Tara O'Brien's Minneapolis Real Estate Update: December 2010

Labels: buying a home, buying and selling a home, condos and lofts, home buying process, home for sale, homes for sale., housing, housing prices, market update, minneapolis real estate, minneapolis realtors

From energy tax credits to vacation home deductions, check out these tax tips for homeowners looking ahead to 2010 returns.

Claim remaining energy tax credits
It's time to get cracking if you didn't exhaust your full allotment of residential energy tax credits during 2009. Although tax credits for big projects like residential wind turbines and solar energy systems have no upper limit and are good through 2016, energy tax credits capped at $1,500 expire at the end of 2010. Eligible capped projects include new windows and doors, insulation, roofing, water heaters, HVAC, and biomass stoves.

Here's how it works with capped federal credits: You can earn energy tax credits worth 30% of the cost of qualifying improvements, but the total tax credits can't exceed $1,500 combined for 2009 and 2010. So if you only took, say, $700 worth of capped energy credits on your 2009 tax return, you're still due for another $800 in credits in 2010. Some projects include the cost of installation--a furnace, for example--while others, such as insulation, are limited to the cost of materials.

Max out tax benefits of a vacation home
Use a vacation home wisely, and it'll provide a break from taxes as well as the hustle and bustle of everyday life. The rules on tax deductions for vacation homes can get a bit tricky, but understanding and adhering to them can yield many happy tax returns.

If your vacation home is truly a vacation home meant for your personal enjoyment, as opposed to a rental-only income property, you can usually deduct mortgage interest and real estate taxes, just as you would on your main home. You can even rent out the home for up to 14 days during the year without getting taxed on the rental income. Not bad.

Now, let's say you want to rent out your vacation home for more than 14 days in 2010, but also use it yourself from time to time. To maximize the tax benefits, you need to keep tabs on how many days you use your vacation home. By restricting your annual personal use to fewer than 15 days (or 10% of total rental days, whichever is greater), you can treat your vacation home as a rental-only income property for tax purposes.

Why is that a big deal? In addition to mortgage interest and real estate taxes, rental-only income properties are eligible for a slew of other tax deductions for everything from utilities and condo fees to housecleaning and repairs. Deductions are limited once personal use exceeds 14 days (or 10% of total rental days), so get out your calendar now to strategically plot your vacations.

Take advantage of tax breaks for the military
In salute to members of the armed forces serving overseas who want to purchase a home, the IRS is extending a lucrative tax perk for military personnel. If you spent at least 90 days abroad performing qualified duty between Jan. 1, 2009, and April 30, 2010, you have an extra year to earn a homebuyer tax credit. In addition to uniformed service members, workers in the Foreign Service and in the intelligence community are eligible.

Thanks to this extension of the homebuyer tax credit, qualifying military personnel have until April 30, 2011, to sign a contract on a new home. The deal must close before July 1, 2011. Just like non-military buyers, first-time homebuyers can earn a tax credit worth up to $8,000, and longtime homeowners can earn a credit of up to $6,500. The same income restrictions and $800,000 cap on home prices apply.

Military personnel can also get a break if official duty calls and they're forced to move for an extended period. Normally, the homebuyer tax credit needs to be repaid if you sell your home within three years, but this requirement is waived for uniformed service members, Foreign Service workers, and intelligence community personnel. The new extended duty posting doesn't need to be overseas, but it must be at least 50 miles from your principal residence.

Challenge your real estate assessment
You can't do much about the rate at which your home is taxed, but you can try to do something about how your home is valued for taxation purposes in 2010. The process varies depending where you live, but in general local governments conduct a periodic real estate assessment to determine how much your home is worth. That real estate assessment figure is used to calculate your property tax bill.

You can usually appeal your real estate assessment if you think it's too high. Contact your local assessor's office to find out the procedure, and be prepared to do some research. There's often no charge to request a review of your assessment.

Look for errors. You probably received an assessment letter in the mail, and many local governments provide the information online as well. Make sure the number of bedrooms and bathrooms is accurate, and the lot size is correct. Also check the assessed value of comparable homes in your area. If they're being assessed for less than your home, you might have a case for relief.

