With summer officially upon us, many homeowners will be confronted with rising electric bills as fans and air conditioners kick into high gear in an effort to keep cool. Demand for electricity can also increase if you have house guests or children home for the summer.

As a member of the Top 5 in Real Estate Network®, I have access to lots of great ideas for planning ahead to control energy costs this summer. The following tips are from the experts at Public Service Electric and Gas Company (PSE&G):

• Use ceiling fans in the counter-clockwise direction to create a wind-chill effect, making you feel cooler. Also, whole-house fans that bring in cooler night-time air can pre-cool a house and reduce energy use in the daytime if heat is kept out by closing windows and shades.
• Install a programmable thermostat. If health conditions permit, raise the setting from 73 to 78 degrees. You can save 3-5% on your air conditioning costs for each degree you raise the thermostat.
• Close doors leading to uncooled parts of your home. If you have central air conditioning, close off vents to unused rooms and be sure to keep filters clean.
• Plant shade trees close to the house on the South and West sides.
• Seal holes and cracks around doors and windows. Eliminate air leaks between window air conditioners and windows with foam insulation or weather-stripping.
• Turn off power sources. TVs, computers and other electronic devices draw power when they are in standby mode or turned off but still plugged in. Plug electronics into power strips and turn off the power switch when the items are not in use.
• Switch to compact fluorescent light bulbs (CFLs), which use 75% less electricity and burn more coolly than incandescent bulbs. Keep in mind that CFLs are especially handy in hard-to-reach fixtures and won’t need to be replaced for about five years.
• Use timers and motion detectors on indoor and outdoor lighting.
• Delay heat-producing tasks such as laundry until later in the day. Wash full loads, using cold water whenever possible.
• Run the dishwasher at night, using the shortest cycle that will get the dishes clean. If manufacturers’ directions permit, turn the dishwasher off before the dry cycle or use the air dry feature if your machine has one.
• Take short showers as they use less hot water than a bath.
• Replace old appliances with new energy efficient Energy Star appliances.
• Unplug the extra refrigerator in your garage or basement and use it only when necessary. Refrigerators that are only 10 years old can use twice as much electricity as new Energy Star labeled models.

For more information on preparing your home for summer, please e-mail me. I encourage you to pass this email along to your friends and family as well.

While it is certainly understandable why some people would like to avoid paying a real estate agent’s commission—especially in today’s economy—homeowners need to be aware of the serious pitfalls that can occur before they embark on the process of selling their own home.

As a member of the Top 5 in Real Estate Network®, I have had many clients enlist my services after losing valuable time and money attempting to sell their own home. What seems like a relatively easy undertaking at first, can become a time-consuming and overwhelming process. I’d like to share with you some of the most significant snags that often occur when selling one’s own home:

1.  Ineffective marketing. Most homeowners simply lack the resources necessary to effectively market their own home. Working with a professional real estate agent, such as a member of the Top 5 in Real Estate Network®, however, usually means your home will be marketed to the widest group of potential buyers possible, both through digital and print advertising, virtual tours, and online listing portals.

2.  Mispricing your home. In order to sell your home quickly for the best possible price, pricing your home correctly is critical. This very nuanced process of choosing the right listing price, however, is always best left to a real estate professional. Most who sell their own homes price too high, resulting in their home sitting on the market for an extended period of time. And, unfortunately, the longer a home remains on the market, the less desirable it becomes for buyers.

3.  Missing documentation. These days, a real estate transaction requires more documentation than ever before. It’s virtually impossible for the average homeowner to be aware of all the forms necessary to complete a real estate deal, and missing paperwork will bring any transaction to a grinding halt.

4.  Overlooking legalities. The risk of overlooking important legalities, such as disclosure and compliance regulations that vary from state to state, is high for most homeowners. The average person is, understandably, not well versed in the many laws that govern the sale and purchase of a property.

5.  Dealing with unqualified buyers. If you accept an offer from an unqualified buyer, you can delay the sale of your home indefinitely. A professional real estate agent will take the necessary steps to work with a lender to ensure a buyer is qualified before accepting their offer.

In most cases, owners end up exhausting more dollars than they would have paid in commission when attempting to sell their own home. If you would like more information on selling your home, please e-mail me. I also encourage you to forward this email to anyone you know who might be considering taking on the monumental task of selling their own home.

