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Frederick, MD 21701
301-695-0000
March 23, 2010
Spring Tips for Home Maintenance
RISMEDIA, March 22, 2010—Spring home maintenance is a must to protect and beautify your most important investment- your home. Everyone knows that they need to fertilize their lawn, but equal attention needs to be paid to your home, says Jeff Caruso, president of Caruso Homes.
Winter weather, ice formations, the freeze-thaw cycles and heavy winds are tough on our home’s exterior, making Spring the ideal time to avoid dreaded molds by making sure your home’s exterior is sealed properly. It’s also a good time to make sure downspouts are flowing freely and that splash blocks are in place and draining water away from the house. A properly sloped yard is the best way to keep the sump pump from working overtime and your basement dry.
Spring is also a good time to check that roof shingles are accounted for and laying flat, that siding and trim are secure, and that exterior windows and doors are caulked properly. Any vent, pipe or wire penetration from the exterior of the home should be caulked for a tight seal. Also inspect wood exterior features such as trim, as it may be time to add a coat of paint to protect from costly deterioration.
Other areas to focus on include changing filters on your heating system and making sure your air conditioner is fully charged. If you encounter a problem on the first scorching day, you may wait weeks to get a busy service contractor to your home.
Caruso Homes reminds homeowners to ventilate crawl spaces, chase mice out of the garage and attic areas, test smoke detectors and clean windows and sliding glass door tracks. Homeowners should also caulk bathrooms, tubs and sinks and undertake a thorough cleaning of the grill before your first cookout.
For more information, visit www.carusohomes.com.
March 17, 2010
8 Steps to Prepare for April Tax Obligation
RISMEDIA, March 17, 2010—With the U.S. federal income tax filing deadline of April 15 now just weeks away, taking time to review your tax situation and plan for any needed action will save you time, stress and, quite possibly, money.
With the economic recession impacting so many Americans in 2009, many people will have complicated filing situations this year, says Jeff Staley, president of Freedom Tax Relief, LLC. “This is the time to prepare, review your tax obligations and evaluate your alternatives for payment if you find you may have difficulty in paying your tax bill this year.” Staley recommends taxpayers follow these steps now in order to be ready for April 15:
1. Make a plan for filing. Make plans now to ensure that you will be able to file your income tax return on time. If that is impossible, file an extension. The Internal Revenue Service (IRS) is more forgiving of those who follow the rules than those who skip filing. Even if you cannot pay your tax debt in full on April 15, filing the required forms will result in smaller penalties.
2. Understand tax on unemployment benefits. Unemployment income is taxable. If you received unemployment benefits during 2009, you should have received a Form 1099-G providing the total amount received. If your employer paid separate unemployment compensation, that income should be reported on your W-2 form as income. Note that the first $2,400 of government benefits received in 2009 is exempt from tax, thanks to the American Recovery and Reinvestment Act.
3. Prepare documentation for tax credits. Review your 2009 expenses to know whether you qualify for credits. The American Recovery and Reinvestment Act of 2009 (e.g., stimulus package) included many tax credits, ranging from an expanded health coverage tax credit to new education benefits.
4. Maximize deductions. If you made donations to nonprofit organizations in 2009, make sure you obtain needed appraisals or valuations to list these contributions accurately in your tax forms, per IRS guidelines.
5. Contribute to your retirement plan. If you plan to contribute to a retirement plan, you can still make tax-deferred contributions for 2009 until April 2010.
6. Estimate your payment. You can estimate your tax obligation by reviewing a copy of last year’s tax form, completed with your 2010 data. If you purchase tax return software, you can use that. Or go to www.irs.gov and download a PDF version of your form to fill out.
7. Plan for payment. If it looks like you will have a larger tax bill than you can afford to pay in full by April 15, the IRS suggests taxpayers find any means possible to pay that bill, including bank loans, cash advances on credit cards, using savings, borrowing against retirement or life insurance, or using equity in assets (such as a home) to pay. However, if you are in dire financial circumstances, exchanging one debt for another will not make things easier, and putting a home at risk is almost always a bad idea. Consult a tax and/or financial adviser before making a decision.
8. Evaluate your alternatives. If you will absolutely be unable to pay your tax bill, contact the IRS. The agency sometimes gives some leeway to taxpayers who contact them directly or pay a late bill voluntarily. The IRS might waive penalties for those who cannot pay because of a death in the family, serious illness, financial records lost in a natural disaster or another “reasonable cause.”
