Federal tax incentives for upgradation of homes

With today’s increasing energy costs, it makes sense to live in an energy efficient home. If you are contemplating a shift to the San Jose area and the home of your choice is not energy-efficient, there is no need to rule it out.

Under the American Recovery and Reinvestment Act of 2009, federal tax incentives are available for upgrades to existing homes. Such incentives have been increased to $1500 based on 30% of the improvement cost. These cover heating and air-conditioning upgrades and building envelope improvements including window insulation. 30% credits are available without any ceiling for on-site renewable products like solar hot-water, solar photovoltaic systems, geothermal heat pumps and small wind-powered systems.

The additional expenditure in upgradation of a home is worth it, in terms of savings in utility bills. Upgradation to energy-efficient standards is generally focused on improved performance and efficiency of lighting, heating, cooling, water usage and appliances. A professional energy auditor could conduct a study and furnish a report with suggestions and possible cost savings.

Get a realtor to help you find an energy efficient home

Dale Warfel is a realtor who has been working in the Bay Area for nearly 13 years. He is aware of the shift towards environmentally-friendly, energy-efficient homes and the benefits in such an investment. Dale Warfel will recommend a reliable energy audit company to study a home in San Jose or a neighborhood of your preference and evaluate the savings against increased cost of upgradation. Talk to him at 408.624.6202 or visit his website at www.dalewarfel.com. Above all, if he shows you a home you like and its not energy-efficient, don’t let that deter you.

The U.S. Economy and Real Estate

According to Bloomberg.com, The U.S. economy grew in the third quarter for the first time in more than a year, propelled by stimulus-driven gains in consumer spending and home building. It touched 3.5% from July through September after shrinking the previous four quarters. Household purchases climbed 3.4%, the most in more than two years. While all this augurs well for the future, pessimists predict a slump in the 4th quarter predicting negative growth of a ‘W’ recession. Nonetheless the rate of job losses fell for the first time in months, which is promising. Job losses being a lagging indicator are a positive sign that there may in fact be a genuine recovery.

Residential construction jumped at a 23 percent annual rate last quarter, the first gain in almost four years and the biggest since 1986. The rebound added 0.5 percentage point to growth. Homebuilding rebounded as sales climbed, propelled in part by an $8,000 tax credit for first-time buyers which has since been extended and Federal purchases of mortgage-backed securities that helped lower borrowing costs.

Real Estate in San Jose

Dale Warfel, a licensed realtor in the San Jose area has for the last few weeks, been advocating investment in real estate, prior to a U turn in prices. Dale Warfel has at his finger tips, the prevailing real-estate statistics in the Bay Area. Do email him at Dale@DaleWarfel.com for a market update on homes in Willow Glen, Almaden Valley and Santa Teresa or any other location in the vast territory he covers. Meanwhile click on his website www.dalewarfel.com for a cross-section of homes for sale in his portfolio.

Is buying a home a sensible investment?

This is a difficult question to answer in the present depressed economic scenario. In normal times when the economy is on an even keel, the thumb-rule in real estate is that a homeowner can reasonably expect an appreciation of five percent per year on the value of the property. Of course other factors will determine this appreciation, like the neighborhood, the amenities and facilities surrounding it. Now this does not sound an attractive return when compared with an investment in treasury bonds, the safest investment of all. For that matter, in normal times an investment in stocks can fetch far more attractive returns. But as mentioned before, these are uncertain times when investment in stocks may not be the most intelligent decision.

Take a practical example in a house investment. Suppose a homeowner invests $400,000 in a house with a 20% down payment of $80,000, which is the homeowner’s capital investment and the balance on mortgage. At a conservative annual appreciation of 5% at the end of the first year, the house would have appreciated by $20,000. This amounts to a 25% return on the initial investment of $80,000, a handsome return-on-investment by any standard.

No doubt mortgage repayments and property taxes are involved. But the interest on mortgage and property taxes are both tax deductible. Added to that is the current tax incentive of $8,000 for first time homeowners. Effectively, the government in its largesse is subsidizing your purchase of a home.

Invest in the California bay area

Dale Warfel is an experienced real estate agent who has worked in the Bay area, California for nearly thirteen years now. He is thoroughly conversant with the economics of a house investment in any district of the territory he covers. Dale Warfel knows the rates of appreciation of every neighborhood and can work out a viable proposal. Do visit his website at www.dalewarfel.com which has a questionnaire under ‘Contact Me’. Dale Warfel will be happy to answer any queries you might have. He can be reached on 408.624.6202.

If you’re selling: Showcase Your Home

When you’ve thought about selling your home and made your decision, you put your home on the market. Prospective buyers need to know what a great home you have. An ‘open house’ is the best way of getting your message across. If your home is in the San Jose area, Dale Warfel a real estate agent backed by a wealth of experience, would be the best person to point you in the right direction. He will advise you on how to present your home for showing. There are a number of little bits and pieces involved in a home-showing ‘open-house’ like publicity, signs etc. Dale and his team will take care of all that.

Dale Warfel will take care of business

As the homeowner, the best way you can contribute to the exercise is by being absent while your home is being viewed. Dale Warfel is skilled and adept at highlighting the finer points and subtly deflecting any deficiencies. If there are any downbeat observations, he plays them down with constructive suggestions. Each person has different likes and dislikes; and tastes seldom run on parallel lines. No homeowner would like to hear negative comments. An open house with the seller being absent makes Dale’s task easier.

Do contact Dale Warfel by visiting his website at www.dalewarfel.com. He has a special page for prospective sellers at
www.dalewarfel.com/Nav.aspx/Page=/Forms/ContactForm.aspx.