Even if your assessment is accurate and comparable homes are being taxed at the same rate, there might be another route to tax savings. Ask your assessor's office about available property tax exemptions. Local governments often give breaks to seniors, veterans, and the disabled, among others.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Consult a tax professional for such advice; tax laws may vary by jurisdiction.

Mike DeSenne is Online Managing Editor for taxes, finances, and insurance at HouseLogic.com, and the former Executive Editor of SmartMoney.com. He likes to do his taxes by hand, much to the dismay of his accountant.

Labels: minneapolis market, minneapolis real estate, minnesota real estate, mortgage information

Regular home maintenance is key to preserving the value of your house and property.

“It’s the little things that tend to trip up people,” says Frank Lesh, former president of the American Society of Home Inspectors and owner of Home Sweet Home Inspection Co. in Chicago. “Some cracked caulk around the windows, or maybe a furnace filter that hasn’t been changed in awhile. It may not seem like much, but behind that caulk, water could get into your sheathing, causing mold and rot. Before you know it, you’re looking at a $5,000 repair that could have been prevented by a $4 tube of caulk and a half hour of your time.”

Maintenance affects property value
Outright damage to your house is just one of the consequences of neglected maintenance. Without regular upkeep, overall property values are affected.

“If a house is in worn condition and shows a lack of preventative maintenance, the property could easily lose 10% of its appraised value,” says Mack Strickland, a professional appraiser and real estate agent in Chester, Va. “That could translate into a $15,000 or $20,000 adjustment.”

In addition, a house with chipped, fading paint, sagging gutters, and worn carpeting faces an uphill battle when it comes time to sell. Not only is it at a disadvantage in comparison with other similar homes that might be for sale in the neighborhood, but a shaggy appearance is bound to turn off prospective buyers and depress the selling price.

“It’s simple marketing principles,” says Strickland. “First impressions mean a lot to price support.”

Prolonging economic age
To a professional appraiser, diligent maintenance doesn’t translate into higher property valuations the way that improvements, upgrades, and appreciation all increase a home’s worth. But good maintenance does affect an appraiser’s estimate of a property’s economic age—the number of years that a house is expected to survive.Economic age is a key factor in helping appraisers determine depreciation—the rate at which a house is losing value. A well-maintained house with a long, healthy economic age depreciates at a much slower rate than a poorly maintained house, helping to preserve value.

Estimating the value of maintenance
Although professional appraisers don’t assign a positive value to home maintenance, there are indications that maintenance is not just about preventing little problems from becoming larger. A study by researchers at the University of Connecticut and Syracuse University suggests that maintenance actually increases the value of a house by about 1% each year, meaning that getting off the couch and heading outside with a caulking gun is more than simply a chore—it actually makes money.“

It’s like going to the gym,” says Dr. John P. Harding, Professor of Finance & Real Estate at UConn’s School of Business and an author of the study. “You have to put in the effort to see the results. In that respect, people and houses are somewhat similar—the older (they are), the more work is needed.”

Harding notes that the 1% gain in valuation usually is offset by the ongoing cost of maintenance. “Simply put,” he says, “maintenance costs money, so it’s probably best to say that the net effect of regular maintenance is to slow the rate of depreciation.”

How much does maintenance cost?
How much money is required for annual maintenance varies. Some years, routine tasks, such as cleaning gutters and changing furnace filters, are all that’s needed, and your total expenditures may be a few hundred dollars. Other years may include major replacements, such as a new roof, at a cost of $10,000 or more.

Over time, annual maintenance costs average more than $3,300, according to data from the U.S. Census. Various lending institutions, such as Directors Credit Union and LendingTree.com, agree, placing maintenance costs at 1% to 3% of initial house price. That means owners of a $200,000 house should plan to budget $2,000 to $6,000 per year for ongoing upkeep and replacements.