Another alternative is tax debt resolution. Tax resolution specialists can often negotiate directly with the IRS on behalf of consumers who owe $10,000 or more. These specialists usually are attorneys, enrolled agents or certified public accountants with special training and experience. They can navigate the maze of IRS forms and calculations, help consumers understand what the IRS wants, and help them resolve their tax debt.
“As the April tax filing deadline looms, it is time to face up to the demands of the IRS and determine a payment strategy for your tax bill,” says Staley. “In these economic times, it is good to know that help is available for those who need it.”
For more information, visit www.freedomtaxrelief.com.
March 15, 2010
March 13, 2010—According to the Federal Bureau of Investigation (FBI), mortgage fraud is an escalating problem. It is the fastest growing white collar crime in the U.S. The FBI estimates annual losses of $4 billion to $6 billion in mortgage-related fraud, and the numbers are expected to increase. While there are legitimate programs to help ailing homeowners, there are also many scams that capitalize on these programs. Money Management International (MMI) offers the following tips to avoid falling into a foreclosure trap:
-Talk to your mortgage lender first. If you think you are unable to make a payment, contact your lender right away. They may be able to help you identify options to bring your loan current.
-Don’t pay upfront fees. Someone asking you to pay an upfront fee in exchange for help should be a red flag that the person or company may not have your best interest at heart.
-Get promises in writing. Oral agreements relating to your home are usually not legally binding. Protect your rights with a written contract signed by the person making the promise.
-Make mortgage payments directly to your lender or mortgage servicer. Do not trust anyone else to make your mortgage payments for you.
-Be careful about transferring your title. Foreclosure scams often require you to sign ownership of your home over to a third party. Never sign over your deed without seeking legal advice first. Understand the terms of the deal you are making. By signing over your deed, you lose rights to your home and any equity.
For more information, visit www.moneymanagement.org.
RISMEDIA, March 13, 2010—I recently joined many other individuals and agencies across the country celebrating National Consumer Protection Week (NCPW). Among the many informative programs and issues that were highlighted was an effort that focused on the many resources the Better Business Bureau (BBB) makes available to educate consumers about spending money wisely and avoiding being scammed by con artists.
Keeping with the theme of this year’s NCPW – Dollars and Sense, which emphasizes consumer education for every stage of life – from grade school to retirement, the BBB offered the following every day tips on how to manage money and be a savvy consumer.
If you need help finding a business you can trust, the BBB Accredited Business Locator can help you find businesses in your area that uphold BBB’s rigorous standards and have made a commitment to support the work of BBB (http://www.bbb.org/us/bbb-accredited-businesses). There are nearly 400,000 BBB accredited businesses across North America including retailers, contractors and online businesses.
If you want to research a business before you buy, the BBB maintains reports on nearly 4 million businesses across North America (www.bbb.org/us/Find-Business-Reviews). A business’s Reliability Report will tell you how many complaints the business has received, how they responded to complaints and their letter-grade rating reflecting BBB’s experience with the business.
If you have a dispute with a business, not only is BBB there to help educate consumers before they buy, it can also lend a hand if you have a dispute with a business. Every year BBB receives hundreds of thousands of complaints from disgruntled consumers and is usually able to help resolve issues quickly and easily.
If you have been cheated by a scammer, your complaint enables BBB to identify trends and warn other consumers and hopefully prevent them from being taken advantage of as well.
Check out all the online resources and tools BBB provides at www.bbb.org. More information and advice also is available on the National Consumer Protection Week website, year-round at www.consumer.gov/ncpw.
Homeowners: Most Profitable Remodeling Projects
RISMEDIA, March 15, 2010—Remodeling Magazine recently released its 2009-10 Cost vs. Value Report which covers 80 U.S. cities. On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1% of remodeling costs compared to 73.8% in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3% costs recouped.
Other exterior projects in the top 10 include midrange vinyl and upscale foam-backed vinyl sliding replacements, which returned more than 79% of costs. In addition, several types of window replacements–midrange wood, midrange vinyl and upscale vinyl–all returned more than 76% of costs upon sale.
Similar to last year’s report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1% and 50.7% of project costs.
Regionally, cities in the Pacific states of Alaska, California, Hawaii, Oregon and Washington once again outperformed the rest of the nation in terms of remodeling costs recouped upon resale. The West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia also performed relatively well.
The regions that generally returned the lowest percentage of costs were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota) and the Middle Atlantic (New York and Pennsylvania).
