Wednesday, October 31, 2012

Creepy-Crawly Spider Web

Creepy-Crawly Spider Web

Welcome Halloween guests with a spider web that’s sure to add a little fright to your front door.
 

Creepy-Crawly Spider Web

 
Step 1: Plan how the spider web will cross your front door. Make sure the door will still open, the end ropes won’t create a tripping hazard, and the ropes won’t hit anyone in the face.
 

 
Step 2: Mark where two web strands can crisscross in an X shape, and then lightly hammer in wire brads 1/4" into the edge of the door or window trim at the ends of the planned X. Press one rope end onto the head of the top nail, and stretch it to the opposite brad. Cut the rope to length. Use a lighter to melt the cut end to prevent fraying, and press that end onto a brad. 

Step 3: Repeat with a second piece of rope, looping it around the attached strand to form the X. Add more strands that cross in the center of the X. Make sure to stretch and fasten them taut to the door frame. Where the rope strands extend under the door threshold, tie double knots and wedge the ends under the threshold. (We used a total of five strands.)

Step 4: For a more irregular web, attach ropes to strands using zip ties, and nail the other ends to the trim between the long strands. Trim the excess straps of the zip ties.

Step 5: Create a web look by tying a rope end to one of the outer strands near the bottom; then weave it in an irregular circle from strand to strand. As you go around, attach the rope with zip ties at each crossing. Hold this rope in place by fastening it to the long strands with zip ties.

Tuesday, October 30, 2012

Don't underestimate autumn home sale potential

By Alisha Alway Braatz
Inman News®

If I had my way, each year would officially start in September.
The heck with Jan. 1! Who's even awake in January?
You've just finished gorging on pie and cured meats for two months. That's the time to fit into a sparkly minidress and stay up until 3 a.m.? No thank you.
I prefer to celebrate the coming new year in September -- the month when everything really important happens. Fall is for the first day of school, fresh notebooks, new shoes, empty backpacks and chocolate milk.
It's simply the season of change, and nature herself confirms it. Leaves start changing color, the air gets crisp, and all the hanging flower baskets around my house die because I forget to water them (so sorry!). Football kicks off, root vegetables begin showing up on the dinner table, and all the best TV shows are back in the prime-time lineup.
September is also the month when folks who've had their home on the market during the summer question whether to cancel their listing. Conventional wisdom says the window of opportunity passes with the summer sun and only the homes of "desperate" sellers remain for sale after the first day of school.
I hear it all the time from sellers, "We'll list our home until school starts." It's not a decision based on their needs or desires, but on the idea that buyers looking for a new home will be too busy to find one in the fall, or somehow sellers will fool buyers into thinking their home is a "new listing" in the spring. Tricky, tricky!
Granted, summer is the time of the year where more homes are bought and sold. I get that. But, the market doesn't suddenly dry up and disappear in September! People who genuinely need to move are still going to buy a home. As for "hiding" days on market? Yeah, that really doesn't work. Like, ever.
This autumn is a great time to have a house on the market, says Realtor.org: Inventory is down and so are the days on market. Sellers can overcomplicate the process. But when it comes right down to it, a sale is about motivation and money. Supply and demand. Simple, simple stuff.
Like going back to school, freshly sharpened pencils and new haircuts, real estate is elementary. And always worth celebrating. Go September!

Sunday, October 28, 2012

Replacing a sliding patio door

By Bill and Kevin Burnett
Inman News®

Q: I'm not sure when my house was built, but I have old-style, anodized, single-pane aluminum windows and doors. As an ongoing project, I want to replace the old stuff. To start, I want to replace my patio door with a new energy-efficient one. Can I leave the frame in or must I remove all of it?
 
