Alyse's Blog

Press release regarding Tax Credit. All you need to know.

Village Real Estate — Mon, 09 Nov 2009 11:44:05 -0600

It's Official: More Homebuyers Qualify for Tax Credit

Today, November 6, 2009, President Obama signed an expanded version of the $8,000 first-time home buyer tax credit that was set to expire on November 30, 2009. The new version of the tax credit goes into effect on November 7, 2009 and has the potential to stimulate the housing market even more than the old version. More people will qualify under the new rules. Although the tax credit remains at $8,000 for home buyers who have not owned a primary residence in the last 3 years, it has been expanded to include a $6,500 tax credit for home buyers who have lived in their current primary residence for at least 5 consecutive years out of the past 8 years. Under the old rules, move-up homebuyers did not qualify. Consider these examples:

Example 1: Jane purchased a home in 2002, lived there for 5 years as her primary home, moved out in 2007, and turned that home into a rental property. If Jane decides to buy a new primary residence today, she would qualify for the $6,500 tax credit because she lived in the same residence as her primary for at least 5 consecutive years out of the past 8.

Example 2: Harry purchased a home in 2004, and lived there for the past 5 years as his primary home. If Harry decides to buy a new primary residence today, he would qualify for the $6,500 tax credit because he lived in the same residence as his primary home for at least 5 consecutive years out of the past 8.

Example 3: Nicole purchased a home in 2006, and lived there for the past 3 years as her primary home. If Nicole decides to buy a new primary residence today, she would not qualify for the $6,500 tax credit because she did not live in the same residence as her primary home for at least 5 consecutive years out of the past 8.

Example 4: Bob, an existing homeowner, signed a contract on October 22, 2009, to purchase a new home. He has lived in his current home for more than 5 consecutive years and is within the new income limits. He will go to settlement on November 22, 2009. Bob will qualify for the new $6,500 tax credit as there is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.

The tax credit applies to homes that are purchased for less than $800,000 and before May 1, 2010. If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010. This is similar to a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.

The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. This means that more people will qualify for the credit -- especially in parts of the country with higher costs of living. This should help stimulate parts of the housing market that may not have been impacted by the old versions of the credit. Some of these are feeder markets for the Upper Cumberlands. As these sellers relocate, higher sales in those markets could translate into more sales here.

There are many creative ways of structuring your home purchase transaction. The licensed and certified mortgage professionals at Reliant Bank can help maximize the benefits of the credit. Here are a few examples:

* The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence. You could live in one unit and rent out the others.

* If 2 unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income, or past home ownership status, the individual who qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit.)

* The credit applies even if you have co-signers on your mortgage loan. Today's good news regarding the expanded home buyer tax credit will have a positive impact on housing nationally. It is vitally important to share this information with our community so that we can benefit here at home as well.

Friends and Clients

Village Real Estate — Sun, 11 Oct 2009 17:43:29 -0500

I'm a professional, single woman. I depend on my real estate income to pay my bills...no surprise because we all have to make a living. Some people have a partner with a second income. Not me. I worked my way through school, I had a career in advertising some time ago and I've been working full time in Real Estate for 11 years. I'm successful at what I do. I grew up with a Real Estate Broker for a mom, I worked in her office as a young adult and I started originating loans in the early 90s. Experience is my middle name (okay...it's really Michele). I can anticipate a problem and avoid it well before it actually happens and I can prequalify any buyer you stand in front of me. If the home you want exists, I'll find it.

I understand that sometimes service people will back-burner their friends when they're busy. Maybe they think friends will understand because they're friends but I'll bend over backwards in business for my friend-clients and for my client-clients. It's so important to me that I do the best I can do in everything I do and that I'm recommended by anyone I've worked for because they experienced quality service.