Even though they don’t usually return 100% of their cost, a remodeling job that remedies an extremely dated kitchen or bath can make the difference in selling your home. In most cases there will be some easy parts of the job that the homeowner can do on their own to save money. Painting is one example. Don’t look at a remodeling job only from the perspective of resale value. That’s a consideration that belongs in the calculation, but the enjoyment of an improvement is another important factor. If you plan to stay in the same home for the next five years or more, the difference between whether a project that you wanted to enjoy adds 50% or 80% to the resale value becomes less relevant.
Courtesy of the American Homeowners Foundation and the American Homeowners Grassroots Alliance, www.AmericanHomeowners.org.
March 12, 2010
Q: What is a hybrid loan?
A: Also called a fixed-period ARM, these crossbreed loans combine features of fixed-rate and adjustable-rate mortgages.
They start out with a fixed interest rate for a number of years – usually 3, 5, 7 or 10 years – and then convert to an ARM.
Initially, the interest rate for the fixed period of the loan is much lower than the rate on a fixed-rate, 30-year mortgage by about 1.5 percentage points. As a result, the hybrid allows borrowers to buy a lot more home than they can afford – but at greater risk.
The terms and fees for these loans vary widely and when the fixed-rate period expires, homeowners could end up paying considerably more than the current rate of interest.
Before considering a hybrid, pay close attention to the terms, fees, and prepayment penalties.
Tips to Protect Your Home from Termites
RISMEDIA, March 12, 2010—As the spring sun begins to shine, we all look forward to putting this season’s very wet weather behind us. According to pest experts, the wet winter will be a perfect breeding ground for pests, and termites are no exception. Long considered one of the most prevalent and damaging pests in the South, termites will cause more than $5 billion in property damage this year alone. And that damage, says Arrow pest expert Shay Runion, is not usually covered by homeowners’ insurance. Runion encourages homeowners to learn more about termite control to protect their most important investment.
Subterranean, drywood and Formosan termites are the most common termites found in the South. These termites usually become active in early spring, as soon as temperatures begin to heat up and continue throughout the summer. Once they enter the home, termites can tunnel 24 hours a day through cracks in concrete, wood, carpeting, floors and wallpaper.
Runion explains that while termite behavioral patterns have changed over the years, the absence of typical “swarming” signs doesn’t mean there is no activity happening in the soil below the foundation of your home. Evidence of mud tunneling in, over and under wood structures; darkening or blistering of wood; or damaged wood becoming extremely thin are all tell-tale signs of a termite infestation and require the immediate attention of a pest professional.
“It’s important for homeowners to understand that our below normal temperatures will not slow termite activity this spring,” says Runion. “Termites are always active in the spring, so it is imperative that homeowners get an inspection early. Once a termite infestation begins, they work quickly causing significant property damage.”
Steps to help prevent termites this spring:
-Eliminate moisture around foundations and divert water from the house by using proper downspouts and gutters.
-Seal cracks and holes including areas where utilities and pipes enter the home.
-Do not stack firewood or lumber near home and inspect it carefully before bringing it indoors.
-Keep tree branches, shrubbery and ground covering well trimmed and away from the house.
-Reduce humidity in crawl spaces with proper ventilation.
For more information, visit www.arrowexterminators.com.
RISMEDIA, March 12, 2010—Huge numbers of American families live in geographic areas prone to natural disaster. But any neighborhood can unexpectedly fall victim to fire or other danger and it is vital for families to plan in advance to be ready for any emergency.
To develop a proactive readiness plan in your home, call the family together for a meeting. Even the youngest children in the family should be involved and aware of the plan.
Together, draw up a list of rules covering the following situations. When you are finished, give each family a copy to post in their own rooms – and post one prominently on the refrigerator or on the family bulletin board:
-Determine or review the preferred escape routes from the house to be used in case you need to evacuate quickly.
-Show everyone the location of the electrical box, the gas valve, the water main valve and the fire extinguisher if you have one. Young children may not be able to operate them, but they can show another adult where they are.
-Show everyone where health records and other important documents are stored.
-Make a short list of items that should be taken with you if time allows, such as necessary family medications.
-Review the location of your pre-packed emergency kits containing water, food, etc. If you do not yet have such a kit, prepare one now. Instructions for what to include can easily be found online.
-Be sure everyone knows how and when to report an emergency by calling 911.
-Designate someone who will be authorized to pick up the children from school in the event you cannot do so. Be sure this person knows he/she is the designee.
-Determine a meeting place where the family will reunite if separated during an emergency.
-As an alternative, designate a contact person in town and someone out of town who each family member should call as soon as possible after an emergency in case the family is separated.
-Make decisions regarding the safety of your pets.
