I have always wondered how plants are planted in Fairhope, AL. This photo shows the story. One of the employees using this wonderful tool that is called an auger digging the holes for all the beautiful plants and another follows along dropping them in. These plants are all grown in the city nursery, and changed 4-6 times per year to keep up with the seasonal changes. They do such a fantastic job keeping our city beautiful.
Driving to work today, I thought about how blessed I have been to be in real estate in Fairhope, AL. Selling this life style is so easy. Oak trees cascade over Scenic 98/Main Street. Our sunsets are at our finger tips whether you live on the bay or just walk out on our magical pier at the foot of Fairhope Avenue. We all love to gather by sitting on park benches or walk the length of the pier. Fairhope is like a little village with beautiful homes within a short distance to downtown. This is a great place to live and again being in real estate. I feel that I am the perfect voice for this community. Look at our Sunsets, enjoy.
9 Surprising Things That Add Value to Your Home
A home’s value is dependent on many things. Here are nine factors you might not have thought about.
What do surf breaks, Walmarts, and public transportation have in common? Being near any of them can add thousands to your home’s value.
At least that’s what various university researchers have found based on their evaluation of variables that could be influencing home prices. Their conclusions might surprise you. Here’s what they found:
1. Surf Breaks
Being within a mile of a surf break (a spot where surf-able waves happen) adds about $106,000 to a home’s value, according to surfonomics experts at the Monterey Institute of International Studies.
Reality check: Mother Nature makes surf breaks, so it’s not like you could build your own DIY break to boost your home’s value.
2. Parks and Open Spaces
A desirable public park or other recreational open space boosts the property value of nearby homes by 8%-20%.
One study looked at 16,400 home sales within 1,500 feet of 193 public parks in Portland, Ore., and found these boosts to home values:
- Natural areas: $10,648
- Golf courses: $8,849
- Specialty parks: $5,657
- Urban parks: $1,214
Reality check: A park that’s not maintained and overcrowded can drag down nearby home values.
3. Living Near a Walmart
Along with making it easier to run out for a gallon of milk at midnight, researchers at the University of Chicago concluded that living within a mile of a Walmart store could raise your home’s value by 1%-2%, and living within half a mile could boost your property value by an additional 1%.
For an average-size home, that’s an uptick of $4,000-$7,000.
Realty check: What you gain in home value, you may end up spending at Walmart.
4. Solar Photovoltaic Systems
California homes with solar photovoltaic (PV) systems sell for a $17,000 premium over homes without solar systems, according to research from the U.S. Department of Energy’s Lawrence Berkeley National Laboratory.
Reality check: Although costs for residential solar power systems are falling, they’re still rather pricey at $15,000-$40,000, depending on the size of your house.
Being able to stroll to schools, parks, stores, and restaurants will raise your property value anywhere from $4,000-$34,000, says a 2009 study from CEOs for Cities.
Reality check: The biggest boost in walkability values occurred in large, dense cities.
6. Accessory Dwelling Units
Whether it’s a granny flat, an in-law apartment, or a carriage house, having a separate unit can increase your home’s value by 25%-34%, according to a study of 14 properties with accessory dwelling units in Portland, Ore. You can also get a steady stream of income from a second unit.
Reality check: Local governments often ban accessory dwelling units, so check zoning laws, building codes, and homeowners association rules before you add a unit.
7. Professional Sports Arenas
A new pro sports stadium can raise property values in a 2.5-mile radius by an average of $2,214. The closer you are to the new facility, the larger the increase in home value. Researchers from the University of Illinois at Urbana-Champaign and the University of Alberta examined house sales in Columbus, Ohio, before and after the city added two sports stadiums.
Reality check: If a stadium is proposed, home values can decline a bit until the project is complete. And if you live really close to a stadium, you may encounter traffic and parking issues.
8. Community Gardens
Planting a community garden raises the value of homes within a 1,000-foot radius by 9.4% within five years, according to research by the Office of the Comptroller of the Currency and New York University School of Law.
The impact increases over time, and high-quality community gardens have the greatest positive influence. Poor neighborhoods saw the biggest gains in home values.
Reality check: Gardens on privately owned land and in higher-income neighborhoods don’t have the same beneficial influence.