Proactive maintenance strategies
Knowing these average costs can help homeowners be prepared, says Melanie McLane, a professional appraiser and real estate agent in Williamsport, Pa. “It’s called reserve for replacements,” says McLane. “Commercial real estate investors use it to make sure they have enough cash on hand for replacing systems and materials.”McLane suggests a similar strategy for homeowners, setting aside a cash reserve that’s used strictly for home repair and maintenance. That way, routine upkeep is a snap and any significant replacements won’t blindside the family budget. McLane’s other strategies include:

Play offense, not defense. Proactive maintenance is key to preventing small problems from becoming big issues. Take the initiative with regular inspections. Create and faithfully follow a maintenance schedule. If you’re unsure of what needs to be done, a $200 to $300 visit from a professional inspector can be invaluable in pointing out quick fixes and potential problems.Plan a room-per-year redo. “Pick a different room every year and go through it, fixing and improving as you go,” says McLane. “That helps keep maintenance fun and interesting.

”Keep track. “Having a notebook of all your maintenance and upgrades, along with receipts, is a powerful tool when it comes to sell your home,” advises McLane. “It gets rid of any doubts for the buyer, and it says you are a meticulous, caring homeowner.” A maintenance record also proves repairs and replacements for systems, such as wiring and plumbing, which might not be readily apparent.

John Riha has written six books on home improvement and hundreds of articles on home-related topics. He’s been a residential builder, the editorial director of the Black & Decker Home Improvement Library, and the executive editor of Better Homes and Gardens magazine. His standard 1968 suburban house has been an ongoing source of maintenance experience.

MinneapolisCondosTaraOBrien

Labels: buying a home, buying and selling a home, home buying process, staging your home for sale

Some electrical fire dangers are hidden inside the walls, but if you know the warning signs, you can keep an electrical fire from happening in your home.

Hidden danger #1: Old wiring
The lifespan of an electrical system is 30 to 40 years. But more than 30% of the nation's houses—some 30 million homes—are more than 50 years old. "Older homes with fuses were set up for about 30 amps of power; many homes now have 100, 150, even 200 amps of power," says John Drengenberg, consumer safety director for Underwriters Laboratories, which conducted a study of aging residential wiring.

Warning signs of inadequate power include circuit breakers that trip or fuses that blow repeatedly, and an over-reliance on extension cords. "They're meant to be temporary," Drengenberg says. "If you have extension cords routed all over, it's time to get an electrician out there. Your home would not comply with the National Electrical Code."

Hidden danger #2: Aluminum wiring
Many houses built in the 1960s and early 1970s have aluminum wiring, which oxidizes and corrodes more easily than copper and has been linked by the Consumer Product Safety Commission to electrical fires. "It's okay for a while, but it doesn't have the life that copper does, particularly where wires terminate. The terminals and splices are known for overheating," says Roger L. Boyell, a forensic engineer in Moorestown, N.J.

Short of a whole-house wiring upgrade, an electrician may be able to head off potential problems by installing copper connectors called pigtails at receptacles and breakers. "It's time-consuming," Boyell says, "but there's no big equipment involved."

Hidden danger #3: Arc faults
An arc fault—which occurs when electrical current veers off its intended path, often through a breach in wiring—is a leading cause of electrical fires, according to the National Fire Protection Association. It doesn't take much to cause an arc fault. You could damage wiring inside the wall when hanging a cabinet, a piece of furniture could cut through a cord, or there may be a loose connection in an outlet.

The resulting arc, capable of producing heat in excess of 10,000 degrees F, can be nearly impossible to detect. But arc faults are preventable. A device called an arc-fault circuit interrupter (AFCI) senses these dangerous abnormalities in wiring or appliances and shuts down the circuit before it overheats. The Electrical Safety Foundation International estimates that the use of AFCIs could prevent 50% to 75% of fires caused by arc faults.

AFCIs are now required on circuits covering most general living areas in new houses. (Note: These are not the same as ground-fault circuit interrupters, or GFCIs, which are used in kitchens, baths, and other wet areas to prevent electrical shocks.) But they're even more valuable in older houses, where connections may have degraded over the years. It's an easy job for an electrician to upgrade standard circuit breakers, which don't protect against arc faults, to AFCIs. At $30 to $50 per breaker, it could cost a few hundred dollars to retrofit every circuit. Still, weighed against the potential tragedy of a house fire, it's money well spent.