Thousands of Americans are receiving income tax refunds from the U.S. government, with the IRS reporting an average refund of $2,940 this year. In the current economy, consumers can make strategic choices to make sure that refund pays off for them.

As a member of the Top 5 in Real Estate Network®, my clients often ask me about financial matters, including advice on smart ways to manage income tax returns. According to Freedom Tax Relief (www.freedomtaxrelief.com), many tax refund recipients might be thinking of creative ways to spend that cash as the economy starts to recover. But before getting carried away, they suggest thinking more long term.

Freedom Tax Relief suggests the following as the top ways to wisely spend an income tax refund:

1.  Pay down credit card and other high-interest debts (including payday loans). Few investments can top the rate of return for eliminating debt. Paying off credit card debt at typical interest rates effectively makes an investment that returns 20 percent or more per year. The only caveat: Be certain you change your mindset as well. If you pay off debts, only to charge up the credit cards or sign for a new car loan a few months later, you have ultimately gained nothing. If credit card debt is your problem, cut up or freeze your credit cards to ensure you do not re-create the same problem you have left behind. Use a debit card for future purchases that require a card.

Ready to pay down your debt? List and pay secured debts first (mortgage, car). Mortgage payments should take absolute priority. Then list unsecured debts (credit cards, loans) in order of highest interest rates. Make minimum payments on all but the highest-rate card. Use every cent of available income to make large payments on the card with the highest rate. When that card is paid off, apply the big payment plus the old minimum payment on the next-highest rate card until it is paid off. Continue until all debt is eliminated.

2.  Create an emergency fund. The Great Recession has pointed out the importance of an emergency fund. Those who do not yet have enough readily accessible money set aside to cover several months’ worth of expenses should consider a tax refund a prime opportunity to create a fund that ultimately includes 6-9 months’ living expenses. These amounts are not necessarily equal to salary. Instead, they should include only what the household would spend if it were in dire straits. House these savings in a money market fund or rolling CDs so that the money earns interest and cannot easily be spent — but can be accessed in an emergency.

3.  Make sure you have adequate insurance. Everyone should have health, auto, and home or renters insurance. If dependents rely on breadwinners’ income, look into life insurance. Consider an umbrella policy to protect from additional liability. And if the household could not survive without an income, purchase disability coverage. This is a huge savings step – one trip to the emergency room or one minor accident can easily end up costing thousands or tens of thousands of dollars out of pocket.

4.  Fund the future. Contribute to retirement savings, whether an individual or Roth IRA, 401(k) or other plan.

5.  Invest in the home. Homeowners might consider using refunds to cover major or minor maintenance to make sure no bigger (and more expensive) problems arise down the road. In addition, these capital improvements can create additional equity in a home.

No matter how big or small the amount, and despite the temptation to celebrate and splurge, make your choice on what to do with any refund carefully, experts say. Take time to make sure your money works for you and helps build wealth.

For more information, e-mail me, and please forward this email on to anyone you believe will benefit from these tips.

As a rule of thumb, bankruptcy is the least desirable option available to you when your finances have gotten out of control. However, if your financial situation has been going downhill for an extended period of time, your credit standing is probably so bad that filing for bankruptcy really won’t do much to make it worse, with one exception: A bankruptcy remains on your credit report for 10 long years. With this in mind, creditors will know that once you file bankruptcy, you cannot do so again for seven years.

As a member of the Top 5 in Real Estate Network®, I am well versed in some of the ways you—or someone you know—can start to rebuild your financial life after bankruptcy. Here are 10 tips from consumer credit experts ApprovalGuard.com:

1.  Plan your credit recovery. Take it slow and easy, do it right and don’t exceed what you can afford.

2.  Learn more about how credit works through the Internet, counseling services or a service. Do it right and know what you’re doing.

3.  If your credit report contains inaccuracies about debt that was discharged through your bankruptcy, contact the creditor or the credit bureaus to request a correction.

4.  If you didn’t have enough savings to survive a setback, get serious about savings for an emergency fund. In the current economy you need at least 12-16 months.

5.  If your problem was overspending, create a written budget and stick to it.

6.  If your problem was related to medical bills, seek out a solution for insurance.

7.  To re-establish a strong credit profile, you need a good history of payments from credit cards and installment debt such as autos, student loans or a home loan.