No real surprise here — whether trees are in your yard or just on your street, they’re a valuable asset you should be aware of. Here’s a gauge of how much trees are worth to your home value according to a University of Washington research survey:
- Mature trees anywhere in your yard: 2%.
- Mature trees on your street: 3%.
- Trees in your front yard: 3%-5%.
- Mature trees in high income neighborhoods: 10%-15%.
Reality check: Trees usually mean work — raking leaves, trimming branches, and keeping roots out of sewer lines.
Don’t miss these home tax deductions
From mortgage interest to property tax deductions, here are the tax tips you need to get a jump on your returns.
Owning a home can pay off at tax time.
Take advantage of these homeownership-related tax deductions and strategies to lower your tax bill:
Mortgage Interest Deduction
One of the neatest deductions itemizing homeowners can take advantage of is the mortgage interest deduction, which you claim on Schedule A. To get the mortgage interest deduction, your mortgage must be secured by your home — and your home can be a house, trailer, or boat, as long as you can sleep in it, cook in it, and it has a toilet.
Interest you pay on a mortgage of up to $1 million — or $500,000 if you’re married filing separately — is deductible when you use the loan to buy, build, or improve your home.
If you take on another mortgage (including a second mortgage, home equity loan, or home equity line of credit) to improve your home or to buy or build a second home, that counts towards the $1 million limit.
If you use loans secured by your home for other things — like sending your kid to college — you can still deduct the interest on loans up $100,000 ($50,000 for married filing separately) because your home secures the loan.
PMI and FHA Mortgage Insurance Premiums
You can deduct the cost of private mortgage insurance (PMI) as mortgage interest on Schedule A if you itemize your return. The change only applies to loans taken out in 2007 or later.
By the way, the 2014 tax season is the last for which you can claim this deduction unless Congress renews it for 2015, which may happen, but is uncertain.
What’s PMI? If you have a mortgage but didn’t put down a fairly good-sized downpayment (usually 20%), the lender requires the mortgage be insured. The premium on that insurance can be deducted, so long as your income is less than $100,000 (or $50,000 for married filing separately).
If your adjusted gross income is more than $100,000, your deduction is reduced by 10% for each $1,000 ($500 in the case of a married individual filing a separate return) that your adjusted gross income exceeds $100,000 ($50,000 in the case of a married individual filing a separate return). So, if you make $110,000 or more, you can’t claim the deduction (10% x 10 = 100%).
Besides private mortgage insurance, there’s government insurance from FHA, VA, and the Rural Housing Service. Some of those premiums are paid at closing, and deducting them is complicated. A tax adviser or tax software program can help you calculate this deduction. Also, the rules vary between the agencies.
Prepaid Interest Deduction
Prepaid interest (or points) you paid when you took out your mortgage is generally 100% deductible in the year you paid it along with other mortgage interest.
If you refinance your mortgage and use that money for home improvements, any points you pay are also deductible in the same year.
But if you refinance to get a better rate or shorten the length of your mortgage, or to use the money for something other than home improvements, such as college tuition, you’ll need to deduct the points over the life of your mortgage. Say you refi into a 10-year mortgage and pay $3,000 in points. You can deduct $300 per year for 10 years.
So what happens if you refi again down the road?
Example: Three years after your first refi, you refinance again. Using the $3,000 in points scenario above, you’ll have deducted $900 ($300 x 3 years) so far. That leaves $2,400, which you can deduct in full the year you complete your second refi. If you paid points for the new loan, the process starts again; you can deduct the points over the life of the loan.
Home mortgage interest and points are reported on Schedule A of IRS Form 1040.
Your lender will send you a Form 1098 that lists the points you paid. If not, you should be able to find the amount listed on the HUD-1 settlement sheet you got when you closed the purchase of your home or your refinance closing.
Property Tax Deduction
You can deduct on Schedule A the real estate property taxes you pay. If you have a mortgage with an escrow account, the amount of real estate property taxes you paid shows up on your annual escrow statement.
If you bought a house this year, check your HUD-1 settlement statement to see if you paid any property taxes when you closed the purchase of your house. Those taxes are deductible on Schedule A, too.
If you made your home more energy efficient in 2014, you might qualify for the residential energy tax credit.
Tax credits are especially valuable because they let you offset what you owe the IRS dollar for dollar for up to 10% of the amount you spent on certain home energy-efficiency upgrades.
