Calculating Capital Gains

(+) PURCHASE PRICE - Price paid for property

(+) COST OF PURCHASE - Transfer fees, attorney fees, inspections

(+) COST OF SALE - Repairs, commissions, attorney fees, inspections

(+) COST OF IMPROVEMENT - Room additions, deck, for example, though not replacing existing

(=) ADJUSTED COST BASIS OF YOUR HOME

(-) AMOUNT YOU SELL YOUR HOME

(=) CAPITAL GAIN

A Special Real Estate Exemption for Capital Gains

Even though the above calculation may indicate you owe Capital Gains, there is a special real estate exemption. Since 1997, up to $250,000 in capital gains ($500,000 for a married couple) on the sale of a Montgomery home is exempt from taxation if you meet the following criteria:

• You have lived in the home as your principal residence for two out of the last five years.

• You have not sold or exchanged another home during the two years preceding the sale.

NOTE: As of 2003, you may also qualify for this exemption if you meet what the IRS calls "unforeseen circumstances" such as job loss, divorce, or family medical emergency.

Learn more about selling your Montgomery home by visiting HatTeam.com.

What's your Montgomery home worth?

Always consult a tax attorney regarding current tax laws.

MLS# 272597

Hang onto your heart! From the moment you step into the entry of this handsome patio home, you'll sense it's been loved and cared for. The gleaming hardwood floors and tall ceilings will please your eye. And once you discover all the storage, you'll know it's perfect as your next home! Double closets in one bedroom, two walk-in closets and a kitchen chock-full of cabinetry, too. Plus there's a nifty covered patio out back relaxing. Wish we could include interior photos, but it is tenant occupied. So just call your agent and see for yourself!

Learn more about 5910 Carmel Drive and other Montgomery Real Estate by visiting HatTeam.com.

MLS #272333

Updated and affordable in desirable McGehee Estates. If you are looking for the McGehee Estates lifestyle without the price tag, and you want a home that has been tastefully updated, this one should make the cut. Current owners have removed some walls turning cramped ranch style rooms into a LARGE family room. Galley style kitchen opens to informal dining area. Four spacious bedrooms perfect for growing family. The real jewel of this home in the expansive privacy fenced back yard with huge party deck and in-ground BBQ grill. Massive tree provides shade in the summer and is perfect for a rope swing! Convenient to shopping and dining.

Learn more about 3011 Boxwood Drive and other Montgomery Real Estate by visiting HatTeam.com.

 Search all Montgomery Real Estate and homes for sale.

MLS #272390

Are you ready for a re-do?? Desirable location and great floorplan will make it worth your while to check out this end-unit townhome that lives like a "real house!" Needs a good bit of work (click photo for clear structural report, detailed home inspection, roof inspection and re-roof estimate) but priced $31,500 below an identical unit that sold for $141,500. So roll up your sleeves and build some equity. Cash poor? Call about the FHA 203K program, which allows you to finance all the needed improvements with as little as 3.5% down payment and a monthly payment way cheaper than you could rent comparable space!

Learn more about 2983 Old Farm Road and other Montgomery Real Estate by visiting HatTeam.com.

Search all Montgomery Real Estate and homes for sale.

Myth: Checking a credit report can either damage or lower your score.
A credit report can be conducted by you or someone like an employer as many times as desired with out having any impact on your credit score. Reviewing your credit report will never change your credit score. Just make sure that reports are retrieved through the bureaus or a legitimate score seller.

Myth: Age, sex, and income are factors that affect your score.
None of this information plays a role in determining your score. A higher income may make it easier to pay off debts, but income and net worth have no impact of credit scores.   

Myth: A credit score can be destroyed by shopping for a loan.
When seeking to extend credit, too many inquiries can have a negative impact your credit score. However, when several inquiries are made by the same type of lender with in a 14 day period they only count as one inquiry against your credit.

Myth: Your score can be hurt by credit card offers.
When companies offer you their credit cards it does not have any affect on your score. Unless, your take advantage of all the offers and carelessly use all of the credit available. The number of credit cards a person manages does not matter. The important thing is maintain a low ratio of used to available credit.

Myth: Credit scores of married couples are shared.
A credit score can only belong to one person, just as one person can only have one score. A married could does not share a credit score, but their scores could have an affect each others. When opening a joint account, the information accumulated from that account’s activity will be reflected on both people’s credit report. If all of the couple’s accounts are joint, then their scores will be somewhat similar.