Hidden danger #4: Counterfeit electrical products
If you've ever gone to a flea market and seen vendors hawking extension cords, power strips, night lights, batteries, even circuit breakers for ridiculously low prices, there's a reason. They're probably counterfeits, and they're incredibly dangerous. "I've seen extension cords all over the country that have inferior copper in them-it's speaker wire, and it literally melts in your hands," says Brett Brenner, president of the Electrical Safety Foundation International. "They're putting a lot of people at risk."

Your best bet is to buy electrical products only from reputable retailers who will take things back if they don't work. And look for the Underwriters Laboratories seal. On low-cost items that are ripe for counterfeits, UL puts its logo in a holographic label that's much more difficult to reproduce.

If the worst happens: Extinguishing an electrical fire
Electrical fires are tricky to put out. If you douse them with water, you run the risk of electrocution, and not all chemical fire suppressants will extinguish them completely. To be safe, make sure your household fire extinguisher is rated A-B-C, which indicates that it is effective against fires involving ordinary combustible materials, flammable liquids, and electrical equipment.

Serial remodeler Pat Curry is a former senior editor at BUILDER, the official magazine of the National Association of Home Builders, and a frequent contributor to real estate and home-building publications.


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Labels: electrical, electrical fires, electrical saftey, fire dangers

The holiday season is one of the most dangerous times of the year for household fires, so take note of these tips to reduce your risk.

To keep your household from becoming a holiday fire statistic, here are some safety tips to follow.

Cooking
Cooking is the top cause of holiday fires, according to the USFA. The most common culprit is food that's left unattended. It's easy to get distracted; take a pot holder with you when you leave the kitchen as a reminder that you have something on the stove. Make sure to keep a kitchen fire extinguisher that's rated for all types of fires, and check that smoke detectors are working.

If you're planning to deep-fry your holiday turkey, do it outside, on a flat, level surface at least 10 feet from the house.

Candles
The incidence of candle fires is four times higher during December than during other months. According to the National Fire Protection Association, four of the five most dangerous days of the year for residential candle fires are Christmas/Christmas Eve and New Year's/New Year's Eve. (The fifth is Halloween.)

To reduce the danger, maintain about a foot of space between the candle and anything that can burn. Set candles on sturdy bases or cover with hurricane globes. Never leave flames unattended. Before bed, walk through each room to make sure candles are blown out. For atmosphere without worry, consider flameless LED candles.

Christmas trees
It takes less than 30 seconds for a dry tree to engulf a room in flames, according to the Building and Fire Research Laboratory of the National Institute for Standards and Technology. "They make turpentine out of pine trees," notes Tom Olshanski, spokesman for the U.S. Fire Administration. "A Christmas tree is almost explosive when it goes."

To minimize risk, buy a fresh tree with intact needles, get a fresh cut on the trunk, and water it every day. A well-watered tree is almost impossible to ignite. Keep the tree away from heat sources, such as a fireplace or radiator, and out of traffic patterns. If you're using live garlands and other greenery, keep them at least three feet away from heating sources.

No matter how well the tree is watered, it will start to dry out after about four weeks, Olshanski says, so take it down after the holidays. Artificial trees don't pose much of a fire hazard; just make sure yours is flame-retardant.

Decorative lights
Inspect light strings, and throw out any with frayed or cracked wires or broken sockets. When decorating, don't run more than three strings of lights end to end. "Stacking the plugs is much safer when you're using a large quantity of lights," explains Brian L. Vogt, director of education for holiday lighting firm Christmas Décor. Extension cords should be in good condition and UL-rated for indoor or outdoor use. Check outdoor receptacles to make sure the ground fault interrupters don't trip. If they trip repeatedly, Vogt says, that's a sign that they need to be replaced.

