The Home Buyer Tax Credit has just been Signed into law and is effective immediately! The expanded Home Buyers Tax Credit is valid for First Time Buyers AND for 'Move Up' exisiting Home Owners who are purchasing another property! Here are the details:
Tax Credit for Homebuyers
First-Time Homebuyers (FTHBs): First-time homebuyers (that is, people who have not owned a home within the last three years) may be eligible for the tax credit. The credit for FTHBs is 10% of the purchase price of the home, with a maximum available credit of $8,000.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
Current Owners: The tax credit for home buyers program now gives those who already own a residence some additional reasons to move to a new home. This incentive comes in the form of a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a primary residence for a period of five consecutive years during the last eight years.
Single taxpayers and married couples filing a joint return may qualify for the full tax credit amount.
What are the New Deadlines?
In order to qualify for the credit, all contracts need to be in effect no later than April 30, 2010 and close no later than June 30, 2010.
Tax Credit Versus Tax Deduction
It’s important to remember that the tax credit is just that… a tax credit. The benefit of a tax credit is that it’s a dollar-for-dollar tax reduction, rather than a reduction in a tax liability that would only save you $1,000 to $1,500 when all was said and done. So, if a first-time homebuyer were to owe $8,000 in income taxes and would qualify for a tax credit of $8,000, she would owe nothing.
Better still, the tax credit is refundable, which means the homebuyer can receive a check for the credit if he or she has little income tax liability. For example, if a first-time homebuyer is eligible for a tax credit of $8,000 but is liable for $4,000 in income tax, she can still receive a check for the remaining $4,000!
Higher Income Caps
The amount of income someone can earn and qualify for the full amount of the credit has been increased.
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, single filers who earn $145,000 and above are ineligible
Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn more than this cap can receive a partial credit. However, joint filers who earn $245,000 and above are ineligible.
Maximum Purchase Price
Qualifying buyers may purchase a property with a maximum sale price of $800,000.
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Remember, the new tax credit program includes a number of details and qualifications. For more information or answers to specific questions, please call me at 206.218.8448 or email Joseph R Hill at josephrhill@kw.com today. In addition, you may be able to benefit from additional housing related provisions, including the following:
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Tax Incentives to Spur Energy Savings and Green Jobs
This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.
Landmark Energy Savings
This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.
Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing
This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.
Expanding Housing Assistance
This provision increases support for several critical housing programs. It includes $2 Billion for the Neighborhood Stabilization Program to help communities purchase and rehabilitate foreclosed, vacant properties.
Thats it! come see Joseph Hill this Sunday at his Open House on Capitol Hill or call with any questions!
This Two Bedroom Capitol Hill Condo is OPEN Today from 1-4pm, October 25 2009. What a RARE Chance to own a completely remodled Condo WITH Parking in the heart of the Uber Cool Pike Pine Corridor on Capitol Hill!
Your New Dining area looks out over the dynamic Seattle Skyline! A private rooftop deck across the street is well maintained and provides an additional 'soft green' scene to your vista from this great 2 bedroom Capitol Hill Condo!
Every Surface has been thoughtfully updated in this home - New Wood Laminate Floors throughout living areas, New Maple Cabinets, New Slab Granite Counters, New Stainless Appliances, Even a NEW Entertaining Bar with Wine Cooler area! Capitol Hill Condos with two bedrooms and parking rarely come so well equipped!
The Capitol Hill Neighborhood Boasts DOZENS of eateries, shops, and nightlife options - A quick visit to Walkscore.com will show you the value in living in a Walkscore 97 Neighborhood!
So, If your looking for a FANTASTIC VALUE in a GREAT LOCATION on CAPITOL HILL - This IS it. No question that prices will start rising again as new construction inventory continues to get soaked up, grab your opportunity now. This Two Bedroom Capitol Hill Condo has Parking & Storage as well, and Everything has been updated!! Move in and enjoy your new life!
I will be there from 1 to 4pm today, Sunday October 25th, 2009 for the Open House - if you have any questions about Capitol Hill Real Estate, or are looking for a great opportunity, please come by and check out this Totally Remodled Two Bedroom Condo on Capitol Hill!
Call me if you need more info or a private tour of this home - 206.218.8448
Thanks and hope to see you soon!
Joseph R Hill - your Capitol Hill Seattle Real Estate Specialist!
