There’s an App for That: Generational Home Searches

Whether they are using an app on their phones or driving around their neighborhoods looking for open house signs, home buyers of different generations search in their own, unique ways. However, there are also more similarities than one may think. For example, the oldest and youngest generations of home buyers both did not typically view any homes solely online without viewing them in person. Additionally, while 95% of all home buyers used the internet in their search, the most used information source by every generation was a real estate agent. Let’s look at how one’s generation can shape their home search using data from the 2022 Home Buyers and Sellers Generational Trends report:

Table: Home Search, by Generation

Among all generations of home buyers, the first step taken in the home search process was to look online for properties. Older baby boomers contacted a real estate agent as a first step more often than other generations. Millennials were more likely than others to first talk to friends or relatives about the buying process, while the silent generation were most likely to first drive past the homes.

Table: First Step Taken During the Home Buying Process, by Age

Buyers typically searched for eight weeks and looked at a median of eight homes. The length of the home search was the longest for older millennials and older baby boomers, at 10 weeks, and shortest for the silent generation at just six weeks.

Gen Xers viewed the most homes with a median of eight homes. Younger millennials and the silent generation typically did not view any homes only online without seeing them in person.

For more than half of home buyers, the most difficult step in the home buying process was finding the right property, at 56%, which was even higher for younger millennials at 64%. As this group typically has the highest share of first-time buyers, millennials also were more likely to consider understanding the process and steps most difficult.

Table: Most Difficult Steps of Home Buying Process, by Age

Ninety-five percent of home buyers used the internet to search for homes. As a result of an internet home search, buyers most often walked through the home that they viewed online, followed by viewing the exterior of homes.

Table: Actions Taken as a Result of Internet Home Search, by Age

The most useful website feature to buyers was photos for nearly nine in 10 buyers under the age of 57. Detailed information about properties for sale was also very important to all age groups. Gen X was more likely than other generations to place a high value on virtual tours.

When asked where their internet searches were conducted, home buyers were split; they typically conducted 50% of their search on a desktop/laptop and 50% on a mobile device(s). Those aged 56 and younger were more likely to use mobile devices, and those 57 and older were more likely to use a desktop/laptop.

Bar graph: Percentage of Time Using Devices in Home Search, by Age

Buyers of all generations were overall very satisfied with their home buying process. Buyer satisfaction generally increased with age.

“Copyright National Association of REALTORS®. Reprinted with permission.”

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7 Super-Easy Cleaning Recipes for the Most Awesome-Smelling Home

Essential oils are the key to these sweet-smelling (and highly effective!) homemade cleaners.

Illustration of essential oils for DIY cleaning products
Image: Aninata/Getty

If you get light-headed just reading the ingredients on your cleaning products, take heart: There’s another way.

These make-in-minutes, super-cheap recipes create potions that use sweet-smelling essential oils that won’t fumigate your home, while having superpowers to fight grime and bacteria.

And much like a food recipe you may try, you can modify the oils to suit your own olfactory senses.

Citrusy All-Purpose Cleaner

Recipe for homemade citrusy all-purpose cleaner
Save the recipe card.

Why Use Filtered Water?

It doesn’t leave a residue like regular tap water can. Distilled works, too.

  • 15 drops of essential oil of lemon
  • 5 drops essential oil of sweet orange
  • 5 drops essential oil of rosemary
  • 1/4 cup distilled white vinegar
  • 1-1/2 cups filtered water

Funnel all these ingredients into a spray bottle, seal, and gently shake. There’ll be a battle of odors here, with the acidic vinegar likely winning out against the sweet-smelling oils, but don’t let this deter you.

The vinegar scent disappears quickly, but that citrusy, herby zing lingers on. And these oils aren’t just there for their scent alone. Lemon oil is a natural disinfectant, orange oil busts grease, and rosemary oil has some antibacterial and antiseptic qualities.

Lemon-Scented Window Cleaner

  • 2 tablespoons distilled white vinegar
  • 2 cups filtered water
  • 10 drops essential oil of lemon

Invest in Dark Glass Spray Bottles

It’ll protect the oils from breaking down. Plus, plastic bottles can leach chemicals into your potions.

Mix all these ingredients in a spray bottle.

