Chic vs. Geek: Brown is the New Green

Due to the ongoing drought, the Santa Clara Valley Water District has restricted homeowners to watering their lawns no more than two times a week. So what can you do to maintain your curb appeal?

CHIC (PEARL)

There’s never been a better time to rethink and renew your yard and gardens with succulents, cacti, and other plants built to withstand the West Coast heat with a minimal amount of maintenance – and water. But don’t dig up your lovely lawn without a plan! Contact us for tips and referrals to quality landscaping professionals.

GEEK (KEVIN)

If years of shrinking reservoirs and rising water rates haven’t convinced you to convert your lawn to hearty native plants, I don’t know what else will. So the best advice I can offer is to invest in reseeding your lawn with bermuda, fescue, or another type of drought-tolerant grass. Here’s a helpful review of the options.

Chic vs. Geek: Are you ready for a Deep Energy Retrofit?

With Earth Day approaching, you might consider doing a Deep Energy Retrofit (DER) of your home to improve efficiency. But it doesn’t come cheap!

CHIC (PEARL)

When you’re looking into a DER, the best place to start is with a Home Energy Rating System (HERS) audit. That’s when a professional energy auditor visits your house to test for air leaks and run other tests to determine your home’s energy efficiency. Based on that report, you can target the most wasteful features of your house for upgrades and get the most bang for your buck.

GEEK (KEVIN)

Doing a DER on a budget can help inspire you to think outside the box and get a little creative. There are tons of tax incentives and government programs to assist with financing the project, and a little research and extra leg work can point you to contractors who make energy efficiency pencil out as part of their mission to protect our environment and build a more sustainable world.

Chic vs. Geek: It’s go time!

The deadline to file your 2021 federal income tax return is less than one week away on Monday, April 18th. Are you ready?

CHIC (PEARL)

Buying a home is a huge investment, but it also comes with tax benefits for the homeowner. Did you know? The IRS offers a number of deductions and credits to both first-time homebuyers and longtime owners, such as mortgage interest deductions and credits for renewable energy upgrades like solar panels. Check out this list of available opportunities compiled by Investopedia.

GEEK (KEVIN)

If you want to take advantage of tax breaks, you have to be prepared to itemize your return, which could involve hiring a professional accountant. So the first thing you want to do is make sure you’d get a much better deal itemizing rather than taking the standard deduction. If it doesn’t pencil out, why spend all that time and energy when you could be relaxing all weekend?

Chic vs. Geek: Responding to Buyer Love Letters

We’ve talked about the pros and cons of sending “love” letters to sellers to highlight all the reasons you’re the perfect buyer for their home. But what are the do’s and don'ts for a seller who receives one?

CHIC (PEARL)

While they may seem harmless, buyer “love” letters can get a seller in trouble because they often include personal information that could reveal characteristics of the buyer like race, religion, or familial status. Why is that a problem? That information could create a conscious or unconscious bias in the seller’s decision to accept or reject an offer, which would violate fair housing laws.

GEEK (KEVIN)

At the end of the day, your decision to accept or reject an offer has to be based on objective standards, like the offer amount or the ability to pay in cash. We always let sellers know up front that we will never deliver buyer love letters, and we advise them to document the basic facts of every offer they receive and their objective reasons for saying yes or no to every prospective buyer.

Chic vs. Geek: The Benefits of Paying Taxes

Buying your first home can be a daunting commitment when you add up a monthly mortgage, property tax increases, and potential renovations. But there’s a silver lining to these expenses.

CHIC (PEARL)

It may seem like a long, uphill climb now, but I guarantee that nobody who bought their first home 10 years ago regrets the decision, no matter what they had to pay. That’s mainly due to the appreciation of the home’s value, but it’s also about the tax benefits. For one thing, you’re living in the home rent-free, and you’re not being taxed on income from renting the property. You can also deduct mortgage interest and property tax payments, as well as certain other expenses from your federal taxable income, as long as you take the time to itemize your deductions. Additionally, you can exclude capital gains you get from the eventual sale of the home – up to a limit, of course!

GEEK (KEVIN)

True, the benefits of homeownership outweigh any of the negatives, but it’s important to note that homeowner tax deductions and exclusions are worth more for folks in higher tax brackets than to those in lower brackets. For example, according to the Tax Policy Center, deducting $2,000 for paid property taxes saves someone in the top tax bracket about $740, but it only saves a taxpayer in the standard bracket $440. And despite representing only 26% percent of all taxpayers, folks with incomes of $100,000 or more get 90% percent of the tax benefits from the mortgage interest deduction. That’s because they’re likely paying more and itemizing their returns.