person with house keys to a new home

Is a new home purchase tax deductible?

By Buying Process

If you have just bought a new home or are about to, you definitely will be interested in finding ways to save as much as you can – including on taxes. Which raises the question, home buying tax deductible?

That’s a big question, and the answer breaks down into several more detailed areas. Here are the most important things you need to know about whether buying a new home can be deducted from your tax bill.

You Can Deduct Certain Mortgage Expenses

In general, you cannot simply deduct home-buying costs – but there are important exceptions that are tax-deductible. Some of these are mortgage-related.

First of all, you can usually deduct the “points” from a prepaid mortgage. Under the points system, the lender charges a fee of from one to three percent (one to three “points.”) This will add up to thousands of dollars, so it’s good to know that chunk of change is fully tax-deductible.

Under the Tax Cuts & Jobs Act, you can also deduct the interest paid on your home mortgage. That’s huge! While there is a cap of either $1 million or $750,000, most people will be able to deduct 100% of mortgage interest – and the interest is often as much or more than the cost of the home.

Also, you can deduct mortgage insurance premiums, and low-income home buyers may qualify for the mortgage tax credit deduction which allows them a tax credit of 20% of mortgage interest per year or up to a $2,000 limit.

Property Tax Deductions

When you buy and/or build a new home, you can also start deducting state and local taxes, especially property (real estate) taxes. Up until 2025, there is a $10,000 cap on this deduction which was introduced by the Tax Cuts & Jobs Act.

Being able to deduct taxes from your taxes may seem ironic, but it may add up to a deduction of thousands of dollars per year.

Deduct Home Equity Loan Interest

If you take out a home equity loan on your new home, you can also deduct the interest paid on that loan up to a limit of $100,000.

You may wish to use this kind of loan for further home improvements or to build a second home or improve a second home. This may be a way to build a new home or a vacation home and save some money while doing it!

Capital Gains Deductions / Exclusions

Finally, if you are selling your old home to move into your new one – very often the case, you can subtract all the home repair and home improvement costs you put into your old home over the years from the capital gains tax basis.

And if you qualify for a capital gains exclusion, you can keep the first $250,000 profit from selling your old home (or $500,000 if filing jointly as a married couple.)

Thus, while home buying is not technically an official tax-deductible activity, there are nonetheless ways to get deductions, credits, and other tax savings with buying a new home (and selling an existing home.)

To learn more about how you can reduce your tax bill when going through the home buying process, talk to your local tax professional, and then contact the professionals at Experience Homes in Amarillo, TX today to get you started with a new home!

winter home

Winter-Proofing Your New Home

By Uncategorized

After moving into your new home, the last thing you want to do is risk seeing it damaged for lack of proper winterization techniques. Plus, winter-proofing your new home will help keep down your monthly energy bill during the most energy-intensive season of the year.

Thus, even with a new home that is well-built, well ventilated, and generally energy-efficient, there are steps you can take to ensure you don’t have any problems during your first winter in your new “dream home.”

 

  1. Winterize Outdoor Faucets

Many times, people forget to winterize their outdoor faucets, but unless you do, they could freeze. A pipe could even burst. Simply disconnect the hose and drain it. Then get a faucet cover from your local hardware store or use a cloth for the same purpose.

 

  1. Insulate Exposed Pipes

Indoor pipes can be in danger of freezing in a cold snap too. Use foam or fiberglass insulation covers to protect them. Pipes in a crawl space, attic, or exterior wall are especially vulnerable. Insulating exposed pipes will also help lower your energy bill if heated water runs through those pipes.

 

  1. Winter-proof Windows & Doors

If there are any gaps around your windows or doors, you should have them sealed with wood filler. You may also need to caulk around the edges of windows and install weather stripping and a door sweep. You’d be surprised how much energy can be lost through windows and doors, so take time to test for drafts and to seal them all off.

 

  1. Change Your Furnace Filter

One simple action that can make a big difference in your wintertime energy bill – and indoor air quality, is changing your furnace’s filter. All too often, a sluggish furnace or a spike in the monthly electric bill is due to nothing more than an old, dirty filter in your furnace.

 

  1. Get An Up To Date Thermostat

Installing a programmable thermostat can save you lots of money this winter. You can program it to raise or lower the temperature setting at specific hours of the day. That way, you aren’t paying to keep an empty house at a high setting or coming home from work to a chilly indoor temperature.

 

  1. Winterize Window-set AC Units

To prevent an air leak, you need to either remove window-based AC units for the winter or properly seal and cover them. You can buy covers for the outside end of the unit and use tape on the inside if there are any gaps that need to be sealed.

 

  1. Be Sure You Have Enough Insulation

If you’ve not yet added sufficient insulation to your home, it’s best to do so now. A new home will have new insulation and should have a good R-value. But you might want to consider adding another layer in the attic or crawl space if you’ve not already done so.

 

  1. Let The Sun Shine In!

During the winter months, use your windows wisely. Cover them with drapes, curtains, or blinds during the night, but let the light shine in through them during the sunniest part of the day. This strategy will help keep heat in at night and add extra “free” heat during the daytime.

 

For all of your “dream home” needs, contact Experience Homes in Amarillo! Also, find out more about our custom-built homes, home trade-in program, and other services.

house for sale in the winter

Why List Your Home During The Winter Months?

