Real Estate and Taxation

Looking to buy a house? Here's a guide on how to get the best price from property developers

2012-01-02T06:56:00.000-08:00

There are a few things better than a good bargain, more so if the object of purchase is as important as your dream house. As the economic condition becomes alarming and the demand for property wanes, those looking to buy a house can leverage the situation to get a good deal.

Developers are going through a phase of liquidity crunch. As home sales continue to be sluggish in many parts of the country, they are becoming more open to price negotiations.

In the current market where there is far more inventory of new properties than buyers, there is room for innovative negotiations with developers. It is important for developers to liquidate inventory.

KNOW THE TREND:-

            Knowledge about the local market will make you well equipped to bring the developer to the negotiating table. You should find out the prices of similar properties in the area. You should also know the period for which the property has been up for sale. If houses in a residential project have remained unsold for long. Its developers will be keen to strike a deal.

An analysis of prices is a must. Find out the launch price and compare it with the latest price. Enquire about the price trend from local brokers, who will be able to give an idea about how much discount you can expect on the quoted price. A person who has bought a house in the project is also likely to give you the real picture of the discount you can expect from the developer.

       Two factors that play a major role in price negotiations are the cash flow situation of the developer and the number of units he needs to sell. If the developer is cash strapped and has a lot of unsold inventory, it will like to clear the stock to generate cash. Therefore, the situation varies from one developer to another. The customer needs to guage that.

MAKING AN OFFER:-

Once you get an idea about the likely discount, make an offer. Talk to the developer’s sales team and tell it that you want to buy quickly. A developer is more likely to give a discount if it knows that you are a serious buyer.

Spare a day of two and go on a result oriented property hunt. A good strategy is to drive around the locality and get the best prices from a number of developers. Make a list of properties in which you are interested. Let each developer know that you are scouting for the best property at the most attractive price and that you wish to close the deal quickly. Tell developers that you will compare all the offers.

If sales in the area have been falling and there are a large number of unsold houses in the vicinity ,  point this out to the developer and use to your advantage. Selling quickly , even at low prices, often works for the developers as they save the funding costs and get cash for new projects.

Once you have all the quotes, let the developers know your offer price. Your initial offer can be up to 15 % less than the quoted price, but you should be wiling to settle for a discount of seven to eight percent. Submit an offer to purchase the apartment even if you are not sure that the developer will accept it. Some developers will not begin negotiations until you give an offer.

SHOW THE MONEY:-

Developers are interested in selling inventory as soon as possible. If you can make an upfront payment, you are more likely to get a good deal. You should keep cash ready for such a situation.

You should get a loan pre approved from a bank or a housing financing company. The most important advantage a buyer can have is the cheque book and the proof of home loan approval. These will indicate to the developer that the buyer is serious, making it more than willing to negotiate.

If the customer has surplus funds and wants to make a cash down payment, he can negotiate for further discounts, even as high a nine to 10 percent. If a customer has outstanding home loans, the situation will be different. 

USING INTERMEDIARIES:-

The real estate market has two sales models. Some developers have own sales teams while some take help from brokers. Often, they use both. The brokers can help you find a property fast as they are aware of the market and the projects in the area. A reputed broker can get you a good deal as well, but you will have to pay him for the service. Going solo will work to your advantage if you have researched the market well enough to get a good deal.

Usually buying directly from the developer is better. However, in many cases good brokers can get an excellent deal for their clients.

While the developer is selling multiple units, for most, home is a one time investment. It is important for brokers to provide value addition to customers.

Even when you take help from brokers, do your own research and enquire about prices directly. This way you can be sure that the broker is taking care of your interests and not trying to earn a bigger commission by quoting a higher price.

You can also team up with other prospective buyers. If there is a group of say three or more people, the negotiation is easier.

REALISTIC APPROACH:-

Whether you go out to buy alone or in a group, negotiate for what you estimate is a realistic price. While developers are willing to negotiate in today’s market, they are averse to reducing the quoted price below a certain point. This is partially because they do not want to publicise that some customers paid less than the others. They are more likely to offer other freebies or incentives.

Most developers hate to haggle , so gather all your negotiating points into a single offer and position it as a take it or leave it proposition.

Some developers might not agree to lower prices to your desired level due to various reasons such as high costs. In such a situation, let the developer know you will analyse the offer before arriving at a decision. Analyse the offers, you have but wait for a couple of weeks before going for the best deal. Do not be surprised if you hear from some developers willing to close the deal at your offered price or a mutually agreeable lower price.