Of course every home is special to the Seller - that is why they bought it in the first place. But sometime (when the Seller wants to sell) they will have to objectify the property and compare it with what other options Buyers will be looking at when the Seller places thier home on the market - The Seller will have to compete - or the property simply will not sell.
I like the way a collegue in Texas puts it to his Sellers - it would work anywhere though!
Over the course of my career, I have been the bearer of tough news for my listing clients many times. I don't ever relish the thought of sharing bad news with anyone, but I must admit that my skills in this area have improved dramatically with experience.
I have a few tips to share that might help you if you are faced with delivering undesirable news to your own clients.
1. Just say it. Sometimes, it's best to just spit it out, then deal with the explanation. If you're at a listing appointment, and you know that the home is worth substantially less than they were hoping for, you don't have anything to gain by beating around the bush. Get it out on the table. In fact, it might just save you some time if they are unwilling to listen to the facts, because you can make a quicker exit.
2. You might consider prefacing your statement with, "I fully realize that this is not what you were hoping to hear", or something similar. It may or may not soften the blow very much, but at least you tried, right?
3. If they question your valuation of their home, tell them that you are forced to look at things as an appraiser would. I have said things like this, "I think your home shows really well, and you have a ton of nice upgrades. I think we could actually find a buyer that will pay the price you want, but I really don't think it will appraise, then you have a new set of issues to deal with."
4. Another good quote (feel free to steal it from me): "You might get an agent to agree to list the home for that price, but it won't change the market value. Don't ever choose an agent based exclusively on the price."
I hope that this is helpful for you. I am known with my past clients as being direct and honest, without being blunt. There is a fine art to communicating effectively. Hopefully, these tips will give you a leg up on your competition.
It is TRUE - This Seattle Loft Penthouse Apartment is simply Stunning. There are plenty of reasons to be suspicious I know, not the least of which is that there are quite a few Other Condos on the market in Seattle to choose from, But this one is Special
OK, see what I mean? This Seattle Penthouse Apartment building is situated right in the middle of The 'it' neighborhood. A Perfect Walkscore 100, with dozens of restaurants, clubs, entertainment, and work & transportation options right outside your front door. Not to mention the Side of the building has a super cool art project on it!
If what they say about only having one life to live is true - you want to live it in a pure Loft Penthouse like this. Seattle boasts many apartment condo buildings, and there are a good share of them worth checking out - but NONE, are as steeped in original Architectural purity, and modern hip, cool, and WOW factor than this Seattle Loft Penthouse. You simply live a better life in this environment!
Where else can you find a Loft Penthouse in Seattle with:
-20 foot ceilings - 2 parking spaces - option of building out a second floor- AND Incredible Mt Rainier to Seattle Space Needle views through WALLS of windows?
Answer - You can't get it anywhere else! - This IS the place.
so, one more teaser photo:
Maybe this one isn't fair - I mean, really now - Its just painful isn't it? Knowing that in modest Seattle, you can own a piece of Architectural History, in the most desirable hip location in town, and your Loft Penthouse Apartment has development potential? GET OUT OF HERE! This is just crazyness - but True. CALL ME FOR MORE INFO 206.218.8448 - WE HAVE SPECIAL FINANCING AVAILABLE!!!
And that my friends is why I say that This Seattle Penthouse Loft IS the Creme de la Creme of urbanite dwelling units in the entire city. Surely it won't last long!
Check out the entire Tour Site for the Seattle Loft Penthouse and see ALL the photos and get plenty more info!
WOW - It is official, the Seattle Condo Auctions at Brix and Gallery announced JUST TODAY in The Seattle Times show us the Seattle Condo Market HAS A WAYS TO GO BEFORE BOTTOMING OUT.
I was suprised to see these two buildings go in to Auction, especially suprised by Brix. Yes, Brix Condos located on the North end of Broadway in Seattle's Capitol Hill neighborhood had been beset by Contractor problems and ended up going through three, yes three different general contractors before finishing, but Brix also had a good lead timeline wise on the entire Condo Meltdown, and their on-site sales were starting to pick up last I heard.
An Auction at Gallery in Seattle's Belltown - in contrast to the Condo Auction at Brix - is not as suprising as it is disheartening. This recent developement proves to me that Seattle Condos still have a bit of price adjustment to go before the market will support more market based sales.
SO WHAT IS THE PROBLEM? WHY ARE BRIX and GALLERY GOING TO AUCTION??