Myth: Closing unused accounts improves credit scores.
Unused accounts most likely contain available credit, which is an important part of a credit score. Closing unused accounts removes available balances from the equation. This causes your ratio of used to available credit to increase, ultimately affecting your credit score.

Myth: Paying off bills is a quick way to boost credit.
Over time, a good record of properly paying bills will improve credit. Credit reports reflect your long term history, scores do not change overnight.

Search all Montgomery homes for sale.

Home sales surged in the fourth quarter of 2009 with many areas seeing double digit gains according to the National Association of Realtors. Total existing-home sales (single-family and condo) jumped 13.9 percent above the third quarter and 27.2 percent above the fourth quarter of 2008. Distressed property sales accounted for 32 percent of the fourth quarter transactions, down from 37 percent from 2008.

Lawrence Yun , NAR chief economist, said the first-time home buyer tax credit, combined with record low interest rates, played a dominant role in fourth quarter sales. Yun went on to say, “With inventory levels trending down over the past 18 months, we expect broadly balanced housing market conditions in much of the country by late spring with more areas showing higher prices.”

Let's look at January real estate sales to see how the housing recovery is progressing in Midtown Montgomery.

Midtown Montgomery Real Estate Sales Statistics - January 2010

Midtown Montgomery real estate sales statistics for January show pending sales have increased by 21% in 2010 compared to January 2009. The average sales price increased by 25% to $104,275 while sold listings were up by 23% from 2009.  Market times were 9 days less than 2009.

For the latest Midtown Montggomery real estate market conditions in your area, please call me at 800-HAT-LADY or visit HomesForSaleInMontgomeryAlabama.com.

Information is provided by the Montgomery Area Association of Realtors and is deemed accurate but not guaranteed.

Here are 9 helpful hints if you are considering selling your Montgomery home:

• Be realistic, and price your home right by using market comparisons.
• Know your true bottom line for both price and time.
• As the market shifts, be prepared to evaluate your price.
• Advertise your property with yard signs, local MLS and newspapers.
• Get rid of the clutter! It makes your house appear smaller.
• Clean your walls, floors, baseboards, stove and refrigerator. Buyers will know your house is well cared for.
• Clean up outdoors! Remove tools, toys and be sure lawn and shrubs are neatly trimmed.
• Have the carpets cleaned to eliminate odors, smoke, and pet smells.
• Make minor repairs such as leaky faucets, sticky doors, etc.
• Be sure to ask for a Market Analysis before listing your property.

Learn more about selling your Montgomery home by visiting HatTeam.com. 

What’s your Montgomery home worth? 

February 2010:

This month's edition covers Montgomery real estate market activity and then we'll offer three top tips to make sure you get the most of today’s opportunity!

Features special guest Terri Murphy of US Learning.


Program length: approximately 8 minutes

 MLS# 271403

If you like 1950's design with a twist...check this one out. Light filled formal living and dining rooms are actually to the rear of the house with walls of windows overlooking the tree covered back yard. The funky-fun kitchen has TWO sinks and is perfect for the two-cook family! Breakfast bar overlooks nicely proportioned den/family room with deep built in shelves for audio/video equipment or displaying your family treasures. Step off the den and into the extra large laundry/storage/utility room big enough for workbench, wrapping area, and various projects. Great curb appeal, beautiful hardwood floors in living room and dining room and updated 1/2 bath off the foyer add to the benefits of this home. All this, and priced BELOW market value and UNDER $100,000!

Learn more about 3463 Cloverdale Road and other Montgomery Real Estate by visiting HatTeam.com. 

Search all Montgomery Real Estate and homes for sale.

  MLS#271396

Come one come all! This is the best deal in Halcyon Summit. Owner has been relocated and has priced this one well below comparable properties. Open plan has big living room with volume ceilings, gas log fireplace, and neat "niche" area. One of the few lots in with mature trees! This one actually has SHADE in the summer! Great school districts, quiet "walking" neighborhood complete with private lake and neighborhood pavilion. Halcyon is the perfect family neighborhood. Conveniently located to anywhere in Montgomery via I-85 and close to the biggest variety of dining and shopping in town. This one is vacant and ready to move into. 