Delhi Government Revises Circle Rates Property Prices to Go Up

2011-11-11T12:02:00.000-08:00

Delhi government today revised the circle rates for sale and purchase of properties in the capital, effecting a substantial increase for all colonies across the city, which may result in rise in property prices.
The Delhi cabinet, presided over by chief minister Sheila Dikshit, has fixed Rs9,000 per square metre as the lowest rate while the upper limit will be Rs1,25,000 per sq m.
The circle rate is the minimum rate for valuation of land for residential use that differs for various categories of colonies.
The cabinet also decided to do away with fixing the rates based on categories of colonies decided by the MCD and prepared a fresh list of 2,480 colonies for which rates have been finalised considering the available infrastructure and other parameters.
As per the revised rates, Rs1.25 lakh per sq m has been fixed for posh colonies like Defence Colony, Greater Kailash, Gulmohar Park, Panchsheel Enclave, Anandlok, Green Park, Hauz Khas and Nehru Place.
Currently, the circle rate is Rs43,000 per sq m for posh colonies falling in category A.
"We have decided to abolish the existing eight categories of colonies. The Revenue department has identified 2,480 colonies for which the new rates have been fixed," chief minister Sheila Dikshit said.
The new circle rates will be fixed according to the properties falling under various categories.
The cabinet has increased the minimum circle rate of Rs6,900 to Rs9,000.
Revenue minister Raj Kumar Chouhan said the new rates will come into effect within the next 20 days.
"The new rates will come into force after issuance of a notification," he said.
Officials said that the increased rates may see property rates going up. They said that with the increase in circle rates, the government will also earn more from the registration fee of the properties.

Budget 2011: Simple Tax structure right way to Goods and service Tax

2011-02-25T10:04:00.000-08:00

India will miss the April 1, 2011, deadline to implement the goods and services tax (GST), with the BJP-ruled states playing spoilsport once again. However, an influential policy advisory body has lent some hope to speed up the reforms process to create a common market across the country. In its report released a week ahead of Budget 2011, the Prime Minister’s Economic Advisory Council (EAC) has asked the Centre to adopt GST within the existing parameters of the Constitution . This framework allows the Centre to tax goods up to the manufacturing stage and also tax services. All the Centre needs to do is prune exemptions, convert specific excise duties — in commodities such as cement — to ad-valorem rates and tax all services.
Companies and service providers with a turnover of up to Rs 50 lakh should be out of GST and those above the limit should pay a 10% tax. The EAC’s recommendations are not new. These were proposed by an expert panel chaired earlier by M Govinda Rao, a member of the EAC and director at National Institute for Public Finance and Policy. The reforms, though seen as a step forward, are incremental . Already, most goods and services attract 10% duty. Manufacturers and services providers are also given credit for the input taxes that they pay on goods and services. The threshold exemption though varies for goods and services. Even a uniform threshold exemption will be a nightmare to administer.
Fact is the transition to GST requires two crucial amendments to the Constitution. These include new powers for the Centre to tax goods up to the retail stage and for the states to tax services. So, even if the EAC’s recommendations are accepted, the Centre cannot tax goods up to the retail stage. Most states support these amendments as this will strengthen their autonomy and boost revenues. In a federal structure, the Centre must also ensure that it does not infringe on the taxation powers of states. They should have the flexibility to change GST rates, if they want to, although they should ideally not. The government has done well to address some concerns of the states. It has watered down an amendment on the GST Council, originally proposed to be chaired by the finance minister.
The GST Council, with a majority representation of states, will be a useful forum for the states and the Centre to work out fiscal sense. The Centre should, therefore, continue its dialogue with the BJP-ruled states to forge a consensus on implementing GST at least in 2012. So far, the Centre and the states have agreed to a dual GST, comprising of a central GST and a state GST. Decisions have to be taken on the rate structure and list of exemptions . But the first step is to make the relevant amendments to the Constitution. Budget 2011 will not have big-ticket announcements on GST or even a clear timetable for transition. However, preparatory work is a must. The IT system that can service GST should be up and running and the administration should be fully geared to handle the new tax system in 2012.

