The race to the finish is nearing an end.  Buyers interested in the homebuyer tax credit are now under contract and have closed or will close by the end of June.  As the insanity winds down a bit, it gave me a moment to pause and consider what type of sales I closed since the last week of March.

Closed 23 transactions in just over 2 months of April and May. 

What types of sales were they? 

• Regular listings with sellers who could afford to go to closing?  10
• New Construction: 3
• Land: 2, one of which was a foreclosure lot in distressed subdivision
• Foreclosures: 4
• Short sales: 4

40% of closed transactions were distressed properties.

What type of buyers:

• First time homebuyers: 10
• Move up buyers: 3 (involved in 6 total transactions)

Almost 70% of transactions involved a buyer/seller receiving a tax credit.

 There are 3 more short sales under contract with first time homebuyers wanting to close by the deadline.  It is doubtful at this point that they will close in time.  Very sad as a couple of these have been waiting since the first of the year.

Now we can only hope that the jump start will continue. 

 HOMES IN NORTHWEST FLORIDA ARE SELLING!

If you are looking to buy or sell a home in Northwest Florida, please don't hesitate to call me.

No matter how you look at it, buying a home is a major investment. For many home buyers, it can be an even more expensive process. They fall prey to some of the many common and costly mistakes, which trap them into either paying too much, losing out to another buyer on their competitively priced dream home, or, worse, buying the wrong home for their needs.

A report titled "9 Buyer Traps and How to Avoid Them" discusses the 9 most common and costly of these home buyer traps, how to identify them, and what you can do to avoid them. Among the major traps:

1. Bidding Blindly. By not researching recent comparable home sales to make sure you don't either over bid or under bid.

2. Undisclosed Fix-ups. You should hire an independent inspector to objectively view the home inside and out and make the contract contingent upon the inspector's report.

3. Hidden Costs. Obtain a projection of total charges (Good Faith Estimate) from both your lender, and your Realtor prior to signing an Offer to Purchase, so you avoid hidden surprises at the time of closing.

A systematized approach to the home buying process can help you steer clear of these common traps, allowing you to not only cut costs, but also secure the home that's best for you.

For a copy of the full report, or answers to your real estate questions, contact kbatterton@remax.net.

When shopping for your home, you'll discover that most homes on the market are resales. Yet, one out of four home buyers purchase a new home. Both new homes and resales offer advantages. Before you make a decision, let's COMPARE THESE POINTS!

New Homes:

1. Offer innovative use of space and style.

2. Greater energy efficiency.

3. A choice of options and upgrades.

4. Everything is new and modern.

Existing Homes:

1. On the average, are less expensive.

2. Frequently offer more square footage, for the same price.

3. Often are in an established neighborhood with mature landscaping, and a greater array of character than the "cookie-cutter" style often found in new subdivisions.

4. The neighborhood usually has little, to no ongoing construction or traffic issues.

5. Home has already "settled", reducing possible problems that arise from this happening after the purchase of a new home.

As you can see there are advantages to both. If you are thinking about buying a new home, you may be interested in a report titled "The Home buyers Guide to New Homes: Ten Tips to Save You Time and Money".

For a copy of the full report, or answers to your real estate questions, contact kbatterton@remax.net

The best part of the Government's $8,000 Housing Tax Credit is that it is a TAX CREDIT, not a deduction. Unlike deductions, such as mortgage interest. a first-time home buyer that qualifies (has not owned a personal home in the past 3 years) will receive $8,000 (or up to 10% of property's value, if less than $80,000), even if they don't owe that much in taxes! You will not need to pay this back as long as you live in the home for 3 years.

There are income limits for qualifications and partial credits for high income households. The government has extended the tax credit into 2010. All buyers must have binding sale contracts in place on or before April 30. Sales must close on or before June 30. Other rules and stipulations apply.

This is a fantastic opportunity for well qualified buyers to enter the home ownership market, but time is quickly passing. To see if you meet all the qualifications of the program, contact me at PensacolaRealEstateExperts@gmail.com.

A foreclosure home can make for a great investment. Here are a few items to consider when shopping within this special market:

1. The process is usually faster and less challenging than the short-sale process, and, in many cases, foreclosures offer a better deal than do short-sales.

2. Foreclosures are generally priced very well, many times below market value. Locally, foreclosures in good condition are selling close to asking price and, when multiple offers occur, ABOVE asking price! A home in good condition will often bring multiple offers, so be prepared to pay at least the bank's asking price.

3. Generally, foreclosures must be purchased in "AS-IS" condition. However, the buyer has the right to inspect, and, if repairs are needed, may walk away without penalty.

4. Most banks WILL NOT make repairs, even for minor issues. Depending on the buyer's loan program, this can kill a deal, especially with government backed programs such as FHA, VA and Rural Development. However, there are loan programs available that allow repairs to be completed immediately after closing.

