Central Ohio Real Estate

2011 home sales off to a strong start

Vanessa V. Simmons~Realtor (Real Living HER) — Tue, 22 Mar 2011 10:40:28 -0700

(March 22, 2011) Home sales for the first two months of the year are just 1.1 percent behind the same period last year

suggesting a strong start for the central Ohio housing market according to the Columbus Board of REALTORS® (CBR).

There were 2,178 homes closed in January and February compared to the 2,202 closings during the first two months of 2010.

February home sales dipped slightly to 1,128, just 1.3 percent less than the 1,143 homes sold during the same month one year

ago.

"Why are we pleased at the small decrease in sales this year" asks Rick Benjamin, CBR President? "At this time last year, the

first-time home buyer tax credits were significantly impacting our sales volume. To remain at nearly the same level without that

incentive is a positive sign of a strengthening market."

"Additionally, there were 1,812 residential homes put in contract in February which is 18.7 percent more than February of 2010

(1,527). This also bodes well for March closing activity."

Franklin County saw 658 homes sell last month and 1,637 more listed for sale, while 137 homes sold and 302 homes were listed

in Delaware County.

The City of Columbus topped the charts with 423 sales and 1,023 new listings. Other cities which saw higher sales and listing

activity include Dublin, Hilliard, Westerville, Gahanna and Pickerington.

School districts experiencing higher sales and listing volume in February included Columbus, South-Western, Olentangy, Hilliard,

Westerville, and Dublin.

"Although, the actual numbers of sales and listings for these districts were higher, we're fortunate to have many strong school

districts in central Ohio, several of which showed larger activity gains when compared to last year," adds Benjamin. "Every area is

different so it pays to ask a REALTOR® to help you interpret the data."

Click here to view the February housing market report.

Realtybid.com provides Reality Check

Vanessa V. Simmons~Realtor (Real Living HER) — Wed, 02 Feb 2011 10:29:07 -0800

I have been looking with my buyers for a few weeks. A few days ago I ran across a new listing that seemed to offer everything that they are looking for. The property was being offered by a Fannie Mae Homepath agent that I closed two transactions with last year. I knew my people would be very excited about this home. As I looked further I noticed that the A2A remarks stated that all offers on this property had to go through www.Realtybid.com

My clients loved the house. As I looked into placing the bid I realized a few alarming facts...

•1. Right off the bat a 5% premium would be added to my clients offer and thus the final bid amount. It was called an "Internet Transaction Fee" $2000 or 5% of the purchase price whichever was greater.

•2. Although my clients planned to finance the property the purchases would notbe contingent on financing and if the financing falls through the 5% or $2000.00 would not be returned and would be used to cover damages.

•3. The seller would not assist with any closing costs

•4. Buyer agent Commission would be 1%

I am amazed that Fannie Mae would deal with a company that clearly does not have the best interest of the consumer in mind. The premium is clearly a profit source that does not serve to benefit the consumer in any way. As agents we need to make sure that we are making our clients aware of sites like this and the potential for them to lose their hard earned money. This is especially relevent since I have read that several lenders are planning to offer their REO properties though this site or sites like this one.

HAFA Welcomed Changes

Vanessa V. Simmons~Realtor (Real Living HER) — Tue, 18 Jan 2011 09:54:26 -0800

After 10 months of operations the well intended HAFA (Home Affordable Foreclosure Alternatives) program designed to help with foreclosure alternatives including short sales, has qualified less than 700 short sales. A far cry from the success many expected from this agency. Finally the Treasury Department has decided to loosen the requirements to try to qualify more families in need of the short sale option. The new guidelines go into effect Some of the highlights include:

The subject property must either be owner occupied, OR it can be vacant for up to 12 months preceding the date of the HAFA Short Sale Agreement if the sellers can provide documentation that the property was their primary residence prior to moving out. This is huge. There was always confusion before about sellersoccupying the home, vs. not occupying the home. Some loan servicers (aka, short sale lenders) argued that the home absolutely had to be currently occupied by the seller. There are often circumstances that forced homeowners to leave the house. Sometimes they leave so that they can secure new housing in the same school district so that they do not have to move their kids to a different district. Relocation for new jobs or to care for sick relatives are common reasons owners move out as well. Fortunatelly with the new rules, as long as a seller can prove they did live in the house during the previous 12 months, they will still qualify for a HAFA short sale (where they may have been rejected before). Proof could be a copy of a utility bill, for example. Unfortunately, investment property still does not qualify for a HAFA short sale - though it will potentially qualify for a non-HAFA short sale.

Loan Servicers will no longer be restricted as much when paying off second mortgage holders. Many of believed that the cap was 3% as told to us time and time again by short sale lenders. As it turns out the cap was actually 6% and now has been lifted so that a maximum of $6000 dollars can be paid to satisfy a subordinate loan. (Could make all the difference with second mortgages.)

Loan Servicers will have 30 days to send a borrower a HAFA short sale includes the list price or the acceptable net proceeds amount from a sale. Furthermore, once a purchase contract has been accepted by the sellers and submitted to the loan servicer for final approval, the loan servicer then have 30 days to approve or reject the transaction. Under the current guidelines there is no imposed timeframe on the loan servicer. (This is the Best News!)

Loan Servicers may not deduct third party vendor expenses from commissions paid to real estate brokers, nor may they charge sellers. In addition, agents negotiating HAFA short sales may not charge the seller or other parties to the transaction a third party negotiating fee. This is great! Occasionally loan servicers will retain third parties to process paperwork in connection with short sales, and charge an additional fee that is either deducted from the agent commissions or paid by the seller - so now that is not allowed. Also, some short sale listing agents (NOT ME, by the way) hire separate negotiators and pass that cost along to the seller...they are no longer allowed to do that in connection with a HAFA short sale. (Great News!)

For more details on the new guidelines click HERE

As you can see there are big changes coming for 2/1/2011 and if all goes well we should be able to work short sales more efficiently and effectively. If you or someone you know has questions or need help with a short sale please email me at vanessa.simmons@realliving.com or call me at 614-273-6406.

Important FHA Condo Update

Vanessa V. Simmons~Realtor (Real Living HER) — Wed, 08 Dec 2010 12:30:42 -0800

All condominiums starting December 7, 2011 financed with FHA loans will need to be re-certified for FHA lending. The time frame for recertifications are approximately 4-6 weeks according to what HUD has stated.

