Square footage of a home is sometimes a matter of debate — a homeowner measures it one way, a real estate agent another way, and an appraiser a third way. The local tax assessor has his own method, too.

Who is right?

Until 2003, they all were. That’s when the NATIONAL ASSOCIATION OF REALTORS® Appraisal Committee defined the term “square footage” to include the following:

Finished square footage on each level of the home, measured from the exterior-facing surface of outside-facing walls.

The committee defined “finished” as an enclosed area that is suitable for year-round use and includes walls, floors and ceilings.

Seems basic enough, but there were some added notes and exceptions:

1. An opening to a floor below (e.g. vaulted ceiling, open-air living room) is not included.
2. Stairs are counted as square footage and are added to the floor from which they descend
3. Finished areas must have a ceiling height of 7 feet to be included (except under duct work or beams in which case the requirement is reduced to 6 feet, 4 inched)
4. If a room is sloped, at least half of the room must have the minimum 7-foot height in order to be included
5. “Detached” finished areas are only included if they are connected to the main structure by another finished area. Detached garages, therefore, are excluded.

Even with the standard defined, the Appraisal Committee’s approach to square footage is still just a guideline; no states have formally adopted it as a standard for appraisers, tax assessors and other real estate industry players.

Until then, the debate will continue. Despite the “official” guidance.

Many home sellers prepare their home for listing with cosmetic changes such as paint and reflooring, but “green” thinking can give an additional boost to value and grab a federal subsidy.

Homeowners who purchase and install specific products, such as energy-efficient windows, insulation, doors, roofs, and heating and cooling equipment in their home can receive a tax credit of up to $500 from the IRS.

In addition, 30% of the purchase cost for qualified solar cells and for solar water heating (used exclusively for purposes other than heating swimming pools and hot tubs) can be refunded, too — up to $2,000 per household .

There are more energy-saving credits available, too.

The U.S. Department of Energy lists all of the credits available to homeowners and those credits come right off of your tax bill come April 15.

A home on the market that features energy-saving upgrades carries a unique appeal to buyers and proves that not all home improvements are not equal — especially in the eyes of the IRS.

If you’re currently paying Private Mortgage Insurance (PMI) and have been for several years, it may be time to petition your lender to have the PMI payment removed.

PMI protects lenders from homeowners that stop making payments on homes with small amounts of equity. It’s an insurance policy that is “cashed in” if the homeowners defaults.

However, federal law allows homeowners to petition the end of PMI if their loan-to-value (LTV) drops below 78%.

An example of 78% LTV is a home that is worth $100,000 on which $78,000 is owed to mortgage lenders.

If you are paying PMI and think you are eligible to have it removed, contact your mortgage lender and ask them about their procedure to remove PMI.

The lender may require that you have your home appraised (at your expense) and that may cost anywhere from $200 to $400 — but if your petition is successful, the cost of an appraisal is still less expensive than the ongoing monthly cost of PMI.

If you’re in the process of buying a home and are working without a rate lock, take notice: over the past two weeks, mortgage rates have spiked to their highest levels since November 2006.

Your actual mortgage payment will be higher than you originally anticipated.

Depending on your preferred mortgage product, rates have increased by as much as one-half of one percent.

Mortgage experts expect the surge to continue over the next 30 days, at a minimum.

If your mortgage pre-approval is dated prior to May 9, call your lender and ask him to re-run it using today’s rates and market conditions. If you don’t have a pre-approval yet, today would be a good day to get one.

Your home is listed for sale and you’ve “neutralized” the place. But, after the fresh coats of paint and new carpeting, what will distinguish your house from the others listed for sale?

To prospective buyers, there is usually one specific thing that catches their eye in every home they tour. It's simply human nature.

Without that “one thing”, your home may be disadvantaged.

Simple steps can catch attention in a positive way.

• A large vase full of flowers is welcoming
• Baking cookies or bread creates a homey environment
• Classical music playing softly conveys a dignified image

Whatever it might be, having that one thing is good. Nothing too personal, nothing too showy! Think Martha Stewart and you’re probably on the right track.

If you don’t give people that one thing to remember your home by, they may find something on their own (and it may be less than flattering).

Brick exteriors are low maintenance and have a distinct look. They do require some upkeep over the years, however.

Every few decades (depending on environmental and building conditions), the brick’s mortar should be repaired of cracks and loose joints.

This process is called “tuck pointing” and it’s an expensive job to be handled by professionals.