When hanging lights outside, avoid using nails or staples, which can damage the wiring and increase the risk of a fire. Instead, use UL-rated clips or hangers. And take lights down within 90 days, says John Drengenberg, director of consumer safety for Underwriters Laboratories. "If you leave them up all year round, squirrels chew on them and they get damaged by weather."

Kids playing with matches
The number of blazes--and, tragically, the number of deaths--caused by children playing with fire goes up significantly during the holidays. From January through March, 13% of fire deaths are the result of children playing with fire, the USFA reports; in December, that percentage doubles. So keep matches and lighters out of kids' reach. "We tend to underestimate the power of these tools," says Meri-K Appy, president of the nonprofit Home Safety Council. "A match or lighter could be more deadly than a loaded gun in the hands of a small child."

Fireplaces
Soot can harden on chimney walls as flammable creosote, so before the fireplace season begins, have your chimney inspected to see if it needs cleaning. Screen the fireplace to prevent embers from popping out onto the floor or carpet, and never use flammable liquids to start a fire in the fireplace. Only burn seasoned wood--no wrapping paper.

When cleaning out the fireplace, put embers in a metal container and set them outside to cool for 24 hours before disposal.

Pat Curry is a former senior editor at BUILDER, the official magazine of the National Association of Home Builders, and a frequent contributor to real estate and home-building publications.



MinneapolisCondosTaraOBrien

Labels: buying and selling a home, home staging

Take a look at the most common things that can go wrong when you have guests and learn how to prevent them.

That’s just one of many hosting nightmares that can end your holiday party before it even begins. Thankfully, some of the most damaging mishaps easily can be avoided. We collected five of the most prevalent issues and give you preventative tips to keep your holiday party on track.

Problem: The oven doesn’t heat

For any holiday occasion, the oven is the most important appliance in your house. If it fails to work, the centerpiece of your meal could go from roasted beef, ham, duck, or Tofurky to Peking Duck from the local Chinese takeout joint.

How to avoid:

There are any number of reasons a stove can break, but one common cause of disaster is easy to prevent. Don’t self-clean your oven until AFTER the holidays. You risk blowing a fuse or a thermostat, and tracking down an oven technician around the holidays can be tough.
Problem: The kitchen sink clogs
The day after Thanksgiving is the busiest of the year for plumbers. The prime cause of this clog-a-thon is the mistreatment of drains when cooking holiday feasts. We hope your Thanksgiving went well, and that you avoid clog-a-thons for the rest of the holidays.

How to avoid:

Fats and cooking oils can solidify in your pipes, so never dispose of them in your kitchen sink.
If you have a garbage disposal, make sure it’s running before anything goes in it, and never feed it any stringy, fibrous, or starchy foods like poultry skins or potato peels.
To fix, don’t rely on chemical drain-clearing products that can harm your pipes. Use a snake instead, available for $15 at your local hardware store. Best to keep one on hand.
Problem: The heat goes out
As the party’s host, you’re supposed to hang guests’ coats—not apologize to them for having to keep them on. A lack of heat can stop a holiday party dead in its tracks.

How to avoid:

The key to avoiding freezing your party to a standstill is regular maintenance of your HVAC. Every 90 days, a new one-inch pleated furnace filter should be installed. If you haven’t done it in a while, now’s a good time to replace it.
Also inspect insulation on refrigerant lines that are leading into your house. Replace them if they're missing or damaged.
Problem: The toilet stops up
Toilets have a way of clogging up at the worst times, such as during parties and when you have overnight guests. This is especially true if you have a low-flow toilet from the early 1990s.

How to avoid:

Don’t flush anything other than sewage and toilet paper down the toilet. And there’s nothing wrong with putting up a polite note to remind your guests to do the same.
Problem: The fridge doesn’t cool
Without a properly functioning refrigerator, your meat could get contaminated, your dairy-based treats could go sour, and you may not be able to save your yummy leftovers. To avoid discovering a warm fridge after it’s too late, take these simple precautions.