If a buyer is realistic with his or her offer terms and works with an agent who understands the foreclosure process, a foreclosure may offer a buyer the opportunity to purchase a great home for less than current market prices.

Simply placing your home on the market at a competitive price is not enough to attract an offer. The home has to have appeal. The look and "feel" of your home will generate a greater emotional response than any other factor. Prospective buyers react to what they see, hear, feel and smell, even though you may have priced your home to sell.

Home staging is part science, part art and part psychology. Home buyers tend to judge a home within the first 8 seconds of a showing, so making a quality first impression can mean the difference between getting multiple bids, and just getting a lot of floor traffic. The good news: National Association of Realtors statistics show, that staged homes sell for as much as 17% more money, and as much as 40% faster, than non-staged ones.

Quick and easy staging ideas:

1. Allow more natural light into the home.

2. Remove clutter from every room, particularly lifestyle specific items and family photos.

3. Clean and fix everything. Scrub, scour, tidy up, straighten, declare war on dirt, repair squeaks, and replace anything that does not work. These can all be deal killers.

After you perform these simple steps, sit back and watch for some outstanding results.

Currently, there are some very good real estate buys on the market. For clients like you, this is the perfect time to move! There are several reasons for this:

While as a Seller your house may sell for less than you had hoped, on the flip side of the transaction, you'll reap the rewards as a Buyer. For example, let's assume your current house has decreased in value from a high of $150,000 to a current market value of $120,000 for a 20% decrease, or a $30,000 loss. If you purchase a home for $200,000 and apply the same 20% decrease in value, that same home was likely worth $240,000 during the peak of the market. In this scenario, though you would lose $30,000 on the sale of your current home, you will gain $40,000 on the purchase of your new home, for a positive net profit of $10,000 in the overall transaction. The current Buyer's market affords a "move up" Buyer the opportunity to purchase a larger house at a price that will likely offset any losses on the sale of that Buyer's current home.

Add to this scenario the fact that interest rates are still near historical lows and, since many of the expenses are based on a percentage of the sales price, closing costs will be less and there's no doubt, NOW IS A GREAT TIME TO BUY!

Just the thought of remodeling makes homeowneres start dreaming of a hefty return on their time and effort. However, these projects often result in merely bringing the property up to current market standards, as opposed to making the home stand out from the competition. Therefore, it's crucial to take on such a project with realistic expectations. While meeting market standards will definitely help you as far as getting your house sold, the overall increase in value may be less than you hoped for when you started thinking of remodeling.

So what remodeling projects bring the greatest return? Heating and cooling a space already under roof, such as a garage or covered porch, gives you additional square footage at a fraction of the cost of new construction. Additionally, projects such as Kitchen, Bedroom and Bath remodels and/or additions, as well as outdoor living spaces, such as a deck, tend to recoup a higher percentage of the cost of the remodel. However, in most cases you will not recoup the entire cost, so always remember that part of your return isn't monetary, rather, it comes in the form of the additional enjoyment you receive from living in the new space prior to selling your home.

Although the lending environment has tightened up, there are still several options available for "no money down" loans.

VA Financing. If you qualify for VA financing, you will be able to receive 100% financing.

Rural Housing.If you want to buy a home in Santa Rosa County or certain parts of north Escambia County, you may qualify for a USDA Rural Housing loan with 100% financing.

FHA Financing. Anywhere you choose, an FHA loan has a 3% down payment requirement. If you do not qualify for one of these loans, or you want to buy a home outside the Rural Housing parameters, you may be eligible for additional assistance, such as bond money to help with the down payment or closing costs.

Remember that 100% financing does not take into consideration the closing costs involved with purchasing the property and obtaining the loan. If you do not have the money available for closing costs, you can ask the seller to make a contribution toward your closing costs. Ask your Realtor how to handle this when you are ready to make an offer on a property.

If a home fails to sell, it is usually due to a problem in one or more of these four major areas:

1. Teamwork. The relationship between you and your Realtor should be a full partnership, where vital feedback from both buyers and other Realtors is shared. Open and honest communication should be encouraged, so you have the information necessary to make educated decisions.

2. Pricing. Pricing your home correctly is the most important factor in successfully selling your home. The "right" price depends on market factors, competition and the condition of your home. If your home is either overpriced or does not compare favorably with others within your price range, you won't be taken seriously by prospects or agents.

3. Condition of Your Home. Is your home someone else's idea of a dream home? When buyers enter are they inspired? Do they think, "I love this house!"? Remember, the decision to buy a home is based on emotion, not logic. A well-staged home sells for the best price, because it outshines the competition. Remember, the next prospect who visits your home may be your buyer - be ready for them!

4. Marketing. When interviewing agents, make sure they have an innovative marketing plan firmly in place that includes the primary mediums upon which today's buyers shop for houses. Traditional methods do not sell a house in today's market.