Some homes’ bricks are paint-covered. Not so long ago, a brick facade was considered to be old-fashioned so homeowners covered their bricks with white, red, or other colored paint.

With brick back in vogue, removing paint is a big business that requires a delicate touch.

To remove paint from brick, professionals will use walnut shells or another similarly soft blasting agent; sandblasting is too powerful and will make the brick more prone to erosion.

Corncob is another popular blasting agent for paint removal.

If you live in a neighborhood with a lot of brick homes, ask a neighbor for a recommendation or look in the Yellow Pages for a qualified mason. You can also reach out to me anytime — I’d be happy to make a referral to a mason I trust.

The Federal National Mortgage Association (FNMA) — more commonly known as “Fannie Mae” — offers non-biased home buying advice on their Web site.

If you prefer your home buying advice with a side of blandness, Fannie Mae’s Becoming a Homeowner section is sure to satisfy.

Originally founded in 1938, Fannie Mae’s role in the home buying process is to help make mortgage money available to those who need it. The government-sponsored agency is not a direct lender to consumers, though, which is why its advice can be considered impartial, or non-salesy.

Wikipedia has a more complete explanation of Fannie Mae, if you are interested.

The Fannie Mae Web site includes articles, calculators and worksheets that can help you learn about homes and set a realistic home owner’s budget for yourself. The site also explains different types of properties and what to look for when shopping for homes.

One caveat: although the advice offered is still sound, the FNMA Web site as not been updated in two years. Mortgage markets evolve fairly quickly so the information provided may be incomplete, at best. It’s still a good place to get started, however.

When buyers and sellers look for common negotiating grounds, it’s common for the buyer to request home improvements to be made prior to the sale.

The request may be phrased in any number of ways:

• “The hardwood floors are warped and we think the seller should pay for it.”
• “There is a leak in the plumbing that needs to be fixed to prior to moving in.”
• “The roofing reached the end of its life. It needs to be replaced.”

The seller may agree to meet the buyer’s demands, but making repairs to a home fixture, such as a roof, isn’t convenient while a person still occupies a home.

And this is how the “repair credit” gets introduced into the contract. A repair credit is a dollar amount granted from the seller to the buyer to be used to cover the costs of the requested repair(s).

For a seller, repair credits offer a way to “pay for” the handyman work without actually going out of pocket; all of the funds for the buyer are taken directly from the home sale’s proceeds instead of from a bank account.

Unfortunately, when granting the repair credit, many sellers go about it in the complete wrong way, putting their buyer’s ability to acquire home financing for the purchase at risk.

That’s because — as a rule — lenders do not allow concessions for home repairs to be line-item credited on the final settlement statement.

This is for two reasons:

1. The lender has no way of knowing that the repair will actually be made by the buyer
2. The lender has no way of knowing whether or not the repair is actually needed

Put the two together and it raises the red flag we call “Fraud Alert”.

The correct way to offer a repair credit is to reduce the home’s sale price by the amount of the credit and make that the new purchase price. In the end, the seller goes home with the same amount of money.

When you’re buying a home, you’re buying a neighborhood, too.

Evaluate a neighborhood by spending some quality time there. Walk around for a while seeing what is going on.

If you see dumpsters in front yards or parked on the street, it’s a sign that people are upgrading and investing in their houses and the neighborhood.

Fresh paint jobs, manicured lawns and friendly people that you greet are also positive signals.

Do your own personal research, if possible. Neighborhoods are not always “as advertised”. During the last major real estate boom, the character of many areas changed dramatically.

Spending some time in the nearest coffee shop or at the grocery store will also reveal something about who your new neighbors are likely to be. It’s best to find out for yourself and make up your own mind.

Each month, the Commerce Department releases a statistic titled “Housing Starts” that measures residential construction activity.

This morning, the Commerce Department released April’s Housing Starts data (PDF) and the headline data reflected a 2.5% increase in new construction.

Markets had anticipated a 0.8% decrease. This coincided with a decrease in available homes, as shown on the graph at right.

Housing Starts details the number on residential units on which construction started in the reported month.

Housing Starts can provide terrific guidance on the future direction of our economy for several reasons:

1. Home construction creates jobs in the construction industry
2. Home builders spend dollars on raw materials, fixtures and appliances when building a home
3. Home buyers spend money on furniture, electronics and services (i.e. movers) after buying a home

So, as more homes are built, more jobs are created, and more money is pumped back into the economy.

A hot Housing Starts number can predict strong economic growth 6-9 months out on the horizon and that is one reason why economists watch it intently.

Another reason Housing Starts matters is because the Federal Reserve is inflation-wary.