Oftentimes, friends will use their friends' services just because they're friends. Loyal friends don't always qualify each other. Loyalty is important but so is good service. I want my friends to know that I'm not only a friend but that I'm an excellent negotiator, an experienced educator, a Broker (the highest education for an agent) and that I want to provide references for them, too. Question me. Test my knowlege but, more than anything, think of me when it comes to Real Estate. That's what I do best. By using my Nashville Real Estate services, you're not doing me a favor, you're getting the best dang (southernism) service there is. Support me by referring my Nashville Real Estate services to anyone you may hear talking about Nashville real estate (or surrounding areas). So friends, use my services because I know my business, not just because I'm a loyal friend....and thanks in advance for your credence (and loyalty). I will think of you, too.

$8000 First Time Buyer credit. Reasons to start today.

Village Real Estate — Sat, 22 Aug 2009 11:42:38 -0500

Some 300,000 households who otherwise couldn't have entered the market will buy a home this year because of the $8000 tax credit. First time buyers (or those who haven't owned in the past 3 years) cannot afford to miss out on this opportunity. In order to benefit from this, the home purchase must be closed before December 1, 2009.

Buyers must act quickly to:

A. Get a mortgage pre-approval. You must be prepared when you find your dream home. Sellers will negotiate more when they know you CAN buy their home and banks require an approval letter before they will even look at your offer. You will know how much you can afford, the approximate rate and payments. Apply for free here: http://is.gd/2qj3d-

B. Have your agent, Alyse Sands, search for your dream home from thousands of bank foreclosures, resales and new homes, look at the homes that meet your search criteria, fall in love with one and get it under contract.

C. Time to close: Lenders are backed up and it may take up to 60 days to close a loan these days, especially because thousands of first time buyers will be closing right before the deadline of Dec. 1.

ACT NOW! Call me, Alyse Sands. I specialize in educating buyers. I will explain the process before we begin so there are no surprises. I'm a full-time Broker-Agent and Loan Professional for the past 10+ years.

How do you know that the market is turning?

Village Real Estate — Tue, 23 Jun 2009 01:24:47 -0500

The only way to know when the market has turned is after it's started going up it so buying at the bottom of the market is possible...but only by accident. There's no way for anyone to predict exactly when the bottom will hit.

It seems that the market has picked up in Middle Tennessee within the past couple of months. All of the agents I know, including myself, have been working with more buyers and have started getting offers on their listings. That's proof positive that activity is up from a few months ago.

Zillow Zestimates

Village Real Estate — Sat, 20 Jun 2009 18:25:21 -0500

This is a tool for the public to use to justify or check on home values for those who are using it for curiosity's sake. It's fine but it is not viable information to use for market value for selling or buying and this is why:

When I, as a licensed Real Estate Professional, prepare a market analysis, I utilize information on recently sold properties that are similar in size, construction, age and area, starting with the same subdivision...APPLES TO APPLES. I use the MLS information before using the tax records because many times the tax records are not recorded properly and much of the time the square footage is inaccurately listed. MLS listings usually post square footage that was given by a previous appraisal or measured by the agent and is more accurate. Agents and appraisers use price per square foot to come up with market value for a property compared with properties that are most like it in every way. We also search first for homes that have sold within the past few months and, if we cannot find any recent sales, we'll go back six months.

Zillow does not take into consideration the age and construction of the home and it pulls the square footage from the tax records. This is done without human intervention. Nobody is checking to see if these comparable properties are truly comparable to the subject property. Using the square footage from the tax records, it uses all properties close to the size within a radius of the subject property, regardless of age or construction.

You must have accurate information when buying or selling property. This is one of the biggest purchases you'll ever make. This is also just one more reason to use a professional when purchasing a home whether you are the buyer or the seller.

Condo developers suing unclosed buyers.

