Home Sale

When your home value goes through the roof, you may end up with capital gains when you sell. Here are tips to limit tax liability.

Most homeowners aim for a substantial increase in home value – and many are achieving it when they sell their primary home. But that increase can come with a thorny issue: capital gains tax when they file their tax returns after selling. If you’re in that situation or anticipating it, you can take advantage of a number of strategies to pay lower capital gains tax on real estate.

Understanding the Capital Gains Problem

Many homeowners who purchased their homes long ago have seen huge gains in the value of their residences. When they ultimately sell their houses, the gain may extend beyond the federal tax law's maximum exclusion amounts on capital gains of $250,000 for single filers and $500,000 for married couples. That can leave the sellers on the hook for a large capital gains tax on the sale.

“The problem is that in 1997, when the maximum exclusion levels were added to the tax code, they were not indexed to inflation,” says Evan Liddiard, CPA, director of federal tax policy for the National Association of REALTORS®. So, the amounts we see today are still the same as they were in 1997, when these were big numbers and virtually no one went over them. Today, because of inflation, a $250,000 or $500,000 gains of much more than $250,000 or $500,000 are not uncommon, so many people go over, especially in higher-priced markets.”

Take the Tests to See if You Qualify for Exclusions

To qualify for the exclusions, you must satisfy tests that you’ve lived in your house for at least two of the last five years and have owned it for at least two of the last five years, says Jack McGuff IV, owner of McGuff Financial, based in Pearland, Texas. If you don’t meet these requirements and haven’t yet sold your home, you might consider delaying a home sale until you’ve satisfied the necessary use and ownership tests, he adds.

If you rented out your primary residence for a period before a sale, however, you may lose a portion or all of the exclusion, McGuff continues. That’s because the property would be considered a rental property for tax purposes.

How Cost Basis Factors into Capital Gains Tax

You can think of cost basis in real estate as the total cost of buying the property. Consider it as a baseline, says Quicken Loans: When you sell the property, the cost basis is subtracted from the net sales price to determine capital gains tax liability. That’s why you should document the cost basis of your home over time.

To calculate the cost basis of their homes, owners typically start with the purchase price. The cost basis rarely stays the same over time, and once it’s changed, it becomes the adjusted basis. Several factors can increase or decrease the adjusted basis, says McGuff.

Increases in adjusted basis can result from:

• The cost of additions and improvements to the house

• Money spent to restore the property after damages or loss

• Legal fees incurred in relation to the property

Decreases in adjusted basis can result from:

• Receipt of insurance payments due to a casualty loss or theft

• Tax credits for home energy improvements

If you sold your primary home last year, there’s little you can do to avoid capital gains tax liability when you file taxes this April, Liddiard says. "If [a homeowner] sold their house and had a gain over the exclusion amount, they’re going to pay taxes. If they have some capital losses pending, these might offset the gains if they took the losses in the same year. But most people are not walking around with huge unrealized capital losses.”

Capital Gains Tax Strategies for Those Planning to Sell in 2024

If you’re planning to sell your home in 2024 and believe you may have a large enough gain to trigger a capital gains liability, you can consider these three strategies:

Tax Loss Harvesting

This involves the sale of securities at a loss to offset capital gains taxes owed on profits, says Paul Miller, CPA, founder of Miller & Company, an accounting firm based in Queens, N.Y. “Of course, any harvested losses from previous years that have not been offset by gains will be applied against the current year gain,” McGuff says. “This highlights the importance of regular tax-loss harvesting in your after-tax nonretirement investment accounts throughout the year.”

Contribution to a Traditional IRA

Another option would be to contribute to a traditional IRA to reduce taxable income, subject to contribution limits and deductibility phaseouts, says McGuff. “If an individual is part of a high-deductible health care plan, making a contribution into their health savings account would also reduce taxable income.”