We have a supply problem, plain and simple - Buyers that would have been looking at BRIX or GALLERY a year or even two years ago are buying today in nearby townhouses and a few scattered single family homes that previously would not have been affordable to them. The price advantage of buying a condo in Seattle dissappeared - evidenced most strongly by the announcement today of the BRIX and GALLERY AUCTIONS.
So how much do Seattle Condo prices need to come down to absorb the inventory?
My guess is around 10% from current asking prices across the board. The entry point for condos and the monthly payment needed to live in them needs to come down below that of nearby Townhouses. Paying $400 and up for HOA dues is like financing an additional 80,000 or more in buying power for a townhouse or regular house.
WANT A DEAL ON A SEATTLE CONDO? GET IN ON THE AUCTIONS!!
It is all happening September 27th 2009 for both BRIX and GALLERY, and you need to be pre-approved for financing BEFORE you can bid. If you are thinking of a new Condo, you need strong Buyer Representation, especially in an Auction! CALL ME at 206.218.8448 and lets get the ball rolling for pre-approval so you can take advantage of these once-in-a-lifetime opportunities! Of course if you are a first time buyer, getting in on the Condo Auctions at Brix or Gallery could mean an additional $8,000 tax credit as well, just need to close by November 30th to take advantage and meet some income guidelines.
The LONG TERM (7+ years) outlook for Seattle Condos remains unchanged - we will trend upwards!!! Don't be discouraged if you dream of fabulous Condo living. Instead be excited by the incredible opportunites that the Seattle Condo Auctions at BRIX and GALLERY represent!
Joseph R Hill
Your Professional Realtor, serving Capitol Hill Seattle, Short Sales, Bank Owned & REOS, National Relocation, and Buyers throughout King County.
Timeline to use the $8000 Tax Credit - only ~ 35 'shopping' days left so you are not rushing the clock to the closing table. Escrow companies are going to be VERY busy the last half of November and with Thanksgiving week taking two days away, plus some furlough days in King County, there are even fewer recording days here than elsewhere. Don't miss out!
To qualify for the Home Buyer Tax Credit of $8000, you must buy your home prior to Dec 1, 2009
The tax credit is for first time home buyers, defined as people who haven’t owned a home in the last three years prior to the day you close on your home purchase or people who have never owned a home.
Here is the current timeline working backwards from the last possible closing day for a frame of reference.
November 30th - Deadline - The transaction must be closed by this date to qualify for the credit.
November 19th - Critical “Closing” date - The is the safe date to close by. The next week is Thanksgiving holiday week with county offices closed Wed-Fri. Closing on or before Thursday, 11/19 will avoid the hassles of trying to close during the peak vacation time along with all the other buyers trying to close at the same time.
October 5th - Critical “Contract” date - It is important to have a contract in place by this date if you plan on claiming the Federal Housing Tax Credit. Most first time home buyers are using FHA financing, which realistically takes about 45 days to process.
September 15th - Ideal “Contract” date - Sometimes your first offer isn’t accepted or the inspection can uncover unacceptable conditions, so ideally you should leave some time in case the first contract doesn’t work out. I have had three clients miss out on competitive offers in the last 2 and a half months!
August 1st - Ideal time to start looking - The Federal Housing Tax Credit is putting up to $8,000! in your pocket, that is the easy part, but it usually takes up to 3 weeks to find a home and become Pre Approved for financing - - no time like the present to get started. Information deemed reliable but not guaranteed.
Will the deadline for the Federal Tax Credit be extended? Maybe, however it could be extended with a lower dollar amount or with the payback requirement re-instated. What is certain is that if you buy a home that closes before December 1st, 2009 and you qualify, you will get $8000.
Please call me with any questions: 206.218.8448 and Please forward to friends and family that may want to take advantage of this tax credit. I will help them get a great deal, whether buying or selling, the Federal Housing Tax Credit is a HUGE Opportunity right now, don't miss it!
Seattle Short Sales are not different from other Short Sales across the country. One difference we are experience however is that we have higher Short Sale inventory and fewer Bank Owned properties for sale in Seattle on a density basis than other parts of the country. There have been a number of Clients and Friends asking me about the whole Short Sales How To - This is what I tell them: Cool! Your going for it! Here is my Seattle Short Sales How To advice
The SELLER will have to submit:
-Last 2 months of everything -income statements (paystubs etc) -Expense statements (all bank and investment statements) -Last TWO Tax returns (Federal) -Last two mortgage statements -Hardship letter explaining to countrywide/BoA the reason the Seller is no longer able to afford the loans and the non-existent possibility they would be able to afford it even under a loan modification. Keep it short, less than one page, google for examples if needed -Financial worksheet from the Seller showing their budget on a monthly basis
The Seller pretty much has to go through the steps they would do to apply for a loan in the first place, since now they are 'applying' for a Short Sale
In my experience Banks are approving Short Sale NET TO BANK pricing of between 80 and 83% of what is owed on the loans.
