Schuylkill County Real Estate: January 2009

Let's first define "First-Time Homebuyer".  Actually, let's define what the heck I'm addressing in the first place.  It's the First-Time Homebuyer Tax Credit.  I trust you've at least heard about it and if not... no biggie... I will give you some of the talking points and the direct address to the site momentarily.

The whole concept of "First-Time Homebuyer" can be a tad misleading for some of you.  You are considered a first-time homebuyer (under this tax credit) if you have not owned another home at any point in time during the three years prior to the date of purchase. 

So what is this Tax Credit all about?

• It acts like an interest free loan because it must be repaid over a 15-year time frame.  If you die, don't worry about it as long as you filed your taxes individually.  If you filed a joint return, it's up to wifey or hubby to pay this interest free loan.  Death, like life & love, can cost money:)
• This only applies to primary residences in the United States of America.  Sorry, the vacation house in Greenwich, Connecticut doesn't qualify.  As far as that Villa in Italy, count that out as well.  Feel free to drop me a bottle of Chianti in the mail, though.  It's got to be your home... the very roof over your head.  On a personal note, I do believe we'd be better off if when buying a home... we'd consider it more than an "investment".  It's where you live folks!  Investments, for most of us, happen over time.  I ain't (love that word) no day trader or speculator.  And I never will be. 
• What's the time frame?  You buy the home after April 8th, 2008 and before July 1st, 2009.  Let's face it, we have low interest rates and a large inventory and considering it is a buyers market in a lot of areas... it may be a damn good time to go ahead and buy that home.  Historians may look back to this period of time and wonder what the fuss was with not wanting to committ, waiting for a more opportune time.  There may be NO more opportune time than now.  Of note, the preceding is a sales pitch delivered by folks to increase business and consumer confidence.   The same can be written about all the bad news flying around.  Don't think that news organizations aren't rolling in dollars about how much "bad news" is being reported.
• How much is the credit?  Quite simply, 10% of the purchase of the home, a maximum available credit of $7500.00 worth of dead presidents.
• How will the IRS know if someone sells their residence before the 15 years are up?  I gotta laugh at this question, though it isn't a stupid one.  In my mind, the only stupid question is one not asked.  To answer this, the website says the following: "Through both self reporting and third-party information."  Right, how ripe.  Without imposing political beliefs upon the masses, they will know.  While I believe in conspiracies, this isn't one in my book.  This is intelligence, the right kind.  I know folks who blatantly took advantage of the system, good for you.  Just don't bitch because we are all in a bundle.  YOU were just as responsible...
• It's repaid, but how?  After the second year of claiming the credit, you must repay that interest free loan.  From what I've read, you will be repaying as an additional tax on your returns for the next 15 years.... $500.00 a pop.

One more thing, before I present the second thing which will end up "lastly".  Real Estate Investors have been stifled because of all these happenings in the Mortgage World.  Personally, I think that is a mistake.  They say you can only own so many properties and your credit score has to be this and your mother has to a direct decendent of Henry the freaking 8th?   Some folks invest in Real Estate for a living, don't ignore them.  Keep that in mind PMI Companies and Credit Scoring Agencies, because I bet ya that you won't be running this industry much longer.

Lastly, and my English Teacher hated starting a sentence like that which is one of the reasons I just did... it's a buyer's market.  That doesn't mean it is right for you, yet it is most certainly something to explore.  In a few years, if you didn't pounce on this, you may just be making someone else a lot of money... who owns your home. 

Direct website @ http://www.irs.gov/newsroom/article/0,,id=186831,00.html

Have some fun @ http://www.youtube.com/watch?v=tfBoMV-HIP4

 

Sardi

 

If you must be home during showings of your property, I can suggest that you step outside and let the potential buyers look around without you there. Let your Realtor do the "selling" of the home. Let me give you a recent scenario and why I am suggesting this for you.

Awhile back, I took some buyers out to look at a home. It was the first weekend on the market. The sellers were home during the showing and stayed in the home. They were so excited to have a showing in the property and to get it sold, they engaged my buyers in conversation. I tried steering my buyers clear of them by stepping out back on the deck, but the sellers remained persistent.