Donation to a Qualified Charitable Organization

Charitably inclined individuals might consider donating cash or appreciated property to a qualified charitable organization, potentially providing a tax deduction to help offset that tax year’s taxable income. Deductibility depends on the type of charity and is also subject to a percentage of the taxpayer’s adjusted gross income. “Any unused charitable contributions can be carried forward for five years,” McGuff says. “Unfortunately, many taxpayers are forced to bite the bullet if they have not utilized any of these strategies in a timely fashion.”

Consider Tax Changes for 2024 Tax Year

If you’re planning to sell your home, consider tax changes initiated for tax year 2024, McGuff says. For example, the Qualified Charitable Distribution cap has been indexed for inflation and now stands at $105,000. This change permits owners of IRAs who are 70 and a half or older to transfer up to $105,000 in 2024 from their IRAs directly to a qualified charity and avoid income tax on those amounts. “These amounts will count toward the required minimum distribution for the respective tax year,” McGuff says.

In addition, the elective deferral limit for 401(k), 403(b), 457(b), and Roth 401(k) plans now stands at $23,000, with a catch-up contribution of $7,500 permitted for those 50 and older. IRA contribution limits have increased from $6,500 to $7,000 for 2024 with a $1,000 catch-up contribution for those 50 and older. Deductible contribution limits to health savings accounts have also increased from $3,850 to $4,150 for singles, and from $7,750 to $8,300 for families. HSA holders 55 and older can contribute an extra $1,000 to their HSAs.

Also in 2024, the IRS increased the standard deduction by $1,500, to $29,200, for married couples filing jointly, plus $1,550 for each spouse 65 and older. The standard deduction is now $14,600 for single filers and $16,550 for singles 65 and older, McGuff says.

Liddiard explains that NAR and other stakeholders are supporting raising the maximum exclusion levels by backing the More Homes on the Market Act, introduced in the House in September 2022. The bill would double the tax exclusion on the gain from sale of a principal residence and require future annual inflation adjustments to the amount. “It’s an uphill battle to get that passed, because the problem is not as serious in all parts of the country,” he says.

For now, if you’ve experienced a significant increase in the value of your primary home and plan on selling, develop a capital gains strategy as soon as possible before selling your home. And be sure to track changes in your adjusted cost basis. Depending on the amount involved, you might also consider hiring a tax advisor.

For the original article published on March 1, 2024 by JEFFREY STEELE, visit Houselogic.

8 Energy Saving Tips to Cut Your Heating and Cooling Bills

Most energy-saving tips are designed to save you a few bucks throughout the year, but how do you know which tips to up your energy efficiency are going to offer the most bang for your buck?

Some tips cost you absolutely nothing, and yet you save money. Other tips will cost you a little, but can help you hold onto as much as 10% of the money you’re currently paying out of pocket. Ready to dive in?

Energy saving tips that really save

Consider these eight energy-saving tips below, so you aren’t sweating when your winter gas bills come, and as the weather warms, evaluate your winterizing measures to see which ones make sense to maintain through the spring and summer months.

1. Program your thermostat

This energy-saving tip costs you nothing but time: Set your thermostat as low as is comfortable in the winter (some go as low as 55 degrees!). For each degree you raise your thermostat setting, your fuel bill climbs 3%.

Consider slipping into a sweater before you crank up the temperature. Don’t forget to program the thermostat to a lower temperature during the hours you are away from home, either.

If your thermostat allows you to program different temperature zones, turn the heat down or off in rooms that aren’t being used.

2. Maintain filters and heating system equipment

Regularly clean or replace the filters for your furnace and central heating system. Likewise, make sure to clean warm-air registers, baseboard heaters, and radiators—ensuring that they are clean and not blocked by debris or trapped air.

If you’re not sure how to bleed trapped air from a hot-water heat radiator or flush the water heater, call a professional. They also can perform a routine check of your central heating/cooling duct system for leaks.

A simple task like cleaning equipment and ensuring it’s not leaking or obstructed by furniture, carpet, or drapes can improve your system’s energy efficiency by 10% while extending the life of your equipment.

3. Install radiator reflectors

If you use radiators to heat your home, placing heat-resistant radiator reflectors between exterior walls and the radiators will help prevent you from heating walls unnecessarily and can reduce heat loss.