By Holiday, Selling Process

While many homeowners assume that spring or summer is the ideal time of year to list their home for sale, this is not necessarily the case. In fact, there are many good reasons why listing a property during the winter months is the best overall strategy.

Here are the top 5 reasons to list your home during the cold season instead of amid spring flowers or in the balmy summertime:

1. There Is Less Competition

Contrary to popular opinion, the real “sweet spot” for home sales is in the dead of winter. The reason is obvious – there is less competition on the market, which puts the seller at an advantage due to the regular laws of supply and demand.

With fewer homes to choose from, the hard fact is that buyers can’t afford to be as “picky” if they plan to buy during the winter months. That’s why the best time to list a home is (arguably) from November through January and especially during December.

2. You Get Only Serious Buyers

Think about it. If someone is motivated enough to go about shopping for a new home in cold weather. Packing up and moving during the winter is not much fun either, nor is working around a busy holiday schedule. Thus, winter buyers are almost always “serious” buyers who won’t waste your time and who come prepared.

3. Selling Prices Are Higher

The above-mentioned factors lead naturally to wintertime home sales prices tending to be higher than in the spring or summer. On average, homes sell for 1% more this time of year. That may not sound like much, but 1% of a $300,000 home is $3,000 cash in your hand.

4. Selling Times Are Shorter

Additionally, homes listed in the winter tend to sell a week or more sooner than otherwise. That is unsurprising, given that buyers are serious and maybe on a fixed time table. What it means for the seller is less wait time, less stressing over “what if it doesn’t sell,” and getting into your new home quicker!

5. Financing Processes Quicker

Bankers are less busy in the winter as well, which also works to your advantage. It is easier for people to get pre-approved for a mortgage and to obtain financing faster. The bottom line is that everything just moves faster in a smaller seasonal market.

For help in listing your home, custom-building your dream home, or for information on our home trade-in program, contact Experience Homes in Amarillo today!

wreath

Host with the Most in Your New Home 

By Holiday

With the holidays right around the corner, there’s a good chance you’ll be hosting a major get together this year in your new home. If so, you may have had little time to gather your thoughts when it comes to holiday decor, planning meals and events, and making guests feel welcome.

There are so many aspects to hosting the holidays, and some timely guidance and tips can make a big difference. In that vein, here are 6 top holiday hosting tips to put to use in your brand new abode!

 

  1. Provide A Memorable Entry

As soon as your guests walk into your home, they should feel welcome and excited to be there. To accomplish this, greet each new arrival personally or have a designated door greeter take their coats and hats. Make it a “take your shoes off” event – far more intimate and easier on your new flooring too!

Also, be sure there is plenty of room where guests walk in so they won’t feel cramped and a place to immediately set down gifts and other bulky items they may be bringing in with them.

 

  1. Have A Designated Welcome Area

It is important that new arrivals know where to go as soon as they arrive. Let them gather initially in a cozy living room with a modern fireplace lit, comfortable couches and chairs arranged in a semicircle, and the Christmas tree just across the room (along with other festive decorations.)

Also, it helps if the kitchen is not far away so guests can enjoy the aroma of delicious dishes wafting in – and snap up some cookies or other holiday snacks from a central table. The point is to let everyone come in, sit down, converse, and start getting into the holiday mood.

 

  1. Post A Schedule Of Events For All To See

All too often, people come to a party and feel lost. They aren’t sure what is coming next – or when. There’s nothing wrong with eliminating this problem by setting up an attractive, decorous sign or announcement board that outlines the day’s events.

Alternatively, you could mail all guests a page or card explaining the plan with the invitation, give a handout upon arrival, or just tell them what to expect in a few quick words just after they settle in.

 

  1. Keep The Indoor Environment Comfortable

Be sure you keep the indoor temperatures pleasantly warm and the air clean and dust-free. A modern heating/cooling system and automatic thermostat will make this simple, along with an up to date home ventilation system.

Also, be sure to open the curtains and blinds to let in plenty of sunlight if your event is during the daytime or to turn on the lights everywhere guests will be for the duration of the party should you host during the evening hours.

 

  1. Make A Statement With Exterior Decorations

To show off your new home and make an immediate holiday statement to every guest as he/she catches the first glimpse of your home and parks the car – go big on outdoor decorations.

Holiday lights outlining the entire front of the building will make your home easy to find and make it look friendly and inviting. An inflatable Santa and his tiny reindeer mid-yard, a high-quality door wreath, and a holiday-themed doormat will add to the charm.

 

  1. Make Every Room Festive With Indoor Decor

While the room with the tree and presents, the kitchen, and anywhere else guests will spend a lot of time are most important when it comes to indoor holiday decorations, don’t neglect hallways, decks, and even bathrooms.

Plan out every room. Include both unique and novel touches and traditional, nostalgic standards. A conversation piece or two in the main guest room is a smart move. And you should avoid having empty wall space or large sections of the home that look exactly the same as on non-holidays.

Poinsettias, handmade snowflakes, tinsel on the picture frames, doors decked out in wrapping paper, bows, and ribbons, and festive space rugs are just a few of the many ideas to explore.

Hosting Christmas in a new home is a wonderful experience. We’d love to show you one of our homes for sale in Amarillo or Canyon, or tell you more about our quality Amarillo home builders. We build new construction homes for every budget and you can even trade in your existing home. Let Experience Homes take the hassle out of buying a new home and help make your dream of building a new home become a reality this season or next!