How to avoid:

Get a thermometer for your refrigerator to make sure each shelf stays below 40 degrees and you can be aware of any temperature changes.
Also make sure the condenser coils located on the back of the unit or beneath it are free to breathe. Coils blocked from circulating air by cereal boxes atop the fridge, or dirtied by dust or pet hair can prevent a fridge from keeping cool.

MinneapolisCondosTaraOBrien

Labels: home staging

Adapt your fireplace, an inefficient heating source, with an insert to improve efficiency and maintain that cozy hearth look while generating heat.

Tax break
Potentially adding to your savings: a federal tax credit for biomass (renewable fuel) stoves installed by the end of 2010. The IRS doesn't explicity state whether inserts are eligible. However, according to the Hearth Association, manufacturers certify qualified inserts for the tax credit. (Make sure to get manufacturer certification for your tax file.)

The tax credit is good for 30% of the purchase price, up to $1,500, as long as the unit has an efficiency rating of at least 75%. Efficiency is the percentage of the fuel's heat that goes into the room rather than up the chimney, according to stove and fireplace maker Jotul.

What you'll spend
Inserts generally run about $3,000 to $4,000, including installation and a chimney liner, acccording to HPBA.

But don't rely on any insert as a primary heater; you need a furnace just in case something goes wrong and to protect pipes from freezing in cold climates.

To choose the type of heater, decide what's most important to you—burning real wood and having heat even if the power goes out (wood insert), burning a bio-fuel without the hassle of wood (pellet stove), or flipping on fast heat in a specific area of the house (gas).

Wood-burning insert creates real heat with real logs
If a freestanding wood stove is too large to fit into your hearth or the style of your hearth makes it impractical, you can opt for a wood-burning insert—a wood stove without legs.This firebox slides into your existing masonry or metal fireplace and burns real logs.

Your installer snakes a stainless steel liner down your chimney and fits a decorative flange made of black cast iron or steel or colored porcelain around the insert, hiding its steel sides and filling the gap between the box and your hearth.

A front door with ceramic glass radiates heat into the room. You open the door to stack the wood, then shut it, on most models, while your fire is burning. Most wood-burning inserts also create convection heat with a fan located underneath the firebox.

Wood-burning inserts can heat anywhere from 1,000 to 3,000 sq. ft., depending on their size. Inserts are small enough to fit into most traditional masonry fireplaces.

An insert designed to heat 1,500 square feet will burn for three to five hours before you need to reload; for 1,500 to 3,000 sq. ft., you usually have an eight- to 10-hour burn window.

Green Factor: Efficiency rating of 60% to 80% on U.S. Environmental Protection Agency-certified models. Huge improvements in wood stoves and inserts in the past five years mean almost all new wood-burning units now meet the federal biomass tax credit requirement.

Downside: You have to stack and load wood. And the insert can be dangerous in a prefab fireplace. "The prefabricated chimney isn't rated to take the temperature that a wood insert can put out. You need a chimney rated for 2,100 degrees," says John Mountford, a salesperson at Fireside Warmth in Kingston, N.Y. If you have a prefab, many dealers will recommend replacing the entire fireplace with a high-efficiency wood burning fireplace rather than use an insert.

Install a pellet insert for automated wood fire
This prefabricated convection heater slides into your existing fireplace—prefab or masonry. Instead of loading logs, you pour in pellets—rabbit-food-sized bits of compressed, recycled wood waste and other renewable substances.

Like a wood burning insert, it, too, is a sealed combustion box with a partially glass front door, and is surrounded by a decorative flange. It vents through your existing masonry chimney. To operate the system, buy a bag of pellets, pour it in, press a button, and have fire. On some, you just set the thermostat and let the stove do the rest.

Unlike a wood-burning insert, pellet stoves need electricity—to start the fire, operate the blowers, run the auger feeding the pellets to the burn pot, and run the computer board monitoring the system.

Pellet stoves can heat 1,000 to 2,500 sq. ft., depending on their heat-generating capacity and the size of the fuel hopper.