Village Real Estate — Sun, 07 Jun 2009 22:59:34 -0500

Developers in Nashville, TN are suing 3 buyers who did not close on condos they contracted on spec a few years ago. I noticed a post by a buyers' agent asking why we even have earnest money and that the forfeiture of earnest money should satisfy a breach of contract by the buyer. This was my response:

I'm not sure why you need earnest money explained to you since you are a licensed agent but I will comment. I see that you represent only buyers so I understand that you see it from the buyers' perspective. I work with both buyers and sellers so I'm not taking sides; I'm commenting on your predilection.

We know that earnest money is held in escrow to protect the seller in case the buyer breaches the contract. Since nothing is black and white and many scenarios can occur that can result in a breach, either party has the right to sue for actual damages (depending on the contract's verbiage) caused by the breach. The amount of the damages can differ, depending on the amount of loss. Nobody knows what that will be until the breach occurs so it may end up to be more than the amount of the earnest $. Since the same laws apply for new condos, resales, etc., here is just one example of why we have both earnest money and contracts:

Say that a seller had received a $10,000 higher offer from buyer B right after signing a contract with buyer A yet had to honor the existing CONTRACT. What if the transaction wasn't closing for 3 months so the property is off the market for 3 months but buyer A backed out a week before closing. The seller is entitled to keep the earnest money, depending on the verbiage in the contract, but now the house has been off the market for three months plus however long it takes to resell. The seller now couldn't buy a home that s/he was trying to buy and lost a job because he/she couldn't move because the buyer didn't close. The buyer's decision has caused a domino effect. If the contract states it, in this case it is the seller who has the right to sue for specific performance. A Real Estate expert/guru like you should know this.

Even though the developers didn't lose a job or a home, the same laws apply to this seller. In the case of the condos, nobody could have predicted that the market would change for the worse. Perhaps a buyer decided this price was no longer in their best interests. That shouldn't matter. A contract is a legal and binding agreement and the seller may be able to keep the earnest money but the buyer still breached a contract. However, to win a case, the seller has to prove damages. The bottom line, though, would be what is decided by the courts.

Agents BEWARE of new Craigslist scam

Village Real Estate — Tue, 19 May 2009 13:59:22 -0500

This is not isolated to Tennessee. It could be happening all over.

FRAUD ALERT RE Tennessee Association of Realtors(r):

Craigslist by Tennessee Association of Realtor(r)s. Within the past seven days, we’ve received notices of two different, but similar, instances of attempted fraud using Tennessee listings and Craigslist. There is a very good chance these two cases are not isolated incidents!

In both cases that came to our attention (one from Hendersonville and one from Clarksville), properties that had been listed by Tennessee REALTORS showed up - without the listing agent’s knowledge - as rental properties on Craigslist, with an email address to contact for information …although the email address is a fake Yahoo or Gmail address using the actual listing agent’s name as part of the address! The party behind the scam poses, via email, as the listing agent and attempts to collect the first month’s rent and a deposit by email or overnight delivery.

Both Craigslist and (in one of these cases) the FBI have been notified of the scam. In the meantime, it would probably be wise for each firm to scan the rental property listings on Craigslist for their area, just to ensure that none of your listings are being misrepresented.

The Megan Meier Cyberbullying Prevention Act: What have we come to?

Village Real Estate — Sun, 10 May 2009 23:55:05 -0500

Rep. Linda Sanchez introduced the Meier Cyberbullying Prevention Act last month. The legislation is named after Megan Meier who killed herself in 2006 after becoming the victim of a MySpace hoax created by the mother of a classmate and former friend.

`Sec. 881. Cyberbullying

(a) Whoever transmits in interstate or foreign commerce any communication, with the intent to coerce, intimidate, harass, or cause substantial emotional distress to a person, using electronic means to support severe, repeated, and hostile behavior, shall be fined under this title or imprisoned not more than two years, or both.

I have to rant now:

First of all, we have the right to delete email or block myspace "friends", take away social networking privileges from our kids or place computers in common household areas. Let me add here that parents have the right and should keep the family computer in a common area of the home...take responsibility for their children's computer use. Another option: tell the kid to stay away from the computer if he/she's being harassed...now there's a novel idea.