The following documentation is required for FHA Reviews on "Established" Condo Project:

Fully completed and executed Condominium Project Certification. Lender's form.
Condominium project Budget and Financial Statements (Profit & Loss and Balance Sheet)
Management Contract, if agent managed
HOA Master Insurance Policy (Hazard, Liability, Fidelity and Flood)
FEMA Flood Map (HMG Condo Group will obtain)
Condominium project Recorded Legal Documents: Declaration/Master Deed and By-Laws, Amendments, Plat Map and Site Plans, Articles of Incorporation of HOA, and if available Rules & Regulations.
Attorney's Opinion is required if the legal documents contain "Right of First Refusal"
FHA Concentration Limit (Will be determined by FHA)

The bottom line is when a contract for condos is written and the buyer is financing with FHA, we must allow enough time in the contract to allow for the recertification.

We will have to wait and see how this all plays out. Sometimes the items needed are difficult to obtain and some management companies charge a fee to release these which is passed on to the buyer.

This has been quite a year of challenges and changes with FHA but I will do my best to keep you informed on the updates. If you are looking to buy or sell real estate in Central Ohio please give me a call at 614-273-6406 or email me at vanessa.simmons@realliving.com.

Finding Your Perfect Home

Vanessa V. Simmons~Realtor (Real Living HER) — Thu, 18 Nov 2010 10:33:20 -0800

As the old saying goes, real estate is all about location, location, location. But, there is a lot more to it than just plain geography when it comes to finding your perfect home. There are a lot of things to consider during the search because, for most, a home is the most significant purchase they will ever make.

Choose A Good Area

When searching for your perfect home, the obvious place to start is with the selection of a location. If you have children, you may want to choose a home that is close to good schools and is also located in a family-oriented neighborhood. Many people also look for a home that offers a short commute to and from work. If you are shopping within a specific price range, you can also narrow the choices by finding an area that offers the best value for your dollar.

Select A Style

The perfect home for you is one that has all of the elements that you want. Whether it's a garage, basement, extra bedroom or bath, a large kitchen, fireplace or open floor plan, choosing the style of home that you want is an important first step in finding the perfect place to hang your hat. You may also want to consider whether you prefer a single-level or two-story home. Many home buyers also factor in floor plans when searching for a house, including those that offer an open and flowing design.

Get Pre-Qualified

Now that you know what you want and where you want it, it's important to find out how much of a home you can afford. Pre-qualification is not the same as pre-approval. With pre-qualification, your lender will request specific information relating to your income and expenditures and will offer a possible price range for you to keep in mind while shopping. Pre-qualification does not guarantee that you will receive an approval, but it does give you a good indication of how much you can afford based on your current situation.

Talk To A REALTOR®

Nobody knows the real estate business like a REALTOR®, so let them help you in your search for the perfect home. They can answer questions relating to the neighborhood, recent inspections on a particular home and any needed repairs. Because a REALTOR® has access to a number of area homes, they have the ability to show you various choices within your preferred area and price range.

Ask About Amenities

One of the most significant concerns of any home buyer is what a home has to offer. Utilities, such as water, sewer, cable, phone and electricity are just a few of the things to consider. If the home is in a subdivision that requires the payment of association dues, how will these funds be used? What amenities does the home owner's association offer? These are all questions to ask your REALTOR® when shopping for the perfect home.

In conclusion, you should know that the search for your perfect home is a journey. It may be either long or short and with or without some bumps along the way, but the greatest satisfaction will be at the journey's end and your future's beginning.

When you are ready to find that perfect home give me a call. I take great pride in finding the very best home for your budget. Call me at (614) 273-6406 or email me at www.vanessa.simmons@realliving.com.

Buying A Home With Bad Credit

Vanessa V. Simmons~Realtor (Real Living HER) — Thu, 11 Nov 2010 22:47:04 -0800

When it comes to buying a home, having bad credit is not the end of the world. Your future doesn't have to be defined by your past. Whether you have suffered from a bankruptcy, foreclosure or some type of financial hardship that resulted in late or missed payments, there are lenders who specialize in financing for those with less-than-perfect credit. You will likely have to produce a larger down payment and/or pay higher interest rates than someone who has good credit, but the important thing to know is that buying a home is an option for you.

Bankruptcy & Foreclosure

If either a bankruptcy or foreclosure is on your credit report, it could take some time before you can qualify for a good interest rate on a mortgage. FHA loans, which are especially desirable for those with past credit problems and first-time home buyers, are backed by the government and offer a low down payment and interest rate option for those who qualify. Although the notation remains for up to 10 years, individuals with a bankruptcy or foreclosure on their credit report may qualify for an FHA loan after two years. Some mortgage lenders may approve a loan sooner, but the interest rates will be higher and the required down payment may be as much as 35 percent of the purchase price of the home.

Cleaning Up Your Credit

Even if you have bad credit, it's important to check your credit report from each of the three major credit reporting agencies - TransUnion, Equifax and Experian - before applying for a loan. If anything is inaccurate, file a dispute with the reporting agency and request a correction. You can request a free copy of your credit report every 12 months.

In addition to correcting any inaccuracies on your credit report, it's important that you know what can help or hurt your chances of obtaining a loan. You can start improving your credit by avoiding the temptation to apply for new credit right before submitting a mortgage application. Multiple inquiries will cause your FICO score to drop, and lenders will rely on this information when deciding whether or not to issue your loan and how to calculate your interest rates. With past credit problems, most lenders will want to see that you have rebuilt your credit history with 1-3 major credit cards and timely payments over a two-year period.

Money Matters

When it comes to obtaining a home loan, a healthy bottom line will help the lender to see you as being creditworthy. It's important that you have sufficient income, along with the ability to prove steady employment for at least one year (longer is better) preceding your loan application. Most lenders will request a copy of your tax returns for the two most recent years, along with current pay stubs. If you have money for a down payment, this will also work in your favor.

Creative Financing

In some cases, a conventional mortgage loan may not be available no matter how hard you try. Owner financing is one way that individuals, who may not otherwise qualify for a traditional mortgage loan, can purchase a home. This type of financing is offered by the owner and may include interest rates comparable to other loans, flexible down payment options and no credit check. I can assist you in finding homes that offer alternative financing options.

Call me Vanessa V. Simmons at 614-273-6406 or email me at Vanessa.simmons@realliving.com.

Home Values Continue To Rise

Vanessa V. Simmons~Realtor (Real Living HER) — Mon, 25 Oct 2010 15:19:51 -0700

Home values continue to rise which is good news for central Ohio. The average sale price for the first nine

months of the year is $161,204 up 7.4 percent from the beginning of 2010 according to the Columbus Board

of REALTORS®.

There were fewer homes listed for sale last month than is customary for September. Over the last five years,

there was an average of 3,710 homes added to the market during the month of September. However, last

month only 2,997 residential homes were added to the already elevated inventory in central Ohio.

Although slightly lower than August, the total residential listings in September (16,728) was still higher than

it's been since August of 2008 when the inventory level rose to 16,975.

"Inventory levels had come down over the last year and a half - which is what we were working towards," said

Sue Lusk-Gleich, President of the Columbus Board of REALTORS®. "When inventory levels are too high, the

increased competition forces some homeowners to sell at prices that are too low which in turn often affects

the values of other neighboring homes."

