Boy, I wish the government had been giving me up to $9,600 when i bought my first house.
Congress passed the $8,000 tax credit for 1st-time homebuyers in February as part of The American Recovery and Reinvestment Act of 2009. In May, Georgia Governor Sonny Perdue signed HB 261, which allows all Georgia residents who purchase an eligible home to receive up to a $1,800 credit.
The biggest surprise I have about both of these programs...how many potential homebuyers still don't know about them. Well, I'm here to try and fix that problem.
The most important bit of information about each of these programs...
They expire on November 31, 2009!!!
Take advantage of them while you can!!!
Remember...with interest rates at historic lows (although they've risen dramatically at the end of May), your mortgage payment will be very, very low in comparison to your payment on the same house a year ago. With up to $9,600 back, that would pay your mortgage (at a 4.5% interest rate) on a $160,000 house for your 1st full year!
If you're a potential homebuyer or homeseller and you don't know already, the US Senate unanimously approved an admendment (proposed by Georgia Senator Johnny Isakson) to the stimulas package on Wednesday.
This amendment would allow anyone who buys a home in 2009 to receive a tax credit of 10 percent of the value of the home the buy, up to a $15,000 limit. This means that if you buy a home that costs more than $150,000, you will receive a $15,000 gift from Uncle Sam! If your new home costs less than $150,000, you will receive a credit for 10% of the purchase price of your home (i.e. a $120,000 home will allow for a $1,200 tax credit). Read more on this story here...
SHOULD THIS PASS, THIS IS TRULY A HISTORIC EVENT FOR THE HOUSING INDUSTRY!
Regardless of how you feel about the stimulus package as a whole, this is certainly a part of the package that can benefit you greatly as it relates to buying a new home (and will subsequently benefit sellers who are eager to sell their home).
As you may remember from last fall (covered in my blog on 8/2/08 - click here to visit that article), the current law provides for a $7,500 tax credit for first-time homebuyers only - and it has to be re-paid over a 15-year period. This new law would allow ANYONE who purchases a home to receive up to $15,000...and it never has to be re-paid!!! It's cash in your pocket - to do with as you please!
This comes after a very good December in national real estate news. Hard to believe, huh? Well, let's see how January & February (two of the traditionally slowest months in real estate) perform.
According to the National Association of Realtors (NAR), the Pending Home Sales Index for December 2008 (based on the number of contracts signed for that month), rose 6.3%, to a level that is 2.1% higher than it was in December of 2007.
Also, even more noteworthy, the NAR's Housing Affordability index (which shows the relationship between home prices, mortgage interest rates and family income) rose 10.9 percent in December to a value of 158.8. This value is THE HIGHEST ON RECORD since the statistics began in 1970!!! This indicates that homes have never been more affordable (at least since 1970) than they are today. See the full article here... With home prices as low as they can be and interest rates lower than they've ever been before, homes simply can't be any more affordable!
Is the economy weak now? Yes. Is housing looking more promising as each day passes? Potentially. January & February will be pivotal - let's see how it goes...
If you have any questions, please feel free to call or e-mail me!
Boy, oh boy - watching the news is not a fun thing anymore, huh?
The economy stinks, the stock market stinks, jobs are being lost, the sky is falling! So how's the real estate market? It's somewhat the same as anything else...If you have to sell something (products/goods, stocks, a home, etc.) it's going to be tough for you to find a buyer. Is it impossible? No - but are you going to get top-dollar? You better believe you're not.
However, there is a bright side...if you walk into a department store these days, you're likely to get an unbelievable deal on darn near everything in the store! If you want to buy stocks, you're going to get an incredible deal. If you want to buy a car (ESPECIALLY AN AMERICAN-MADE CAR), you're going to get a better deal on that car than you have ever been able to get in your lifetime.
THE SAME IS TRUE FOR REAL ESTATE.
Supply is at an all time high, so you have much more to choose from than you would if the market didn't favor buyers.
Sellers are more motivated than they've ever been in history to sell their home. Banks are overrun with foreclosures and are willing to give them away for (relatively speaking) pennies on the dollar. Many builders are in rough shape and are willing to negotiate their prices/terms much more so than at any time in recent history.
