Gathering money for that first home purchase can be a daunting task. Did you know that the IRS allows first-time homebuyers to withdraw from an IRA without paying tax penalties, specifically for using the money as a down payment on a home.

Your eligibility to draw money from your IRA without paying tax penalties does have a few stipulations.

1. You can only use up to $10,000.
2. You have to be a first-time homebuyer, which to the IRS means you have not owned a home in the last two years.
3. You have to use the money for the down payment within 6 months of withdrawing it.
4. You can only do it once in your lifetime.

If you are not a first time home buyer you can still withdraw from your IRA for your home purchase, but keep in mind, you will be taxed on early disbursements. The IRS will tax you heavily – 10% – on early disbursements and you will have to pay taxes on any investment gains your IRA has made.  Additionally, the money you withdraw will be considered taxable income next April 15^th.

With the heat of July burning up the thermometers, many of us like to jump in the pool to cool off. Here’s my conversation about the topic of pools with Pamela Geurds Kabati from HouseLogic.

Gil: It has been pretty hot lately in many parts of the country, hasn’t it?

Pamela: You bet. So I thought we could help folks “cool off” for a few minutes by diving into a conversation about pools – just close your eyes for a minute and think about how good it would feel to just walk out your back door and step into a cool, sparkling pool on a really hot day.

Gil: I’m with you! There’s nothing like having your own personal pool in your backyard. And they can add value to your home, right?

Pamela: Sometimes, yes.  Sometimes, no. It depends, in part, on where you live and the kind of pool you’re talking about. In some cases – and this may seem counter-intuitive – a pool can actually reduce the value of a home by a little bit. And we can talk more about the specifics of that.

But the “value” issue isn’t necessarily a reason to forego putting in a pool if you really want one and if know you’re going to use it and enjoy it.

You just want to dive in with your eyes wide open so you know what you’re getting into.

And that’s what HouseLogic is all about – helping people make smart, informed choices about their home.

Gill: OK, so, you understand a pool may not add value to your home, but say you want one anyway. What are your options – especially if you don’t want to spend tens of thousands of dollars like you would on an in-ground pool?

Pamela: There’s a kind of “ladder” when it comes to types of pools you can put in – so starting on the first rung — there’s a nifty above-ground, inflatable pool called a ring pool that you can put up in just one day and that will only cost you about $350 for a size that’s 16-feet around and 3 ½ feet deep – and everything you need in the way of chemicals for it typically comes in the kit.

They’re called ring pools because there’s an inflatable ring around the top edge. Once you fill the ring with air, you can start filling the pool with water. As the ring floats up, it lifts the sides of the pool into place. The bottom of the pool is a bit wider than the top for stability, and it’s deep enough and wide enough that you take a proper dip in it.

And then, taking another step up our pool ladder, there’s the more classic above ground pool – called a “frame” pool – with the hard sides. This is typically round, 24-feet across, and about four-feet deep. This basic model costs about $4,000 and takes a few days to a week to install. But you can also pay much more for this kind of above ground pool – up to $15,000 or more, if you get into fancy shapes, liners, graduated depths, decking and landscaping that makes it look like a more permanent part of your yard.

Keep in mind, though, that it’s these above-ground pools – no matter how fancy you get with them – that typically do not add value to a home. In fact, one study found that they can reduce the value of a home by almost 2%. Of course, the good news is, you can always remove an above-ground pool before you put your house on the market.

Gill: So, there’s a better chance that an in-ground pool will add some value to your home?

Pamela: Yes. According to THE NATIONAL ASSOCIATION OF REALTORS, an in-ground pool can add from 6% to 11% to the value of a home – but that varies widely by region of the country, and REALTORS will tell you that having a pool in your yard may well reduce the “pool” of prospective buyers interested in your home. That’s because some folks look at a pool and just see a money pit. Or if they have small children, they see a safety hazard.

If you’re thinking of putting in an in-ground pool for the purpose of adding value – as opposed to just because you want one and you’ll enjoy it – you want to talk with a local REALTOR first about your market and whether pools tend to be a desirable amenity. In your market, Gil, in Los Angeles, or in the scorching heat of Arizona, for example, the answer may be a resounding, “yes.” In Chicago or Maine, not so much.

Now, this doesn’t mean you shouldn’t put in a pool if you really want one; you just want to make a fully informed choice, because it’s not a small investment.

Gil: What are we talking in terms of costs to install and maintain an in-ground pool?