Infrastructure firms want dividend tax waiver in budget

2011-02-24T07:45:00.000-08:00

India's infrastructure firms are hoping the federal budget would bring some sops including a waiver off dividend distribution tax,minimum alternate tax(MAT) and an extension of a tax holiday for the sector.
Most infrastructure firms have a maze of subsidiaries and holding companies, and dividend tax is applicable when income is distributed from the lowest level to the next higher level,a Mumbai-based analyst said.
Dividend distribution tax is levied at 17.5 percent.
"This is against the principles of equity, because any income can be taxed only once, not 20 times so this particular provision has to be relooked," GVK Power and Infrastructure Group Chief Financial Officer Issac George said.
Though one layer of dividend distribution tax was abolished, it is still applicable for other layers, said the analyst who declined to be named.
Private equity firms are keen on investing in projects or units which offer easier exit option coupled with the relatively higher returns. These projects are often executed through special purpose vehicles.
The segment enjoys tax holidays, but is hobbled by MAT, which the players feel is double taxation.
"On one hand you say that infrastructure projects are tax exempted... on the other hand you say pay MAT," GVK Power's George said.
"So, what is the big deal here?"
At present the industry pays 18 percent MAT and surcharge and cess, taking the total to 20 percent, Shailesh Kanani, sector analyst at Angel Broking,said.
Extended Holiday
Players also want an extension of a tax holiday that ends on March 2012, which exempted companies developing infrastructure assets like roads from taxes, a Mumbai-based analyst said.
"We need huge infrastructure development in the country and that is the call of the day," MBL Infrastructures Chief Executive Officer AK Lakhotia said.
The sector needs a boost, Lakhotia said, adding that it was still in the stage of infancy.
India,behind schedule on some of its infrastructure-building targets, intends to double spending in the sector during the five years starting in 2012 to $1 trillion.
The sector is also seeking cheaper loans for projects in an economy of soaring interest rates. Since March, India's central bank has hiked lending rates seven times.
However, not all are optimistic about the budget meeting their expectations.
"Cost of funds is a function of inflation," and cannot be addressed in the budget, according IRB Infrastructure Developers Chairman and Managing Director Virendra D Mhaiskar.
India's current infrastructure investments of 5-7 percent of Gross Domestic Product need to rise to 9-10 percent for the country's "growth trajectory" to go up, Angel's Kanani said.

Spending Mistakes that Could Cost You Your Financial Freedom

2011-02-23T08:17:00.000-08:00

Can't seem to get ahead financially? Debts piling up? Maybe you're making some of these mistake unknowingly. These mistakes listed below will help you understand where you may be going wrong and how to get back on track quickly.

Mistake 1. Living Beyond Your Means

This is the real cause of your worry and stress. If you are spending more than you are earning, whose money are you spending? It's the credit card provider's or the bank's. The cost of this money is interest.

The way out - Make a Commitment to yourself only to spend within your income limits. Maybe you could increase your income (or cash in) by applying for more skilled positions, selling some of your unused articles or assets. Is the second car really a necessity? What about working out ways to make your hobby pay for itself?

Why not find ways to reduce your spending? How much would you save each year if you decided not to have the daily coffee shop coffee? Why not make your work lunch each day rather than buying it? Commit to only buying the necessities.

Mistake 2. Paying Off Less Than the Full Credit Card Balance Each Month

Get this debt under control and your life will be much easier. If you are like many others and only pay the minimum balance each month, the interest on the interest makes those purchases oh so expensive.

The way out - Find ways to put aside more money to apply to the credit cards. It will take time to reach this goal. However, if you don't make a start now you may never pay them off. This situation did not occur overnight and neither will the solution. But, by diligence and commitment you'll get there.

Mistake 3. Not Really Knowing Your Financial Situation

Before you can set meaningful goals and develop savings strategies you need to know your financial situation now. The best, proven and tested method by far, is by developing your own personal budget.This is not hard to do. Please don't give up now. Just follow these simple steps:

The way out -
a)Find your latest credit card statements. Write down all the unpaid balances.
b)Are there any other unpaid debts (not home or car) then include these balances as well.
c)List out your (or family) monthly income. Only the amounts "brought home". Include all types of income.
d) Work out your monthly spending. List out where all the money goes. Don't leave anything out.
e) Minus the monthly spending total from the monthly income total and review the answer.
This will give you an initial idea as to whether you are living within your means or on borrowed money.

Mistake 4. Continually Adding to Your Debt

If debt has got you into this situation it is critically important not to add to the state of affairs and thus make it worse.

The way out - cut up the credit cards, keeping only 1 for emergencies. Don't buy on impulse. Ask yourself twice or three times before you buy anything "Do I really need this?" before you hand over your hard-earned money. Don't buy at the height of the fashion or fad. Commit to never paying full retail for anything. Get it on sale or negotiate a lower price.

Mistake 5. Spending All Your Income

It may sound OK to spend any money you earn but there are risks attached to this strategy. How are you going to pay for emergency items? What about major car repairs. What about major electrical appliance replacement? Are you going to pay for these on credit? Bad idea! How are you going to save for a substantial deposit on the next car?

The way out - Once you've prepared your budget you will clearly see what you need to do to put some income aside for other needs such are emergencies and repairs.

Mistake 6. Spending Without Caring About Your Future

Unless you are planning for your future and financial security, you cannot be really happy. There are always worries lurking in your mind about how you would survive in a financial emergency if you have no savings. It can be very rewarding to see how quickly your savings multiply over time with only a small investment each payday.

The way out - Take stock of your life and realize that tomorrow won't look after itself. It needs your attention. Keep some funds aside to put away for your retirement, children's college costs, emergencies, holidays and major purchases.