A: You're wise to do this job in stages: one opening at a time. Retrofitting windows and doors is a fairly big job, but a good one for a couple of dedicated do-it-yourselfers with moderate carpentry skills.
Bill recently replaced the old, 6-foot aluminum slider in his Walnut Creek, Calif., house with an energy-efficient vinyl model. He's no longer able to do this type of work himself, so he hired a skilled carpenter and an assistant. The guys were in and out in about four hours, and Bill ended up writing a check for $3,800. If you do the job yourself, figure it will take you twice as long, but you'll pay half as much.
As for replacing your slider, it depends on what you mean by the frame. If you mean keep the anodized frame and just replace the panels, the answer is no. But you can certainly remove the entire door, leaving the wood framing in place and then put in a new unit.
Realize though that you may have to make some modifications to the 2-by-4 framing in the opening.
Get started by removing the old door. First, take off the interior and exterior trim. For each trim piece, score the paint and caulking with a utility knife so as not to damage walls when removing it. Slide a putty knife into the joint where the trim meets the door frame. Pry the trim away from the door enough so you can work a flat bar into the space and slowly pry off the trim piece. If you're careful, you should be able to reuse these pieces.
Now, remove the sliding panel. With the trim off, the nailing fins on the exterior are exposed and the door can be removed.
You will want to remove as much weight as possible, so first lift the sliding panel out of the door and put it in your recycling pile. Then, remove the nails in the nailing flange with a tool called a cat's paw. There also will be a number of screws through the frame, especially through the sill, which will need to be removed. Then, with all nails and screws out, remove the old door and frame.
Measure the rough opening and check that it's plumb and level. Even though you're replacing an old slider with a new one, the rough openings may differ. If that's the case, some modification of the opening will be necessary. Usually, the new door requires a smaller opening.
If so, build out the opening with the correct width of plywood to get the right rough opening. If the opening needs to be enlarged, reframing it is a big job. We'd probably return the new door and search for one that fits.
Installation is fairly straightforward. The new door will come with detailed instructions. Follow them to ensure that new door is properly secured to the rough framing. Pay attention that the door is plumb and square in the opening and that it is properly caulked and insulated to prevent water and air infiltration.
 
For a more detailed look, we found a thorough instructional video on replacing a sliding patio door:www.ronhazelton.com/projects/how_to_install_a_sliding_patio_door.

Friday, October 26, 2012

If you have a chimney, it needs to be swept

By Paul Bianchina
Inman News®

As fall starts putting a bit of a chill in the air again, it's time to start thinking of things to do around the house to get ready. If you burn wood in a fireplace or a wood stove, whether it's your primary source of heat or just for an occasional pleasant evening fire, one thing you can be sure of is that your chimney's going to get dirty. It's simply an inescapable fact of life that chimneys and soot go hand in hand, and that combination can equal some serious, life-threatening danger if you don't take care of it.
As wood burns, not all of it is consumed, and what isn't consumed goes up your fireplace chimney or wood stove flue pipe in the form of creosote and soot. Creosote is a thick, oily material that results from the distillation of wood smoke, which solidifies as it cools. Soot is basically particles of partially burnt material that builds up in chimneys, metal flue pipes, and flue caps.
Over time, the soot and solidified creosote build up and clog the interior of the chimney or flue pipe. When the temperatures in the flue get high enough, which they can easily do when a fire is burning in the fireplace, the creosote will ignite. The result is a flue fire, which can destroy your entire home!
Chimney sweeping
The only way to get rid of the soot and creosote is through regular cleaning. Chimney cleaning -- or sweeping as it's more properly known -- is a matter of physically brushing the inside of the chimney to dislodge the built-up material.
Chimney sweeping can be physically tiring and even dangerous. Tall chimneys, long ladders, steep roofs, and icy conditions can make for a hazardous combination. If your chimney needs cleaning but undertaking the work is not your idea of a fun weekend, consider hiring it out to a chimney sweep.
Chimney sweeping is an honored profession that goes back centuries -- in fact, some legends suggest that chimney sweeps bring good luck. Today's chimney sweeps are licensed, bonded and insured -- something you want to be sure and check on before hiring them. They have the proper tools for the job, and are also experienced enough to detect potential chimney and flue problems and bring them to your attention before they result in a house fire.
Typically, chimney sweeps will begin with a physical inspection of your fireplace or wood stove, the chimney or flue pipe, the spark arrestor, and any other components of the system. If they see any problems, they'll typically make specific suggestions for repair, or they may recommend masons, wood stove technicians, or other professionals who can assist you with any necessary repairs.
Next, they'll cover the interior portion of the fireplace with plastic as necessary to contain any soot and dust that's created during the cleaning process. Then they'll head up onto the roof and, using a combination of long poles, brushes and scrapers, proceed to thoroughly brush and clean the insides of the chimney, causing the hardened material to break off and fall to the bottom. The final step is to clean out the inside of the fireplace, then vacuum up any dust.
Do-it-yourself chimney sweeping
Armed with the proper tools, chimney sweeping is well within the capabilities of most do-it-yourselfers. You'll need one or more chimney brushes of the proper size, as well as poles or ropes to work the brushes through the chimney. You can get what you need at most fireplace and woodstove dealers, home centers, hardware stores, and some other retailers.
It's important to use some common sense here. Use a sturdy ladder of the appropriate size for the job. Set it up correctly and don't overextend yourself -- it takes only one slip to result in disaster. Wear appropriate clothing and slip-resistant footwear.
Finally, when cleaning out the fireplace be sure and place the ashes in an airtight container. Even ashes you think are cool can still retain a remarkable amount of heat, and can burn right through paper bags, plastic garbage cans, cardboard boxes, and other unsuitable containers.
How often to clean
If you have the bad habit of damping the fire down and depriving it of oxygen so that it will burn longer, the result is a lot more smoke. That's not only harmful to the environment, but it also produces a far greater amount of partially burnt solids. These solids will build up rapidly, so the chimney will get dirty much more quickly, and should be cleaned on yearly basis. On the other hand, hotter fires that burn the wood more efficiently also help clean the chimney, and can probably be cleaned less often, but you'll need to rely on a visual inspection to be sure.