Spray on any glass surface and polish with a microfiber cloth. You’ll have sparkling panes and mirrors in no time, and that wondrous essential oil of lemon will kill off the bacteria left behind by mucky fingerprints.

Eucalyptus Toilet Bowl Cleaner

  • 25 drops essential oil of eucalyptus
  • 1/3 cup Castile soap
  • 2 cups filtered water
  • 1-1/3 cups baking soda

Fill a squeeze bottle with the water, baking soda, and eucalyptus oil. 

Seal the bottle and shake. Next, add the Castile soap. Shake again. Squeeze around the bowl. Leave for 15 minutes, then scrub with a toilet brush, flush, and you’re done.

Aside from having a deliciously fresh aroma, eucalyptus is a natural germicide.

Lavender-Thyme Dish Cleaner

Recipe for homemade lavender-thyme dish cleaner
Save the recipe card.
  • 20 drops essential oil of lavender
  • 10 drops essential oil of thyme
  • 5 drops of essential oil of tea tree
  • 1 cup filtered water
  • 1 cup liquid Castile soap
  • 2 tablespoons baking soda

This one does require some stovetop time: Bring the water to a boil, then mix in the oils. (Thyme and tea tree goes to war on salmonella while emitting a pleasant aroma along with lavender.) Add the rest of the ingredients slowly. After that, remove from heat and allow to cool.

Once cooled, pour into a squeeze bottle. Shake gently before using.

Peppermint-Lavender Floor Cleaner

  • 5 drops essential oil of peppermint
  • 5 drops essential oil of lavender
  • 5 drops of essential oil of tea tree
  • 1/4 cup distilled white vinegar

Pour the vinegar into a bucket, fill that bucket with hot water and add the oils.

Works on stone, tile, and wooden floors. Not only is peppermint oil anti-bacterial, many believe it can deter mice and other pests.

Tea tree oil is antibacterial, antiseptic, and antifungal. Not only is lavender oil antibacterial, too, but its aroma also has soothing properties that can calm your whole household.

Lavender Linen Spray

  • 6 drops of essential oil of lavender
  • 2 tablespoons witch hazel
  • Filtered water

Fill a spray bottle with the witch hazel and lavender. Shake, top off with water, shake again, and then spray away.

Cinnamon and Sandalwood Air Freshener

Recipe for homemade cinnamon and sandalwood air freshener
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  • 10 drops essential oil of cinnamon
  • 10 drops oil of sandalwood
  • 1 cup filtered water

A spritz of this subtle-but-effective scent erases stinks in seconds. Fill a spray bottle with the water and the oils. Cinnamon scent boosts brain power and sandalwood is calming — perfect for a hardworking, stressed out home!

Essential oils do mix, so if any of the scents in these recipes don’t appeal, play around with other oils. Just keep the quantities the same. For example, if you switched sandalwood for orange oil in this air freshener, stick to the 10 drops specified in the recipe.

“Visit HouseLogic.com for more articles like this.  Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.”

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4 Smart Home Devices

4 Smart Home Devices: Which Are Right for Your Home?

Smart home devices can be clever choices for your home and your budget.

smart home devices woman adjusting led lights with mobile phone
Image: Carlos G. Lopez/Getty

When you’re not home, little doubts can plague you. Did I lock the door? Did I leave a key for the housekeeper? Is the AC still on full blast? Smart home devices can resolve those questions and ease your mind. They can also make your home more comfortable and convenient, and save you money. 

Once the exclusive domain of the super-rich and alpha geeks, smart home devices have become more common, user friendly, and affordable. You can equip your home with some basic smart devices like a smart thermostat, smart lighting, and smart door locks for $1,000 or less. You can run these devices with your smartphone or tablet. And in many cases, you can install them yourself; no electrical engineering degree required. 

Here’s what you need to know to get started in choosing the right smart home devices for your home and your budget.

What Are My Smart Home Goals?

Start by deciding what you want to accomplish, and that will lead you to a relevant device. If you want more security, consider a smart door lock. Are you looking for more comfort and convenience? Check out smart lights that come on right before you get home from work. Want to save money? A smart thermostat that uses artificial intelligence to control the temperature in your house may be the way to go. Do you crave a cool, high-tech gadget that’s downright Jetsons-esque? Go for a smart appliance like a fridge that can stream cooking videos.