Dale Warfel has been selling homes across the length and breadth of the San Jose area for over a decade now. He is abreast of the pluses and minuses of each district and the constantly changing market prices in the current uncertain economy. Nonetheless Dale Warfel has established himself as an adroit realtor and skilled negotiator who fetches his client the best prevailing price.

What should a real estate agent know?

Real estate agents live in the belief that the more they know, the better they are able to negotiate on a client’s behalf. But this is not always the case. Real estate agents could be in three possible positions:

Single-agency which means they represent the buyer exclusively. Nonetheless it is incumbent on the seller to pay commission to both brokers and sub-agents i.e. the broker/agent who has listed the property and the broker/agent representing the buyer.

Sub-agency where the agent represents the seller exclusively and collects commission from the seller.

Dual-agency where the broker/agent represents both buyer and seller. This generally arises when two agents represent the buyer and seller separately in a transaction but work for the same broker. Such a situation is open to conflict of interest. The law however restricts the dual agent from divulging any information to either buyer or seller that has been given in confidence.
This relates specifically to price ceilings and counter offers made by other clients.

Some states protect the clients – buyers or sellers – by requiring the agent to disclose his/her status before entering into negotiations. Such a situation will determine the degree of trust the client can repose in the agent.

A buyer can also appoint his own exclusive agent, the commission for which the buyer bears. But in such a condition the exclusive agent can be privy to more information than otherwise.

A realtor who represents you

Dale Warfel is a realtor who operates in the San Jose area and has represented buyers and sellers with transactions in prestigious neighborhoods like Almaden Valley, Rose Garden, Willow Glen and Santa Teresa. Dale Warfel is known for his negotiating skills and thorough knowledge of applicable California laws. Do visit his website at www.dalewarfel.com for current listings.

Some Dos and Don’ts for home buyers

The prevailing recession has turned the real estate industry into a buyer’s market. The market is flooded with an enormous choice of listed homes, many at prices well below what they are actually worth. Despite this, a first time home buyer should exercise caution and avoid all possible pitfalls. The following are some useful suggestions to keep in mind:

Ensure you have pre-approval for a home mortgage which should be given to you in writing. There’s nothing more dispiriting than a last-minute credit problem that requires resolving.

Approach an experienced real estate agent who has been recommended. Nonetheless check out his references and website. Meet him/her first and satisfy yourself that he/she understands your requirement and meets your needs. If you’re planning to buy a home in the San Jose neighborhood, Dale Warfel is an experienced realtor who knows the area intimately.

Before making an offer, get a comparative market analysis. This is where Dale Warfel with his vast experience can be of help. Dale Warfel will give you a fair estimate with the justification to support his calculation.

Be dispassionate when making a selection. Every home has some disadvantage but never compromise by accepting one with a serious defect.

Ensure you have appropriate contingency clauses built into your preliminary agreement and that the seller consents to a professional inspection.

Get the right advice on buying and selling

Dale Warfel will give you all the professional guidance as a potential home buyer. Do contact him at 408.624.6202 for a quick response. Meanwhile visit his website at www.dalewarfel.com for useful advice to buyers and see some market listings.

Property Value Assessment

Assessing the correct price for a property is the first step towards concluding a transaction for both buyer and seller. Some of the variables that go toward property price determination are as follows.

One of the prime considerations is the neighborhood. The prices at which comparable properties have been bought and sold in the recent past are a useful yardstick. A neighborhood which is conveniently located and where the streets and houses are well maintained, commands premium prices.

Schools in the area are another factor. A neighborhood with good, easily accessible schools, adds to the value.

Facilities such as shopping and leisure activities are important. Suitably located shopping centers and facilities for recreation and entertainment are a big plus point.

In this day of high crime, the crime rate of a locality plays a big role. A high crime rate is a deterrent which has a negative impact on property price in a neighborhood.

City planning or zoning which projects the future plans of the neighborhood has an important bearing. If better amenities are on the drawing board for the near future, then this reflects on enhanced property value.

The economic situation is a large determinant. In the current bleeding economy for example, property prices are depressed. However when the economy recovers it will reflect in rising property value.

Overall, it is difficult to put a price on a property without the necessary expertise. This is where the services of a good, experienced realtor become invaluable. Dale Warfel is a real estate agent in the San Jose area. He has been in the business long enough to have the answers to all the foregoing variables. Whether you are buying or selling, Dale Warfel will give you a free assessment of the price of a San Jose property.

Do visit his website at www.dalewarfel.com. It contains invaluable information for buyers and sellers. Dale Warfel can be contacted at 408.583.3681.

Market Conditions dictate Your Offer Price

Today’s depressed economic environment makes the real estate picture a ‘buyers market’. Many properties are put up for sale and may remain on the market for an extended period of time. Offers are sporadic and well below expectations. In some situations when the price of the property is commensurate with the market, a counter-offer is made that is well below a fair price. A property may remain unsold for a period that would force the owner to rethink the asking price. If the seller is determined and constrained to sell, even a low offer becomes a starting point to open negotiations.

Conversely when the economy is flourishing the real estate market becomes a ‘sellers market’. At this time a seller can start with a slightly inflated asking price as the basis of negotiation. The response is generally results in multiple offers. Sometimes when a buyer is determined, homes are known to be sold, above the asking price. Often a deal is struck within days of the property being listed.

Buying a home – an optimistic move

The recent global economic depression appears to have played itself out with an optimistic outlook for the months ahead. The present transition phase is the best time to consider a property investment. If you are thinking of buying a home in the San Jose area, either as an investment or as a residence, then Dale Warfel an experienced realtor will be of immeasurable assistance. Dale Warfel has been dealing in real estate in the Bay Area for over decade now and is fully conversant with property prices in all environments. He is a real estate agent who stands by his client till every last detail is complete. Do visit his website at www.dalewarfel.com to know more of the current list of San Jose properties.