8.  The rebuilding process requires you to use credit responsibly. Use only a small portion (30% or less) of your available credit line and ensure you make a payment every month.

9.  When you start to re-establish your credit, consider a “secure” credit card. Such cards are usually backed by your savings account or money you place in escrow to cover 100% of your credit line in case you don’t pay your payment.

10. You may be able to apply for a home loan in as little as two years after the discharge of your bankruptcy, however, expect to pay higher fees and interest rates.

When you are ready to rebuild, make sure you understand credit and how to use it responsibly. Feel free to e-mail me for further information and please forward this e-mail to family and friends to keep them in the know as well.

Whether you’re adding a room to accommodate an expanding family or remodeling to increase value, home renovations can be one of the best investments you make, especially in today’s economy. The key to a successful remodel, however, is knowing what mistakes to avoid.

As a member of the Top 5 in Real Estate Network®, I have advised many clients on what renovations will offer the best return on their investment and pay dividends when the time comes to sell their home.

According to a Consumer Reports poll, the most popular remodeling projects for homeowners are kitchens (19%) and bathrooms (17%). In another survey, however, Consumer Reports asked 6,000 readers to reveal what went wrong when they remodeled their kitchens and baths and how much those mistakes added to the overall cost of their projects. Here’s how to avoid their mistakes and save:

1. Don’t rush in. Changing plans is the most common, but costliest remodeling gaffe. Be sure to leave time for research and create a comprehensive plan, listing every product.
2. Prepare for the unexpected. There’s a lot going on behind the walls. Unexpected water damage was an issue with 17% of bathroom remodels, while structural problems caused headaches for 10% of kitchen projects. A good contractor will be able to anticipate such problems, allowing the homeowner to budget accordingly.
3. Don’t chase the “low ball.” Contractors are lowering their profit margins due to the tight market, but they often make up their costs in labor or other areas. Readers who went for “low-ball” pricing ended up spending a median of $1,500 extra for labor on their kitchens and $1,000 extra on their bathrooms. Don’t sign a contract with a lot of open-ended amounts for products and materials—these are called “allowances,” in contractor speak.
4. Get the paperwork in order. Have the contractor attach copies of his or her up-to-date license, insurance and workers’ compensation policies to the written contract. He or she should also get permits and provide a lien waiver when the job is done; this will keep suppliers from contacting the homeowner for unpaid bills.
5. Focus on the boring bits. Specifying lighting and placement of trash cans are not much fun, but are critical to the process. For example, the proper exhaust fan will prevent mildew in baths and vent odors in kitchens.

Following the above advice will help ensure a successful—and profitable—remodel. For more information or for contractor referrals, please e-mail me. And please forward this email on to anyone you know in the midst of remodeling—don’t let them make these same mistakes!

Certain home improvements will achieve a higher percentage returned than others. You want to focus on functional investments such as upgrading your kitchen rather than lifestyle home improvements like a pool.

The following home improvements will get you the highest return on your investment:

Give your kitchen and bathroom a face-lift
A minor kitchen remodel–painting, refinishing surfaces and upgrading appliances–will return more than a full revamp. Consider cosmetic upgrades in your bathroom such as new plastic laminate counter tops and new toilet seats. Kitchens and bathrooms should have modern lighting as well as new faucets, cabinet hardware and cabinet door faces. These key spaces should look bright and clean.

Add a bedroom or bathroom if necessary
These additions should be done in relation to other homes in your neighborhood. For example, if houses in your neighborhood have an average of 3 bedrooms and 1.5 baths and you have 3 bedrooms and 1 bath, adding a ½ bath will definitely pay off. If all the homes in your neighborhood have at least 3 bedrooms and you only have 2, it will put your home at a disadvantage. If you can work this into your budget, adding another bedroom will translate into a higher return on investment.

Paint a fresh coat
A freshly painted home–especially exterior–is more inviting to potential buyers. Definitely paint the front door and window shutters, and try to repaint any rooms inside the home that have cracks or stains. Painting the interior of your home is quicker than painting the exterior, and is a faster way to increase the value of your home than a full room remodel. Clean walls and trim make a house look sharp.

Buy new windows
New windows can drastically change the look of a room and replacing single pane windows for high-end double pane windows not only looks better but will save you money on heating bills. If you decide to keep the current ones, however, make sure window panes and windows are clean and shiny. Dirty windows make a home look messy.