Do I Need a Hub?

You don’t necessarily need a hub. In the early days of smart home tech you needed a dedicated device that tied all your smart home devices together. Back then, hubs were problematic, because not all devices were compatible with them, and their software needed to be updated regularly. Those old hubs are near relics now. These days, you can run your smart home devices through an app on your phone or tablet. Wi-Fi and the cloud have been game changers in smart home technology because they enable many devices to network together regardless of the make and the brand. 

Many homeowners use a voice assistant like Siri or Alexa as a de facto home hub by tying all their smart home devices to it. Once you do that, you can control your devices with a single unit. If you tie your smart home door lock and smart home appliances to your voice assistant, you can say, “Siri, preheat the oven to 350 degrees and unlock the door,” and consider it done. 

“Voice assistants have made so much more possible in the area of smart home devices,” says John Carey, vice president of Designer Appliances, a New Jersey retailer that specializes in smart appliances. “They can work with so many different products.”

Do I Need a Wi-Fi Connection?

You can run your devices by connecting them to a hot spot device, like a MIPS (Microprocessor without Interlocked Pipelined Stages), which lets you tap into a cell phone signal. A MIPS is basically a little computer that hooks your smart devices to the cloud via a cell phone network. You can also run smart devices through a hot spot on your phone or tablet. But you’ll get the best experience with Wi-Fi hooked up to the internet, Carey says. 

Can Smart Homes Get Hacked?

Although smart homes can be hacked, the damage a hacker can do is limited, says Christy Roth, director of offer management, home and distribution software for Schneider Electric in Nashville, Tenn. “Hackers can’t get to your bank account through your smart refrigerator,” she says. “But they could see what’s in your refrigerator or turn it off.” 

Although appliances can be at risk, homeowners are typically more concerned about risk tied to devices like smart locks and cameras. Carey says you’re better safe than sorry when it comes to security with smart home devices and appliances. “We recommend people set up a guest network that’s separate from their main network and connect all their smart devices to that. That way hackers can’t get on your network and onto your computer, where you store sensitive information.”

4 Smart Home Device Categories

Here’s a quick primer on four of the most popular smart home devices and some pros and cons for each.

1. Smart thermostats — They’re the top-selling smart home device. Around 33 million households in the United States had one as of 2020. “They’re the most natural place to start if you want to get into smart home tech,” Roth says. Smart thermostats let you create programmable temperature settings based on your schedule, the weather, and your own needs. Many smart thermostats incorporate artificial intelligence technology to learn your schedule and adjust heating and cooling according to when you’re home. They’ll turn off the AC while you’re at work and turn it on 30 minutes before you get home from work each day. “They definitely pay for themselves with energy savings,” Carey says.

Pros

  • Smart home thermostats reduce the use of heating and cooling systems when nobody is home. If your HVAC runs less, your utility bill will be lower.
  • They alert you when it’s time to change the filter and can tell you when your last maintenance check was, saving you costly repairs.

Cons

  • They can be complex to operate. “Setting up the profiles for vacation and sleep isn’t easy, so people can end up ignoring them or overriding them,” Roth says. “And the AI can annoy some people so that they override it. That defeats the purpose of having them.” 
  • Some require professional installation. 

2. Smart lighting  This includes smart lightbulbs or smart switches. Both can be controlled remotely, via your smartphone when you’re miles away or with a voice assistant when you’re at home. You can program them to turn on or off at certain times and control their brightness.

Pros

  • Smart bulbs are simple to set up; you can screw them into a light fixture yourself.
  • They are easy to scale up; buy more to enlarge your smart lighting system.
  • They let you use whatever bulb you want because the switch is hooked to the cloud, not the bulb.

Cons

  • You can’t get smart bulbs to fit every fixture.
  • They don’t work well in fixtures tied to dimmer switches.
  • They require rewiring to install. You’ll need to call a pro.

3. Smart appliances — Anything that runs on electricity is game for joining the Internet of Things, the ever-growing network of connected devices that talk to one another via the cloud. So, you can get smart microwaves that let you download cooking instructions for frozen food, smart ovens you can preheat before you get home, and smart refrigerators that alert you when food hits its expiration date. “Our biggest seller is smart washing machines,” Carey says. “They’ll alert you when your laundry is done, so you can get it into the drier before it sours.” 

