The stimulus package includes a revison to the credit given to first time home buyers. All of the changes are good!

1. The amount of the credit is 10% of the cost of the home with the maximum now $8000.

2. Applies to purchases of principal residence which close between January 1 and December 31 of 2009. All principal residences eligible: houses, townhouses, condos and co-ops.

3. Major change:  No repayment required! If house is sold within three years of purchase, the amount is recaptured upon sale.

4. Buyers who take advantage of state grants can also take tax credit.

5. All revisions effective January 1, 2009.

So if you are thinking about buying, this year is a great time to act. Call me with any questions. I'll be happy to help you find a home in New Jersey where you may also be able to get a Smart Growth Grant from the state.

Veronica "Bonnie" DeCarolis

908-313-5052

The current version of the stimulas package passed by Congress eleiminated the proposed $15,000 tax credit for home buyers. Instead, the tax credit which is now offered is $8000 and is extended to the end of 2009. 

In my opinion, this may be a better alternative to many people. The $15,000 would have been taken over a 2 year period. This means that the home buyer would have to owe taxes of $7500 each year taken. Increasing the amount to $8000 is actually more for the first year. This is a generous number and should help many first time home buyers get off the fence now.

Call me if you are looking to buy in New Jersey and we can talk about this credit and the Smart Growth State program.

Veronica DeCarolis  908-313-5052

Weidel Realtors

Many home owners are faced with the unpleasant reality that they now owe more on their home than they can sell it for. This is the essence of a short sale situation. We realtors can help them through this painful process.

Our office recently had a presentation by a company which negotiates with the bank in a short sale situation. They do not charge the consumer (seller) a fee. Instead they negotiate their fee with the lender. They help the consumer and realtor through the process.

If you would like more information about Preferred Servicing Group, call them at 866-351-1253.

Bonnie DeCarolis  908-313-5052

Weidel Realtors

I'll be watching what Congress decides to do this week about the economic stimulus package. Particularly I'll be wanting to see if the $15000 tax credit to home buyers is passed. This credit would be a great boost for the ailing real estate market. Buyers would have an additional motivation to buy and sellers would have an additional benefit to offer. Let's hope our leaders act quickly so we can begin promoting this much needed stimulus.

Bonnie DeCarolis

Weidel Realtors  908-313-5052

I know. Who wants to talk about septics and sewers? But this is definitely an issue for home buyers and one they need help understanding.

I have been working with a first time home buyer who have been fairly insistent that they want a home with public sewer. They just don't trust septic systems which can be costly to repair or replace. I was able to get them to look at some homes which are not on public sewer systems. On Saturday we looked at two houses in Hillsborough, NJ which have septic. The selling agents both told me that the township will be installing sewers within the next year.

That sounded like my problem was solved until I checked into what the public sewer is going to cost the home owners. First of all there will be a tax assessment which is yet to be determined because the township does not know yet what the system will cost. The estimates I have gotten are for $25,000 to be spread over a period of time. Let's say the township allows the home owners to pay this off in 25 years- that adds $1000 a year to their taxes.

Not to bad you say. But then there is the immediate cost of hooking up to the system. There are two fees charged for this which total $4000. These fees do not include the actual hook-up to the house which the home owner must contract with a plumbing firm to do. Depending on many factors, that cost could be another $4000.

In the long run, the sewer will save the home owners the hassle of failed septic systems. In the meantime my buyers are still looking for that perfect house.

There seem to be more vacant houses for sale now. When showing these houses, I try to do my research ahead of time to answer my buyers' natural question, "Why is this vacant?"  Sometimes the answer is obvious. The house was purchased low so the seller is flipping it. Then there are the less obvious answers: the owner was transferred, moved up or down before selling or foreclosure. Why the property is vacant can influence the strategy the buyers will use if they decide to make an offer on the property.

If the house is already bank owned, I advise my buyers to be prepared to have a wait before closing. Making an offer to a bank is different from making an offer directly to a consumer. Depending on how the bank is structured, there may be some considerable time before the buyers know if their offer has been accepted. The buyers still have th right to inspection but the bank will most likely to decline making any repairs. The inspection is more for informational purposes.

There are some very good values out there in vacant properties. As a buyer you should work with a real estate agent who will be with you every step of the way. Call me if you are interested in buying a home in New Jersey.  908-313-5052.

Bonnie

Yes, NOW is a great time to invest in real estate. Prices are lower than they have been. Interest rates are historically low. Money is still available to qualified buyers. You will need an experienced real estate agent to guide you through the process.

You can invest in commercial real estate. But investing in real estate by purchasing your first home is highly recommended. New Jersey has many programs for home buyers. There are significant tax advantages to owning over renting. Yes, you have more responsibility but there are tangible benefits tied to those responsibilities.

If you have been thinking about buying, please contact me for more information. I can help you find a property in New Jersey. I have worked in Hunterdon, Somerset, Morris and Warren counties. Let me help you find the property which suits your needs.

Bonnie DeCarolis

908-313-5052 cell

New Jersey has designated certain areas throughout the state as Smart Growth areas. Generally these areas are along major highway corridors. For example, in Hunterdon county the Smart Growth areas follow Route 22 which goes through Readington and Clinton townships. Not all of either of these townships qualifies as Smart Growth.

The Smart Growth areas are designed to encourage home ownership where there is already dense population. Don't look for complete logic here though. For example, most but not all of Hillsborough township in Somerset county is considered Smart Growth while it appears that all of Bridgewater township is included. Meanwhile in Hunterton County, the corridor along Route 202 is NOT included which means there is no Smart Growth in Raritan township.

What does this mean to a home buyer/seller? If the property of interest is in the Smart Growth area, you may be eligible for a State Grant of 4% of the sale price of the property. This grant can be used for down-payment or closing costs. Savvy realtors can market these properties using the Smart Growth to draw first time home buyers to the property.

Hope that clarifies any questions you may have. Contact me for more information. 908-313-5052.

Bonnie DeCarolis

New Jersey is still offering first time home buyers help through the Smart Start program. The program offers a grant for 4% of the sale price which can be used towards down-payment or closing costs. The grant is not repaid until the buyer sells the property. If the buyer stays in the home for seven years, the grant is forgiven. The progarm is restricted in that you must buy in a Smart Growth area.

There is also a program to help people buy a home where they work.  The buyer can get a grant for 5% of the mortgage amount. There are many municipalities which participate in this program including Morristown, Trenton and Woodbridge. Again, the grant is forgiven if the buyer stays in the home for seven years.

Please contact me for mor information on these programs. I can help you find a home in New Jersey, especially in Hunterdon, Warren, Morris and Somerset counties.

Have a great day.

Bonnie DeCarolis

908-313-5052

Whatever you political convictions, make sure you vote today. Remember, you lose your right to complain if you don't exercise your right to vote. Our forefathers fought hard to get and maintain our right to govern ourselves. Be patriotic- VOTE.

Have a great day.

Bonnie