Learn more about 724 Ryefield Road and other Montgomery Real Estate by visiting HatTeam.com.

Search all Montgomery Real Estate and homes for sale.

  MLS#271392

This wonderfully updated Cape Cod home is perfect for a growing family. Oversized formal living room features fireplace and great bay window overlooking courtyard style front yard. Sunroom off living room makes great playroom or private getaway for the adults. Marvelously updated eat-in kitchen features tile and granite perfect for the chef in your family. Study downstairs with built in bookshelves can also be 4th bedroom if needed. The master suite offers two original closets PLUS a super sized walk-in closet addition and master bath with his/hers vanities and big walk in shower. Upstairs are two more large bedrooms with additional "play" space. Extras include a detached garage with work space and 1/2 bath plus a large bonus area that could be a studio, workshop, play space, or just great storage. Beautifully landscaped back yard has brick patio that wraps around the side of the house and connects with an exit from the sunroom.

Learn more about 3347 Narrow Lane Road and other Montgomery Real Estate by visiting HatTeam.com.

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 MLS#271347

Safety and security is what you'll find in this gated community convenient to everything. This low maintenance patio home is move in ready and perfect for those who like open spaces. Split plan offers master bedroom on one end and two other bedrooms on the front of the home. Breakfast room overlooks patio and small private back yard. Two car garage means you'll never have to get wet coming and going, and there is plenty of storage in the attic. 

Learn more about 1690 Young Pointe Blvd. and other Montgomery Real Estate by visiting HatTeam.com. 

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MLS#271297

If you are looking for affordable, move-in ready Cloverdale style with updated features...look no further. This well cared for cottage has traditional elements like hardwood floors, arches, retro porcelain farm sink, and a covered front porch. Well proportioned living and dining rooms are perfect for entertaining and day to day living. Enjoy the deck out back and the fully fenced yard. Located within walking distance to a neighborhood park and minutes from Cloverdale's dining and entertainment districts. Become a part of Midtown by buying your own piece of Cloverdale! 

Learn more about 3361 Montezuma Road and other Montgomery Real Estate by visiting HatTeam.com.

Search all Montgomery Real Estate and homes for sale.

6656 Chaprice Lane, Montgomery AL 36117
MLS# 27114

Why pay rent when you can own for less AND walk away with $8,000 from the IRS! If the tax advantage and the low maintenance of this home do not grab you, the open layout and volume ceilings will. Perfect for a roommate situation, there are two separate master bedrooms on opposite ends of the house. Each features a "nook" area perfect for computer desk or love seat and spacious walk-in closet. Rear parking and entry via fenced back patio area affords privacy. Fresh paint, fresh carpet, and like new roof PLUS a washer and dryer means you don't have to do anything but pack your stuff and move in.

Learn more about 6656 Chaprice Lane and other Montgomery Real Estate by visiting HatTeam.com.

Search all Montgomery Real Estate and homes for sale.

A short sale is a real estate transaction option that banks will consider instead of foreclosure with specific guidelines. As a Certified Distressed Property Expert (CDPE) we are determined to provide essential knowledge to homeowners in Montgomery facing this unfortunate circumstance. 

Visitors to AvoidForeclosureMontgomeryAL.com will find information regarding the process of foreclosure, what effects foreclosure has on a homeowner, and ways to prevent the foreclosure process from continuing. The website features easy-to-understand informational tools such as a list of frequently asked questions, a glossary of terms and free reports as well as resources that allow the homeowner to get their questions addressed in a confidential manner. In addition, the website offers the homeowner information regarding short sales, often a viable solution to foreclosure that can save a distressed homeowner from the damaging effects foreclosure has on their credit. 

It is important in today’s economic conditions for homeowners to know that they have options other than the foreclosure route. Statistics show that 50% of homeowners facing this stressful situation often ignore the issue and that doesn’t have to be. There are options such as a short sale, especially if the homeowner works with an experienced REALTOR® to provide them assistance in showing the lender the hardship situation and other real estate documentation.” 

Our new website provides visitors with a description of how the short sale process works, how it compares to a foreclosure, and how a homeowner may be able to qualify for a short sale. 

For more information about foreclosures and short sales in Montgomery, please feel free to visit the website at AvoidForeclosureMontgomeryAL.com, or to contact us directly at 334-834-1500 and by emailing Info@AvoidForeclosureMontgomeryAL.com.