Pros

  • They look cool. What’s not to love about a refrigerator with a touchscreen that lets you see inside the fridge without opening it?
  • They can cut your electric bill. Some smart appliances can calculate energy rates and schedule themselves to run during off-peak hours when electricity rates are lower.  

Cons

  • They’re expensive to buy and repair. 
  • If your internet goes down, your smart appliances become dumb ones.

4. Smart door locks — They let you lock and unlock your house with the tap of a finger or a voice command. No keys required. Smart locks enable remote access, so you can unlock a door to let in a guest while you’re at work. Some locks allow you to monitor entry and exit logs in real time, so you can see if the kids got home from school or if the dog walker arrived on time. Some allow you to set up entry codes that work for only a certain period of time, so you can control who has access to your house.

Pros

  • You don’t have to dig in your purse or pockets for keys. 
  • You can see who comes and goes at your house.
  • Instead of giving out house keys to everyone who needs to get into your home, you can set a code for the cleaning person or the dog walker that only they use. 

Cons

  • They run on batteries. If the battery goes dead, you’re locked out.
  • If the power goes out or your Wi-Fi goes down, you won’t be able to operate the lock remotely.
  • Like all smart tech, smart locks can be hacked. But they have a system that will notify you or the police of an unauthorized entry.

Smart devices are a smart investment as long as they add comfort, convenience, or savings that you value. You’ll be more likely to get what works for you after exploring the most popular options and their pros and cons.

“Visit HouseLogic.com for more articles like this.  Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.”

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Competition High, 5 Offers Per Home

March 21, 2022

The spring market is already blooming, and so is the competition. Buyer competition intensified ahead of spring in February and likely will intensify further over the next few weeks.

On average, there were nearly five offers for every home sold in February, higher than in recent months, according to the February 2022 REALTORS® Confidence Index Survey. Real estate professionals who were surveyed reported more than five offers, on average, in Massachusetts, Georgia, Texas, Colorado, Utah, Washington, and California.

Nationwide, 48% of buyers’ offers were above the list price, according to NAR’s data. On average, those offers were about 2.9% above the list price; on the median-priced home, that would be about $10,000 over the asking price. However, 13% of the offers were 10% above the list price.

Real estate pros report that in general their buyers typically lose two homes before succeeding on the third try, according to the study.

Homes are selling quickly under the intense competition. Eighty-four percent of listings were on the market for less than a month.

“Competition could intensify in 2022 before waning in 2023 as home buyers compete to lock in at the current rates,” Gay Cororaton, a research economist for NAR, writes on the association’s blog. “Mortgage rates may rise more steeply in 2023.” 

“Copyright National Association of REALTORS®. Reprinted with permission.”

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7 Reasons to Work With a REALTOR®

REALTORS® are members of the National Association of REALTORS® and subscribe to its strict Code of Ethics. When you’re buying a home, here’s what an agent who’s a REALTOR® can do for you.

  1. Act as an expert guide. Buying a home typically requires a variety of forms, reports, disclosures, and other legal and financial documents. A knowledgeable real estate agent will know what’s required in your market, helping you avoid delays and costly mistakes. Also, there’s a lot of jargon involved in a real estate transaction; you want to work with a professional who can speak the language.
  2. Offer objective information and opinions. A great real estate agent will guide you through the home search with an unbiased eye, helping you meet your buying objectives while staying within your budget. Agents are also a great source when you have questions about local amenities, utilities, zoning rules, contractors, and more.
  3. Give you expanded search power. You want access to the full range of opportunities. Using a cooperative system called the multiple listing service, your agent can help you evaluate all active listings that meet your criteria, alert you to listings soon to come on the market, and provide data on recent sales. Your agent can also save you time by helping you winnow away properties that are still appearing on public sites but are no longer on the market.
  4. Stand in your corner during negotiations. There are many factors up for discussion in any real estate transaction—from price to repairs to possession date. A real estate professional who’s representing you will look at the transaction from your perspective, helping you negotiate a purchase agreement that meets your needs and allows you to do due diligence before you’re bound to the purchase.
  5. Ensure an up-to-date experience. Most people buy only a few homes in a lifetime, usually with quite a few years between purchases. Even if you’ve bought a home before, laws and regulations change. Real estate practitioners may handle hundreds or thousands of transactions over the course of their career.
  6. Be your rock during emotional moments. A home is so much more than four walls and a roof. And for most buyers, a home is the biggest purchase they’ll ever make. Having a concerned, but objective, third party helps you stay focused on the issues most important to you when emotions threaten to sink an otherwise sound transaction.
  7. Provide fair and ethical treatment. When you’re interviewing agents, ask if they’re a REALTOR®, a member of the National Association of REALTORS®. Every member must adhere to the REALTOR® Code of Ethics, which is based on professionalism, serving the interests of clients, and protecting the public.

