For the 4th consecutive month, the Existing Home Sales report revealed what today's buyers and sellers already know -- there's a lot of buyer activity right now.
Existing Home Sales surged 7-plus percent in November, posting its largest number of recorded sales in 33 months. Sales volume is up 44% higher versus last year.
It's another example of the housing market in recovery.
There were other interesting statistics buried in the November data, too. According to the National Association of Realtors:
1. 51 percent of home buyers were first-timers
2. Distressed properties accounted for one-third of all sales
3. The median home sale price rose slightly
But of all the stats from the November Existing Home Sales report, perhaps the most important one is the one showing home supplies falling to 6.5 months. It's nearly half of the home supply available last November.
The rapid run-off of inventory throughout 2009 is more than a trend at this point and suggests higher home valuations in 2010. Especially because mortgage rates are low, tax credits are available, and the press is giving housing positive coverage.
Despite all the hype that now is a good time to buy you should keep your own financial situation in mind. If your job is not completely secure you may want to hold off when it comes to moving on up to a larger home or moving from the rental to home ownership. I recommend FHA loans to all first time home buyers. You may not want to pay the mortgage insurance, but it may be worth the peace of mind. Do not put all your eggs in one basket even if that basket is a home. By the way I am in the business of selling real estate, but not at the expense of your financial stability.
Sunday, December 27, 2009
Friday, November 6, 2009
Homebuyer Tax Credit FAQ's
Question: Existing homeowner credit: Must the new house cost more than the old house?
Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.
Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
Question: I am a first time homebuyer, but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you're within the phaseout range).
Question: I am an eligible existing homeowner. I have a fair amount ofequity in my home. I have found a home with a nonnegotiable
price of $825,000. Will I be able to use any of the $6500 tax credit?
Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.
Question: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight what he did since 3 years doesn't impact eligibility.
Question: I am an eligible first time homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?
Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.
Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.
Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
Question: I am a first time homebuyer, but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you're within the phaseout range).
Question: I am an eligible existing homeowner. I have a fair amount ofequity in my home. I have found a home with a nonnegotiable
price of $825,000. Will I be able to use any of the $6500 tax credit?
Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.
Question: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight what he did since 3 years doesn't impact eligibility.
Question: I am an eligible first time homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?
Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.
Thursday, November 5, 2009
Homebuyer Tax Credit extended to May 2010
Buy a home before May 1 and collect up to $6,500 from the government. If you're a first-time homebuyer, get up to $8,000. The House voted 403-12 Thursday to expand the tax credit for homebuyers. The bill, which also extends unemployment benefits and expands a tax break for money-losing businesses, finally goes to President Barack Obama, who plans to sign it Friday.
First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package. With the credit scheduled to expire at the end of November, the House voted to extend it into the spring. The best news is that it has been expanded to people who already own homes!
Buyers who have owned their current homes at least five years would be eligible, subject to income limits, for tax credits of up to $6,500. First-time homebuyers and buyers who haven't owned homes in the previous three years still qualify for up to $8,000.
First-time homebuyers have been getting tax credits of up to $8,000 since January as part of the economic stimulus package. With the credit scheduled to expire at the end of November, the House voted to extend it into the spring. The best news is that it has been expanded to people who already own homes!
Buyers who have owned their current homes at least five years would be eligible, subject to income limits, for tax credits of up to $6,500. First-time homebuyers and buyers who haven't owned homes in the previous three years still qualify for up to $8,000.
Sunday, November 1, 2009
Response from Senator John McCain regarding homebuyer tax credit
October 18, 2009
Ms. Evette Cecena
Tempe, AZ 85282-4721
Dear Ms. Cecena:
Thank you for contacting me about the real estate market. I appreciate knowing your views on this important issue.
There is a justifiable feeling of concern across America today regarding the ongoing situation with the housing market. Millions of Americans are desperate for assistance as they bear the heavy burden of trying to keep their family homes. The pain of the foreclosure crisis is felt by those who have lost their homes and by their neighbors as well.
In an effort to address this problem and the nation's larger financial problems, the Senate passed several bills aimed at providing relief and jumpstarting the economy. Specifically, the Housing and Economic Recovery Act of 2008, which specifically targets the real estate crisis, became law on July 30, 2008. While not a perfect bill, it does include a number of provisions that can help our housing market, for both mortgage borrowers and lenders, now and in the future.