1. Become familiar with the new first-time homebuyer federal tax credit.  

People who are considering the purchase of their first home, or have not been home owners for at least the past three years can gain great benefits from the first-time homebuyer tax credit. According to FederalHousingTaxCredit.com, qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before May 1, 2010 will receive a tax credit of up to $8,000. Unlike past tax credits from 2008, the money received does not have to be repaid, unless the homebuyer sells the property with in three years. 

2. Determine what is reasonably affordable.  

Prior to beginning the hunt for the perfect home, it is important to find an affordable price range. Many factors such as money available for a down payment, eligibility for a loan, and monthly mortgage payments, all play a role in determining what the buyer can comfortably afford. Total monthly mortgage payments should be, on average, approximately 30 percent of one’s gross monthly income. Affordability or loan calculators found on the internet can give a good idea of what is affordable. Before seriously inquiring the purchase of your first Montgomery home it is important to have a consultation with a knowledgeable financial advisor.

3. Deciding where and what  

Once an affordable price range is determined, it is time to decide where you want to live and what you are looking for in a home. Whether staying with in the same general area, or looking for a new location, it is crucial to do a fair amount of research on the area and its demographics. For example crime rates, school districts, shopping, medical facilities, and travel, are all important factors have to be considered since they could affect your everyday life. It is also essential to know what you are looking for in a home. Separate lists of essential needs and wants should be carefully thought out towards the beginning of the home search. The list of basic needs should include things such as minimum square footage, number of bedrooms and bathrooms, location, and price. The want list should be compiled of things that would be nice to have, such as pools, big yards, and gated communities.  

4. Find a knowledgeable Real Estate professional 

Finding and purchasing a home is a complicated, overwhelming experience, which should be nothing but exciting. Working with an experienced real estate agent can make the process run smoothly and be more successful. The chances of finding the perfect Montgomery home are significantly increased when put in to the hands of the right real estate professional. 

Learn more about how we can help you purchase a Montgomery home by visiting HatTeam.com or give us a call for more personal service.

Use Furnaces and Heaters Wisely

• Set your thermostat as low as it is comfortable. Each degree you lower your thermostat can cut your heating costs between one and three percent. A common strategy is to lower thermostat settings to 68 degrees. The lower you set it, the more you'll save.
• Turn your thermostat down 10 to 15 degrees during your sleeping hours or while you’re away, to save even more on your heating bill.
• Use a programmable thermostat with your furnace to adjust the setting while you sleep or no one is home.
• Clean or replace filters on furnaces once a month, or as needed.
• Clean warm-air registers, baseboard heaters, and radiators as needed; make sure they’re not blocked by furniture, carpeting, or drapes.
• Place heat-resistant radiator reflectors between exterior walls and the radiators.
• Bleed trapped air from hot-water radiators once or twice a season. If in doubt about how to perform this task, call a professional.

Weatherize - air leaks waste energy dollars year-round

• Caulking and weatherstripping keeps warm air in during the winter.
• Add insulation around heat ducts when they are located in unconditioned spaces such as attics, crawl spaces, and garages.
• If you see holes or separated joints in your ducts, hire a professional to repair them.
• Check to see that your fireplace damper is tightly closed, when it is not in use.
• During the heating season, keep draperies and shades on south-facing windows open during the day to allow sunlight to enter your home, and close them at night to reduce the chill from cold windows.

For Long Term Savings:

• If your furnace is old, the new energy efficient models can help you save on heating bills. Your contractor should be able to give you energy fact sheets for different types, models,
  and designs to help you compare energy usage. Look for the ENERGY STAR®.
• Adding insulation and sealing air leaks help your energy performance in the wintertime by keeping the warm air inside.

Everyday Tips to To Save Energy
These no-cost or low-cost tips are easy ways to save energy and money all year round.

• Replace incandescent bulbs with compact fluorescent lights.
• Air-dry dishes instead of using your dishwasher’s drying cycle.
• Use a microwave oven instead of a conventional electric range or oven.
• Turn off your computer and monitor when not in use.
• Plug home electronics, such as TVs and VCRs, into power strips and turn power strips off when equipment is not in use.
• Lower the thermostat on your hot water heater; 115° is comfortable for most uses.
• Wash only full loads of dishes and clothes.

Many of these same tips are also applicable to savings on summer cooling costs.