Avoid these spending mistakes and you'll be well on your way to financial freedom. Guaranteed.

Positives and Negatives of Different Types of Investments

2011-02-23T08:08:00.000-08:00

When deciding where to invest your money, you need to always take into account your investment goals and objectives. Different types of investments carry varying degrees of risks and potential return.

CD
A bank CD is a very safe investment.The CD is FDIC insured up to $100,000, so there truly is minimal risk. The only downside is that you cannot withdraw that money in the CD for a specific amount of time or else you'll receive a penalty.Bank CDs generally only pay up to 5% interest.
Bonds
A bond is essentially a loan you make to a company or a government. Bonds have varying degrees of risk, from essentially risk-free treasuries to junk bonds. The higher the risk of the bond, the higher the return will generally be.
Stocks
Stocks are investments in companies. Depending on the company, the risk of the investment can be high or low. Obviously,buying stock in Johnson and Johnson is a lot less risky than a new internet start up company.In general, the stock market returns on average about 10% a year, though the actual return of any given stock will vary significantly.
Mutual Funds
A mutual fund typically invests in over 100 stocks, so it's an instant way to diversify your portfolio. However, the mutual fund generally charges a fee, which is about 1% of your assets per year. Because of this fee, most mutual funds do not outperform the market; a monkey blindly picking 100 stocks but not charging you a fee could easily outperform most mutual funds.
Real Estate
Real estate is a popular investment.The most obvious real estate investment you'll make is when you purchase your home. Your home can go up or down in value when you sell it; it depends on the housing market in your area.

Employee Stock Options The Latest Info on Taxation

2011-02-18T04:30:00.000-08:00

There have been a couple of recent developments concerning the taxation of employee stock options of which advisors should be aware. However, before discussing these, a quick review of the taxation of stock options is warranted.
The tax rules
Options give employees the opportunity to purchase shares of their employer for a predetermined price, known as the exercise price. The difference between the fair market value of the shares at the time the options are exercised and the exercise price must be included in the employee's income. New rules introduced in 2000 allow this income inclusion to be deferred until the year the shares are sold (subject to an annual $100,000 vesting limit). The employee is then generally entitled to claim a deduction equal to 50 per cent of the income inclusion, which means that the stock option benefit is taxed at the same rate as a capital gain.
Assume that Jack received 1,000 stock options to purchase shares of his employer at $10 each. The price on the day he exercises his options is $25. His employment benefit is $15,000 or ($25 - $10) X 1,000 shares. He may claim an offsetting deduction of $7,500, so that his net employment benefit is reduced to $7,500, which, subject to the $100,000 limit, will not be taxed until the year of sale.
The adjusted cost base (ACB) of Jack's shares is $25,000, calculated as $10,000 (exercise price of $10 X 1,000 options exercised) plus $15,000 (the option benefit determined above). When Jack ultimately disposes of the shares, a capital gain (or loss) may result. For example, if he sells the shares when the price increases to $30, his capital gain would be $5,000 ($30,000 - $25,000).
Underwater stock options
What if Jack had sold the shares when the price was only $20? Jack would now realize a capital loss of $5,000. This capital loss can't be used to offset the option benefit of $15,000 as the option benefit is considered to be "employment income" and not a capital gain. Capital losses can only be applied against other capital gains in the current year or, alternatively, can be carried back three years or forward indefinitely to offset capital gains of other years.
It is this mismatch of employment income and capital loss that has caused much angst among employees who may have exercised options (perhaps because they were expiring) but continued to hold the shares. These employees may have lost significant amounts of money on the sale of option shares, yet also find themselves with a substantial tax bill on the option benefit, which was never monetized.
The Canada Customs and Revenue Agency (CCRA) is aware of this issue and has stated that it is currently under review by the Department of Finance. One solution that has been suggested to rectify the problem is that shareholders who have a capital loss on shares acquired by virtue of exercising options be allowed to apply the capital loss against the option gain (i.e., the employment benefit). The problem with this solution from a tax policy point of view is that once an employee has exercised stock options, he or she steps out of the shoes of being merely an employee and becomes a shareholder. That individual has made a conscious decision to hold the shares instead of selling them immediately. Therefore, would it be appropriate to treat this person differently from someone else who purchases the same shares on the open market (as opposed to through an exercise of options) and may realize a capital loss on those shares at a later point in time? Surely, he or she should not be allowed to deduct this loss from his or her employment income. Because of this potential inequity, we are unlikely to see any changes to these rules in the near future.
Repricing of stock options
With the recent turbulence in the financial markets (particularly in the technology sector), repricing existing stock options has become a popular way to incent executives who have previously been granted options that are significantly underwater. There has always been a concern among tax practitioners that if the options were simply repriced (without actually being cancelled and new options issued in their place), such a repricing would disqualify the options from the 50 per cent option deduction upon ultimate sale. This is because in order for the options to qualify for this deduction, the fair market value of the shares on the day the options are granted cannot exceed the exercise price. On a repricing, this condition would, by construction, not be met.
Last year, the Department of Finance stated that they were prepared to allow a repricing of stock options (retroactive to 1999) without the need to reissue new stock options and still have them qualify for the option benefit deduction of 50 per cent. This is good news for your clients who may have received stock options in the past and who find that they are now being repriced given today's market environment.

