By Steve Sloboda · June 21, 2009

The $300K price point in the Tacoma-Pierce County area has become one of the most popular ranges to buy or sell.

Finding a home in "turn-key" condition in this area was recently very hard to do. Since prices have come down there are now many good options available. Finding a 3 bedroom 2 bath home with a nice yard and a garage for around $300K is no longer a crazy request.

In a recent search I was able to find 10 - 15 really nice homes in DuPont, University Place, Lakewood, and Fircrest right at the $300K mark. Even Steilacoom has some affordable options these days. These homes were on the market for an average of 75 days and all started out asking around $320K. In the last two years it is safe to say that these homes would have started out asking around $350K and would have easily sold for more than $320K.

What this means is many people can get much more for their money. Also, these homes have demonstrated their ability to sell in higher price points with different market conditions. When that climate returns your investment will grow with it.

I've noticed many properties that were on the market last year for $340K plus are now being listed at the $300K number. Nobody knows when the market hits bottom...It actually might have already happened....The market will display its bottom only after it truly hits and is back on the rise. Consumers will see this trend and learn the market bottom behind them. We have seen homes in this area sell for more than they are listed for now. Buying at this time will allow you the opportunity to be ahead of the curve. What was unattainable as little as 1-year ago is now a reality for many people taking advantage of this current real estate market.

Steve Sloboda is Associate Broker at Windermere Real Estate/Paragon Co. in the University Place office. Steve lives in the Oakbrook neighborhood of Lakewood with his wife Amity, and their two young children. For more information or to contact Steve direct please go to www.stevesloboda.com.

$8000 tax credit available to First Time Home Buyers

 

By Steve Sloboda · May 3, 2009 For The Suburban Times

I recently wrote about the fantastic $7500 tax credit opportunity that was offered by the US Government. Just when it was thought that it couldn't get any better the Feds announced a full $8000 credit for First time home buyers. It's more than the previous version and has much better terms. The initial option was actually a long term loan that had to be paid off. Now it doesn't have to be paid back. It's actually a tax credit of up to $8000 that you get directly if you qualify as a first time home buyer and close on a house during the allowed time period.

The website www.federalhousingtaxcredit.com explains some terms needed to qualify.

A few main points are:

• The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

In addition to these main points there is an extensive list of questions and answers on www.federalhousingtaxcredit.com.

So what does that mean for the market here in the South Puget Sound area? Well, it means a lot of things. First, it further magnifies the thought that this might be the best time in our history to be a first time buyer. With interest rates being at historic lows, inventory of homes for sale being higher than usual, and this tax credit, the time is now to buy a home if at all possible. Second, our area has many great homes at affordable asking prices. Getting out there to take a look has never been easier. There are so many great sites out there to search real estate. Take a look online or get in touch with a real estate agent to begin the process.

Pierce County has a lot to benefit from with this tax credit. Hopefully, it will stimulate the housing market allowing people close to foreclosure to get out of a bad situation. In addition, allowing qualified buyers to step in and move forward. That will be good for the local economy.

A lot of people have approached me with the thought that getting a loan was now next to impossible and that was why these incentives are popping up. That can't be further from the truth. Its not that loans aren't available, it's that exotic or risky loans are no longer available. To get a home loan these days you must be qualified with a bank or mortgage broker. Banks are a little more stringent in their rules to qualify. If you have a job, some money saved for a down payment, and the desire to buy...Odds are there will be a good loan available for you.

Recently I've seen a significant uptick in the local real estate market. The days are getting longer, school is close to getting out, and people are excited about the interest rates and this tax credit opportunity. If you've been thinking of buying a home I suggest you move forward sooner rather than later. Nobody is sure how long this will last.

Steve Sloboda is Associate Broker at Windermere Real Estate/Paragon Co. in the University Place office. Steve lives in the Oakbrook neighborhood of Lakewood with his wife Amity, and their two young children. For more information or to contact Steve direct please go to www.stevesloboda.com.

Your Real Estate Starting Five

 

By Steve Sloboda · March 18, 2009 For the Suburban Times

In anticipation of College basketball's "March Madness" and the upcoming start of the NBA playoffs, it occurred to me that when buying a house your real estate team, like a basketball team, also has a starting five.