"In order to re-balance the market, we either need the inventory to decrease or the number of buyers to increase.

And since the tax credit incentives brought many buyers into the market earlier than we would have seen

otherwise, we have a smaller pool of potential home buyers to absorb the inventory now."

Home sales were down 28.4 percent in September and the number of homes that went into contract was also down

almost 25 percent which doesn't bode went for October home sales.

"When comparing sales figures to the previous year, we need to remember that home sales have been elevated

since April of 2008 due to the tax credits," adds Lusk-Gleich. "Even so, sales are still up four percent year to date."

If you ar looking to take advantage of this exceptional market please call Vanessa V. Simmons at 614-273-6406 or email me at vanessa.simmons@reallving.com

FHA CHANGE OCT 4TH 2010!!!

Vanessa V. Simmons~Realtor (Real Living HER) — Sun, 19 Sep 2010 15:00:27 -0700

If you are a buyer considering a purchase with FHA financing, it may be to your advantage to act sooner rather than later

On September 1^st, FHA officially posted the mortgagee letter describing changes to the FHA MIP program. Effective for FHA loans for which the case number is assigned on or after October 4, 2010, FHA will lower its upfront mortgage insurance premium simultaneously with an increase to the annual premium which is collected on a monthly basis. This policy change will decrease upfront premiums for purchase money and refinance transactions, including FHA-to-FHA credit-qualifying and non-credit qualifying streamlined refinance transactions.

The new Up front premium is 1.00%, reduced from 2.25%

Although the up front premium has been reduced, the monthly premium has increased significantly.

The new annual premium is .85% for LTVs less than or equal to 95% & .90 for LTV higher than 95%.

There is no change to the upfront premium for 15 year term with LTV less than 90%. The annual premium for that term with an LTV higher than 90% is .25.

Overall this will represent a payment increase for FHA borrowers obtaining case numbers on or after 10/4/2010.

One More Reason to Buy today Without Delay!!

Fewer Homes Pushed into Foreclosure

Vanessa V. Simmons~Realtor (Real Living HER) — Fri, 17 Sep 2010 08:26:44 -0700

By Alejandro Lazo

RISMEDIA, September 17, 2010--(MCT)--Big banks pushed fewer U.S. households into foreclosure for the seventh consecutive month in August, a real estate firm reported, though repossessions of properties already ensnared in the process hit a record.

The continued convergence of the two trends - fewer notices of default filed on homes but more properties sold at courthouse steps - indicates that major lenders are meting out foreclosures in a systematic way so as not to flood the housing market with a wave of steeply discounted properties, RealtyTrac said.

RealtyTrac Chief Executive James J. Saccacio called the trends "a clear indication that the clogged foreclosure pipeline is being carefully managed on both ends by lenders and servicers."

A total of 94,469 properties received default notices in August, a 1 percent decrease from July and a 30 percent decrease from August 2009. On the other end of the process, lenders seized 95,364 properties in August, the highest monthly total in the history of RealtyTrac's report, an increase of 3 percent from July and a 25 percent jump from August 2009.

Lenders are working through a backlog of properties that developed last year after many foreclosures were frozen by moratoriums and slowed by trial mortgage modification attempts.

(c) 2010, Los Angeles Times.
Distributed by McClatchy-Tribune Information Services.

Reprinted with permission from RISMedia, the leader in real estate information and real estate news. Copyright 2010. All Rights Reserved

6 Reasons it Pays to Shop Around Before Choosing a Mortgage

Vanessa V. Simmons~Realtor (Real Living HER) — Thu, 26 Aug 2010 09:23:53 -0700

By Paige Tepping

RISMEDIA, August 26, 2010--You wouldn't buy a house without shopping around first, right? Then why would you commit to the loan you use to buy that house without making sure you're getting the best deal possible? From the experts at LendingTree, here are six reasons why it's essential to take a few minutes to browse before you borrow:

1. To get the best interest rate possible
Over the life of a $200,000, 30-year fixed rate loan, a one-tenth of a point difference in interest rate could save or cost you thousands of dollars.

2. To pay lower loan fees
Once your loan application is accepted, the lender will get back to you with a good-faith estimate (GFE), including an itemized list of all the costs associated with the loan. If there are any parts of the GFE that you don't understand, don't be afraid to ask the lender to explain each fee that is listed.

3. To avoid a prepayment penalty
In these transient times, it seems no one stays in their home long enough to pay down their mortgage the old fashioned way: in monthly increments over a period of decades. So you'll want to be clear on whether the terms of your loan include a penalty if you pay off your mortgage early-either because you move or refinance.

4. To find a lender you feel comfortable with
You don't want any surprises popping up at closing time. Get a lender who is responsive to your questions and is willing to give you the details in writing.

5. To find a lender that specializes in your situation
Recent volatility in the mortgage markets means that people with bad credit or little money for a down payment might have to look a little harder to find a lender.

6. To get the rate lock period you want
Once you've found the lender offering the best mortgage rate and terms, you'll want to get a written commitment, known as a "lock" that puts in writing that the lender will make the loan to you at that the specified interest rate. The length of the lock can vary from 30-90 days, but many lenders will charge a fee for a rate commitment of longer than a month. Negotiate the lock period that is right for you, depending on when you plan to close on your new home and if interest rates are expected to creep higher during that time.

House rich

Vanessa V. Simmons~Realtor (Real Living HER) — Fri, 20 Aug 2010 08:11:38 -0700

Commentary: Why your best investment is a foreclosed home

By Michael Murphy

BOULDER, Colo. (MarketWatch) -- The recession is "officially" over according to GDP figures. Stocks are up 50% from the March 2009 bottom. Gold and silver are up dramatically, too. So what's the only remaining asset class that's still cheap?

Real estate.

Sure, in most parts of the country the market is still in the toilet. July marked the 17th straight month foreclosures exceeded 300,000, and the number of homeowners who lost their homes rose again on the month. But real estate is always a local market and different cities, neighborhoods and individual houses will bottom at different times. And now is that time for many areas.

Most of you will think I am way early on this recommendation, but here are three great advantages to buying today:

Desperate sellers. Not the homeowners, of course. They already know they'ree toast. It's the banks that financed the mortgages that are desperate. Everyone in the workout department has stacks of folders on their desks, their credenza, the floor -- everywhere -- all needing attention yesterday. That gives the few buyers out there big leverage.
Little competition. Most people don't have the patience and energy to push through a pre-foreclosure, short sale offer or a post-foreclosure real estate owned (REO) offer. Most real estate agents don't want to work that hard to get a deal done. But as with many things, those investors willing to be patient and do the work will reap big rewards down the road.
Low financing rates. If you believe major inflation is coming -- and I most certainly do -- getting 4-to-1 to 32-to-1 leverage at a low fixed rate of interest is like having someone give you money. As of this writing, rates for 30-year fixed mortgages are an incredible 4.5%. That's the lowest in 39 years, and a new bottom seems to be set each week.These trends point to a bottom. And if they're not enticing enough, remember that you can make $500,000 tax-free in as little as two years by buying and living in a short sale or REO home -- while either renting out your current home or simply changing your primary residence on the tax rolls. Then you sell the foreclosure and move back into your current place with a hefty payday.