I'm all for friendly small talk, but this conversation would cost them big-time!

Every room we went in was commented on by the seller and was told to us what they were going to do for the buyer. The seller said he was going to do numerous things still to the house including replace the old windows, put in new sod in the back yard, re-finish the deck, etc...

What these sellers didn't know, is that my buyers just saw a similar home that was a complete mess and by comparison, this one was fabulous! Now, with all of the extra promises made to my buyers, they fell in love with the place.

My point is, they loved it regardless of the fact that it needed a few things.

So, we put in an offer and my buyers wanted to make sure that some of these "promises" were included, so I wrote them in the contract. The listing agent called me to ask why would I ask for these things and I told her that her sellers practically insisted on it. Her response was "I told them to keep their mouths shut!"

Would my buyers have bought this place anyway? Probably. These eager sellers would have given us anything and showed my buyers their desperation. This is why you hire a Realtor-to do the negotiation for you and so you are not so emotionally involved in the transaction.

I am sure that FSBO sellers run into the same problem and it is probably the reason that they sell their homes on average for 15.3% less than those working with a Realtor.

The best advice I can give for a seller that must remain home while buyers are looking at your property is to smile, be polite, step outside if you can, and resist the urge to "sell" your house, that is what you are paying your Realtor for.

____________________________________________________________________________________________________

If you are looking to buy or sell real estate in Colorado Springs, please contact Kristi DeFazio at 719-459-5468 or kristidefazio@remax.net

You can also view my website at www.kristidefazio.com and search all of the listings in Colorado Springs.

Ask me about my military relocation benefit program.

Kristi DeFazio

RE/MAX Advantage

5590 N Academy Blvd.

C.S. CO 80918

Investing in YOU!!

MY FIRST PLACE, HGTV’s hit series, is still casting for our Sixth season and we’re STILL looking for first-time homebuyers in the Greater Philadelphia area RIGHT NOW!
 
AGENTS involved play a significant role in the storytelling methods of the show and will receive nationally televised (HGTV)positive exposure.
 
We are looking for fun, high-energy people who are just starting the home-buying process for their first place! Our goal is to capture all the trials and tribulations of looking for, bidding on and buying your first place. 
 
Ideal candidates will be enthusiastic buyers with a great story to tell and a desire to share their experiences. Singles, couples and families are all invited to apply! 
 
Candidates who are chosen for the show will also receive a unique HOUSEWARMING SURPRISE that HGTV has picked just for the home buyer!
 
Feel free to pass this on to any colleagues.
 
AND IT'S A LOT OF FUN for everyone!  Feel free to call me with any questions you may have.


Please contact me if you have any first-time homebuyers who would like to apply or if you have any questions.

Please forward this info to any & all appropriate contacts you have in the Philadelphia area!

Request an application by emailing: 
JKawano@highnoonentertainment.com 


Or call Jon Kawano at (303) 712-3222

<!-- @page { margin: 0.79in } P { margin-bottom: 0.08in } H3 { margin-bottom: 0.08in } H3.western { font-family: "Arial", sans-serif } H3.cjk { font-family: "MS Mincho" } -->

First Time Buyers Top 5 List for Reading A Home Inspection Report

By: James Mushinsky – Centsable Inspection – January 2009

 

You've just had the home inspection and anticipating the report. The inspector pointed out so many items, and explained all the various components in the house. Don't get overwhelmed by the inspection report. Remember these 5 points.

 

1. Not Inspected Items. Licensed Home Inspectors have State requirements for items that are required to be inspected as well as items excluded from a home inspection. Read your home inspection report and be familiar with the items not inspected. If the home inspector was not able to inspect an item, it should be listed in the report. You should know if another inspection is required to evaluate all of the components of the house.

2. Further Evaluation Items. A visual home inspection is limited. However, the home inspector will inform you when there are enough visible signs to bring in an expert for further evaluation. Expert Evaluation may require invasive procedures and are typically only performed when the homeowner accepts responsibility for any failures that might occur with the invasive procedure.