Wednesday, October 24, 2012

Colorful Wood Place Mat

Want an easy way to spice up mealtime? Make this DIY place mat that mimics the look of slatted wood window blinds.


Slatted wood place mat


Step 1: Using a handsaw, cut three 8'-long pieces of pine moulding into 15 slats 18" long. 

Step 2: Paint the slats in colors of your choice. Let dry. 

Step 3: Arrange the slats as you like with the flat side up, leaving about 1/16" between each piece. Place two strips of painter’s tape across all 15 slats, 3-1/2" in from each end; place a third strip of tape between them. 

Step 4: Working along the outer edge of the left piece of tape, wrap and tie a knot of twine around the end slat. Use a match or lighter to melt the end of the knot to prevent unraveling. 

Step 5: Hang the mat off the edge of your work surface, and then weave the twine between the slats until you have six to eight rows. When finished, tie another knot and melt the end. 

Step 6: Repeat Steps 4 and 5, working along the outer edge of the right piece of tape. Remove all tape when finished.

Monday, October 22, 2012

Asbestos disclosure a 'mine field' for home inspectors

By Barry Stone
Inman News®

DEAR BARRY: If a home inspector knew there was asbestos in a building that was being renovated, shouldn't he have said something? In this case, a safety officer finally shut down the project. Is the home inspector liable for not warning us about asbestos? --Gerald
DEAR GERALD: The answer to your question has some complexities. First of all, a home inspector cannot know for certain that a particular material contains asbestos. Some building materials may be suspect, but laboratory analysis is necessary to conclude that asbestos fibers are present.
Secondly, the standards of practice for home inspectors specifically exclude environmental hazards. Therefore, home inspectors are not liable in a legal sense for not disclosing asbestos materials.
On the other hand, experienced home inspectors are aware, or should be aware, of materials that are likely to contain asbestos. Common examples include acoustic textured ceilings, old forms of duct insulation, vinyl floor coverings, old drywall mud, old asphalt composition roofing materials, roofing mastic, old pipe insulation, and more.
Some home inspectors might point out a material as "may contain asbestos," while recommending further evaluation by an asbestos specialist. But most home inspectors avoid the subject completely for fear of becoming liable for materials that they do not disclose as "may contain asbestos." The problem here is fear of litigation, a major threat to home inspectors, as it is to most people who are in business.
On the other hand, if a home inspector is aware that a client plans to remodel a home, or if an inspector sees work in progress, it would be wise for that inspector to recommend a professional asbestos inspection prior to commencing or continuing work on the property.
Unfortunately, the subject of asbestos disclosure is a mine field for inspectors, giving rise to conflicting opinions when home inspectors gather to discuss and debate the details and procedures of their work.
In any event, a home inspector who says nothing about asbestos is protected by the standards of practice for the profession and is not legally liable for nondisclosure.
DEAR BARRY: Our home has two layers of shingle roofing. When we bought it two years ago, the seller said the shingles were 17 years old. How much longer can we expect a second roof layer to last? --Julie
DEAR JULIE: The number of roof layers should not affect the longevity of the material. What matters is the quality of the product. Shingles are rated according to the number of years they are warranted by the manufacturer. You can buy 20-year shingles, 30-year shingle, 40-year shingles, and so on.
Longevity is also affected by the climate. In areas with hot, dry summers, shingles wear out sooner than in locales with cooler climates or with overcast skies.
The only way to determine the condition and remaining longevity of your roof is to have it inspected by a qualified roofing contractor or a competent home inspector. If you had a home inspection when you bought the home, the inspector should have given you some idea of the condition of the roofing.