1. The real estate agent is a very important part of your starting five. Much like a point guard in basketball they handle most of the vital parts of your transaction. It is their job to show you homes that match your criteria. The agent will write an offer and help negotiate a fair price. They will take into consideration neighborhood and features that maximize your buying power. After an agreement is made, your agent will coordinate with the team to ensure a smooth closing.
2. Your mortgage person is like the center on a basketball team. They will provide you with options and programs allowing you flexible terms for your home loan. They also work with you to clean up credit and strengthen your financial picture. Once you have been approved they will handle the financial aspects of the transaction.
3. Having a good inspector is key to making sure that any home that you plan on purchasing is in good working order. Your inspector does the dirty work for your team. He or she will go in and check the home's systems with a fine tooth comb and report back to you any deficiencies found. Use that report to renegotiate any arrangements that need to be taken care of to fix these problems.
4. Title insurance companies are the underrated but valuable player on your starting five. They are there to make sure that your land is clear of issues that may cause problems with you taking ownership. Your title company will study the history of the property and identify any defects or liens that may affect the transaction. They also insure your property so it will be safe from false claims after you are in ownership. Although most people don't think about the title insurance aspect of a real estate transaction it is a vital part of your successful deal.
5. Your Escrow Company is the defensive presence on your team. They are a neutral third party that handles the distribution of money and oversees the document signing. An escrow company is essential to make sure that all parties have the required paperwork in place and all finances are distributed correctly. Without them, small issues can sometimes get through the cracks and become bigger problems.

Buying Real Estate can be more complicated than first expected. Having members of your team working together can ease confusion and help make your transaction go smoothly.

Steve Sloboda is Associate Broker at Windermere Real Estate/Paragon Co. in the University Place office. Steve lives in the Oakbrook neighborhood of Lakewood with his wife Amity, and their two young children. For more information or to contact Steve direct please go to www.stevesloboda.com

By Steve Sloboda for the Suburban Times

Did you know that first time home buyers may be eligible to receive a government tax credit up to $7500? Well, it's true. Last November the Government approved a tax credit for first time homebuyers that will allow them to take up to $7500 off their taxes. It's an exciting opportunity for people to take advantage of. There have been many questions about what it is and how it is applied so I decided to put together these quick points along with some answers to frequently asked questions.

• The tax credit is available for first-time home buyers only.
• The maximum credit amount is $7,500.
• The credit is available for homes purchased on or after April 9, 2008 and before July 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.
• The tax credit works like an interest-free loan and must be repaid over a 15-year period.

Q: Who is eligible to claim the $7,500 tax credit?
A: First time home buyers purchasing any kind of home-new or resale-are eligible for the tax credit. In general, the tax credit is equal to 10% of the qualified home purchase price, but the credit amount is capped or limited at $7,500. For most first-time home buyers, this means the credit will equal $7,500. For home buyers purchasing a home priced less than $75,000, the credit will equal 10% of the purchase price.

Q: What is the definition of a first-time home buyer?
A: The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase.

Q: Are there income limits to determine who is eligible to take the tax credit?
A: Yes. Home buyers who file their taxes as single or head-of-household taxpayers can claim the credit if their modified adjusted gross income (MAGI) is less than $75,000. For married taxpayers filing a joint tax return, the MAGI limit is $150,000. The limit is based on the buyer's modified adjusted gross income for the year that the house is purchased, except for certain purchases in 2009. Partial credits of less than $7,500 are available for some taxpayers whose MAGI exceeds the phase out limits. The credit becomes totally unavailable for individual taxpayers with a modified adjusted gross income of more than $95,000 and for married taxpayers filing joint returns with an AGI of more than $170,000.

Q: I heard that the tax credit is refundable. What does that mean?
A: The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even the entire amount of the refundable tax credit. For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that taxpayer qualified for the $7,500 home buyer tax credit. As a result, the taxpayer would receive a check for $6,500 ($7,500 minus the $1,000 owed).

Q: What is the difference between a tax credit and a tax deduction?
A: A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $7,500 in income taxes and who receives a $7,500 tax credit would owe nothing to the IRS.A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $7,500 in income taxes. If the taxpayer receives a $7,500 deduction, the taxpayer's tax liability would be reduced by $1,125 (15 percent of $7,500), or lowered from $7,500 to $6,375.
Hopefully these points answer many of the questions you have regarding this exciting tax credit. If you think you qualify for this credit or want to find out more about being a homeowner please consult a tax advisor or licensed real estate agent for further information. You can also see more information at the website www.federalhousingtaxcredit.com.