With the summer winding down and Labor Day around the corner, now is the time to seriously consider making a low-ball bid on a distressed situation. Real estate is seasonal, and after September the buyers will be even scarcer as cold weather and the start of the school year slows down house hunters.

There are risks, of course, and not all houses make good investments. So how do you make the best buy?

A short sale is usually the most attractive way to buy distressed property, but also requires the most patience dealing with the hapless pre-foreclosure department at the lender. Before the actual foreclosure, you make an offer to buy the property for less than the mortgage loan. Most homeowners are eager for this because it is less of a hit to their credit report, and typically when things get so near to foreclosure there is no way for them to stay put anymore anyway.

If they need some enticing, you can offer to pay their moving expenses or even buy some of their personal property such as appliances or the lawn mower on the condition they don't trash the place before you move in. Start by researching the original sale price to the owners. Troubled loan departments at Bank of America Corp. (NYSE:BAC) , which took over Countrywide, or J.P. Morgan Chase Co. (NYSE:JPM) , which sucked up Washington Mutual, will usually take an offer equal to 80% of the loan without any argument.

Obviously, if you are looking at a property where the borrowers paid top dollar at the peak of the market and got a 100% loan, you might have to offer as low as 20% to 30% of the original mortgage to get a good deal. You should always start with a lowball offer and make them come back to you with a counteroffer, but the bigger loss the bank is faced with, the less eager they will be to avoid a foreclosure auction.

Second, get permission from the current borrowers to contact the bank's short sale department directly. The major banks' short sale people obviously were hired off the street for $10 an hour just to deal with the flood of paper, and most of them sound like they are 22 years old and still live with their parents. They have little or no knowledge about real estate, so be patient and realize that this inexperience will ultimately allow you to get a great deal.

Third, make sure you know the exact foreclosure date. The short sale people do not talk to the foreclosure people, who are something like an army of locusts mindlessly marching through a wheat field. Most likely, about three days before the foreclosure sale, the short sale people will panic and accept your low bid. If not, the foreclosed property will be handed over to the Real Estate Owned department and listed with a realtor, where you can make your offer again.

Of course, there are many other considerations that are typical to buying any home -- getting an inspection from a contractor, checking legal and insurance information, and not falling in love with a property just because of the price tag.

Investing in a short sale or REO home right now is certainly not easy, but the incentive of $500,000 tax free makes the move worth it for many. That figure comes from the husband and wife exclusion for the tax on the capital gain of a primary residence in which they have lived at least two of the prior five years

To make the full $500,000, you'll have to buy something nicer than a $150,000 house on a suburban lot, and get a heck of a deal. But it's not impossible. I have noticed that some good-sized houses on golf courses have gone into foreclosure, with the last transaction price maybe $800,000 and a $640,000 mortgage. If you buy that for 35% off, you pay $416,000. When inflation takes off, you sell it for $975,000, take your half a million tax-free and go home after two years.

Not a bad deal.

Michael Murphy is the editor of the New World Investor stock newsletter. 7:55 AM EDT August 20, 2010

5 Tips for Buying a Foreclosure

Vanessa V. Simmons~Realtor (Real Living HER) — Wed, 18 Aug 2010 15:04:26 -0700

5 Tips for Buying a Foreclosure

Article From BuyAndSell.HouseLogic.com

By: G. M. Filisko
Published: March 29, 2010

Get prequalified for a loan and set aside funds, and you'll be ready to purchase a foreclosed home.

When lenders take over a home through foreclosure, they want to sell it as quickly as possible. Since lenders aren't in the real estate business, they turn to real estate brokers for help marketing their properties. Buying a foreclosed home through the multiple listing service can be a bargain, but it can also be a problem-filled process. Here are five tips to help you buy smart.

1. Choose a foreclosure sale expert. Lenders rarely sell their own foreclosures directly to consumers. They list them with real estate brokers. You can work with a real estate agent who sells foreclosed homes for lenders, or have a buyer's agent find foreclosure properties for you. To locate a foreclosure sales specialist, call local brokers and ask if they are the listing agent for any banks.

Either way, ask the real estate professional which lenders' homes they've sold, how many buyers they've represented in a foreclosed property purchase, how many of those sales they closed last year, and who they legally represent.

If the agent represents the lender, don't reveal anything to her that you don't want the lender to know, like whether you're willing to spend more than you offer for a house.

2. Be ready for complications. In some states, the former owner of a foreclosed home can challenge the foreclosure in court, even after you've closed the sale. Ask your agent to recommend a real estate attorney who has negotiated with lenders selling foreclosed homes and has defended legal challenges to foreclosures.

Have your attorney explain your state's foreclosure process and your risks in purchasing a foreclosed home. Set aside as much as $5,000 to cover potential legal fees.

3. Work with your agent to set a price. Ask your real estate agent to show you closed sales of comparable homes, which you can use to set your price. Start with an amount well under market value because the lender may be in a hurry to get rid of the home.

4. Get your financing in order. Many mortgage market players, such as Fannie Mae, require buyers to submit financing preapproval letters with a purchase offer. They'll also reject all contingencies. Since most foreclosed homes are vacant, closings can be quick. Make sure you have the cash you'll need to close your purchase.

5. Expect an as-is sale. Most homeowners stopped maintaining their home long before they could no longer make mortgage payments. Be sure to have enough money left after the sale to make at least minor, and sometimes substantive, repairs.

Although lenders may do minor cosmetic repairs to make foreclosed homes more marketable, they won't give you credits for repair costs (or make additional repairs) because they've already factored the property's condition into their asking price.

Lenders will also require that you purchase the home "as is," which means in its current condition. Protect yourself by ordering a home inspection to uncover the true condition of the property, getting a pest inspection, and purchasing a home warranty.

Be sure you also do all the environmental testing that's common to your region to find hazards such as radon, mold, lead-based paint, or underground storage tanks.