Realty Market can only fall to strategic ploys

2011-02-18T04:23:00.000-08:00

In a dynamic market, where real estate investments are soaring, can new entrants hold their own against established players? This is an issue being seriously debated by a host of players in the industry and the corridors of the ministries of finance and urban development. The biggest issue in real estate development is the fact that it is capital intensive and requires a large amount of money to sustain itself through the long gestation period of the project.
While established players could leverage their brand equity and unlock the value of their land banks to secure formal loans for new projects, new players had to fend for themselves. For over five years now, the real estate market has been growing at a healthy 30% per annum. Investments from banks, financiers, high networth individuals (HNIs) and small investors was at an all-time high.
When the going was good and investors were underwriting large numbers of units for future gains, finances were never a problem. Prelaunches were a means of securing money upfront for use during the construction period. "The logic was that during a pre-launch, an investor was taking greater risk as he was putting money upfront for a project before the mandatory sanctions were in place. He, therefore, invested a smaller per sq ft cost. When the sanctions were secured, the developer sold at a higher cost, thereby allowing the investor to sell in the secondary market at a value above what he had purchased and below the market cost," explains a real estate investment advisor.
While this practice was not necessarily legal, it fetched a lot of money for many small investors and a huge access to funds at the critical starting period of a project. During the boom cycle, developers could afford to be complacent and take money in pre-launches and delay the start of construction till enough funds were raised from investors - big and small.
Explains one of the big developers who did not want to be named: "Funds did not invest in land but came in when the sanctions were obtained and the project was about to start. But that was also the time when in a buoyant market, retail investors were pumping in money and there was enough money available with the developer to complete the project." This bridge period from the launch to money inflow was then met by the banks with short-term loans to developers, as the banks themselves had a problem of too much liquidity. As a result, banks were willing to fund all kinds of projects and even new entrants could raise loans on the basis of future developments.
But in a slowing market with higher interest rates, where the buyers are normally end users who want possession of their apartments for self-use at the earliest, developers cannot afford to be complacent and slow in completion of the project. So where do the new entrants raise finance? Experts deliberated this issue at the Credai NCR Conference on Investment Environment and Funding Mechanisms in Real Estate in New Delhi last week.
Explains Abhishek Kiran Gupta of Jones Lang Lasalle Meghraj: "There is no dearth of finance for real estate development even today." There are plenty of private equity funds bringing funds for property development. And good projects always find takers. That's the issue today. New entrants have to set their house in order, secure clear titles for land, make meticulous plans for the developments and explain to the funds and new financiers how the project will move through its lifecycle.

Ways to Save Income Tax

2011-02-15T07:49:00.000-08:00

Some of the Sections of Income Tax Act, 1961 are detailed below which detail few exemptions and categories of exempt income that you can take advantage of:Section 80C:Investment in specified instruments and expenses
Section 80C gives every income tax payer up to a maximum of Rs. 1,00,000 tax free income in a year if they invest in or buy the following instruments. Please not that this is a combined total of Rs. 1,00,000 and not an individual figure for every instrument:
Premium for Life Insurance or ULIP
Provident Fund (PF) contribution
Public Provident Fund (PPF) - only up to Rs. 70,000 in a year
Repayment of home loan principal
Equity Linked Savings Schemes (ELSS) of Mutual Fund Companies
Infrastructure Bonds
National Savings Certificates (NSC)
Tax Saving Fixed Deposits with Banks
Tuition Fees of children

New tax code for NRI'S

2011-02-12T11:01:00.000-08:00

India’s New Direct Tax Code (DTC) described as generous to residents unfortunately seeks to extract a mouthful from millions of non-resident Indians (NRIs). It is good news that the government is all set to replace the age-old Income Tax Act of 1961 and bring far reaching changes in the tax structure with an aim to tax those citizens in lower income brackets as little as possible, bring the growing number of rich people in the tax net and prevent tax evasion in the notoriously corrupt system.
With the possibility of archaic rules getting replaced with new ones from 2011-2012, emerging India seems to have welcomed the path-breaking initiative taken by the central government. However, scores of NRIs are disappointed and are sure to seek changes in the proposed laws that affect them negatively. For example, under the DTC, NRIs staying in India for more than 59 days in a year and 365 days or more over a period of four years prior to the financial year will be considered residents and are therefore liable to be taxed on their global income. Currently they can stay in India up to 181 days in a year and still have no tax liability on the income earned outside India.

