END-OF-YEAR
A S P E C I A L P U B L I C AT I O N C R E AT E D B Y R E P U B L I C M E D I A C U S T O M P U B L I S H I N G
MOVE-INREADY GUIDE
December 2013
Pages 8& 9
WHAT’S INSIDE
December 2013 Cathy Bruegger
PulteGroup p
Thinkstock Thinks Thi nkstoc k toc oc c
Toll Brothers
NewHomes 2 Basement homes
3 Universal design
5 Moving Moving ing 101 10 10 Owner’s entries/drop zones
$
I N F O R M AT I O N
SEARCH
Homeowners Insurance
Home Locator Maps Discover where new homes are being built
What you need to know See page 4
See pages 6 & 7
It’s tax time What new homeowners can expect By Michelle Talsma Everson
W
Potential deductions According to Koppinger, some common deductions for new homeowners include: • Points paid to obtain a mortgage • Interest paid on the first $1 million of the home loan • Property taxes • Private mortgage insurance, subject to income limitations Necessary paperwork As with anything tax-related, a paper-trail is necessary. “New homebuyers need to gather several documents at year-end to itemize deductions, including closing papers on the home, property taxes paid and Form 1098 mortgage interest,” said Cheryl M. Brock, CPA, CMA, president of Brock Tax & Accounting Company in Tempe. If any of the paperwork seems to be missing, Brock advised that homeowners contact their mortgage company, which should have the paperwork on file. Reduced withholdings “Once a taxpayer is able to itemize deductions on their return as a result of increased deductions from home-ownership, this may result in reduced taxes owed overall,” Koppinger said. “If this is the case, they may benefit from reducing the amount of federal and state income taxes withheld from their paycheck, thereby increasing their take-home pay each pay-period.” Consider professional help While it may be tempting to do your taxes yourself, homeowners are especially advised to seek financial counseling from a tax professional. “Using professional help throughout the process is recommended, including a real estate agent, mortgage lender and CPA or tax preparer,” Brock said.
( 4.2$* &'+1%+-% ,+(50 ,+(50(
December deals
i
$ To check out metro Phoenix median homesales prices by ZIP code or community, visit homevalues. azcentral.com. To check out the estimated home value of any address in Maricopa County, visit PropertyValue Central.com, the website of NetValueCentral, a local real estate -$*$+-(6 0-2)
21% 15% 2013
2012
Luxury homes (over $500,000)
MARKET SHARE Lowest-priced homes (below $150,000)
14% 25% 2013
2012
Source: W.P. Carey School of Business, Arizona State University
Why a new home might just be the perfect holiday gift
T
By Debra Gelbart
he construction process for a new home can take between three and seven months to complete, depending on the builder. So why should you consider buying a new home during the holiday season?
1
Lock in a price and an interest rate. At least two national homebuilders report that overall, their home prices were up substantially by the end of this year’s third quarter compared to the same period last year, averaging a 27.5 percent jump, according to Forbes Magazine.. In addition, the S&P Case-Shiller Home Price Index released at the end of October shows that in metropolitan Phoenix, home prices rose close to 19 percent between August 2012 and the end of August 2013. And while mortgage rates are still historically low, they have been creeping upward, too. In an improving housing market, the reality is “the sooner you decide, the better price you’ll get,” said Bobby Lieb, associate broker with HomeSmart Elite Group in central Phoenix. If a homebuilder’s fiscal year coincides with the calendar year, Lieb said, and the fiscal year also is coming to an end, additional incentives may be in store for homes in new neighborhoods.
/) 4.#1+15+1 4.2$*
"3+1%!.-% 4.2$ *
2
Personalize your new home for the new year. “You’ll have the excitement of moving into something brand-new that has the ideal floor plan for your family and where you’ve had the opportunity to personalize the finishes, such as the flooring, cabinetry and countertops,” said Andy Pedersen, group vice president of marketing and merchandising in Arizona and California for K. Hovnanian Homes, which has 18 active new-home neighborhoods in the Valley. “Even if you opt for a move-in-ready home instead of one yet to be built, you may be able to choose some of the finishes.”
3
/) 4.#1+15+1 4.2$*
not uncommon for a resale home to attract multiple offers.” If you fall in love with a floor plan or location for a new home, he added, you don’t have to wonder whether the home can ultimately be yours.
4
Investigate the tax advantages. If you close your home loan by Dec. 31 and it carries a fraction of a “point” or more (prepaid interest used to buy down the long-term interest rate), you may
Eliminate resale competition. “New homes don’t have competing bidders,” Pedersen said, “but (DECEMBER DEALS, continued on page NH4) because a limited number of resales are available, it’s
Santa’s Stash No closing costs*
Holiday Essentials
Free washer, dryer, refrigerator and blinds**
Holly Jolly Kitchen
Upgraded kitchen**
taylormorrison.com | Visit any of our 30 Valley-Wide Communities *Valid on new 11.22.13 12.31.13. prepaids when buyer finances their home through Taylor Morrison Home Funding. TMHF AZ:MB # 091681. Services not available wc contracts written ten between b twee 11 22 13 and nd 12 31 13 Seller will pay pa all applicable le closing ccosts not including includ uding d discount points or prepa pr in all states. Rates, terms and conditions offered are subject to change without notice. All loans are subject to underwriting and loan qualification of the lender. Additional licensing or other details, including special financing incentives (as applicable), may be found at www.taylormorrison.com/finance. **Packages vary by community and are subject to change without notice. Please see a Taylor Morrison sales associate for full, community-specific details. All promotional offers herein are available in the Phoenix Division only and are void where prohibited or otherwise restricted by law. No offer to sell or lease may be made or accepted prior to the issuance of the final AZ Subdivision Disclosure Report. All incentives, pricing, availability and plans subject to change or delay without notice. Please see a Taylor Morrison Sales Associate for details and visit www.taylormorrison.com for additional disclaimers. Taylor Morrison/Arizona, Inc., AZ ROC # 179178B . © November, 2013, TM Homes of Arizona, Inc., AZ DRE # CO535669000. All rights reserved. AR-0008105577-01
AR-0008124214-01
hile each situation is different, new homeowners can count on some changes when they file their income taxes. (As usual, talk with your financial advisor for information specific to your situation.) “Taxpayers are permitted to take either the standard deduction [which varies per individual] or itemized deductions when they file their personal tax return,” said Elizabeth Koppinger, CPA, MTAX, of EK Tax and Accounting Solutions in Phoenix. “When a taxpayer purchases a primary residence and obtains a home mortgage loan, many times they are able to itemize deductions on their return because the itemized deductions are greater than the standard deduction.”