Don't Make These Mistakes That Decrease the Value of Your Home Sale

If you are planning to sell your home in the near future, you don't want to make any mistakes that will cause you to decrease the value of your home.  Once your home is on the market, what a buyer sees as a mistake may not be what you consider a mistake.

Here are a few mistakes home sellers will want to avoid to ensure you won't de-value your home.

Not Maintaining Appliances - You can sell a home "as is", which means the property in the condition to which the buyers initially see it.  Having lots of issues and repairs needed will definitely decrease the home's value.  Cleaning up appliances that are part of the sale is important.  If they are in bad condition, it's worth replacing them.

Going Wild with Color - Generally speaking, home buyers like paint colors that are neutral.  This conveys as a blank canvas for them which, upon moving in, they can paint the way they want.  Extra bold, bright, or non-traditional colors can scare them off.  Therefore, do not paint with neon green walls nor purple shag carpet.  If you have some bright colors going on, change to neutral.

Following Trends - We all get caught up in the latest design trends, but do we really know how long they will last?  If the trend is difficult to change, it could decrease the value of your home when you put it up for sale.  Home buyers will be thinking about how much money they have to spend to fix the trendy mistake.  Do make your home your style, but if you have plans to sell in the future, think about how renovations may impact the sale of your home.

Not Keeping It Cool (or Warm) - If you want buyers to come in and rush out of your home, either overheat or freeze them.  On hot days, make sure the home is aired out so that stale air can escape.  Hot, muggy, stifling homes are not fun to tour.  Turn the A/C on to a comfortable temperature to make sure your potential buyers are comfortable and take their time to really see your home.  This, in turn, should also apply to cold weather.  Keep the furnace at a comfortable temperature so they will linger and feel comfy.  (Realtor Hint:  69 degrees is the best temperature, for both A/C and furnace).

Not Sweating the Small Stuff - You do have to care enough to tend to smaller issues such as fixing a faulty light switch or replacing burned-out light bulbs.  Home buyers go through the home turning on lights, flicking switches, opening closets, cabinets, and drawers.  Keep small things like these in good working order...it's easy and it can help ensure an overall better opinion of your home.

Avoiding some of these mistakes can help prevent home buyers from thinking your home should be worth less than you do.

2015 Homeowner Tax Benefits

Hopefully, you will are taking advantage of the tax deductions allowed to you regarding owning your own home.  These deductions include:


Property tax deduction:  Any money you pay to city, county, and state property tax assessor is tax deductible. 


Mortgage interest deduction:  Your mortgage interest on both first and second loans is tax deductible.  Any points you paid to get a lower interest rate are deductible.  Private mortgage insurance payments are also deductible.


Closing costs:  If you purchased your home or re-financed your mortgage in 2015, some fees to the mortgage lender are deductible.  Ask your tax professional for guidance.  Also, you may deduct some moving expenses, such as items for your home office, if you have one.  Be sure to show your tax professional your H:UD-1 form.


Home office deductions:  If your home is your principle place of business and you meet other IRS guidelines for home businesses, you can take a deduction on workspace dedicated to your business.  The space cannot be used for any other purpose.  You can also depreciate that portion of your home over 39 years.  All improvements to the workspace are tax deductible.  In addition, your security expenses, phones, internet costs, computers, insurance and utilities can be deducted or depreciated according to IRS allowances.  Percentages and limits apply, so consult with your tax professional.


Energy Star:  If you purchased an energy efficient system or appliance for your home and it meets government Energy Star standards, you may deduct a portion of your expenses.  Save your receipts.


Property sales deductions:  If you purchased a home, occupied it as a primary residence and sold it in 2 years, you could be eligible for some capital gains exclusions up to $250,000 if you're single, or $500,000 if you're married.
There may be other deductions for you to take advantage of that are associated with your home, so be sure to save all receipts throughout the year for repairs, parts, purchases, remodeling, etc.  Some allowances and special circumstances apply, so be sure to talk to your tax professional.


Save your tax records up to 7 years, as you have to be able to support the deductions you take with documentation, such as receipts, credit card statements, cancelled checks, and online banking.


Ongoing tax deductions are another advantage to home ownership.  If you are renting, it's your landlord who is benefitting from them.