Saturday, October 20, 2012

When hiring contractor, be a 'tough customer'

By Bill and Kevin Burnett
Inman News®

This is a cautionary tale. The moral of this story is when a homeowner hires a contractor, it's incumbent on him or her to oversee the work and call any problems to the contractor's attention immediately. There are no dumb questions, and don't stop asking until you're satisfied with the answer. This hit close to home recently.
A friend of ours sells books to school libraries. Because of the lousy economy and because the book market is going more and more digital, her income is shrinking along with her sales. The company is in the midst of restructuring, and our friend fully expects that she and many other salespeople are about to be unemployed.
Anticipating what seems to be the inevitable, our friend is tightening her belt and getting her condo ready to sell. She sought our advice on what to do.
We told her she needed to redo her small master bathroom, add some fresh paint, make some minor repairs, declutter, and clean, clean, clean. Then put it on the market and hope for the best.
Because she's not certain whether she owes more than the condo is worth, it's important that any work she does be inexpensive. It still has to look good, though. She went to one of the local big box stores to buy a prefab shower stall and a new toilet, vanity and vinyl flooring. She also bought new fixtures for the vanity and shower and contracted for installation through the store. The total cost of the new bath is about $4,000, which she hopes to recoup via an increased sales price.
Our friend found out she could save $1,000 or so by demolishing the old master bath and taking care of the painting herself. This left some rough plumbing, shower stall installation, a bit of Sheetrocking and floor installation for the pros.
This sounded like a good plan to us, but all didn't quite go according to plan.
The plumber came in only a day later than promised (not bad in the building trades) and moved the shower drain and set the shower pan. The drywall contractor came in the next day to patch the wall above the edge of the shower walls. He took one step into the shower and noticed that the pan flexed up and down about 1/2 inch. He said, "This isn't right," and left, figuring that the pan and shower walls needed to come out, meaning he would have to do the Sheetrock work twice. Work stopped.
Whenever we install a new prefab shower pan or tub enclosure we set it in bed of thin-set mortar to ensure a solid base. This plumber did not do that.
Our friend complained to the general contractor who gave her a song and dance about "workmanlike business practices" and how they "always do it this way." We told our friend to get a second opinion, and a licensed plumber soon confirmed that the installation was done improperly.
After a little debate, Sarah and the general contractor agreed to support the bottom of the pan with expanding foam shot through holes drilled in the subfloor. We're a little leery of this solution. Open cell foam can compress when crushed so although it may be a temporary fix we're skeptical that it will stand the test of time.
Nevertheless, with a solution of sorts in the offing, the Sheetrocker came back and did the patch job.
The contract also called for installation of a new vinyl floor. The flooring contractor, an old pro whom our friend had used before, took one look at the vinyl curling around the edges and told Sarah she needed new underlayment. The general contractor missed this too.
In the end, the bath will look just fine. Our friend's a good painter and the drywall job is professional. Our friend will enlist Kevin to confirm that she installs the new toilet, vanity and countertop correctly.
Like our dad always said, "If you're going to do a job, do it right." And we say, if you hire someone to do a job, be a tough customer. It's your duty to make sure it's done right.