It has stated many times that growth is strong but that housing is dragging down overall growth to a more comfortable level. The housing sector, it believes, will create a gradual economic slowdown.

Today’s data may prove otherwise.

In response, expect mortgage rates to rise today on inflation concerns.

As we head into Memorial Day weekend, there are a lot of homes from which buyers can choose. And in their home searches, many are choosing to see them all!

The more homes viewed, however, the harder it is to remember the small details that can help the right home stand apart from the pack.

One neat little trick for “remembering” a home’s unique qualities is to carry a small digital camera and take photos of features that interest you.

This can be especially important when viewing upwards of five homes in a single day. It’s normal that you’ll remember “the house with brick exterior”, or “the one with two first floor half-baths”, but it’s unlikely that you’ll remember chandeliers, crown moulding, and appliances.

It doubtful that a real estate agent will prohibit you from taking pictures, but because of the potential for security concerns, it’s courteous to ask beforehand. If the home you are viewing has a lockbox and no agent is present, use your good judgment.

During and after a rainstorm, it is a good idea to watch how the water flows surrounding your home. If water lingers within 5-10 feet of your house, it may end up seeping into your basement during “a wet year”.

One way to help water shed away from your home is to plant gardens with a generous slope away from the home’s foundation. Because of gravity, water will have a downward path to follow that takes it away from danger zones.

To build a garden designed to protect your basement, take denser soil that is rich with clay and first sculpt a good drainage profile.

Then, lay down a layer of crushed rock, 3-4 inches thick, followed by a layer of good soil that is up to a foot thick. If your garden is interrupted by a downspout, gutter, or other source of redirected water, use rocks or cement to create soften the impact on the soil and prevent erosion.

You can also purchase a gutter extension to guide water away from your home’s foundation.

Once the soil is ready, plant your flowers and voila. You’ve increased your home’s curb appeal while protecting its basement from long-term damage.

It’s the difference between pedaling a bicycle in high gear versus low gear. Both methods will move the bike, but low gear requires considerably less energy.

Now, let’s apply the same thinking to light bulbs.

Generating light from a traditional light bulb is similar to pedaling in high gear — it requires a tremendous amount of energy just to create some light.

In fact, 95% of the energy spent to run an “old” light bulb is lost to heat — it’s not even used in making light.

By contrast, compact florescent lightbulbs (CFL) are equivalent to pedaling in low gear.

In generating the exact same amount of light, a “green” light bulb loses just 20% of its energy to heat. That’s a major difference and it lowers the monthly energy bill for your home.

Of course, those savings come at a cost. At least at first.

CFLs are more expensive than a traditional bulb, sometimes by $2-3 per bulb. But, once you get past the sticker shock, it’s important to remember that CFLs can last up to 10 years and that means 10 years of pedaling in low gear.

Over time, the energy saved is immeasurable and a homeowner (or renter) will more than recoup their original investment in the energy-efficient bulbs.

To some people, reading real estate listing sheets is like reading hieroglyphics. So many symbols and unfamiliar terms.

So, courtesy of LendingTree, here is a quick primer on commonly used abbreviations.

• aek: all electric kitchen
• appls: appliances
• ba: bathroom
• br: bedroom
• CA: central air
• cath ceil: cathedral ceiling
• c-d-s: cul de sac
• d/d: dishwasher and garbage disposal unit
• det: detached
• dr/fdr: dining room, formal dining room
• eik: eat-in kitchen
• f/fin bsmt: fully-finished basement
• fin w/o: finished walk-out
• hdwd or h/w: hardwood floors
• neg: price is negotiable
• pl, sp or s/p: swimming pool
• rf: roof
• sf: square feet
• spac: spacious
• w/d or wd: washer/dryer
• wbfp: wood-burning fireplace
• wic: walk-in closet

Believe it or not, this list is far from exhaustive! For every feature and characteristic of your home, there’s an abbreviation that goes along with it.

ttyl.

If you have a home that’s languished on the market for months, the short-term business professional rental market may be an option to consider.

Short-term rentals for business professionals is a market that is rarely tapped. It targets professionals that are in town for a month or so for business reasons and who then move on.

To find short-term renters, get in touch with local consulting companies whose employees are known to travel.

To an employer, a month’s worth of rental home can be much less expensive than a month’s worth of a comparable hotel. Online listings such as Craig’s List can be another good sources for leads.

Even though your home may be for sale longer than you had hoped, renting it out on a short-term basis can make the waiting a more profitable experience.