Reprinted from HouseLogic with the permission of the NAR

FHA Launches Short Refi Opportunity for Underwater Homeowners

Vanessa V. Simmons~Realtor (Real Living HER) — Mon, 09 Aug 2010 09:57:41 -0700

RISMEDIA, August 9, 2010--In an effort to help responsible homeowners who owe more on their mortgage than the value of their property, the U.S. Department of Housing and Urban Development provided details on the adjustment to its refinance program which was announced earlier this year that will enable lenders to provide additional refinancing options to homeowners who owe more than their home is worth. Starting September 7, 2010, the Federal Housing Administration (FHA) will offer certain ‘underwater' non-FHA borrowers who are current on their existing mortgage and whose lenders agree to write off at least ten percent of the unpaid principal balance of the first mortgage, the opportunity to qualify for a new FHA-insured mortgage.

The FHA Short Refinance option is targeted to help people who owe more on their mortgage than their home is worth - or ‘underwater' - because their local markets saw large declines in home values. Originally announced in March, these changes and other programs that have been put in place will help the Administration meet its goal of stabilizing housing markets by offering a second chance to up to 3 to 4 million struggling homeowners through the end of 2012.

"We're throwing a life line out to those families who are current on their mortgage and are experiencing financial hardships because property values in their community have declined," said FHA Commissioner David H. Stevens. "This is another tool to help overcome the negative equity problem facing many responsible homeowners who are looking to refinance into a safer, more secure mortgage product."

FHA published a mortgagee letter to provide guidance to lenders on how to implement this new enhancement. Participation in FHA's refinance program is voluntary and requires the consent of all lien holders. To be eligible for a new loan, the homeowner must owe more on their mortgage than their home is worth and be current on their existing mortgage. The homeowner must qualify for the new loan under standard FHA underwriting requirements and have a credit score equal to or greater than 500. The property must be the homeowner's primary residence. And the borrower's existing first lien holder must agree to write off at least 10% of their unpaid principal balance, bringing that borrower's combined loan-to-value ratio to no greater than 115%.

In addition, the existing loan to be refinanced must not be an FHA-insured loan, and the refinanced FHA-insured first mortgage must have a loan-to-value ratio of no more than 97.75 percent. Interested homeowners should contact their lenders to determine if they are eligible and whether the lender agrees the write down a portion of the unpaid principal.

To facilitate the refinancing of new FHA-insured loans under this program, the U.S. Department of Treasury will provide incentives to existing second lien holders who agree to full or partial extinguishment of the liens. To be eligible, servicers must execute a Servicer Participation Agreement (SPA) with Fannie Mae, in its capacity as financial agent for the United States, on or before October 3, 2010.

DIY Painting 101

Vanessa V. Simmons~Realtor (Real Living HER) — Tue, 20 Jul 2010 12:47:20 -0700

By Stephanie Andre

Looking to spruce up your home, but don't know where to start?

From molding to choice of color, there's a lot to consider before dipping your brush in the paint. Does a room really look smaller with a darker color on the walls? Should your ceilings be white? Do you want to add an accent wall?

Here are some tips on getting started:

Getting Started

· Size up your room. How you use color depends on where you use color. Each room has its own unique elements and function. First think about the structure of the room. Consider its shape and size. A lighter color can make a small room feel more spacious, while a darker color can help an immense room seem cozier.

· Take into account any architectural details, such as molding, trim, columns, and brackets. What's attractive and what's not? Varied intensities and hues can complement architecture, furnishings, and art. Remember, paint can accentuate a room's features or hide them.

· Your choice of color also depends largely on function. Will the main purpose of the room be eating, sleeping, working, entertaining, or something else entirely? A warm hue in the living room gives a more comfortable and inviting atmosphere for guests than a cooler color.

Selecting Interior Paint

· Before choosing your paint, think about where your room fits into the scheme of things. Where is it situated in relation to other rooms? Is it a high- or low-traffic area? Flat paint, for instance, is best suited for ceilings, walls, surface imperfections, and anywhere else that a muted low-reflecting surface is desired. Because it takes more effort to remove stains from this type of paint, a flat finish is best suited for the low-traffic areas of your home.

· Use low-luster, satin, and eggshell paint on areas where a sheen is desired. These paints are easier to clean than flat paint and hold up better under repeated washings. They withstand the wear and tear of high-traffic areas-hallways, woodwork, kitchens, baths, children's rooms, and playrooms-more easily than other finishes.

· Semigloss and high-gloss paint and enamel are best suited for banisters, railings, shelves, kitchen cabinets, furniture, doorjambs, windowsills, and any other surface you wish to accentuate. But be careful-the higher the gloss, the more it emphasizes any surface imperfections.

Choosing a Palette

· Having trouble deciding on your paint palette? Choose a design direction. If you've already chosen an interior décor or if you're working with a room that's already furnished, focus on a favorite fabric color, piece of art or furniture, or other object. If you still can't settle on a color you like, we offer free computerized paint matching and custom color mixing.

· Have color confidence-don't be afraid to paint bold and bright. If your room is unfurnished, a vibrant color can fill it until you can.

· Consider yourself above all. Paint color should reflect your mood and personality. What are your favorite colors? If you're having trouble selecting a color, try looking in your closet. The colors you enjoy wearing are the ones that make you feel good. You are the one who has to live with the color so live with the shades you love.

Making Your Purchase

· Water versus oil. When selecting an interior finish, try choosing a water-based enamel instead of an oil-based gloss paint. Water-based gloss enamels have less odor than conventional oil-based paints. They are much easier to clean up after, and they wear better over time.

· Don't purchase low-quality paint. High-quality paint performs better for a longer period of time. It's less prone to yellow as it ages, goes on smoother, and won't leave brush marks. It is also easier to wash and dirt resistant.

• Purchase test quarts to review your color and finish selections at home. Paint a piece of scrap material such as cardboard, or even a portion of your wall, to study the effects of various light conditions.

Central Ohio Home sales this year now exceed 2009 by 24 percent

Vanessa V. Simmons~Realtor (Real Living HER) — Sun, 27 Jun 2010 12:54:55 -0700

May closings maintain frenzied pace

Home sales this year now exceed 2009 by 24 percent

Central Ohio home closings in May significantly outpaced the previous month as well as the previous year. The number of home

sales last month (2,401) were up 27 percent over April of this year and were 32.7 percent higher than homes closed in May of 2009.

"Although many believed that home sales activity would slow after the April 30 deadline for the home buyer tax credits," said Sue

Lusk-Gleich, President of the Columbus Board of REALTORS®. "However, home sales didn't just keep pace but far exceeded the

previous few months. That speaks volumes for the level of interest and confidence home buyers have in our central Ohio housing

market."

The average sale price of $166,156 in May dipped slightly from the previous year but was up almost five percent over the previous

month. The average sale price for the first five months of the year stands at $156,452, fully five percent over the $148,956 average

sale price for the first five months of 2009.