Thursday, October 18, 2012

The Foreclosure Report - August 2012

Foreclosure Starts Down Dramatically
August 2012 California Notice of Defaults were down 23.6 percent from the prior month, and down 49.1 percent compared to last year. In Arizona, Notice of Sales were down 16.1 percent from the prior month, and down 42.2 percent compared to last year. The decline in Foreclosure Starts is even more significant on an average daily basis, down 30.2 percent from the prior month in California with 23 business days in August vs. 21 business days in July.
Foreclosure Sales were up 23.7 percent in California on a month over month basis. On an average daily basis, the increase was up 12.9 percent from the prior month.
In Oregon, non judicial foreclosure activity almost came to a halt, with Foreclosure Starts down 80.6 percent from the prior month and down 93.9 percent compared to last year, most likely indicating a move to judicial foreclosures as discussed last month.
"We continue to see reports that there will be a wave of foreclosure sales after the election or at the start of the year,” stated Sean O'Toole, Founder & CEO of ForeclosureRadar. “The lack of Foreclosure Starts this month puts a nail in the coffin of this theory. There will be no wave of foreclosures for at least five months. The good news for investors and first-time buyers is that Foreclosure Sales have at least remained flat or slightly up, continuing to provide some opportunities in the meantime."
California Foreclosure Starts   California Foreclosure Sales   California Foreclosure Timeframes

Sunday, October 14, 2012

Modern homes lousy at storing our possessions

With apologies to the late, great George Carlin, where do keep your stuff?
Everybody has stuff. We Americans like to keep our stuff in the garage, instead of parking our cars there. We park the cars in the driveway, or on the street, so our garages can hold more stuff. But some people don't stop there. They cram the kitchen, the bathroom, sometimes the whole house full of stuff.
Yup, we Americans sure love our stuff. We buy more and more of it every year, never doubting that we'll be a lot happier as soon as we get our hands on even more stuff. This is a big comfort to our corporate marketing pals, who would really panic if we suddenly stopped buying all their stuff.
Rather than making us happier, though, what really happens with most of this stuff is that we just get tired of having it. You know the stuff I'm talking about: the fancy exercise machine with the digital readout; the bread, popcorn, peanut butter and yogurt makers with the digital readouts; and of course the air hockey table with the digital readout. Then there's that expensive gaming console your kids just had to have, which was white-hot two years ago and now is totally worthless.
All of this ends up in the garage, in closets, or under beds, inevitably transformed into just that much more useless stuff.
Of course, the best way to deal with all this stuff is to get rid of it and try not to buy any more for a while. My personal litmus test is this: If this stuff I've squirreled away suddenly vanished, would I ever even notice it was gone? Usually, the honest answer is no -- if I never saw this stuff again, I'd forget I ever had it.
Let's suppose you got rid of the stuff you didn't need, and now you're down to the irreducible kernel of stuff you think you really do need. Where do you put it?
Alas, much as we Americans love our stuff, our homes are poorly equipped to store it. Our storage arrangements are designed mainly for show, not for practicality. Sure, there may be lots and lots of fancy-looking cabinets -- whether in the kitchen, the bathroom, the laundry, or even in the closets -- but for the most part, they do a lousy job of storing your stuff.
Take the average base cabinet, for example. To find anything in there, especially if it's at the back, you have to go groveling on your hands and knees. Extra-cost bells and whistles such as pullout shelves or drawers help, but they can't overcome the basic flaw, which is that these cabinets are both too low and too deep to get at things easily.
Conventional wall cabinets aren't much better, because the interior space is typically chopped up into sections by vertical dividers, which are there, it turns out, mainly to attach those elaborate doors designers love so much.
While acres of fancy doors may look impressive, there's a simpler, cheaper and more practical way to store stuff: on plain old open shelves, in a little room that's just for storing all your stuff.
Next time, the junk room -- cheap, simple and it actually works.