On March 4, 2009, the President announced the "Making Home Affordable" program which is designed to help 9 million borrowers by refinancing their mortgages. Specifically, this program offers qualified participants the option to refinance or modify their current loan if their mortgage was being held by Fannie Mae or Freddie Mac. For more information, including further qualifications, as well as a self assessment tool to view your mortgage refinance eligibility under the "Making Home Affordable" program, you can visit the following government website: http://makinghomeaffordable.gov/
Additionally, on May 6, 2009, the President signed P.L. 111-22, the Helping Families Save Their Homes Act of 2009. This law expands the eligibility for the Hope for Homeowners program and offers $300 billion in aid to homeowners, enabling more people to qualify for financial relief. It also modifies the federal Homelessness and Rapid Re-Housing Program to allow occupants leasing foreclosed property to remain on the premises for the remainder of their lease and permitting those without a lease to stay on the property for ninety days after foreclosure without risk of eviction. Please be assured that I will continue to monitor this critical issue and will work to ensure the federal government takes appropriate action to deliver needed assistance to home owners.
Thank you again for sharing your thoughts with me. Please feel free to contact me on this or any other matter of concern.
Sincerely,
John McCain
United States Senator
JM/dba
Ms. Evette Cecena
Tempe, AZ 85282-4721
Dear Ms. Cecena:
Thank you for contacting me about the real estate market. I appreciate knowing your views on this important issue.
There is a justifiable feeling of concern across America today regarding the ongoing situation with the housing market. Millions of Americans are desperate for assistance as they bear the heavy burden of trying to keep their family homes. The pain of the foreclosure crisis is felt by those who have lost their homes and by their neighbors as well.
In an effort to address this problem and the nation's larger financial problems, the Senate passed several bills aimed at providing relief and jumpstarting the economy. Specifically, the Housing and Economic Recovery Act of 2008, which specifically targets the real estate crisis, became law on July 30, 2008. While not a perfect bill, it does include a number of provisions that can help our housing market, for both mortgage borrowers and lenders, now and in the future.
On March 4, 2009, the President announced the "Making Home Affordable" program which is designed to help 9 million borrowers by refinancing their mortgages. Specifically, this program offers qualified participants the option to refinance or modify their current loan if their mortgage was being held by Fannie Mae or Freddie Mac. For more information, including further qualifications, as well as a self assessment tool to view your mortgage refinance eligibility under the "Making Home Affordable" program, you can visit the following government website: http://makinghomeaffordable.gov/
Additionally, on May 6, 2009, the President signed P.L. 111-22, the Helping Families Save Their Homes Act of 2009. This law expands the eligibility for the Hope for Homeowners program and offers $300 billion in aid to homeowners, enabling more people to qualify for financial relief. It also modifies the federal Homelessness and Rapid Re-Housing Program to allow occupants leasing foreclosed property to remain on the premises for the remainder of their lease and permitting those without a lease to stay on the property for ninety days after foreclosure without risk of eviction. Please be assured that I will continue to monitor this critical issue and will work to ensure the federal government takes appropriate action to deliver needed assistance to home owners.
Thank you again for sharing your thoughts with me. Please feel free to contact me on this or any other matter of concern.
Sincerely,
John McCain
United States Senator
JM/dba
Monday, October 19, 2009
EXTENSION OF THE HOMEBUYER TAX CREDIT
The following is from Senator Kyl's office. According to Senator's Kyl's legislative counsel, the following is being circulated by lobbyists regarding the homebuyer tax credit:
Homebuyer credit extension and expansion to pass the Senate. The Senate is lining up to pass a $16.7 b. six-month extension of the first-time homebuyer credit with an expansion to include all homebuyers and a doubling of the present law income limits to $300,000 for couples and $150,000 for individuals. Senators Johnny Isakson (R-GA) and Chris Dodd (D-CT) plan to offer their amendment to the unemployment extension bill the Senate may take up next week. A similar effort fell short by a vote of 47-50 on August 6, 2009. Senate MajorityLeader Harry Reid (D-NV), several other Democrats, and most Republicans support the amendment too. So far, the amendment seems slated to pass without paying for it, although Republicans will push an amendment to require stimulus funds to be reprogrammed to pay for it.
Homebuyer credit extension and expansion to pass the Senate. The Senate is lining up to pass a $16.7 b. six-month extension of the first-time homebuyer credit with an expansion to include all homebuyers and a doubling of the present law income limits to $300,000 for couples and $150,000 for individuals. Senators Johnny Isakson (R-GA) and Chris Dodd (D-CT) plan to offer their amendment to the unemployment extension bill the Senate may take up next week. A similar effort fell short by a vote of 47-50 on August 6, 2009. Senate MajorityLeader Harry Reid (D-NV), several other Democrats, and most Republicans support the amendment too. So far, the amendment seems slated to pass without paying for it, although Republicans will push an amendment to require stimulus funds to be reprogrammed to pay for it.