The credit carries a lifetime cap of $500 (less for some products), so if you’ve used it in years past, you’ll have to subtract prior tax credits from that $500 limit. Lucky for you, there’s no cap on how much you’ll save on utility bills thanks to your energy-efficiency upgrades.
Among the upgrades that might qualify for the credit:
- Biomass stoves
- Heating, ventilation, and air conditioning
- Roofs (metal and asphalt)
- Water heaters (non-solar)
- Windows, doors, and skylights
To claim the credit, file IRS Form 5695 with your return.
Vacation Home Tax Deductions
The rules on tax deductions for vacation homes are complicated. Do yourself a favor and keep good records about how and when you use your vacation home.
- If you’re the only one using your vacation home (you don’t rent it out for more than 14 days a year), you deduct mortgage interest and real estate taxes on Schedule A.
- Rent your vacation home out for more than 14 days and use it yourself fewer than 15 days (or 10% of total rental days, whichever is greater), and it’s treated like a rental property. Your expenses are deducted on Schedule E.
- Rent your home for part of the year and use it yourself for more than the greater of 14 days or 10% of the days you rent it and you have to keep track of income, expenses, and allocate them based on how often you used and how often you rented the house.
Homebuyer Tax Credit
This isn’t a deduction, but it’s important to keep track of if you claimed it in 2008.
There were federal first-time homebuyer tax credits in 2008, 2009, and 2010.
If you claimed the homebuyer tax credit for a purchase made after April 8, 2008, and before Jan. 1, 2009, you must repay 1/15th of the credit over 15 years, with no interest.
The IRS has a tool you can use to help figure out what you owe each year until it’s paid off. Or if the home stops being your main home, you may need to add the remaining unpaid credit amount to your income tax on your next tax return.
Generally, you don’t have to pay back the credit if you bought your home in 2009, 2010, or early 2011. The exception: You have to repay the full credit amount if you sold your house or stopped using it as primary residence within 36 months of the purchase date. Then you must repay it with your tax return for the year the home stopped being your principal residence.
The repayment rules are less rigorous for uniformed service members, Foreign Service workers, and intelligence community workers who got sent on extended duty at least 50 miles from their principal residence.
Tax Deductions if You Bought, Sold, or Refinanced Your Home
When you took out a mortgage to buy your home, did you pay points? You may be able to deduct that prepaid interest on your federal tax return — but only if you meet a long list of rules.
The points you paid when you signed a mortgage to buy your home may help cut your federal tax bill. With points, sometimes called loan origination points or discount points, you make an upfront payment to get a particular rate from the lender.
Since mortgage interest is deductible, your points may be, too.
If you itemize your deductions on Schedule A of IRS Form 1040, you may be able to deduct all your points in the year you pay them.
Some high-income taxpayers have their total itemized deductions limited, including points. You can read more about that in the instructions for Schedule A.
Lucky for you, the IRS doesn’t care whether you or the homesellers paid the points. Either way, those points are your deduction, not the sellers’.
Tip: Tax law treats home purchase mortgage points differently from refinance mortgage points. Refinance loan points get deducted over the life of your loan. So if you paid $1,000 in points for a 10-year refinance, you’re entitled to deduct $100 per year on your Schedule A.
The Fine Print for Deducting Points
The IRS rules for deducting purchase mortgage points are straightforward, but lengthy. You must meet each of these seven tests to deduct the points in the year you pay them.
1. Your mortgage must be used to buy or build your primary residence, and the loan must be secured by that residence. Your primary home is the one you live in most of the time. As long as it has cooking equipment, a toilet, and you can sleep in it, your main residence can be a house, a trailer, or a boat.
Points paid on a second home have to be deducted over the life of your loan.
2. Paying points must be a customary business practice in your area. And the amount can’t exceed the percentage normally charged. If most people in your area pay one or two points, you can’t pay 10 points and then deduct them.
3. Your points have to be legitimate. You can’t have your lender label other things on your settlement statement, like appraisal fees, inspection fees, title fees, attorney fees, service fees, or property taxes as “points” and deduct them.
4. You have to use the cash method of accounting. That’s when you report your income to the IRS as it comes in and report your expenses when you pay them. Almost everybody uses this method for tax accounting.