March home sales up 54 percent

Vanessa V. Simmons~Realtor (Real Living HER) — Fri, 23 Apr 2010 06:39:39 -0700

March home sales up 54 percent

Numbers of home sales and new listings both on the increase

There were 1,704 central Ohio homes sold during March of 2010. This is 54.1 percent higher than the previous month and 25.3

percent higher than March of 2009. First quarter saw 3,873 homes sell in central Ohio which is 12.5 percent more than home sales

during January through March of 2009, according to the Columbus Board of REALTORS®.

There were 4,949 residential homes put on the market last month - a 44.3 percent increase over new listings the previous month and

32.8 percent higher than homes listed in March of 2009.

"The central Ohio housing market is on fire right now," exclaims Sue Lusk-Gleich, President of the Columbus Board of REALTORS®.

"There's no question the home buyer tax credits have a lot to do with our market activity. But the significant increase in listings as

well as rising sale prices are clear evidence that our local market is regaining its strength."

After April 30th..................What Next?

Vanessa V. Simmons~Realtor (Real Living HER) — Sun, 14 Mar 2010 11:18:53 -0700

It seems that most agents are quite busy trying to help as many folks as possible find and sell homes prior to the April 30th deadline. Here in the Columbus area it has been a wild and crazy ride with multiple offers, price increases and vanishing inventory. It has been quite awhile since many of us have worked with such motivated buyers and sellers. All of this leads us to the quiet worry of "What Happens Next?

Will our buyers and sellers continue to operate with such a great sense of urgency? Will real estate settle back to a slow crawl. I'm not really sure that anyone has all the answers. However, what I do know is that real estate will continue to be one of the greatest ways to build personal wealth. I know that people will continue to need to buy and sell their homes. So "What is Next?.... We as Realtors® will continue to work hard on behalf of our clients and to help our buyers and sellers with all of their real estate needs...

Thinking of buying or selling Central Ohio Real Estate today or in the future call me at 614-273-6406 or email me at vanessa.simmons@realliving.com

"Want to Save Money...Lose Your Agent"

Vanessa V. Simmons~Realtor (Real Living HER) — Fri, 26 Feb 2010 22:25:49 -0800

So your Realtor® has taken you to meet a builder and after a long seemingly endless search you have finally found your "Dream House."

Later as you ponder your good fortune you receive an unexpected call from the builder with more ‘good news.' He tells you that you can save yourself 3% if you ditch your agent and work directly though him. Wow, no brainer you think. You even mange to convince yourself that if your agent really cared about your well being they will be happy to see you save money. Heck even if they are not happy, these are tough economic times and savings are savings.

Needless to say your agent will not be thrilled with this news for several reasons:

•1. It violates the trust the agent displayed by bring a potential customer to this builder

•2. This situation leaves the client without representation

•3. It reduces the value add service agents provide to only 3% of which most skilled agents would have gotten for their clients anyway oftentimes even more than 3%

As a buyer if you find yourself in this situation there are a couple of key things you should keep in mind:

•1. The building process spans months. During the process there are always issues that arise. An experienced agent can not only successfully guide you through the difficult times quite often they are in there fighting to make sure things are going smoothly and you are satisfied.

•2. If the builder is so unethical that he would to something like this to an agent that brings potential business to him what makes you think that he wouldn't hesitate to be unethical in his dealings with you?

In a recent new build transaction I was able to get my clients 5 ½% off the list price and a 42" flat screen TV.

If you are ready to buy or sell Central Ohio Real Estate give me a call at 614-273-6406 or email me at Vanessa.simmons@realliving.com

2009 Ohio Home Purchases

Vanessa V. Simmons~Realtor (Real Living HER) — Tue, 09 Feb 2010 15:17:13 -0800

Although 2009 was another challenging year for Ohio Real Estate it shaped up to be slightly better than 2008. The first time home buyers tax credit helped many central Ohioans realize their dreams of home ownership. Below is a quick snapshot that tells us a little about the typical 2009 central Ohio home buyer.

47% Were First Time Home Buyers
Median household income for first time buyers was $62,800
Median household income for repeat buyers was $89,700
20% of the buyers were single females
10% were single males
Median age of First time buyer was 28 years
Median age of repeat buyers was 45 years
Typical Home buyer searched for 10 weeks and looked at 14 homes
83% Purchase Single Family Detached Homes
Typical Square Footage of Home was 1800 sq. ft.
59% Said that First time Tax Credit was a Factor in Purchase
81% of Buyers used a Real Estate Agent to purchase their home
The median purchase price for a central Ohio home was $165,000 compared to $185,000 nationwide.

With the extension and expansion of the first time home buyers tax credit there continues to be optimism that 2010 will be a better real estate year. If you are ready to explore your real estate options please give me a call at 614-273-6406 or email me at Vanessa.simmons@realliving.com.

Central Ohio Real Estate Agent or REALTOR®?

Vanessa V. Simmons~Realtor (Real Living HER) — Tue, 26 Jan 2010 16:01:19 -0800

Looking for a Central Ohio real estate can be a daunting process. That's why most of us will choose to get a real estate professional to guide us on this journey. Picking the right person is important when you're looking to get a great deal on a home, so you need to know what to look for.

There is some confusion about the difference between a real estate agent and a REALTOR®. A REALTOR® can be any real estate professional who is a member of the National Association of REALTORS® (NAR). Each member has to follow a strictly enforced code of ethics.

The seventeen part code of ethics details the Standards of Practice that each REALTOR® must follow. These include:

•· Promising to put the interests of all parties before their own, by honestly representing all material facts.

•· Promising to work with other agents or brokers, if it's in the best interests of their client.

•· Promising to tell if they or any family member have a vested interest in any transaction.

•· Promising to follow the Standards of Practice, including never combining their money with a client's money.

Hiring a professional Central real estate agent can take the hassle and guesswork out of buying and selling a home, and finding one who is also a REALTOR® can be an added bonus. They can help you find financing and handle the intricate paperwork involved in any real estate transaction.

Before hiring any real estate professional, ask for their references. Interview several before deciding which one to chose. An experienced real estate agent can make the difference between getting a good price and getting a great price.

As a professional Central Ohio real estate agent and REALTOR®, I can guide you safely and profitably through your real estate journey. Call me today at 614-273-6406 or email me at Vanessa.simmons@realliving.com

LINKS:

National Association of Realtors® (NAR): http://www.realtor.org/realtororg.nsf/pages/AboutREALTORS?OpenDocument

Code of ethics: http://www.realtor.org/mempolweb.nsf/pages/code

Financing: (link to section on your website about mortgage or preferred lenders or use this link) http://www.hud.gov/ll/code/llslcrit.cfm

Tax Credits for Replacing Windows, Doors, and Skylights

Vanessa V. Simmons~Realtor (Real Living HER) — Wed, 16 Dec 2009 13:26:52 -0800

By: Gil Rudawsky

Published: September 9, 2009

Do you qualify?

Your windows are drafty or more than 15 years old.
You install qualifying replacements in 2009 or 2010.
You haven't already maxed out the energy tax credit on other upgrades.