Complete Tax Saving Tips

2011-02-12T10:53:00.000-08:00

There are different ways to save your tax and save a lot of money. Even there are different plans to save your tax in India. New salary is revealed in India in 2010, people get a higher salary or higher current salary beyond their own expectation and the current salary is dependable upon the cutting of tax. All types of new income tax schemes will depend upon the India finance ministry for government employees as well as for private employees in India. India government gives different types of tax discounts and there are different type of popular tax saving options for the people of India such as funds, saving bonds and life insurance etc. There are number of banks in the list of most popular tax saving schemes in India. You can call any of the banks for the information about tax saving options. The tax saver will tell you about the plans and procedure about the tax saving according to your current salary or total CTC. It is better to pay the car loan EMI, home loan EMI and many more in advance because the bank will imply the new interest rate at higher level up to 0.50%. So don’t take your loan EMI very easily.
A powerful systematic investment plans will help people in India. Reserve bank of India has various tax saving tools. The bank will sign the bond for 3 and 5 years at the rate of interest is 7.5% per annum. There are two types of bonds under the reserve bank of India such as cumulative bond and non-cumulative bond. There are so many private sector banks in India for tax saving. The best way to get information about saving tax is get in touch with a tax consultant. He has the complete information about tax implied on your salary and how you can save it. It is suggested to give the exact information about the income you receive from all sources. Mutual funds, Child insurance policies and health insurance plans can give you numerous benefits and you will be able to save tax. An agent will come at your place and help you fill the documents which you need to submit at the time of filing for year’s tax. This is because of the fact that the process may be confusing and tedious.
Getting help from a tax consultant, you will be able to save a lot of time and efforts. It is possible to save tax if you take right steps at the beginning of year. Proper planning and implementation is required so that you can save significant amount of money. One of the best options to get the information about tax saving schemes is to get online and browse various sites giving details about tax saving schemes. You do not have to do anywhere to get information as you can get it at the comfort of your home. You can also contact a tax consultant who can give you the best suggestions.

Ways To Sell Your Home

2010-12-23T03:20:00.000-08:00

"Home staging, concept has become well known as "house fluffing," "dressing to sell," and "home presentation" to name a few, but the concept has not taken hold among home owners when selling a home because many people do not understand the idea or cannot create a workable plan for staging their home correctly.

The focus of staging is to make a home more marketable by creating the most appealing home to the greatest number of prospective buyers. It should be impersonal enough not to infringe on a buyer's own sense of style.

Decorating is optional. Staging, on the other hand, is essential - that is if you want to sell your house for the most possible money in the shortest amount of time. Staging - it is the difference between ordinary and extraordinary.

A Few Tips:-

1. Be sure that your home is staged before you or your Realtor takes the photos for the web. Over 70% of all new apartment/home searches are started on the Internet. It is imperative that the property looks good in the photos so that it can attract as many people as possible to see the real thing.

2. You should not have one person look at your house until it has been staged completely. It should not go through the broker walk through, open houses, or anything. Stage first!

3. Home staging works for all properties regardless of the price point because home staging is about preparing your home for a faster and more profitable sale and marketing your property to the most potential buyers for its target audience.

4. If you have dark cabinets, a light colored handle or something in shiny gold will enhance them. If you have light cabinets, you can give them the sleek look by using handles of the same color so that they are hardly noticeable or by using brushed silver handles. With light wood, you can also use darker handles, gold, bronze, or even colors.

5. Sometimes renovations are needed. However, here are five that you should avoid:

- Adding high end appliances to a modest home
- Adding hand painted tiles to the bath or kitchen
- Adding a central vacuum
- Adding air conditioning (unless you are in an area that all homes have it)
- Replacing windows with newer models

6. Be sure to check with your city or county building inspector before beginning a new project. Many departments require permits, even for things as simple as changing a dishwasher.

7. Everything in its place is a good motto to remember. Always find appropriate places to store your items. Litter boxes in the kitchen and trashcans in the pantry are just two examples of inappropriate placement.

8.Do not have any cleaning products visible. You want the buyer to think that the house cleans itself. You do not want to remind buyers that there will be work to do in this house, so put away laundry baskets and dish drainers as well!

9.Selling an empty home can be a huge mistake. Buying or renting furniture is especially vital in an empty home. Empty homes do not show well and can sit on the market for months until a buyer with a good visual imagination comes along, or until the seller drops the price so low that the home is a steal.

10. Your refrigerator will need to be cleaned, even if you are not leaving it. People will still look inside and a dirty refrigerator will turn them off. If you are taking it with you, you may as well clean it now. If you are leaving it, then it is imperative to have it sparkling.