Friday, October 12, 2012

Consider tin ceilings for a classic look

By Paul Bianchina
Inman News®

Q: I have been researching how to fix my horrible plaster ceilings and found a few solutions. My question relies on any or all knowledge you have regarding classic tin ceilings. Can you provide any answers to this? The American Tin Ceiling Co. seems to have some cool products for homeowners. Do you know of them? --Daniel M.
A: I'm familiar with these products, and in my opinion they're quite good. They have a number of different sizes and pattern to choose from, along with all the necessary trim pieces and other items you might need to complete the installation.
The most important thing to consider is that the panels need to be attached to something solid -- you can't install them directly over the old plaster. You can cover the old ceiling with plywood, oriented strand board (OSB), or even strips of one-by-two or one-by-three lumber.
Whatever you do, remember that the plywood or wood furring needs to be as flat and even as possible, so that may entail shimming the wood or removing some of the old plaster. Also, the panels need to be supported on all four sides, since that's where the attachment nails are installed. If you opt for the furring strips, they will need to be installed on 24 inch centers, with cross pieces installed every 24 inches as well; in other words, you need to form a 24-by-24-inch grid across the ceiling.
After the plywood or furring is installed, the tin panels are installed one at a time, either hand nailing them or using a small brad nailer. This is a two-person job: one to set and hold the panel, the other to nail it in place.
This is not a particularly difficult do-it-yourself project, but it does require a lot of preplanning to have it come out right. Also, you mentioned that your old plaster ceilings are "horrible." If that also means any mold or water damage, be sure that you get that cleared up first; do not just cover up mold or moist building materials.
Q: I have insulation in my unfinished attic in the rafters with the paper facing in towards the heated part of the house. My problem is the paper is brittle and the insulation is falling down, rows at a time. I could put the wire up to hold the insulation up in place, but it will not look pretty. What else can I put up over the whole surface to hold the insulation in place? --Keith M.
A: If you don't want the expense of replacing the insulation, here's a solution that's a little more labor intensive but it won't cost you very much. One row at a time, remove the insulation from between the rafters. Peel the paper face off the insulation -- it should peel off pretty easily -- and discard it, then push the insulation back into place between the rafters. Friction should hold the batts in place temporarily.
When you've done several rafter cavities, or even one entire half of the attic if the insulation will stay in place OK, you can then cover the insulation with 4-mil clear plastic sheeting. Simply staple the sheeting to the face of the rafters. If you have to seam the plastic in any areas, make sure it overlaps at least a couple of inches. If you live in a high-humidity area, the seams should also be sealed with tape. The plastic sheeting will hold the insulation in place and also act as a vapor barrier.
All this assumes that you have adequate ventilation behind the insulation to prevent any potential problems in the event that any moisture does get into the cavities. If you're not sure about the ventilation situation, it's best to contact a qualified roofing or insulation contractor to inspect the situation before you proceed.
Q: I am currently doing a project of painting all the exterior trim on my house. It was painted with an exterior alkyd gloss 10 years ago, so I was told to continue using the oil, which I am. I am having a problem during application, with a brush or roller, thinned or not thinned, with air bubbles. The paint is bubbling about five to 10 minutes after I apply it and it's drying like that. Any suggestions on what's causing this? A remedy would be great. -- Anonymous painter
A: The old trim that you're painting has to be dry, clean, and slightly rough, otherwise the new paint won't adhere to it. It sounds like the trim either has some underlying moisture or some type of surface coating (a film of dirt, oil, or something else) that's preventing adhesion. I would suggest you make sure the wood is dry, then lightly sand the old paint with 180- to 220-grit paper to roughen it so the new paint will grip better. Wipe off any sanding dust, then paint. If you have any bare wood showing, be sure it's primed with oil-based primer before applying the new paint.
Incidentally, you can also make the switch to latex paint, which would actually be my preference. The trim, as I mention, needs to be clean and dry. De-gloss the old paint with 180- to 220-grit paper (old oil-based paint actually sands much more easily than latex) dust it off, then apply a coat of oil-based or shellac-based primer. I like BIN pigmented shellac myself. Follow the manufacturer's instructions, and have good ventilation. Once the primer is dry, you have a solid surface for painting over with latex.
These suggestions apply only to homes built after 1978. For pre-1978 homes, you need to have the paint tested for lead before doing any sanding. For more information, please go to www.epa.gov/lead.