“Copyright National Association of REALTORS®. Reprinted with permission.”

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Home Organization Ideas to Turn Unused Space into Storage Heaven

You can fit an entire closet where?

Using a kitchen pegboard for home organization
Image: @nolan_nest on Instagram

It’s hard to enjoy your home when it feels cramped. But before you start thinking, “Time to move!” you may just need to make your house more clever — one with organization solutions built into surprising places.

Here are some home organization ideas that’ll delight you:

#1 The Coolest of the Home Organization Ideas: A Wall-Turned-Jewelry Closet

A wall mirror opens to reveal jewelry storage system
Image: J Korsbon Designs

You’ll get out the door faster in the morning if you can grab the right necklace without spending 10 minutes untangling it from a knot of beads.

This is one of the best home organization ideas because it leverages the silver bullet for storage woes: between-the-studs shelves. For maximum jewelry-friendliness, pair pegs with shelves and hang a tidy little door.

#2 Reach New Organizing Heights with Library Ladders

Kitchen with built-in rafter shelving and library ladder
Image: Alec Hemer, photo/Tim Cuppett, designer

Conventional wisdom for organizing your home says to maximize storage space by putting shelves from floor to ceiling.

This is great if you’re closer to seven feet tall than six, but the rest of us can’t reach the stuff on the top shelves. Here’s a clever storage idea: Install a library ladder.

Even better, there’s no engineering required: You can find rolling ladder kits online.

#3 Try Pegboards

Pegboard in kitchen hanging pots, pans, and other items
Image: @nolan_nest Instagram

Here’s a smart home-organization idea: Turn a kitchen wall into storage space by covering it in pegboard and hanging pots, pans, and kitchen utensils. You get storage without losing square footage to cabinets or an island. 

Add a shelf at the top, and you’ve put a storage hack on top of a storage hack. Literally.

#4 Turn an Angled Wall into a Closet

Wall shelving converted to a closet to optimize storage
Image: Mindi Carwin at MyLove2Create.com

If you’ve got an upper-story room with a slanted wall, maximize that cramped space by making a built-in closet. You can do this in an attic, bonus room, bedroom, or any place where the roof line creates dead space.

And it has a little secret: The center section of this closet is on wheels and pulls out to reveal even more storage behind it.

#5 Add a Shelf for Folding Clothes in the Laundry Room

Sunny laundry room with counter above washer and dryer
Image: Thalita at the Learner Observer

This one is so simple and smart, you’ll wish you’d thought of it. Put a countertop over your front-loading washer and dryer to create a place to fold clothes.

Add under-counter shelves on one side for storing ever-ready laundry baskets. 

Be sure to mount the counter high enough above the washer and dryer so you can easily pull them out for maintenance and repairs.

#6 Turn a Stairway Into Pull-Out Storage

Drawers beneath stairs pull out to reveal bags and shoes
Image: Winnie Ho

Turn the dead space under the stairs into pull-out storage compartments. Cut into the drywall between the studs, and make bins, shelves, or even hanging storage to hold whatever items you need in the vicinity of the stairs. 

To make the best of the space, think through exactly what you’ll store before customizing. Tote bags and coats? Pegs could do it. Shoes? Go for shelves.

#7 Take Garage Storage Up a Notch with Motorized Pulleys

A garage outfitted with a pulley storage system
Image: Susie Soleimani Photography / Designer: Spectrum Design|Build

Put the overhead space in your garage to work by installing a motorized pulley system that lets you store ice chests, camping gear, and other bulky items overhead. Forget those ceiling hooks and high garage shelves that are a pain to access; with this system, hit a button and your stuff is valeted right to you.