4. Add insulation

Wrapping insulation around pipes and your water heater can help minimize heat loss as water runs from the water heater to your faucets. By adding insulation, you won’t have to wait as long for hot water, you will conserve water, and you can save up to 10% of your total energy costs.

Just be sure to leave the air intake vent uncovered on the water heater.

5. Seal openings

It’s foolish to spend money heating your home if the warm air can escape. Caulk and weather-strip around exterior seams, cracks, and openings. Pay extra attention around windows and at points where various exterior materials like wood, brick, and vinyl siding meet.

On the inside, caulking and weather-stripping around windows and door frames will cut down on drafts. A draft guard along the bottom of an exterior door can also help prevent heat from escaping.

If you’re not using your chimney, close the damper. Additionally, air sealing and properly insulating the attics, walls, floors over crawl spaces, and accessible basement rim joists can save up to 10% of total energy costs.

6. Replace windows

Consider replacing old windows with high-efficiency Energy Star double-pane windows with protective coatings that reflect heat back into your home during winter. This can reduce your heating and cooling costs by up to 15%.

If such a retrofit is not in your budget, cover your windows with clear plastic film. At a typical cost of $4 to $6 per window, the film creates an insulating air pocket between the plastic and the window, reducing heat loss through windows.

7. Use fans wisely to cut costs

It may sound simple, but using fans judiciously can save energy. In just one hour, kitchen, bath and other ventilating fans can pull out a houseful of warm air. So turn the ventilation fans off as soon as they have done the job.

Aim keep the humidity level in your home between 30% and 60%. In rooms where you have a ceiling fan, reverse the direction so that they move clockwise and push hot air near the ceiling toward the floor.

8. Adjust drapes

This is another free energy-saving tip: When it’s cold outside, keep drapes and shades on your south-facing windows open during the day to allow sunlight to enter your home, and then you can close them at night to reduce the chill you may feel from cold windows.

For the original article ByPatricia-Anne Tom dated Jan 18, 2024 visit Realtor.com

Is It Easier To Find a Home To Buy Now?

One of the biggest hurdles buyers have faced over the past few years has been a lack of homes available for sale. But that’s starting to change.

The graph below uses the latest data from Realtor.com to show there are more homes on the market in 2024 than there have been in any of the past several years (2021-2023):

Does That Mean Finding a Home Is Easier?

The answer is yes, and no. As an article from Realtor.com says:

“There were nearly 15% more homes for sale in February than a year earlier . . . That alone could jolt the housing market a bit if more “For Sale” signs continue to appear. However, the nation is still suffering from a housing shortage even with all of that new inventory.”

Context is important. On the one hand, inventory is up over the past few years. That means you’ll likely have more options to choose from as you search for your next home.

But, at the same time, the graph above also shows there are still significantly fewer homes for sale than there would usually be in a more normal, pre-pandemic market. And that deficit isn’t going to be reversed overnight.

What Does This Mean for You?

You might find a few more choices now than in recent years, but you shouldn’t expect a ton of options.

To help you explore the growing list of choices you have now, team up with a local real estate agent you trust. They can really help you understand the inventory situation where you want to buy. That’s because real estate is local. An experienced agent can share some smart tips they’ve used to help other buyers in your area deal with ongoing low housing supply.

Bottom Line

If you’re thinking about buying a home, team up with a local real estate agent. That way, you’ll be up to date on everything that could affect your move, including how many homes are for sale right now.

For the original article, visit Keeping Current Matters.

The First Step: Getting Pre-Approved for a Mortgage

Some Highlights

• If you’re looking to buy a home in 2024, getting pre-approved is a key piece of the puzzle. Mortgage pre-approval means a lender checks your finances and decides how much you’re qualified to borrow.

• As more buyers re-enter the market, it’ll help you make a strong offer that stands out from the crowd.

• Talk to a trusted professional to learn more and begin your homebuying process today.

For the original article visit Keeping Current Matters.