Archive for February, 2009
Rules for 2009 Tax Credit
February 27th, 2009 categories: Real Estate, Tax Incentives
According to Bankrate in order to qualify for the $8000 tax credit you must meet the following:
Rules for 2009 first-time homebuyers tax credit
- Does not have to be repaid unless the home is sold within three years.
- Applies only to first-time homebuyers, defined as those who have not owned a home within the previous three tax years.
- Available only for homes purchased between Jan. 1, 2009, and Dec. 1, 2009.
- Restricted by income; phases out for individuals with an adjusted gross income of $75,000 or above and for married couples with a combined adjusted gross income of $150,000 or above.
- Tax credit is for up to 10 percent of the purchase price, up to a maximum of $8,000. For example, a buyer of a $150,000 home could receive a tax credit of a maximum of $8,000, while a first-time buyer of a $70,000 home would be eligible for a tax credit of $7,000.
- The credit can be taken on 2008 taxes even when the purchase is made in 2009.
It’s obvious that first time homebuyers will be the winners so if you need to go shopping and haven’t found a Realtor send me an email and let’s get started.
| Discussion: No Comments »
Does your Realtor listen to you?
February 27th, 2009 categories: Real Estate
Figuring out what you really want in a home
Of all the people I’ve worked with in real estate one of my favorite transactions involved a customer who wasn’t present to see the home he purchased. He actually ended up buying a home from photos I took for him. This has sparked some questions about how well agents really listen to their clients needs when helping them search for a home. Conversely, it also brings up the question of how well a customer communicates his criteria and if that agent is asking the rights questions of his customer.
In this market, buyers have the advantage and it is all the more important to make sure you have thought through your lifestyle preferences in order to take advantage of the lower price over the long term. It doesn’t benefit you if you find a great deal now but don’t like the way the house functions and end up selling it in a few short years. Figuring out what type of home, neighborhood and community is just as important as your monthly payment.
My customer told me when we were touring homes that “I was telling him all the things he noticed” as we walked through the homes. This gave him the confidence to know that his needs were acknowledged and the details that bothered him were not being overlooked. So when the offers he submitted while he was in town didn’t get accepted he felt confident that I could communicate to him the necessary information to make a long distance decision. Apparently stating the obvious facts about a house wasn’t going to work for this situation…he needed someone with a trained eye in design, construction and knowledge of the community who wasn’t going to be shy about the negative aspects of a home.
Design psychology isn’t new but when you combine the expertise of an interior designer with psychology you find greater satisfaction with the end result due to asking a lot of questions. Constance Forrest and Susan Painter are credited as the founders of the field of design psychology.Their approach has helped realtor’s sell houses and buyers find greater joy in the homes they’ve purchased. This video clip shows how they work to create an environment that satisfies the tastes of both clients by drawing on the emotional attachments of previous homes, favorite objects and colors schemes that hold important memories from the past.
You might not need to purchase a home sight unseen but it certainly helps if you hire a Realtor who knows the right questions to ask especially if you’ve never purchased a home before. Also, don’t overlook the importance of an agent’s ability to respect what you tell them is important to you. If you only want to see single story homes or need to stay within a certain budget and your agent ignores that information then it’s time to find another one.
Finally realize that you can’t talk your significant other into liking a home that they just don’t like. Emotions are not logical and trying to convince someone to like a home they are indifferent to doesn’t work. The reasons people attach to homes vary with each person and could be due to memories, inspiration or floor plan. I’ve seen couples try to convince each other to like a particular home only to end up in a fight. Emotions cannot be reasoned with so minimize the stress of home buying and agree to disagree and keep the peace.
| Discussion: No Comments »
Tax Credit for New Homebuyers
February 24th, 2009 categories: Folsom Lake, Home Building, Real Estate, Tax Incentives
New construction offers up to $10,000 credit
Good news for first time home buyers in California. As part of the state budget you can now get up to $10,000 credit or 5% of the purchase price of an owner occupied newly constructed home. This applies only to “have never been occupied” properties. This is a tax credit that is good only from March 1, 2009 to March 1, 2010. There isn’t any information regarding down payments or loan caps but a tax credit works like cash in your account at tax time so those of you who were on the fence it’s time to go shopping.
Currently there is a tax credit up to $8000 for first time homeowners which will expire at the end of 2009 which is an expansion of last year’s tax credit of $7500 with some changes. I don’t know if the credit will be retroactive to last year’s purchases but since tax season is upon us I’m sure more information regarding exactly how this plays out will start to surface.
Searching for a home and want the updates? Click on the Search button and sign up. You will receive a list of the current listings available in your selected area and updates will be emailed as they go live on the MLS.
To Subscribe to this feed: http://www.feedburner.com/fb/a/emailverifySubmit?feedId=2571487
| Discussion: No Comments »
Loan Modifications vs Short Sales
February 16th, 2009 categories: Foreclosures, REO, Real Estate, Short Sales
Does hiring an attorney really help?
The past couple of years have re-introduced to the real estate community the short sale that has helped many people sell their homes and keep some semblance of credit worthiness, and now attorneys have found a niche with loan modifications.
We last saw the short sale in the mid 1990’s when the market had a similar fall due to the overbuilding and investor inflation created by a rising real estate market. In essence, the seller was able to sell his house without having to satisfy the debt he owed to the lender and the new buyer was able to purchase a home with a clear title even though the previous owner owed more than the new buyer paid.