Everyone is spoiled these days. So many parents coddle their children and don't teach them how to handle life situations. Everything is done for them these days. Mothers sell girl scout cookies, wrapping paper and other school items for their kids, We have become an impatient society. We don't discuss problems rationally before retaliating. We sue restaurants for serving hot coffee. As kids, we had to deal with bullies. Our parents didn't have them arrested. It made us stronger. It taught us how to handle these situations later in life. What kind of world is this going to be when this generation of children grow up and things don't go their way? We need to allow children to learn from experience so they have the tools to make decisions later.

Not only is this violating our freedom of speech, email and the internet are not regulated...yet. This bill is only the beginning. This can change our lives. Is Big Brother watching us? Must we be extra careful about everything we say or write? Should we be afraid of expressing ourselves in a way that may offend someone? Hopefully the offended party will have to prove intent. Imagine that.

Seems like Real Estate is picking up in Middle Tennessee

Village Real Estate — Sat, 09 May 2009 14:41:19 -0500

I just closed a transaction for a buyer. While we were under contract, the seller received two other offers, both for full price while my buyer was under contract for a good amount less. Their fingers were crossed that my buyer's loan would fall through...but it didn't.

Last week, in my office sales meeting, we were discussing our businesses and three agents said that they were involved in multiple offer situations in the past week or two, either on the seller or the buyer's side. That's good news for the Tennessee market and it also means that other areas are experiencing this upswing. Hopefully it means that the rest of the country will follow suit.

Old Hickory Village, an historic area

Village Real Estate — Mon, 20 Apr 2009 00:30:01 -0500

Open House on 811 Lawrence St was rained out today. We'll be doing it next Sunday.

By the way, this house is awesome; it's listed in the National Registry of Historic Places, along with some other homes in the "Village" and other Nashville Real Estate. Here's some very interesting information about Old Hickory Village:

OHV was built in 1918 during the Great War to house DuPont employees. By 1920, the war was over and the homes were no longer needed so the town was deserted. The entire neighborhood was bought out by Nashville Real Estate investors and then sold to the DuPont company. Click here for more detailed information on this historic community.

The Arts in Nashville

Village Real Estate — Fri, 17 Apr 2009 15:35:05 -0500

There is so much to do for the art afficionado in Nashville, TN, otherwise known as "Athens of the South".

The Frist Museum shows famous collections such as Georgia O'Keefe and the Masters of Watercolor, features Jazz in the lobby and live bands the first Friday of each month. The Cheekwood Botanical Center offers art showings whil walking through their beautiful gardens while listening to live music. The First Saturday Art Crawl is a monthly event where art (and wine) lovers walk from gallery to abundant gallery in downtown Nashville. The Parthenon, a full scale replica of the Parthenon in Athens, Greece, located at Centennial Park in midtown Nashville, is also an art museum.

One can also attend the Nashville Film Festival which showcases independent International and local films at the Green Hills Theatres in mid April. Downtown is the Tennessee Performing Arts Center which is also the home of the Nashville Ballet, Nashville Opera and The Tennessee Repertory Theatre and also downtown is the Schermerhorn Symphony Center. On a smaller scale you can catch Improv and local theatre regularly at small, black box theatres around town.

These events only scratch the surface as there are showings at the many schools and Universities and, of course, live music everywhere you go in Nashville, as well.

Alyse Sands

Nashville Weather ramblings

Village Real Estate — Tue, 31 Mar 2009 12:22:04 -0500

Yesterday was a beautiful day. It was the first sunny day in about 5 days so I quickly ran out to take photos of my Lakeridge Run listing in Nashville and got some good ones now that the seller took down the wallpaper in the kitchen and painted it a pretty, sunny yellow color that reflects the natural light. Going out to pick up a few finishing touches to bring out the burgandy of the transitioning dining room today.

