The home posted here on June 2nd, closed on June 30th with multiple offers.  What did my clients do to get their house to sell so quickly in a down market?  It started when they bought the house.

Three years ago they identified what was important to them:

A house within walking distance to town. 
 A small one level home with a floor plan that lived bigger. 
A manageable yard.
A house with good bones.

We were able to find one.  Not easy when everyone was building bigger and bigger.

They moved in and during the three years they lived in the house, they upgraded in all the right places: kitchen, baths, landscaping and  carpet replaced with bamboo wood floors.

That's the secret.

The open house was proof positive to me that the home described above is what buyers of all ages are looking for.  Boomers are looking for it for different reasons than young families, or single professionals, but they were all looking for this type of house and jumping on it when they found it!

Note:  The sellers did all the basics, too; declutter, clean, etc.  While I always recommend a buyer stay in a home at least 5 years.  These folks, because of their smart choices and hard work, were able to move in three years with a tidy profit.

Affordable bliss; this traditional exterior styled property is full of contemporary flair inside.  Finishes normally found only in much more expensive homes include custom concrete countertops, bamboo floors, slate tile floors in the baths and kitchen, undermount sink and trey ceiling in the master bedroom.

Located in popular Chatham Forest subdivision, this home is perfect for first time homebuyers , young professionals or empty nesters.

The commute is short to Cary, Chapel Hill or UNC.

Call today to take a tour !
MLS: 1666426

 google map for 14 Cynthia Lane :: community_amenities :: home_owners_association :: protective_covenants :

TOTAL: 1360 SQ. FT.     Offered at only: $219,000

•  3bedrooms

• 2 bath

• bamboo floors

• slate tile floors

• fireplace with gas logs

• concrete kitchen countertops

• charming back deck
• rocking chair front porch
• trey ceiling in master bedroom
• tasteful landscaping
• extremely well-maintained home
• open floorplan with loads of natural light

How do I apply for the tax credit?

All eligible homebuyers simply claim the credit on their IRS form 1040 tax return.  Attach the new form 5405. There is no pre-purchase authorization, application or similar approval  process.  Print out the form:   First Time Home Buyer Credit Form

Luke Mullins from US News and World Report drilled down to the essential six points you need to know about the $8,000 first time homebuyer credit:  

1. Eight grand, new buyers: This credit is equivalent to 10 percent of the purchase price of the home* although it's capped at $8,000--and applies only to first-time home buyers and principal residences. But unlike an earlier $7,500 home buyer tax credit, this one does not have to be repaid.

2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.

3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.

4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.

5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.**

6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

*A home with a purchase price of $80,000 or more qualifies for the entire $8,000 credit. If the house costs less than $80,000, the credit will be 10% of the cost (i.e. A $50,000 home would be $5,000).

**An example of a refundable credit:  You owe only $4500 in tax. The IRS would send you a refund for the remainder of the credit, $3500.

See my last post about the newest spin on using the credit as part of your downpayment.

The 2009 HUD Mortgage Letter which was to follow the FHA ruling allowing the credit to be used as down payment was rescinded almost as quickly as it was posted to the HUD website. 

The credit itself was not going to be used, however HUD approved lenders would be able to loan against the credit by creating a second lien on the property.  When the homeowner received the credit, they pay back the loan.

Well, that has changed...again.  The May 29th 2009 Mortgage Letter (found here) is now allowing the credit to be used toward the down payment in the from of a second lien.

      Of course, more traditional ways to borrow for a down payment using the first time homebuyer credit as collateral include:

• A loan from your employer.
• A loan from a relative or friend
• Your 401K (quit laughing)
• And if an incredible deal comes your way, even an unsecured credit card

    Of course, these ideas are only useful, if you do indeed pay off the loan with the credit.

  North Carolina's foreclosure rate is low.  Why?  In large part, because there are fewer subprime loans made here.  Almost a third of homes in the state are owned free and clear.  In addition, over 50%, 53% to be exact, of homes loans are prime loans. Only 6% of loans are FHA or VA.  A remarkable figure when you consider how many military families live and retire in NC, however, until recently traditional lenders were matching VA terms. Only 9% of loans in our state are subprime. 

   The subprime exposure is small, but they make up over 50% of foreclosures.  Many of these loans are investor properties. Not surprisingly, fewer subprime loans are being made and foreclosures have slowed. Bottomline: Foreclosure rates are not affecting prices in most areas of our market.

There is a rumor that Suntrust Bank has discontinued 100% financing doctor loans.  Jennifer Foster of Suntrust asks, "We are NOT pulling this program. It is one our strongest loan portfolios and we intend on keeping it for a long time."

     Last week's HUD Mortgage Letter which was to follow the FHA ruling allowing the credit to be used as down payment was rescinded almost as quickly as it was posted to the HUD website.

      The credit itself was not going to be used, however HUD approved lenders would be able to loan against the credit by creating a second lien on the property.  When the homeowner received the credit, they pay back the loan.

    There are still more traditional ways to borrow for a down payment using the first time homebuyer credit as collateral. 

• A loan from your employer.
• A loan from a relative or friend
• Your 401K (quit laughing)
• And if an incredible deal comes your way, even an unsecured credit card

    Of course, these ideas are only useful, if you do indeed pay off the loan with the credit.

For a copy of the First Time Home Buyer Credit click here.

       Wonderful food.  The Best Dish NC contest recently named their top picks in the casual dining and fine dining categories.  The winners span from the mountains to the sea.  If you are traveling to any area of the state, check out these proven locally owned restaurants.  Find them here:

http://www.ncagr.gov/markets/gginc/bestdish/

When you enjoy a meal in one these establishments, more money stays in our economy and you get the freshest food available.  And if you live near one of these restaurants, please visit them, try their Best Dish menu, because you'll know it's local and it's what represents their restaurant to determine the top eaterie in the state.  The judges knew when it comes to determining who serves the best food, it's Got to be NC!

    Five pounds have melted away and my family has enjoyed a boatload of fresh vegetables and flowers as part of the deal.  How?  I volunteer one morning a week at a local organic farm.

    That's not the only benefit.  My garden looks better than ever.  I have learned so much; how to use tools properly, how to amend the soil properly, when to plant, techniques for harvesting each variety of flower or vegetable and much more.  One of the great take aways has been learning how to set up the drip tape system I bought three years ago.

    And...that's not all.  The interns working on the farm are bright, interesting young women that have introduced a whole new world to me. Did you know there is an organization that connects people worldwide who want to learn more about sustainable food production by working?   WWOOF is an exchange - In return for volunteer help, WWOOF hosts offer food, accommodation and opportunities to learn about organic lifestyles. One of the young women has worked in two locations in Ireland and one in France. 

    Opportunities like these, demonstrate to clients looking for farms that a living can be made from smaller acreages.  It is done here and it is done worldwide.