5. You must pay the points directly. That is, you can’t have borrowed the funds from your lender to pay them. Any points paid by the seller are treated as being paid directly by you.
In addition, monies you pay, such as a downpayment or earnest money deposit, are considered monies out of your pocket that cover the points so long as they’re equal to or more than points. Say you put $10,000 down and pay $1,000 in points. The downpayment exceeds the points, so your points are covered and therefore you can deduct them if you itemize. If you were to put nothing down but you paid one point, that $1,000 wouldn’t be deductible.
6. Your points have to be calculated as a percentage of your mortgage. One point is 1% of your mortgage amount, so one point on a $100,000 mortgage is $1,000.
7. The points have to show up on your settlement disclosure statement as “points.” They might be listed as loan origination points or discount points.
Tip: You can also fully deduct points you pay (for the year paid) on a loan to improve your main home if you meet tests one through five above.
Where to Deduct Points
Figured out that your points are deductible? Here’s how you deduct them:
Your lender will send you a Form 1098. Look in Box 2 to find the points paid for your loan.
If you don’t get a Form 1098, look on the settlement disclosure you received at closing. The points will show up on that form in the sections detailing your costs or the sellers’ costs, depending on who paid the points.
Report your points on Schedule A of IRS Form 1040.
There are two things related to points that you can’t deduct:
1. Interest buy-downs your builder paid
Some builders put money in an escrow account (as a buyer incentive) that the lender taps each month to supplement your mortgage payment. Those aren’t considered points even though the money is used for an interest payment and it’s prepaid. You can’t deduct the money the builder put into that escrow account.
2. Interest payments from government programs
You can’t deduct points paid by a federal, state, or local program, such as the federal Hardest Hit Fund, to help you if you’re experiencing financial trouble.
EIGHT-PART LECTURE SERIES ON
January 6th – August 4th, 2015 6PM – 7PM
Giddens Auditorium, Fairhope Public Library
Have you recently moved to Fairhope? Lived here for years and never understood the important dates and personalities that make Fairhope special?
The Education Committee of the Fairhope Single Tax Colony is presenting a citizen’s primer on one of America’s most unique communities and hope you will join us for this free lecture.
Topics and Speakers
January 6 – “Growing Up in Fairhope” – Anna and Reed Myers
February 3 – “History of Marietta Johnson’s School” – Maggie Mostellar-Timbes
March 3 – “Populism Gives Rise to the FSTC” – Donnie Barrett
April 7 – “Important Dates & Events in Fairhope History” – George Gilmore
May 5 – “The Bay Boat Era” – C.C. “Peco” Forsman
June 2 – “Mann History” – Alison Knight
July 7 – “History of Fairhope Art” – Dean Mosher
August 4 – “FSTC’s Contributions to Fairhope” – Lee Turner, President; Leslie Stejskal, Secretary FSTC 2014
Spanish Fort, Daphne, Fairhope
Pending or Under contract from 3-3-14 to 3-11-14
- 41 Residential Properties
- Ave price $226,314
- Average Days 102
- Average Price/Sqft. $100
Pending or Under contract from 3-3-14 to 3-11-14
- 13 Residential Properties
- Average Price $228,000
- Average Days 83
- Average Price/Sqft. $110
Spanish Fort, Daphne, Fairhope
Sold from 3-3-14 to 3-11-14
- 25 Residential Properties
- Average Price $426,827( 2 homes sold $1,990,000 and $2,566,000)
- Average days on the market 187
- Average price/Sqft $125
Sold from 3-3-14 to 3-11-14
- 11 Residential Properties
- Average Price $427,000
- Average days on the market 145
- Average price/sqft $261
|Price Per SqFt||$116.72||$112.20||$184.00||$147.32|
|Days on Market||121||121||204||161|
|Average List Price||$364,897||$302,538||$479,597|
|Price Per SqFt||$109.43||$87.70||$121.08||$103.99|
|Days on Market||183||172||208||188|
|Closed since 1/1/13||Spanish Fort||Daphne||Fairhope||Average|
|Price Per SqFt||$97.84||$90.25||$117.56||$102.67|
|List Price %||96.95%||97.53%||95.84%||96.74%|
|Days on Market||151||142||177||158|
|Average List Price||$274,997||$215,803||$298,033|
|Average Sale Price||$266,611||$208,958||$283,222|
|Market Update for January 2014|