Interest rates are at an all-time low. A few months ago, I was writing that interest rates were at "near-historic" lows, but now they're truly lower than at any time in history. The National Association of Realtors is reporting that just before Christmas, Freddie Mac said the national 30-year rate fell to 5.19 percent - the lowest on record since the series began in 1971 (but guess what? they're even lower for us in Georgia!).
Because interest rates are so low, you can afford a much more expensive house than you could've just a few months ago. For instance, let's say you want your principal and interest to be around $1,050.00 a month. If your interest rate is 6%, you can purchase a $175,000 house. However, if your rate is only 4.5%, you can purchase a $208,000 home and you'll have the same $1,050.00 monthly P & I payment! As you probably know, that extra $33,000 will get you quite a better/bigger/nicer home. Even greater, because the market is so strong for buyers right now, you're going to get a home that's actually worth much more than $208,000...and when the market comes back, you'll be able to sell that home (should you choose to) at or above market value and cash in on your investment!
Of course, if you just want to take advantage of the low rates and save money when you buy a house, you can buy your $175,000 house and your payment would only be $866.00! That's a savings of $184.00 a month (or $2,200 a year)!
Let's review:Here's a brief summary of the advantages you will enjoy if you buy while interest rates are low and supply is high as compared to high interest rates and low supply...
Low interest rates and high supply...
You can get a $208,000 home at 4.5% for the same monthly payment as you would've paid for a $175,000 home at 6%.
Because supply is so high and sellers are selling at deep discounts (especially in the foreclosure or short sale market), you'll likely get a $230,000 or $240,000 (or more) home for your $208,000 purchase price. When you later try to sell the home, you will be in a very good situation.
However, if the conditions are reversed and interest rates are high and supply was low...
You would only be able to afford a $175,000 home for the same monthly payment at a 6% interest rate.
In a market where supply is low, sellers have the advantage and can get top-dollar for their home. Even if you buy a $208,000 home, you're likely to get a home that's actually only worth $190,000-$200,000. When you later try to sell the home, you're going to be in trouble.
OH BY THE WAY, DID YOU SEE THAT FORBES JUST DECLARED ATLANTA TO BE ONE OF THE TOP 10 CITIES IN THE NATION IN THEIR "BEST LONG-TERM HOUSING BETS" LIST LAST MONTH?
See www.4910HollandView.com (no log-in or personal info required) for complete information, tons of photos, interactive maps/driving directions, local/area & school info, etc.
Impeccable 5 bed, 2 full bath home in upscale Flowery Branch neighborhood. Outstanding location - extremely convenient to I-985& I-85! Wow-factor kitchen w/granite countertops, stainless steel appliances & tile backsplash. Dine in the formal dining room, breakfast nook, or breakfast bar. Owners have taken all the steps to perfect the inside and out for the sale of this home - new concrete (Hardiplank) siding, new A/C system, new exterior and interior paint, & new hot water heater! Enormous 5th bedroom or office/bonus/rec/media room offers great flexibility! Spacious 3-car garage and huge laundry room! Over .6 acre lot w/level play area and great patio. Only minutes from Flowery Branch High School and the Atlanta Falcons/Georgia Force training facility.
See www.4910HollandView.com (no log-in or personal info required) for complete information, tons of photos, interactive maps/driving directions, local/area & school info, etc.
Impeccable 5 bed, 2 full bath home in upscale Flowery Branch neighborhood. Outstanding location - extremely convenient to I-985& I-85! Wow-factor kitchen w/granite countertops, stainless steel appliances & tile backsplash. Dine in the formal dining room, breakfast nook, or breakfast bar. Owners have taken all the steps to perfect the inside and out for the sale of this home - new concrete (Hardiplank) siding, new A/C system, new exterior and interior paint, & new hot water heater! Enormous 5th bedroom or office/bonus/rec/media room offers great flexibility! Spacious 3-car garage and huge laundry room! Over .6 acre lot w/level play area and great patio. Only minutes from Flowery Branch High School and the Atlanta Falcons/Georgia Force training facility!
See www.4910HollandView.com (no log-in or personal info required) for complete information, tons of photos, interactive maps/driving directions, local/area & school info, etc.
