In case you haven't heard, both the House of Representatives and Senate have passed legislation to extend the existing first time homebuyers $8,000 tax credit, and expanded it to NON first time homebuyers as well, but limit it to $6,500. It's expected to be signed by the President in the coming days. As it's written, the client must be under contract by the end of April, 2010 and close by the end of June, 2010. So let's spread the great news!
In February of this year, Keller Williams International launched a new division - KW Commercial. With this development, Keller Williams is now able to serve both residential and commercial real estate needs. The KW Commercial division here in our local office includes agents with extensive experience in a wide variety of commercial real estate transactions including: investments, leasing, sales, development and 1031 exchanges. Whether you are a commercial tenant, a property owner or an investor, or an agent needing to refer a commercial client, I'm sure KW Commercial can help you achieve your commercial real estate goals. If you or someone you know has a need in the area of commercial real estate, please give KW Commercial the opportunity to become your commercial brokerage of choice. You can also learn more about KW Commercial by visiting our website www.kwcommercial.com, or contact me through my website.
According to a podcast posted by Chief Economist for the NAR, Lawrence Yun, our government should consider extending the tax credit deadline for new homebuyers.
The key is to stabilize home value prices, or federal interest rates could rise sooner and more sharply. Home value averages are at a historical low, but the Home Buyer Tax Credit has significantly impacted the market and stimulated home sales, steadily trimming away inventory. The market is moving in the right direction. Per Yun, "It would be an utter pity if the housing market, just at the cusp of a self sustaining recovery, rolls downhill again."
According to Yun, the market activities need a moderate increase to continue to regain consumer confidence. He reports that we need to extend the credit for ALL homebuyers at least into the 2nd quarter of 2010. Then the housing market will truly have a self sustaining recovery.
Yes, the price tag for extending the credit would be $10-20 billion, but it would create invaluable long term economic growth to steadily bring down the national $1.5 trillion deficit, the highest ever. Surely we can grant American homeowners this if we just granted Wall Street $700 billion, right?
Fellow REALTORS®, look for calls to action from the NAR and be ready to respond.
Part of my service to buyers is to make sure we do a final walk-thru of the property before signing any closing papers. Here is a list of items I always make sure to check for:
•§ Obviously, repairs you've requested have been made (and we obtain copies of paid bills and any related warranties at closing). It's actually a good idea to pay for a "re-inspection" with your home inspector, prior to closing.
•§ All items that were included in the sale price-draperies, lighting fixtures-are still there.
•§ Screens and storm windows are in place or stored.
•§ All appliances are operating (and have not been "switched out").
•§ Intercom, doorbell, and alarm are operational.
•§ Hot water heater is working.
•§ HVAC is working.
•§ No plants or shrubs have been removed from the yard.
•§ Garage door opener and other remotes are available.
•§ Instruction books and warranties on appliances and fixtures are there (or waiting for us at closing).
•§ All personal items of the sellers and all debris have been removed.
The National Association of Realtors conducted a study to reveal over 80% of buyers find their home on the internet. Below are the top 4 types of sites which buyers reported were used find their home:
•1. Multiple Listing Service (MLS)
•2. REALTOR.com
•3. Real estate firm website
•4. Real estate agent website
As an experienced Listing Specialist, I utilize all four (and more!) in my marketing strategy for our clients' properties. Contact me today for a comprehensive look at my marketing plan and sales record.
You should know, recent changes in North Carolina law affect the way the public is represented by real estate agents. To assure that consumers are made aware of these changes, the North Carolina Real Estate Commission and the North Carolina legislature have enacted certain legal protections for buyers and sellers. They created a brochure entitled "Working with Real Estate Agents" which the law requires you to receive at the first "substantial contact" with a real estate agent. The brochure describes the duties and obligations of real estate agents with regard to representing both buyers and sellers of real estate.
It is critical that until you have chosen a REALTOR® to represent you, you do not disclose any confidential information that could compromise your negotiating position. Once you've chosen your REALTOR®, you may then confide in them as your fiduciary, since they then become obligated as your agent to represent your best interests.
As you take the big financial step of buying a new home and home financing, you should know that lenders and mortgage brokers are required by federal law to provide you with certain printed resources within three business days of applying for a loan.
Contact me today to learn more about the home buying process and to learn more about the $8000 first-time home buyer's tax credit, scheduled to expire December 1st of this year!
A 15-year loan is a great wealth building strategy. The payments actually are not much more than those of a 30-year loan, the "interest paid" is considerably less and the loan is paid off in half the time. Below is a comparison to show the advantage versus a 30 year loan:
30 Year15 Year
Payment $1,264 $1,715
Balance after 15 yrs. $145,118 $0
Interest paid after 15 yrs. $172,663 $108,672
Interest total $255,089 $108,672
WOW! The 15-year loan will save $146,417 and the monthly is only 35% more than the 30-year loan.
Another advantage of the 15-year loan is that it's a dependable savings plan. You are required to make the payments each month and the savings compound and grow tax-free at the loan's interest rate. The rate is comparable to a taxable return of 5-10% in today's market. For those of us that struggle with actively increasing our savings, the 15-year loan is an easy way to "passively" save.
So why doesn't everyone get a 15 year loan? For the same reason as above - the savings are locked in the equity of the house, with no way to easily access the money. If any emergencies or unforeseen expenses arise, other very costly sources of credit such as equity lines or credit cards may have to be used, possibly instantly wiping out any savings from the 15-year loan. A borrower must have adequate reserves with no other expensive debt, such as credit card balances, before even considering a fifteen year loan. For example, earning a return of 5% on a 15-year loan, but paying 16% on credit card balances makes no sense. In this case, the extra cash should always be used to pay off the credit card balances first.
Contact me today for an introduction to an experienced mortgage broker, and discover if this is an appropriate product for you.
Let's look at some basic reasons to move toward home ownership:
•· You will have a great tax write-off.
•· Your housing expense may never go up.
•· You can use, decorate, make physical changes to, and enjoy your home as you see fit.
•· You may increase your equity as your home appreciates in value.
•· You are not at the mercy of your landlord.
•· Your house will become "home," not a temporary living situation.
Versus Renting...
•· You will have no tax write-off.
•· Your rent can go up each year, typically four to ten percent.
•· You must get permission from your landlord to make any changes to your dwelling.
•· You have no equity build-up. Your money is gone for good.
•· You can be evicted, lose your security deposit, and more.
•· Your living situation is always temporary.
Contact me today to get started on the purchase of your new home! You may qualify for the $8000 first-time home buyer's tax credit, scheduled to expire December 1st of this year!
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
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