Pamela: In-ground pools start at about $30,000, and take at least a month to install. Maintenance of the pool involves keeping the tile, plaster, and decking in shape, adding chemicals, the utility costs you’ll have for water and energy to keep the pool filled, and the pump and cleaning system running. For all of that you’re looking at about $2,000 a year on an unheated pool, according to experts. The running of a heater intermittently over a single season will add another $500 to your costs. And having a pool in your yard is going to cost you more in homeowners’ insurance as well, to cover the liability of someone getting hurt in or around that pool.

Gil: OK, so, say you’re living in a house now that came with a pool. How can you save yourself some money on those carrying costs you were just talking about? What about solar heaters? I’ve heard those can save you a lot of money.

Pamela: Solar heaters are a great way to save. Depending on where you live and the cost of utilities in your area, a solar heater can pay for itself in just a few years. They’re especially cost-effective in states like Florida, Arizona, and California, where there’s a lot of sunshine and a long swimming season.

But if you don’t have the roof area for solar collectors, or you don’t want to spend $5,000 on a system – which is about what it costs to install one — you can get a solar blanket for about $100. That will help keep the water warm and also keep it from evaporating, so you don’t need to replace water or chemicals as often.

Gil: Thanks, Pamela. I think the message here is crystal clear: Think about how much you really want — and can afford — a pool before you jump in with both feet!

Pamela: That’s right, Gil. You don’t want to be “splashing around” in the dark on this one! And, of course, folks can find more information about pools at www.HouseLogic.com. They can also look for our ads in Real Simple magazine and listen for them on NPR radio!

So you have been trying to sell your home for quite some time without success, and you are wonder if you are marketing the house properly. Perhaps it is time to look into an alternate method of selling your house. Let’s take a look at putting your house up for auction.

As a seller, there are some real benefits to selling your home through an auction. Unlike the usual home sale process there is no negotiation. You know your buyers are serious and the competition of an auction may increase the price your home sells for.

There are three common types of auctions:

Absolute Auction

- house will sell to the highest bidder, regardless of price.
- marketplace response is strong, as buyers know a sale will be made.

Minimum Bid Auction

- protects the seller from selling below a set price.
- usually has fewer prospective buyers

Reserve Auction

- the highest bid at the auction is considered an offer.
- seller has a couple of days to accept or reject the offer.
- down side of this type of sale is that not many buyers may be willing to risk the sale being turned down

Above all, always work with a REALTOR® who knows the auction process. He or she may already have a relationship with an auction company and can assist in organizing the sale. Remember, the property needs to be in saleable condition to get the best price; your REALTOR® can discuss staging the home with you.

Many of you have purchased a new home that may be in a condominium or co-op complex and are now members of a HOA (Home Owners’ Association). Perhaps you have a neighbor who is not following HOA rules or causing trouble in the complex. What steps can you take to resolve a dispute with your neighbor and how can the HOA assist you with a resolution?

It is always a good idea to work with the board of your Home Owners’ Association and make them aware of any issues that may arise with a neighbor. The bylaws of many HOAs include procedures for dealing with homeowners who break the rules. Two of the most common complaints that are brought to HOA boards are those regarding noise issues and unpaid HOA dues.

Unpaid HOA dues can be a serious affair that will disrupt your entire community. In the case of unpaid dues, the HOA may have the option to put a lien against the troublemaker’s house – meaning that those outstanding fees will have to be paid when the house is sold or refinanced.

Noise violations may carry other recourse from your HOA. These recourse actions will be listed in the HOA bylaw package that was given to you upon possession of your home. If you do not have a document containing these bylaws you can ask the board of your HOA for a copy of the bylaw document.

If you can’t get the help you need from your HOA, then make sure you document the steps you take to address the issue on your own and keep your HOA informed of those steps. If you have to call the police for a noise issue, take notes. Or, you might send a letter asking the neighbor to reform his/her behavior by certified mail – and keep a copy for your records.

Remember, you probably never want the issue to go to court, work with an attorney to insure you are following the law. Homeowner Association laws vary from state to state, and this is a complicated issue that may call for professional legal advice. Your HOA may also already have an attorney who is familiar with the HOA bylaws and could have a wealth of advice on the situation.

As we celebrate the Independence Day holiday across America and for most of us a three day weekend, it’s a great opportunity to get up, get out and get something accomplished that will add value, beauty and enjoyment to your home.

So today, let’s take a serious look at your deck.

No, we’re not talking about building one from scratch, at least not on a 3-day weekend. We’re talking about making the deck you already have look brand new.

We talked about this with our friends at Lowe’s this week, and they had lots of great ideas, about making your deck absolutely shine.

1. Cleaning

So our first step is cleaning. Don’t even think about putting stain on that dirty deck.
Deck cleaners and pressure washers help remove dirt, nail stains, algae, and mildew. There are many deck cleaners available in premixed liquid concentrates.