March 11, 2010
RISMEDIA, March 11, 2010—When Americans set their clocks ahead on March 14th, they may not realize that Daylight Savings Time brings with it the season for increased property crime. According to the FBI, warm weather is often a predictor of increased criminal activity. Most residential burglaries also occur during daylight hours, specifically between 6am and 6pm. With longer days and spring weather around the corner, Security Choice, a leader in home security and safety, offers the following tips to keep your home safe.
Secure doors and windows - The most common points of entry for criminals are the most obvious. All doors and windows should be secured throughout the day to ensure maximum security. Sliding glass patio doors are particularly vulnerable and should be reinforced with a wooden dowel or a secondary blocking device.
Hide garage door openers – Garage doors are a common weakness in home security, as many people do not lock the door that leads from the garage to the house. An increasingly common tactic is to steal garage door openers from cars. Criminals use registration documents to find the address of the car owner and the garage door opener for easy access to the home. Keep garage door openers hidden and internal doors locked at all times.
Always appear to be home – Burglars are looking for an easy target. The biggest deterrent is a home that looks occupied. Extra cars parked in the driveway or street can often raise enough doubt to make burglars move to the next house. Keep blinds closed, and make sure delivered boxes, mail or newspapers don’t sit outside all day, as they are telltale signs that no one is home.
Landscape wisely – Spring brings new growth, and while hedges can serve as a deterrent, overgrowth can provide criminals a place to hide. Trim back unruly plants so they don’t provide cover for opportunistic burglars.
Use home alarm systems – Not much can match the increased security and peace of mind that comes with a home alarm system. Properly installed, alarm systems can be a potent deterrent for criminal activity. Look into trusted brands that offer audible horns and visible decals.
For more information, visit www.securitychoice.com.
RISMEDIA, March 11, 2010—As American homeowners are finding that selling their home is many times not a viable option in this down economy, they are carefully considering their investments today more than ever. In finance, the conventional definition of investment is using money with the hope of making more money. The dictionary defines investment as “the investing of money or capital in order to gain profitable returns, as interest, income, or appreciation in value.” For most people, their largest investment is their home, and when upkeep, regular maintenance, or improvements need to be made, most consumers carefully study their options. For example, energy efficient appliances will likely save the homeowner money in monthly cost as well as tax credit, while increasing the value of the home. This is why energy-efficient appliances have gained in popularity over the past 10 years.
Upkeep and regular maintenance of a home, such as replacing a water heater or repairing a leaky roof, are routine costs and are generally small jobs. These kinds of jobs are required for the preservation of a home. On the other hand, cosmetic improvements such as kitchen and bath renovations are usually larger jobs that tend to reflect the personality and/or lifestyle of the homeowner. With more people entertaining at home these days, consumers are considering decorative changes as a major investment in their lives. This type of remodeling or renovating adds value to a home. One way consumers can find a trusted home improvement business is by way of referrals from family, friends or neighbors.
Janice Anne Costa, editor of Kitchen and Bath Design News, reminds homeowners of a few key things to remember as they begin a home remodeling project:
-Home improvement experts recommend getting at least three bids.
-Consumers should take the time to check into a company’s references and licensing.
-Consumers should make sure the company they are reviewing is in good standing with the Better Business Bureau.
More than just settling for a new room or renovation, consumers are looking for a company that builds a personal relationship. Consumers no longer want to be another number. The industry is slowly moving back to a personal touch with greater attention and focus being placed on the design and individual service. Phil Hurst and Gary Elmes, owners of ElmHurst Cabinet Company in Mesa, AZ, agree that “adding a personal touch to each job and ensuring that the customer is happy is a key focus.”
A recent study by J.D. Power and Associates reports “that the importance of ordering and delivery to customer satisfaction with cabinets has decreased while the importance of price and design has increased.” With many possible suppliers on the market, it is best to not only look for one with a strong focus on design and consumer preferences, but one that is also concerned with the functionality of the remodel.
Another fact that consumers should note is that cabinets are not just cabinets and wood is not just wood. Different woods react differently to various climates, and this should be a consideration before choosing the cabinet and manufacturer. Also, when deciding between manufacturers of cabinets, consumers should consider the terms of the warranty. While price and design are important, functionality and quality are also key to a successful remodel.
With the economy down, home restorations are on the rise, and kitchen and bath remodels are two of the most popular categories. It is important to choose a company that cares about customer satisfaction, design, functionality, price and quality to ensure the renovation is successful. There are many horror stories about home improvements gone wrong or getting half way into a project only to be told the project is now going to cost twice the original bid. Avoid this by having a contract up front and working with reputable companies that care about the outcome of the project.
For more information, visit www.ElmHurstCabinets.com.