Visit HouseLogic.com for more articles like this.  Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

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DOWN PAYMENT MISPERCEPTIONS PERSIST

The majority of home buyers—87%—finance their home purchase. But some aspiring buyers may delay their purchase due to persistent myths over down payment requirements.

Thirty-five percent of consumers believe they need a down payment of 16% to 20% of the purchase price. Ten percent believe they need more than 20% for a down payment to purchase a home, according to survey data from the National Association of REALTORS®. Home price increases in the double digits over the past year alone make saving for such a large down payment an even tougher hurdle.

However, the typical down payment is much lower. For first-time home buyers, the average down payment over the last three years has ranged between 6% and 7%, Jessica Lautz, NAR’s vice president of demographics and behavioral insights, writes on the association’s blog.

A bar chart showing the consumer belief of the typical downpayment

For repeat buyers, the typical down payment was 17% last year, according to NAR. The down payment among those buyers has been rising over recent years as home equity for owners has grown. Many repeat buyers roll the equity from the previous home into buying their next home.

A line graph charting the typical down payment among home buyers from 1989 to 2021

Buyers have several loan options. About 23% of first-time buyers represented in the survey chose a Federal Housing Administration loan. FHA loans allow borrowers to put down as little as 3.5% on the purchase of a home.

At HUD.gov, potential buyers can look for an interactive portion of the site that can direct them to state and local lending programs they may qualify for.

Source: “Tackling Home Financing and Downpayment Misconceptions,” National Association of REALTORS® 

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Are Closing Costs Deductible?

The answer to whether closing costs are tax deductible — or mortgage interest and property taxes for that matter — is often maddeningly, “It depends.”

Basically, you’ll want to itemize if you have deductions totaling more than the standard deduction, which for 2022 is $12,950 for single people and $25,900 for married couples filing jointly. Practically every taxpayer gets this deduction, homeowner or not. And most people take it because their actual itemized deductions are less than the standard amount.

But will you have enough deductions to itemize?

To see, you need to know what’s tax deductible when buying or owning a house. Here’s the list of possible deductions:

Closing Costs
The one-time home purchase costs that are tax deductible as closing costs are real estate taxes charged to you when you closed, mortgage interest paid when you settled, and some loan origination fees (a.k.a. points) applicable to a mortgage of $750,000 or less.

But you’ll only be able to benefit from them if all your deductions total more than the standard deduction.

Costs of closing on a home that aren’t tax deductible include:

– Real estate commissions
– Appraisals
– Home inspections
– Attorney fees
– Title fees
– Transfer taxes
– Mortgage refi fees
– Mortgage interest and property taxes are annual expenses of owning a home that may or may not be deductible. Continue reading to learn more about those.

Mortgage Interest
Yearly, you can write off the interest you pay on up to $750,000 of mortgage debt. Most homeowners don’t have mortgages large enough to hit the cap, says Evan Liddiard, CPA, director of federal tax policy for the NATIONAL ASSOCIATION OF REALTORS®. But people who live in pricey places like San Francisco and Manhattan, or homeowners anywhere with hefty mortgages, will likely reach the maximum mortgage interest deduction.

Note: The $750,000 cap affects loans taken out after Dec. 15, 2017. If you have a loan older than that and you itemize, you can keep deducting your mortgage interest on debt up to $1 million. But if you refi that loan, you can only deduct the interest on the amount up to the balance on the day you refinanced – you can’t take extra cash and deduct the interest on the excess.

Home Equity Loan Interest
You can deduct the interest on a home equity loan or a second mortgage. But — and this is a big but — only if you use the proceeds to substantially improve your house, and only if the loan, combined with your first mortgage, doesn’t add up to more than the magic number of $750,000 (or $1 million if the loans were existing as of Dec. 15, 2017).

If you use a home equity loan to pay medical bills, go to Paris, or for anything but home improvement, you can’t deduct the interest.

State and Local Taxes
You can deduct state and local taxes you paid, including property and income taxes (or sales taxes in states where there is no income tax), up to $10,000. That’s a low cap for people who live in places where state and local taxes are high, says Liddiard. To give you an idea of how low: The average amount New Yorkers have taken in state and local tax deductions in past years is about $22,000.