YOU as the Short Sale Buyer / Your Agent will have to submit (along w/ everything above from the Seller) -Completed Purchase and Sale agreement, with a contract agreed to price, and all terms, and closing date (# of days after bank approves the short sale that you will close on the property) -Copy of your earnest money check (you don't have to open escrow or deposit the check till the bank accepts the short sale though -'BPO' (Broker Price Opinion) and a CMA.
The Bank will typically... once they receive everything above...(We call all this stuff the Short Sale Packet) -Acknowledge receipt of the short sale 'packet' within 10 days (bank business days...send everything a couple of times and call after each time to see if the got it) -Assign a Loss Mitigator to the file Short Sale File w/in the first 15 days -Loss Mitigator (LM) will order a BPO of their own on the property to help determine value in case of actual foreclosure. They might already have one of these if the auction date is so close ,you say sept 8th?! -Take a look at the offer from you, what is owed on the mortgage, the sellers 'plea', and the probability of selling the house at auction or after foreclosure for greater than your offer, PLUS look into whether the bank could file a claim on their own loss insurance for the difference between a foreclosure sale price and what the Seller currently owes. If it isn't going to cost a ton of money to fix up the house to put it on the market for a quick foreclosure sale they will probably opt to file the claim and deny the short sale...
HOW LONG DOES IT TAKE? -Some banks are much better than others, and each file is different because of the difference in timelines for lateness and pending foreclosures of each mortgage. -Last year only about 20% of Short Sales were actually closing successfully -This year the banks are much better, but we still don't have stellare results. often teh buyers get cold feet and walk away because they find another hosue they love, or interest rates have gone up in the mean time and the original affordability is impacted adversely. - I think 45-75 days is probable - but you absolutely MUST have verified continual communication with the Loss Mitigator in the case and you must submit a complete packet all at one time. Otherwise the file will always just sit at the bottom of the LM action pile, these guys/gals are overworked and won't waste their time on anything that is not a complete Short Sale packet.
If you are going to go through with it, I suggest having an inspection done up front if you are going to do an inspection at all. Why wait 45 - 75 days for the bank to approve the Short Sale only to then find something on inspection that is a deal breaker for you. Also you need to realize that the seller is in no condition at this point to address any of the issues that would come up under inspection. If it is a serious safety or code issue then you won't be able to get the financing to go through... good to know ahead of time what your getting into. 400 bucks well spent I say!
Ok, have fun. and I'll send you a BIG BILL for my time:)
Now, here is what typically people say after they hear all this about Short Sales How To:
Eek! Hmmm, that’s an awful lot to get done in not very much time! I’m kind of wondering if a Short Sale is worth it though, the bank is going to know that they can sell the thing once they own it and might be able to file a claim for their loss, and the owner just never hired an agent so it was never on MLS and nobody could get ahold of him. See, that’s the value of real estate agents!
Seattle Short Sales are a Specialty of mine. I work with an exclusive team of Certified Distressed Properties Experts, and I am a Certified REO Property Specialist. I know how to get the deals put together so the banks can approve them!
The question everyone seems to be asking right now, 'Has the market stabilized?' is certainly fair, and this newsletter is PACKED with information to help you decide. I have included Tables of Seattle inventory for Residential and Condos, along with Average and Median Sales prices. There is a Table of Bank owned homes for sale and a link to a map of these homes. I also have my first ever links to the latest homes to hit the market on Capitol Hill along with a link to homes on Capitol Hill that have had price reductions in the last three days, so you are the first to know about these homes available for sale.
But what I am really excited about this month is my first Consumer Real Estate Survey! Its just 4 questions and it is powered by you, the consumer, not some techie Economist or Real Estate Broker. I want to get your feel for what the market is doing. Go ahead and take the survey now, here is the link.
One thing we saw in July was an increase in the National Case-Shiller Home Price Index for the first time in three years. That bears repreating - The FIRST TIME IN THREE YEARS. That tells us nationally that resale home prices ticked UP and the slide stopped, great news indeed.