Remember to be safe. Carefully read the manufacturer’s directions before using the material, and follow all safety precautions and warnings on the label. Wear safety goggles, a long-sleeved shirt and pants. Do not wear sandals or open-toed shoes.

2. Choosing a Stain or Sealer

Whichever stain or sealer you choose should repel water, resist mildew, and prevent fading where people walk. Sealers and stains come in either water-based or oil-based formulas. Keep in mind that oil-based finishes require less frequent re-coating and upkeep.

Lets take a look at a few of your choices:

Clear water repellent with no UV protection

Clear water repellent with no UV protection allows the wood to turn gray without splitting, warping, cupping, or cracking. These sealers require re-coating at least once a year.

Clear wood preservative with UV protection

Clear wood preservative with UV protection protects your deck and prevents graying and are often used on cedar and redwood decks to preserve the color. Oil-based preservatives can last for up to two years.

Semi-transparent stains

Semi-transparent stains are subtle and show the grain and texture of wood. These stains contain pigment that protects against sun damage better than a clear preservative. Oil-based semi-transparent stains provide the most protection, better color retention and longer life.

Solid stain

Solid stain tends to wear quickly. If using a solid stain, apply it to rails and benches only, not where people walk.

3. Maintenance

Here’s an easy way to know if you have to spruce things up.

Perform a water test to determine if deck needs resealing. If water soaks in immediately, the deck can be sealed. If the water beads up or stands on the deck, the deck may not need sealing yet. Do this every few months.

Usually, you can replace a board or two without much problem.

4. Beyond Repair

When a deck is beyond repair and the only solution would be to replace it, Lowe’s recommends using ChoiceDek, an environmentally-helpful composite decking system, which has a lifetime warranty and requires no maintenance.

ChoiceDek Features and Benefits

• It has no splinters
• Durable
• Waterproof
• Environmentally friendly – because it does not require chemical dipping, preservative treatments or water sealing.
• Rot/termite resistant
• Can be assembled with standard hand and power tools.

5. Finishing Touches

You can make outdoor living spaces more beautiful and comfortable with a little thought and a few finishing touches. Furnish and accessorize the deck to really make it come to life.
Adorn the poles and posts of your deck with decorative caps such as acorn toppers or ball finials.

A great way to conceal the space between the deck’s perimeter and the ground below is by installing pre-constructed decorative lattice panels, which also gives you nice hidden outdoor storage. You can paint or stain the lattice panels to match your deck as well.

No matter what type of furniture you choose, look for things that blend with the house so it all goes together.

Candles and candleholders should be large and heavy enough to remain stable even under wind-blown conditions. Wall plaques made from pottery or stone-like material add are a great visual and stand up under weather.

Gliders, rockers and swings are wonderful for just sitting or relaxing. Hammocks are cool, though you may never want to get out of one. If the deck is under a roof, you can hang a swing or hammock from joists in the ceiling.

Let’s not forget that lighting is part of the experience as well. Install low-voltage lighting to illuminate steps, and any paths. This is not only decorative; anything that keeps people from tripping will keep your insurance company happy.

These days the backyard, porch or deck is more than just outside, they are that extra outside room only with the sun, moon and stars for a ceiling.

When you think about that ceiling, you can’t beat who made that one.

Are your feeling overwhelmed by your current mortgage payments? Perhaps you are self employed and work has slowed down or your income has fallen. What steps should you take?

The first thing you need to do when financial difficulty strikes is call your lender. Far too many people wait too long to contact their lender about financial trouble. It is very important to try and establish a solution that your lender will agree to early on.

There are several possibilities that your lender may consider. Two common options used to avoid foreclosure are forbearance or loan modification.

Forbearance is an agreement established by the lender and the mortgage holder to allow for reduced payments for a set period of time. You may have to agree to pay a lump sum in the future to make up for lost payments but usually the lender will tack the extra outstanding on to the end of the loan.

Your lender may also be willing to modify the terms of the loan, such as extending the number of years you have to repay in order to make the monthly payments more manageable. However, keep in mind, more than 1.25 million homeowners applied for loan modification under the Obama ‘Making Home Affordable’ program but only about 350,000 ever had their loans reduced.

You can discuss these options and others with an HUD-approved counselor. A state-by-state list of counselors is available at www.HUD.gov

Beyond assistance from your lender, you may need to find additional work or rent out a room in your house to supplement your income.

Or, if you feel you just can’t cut it, call your Realtor and discuss selling the property. Depending on the equity you hold in the home you may be able sell and buy another smaller home with lower mortgage payments.