Now attorneys are introducing their services to help homeowners obtain a loan modification. Real estate loans can be obtained from a variety of sources i.e. banks, mortgage brokers, mortgage bankers, credit unions, investment firms, private funding, etc… so is it necessary to hire an attorney to get a toxic loan re-negotiated? That depends on a couple of factors but most importantly it depends on the reason you are seeking relief from your loan obligation.
How much you owe vs. what you can afford to pay for a mortgage is the primary reason most people find themselves in this situation in the first place. There are exceptions for loan fraud and in those cases an attorney would be a good choice however, the majority of people now seeking relief accepted a loan at a teaser rate knowing it would adjust. They were hoping the market would continue to increase and that they could re-finance at a fixed rate after their minimum period expired. Your ability to qualify for a loan modification is the same criteria lenders use to qualify any buyer for a loan.
In a loan modification the goal is to re-negotiate the loan to something that the homeowner can afford. The best case scenario is to get in touch with your lender and begin the discussion of loan modification prior to missing any payments. The labyrinth of departments make this an intimating situation and can seem overwhelming. Attorneys capitalize on these fears and extract more money from the homeowner which exacerbates their financial situation.
I recently had a conversation with one loss mitigator from a bank I was working out a short sale for one of my sellers. He said his bank requires that the attorney, the loss mitigator and the homeowner have a three-way phone conversation explaining to the homeowner that the hiring of an attorney was not necessary to negotiate a loan modification. He then asks the homeowner why he hired an attorney when he could save himself the money and the usual answer was fear. This was the reason most people were willing to go further into debt with no guarantee that they would get their loan modified. Again, the primary factor in obtaining a loan modification is your ability to qualify for the loan in the first place.
Some law firms specializing in loan modifications have “working relationships” with investors who will purchase your home should you not qualify for a loan modification. Essentially, they are structuring a short sale with the law firm doing the paperwork on behalf of the seller. This is where I have a problem because the seller is being charged for services a Realtor would provide FREE. Since the seller did not qualify for the loan modification they are now forced to sell their home or face foreclosure but they now have attorney fees to pay. Talk about fear!
My suggestion to people who are upside down on their mortgages is to first talk with a Realtor who is familiar with loans and short sales. Find out if you qualify for a new loan and what your home value is in this market. If you suspect loan fraud then get a referral from your Realtor for an attorney who specializes in real estate. Paying for the learning curve of those attorneys who are exploiting people’s fears is not going to help your situation.
For more information see these articles: Now Is The Time To Renegotiate With Banks
To Suscribe to this feed: http://www.feedburner.com/fb/a/emailverifySubmit?feedId=2571487
| Discussion: 2 Comments »
Folsom’s First Bicycle Film Festival
February 8th, 2009 categories: Biking, Folsom Lake, Sacramento, Special Events
Feb 13th starts new season
by Jason Montiel
Folsom has developed a reputation as one of the best places to live due to the outdoor recreation available nearly 11 months of the year although this year seems to be the exception…due to a lack of rain the number pushes 12 months. So this year the city is hosting it’s first film festival featuring “Breaking Away” at 7 p.m. at 48 Natoma St. Just in case you don’t know this is the location of the new Art Center/Senior Center which is a re-make of the fire station next to the city offices.
This presentation was inspired by the upcoming Amgen Bike Race in Sacramento on Feb. 14 and the city of Folsom hopes the locals will support that race and encourage other event sponsors to consider our region when looking for venues. Promotion is something taken very seriously in this town and I wouldn’t be surprised to see film crews on the streets with celebs shopping at the local antique shops between takes.
Speaking of a lack of rain…while driving down Empire Ranch Rd. I caught a clear view of the Folsom puddle and was surprised how brown the lake appears. Watering lawns is now limited to every other day and if you get caught spraying off your sidewalk or driveway you could be fined. I’ve begun to pray for rain because I remember my first year in California, which just happened to be in the middle of the drought in 1977. We used to save the drain water from the washing machine to water the lawn and wash the cars. Local restaurants have begun to only serve water upon request so if anyone has a hotline to heaven please pick up the phone…we need the water.
Feb 13th starts new season
by Jason Montiel
Folsom has developed a reputation as one of the best places to live due to the outdoor recreation available nearly 11 months of the year although this year seems to be the exception…due to a lack of rain the number pushes 12 months. So this year the city is hosting it’s first film festival featuring “Breaking Away” at 7 p.m. at 48 Natoma St. Just in case you don’t know this is the location of the new Art Center/Senior Center which is a re-make of the fire station next to the city offices.
This presentation was inspired by the upcoming Amgen Bike Race in Sacramento on Feb. 14 and the city of Folsom hopes the locals will support that race and encourage other event sponsors to consider our region when looking for venues. Promotion is something taken very seriously in this town and I wouldn’t be surprised to see film crews on the streets with celebs shopping at the local antique shops between takes.
Speaking of a lack of rain…while driving down Empire Ranch Rd. I caught a clear view of the Folsom puddle and was surprised how brown the lake appears. Watering lawns is now limited to every other day and if you get caught spraying off your sidewalk or driveway you could be fined. I’ve begun to pray for rain because I remember my first year in California, which just happened to be in the middle of the drought in 1977. We used to save the drain water from the washing machine to water the lawn and wash the cars. Local restaurants have begun to only serve water upon request so if anyone has a hotline to heaven please pick up the phone…we need the water.
| Discussion: No Comments »