11.Each room should be embellished with accessories artwork, mirrors, accent tables, silk trees and florals, as well as dishes, bedding, and towels so all areas look inviting.

12. Check for unusual odors in your house. It may come from a pet or even from your upholstery.

13. Cleaning is rarely fun for anyone, but it does not have to be a terrible chore. Play some fun, lively music. Before you know it, your adrenaline will start pumping and you will be dancing your way through the house.

14. To clean those irritating stains in the bathtub, make a paste by using hydrogen peroxide and cream of tartar. Use an old toothbrush to rub the mixture into the stain and rinse thoroughly.

15. To clean the microwave, fill a paper cup with water and a few tablespoons of baking soda. Nuke it for about 30 seconds, or until you see the contents explode. Then just take a paper towel and wipe it all off. The explosion spreads the cleanser over the entire area, and you can even use the moistened rag or paper towel to wipe outside the microwave and its surrounding area.

16.Do not offer money towards painting or installing new carpeting. Remember, if you are not willing to do it, your buyer is not likely to either.

17. Take a look around you. Do you have items in your home that are unused and have no real sentimental value? If so, get rid of them! These types of items can often be found in closets, cupboards, basements, and garages. Sometimes they are on bookshelves or even in your everyday living space. The more you are able to move out the more the next buyer will want to "move in."

18. If you do not have a plan for what to do with the stuff you no longer need, it will get put in the basement or the attic or the garage or simply stay in a pile in the room where it began. If this happens, then you really did not get rid of clutter - you just moved it to another location. When you are clearing the clutter for home staging purposes, you will have many different piles. Some things may go to a thrift store such as the Salvation Army, some things may go to the dump, some things may go into storage, and some things may be set aside for a garage or yard sale. Knowing what you are going to do with the extra clutter is essential to really decluttering your home.

19.A home for sale should always be presented in its best light and immaculate condition, which is not the reality of everyday life. Potential buyers do not want to see how you live, with your children, cats and dogs, and mess. They want to see themselves in a perfect house under perfect conditions and that is how a home on the market should always be presented.

20. If your kitchen cabinets, pantries, and drawers - even your refrigerator - look jammed packed, it sends a negative message to the buyer. This message is that there is not enough room in your kitchen. If they were looking for plentiful storage space, after opening your crowded cupboards, they will believe that they will not find it in your kitchen. The best way to change this negative first impression is to have as much "empty space" as possible.

21.If the dining room has an over sized china cabinet, consider removing it. Or, if has a top and bottom, remove the top. This will open up the space considerably

22. Take a look at your bathroom. If you are like most people, you will find half-used shampoo bottles, a jumble of hair accessories, a curling iron, foam curlers, several cans of shaving cream, tub toys, lotions, medication, books and magazines, oils, candles, toilet paper, and on and on and on. The amount of stuff we store in our bathrooms is far greater than the storage capacity for these small rooms, especially, if like many bathrooms, you have just a medicine cabinet and a very small vanity. The "stuff" that is not in use needs to be boxed up and moved out.

23.You should remove extra chairs from the tables. Unless you have a massive space, you will not need more than 4 chairs around a table. Also remove extra leaves from the table. This will make the room feel larger.

24. Buyers want to see your carpet or your hardwood floor or your linoleum. Most home stagers suggest removing all area rugs, unless you have a large area of hardwood, where one rug is acceptable. Area rugs make spaces seem more crowded. Without them, your floor plan opens up.

25. Closets are great for accumulating clutter, though you may not think of it as clutter. Perhaps the clutter is wrapping paper, or Christmas items, or an old sewing machine. Maybe you have some keepsakes, or photo albums. Then of course there are the extra clothes and shoes. None of these things are likely to be in the throw away pile, but they should not be in your closet if you want to reduce the look of clutter.

26.You need to be willing to change paint colors. There are certain universally accepted colors and these should be used when repainting your home. Yellow or shades of gold are warm and inviting. You should also accent with yellow. Your eye absorbs more yellow and therefore sees it first. Green or blue in the bedrooms are great colors because they are restful.

27. Stand a few feet away from the entrance to the bedroom. What do you see? Whatever you see is the first thing that a buyer will see. Is it pretty? Is it bulky? Does it make the room feel small? Move anything from the doorway that is not inviting.

28. A spare room should be viewed as a bonus. It is a "plus" feature of your home, but only if the buyers can view it as such. For example, if your spare room is used mostly as an office, then, during the selling process,you need to make it just that - an office! Get rid of the spare bed and the extra dressers full of last season's clothes. Get rid of the boxes of storage items in the closet. Keep the essentials of your office such as a desk, filing cabinet, bookshelf, and a nice chair in the corner with a small table and lamp.