Green factor: efficiency rating of 50% to 80%, according to HPBA; among the cleanest-burning home heating appliances, it uses waste products to create energy. Some stoves can burn alternative fuels such as dried cherry pits, which you can buy in 40-pound bags from hardware and home stores.

Downsides: Weekly maintenance, such as removing the ash, cleaning the glass, and dusting the electronics. If the power goes out, your pellet insert will, too, (though some have battery backup). A 40-pound bag of pellets runs about $4 to $10, and the average household burns about a bag a day for 1,500 sq. ft. Pellet inserts also lack the off-the-grid romance of heading out back and hacking down fuel yourself.

Convert to gas for easy heating
Unlike old decorative gas fireplaces, today's gas inserts are heat-producing dynamos that use propane or natural gas to power a steady flame dancing on fake logs, decorative modern glass chips, or stones behind a sealed glass face.

Gas inserts can be used in masonry or prefab fireplaces; they can be vented through the existing chimney (or a wall for a free-standing unit).

Gas is the easiest insert to use and requires very little maintenance beyond the annual check. Flip a switch; have fire. Its best application is for zone heating—turning up the gas in the room you're in and lowering the thermostat in the rest of your house.

Green Factor: 58% to 85% efficiency rating, says HPBA; very little pollution, smoke, ash, or creosote. Zoned heating allows you to reduce overall fuel consumption.

Downsides: Burns fossil fuel, making it ineligible for the federal tax credit and unattractive if you're eager to reduce your carbon footprint. Propane is an expensive heating fuel—you won't save money heating your whole house with a gas insert.

Savings for all three types
Because fuel prices change constantly, any saving measurements are a moving target. Roughly speaking, yearly savings could range from $64-$255 (based on an average heating bill of $638) if you use an insert for zoned heating and turn down your thermostat, says Wheeler of HPBA.

Permits
Whatever style you chose, you'll likely need a permit. "If you had a fire, and you didn't have the permit, your insurance isn't going to cover your loss," says Anthony Drago, a manager with Ashleigh's Hearth & Home in Poughkeepsie, N.Y. Check with your local government about local and state ordinances.

Asthma and allergies
If anyone in your household has asthma or allergies, consider whether an insert is right for you. Inserts and fireplaces can trigger breathing problems, though proper maintenance and care can help mitigage those issues.

Although no fireplace insert looks exactly like the classic open hearth, they all provide more heat and represent the true pioneering spirit of fireplace heating.

Wendy Paris is a writer in New York. She recently built a home in New York's Catskill Mountains and installed a Jotul woodstove in the living room that can heat up the entire first floor. She loves her woodstove. She's written about building her house for This Old House magazine.

Labels: buying a home, buying and selling a home

Before you plug in and light up for the holidays, run your decorations through this quick safety check.

Inspect light strings. Discard any that are damaged. Frayed or cracked electrical cords or broken sockets are leading fire hazards.

Follow the manufacturer's instructions for connecting multiple strings. The general limit is three strings. Light strings with stacked plugs can usually accommodate greater lengths than end-to-end connections.

Replace burned-out bulbs promptly. Empty sockets can cause the entire string to overheat.

Make sure outdoor lighting is UL-rated for exterior use. Exterior lights, unlike those used inside the house, need to be weather-resistant. The same goes for any extension cords used outdoors.

Don't use outdoor lights indoors. They're too hot for interior use. For the coolest bulbs and greatest energy efficiency, try LED lights, which come in a wide range of styles and colors.

Don't attach light strings with nails or staples. They can cut through the wire insulation and create a fire hazard. Only use UL-approved hangers.

Take exterior lights down within 90 days. The longer they stay up, the more likely they are to suffer damage from weather and critters chewing on them.

Store lights safely. Tangled lights can lead to damaged cords and broken sockets. After the holidays, coil each string loosely around a stiff piece of cardboard, wrap it in paper or fabric to protect the bulbs, and store in a sturdy container until next year.

Pat Curry is a former senior editor at BUILDER, the official magazine of the National Association of Home Builders, and a frequent contributor to real estate and home-building publications.

Labels: home staging, staging your home for sale