Loss From a Disaster
You can write off the cost of damage to your home if it’s caused by an event in a federally declared disaster zone, like areas in Florida after Hurricane Michael or Shasta County, Calif., after a rash of wildfires.

This means standard-variety disasters like a busted water pipe while you’re on vacation or a fire caused because you left the toaster on aren’t deductible.

Moving Expenses
This deduction is also only for some. You can deduct moving expenses if you’re an active member of the armed forces moving to a new station.

And by the way, unless you are active military, if your employer pays your moving expenses, you’ll have to pay taxes on the reimbursement. “This will be a real hardship to many because it’s noncash income,” says Liddiard. Some employers may gross up the reimbursement amount to provide cash to pay the tax, but many likely will not.

Home Office
This is a deduction you don’t have to itemize. You can take it on top of the standard deduction, but only if you’re self-employed. If you are an employee and are working from home during the pandemic, you can no longer write off home office expenses. You claim the deduction on Schedule C.

Student Loans
Anyone paying a mortgage and a student loan payment will be happy to hear that the interest on your education loan is tax deductible on top of the standard deduction (no need to itemize). And you can deduct as much as $2,500 in interest per year, depending on your modified adjusted gross income.

Ways to Increase Your Eligible Deductions
There are some other costs that can be itemized not related to being a homeowner that could bump you up over the standard deduction. This might allow you to write off your mortgage interest. Charitable contributions and some medical expenses can be itemized, although only that portion of your medical expenses that exceed 7.5% of your adjusted gross income can be deducted.

So if you’ve had a hospital stay or are generous, you could be in itemized-deduction land.

Also, if you’re a single homeowner, it could be easier for you to exceed the standard deduction, Liddiard says. The itemized deductions on your house will probably more quickly break the 2022 $12,950 standard deduction threshold than a couple’s similar house will break their $25,900 threshold.

Tax-Savvy Home-Buying Ideas

If you’re a prospective homeowner with an eye to making the most efficient use of your tax benefits, here are a few ways to buy smart:

– Especially in expensive areas, buy a less expensive home so you don’t hit the cap on mortgage debt and local and property taxes, says Lisa Greene-Lewis, a CPA and tax expert for TurboTax.
– If you’re buying a higher price home, make a bigger down payment so your original mortgage doesn’t exceed the $750,000 cap.

How to Decide If You Can Itemize
To see whether you have enough deductions to itemize, get some guidance from TurboTax.

Though every homeowner’s tax benefits will be a little different, in the end, you’re building equity, you’ll likely make money when you sell, and you have the freedom to paint your walls any color you want and get a dog.

Visit HouseLogic.com for more articles like this.  Reprinted from HouseLogic.com with permission of the NATIONAL ASSOCIATION OF REALTORS®.

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Fancy Up a Foyer

The foyer is the first room inside the house that people see as they enter. So, make a statement. Hillary Stamm with HMS Interiors and Jessica Nicastro with Jessica Nicastro Design. Show off how to make a great first impression that welcomes guests with a few unique touches in the foyer.

Hillary Stamm is the owner of HMS Interiors, a full-service design firm based in Manhattan Beach, Calif. View some of Stamm’s recently designed foyers below.

Vintage Vibes

This foyer was designed all vintage, with the rug and the client’s mother’s vintage mirror, paired with books and baskets to create a styled but welcoming feel.

Spotlighting the Staircase

This dramatic staircase is paired with a table holding an eclectic assortment of stylish goods, a floral arrangement, and art.

Simple But Styled

Stamm uses a couple brass antiques mixed with baskets and art to mix up the foyer and add in some character.

Jessica Nicastro is the owner of the design firm Jessica Nicastro Designs based in Encino, Calif. Nicastro shares some of her recently designed foyers below.

Antiqued

Nicastro pairs an antique dresser with an abstract mirror, tall florals, and a whimsical pottery piece to add some polish to the foyer.

A Color Pop

The very white space pops with the dark blue cabinet, fun gold accents, and a few books that could even spark a discussion.

Stair Accents

Nicastro gives the foyer character without taking up any space by adding fanciful tiles onto the stairs.

Copyright National Association of REALTORS®. Reprinted with permission.

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