29. Leave the garage free from storage. If people see that the seller does not have enough storage and has to use the garage, they will begin to wonder if the same thing will happen if they buy the house. People like to think that they might actually be able to use a garage!

30. Find out what organizations in your area pick up items. Here, you can list items you no longer need and then choose someone from a list of takers to have them. The best part is the person wanting the items comes to your home on your timetable to get them.

31. Get everything off the counters. Everything. Remove all appliances from the counter tops. Even the toaster. Doing so will make you kitchen look larger and more spacious. It will also keep the buyer's eye from stopping on a particular item rather than getting a full view of the room. Put the toaster in a cabinet and take it out when you use it. Find a place where you can store everything in cabinets and drawers.

32.The kitchen and baths need to be model perfect because the kitchen and baths sell the home.

33. Have you taken away so much that your home no longer has any sparkle? Although your personality needs to be removed, the personality of the house still needs to come through.

34. One of the most important factors to consider when placing items into a room is the idea of transition. As your eye moves around the room, you do not want it jumping from place to place or piece to piece. The movement of the eye should flow - not bounce. To accomplish this, you want to avoid abrupt changes in height.

35.Paint is very inexpensive and gives you a big bang for your buck. Although a bit labor-intensive, painting is not expensive and gives your home a new, fresh, clean look.

36. Give each room a touch of the unexpected. This can be done with artwork placed in an unusual way, using a piece of furniture in a way that you normally would not use it, or adding a dash of color where the eye least expects to find it. Be creative.

37. Follow the "like-with-like" rule of the thumb. Tall with tall, small with small, wide with wide, and narrow with narrow will guide you throughout the decorating process. Mimic the shape of each space you are decorating. For example, a sofa should be accessorized with horizontal art so you are complementing wide with wide.

38.Recognize that your major competition comes from newer homes. People will take a newer home over an older home if all else is equal. That is why it is essential to give an older home something that puts it above the rest.

39.You do not always need to use an item for its intended purpose. For example, do not just use a tablecloth for a table; make it a slipcover for your ottoman. It can save you lots of money and time when you purchase a tablecloth at a local chain verses buying yards of fabric and by purchasing the correct size it can become a no-sew project. Always keep your eyes open for new uses for everyday items.

40. Select a focal point for your room and subtly orient other furnishings and some lighting toward it. If there is a fireplace, it will nearly always be the focal point; other focal points might be bookcases or built-in shelving to house lovely collectibles, or a sofa with a striking painting on the wall above it.

41.There are two times that you can angle furniture: In a square room and if a room already has an angle in it, like a corner fireplace or a bay window.

42. In a bedroom, unless you have no other choice, you want to see the foot of the bed when you walk in. You do not want a bed to cross the doorway because it blocks the flow and makes the room look smaller. It is better to see the foot so that you can see the pretty pillows.

43. One of the easiest ways to create color is to add beautiful accent pillows to any room. Introducing a complementary accent color in a room can make a room "pop" and come alive. Accent pillows not only add color but texture and warmth as well. By adding throw pillows in a coordinating or contrast fabric to a couch chair, bench, or bed, you can transform your room and add instant warmth inexpensively!

44. One way to see if your home has curb appeal is to walk across the street and have a good look at your house. where did your eyes go? They should be drawn to the front door and entryway. If they are not, then you need to do something about it.

45.People do not see their house as a product that you have to market and sell. However, selling your home is like packaging. People look at the outside before deciding to come in. Then they look at the inside before deciding to buy, and it is mostly based on looks. It is packaging. You need to wrap up your product, your home, like a beautiful package.

46. Once you have gotten the front yard in shape, it is time to work on the backyard. The most important areas of the backyard are the patios, decks, and porches. Getting these areas up to date will give the buyers a feeling that they are getting bonus space.

47. New window treatments can make a world of difference. They can add value and style to your home and be something the buyers view as a bonus - something they will not have to buy or replace when they move in. The caution, however, is that you keep the treatments neutral and that you make sure they do not block the amount of light that comes into a room.

48.Many homes have the louvers of the blinds turned down to face the floor. A more enhancing way to use blinds is to turn the louvers up to reflect much-needed ambient light onto the ceiling.

49. Sometimes, refreshing a room can be as easy as changing a light bulb.

50.Things like bath bubbles, fluffy towels, and candles not only add the pampering feeling you are trying to achieve, they offer visual comfort with color and texture as well.

As you know, your home becomes a house - a product for sale. Staging your property gives you a more competitive edge in today's market by transforming it into a marketable product. A staged property helps you sell your investment for top dollar and is the first line of defense over lowering the price. Do not settle for less at the closing table simply because you did not understand the value of staging or did not want to take the time or spend the money to do it properly.