Steve Sloboda is Associate Broker at Windermere Real Estate/Paragon Co. in the University Place office. Steve lives in the Oakbrook neighborhood of Lakewood with his wife Amity, and their two young children. For more information or to contact Steve direct please go to www.stevesloboda.com.

Tips for Buying or Selling Real Estate in 2009

By Steve Sloboda
Special to the Suburban Times
www.thesubtimes.com

My original plan for my first submission this year was to wrap up 2008 and provide a forecast for 2009. After thinking about it I realized that almost everybody is relieved that 2008 is history so let's focus on the future. Most people have been inundated with stats and opinions about the local real estate market. Instead of that let's talk about some helpful tips to get a home sold or to maximize your buying experience. 2009 is shaping up to be an interesting year when it comes to the local real estate market. If you are thinking of selling, have your house on the market, or are thinking about buying a home this year it is imperative to educate yourself about the process.

Spring is widely considered as the best time to market a home for sale. Flowers are blooming, skies are bright, and it seems that people tend to embrace change more readily in the Spring and Summer.

With that said, we are now in an even better time than that to make a move. We are in a time of unprecedented low interest rates. Having your home on the market at a time like this is a great advantage. Low rates benefit buyers and sellers. If you plan to buy another home upon your sale then you'll be both.

Once you decide to make your home available for sale it is important to enlist the services of a trusted real estate agent to work for you. Of course there are other options but A great agent can be a big advantage to you when selling or buying. Before deciding on an agent, ask how many homes they have sold in the past year, ask to speak with some of their past clients, research their online presence, ask to see a comprehensive market analysis, and ask them in detail how they're going to market your home for sale. If buying ask some of those same questions but also make sure that they have a trusted group of professionals to help with the process. A good agent will have many trusted resources that can help with maintenance issues, financial services, or pretty much anything you need along the way. It's very important that you "click" with the agent you choose and to be confident that they truly have your best interests in mind. You are hiring them to protect you throughout the process so a good rapport is vital. I've said it before: A sign in the yard, a keybox, and a listing in the MLS is no longer enough to get a home sold. Pricing and presentation are more important than ever. Buyers have many choices these days so your home must stand out in the crowd to attract a sale.

Lastly, be realistic about your asking price. It's my experience that there are still aren't a lot of "lowball" offers being made around here. Buyers are more educated than ever and are waiting for homes priced too high to come down to fair market value before starting the negotiation process.

Consider the area surrounding you, tour some homes for sale that are similar to yours, and educate yourself about area trends. You can bet that buyers are doing those things so you should too. Be real from the beginning and you'll have a much better experience.

Steve Sloboda is Associate Broker at Windermere Real Estate/Paragon Co. in the University Place office. Steve lives in the Oakbrook neighborhood of Lakewood with his wife Amity, and their two young children. For more information or to contact Steve direct please go to www.stevesloboda.com.

New real estate column

My name is Steve Sloboda. I work with clients all around the service area of this publication and live in Lakewood. I'm Associate Broker with Windermere Real Estate/Paragon Co. in the University Place office.

From this point forward I plan to contribute real estate related stories, statistics, and opinions a couple times per month. As this develops I welcome your feedback, suggestions, and questions. Please feel free to visit my website at www.stevesloboda.com to learn more about my business and to contact me direct.

Now that the introductions are over, let's get to the bones of my first contribution. According to a recent release by Zillow.com, residential real estate average values in our local neighborhoods have dropped over the last year. You probably knew that already. What you didn't know (more than likely) is specifics by town.

The numbers by town are: (1 year change)

• DuPont -7.1%
• Steilacoom -8%
• Fircrest -8.4%
• Lakewood -8.6%
• University Place -8.7%

These numbers seem large but in comparison to the big gains over the last 5 or 6 years, it is really nothing more than a small blip on the long term stat chart. These numbers are still below the United States average of -9.7%.

My take is that we are close to the bottom of declining values for awhile. In our area, recent activity has been increasing and most people I come across (in and out of the real estate industry) seem to be optimistic about local real estate trends in 2009.

If you are considering an investment in residential real estate now is the best time in recent history to take advantage of a rock solid buyer's market. If selling now, or considering selling soon, be patient. Educate yourself and be realistic about current local values as you negotiate your sale.