3. Action Items. Licensed Home Inspectors have a term they use to inform clients when action is required. Terms like, Significantly Deficient, Material Defect, In Need of Repair, Does Not Function, Not Normal Working Order, and others are defined by States in the Home Inspector regulations. Know what the term is for your state and be sure you know which components in the house have received this condition rating.

4. Latent Items. Licensed Home Inspectors have a term they use to indicate when a component is worn out. The component may still be functioning yet the client should anticipate a failure in the near future. Terms like, Fully Depreciated, Near End of Service Life, Near End of Useful life and others are defined by States in Home Inspector regulations. Know what the term is for your State and be sure you know which components in the house have received this condition rating.

5. Inspector Recommendations. Some States require Home Inspector Recommendations and other States leave this as an optional service. When reading the report be sure you understand the difference between the recommendations and the required condition definitions.

 

Remember the most important rating is your rating. Use the professional observation techniques and opinions of the Home Inspector to justify your rating.

 

As foreclosure numbers keep growing nationwide lenders are facing more pressure to make home loan modifications, or workouts, more meaningful. Up to now their efforts have mostly been half measures from the borrower's perspective, backed by recent stats that around half of modified home loans re-default within six months. That surely isn't helping the pummeled real estate market to recover, something everyone ought to strive for, and thus help the entire economy get back on track.   

The entities operating between distressed homeowners and the investors who have bought their underlying mortgages usually are the servicing firms. They are the key players, work under contract for the investors and naturally first look for what's good for them. And that means modifying as little as possible. For loan workouts to have more bite the contract terms need to be adjusted or otherwise the whole exercise is largely wasted. Foreclosures would keep rising, home values head further south and at the end the investors would suffer even bigger losses when their deeply discounted, foreclosed property is finally sold.

To make modifications work better loan balances should be lowered bravely and not just a token 10% or so. They ought to be brought down close to where the market is, which of course will hurt the investors at first. But that's the reality right now. When homeowners are upside down by a large percentage they really have very little incentive to do everything they can to make payments. However, if they are looking at newly-adjusted mortgage balances hovering somewhere near actual market value they will most likely make the extra effort to struggle on. It's clear that the housing market is not turning around any time soon and bail the investors out. They have to accept that and base their decisions accordingly.

Another way to lower payments meaningfully is reducing interest rates. And do it so that it would make a real difference, enabling homeowners to stay in their houses. If this avenue is used aggressively, the mortgage balance may not need any adjustment at all, or very little, making it perhaps a more palatable option for the investors.    

It has been rather puzzling to watch lately how aimless the investment community has been in dealing with the growing foreclosure problem. Because of that Washington is likely to get involved and that might not be the best alternative either.

 

Buyers, when you are ready to purchase a home and before doing the actual search, make a checklist of priorities in your dream home.  Knowing exactly what you want will cut down wasted time looking at homes that you would not even consider.

 

While your opinions on the type of home you want to own may change during the homebuying process, use this easy checklist to help you prioritize.  It will make the shopping process less time consuming.

 

Your Property Wish List

 

 

• How close do you need to be to: (a) public transportation _______ (b) schools _______
  (c) airport _______ (d) expressway _______ (e) neighborhood shopping _______
  (f) other_______?
• What neighborhoods would you prefer?
• What school systems do you want to be near?
• What architectural style(s) of homes do you prefer?
• Do you want a one-story or two-story house?
• How old a home would you consider?
• How much repair or renovation would you be willing to do?
• Do you have special facilities or needs that your home must meet?
• Do you require a fenced yard or other amenities for your pets?

 

Prioritize each of these options into	Must have	Would prefer
Yard (at least_________)
Garage (size________)
Patio/Deck
Pool
Bedrooms (number_________)
Bathrooms (number_________)
Family room
Formal living room
Formal dining room
Eat-in kitchen
Laundry room
Basement
Attic
Fireplace
Spa in bath
Air conditioning
Wall-to-wall carpet
Hardwood floors
View
Light (windows)
Shade