Restore the siding
Vinyl siding is popular, because it is low maintenance and lasts a long time. In neighborhoods where vinyl siding has become more common, shiny new siding can add value to your home. If you don’t think it’s necessary to re-do the whole house, keep in mind that it is possible to replace a single vinyl panel of siding.

Most of us know that adopting an environmentally conscious or “green” approach to life can benefit the planet and its future generations. But did you know that greening your home can also benefit your bottom line in terms of energy savings and tax credits?

I’ve learned a lot of the latest green building strategies from clients and home builders I deal with as a Member of the Top 5 in Real Estate Network®. I thought I’d share some innovative green building ideas from the National Association of Home Builders (NAHB, www.nahb.org) in case there’s a remodel or new-home build in your future:

1. The roof. According to NAHB, 75% of new homes use “oriented strand board” (OSB), an engineered wood product that does not require the use of large trees in its production, to sheathe roofs and walls. Additionally, durable roof coverings, such as steel and fiber cement, reduce the need for roof replacement and are a key part of many solar roofing products that lock in heat during winter and help keep homes cool in summer.

2. The windows. Energy-efficient windows that incorporate advanced technologies like low-emittance glass coatings, keep heat inside in winter and outside in summer. “Passive” solar design features like large, south-facing windows, also help heat the home in the winter and allow for abundant natural lighting.

3. The walls. Vinyl siding on exterior walls saves money on installation and maintenance; fiber-cement siding is termite- and water-resistant and warrantied to last 50 years. Increasing the amount and R-value of insulation is a cost-effective way to save energy and help reduce heating and cooling bills, which account for at least half of all energy use in the home.

4. The outside. “Xeriscaping,” or using native plants, can significantly reduce the need for watering, fertilizers and herbicides, and preserving trees on your property reduces energy costs by providing shade in summer and a wind barrier in winter. Also consider a covered entry for your front door, which can help prevent water intrusion and costly repairs.

5. The appliances. According to NAHB, the energy efficiency of refrigerators and freezers has tripled over the last three decades. Front-loading washers use about 40% less water and half the energy of conventional models. New toilets have redesigned bowls and tanks that use less water, while advanced shower and sink faucet aerators provide the same flow regardless of reduced water use.

Please consider the above green building ideas for your next construction project and forward this e-mail to anyone else who may be in construction mode. I’d be happy to answer any questions you may have or point you toward further green resources, so feel free to e-mail me for more information.

If you’re one of the many who have recently taken advantage of the first-time or move-up home buyer tax credit, there’s a happy move in your future. Unfortunately, I’ve seen the stresses of moving cast a cloud over the excitement my clients feel about heading to their new home, making for a nightmarish experience instead of a momentous occasion.

Thanks to my network of leading real estate professionals, the Top 5 in Real Estate Network®, and my relationships with top moving experts, I can offer several tips to make moving a more streamlined, more palatable experience:

• Put your move details in writing.
Use a large notebook or binder to centralize all the important details of your move. It should contain detailed lists, including an inventory of boxes. Supplement this with a computer printout of box contents and e-mail it to yourself and a couple of other trusted sources as a back-up.

• Order boxes and moving supplies as far in advance as possible.
It’s never too early to start packing as we all have items that are not currently in use—think winter clothes, your baseball card collection, holiday decorations. Moving companies may allow you to return unused boxes, so order more than you think you’ll need, by 20%. Invest in the right tape to keep boxes securely fastened, some new Sharpie pens, and labels to color-code your move.

• Document your AV details.
Take photos and notes on how your media equipment is set up: television, sound equipment, computer equipment, etc., in order to avoid an AV nightmare in your new home. Label all remotes and wires as well.

• Plan for your pets.
Moving can be particularly stressful for animals. Consider leaving them with a friend or at a reputable pet boarding service.

• Plan for valuables and critical documents.
Most homeowners insurance will not cover property in transit, so consider insuring certain items separately. Take photos for documentation to support loss or damage claims, and carry irreplaceable and legal items, like passports and birth certificates, with you.

• Choose a reputable moving company.
Good companies that can guide you through the process will have a proven track record. Ask your friends and your real estate agent for referrals.