Saturday night we had a huge thunderstorm in Middle Tennessee with tornado warnings but it blew over in a couple of hours. It's about to rain again today. I can hear the wind blowing, fiercely outside the window!

It's Okay to Pull the Trigger

Village Real Estate — Fri, 06 Mar 2009 19:16:43 -0600

Well, here we are in a down market in Middle TN. It's the first one I've seen in my 15+ years of residency. The fact that our region never saw through-the-roof prices is what has saved us from plummeting to the depths that other areas of the U.S. are experiencing. Home values have come down perhaps 10-20%, depending on the locality.

I've always regarded Real Estate as a long-term investment...like the stock market. Since I've been in the Real Estate game I've seen people buy a home at market value, only to sell it 2 years later. Even in Middle Tennessee's prior, gently upward market, selling a home purchased at market value in two years never resulted in a monetary gain. If you don't have to sell right now, hang onto it and revisit the idea in another year.

I hear people saying that the market hasn't hit bottom just yet. Some are waiting just a bit longer to see what the market will do but how will they know when the bottom hits? There's no way to know for sure until it starts going up again and Middle Tennessee values are not experiencing huge jumps so, if you are planning to buy a home, go ahead and pull that trigger! Get a good agent who will show you lan to stay in the house for a while and your home will become an investment.

Great buyers, little options

Village Real Estate — Thu, 12 Feb 2009 21:13:34 -0600

I'm working with a fabulous buyer who has a good income and wants to buy a home that is priced at around $700,000. He's got great credit, is being relocated with a company, his home in another state is paid for...but he can't buy until he sells his home, anyway. So after working with him for a bit, he wants to look at rentals.

I've suggested a Bridge Loan, a-lease-to-purchase and a Jumbo FHA loan (higher rate) that can be streamline refinanced in a couple of years. I don't know if these are being considered just yet.

I ask myself, though: With such a great buyer, why does it have to be so challenging?

Today's mortgages

Village Real Estate — Mon, 02 Feb 2009 17:53:49 -0600

When I was growing up my parents taught me to save my money. Lessons like saving our allowance vs spending it were learned. We were taught that you don't buy a house until you have saved enough for a down payment. I put down 20% on my first home and all of my properties.

So many people I know don't seem to have been taught how to budget their money. Friends of mine who are in fear of losing jobs still spend freely on gifts and entertainment while I watch my spending.

A few years ago lenders were giving (yes, giving, as it turns out) money to everyone, regardless of credit scores. Buyers who should never have been purchasing homes were doing so and at 100% or higher LTV! Sellers were paying the closing costs (or they were being added into the purchase price) so these buyers had nothing to lose. As a Real Estate agent, I was supplied approval letters from the buyers' lenders and it wasn't my job (or business) to question whether they could afford it. (Agents are not permitted to see the income information of our buyers unless they show it to us). I advised my buyers not to spend the highest they were approved for but. ultimately, it was their decisions to make.

I remember buyers wanting higher priced homes they saw on the internet that were more than their 42% ratio (the highest % of the buyer's monthly income to use for all their bills supposedly allowed on FHA loans) and lenders stretching their ratios, sometimes to 50% (somehow) at the buyers' requests. I anticipated that it would come back to bite the lenders in the butt...but then, so many of us were. We sold homes because that's our job and we trust that our boss (the buyer) is responsible enough to know what they're getting into.

So here we are back to before mortgage leniency. Gone are the Stated Income loans of the past for self-employeds. Gone are the the very high LTVs (loan to value=percentage of the loan to the sales price). For a while we could easily get an 80/20 loan (with the 20% loan being the downpayment for the 80% loan). New guidelines are popping up that are making it difficult, even for buyers with excellent credit, to buy a home because they don't have large amounts of liquid cash.

It has always been very important to be pre-approved for a mortgage. It's even moreso now that the guidelines are tighter. It would be a great loss of time and heartbreaking to have fallen in love with a home, only to find that you're unable to purchase it because of some new stipulation.