Have you asked your home inspector if they carry “errors and omissions” insurance? Errors and omissions insurance (E&O insurance) covers cases in which the inspector may make a major blunder and miss something on a home inspection that will later cost the home’s buyer money to repair.

Errors and omissions insurance protects the home inspector from having to pay for a lawsuit if he or she is sued as the result of a faulty inspection. This type of insurance will not pay back the home seller who has to make unnecessary repairs or who loses a sale due to a poorly conducted home inspection.

The law is different from state to state. Depending on the state you are in, a licensed home inspector may be required to carry insurance, but this should be confirmed with your state authorities.

For a home seller worried about the home inspection, the best insurance to carry is good preparation. Always choose a certified home inspector and inquire about what sort of insurance coverage they carry. The American Society of Home Inspectors, at www.ASHI.org, is a great resource for understanding local laws and finding a certified home inspector.

On the day of the inspection, walk through the house with the home inspector. You can make sure he or she doesn’t make any major mistakes, and you can follow-up on anything you disagree with, within reason. Expect an inspection to take several hours to complete.

Ask for home inspector recommendations from friends or trusted sources. Remember, your local REALTOR® is always a wealth of information and can recommend a home inspector that he or she has worked with in the past.

We have all seen the television programs, in which a couple hired a builder who did such a poor job putting in a foundation for their home that they end up having to hire a new builder and spend an extra 75-thousand dollars building a new foundation. So, how do you go about finding a reliable builder, and what qualities should you be looking for?

Many REALTORS® actually do nothing but work with builders. You would do well to work with a REALTOR® throughout the process of finding the lot, buying it, finding the builder and getting a good lender to provide financing.

You can get great referrals from a local REALTOR® in the area. Most local REALTORS® will have worked with a few local contractors before, and can introduce you to homeowners who can provide you with references.

Take a tour of the area you’re interested in, find a brand new home that’s on the market and contact the REALTOR® whose name is on the ‘for sale’ sign.

Another great resource where you can find a list of builders in your area is Move.com. Run by the National Association of Home Builders, Move.com provides a valuable resource for finding reputable builders.

So, once you have done your research you can start checking those references. Ask the prospective builders for names of home owners who they’ve worked for in the past that will be willing to talk to you. You can also ask the builder just for addresses, and collect your own random sample. Drive by some of their recently-built homes on a Saturday morning, introduce yourself politely, and ask about how happy the owners were with the builder. Usually, people will tell you if they’re pleased with their homes or not and why.

Always remember that you have to be a good client to work with a good builder. Set up your expectations with your builder ahead of time and understand that last-minute changes will affect the deadline and cost.

So you own property that is currently zoned for business and you are wondering what it would take to rezone the property for residential use. Perhaps you are considering renovating the building and putting the condominiums up for sale. While there can be some great potential for profit, let’s look at what may be involved in rezoning.

Before you proceed with any rezoning application you will want to talk to your Real Estate Attorney and learn about the local laws for changing the “use” of the building. Be prepared to go through several months of reviews and hearings with local government. The neighbors will have a say in the process, as will your local municipality government. If that bureaucracy is something you’re willing to do, the builder you hire to convert the building to condos can also assist with the zoning application. Always consult with professionals when tackling a rezoning process.

Once the property has been zoned for multi-family use then the renovations can begin. Converting a business property to a residential property can be an expensive and time consuming undertaking. Remember, most business properties require a considerable amount of work to bring them up to residential standards that are mandated by your local municipality government.

In addition, when you are ready to sell the condos, you will have to set up a Condominium Association. You will be selling each owner both their space and access to common areas, shared heating units, etc… your attorney will need to draw up contracts.

Converting a property from business zoning to residential can be a long, drawn out and frustrating process. However; with patience, a trusted Real Estate attorney and a reliable builder you may be able to see a significant profit when those condos go to market.

Purchasing a home that has gone into foreclosure can be a complicated, stressful and confusing process. So, how can you take advantage of these deals without missing out on the opportunity?

First and foremost, always work with your REALTOR®. Your REALTOR® can set up instant notifications that will alert you both the minute a property of interest comes on the market. Never go it alone, the advice and experience of your trusted REALTOR® is a valuable tool when pursuing a foreclosure.

If this property is really special, see if your REALTOR® can find the buyer, maybe it’s an investor who will be willing to sell to you.

Foreclosure sales will usually happen quickly in comparison to a regular property transaction. The truth is that many banks figure it’s worth more to unload a property quickly than to get a slightly better price. This is especially true if the property has changed lenders once or twice. So be prepared to act quickly on the sale.

A foreclosure purchase can be a frustrating process. However, patience and the expertise of your REALTOR® can make it a rewarding endeavor in the end.