• Keep your moving receipts for income tax deductions.
In many cases, moving expenses are deductible from federal income taxes. If you are moving because of a change in employment, you may be able to claim this deduction even if you do not itemize.

For more information on making your move as painless as possible, please e-mail me—and please feel free to forward these tips to any family and friends with a move in their future.

Did you know that in 2009, the Federal Housing Administration (FHA) insured nearly 30% of the single-family mortgage market and that more than 50% of all first-time home buyers used FHA programs?

In today’s challenging credit climate, many home buyers and homeowners are turning to FHA for insurance, to purchase loans, and for refinancing options to get out of risky ARMs or subprime loans. As a Member of the Top 5 in Real Estate Network®, I have access to information from the National Association of Realtors® (NAR) regarding recent and upcoming changes to FHA’s single-family program that could impact the use of these important programs for consumers in the future. According to Jerome Nagy, senior regulatory policy representative at NAR, in order to replenish its dwindling reserves, FHA has implemented or proposed the following changes:

1.  Mortgage Insurance Premium (MIP)
FHA has increased the upfront MIP from 1.75% to 2.25% for borrowers while it awaits legislative authority to increase the annual premium. FHA stated it will decrease the upfront premium when they can increase the annual premium.

2.  Credit Score Changes
FHA has proposed that borrowers with a credit score below 580 be required to make at least a 10% down payment. The minimum down payment will remain at 3.5% for all other borrowers.

3.  Seller Concessions
FHA intends to propose a rule to decrease allowable seller concessions from 6% to 3%. NAR plans to argue against this decrease since closing costs differ greatly among states, and with fees on services (such as appraisals) increasing, seller concessions can be a vital part of closing the transaction.

4.  FHA Loan Limits
Current FHA loan limits are as high as $729,750 in high-cost areas, and are set to expire at the end of the year and revert to lower amounts, potentially putting a damper on a housing market rebound. A decrease of current limits would adversely affect 612 counties in 40 states and the District of Columbia, reports NAR, which is urging passage of legislation to make the loan limits permanent.

5.  Condominium Rules
FHA is delaying implementation of “Mortgagee Letter 2009-19” and making temporary enhancements to the policy instead, such as eliminating the owner-occupancy requirement for FHA condo mortgages and reducing the number of units sold prior to FHA’s endorsement of a unit from 50% to 30%.

Please feel free to e-mail me for guidance on the above FHA programs and how changes might affect your particular situation. Also, please pass this article on to anyone you know who could be impacted by changes to FHA policy.

According to the extended tax rule, first-time home buyers, or resident home buyers interested in a new home, must purchase their home or be locked into a contract to close by midnight on April 30, 2010, and must close by midnight on June 30, 2010. The Internal Revenue Service considers the purchase date to be the date when the home closing takes place and when the title to the property is transferred to the new owner.

“First-time home buyers who enter into a contract in the next 30 days are on track to claim a significant tax benefit, which allows them to claim 10% of the purchase price of their home, up to $8,000 for married taxpayers filing joint, or $4,000 for married taxpayers filing separately,” said Mark Steber, chief tax officer, Jackson Hewitt Tax Service Inc. “Although much of the talk has been about the First-Time Home Buyer credit and now its upcoming expiration, long-time resident homeowners who meet the qualifications need to know that the credit will expire for them on the same date, and that they must close by June as well.”

Here are some reminders about who is eligible for this credit – and how to claim it:

- The First-Time Home Buyer credit is allowed in full for those with incomes up to $125,000 ($225,000 if married filing joint). The credit is reduced for taxpayers with an income between $125,000 and $145,000 ($225,000 and $245,000 if married filing joint) and is not available for taxpayers with an income higher than $145,000 ($245,000 if married filing joint).

- To be considered a first-time home buyer, an individual must not have owned a principal residence during the three-year period prior to the purchase. For example, the credit would not apply to a couple where one spouse owned a principal residence in the three years prior to purchasing a new home, even if the other spouse purchases the new home as a sole owner.

- Taxpayers (and their spouses) who have lived in their home for five consecutive years out of the eight years preceding closing on a new house may qualify for a reduced credit ($6,500 or $3,250 for those who file separately).

According to Steber, it is still possible to claim the credit on a 2009 tax return if a home is purchased after the April 15 filing deadline. To do so, save all of the documentation related to the purchase and speak with a tax preparer about amending a 2009 tax return.