Lets Take a look at Local Numbers for July in Seattle
There have now been 4 consecutive months of modest increase in average sales prices in the Seattle Area, and we didn't have a huge glut of homes hit the market this summer as anticipated / feared. Both of those items are good news for our local market. The homes that are priced well are selling quickly. Even homes that had previously been priced out of the market and had significant price reductions saw buyers through the doors. I had 26 client appointments in July!
Greater Capitol Hill is my bread and butter! It is the area I am most passionate about in Seattle and it is great to see the Capitol Hill area performing better than the Seattle Area as a whole!
Orange is one of my favorite colors. We don't want to see it on too many walls of houses as that would just be way too much of a good thing, orange represents heat. I bring up a 'hot' color to draw a comparison to our local Best Buy Markets. That of course is the REO and Short Sale Market, they are HOT HOT HOT, bright orange one might say. Last month I became a Certified REO Property Specialist this means that I know the ins and outs of how to get my clients the best deal on a Bank Owned home, and to make sure the transaction is successful all the way to close. My Team of Certified REO Specialists does educational TOURS once a month for investors and owner-occupied buyers alike in the local REO/Bank Owned market. We would love to see you there! SIGN UP HERE FOR A TOUR!
When you hire me, it isn't just a one-man-band. I work with a team with decades of experience in the local Real Estate Market, everyone playing a critical part from lending, inspection, appraisal, staging, photography, marketing, transaction coordination, and post close follow-up. Keller Williams didn't get to be NUMBER ONE IN BUYER SATISFACTION for nothing, call me at 206.218.8448 and find out how we can help you today!
Enough said about all that, thank you as always for your support, have a fantastic August 2009 and I'll be in touch in September or before!
joseph Best wishes,
joseph Joseph R Hill Professional Realtor; Metro Seattle Re-sale, New Construction, & North American Relocation 206.218.8448
My Core Values are to Always: 1 - Live by the Get by Giving Philosophy 2 - Make my Client's #1 Goal, my #1 Goal 3 - Live up to my Standards, Despite Temptations to Lower Them 4 - Be Willing to Work Toward a Common Good 5 - Do What I say I will do, Sometimes More Just Never Less!
Blue Bird Ice Cream and Tea Room on Capitol Hill in the Heart of everything cool and happening right now in Seattle is a big HIT in my book. I just walked the 10 blocks there to sample some of their most interesting flavors (Elysian Stout anybody?) and ended up with the Blue Bird Ice Cream Stumptown Coffee flavor.
There were enough Stumptown Beans in this thing that you could actually feel the texture of the beans as you ate the ice cream. After the Hot Hot Hot week we have had here in Seattle, Blue Bird Ice Cream was such a great treat.
You know what hit me like a nice cold blast of Blue Bird Ice Cream on the pallett? This Pike/Pine neighborhood is changed A LOT in just the past year - and this being a very 'down' year for people moving and selling. Well if the Pike/Pine corridor is any indication of what awaits our other currently moderately depressed neighborhoods then I will gladly wait till the day when there is not just one 'HIT' spot for some great ice cream in Seattle, but perhaps there will be three or four Blue Bird Ice Cream parlors to choose from!
Capitol Hill Seattle Short Sales and Foreclosures are today's HOT BUYS!
If you are interested in scoring the best deals in todays great buyers market in Capitol Hill Short Sales or in Capitol Hill Seattle Foreclosures, you gotta come with the best Short Sale and Foreclosed Home Tour Team in the area on our FREE Tours of Bank Owned, Pre-Foreclosures, and Short Sales!
Here are two examples of the types of properties we will be viewing:
1 - $350,000 Short Sale in Seattle South Capitol Hill / Central Area Tudor is a Capitol Hill Short Sale with 4 bedrooms / 1.75 baths, secluded and private high off the street with turn of the century mill work and high ceilings intact - substantial systems upgrades and entertaining spaces make this a great find!
Both of these homes are priced SUBSTANTIALLY below market value and below current tax assessed valuation.
My Team of Certified REO Property and Short Sale Specialists Realtors can help you navigate the complex Short Sale offer process and also make sure you are Pre-Approved so there is no doubt in the Sellers mind that you can qualify for the purchase! Contact the Free Foreclosed Home Tours Team today to get started on your way to the best Capitol Hill Short Sales and Foreclosure deals around!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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