Wednesday, October 10, 2012

10 tax tips for home sellers

By Stephen Fishman
Inman News®

The IRS has recently issued a helpful list of 10 tax tips all homeowners should keep in mind when selling a home:
1. You are usually eligible to exclude the gain from income if you have owned and used your home as your main home for two years out of the five years prior to the date of its sale.
2. If you have a gain from the sale of your main home, you may be able to exclude up to $250,000 of the gain from your income ($500,000 on a joint return in most cases).
3. You are not eligible for the exclusion if you excluded the gain from the sale of another home during the two-year period prior to the sale of your home.
4. If you can exclude all of the gain, you do not need to report the sale on your tax return.
5. If you have a gain that cannot be excluded, it is taxable. You must report it on Form 1040, Schedule D, Capital Gains and Losses.
6. You cannot deduct a loss from the sale of your main home.
7. Worksheets are included in Publication 523, Selling Your Home, to help you figure the adjusted basis of the home you sold, the gain (or loss) on the sale, and the gain that you can exclude.
8. If you have more than one home, you can exclude a gain only from the sale of your main home. You must pay tax on the gain from selling any other home. If you have two homes and live in both of them, your main home is ordinarily the one you live in most of the time.
9. If you received the first-time homebuyer credit and within 36 months of the date of purchase the property is no longer used as your principal residence, you are required to repay the credit. Repayment of the full credit is due with the income tax return for the year the home ceased to be your principal residence, using Form 5405, First-Time Homebuyer Credit and Repayment of the Credit. The full amount of the credit is reflected as additional tax on that year's tax return.
10. When you move, be sure to update your address with the IRS and the U.S. Postal Service to ensure you receive refunds or correspondence from the IRS. Use Form 8822, Change of Address, to notify the IRS of your address change.
For more information about selling your home, see IRS Publication 523, Selling Your Home.

Monday, October 8, 2012

Mortgage rates down again

By Inman News
Inman News®

Mortgage rates eased for a second week in a row on mixed economic news, but could be poised for a rebound after the European Central Bank announced a new round of bond purchases today that undermined prices of U.S. Treasurys, pushing up yields.
Rates on 30-year fixed-rate mortgages averaged 3.55 percent with an average 0.7 point for the week ending Sept. 6, down from 3.59 percent last week and 4.12 percent a year ago, Freddie Mac said in releasing the results of its Primary Mortgage Market Survey. Rates on 30-year fixed-rate mortgages hit an all-time low in Freddie Mac records dating to 1971 of 3.49 percent during the week ending July 26.
For 15-year fixed-rate mortgages, rates averaged 2.86 percent with an average 0.6 point, unchanged from last week but down from 3.33 percent a year ago. Rates on 15-year fixed-rate mortgages hit a low in records dating to 1991 of 2.8 percent during the week ending July 26.
Rates on five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans averaged 2.75 percent with an average 0.7 point, down from 2.78 percent last week and 2.96 percent a year ago. Rates on five-year ARM loans hit a low in records dating to 2005 of 2.74 percent during the week ending July 26.
For one-year Treasury-indexed ARMs, rates averaged 2.61 percent with an average 0.4 point, down from 2.63 percent last week and 2.84 percent a year ago. That's a new all-time low in records dating to 1984.
A separate survey by the Mortgage Bankers Association showed demand for purchase mortgages fell a seasonally adjusted 0.8 percent during the week ending Aug. 31 compared to the week before. Demand for purchase loans was up 1 percent from a year ago.
Like Treasurys, investors see mortgage-backed securities (MBS) guaranteed by the government as a safe haven during times of economic uncertainty. Demand for Treasurys and MBS pushes their prices up, and yields down.
Investors were placing their bets today on an economic recovery, boosting the share prices of many publicly traded companies, after the European Central Bank announced a round of unlimited purchases of government bonds issued by deeply indebted European governments.
The move also helped pushed down the price of bonds issued by more stable countries, such as the U.S. and Germany, Reuters reported.
The Federal Reserve is scheduled to meet next week to discuss whether to launch another round of "quantitative easing" that could include stepped-up MBS purchases. Some analysts think that decision could hinge largely on employment numbers the Bureau of Labor Statistics will release Friday.
Speaking at an economics symposium in Jackson Hole, Wyo., last week, Federal Reserve Chairman Ben Bernanke called stagnation of the labor market "a grave concern," reiterating past promises that the Fed would "provide additional policy accommodation as needed."
A report issued today by payrolls processor ADP showed private sector employment increased by a seasonally adjusted 201,000 from July to August, the first time since March employment gains have exceeded 200,000.
Private, nonfarm employment growth since 2001
Right-click graph to enlarge. 
For the week ending Sept. 1, initial claims for unemployment insurance totaled 365,000, down from 377,000 the week before and 411,000 at the same time a year ago, the Department of Labor reported.
Although there's been some speculation that the Fed won't take action before the election, former Fed members told CNN Money that Bernanke is unlikely to be swayed by political pressure from either party.

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