More will follow in the coming weeks. I look forward to your comments as I contribute to The Suburban Times.

Steve Sloboda is Associate Broker at Windermere Real Estate/Paragon Co. in the University Place office. Steve lives in the Oakbrook neighborhood of Lakewood with his wife Amity, and their two young children. For more information or to contact Steve direct please go to www.stevesloboda.com

Buy a Home Now?

By Steve Sloboda for The Suburban Times

Why Buy a Home Now? Let me share some reasons that make sense:

First, there is no doubt that the local real estate market has adjusted dramatically. This adjustment is very favorable for Buyers. Earlier this year there was still some denial from Sellers (and the real estate industry) that prices were coming down and inventory was increasing. That mindset led to a continuation of higher asking prices. As sellers have lingered on the market their motivation to sell has increased and they have realized that their asking price points have been too high. Now, prices are coming down and qualified Buyers are able to take advantage.

With many choices on the market and very low interest rates, the time is right to make that step. If you have been watching the news lately you might have been worried about where the residential real estate market was headed. The Government seems to be doing all they can to stimulate the Country's housing situation. The new $7500 tax incentive for first time buyers, the potential mortgage buyout, and the loosening of recent credit restrictions are just a few examples. Soon after the New Year most of these packages will be in full swing. Some already are. This will hopefully reverse declining home values and even out the market.

As this year comes to an end and the new year approaches, Buyers are able to maximize their buying power by carefully studying the market, identifying exactly what they want in terms of neighborhood and home amenities, and by working with a knowledgeable real estate agent that will provide information and negotiate terms strategically on their behalf.

My next submission will be a year end review and a list of some interesting neighborhood statistics. I appreciate the wonderful feedback I received from my first submission. Also, thank you to everyone that congratulated me for my recent addition to Seattle Magazine's list of Five Star - Best in Client Satisfaction Real Estate Agents. That was a big honor and I appreciate your well wishes. I look forward to seeing more of your comments as my contributions to The Suburban Times continue.

Steve Sloboda is Associate Broker at Windermere Real Estate/Paragon Co. in the University Place office. Steve lives in the Oakbrook neighborhood of Lakewood with his wife Amity, and their two young children. For more information or to contact Steve direct please go to www.stevesloboda.com.

Maximize equity in your home!

 By Steve Sloboda

 Home equity is the value you own in your home. If you have a mortgage, equity is simply the value of your home (determined by market price) minus the amount you owe. As the value of your home increases or as you pay off your mortgage, your equity grows.

Let's focus on what you can do to raise the value of your home and, therefore, maximize its equity.

A good place to start is in the original home search. Being an informed purchaser can increase potential. Look for homes in "up-and-coming" neighborhoods near or around "hot" or "overvalued" areas. Prices just outside those areas usually catch up fast, allowing you to buy lower and sell higher. Being ahead of the market up front is the first key to gaining equity.

Another way to gain equity is to look for the least desirable house in the most desirable area. You can make cosmetic improvements yourself to increase value and catch up to those surrounding the home. Paint, carpeting, windows, kitchens and bathrooms are the common areas where you can get the most bang for the buck. 

"Sweat equity" is the term used to describe putting your own skills to use in order to gain real dollars toward your home's bottom line. Good, old-fashioned hard work to update an older home or spruce up a forgotten gem can pay off in many ways.

There are also many ways to maximize your home's equity with the strategic use of creative mortgage programs. It is important to consult with a mortgage professional to make sure you are getting the best program available for your desired results. Most mortgage brokers will have quite a few options from which to choose.

When working with a real estate agent, it is to your advantage to communicate your goals so he or she can put together a plan to help you reach your desired results. Working with a team of professionals that you trust will help you become educated and informed throughout the home-buying process.

There are many advantages to having the ability to tap into the equity in your home, some of which are:

• debt consolidation or payoff
• financing a college education
• making home improvements - which can further increase equity in your home
• covering medical expenses or other emergencies
• purchasing big-ticket items (vehicles, vacations, etc.)
• pursuing investment opportunities.

Having equity in your home is a valuable asset. Taking steps to maximize your home equity is a great way to empower your personal financial status.

Steve Sloboda is currently Associate Broker at the University Place, WA office of Windermere Real Estate/Paragon Co.