Impeccable 5 bed, 2 full bath home in upscale Flowery Branch neighborhood. Outstanding location - extremely convenient to I-985& I-85! Wow-factor kitchen w/granite countertops, stainless steel appliances & tile backsplash. Dine in the formal dining room, breakfast nook, or breakfast bar. Owners have taken all the steps to perfect the inside and out for the sale of this home - new concrete (Hardiplank) siding, new A/C system, new exterior and interior paint, & new hot water heater! Enormous 5th bedroom or office/bonus/rec/media room offers great flexibility! Spacious 3-car garage and huge laundry room! Over .6 acre lot w/level play area and great patio. Only minutes from Flowery Branch High School and the Atlanta Falcons/Georgia Force training facility!
Welcome to 114 Albert Lane - Just Reduced to $129,000!
Easily one of the best values in all of Jackson County!!! This home has been pre-inspected and new carpet has been installed!
Check out www.114Albert.com for complete information, pictures, virtual tour, interactive map & driving directions, school links, community links, etc.
This home is on a corner lot (over 3/4 of an acre)! The backyard is fenced, level, and wooded for privacy!
There are 3 bedrooms, 2 full bathrooms, a finished bonus room, and 2-car auto garage!!!
The neighborhood's great and there are no HOA fees!
In case you haven't heard...our very own high school football team, the Jefferson Dragons has been selected as one of the 5 teams in the state that's in the running for the Fox5 Team of the Week.
If you're a Dragons fan, you can vote for your team. You may vote as many times as you'd like between now and Tuesday at 3pm (but only one time per hour per computer).
Well, they say it ain't (please excuse the poor grammar) bragging if it's true, so here goes...
Prudential Georgia Realty Represents More Buyers in Georgia than any other real estate company!
Trendgraphix reports that Prudential Georgia Realty is #1 in buyer sales volume for August 2008. In addition, Prudential had the highest increase in year-to-year marketshare for overall units and sales volume plus buyer units and buyer sales volume. For the past year, Prudential Georgia Realty has consistently outperformed the market with increased marketshare. Click here for more info!!!
Buyers, if you only read one thing, read this: BUYERS NEVER HAVE TO PAY COMMISSION!!!
Most buyers I meet simply don't know that they can use a Realtor such as myself to help them in their home search.
Only sellers pay Realtors when a home is sold, and they do so from the proceeds of the sale of their home. If a seller has listed his home with another Realtor, they have already agreed to pay a percentage of their proceeds from the sale of their home to their Realtor...as well as the Realtor that represents the buyer that buys the home. Also, the benefits of having a Realtor represent you in aspects such as negotiation, price, constructing all the elements of the contract, home warranty information, etc. need not be mentioned. As a buyer, you get all the services that I can provide for you, and you do so completely free of charge. This is one reason I enjoy working with buyers, because I can simply assist you in your home-buying experience while the seller of the home pays me to do so. That's right - the seller pays me to help you get the best deal possible!!! Hard to believe, huh? So whether you choose to use me or another agent, please use someone for your own benefit.
Finally, if you're just searching on-line, I want to make sure that you know there are many things I can do to save you time and effort, such as sending you all the homes that meet your criteria in one simple e-mail that you can save (to keep you from having to spend so much time searching online) and I will get you "plugged in" to the MLS (Multiple Listing Service) so that it e-mails you the moment any new homes are added that meet your criteria. You'll see that you can organize the listings into "Likes," "Possibilities," and "Dislikes." You can also make notes directly on each listing that I will be able to see - such as "Mike, I'd like more information on this home" or "Mike, I'd like to go see this home with you tomorrow morning."
Remember, I'm a NO HASSLE Realtor - I only go as fast as you want me to, so don't worry that you'll ever be pressured by myself or anyone on my team!
As you probably know if you're keeping yourself informed, things have changed a little in the past few weeks.
I thought you might want to see some articles from this week on the National Association of Realtors' website that give you an idea of the market conditions as they stand right now.
Remember, if you don't already know, MORTGAGE RATES DROPPED A HALF A PERCENT THIS WEEK!!! Go back and read my blogs from this spring & summer where I kept telling you that rates would rise - now the government's intervention into Fannie Mae & Freddie Mac has brought rates down again! If you're going to buy, BUY NOW!!!
Remember, Forbes.com has Atlanta in the Top 10 Cities to buy a home - see the article here - Forbes.com's quote: "The South made a nice showing with Charlotte, N.C., Jacksonville, Flo., and Atlanta, Ga., making our list. Charlotte and Jacksonville have surged in price by 12.9% and 8%, respectively. Atlanta has seen huge amounts of growth and remains reasonable with a median home price of $172,000."
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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