High-end products are more expensive, but they are often better constructed and more energy efficient. Image: Andersen Windows, Inc.

Does it feel like money is escaping through your home's drafty windows, doors, and skylights? You might be able to keep at least some of that cash in your pocket by taking advantage of federal energy tax credits for retrofitting your house with qualified energy-efficient replacements. You can claim a tax credit of up to $1,500 for upgrading the windows, exterior doors, and skylights in your primary residence during 2009 and 2010.

The credit is based on 30% of the cost of materials, so a $5,000 purchase would max it out. But a tax credit alone isn't reason enough to start calling contractors. Do a little homework first. The true value of replacing aging windows, doors, and skylights isn't always an open-and-shut case.

Follow the 15-year rule for windows

A good rule of thumb for window replacement: Don't bother if they're less than 15 years old, says Jim Rooney, a home inspector in Annapolis, Md. The savings on your energy bills likely will be negligible since window technology hasn't changed that radically and the integrity of your windows should still be intact. Shoddy installation or poor manufacturing may call for exceptions to the 15-year rule. Windows that are 20, 30, or more years old are prime candidates for replacement.

Most of your focus should be on windows, since they're more numerous, but skylights are notorious for energy loss too, not to mention water leaks. Exterior doors tend to outlast windows, so keep them unless the upgrade is purely for aesthetic reasons. Besides, weather stripping and snug sweeps can boost the energy efficiency of exterior doors for a whole lot less money.

Adding up the costs-and savings

With windows, doors, and skylights, you get what you pay for. Expect to shell out between $500 and $1,000 per window including installation, or about $10,000 total for a moderately sized house of about 2,000 square feet. New energy-credit-qualified doors and skylights are also in the $500 to $1,000 range, including installation.

Tom Herron, of the National Fenestration Rating Council, says products on the higher end of the cost scale are usually better constructed and more energy efficient. NFRC is a non-profit organization that administers the rating and labeling system for the energy performance of windows, doors, and skylights.

It could take years to recoup the upfront costs, but you should see an immediate reduction in your energy bills. In general, you'll save $126 to $465 a year if single-pane windows in a 2,000 square foot house are replaced with tax-credit-eligible windows, according to the Efficient Windows Collaborative, a trade group. That's 15% to 40% off the typical energy bill.

Do my replacements qualify?

A label alone doesn't guarantee your new windows, doors, and skylights qualify for the energy tax credit, but it does provide critical information related to eligibility. To qualify, windows, doors, and skylights must have a U-factor of 0.30 or less and a Solar Heat Gain Coefficient (SHGC) of 0.30 or less. The U-factor measures how well a product prevents heat from escaping, and the SHGC gauges how well a product blocks heat from the sun. Labels also carry information on light transmission, air leakage, and condensation resistance.

Herron, of the NFRC, says about 80% to 85% of the manufacturers in North America provide NFRC labels. All Energy Star qualified windows carry an NFRC label, according to Energy Star, a joint program of the U.S. Department of Energy and the U.S. Environmental Protection Agency that promotes energy-efficient products and practices.

Resist the urge to trim costs by purchasing cheaper windows, doors, and skylights with poor U-factor and SHGC ratings. Not only will you miss out on the tax credit, energy bills won't come down much.

Taking advantage of the tax credit

A credit is especially valuable because it directly reduces the amount of tax owed, as opposed to a deduction, which lowers the amount of taxable income. To be eligible for the full credit you must owe more in federal taxes than you're trying to claim. Use IRS Form 5695 to take advantage of the credit, which is cumulative for 2009 and 2010 only. You can't claim $1,500 for each tax year, but you can spread the $1,500 over the two-year period.

Uncle Sam may want proof that your new windows, doors, and skylights meet energy-efficiency standards, so be sure to save receipts, product stickers, and certification statements. The latter can often be found on packaging or manufacturers' web sites. As for receipts, ask contractors to itemize expenses. Installation costs aren't eligible for the credit; only materials are.

Keep in mind that a variety of energy-efficiency improvements to your existing home, including insulation, roofs, and HVAC, count toward the credit limit. You can't claim separate $1,500 credits for each upgrade, nor can you claim the credit for a newly built home. Matt Golden, president and founder of San Francisco-based Sustainable Spaces, says homeowners can often lower energy costs for a lot less, and still get the tax credit, by insulating attics instead.

This article provides general information about tax laws and consequences, but is not intended to be relied upon by readers as tax or legal advice applicable to particular transactions or circumstances. Readers should consult a tax professional for such advice, and are reminded that tax laws may vary by jurisdiction.

Gil Rudawsky has been covering business and consumer issues as a reporter and an editor for 18 years, most recently as a deputy editor at the Rocky Mountain News. He lives in a house built in the 1930s, and always keeps the home's character in mind when making upgrades.

If you are ready to buy or sell or would like more information on this topic or other housing questions please call Vanessa V. Simmons at 614-273-6406 or email me at vanessa.simmons@realliving.com.

First Time Home Buyer's Tax Credit 2.0

Vanessa V. Simmons~Realtor (Real Living HER) — Sat, 14 Nov 2009 13:09:31 -0800

First Time Home Buyer's Tax Credit 2.0

The extension of the 2009 First Time buyers tax credit not only gives procrastinators a little more time to take advantage of the up to $8K tax credit, the extension also offers some exciting new benefits.

Military Benefits:

Members of the Armed Services, intelligence, and foreign services, who are on active duty and spend a minimum of 90 days outside of the US in 2009, will get an additional year to buy their homes, up to May 1^st, 2011.

Another benefit is a waiver on the time of occupancy of the home purchased with the tax credit. Homebuyers who purchase their home using the tax credit must use that home as a principal residence for a period of no fewer than three years, or must forfeit the entire credit. Military, intelligence, and Foreign Service members do not have to repay the credit if they have to sell their home after fewer than three years occupancy due to official business

Move up Buyer Benefits:

For sellers who have lived in their homes, as a primary residence, for a minimum of five consecutive years, there is a brand new $6500 tax credit for the purchase of a new or existing home that is in contract between Nov. 7^th 2009 and April 30^th, 2010 and closed by July 2010.

The general sense seems to be that this will be it for this tax credit. When the deadline for the first credit was approaching there, were many folks left panicked thinking they had missed an awesome opportunity. Do not be left on the sidelines call me at 614-273-6406 or email me at vanessa.simmons@realliving.com and let us make sure you find your dreams home in time to take advantage of this credit.

How Can You Afford a New Central Ohio Home?... Learn to Budget

Vanessa V. Simmons~Realtor (Real Living HER) — Wed, 30 Sep 2009 07:18:26 -0700

Many people go through life one paycheck to the next and never bother to figure out where their money is going. It's important to know where your money is going and what you can afford if you are thinking about buying a new Central Ohio home.

Here's how to start up a monthly budget that will keep you in the know about where your money is running off to each month.

•· Find a program you're comfortable using. Your computer probably came with a spreadsheet program. If you are not used to using one open it up and become familiar with the program. It's a great tool to use to create a budget. If by chance your computer doesn't have a spreadsheet program, you can use an online program like Budget Pulse, or other useful online budget systems such as Mvelopes.

•· Enter your absolute monthly expenses such as car loans, utilities including cell phone bills, and credit card expenses.

•· Enter your monthly bills that can vary such as food, gasoline, entertainment. These expenses can be changed to help improve your bottom line, but make sure you give them fair limits so you don't cut yourself short on necessities such as food or transportation costs.

•· Make sure you figure in some savings for vacations and other unexpected expenses that may pop up throughout the year. Trimming your budget so severely that you have no extra money to cover you when something breaks down, or an extra bill comes in is a sure method for disaster and will make you new life in a Central Ohio home miserable instead of the happy time it should be.

Once you realize where your money is going, it's easier to see if you are spending frivolously or strapped to your limits. It is the best way to determine if your dreams of a new Central Ohio home are realistic or not.

If you have any questions about your ability to afford a new home, I can help. Call me today at (614) 273-6406 or email me at Vanessa.simmons@realliving.com

Budget Pulse: https://www.budgetpulse.com/

Mvelopes: http://debtproofliving.mvelopes.com/

Hurry ............Less than 90 days to take advantage of the 8K tax credit

Vanessa V. Simmons~Realtor (Real Living HER) — Mon, 31 Aug 2009 12:11:54 -0700

If you have your eye on a short sale as a first time buyer you may be running out of time to take advantage of the $8000.00 tax credit.

The 2009 First-Time Homebuyers Tax Credit

If you're a first-time homebuyer, you're still in luck but may be running out of time. A while back Congress passed a tax credit for first-time homebuyers, which gives an opportunity to earn up to $8,000 when purchasing a home. Read on to find out how this credit works and whether or not you qualify for it.

What Constitutes a First-Time Homebuyer?

You may be classified as a first-time homebuyer and not even know it. Obviously, if you haven't previously owned a home you fall into the category of first-time homebuyer. But did you know that if you haven't owned a principal residence (a location where you spend more than 50% of your time) in the past 3 years you also constitute what we call a first-time homebuyer? It's important to note that if you're married, both you and your spouse qualify for this tax credit if neither of you have owned a principal residence in the past 3 years. If either of you have, you don't jointly qualify. If you're unmarried, you can jointly purchase a home with somebody if one of you qualifies as a first-time homebuyer. The catch is that you have to allocate the credit amount to the individual who qualifies. This sometimes happens if a parent decides to jointly purchase a home with a son or daughter. Remember, you still qualify for this tax credit even if you have a vacation home or rental property that isn't used as a primary residence.

How Can I Earn a Partial Tax Credit?

If your individual income is between $75,000 and $95,000 or if your joint income is between $150,000 and $170,000, then you are in what we call the phase-out area. This is the income bracket where you will receive a partial tax credit, but not a full one.

Here's an example of how you can determine your partial tax credit. Let's say as a single individual you have a modified adjusted gross income of $79,000. Your income exceeds $75,000 by $4,000. Dividing $4,000 by $20,000 (the difference between $75,000 and $95,000) gives you 0.2. When you subtract 0.2 from 1.0, the result is 0.8. Then multiply $8,000 by 0.8 to get $6,400. $6,400 is your partial tax credit. For additional information, contact your tax advisor, or check out the following phase out charts:

Is There a Repayment Process?

The best part about this credit is that there's no repayment as long as you don't sell the home within three years of purchase. If you choose to do so, the entire amount of credit is due back to the government at the time of sale. But this only applies to homes purchased in 2009, and it's the biggest difference between the 2008 tax credit of $7,500 and this year's credit of $8,000. Last year's credit acted as more of an interest-free loan.

How Do I Claim the Tax Credit?

You can easily claim the tax credit on your federal income tax return. Start by completing the IRS Form 5405 to determine your tax credit amount, then claim this amount on Line 69 of your 1040 income tax return. Be sure that you qualify for the credit before filling in these forms.

Can I Claim the Credit on My 2008 Tax Return?

It can be claimed on your 2008 Tax Return (to be filed by April 15, 2009), an amended 2008 Tax Return, or your 2009 Tax Return. The NAR and industry partners tried to get the credit made available at closing but the IRS balked. In addition, it was explained that even if a system could be devised, it would delay closings by several weeks. Make sure to contact your tax advisor for details on the process.

Can I Receive the 2009 Credit If I've Already Filed for the 2008 Credit on my 2008 Returns?

Yes, you may be able to file an amended 2008 tax return with a 1040X form. Make sure to work with your tax advisor to execute a successful return.

I reproduced this information from the Real Living Site.

For more details call me at 614-273-6406 or email me at vanessa.simmons@realliving.com. Please do not let this opportunity pass by you it could be gone just like the Cash for Clunkers so don't miss out contact Vanessa today.

Central Ohio Home Sales July 2009 Update

Vanessa V. Simmons~Realtor (Real Living HER) — Fri, 21 Aug 2009 12:56:08 -0700

July 2009 Home Sales Statistics Posted: 8/21/2009 Columbus Board of REALTORS®
Home prices, sales, inventory continue positive trends
Key indicators point to increased stability in central Ohio market

(Aug. 21, 2009) Home sales and inventory levels remained steady in July, as more than 2,000 homes were sold, and sales were off by only 2.9 percent compared to 2008 levels, the Columbus Board of REALTORS® said today.

"Pricing, inventory, and supply levels all show that we are coming out of the bloated housing market we saw a year ago," said Gary Parsons, president of the Columbus Board of REALTORS®.

"These key factors in real estate are all remaining consistent and balanced - signs that the central Ohio housing market continues to head in the right direction."

At $167,039, July's average sales price was only off 4 percent compared to the same month in 2008.

Total inventory and new listings both fell by double digits, indicating a housing market that is more balanced than last summer.

With 14,880 listings on the market, inventory is down 16 percent from the more than 17,000 homes which were for sale this time last year; new listings were also down 16.2 percent in July compared to 2008.

The month's supply number for July continued to remain favorable at 7.23, meaning that if no new homes were added to the market, it would take slightly more than seven months to sell all remaining inventory.

A market is typically considered balanced with around a 6.5 to 7 month supply.

"It appears the end of summer and early fall are going to remain strong in central Ohio as sellers take advantage of favorable pricing and incentives like the $8,000 first-time homebuyer tax credit," Parsons said.

"With just 101 days left until the tax credit expires, we encourage those fence sitters to act now."