Monday, September 21, 2009
Simple Real Estate Definitions: Quitclaim Deed
By: Scott Merrill of Lebaron & Carroll Financial
By its most common definition, a quitclaim deed is a document by which one person passes legal and financial ownership of a home to another person. It's also a way for an owner of a home to remove himself from the title to the property. Often misspelled as "quick claim deed" or "quit claim deed", quitclaim deeds have a multitude of applications, including:
* Assigning a home to a trust or entity
* Adding a partner to title after marriage
* Removing a partner from title after divorce
In order to quitclaim a property, the grantor must have the legal right to assign the property to a grantee, or else the quitclaim deed is worthless. For example, you can quitclaim your interest in City Hall to your neighbor, but it would have no practical or legal consequence because you don't actually own City Hall. This is where quitclaim deeds vary from warranty deeds (or grant deeds) -- the types of transfers that occur when real estate is sold. In instances of the former, the title to a home is guaranteed to be clear.
Before using a quitclaim deed on your own home, consult an estate planning attorney. Transferring real property can trigger ruin a will, or trigger taxes -- it's important to consult a professional for help.
By its most common definition, a quitclaim deed is a document by which one person passes legal and financial ownership of a home to another person. It's also a way for an owner of a home to remove himself from the title to the property. Often misspelled as "quick claim deed" or "quit claim deed", quitclaim deeds have a multitude of applications, including:
* Assigning a home to a trust or entity
* Adding a partner to title after marriage
* Removing a partner from title after divorce
In order to quitclaim a property, the grantor must have the legal right to assign the property to a grantee, or else the quitclaim deed is worthless. For example, you can quitclaim your interest in City Hall to your neighbor, but it would have no practical or legal consequence because you don't actually own City Hall. This is where quitclaim deeds vary from warranty deeds (or grant deeds) -- the types of transfers that occur when real estate is sold. In instances of the former, the title to a home is guaranteed to be clear.
Before using a quitclaim deed on your own home, consult an estate planning attorney. Transferring real property can trigger ruin a will, or trigger taxes -- it's important to consult a professional for help.
Tuesday, September 15, 2009
Inspections for New Builds: It's Imperative!
Reasons a New Home May Be Poorly Constructed
article from Advantage Inspection Service: azinspect.com
Even the most conscientious home builder has obstacles to perfection. Of course, perfection can be relative and subjective as it relates to a new home. However, as in all meaningful endeavors, perfection should be the target. Following are a few barriers to perfection within the home building industry.
Production Cost vs. Quality
Every new home builder is keenly aware of the costs to purchase land and complete a structure at a price that the market will bear. Competition within the home building industry is fierce. Market forces compel every home builder to walk the fine line between quality and cost. Most Arizona home buyers are unwilling to pay for the level of quality seen in other parts of the country. Therefore market forces prevail.
Material Design Considerations
Each component and system designed for the home has one common element. It is engineered to cost a minimum to produce, while still being able to serve its intended function. This condition can be a problem because actual installation conditions are not always according to the manufacturer specifications. As an example, many of the problems related to polybutylene plumbing systems are a direct result of a product engineered with too much emphasis on cost reduction, and too little tolerance for imperfect field installation practices.
Lack of Substantial Oversight
The process of building a structure is a complex endeavor involving many specialized trades and materials. The general contractor or superintendent oversees all activities while placing trust in the individual subcontractors for day-to-day oversight. It may seem that with the various levels of supervision, including municipal code inspections, mistakes during construction are non-existent. This is unfortunately not the case.
As long as humans are involved in the construction process there will be defects in every house. Individual workers and sub-contractors come and go, creating potential for significant errors. Code inspectors are overworked. Some tradesmen are under-skilled and others just don't care about the quality of the finished product.
Fraud and Incompetence
As in any profession, a certain percentage of fraudulent activities exist. Unlicensed contractors and sub-contractors place the Buyer and Realtor at substantial risk. Relief is not available from the Registrar of Contractors Recovery Fund for mistakes made by unlicensed contractors. Protracted legal battles are the result. Go to www.rc.state.az.us to check on the status of a contractor's license. the matter of incompetence can also be a problem. It can be present anywhere from the lowest to the highest levels within any organization. With the home builder example, the problem is magnified if the supervisory personnel are also under-skilled or share in the lack of commitment to quality.
New Home inspections
Every new home should be inspected by a competent, independent inspector. Unlike the municipal code inspector, an independent home inspector will view the home as a composite of inter-related systems and determine where problems exist or are likely to occur. Standards of the professional home inspector are as specified by the American Society of Home Inspectors (ASHI). Inspections will address electrical, plumbing, heating & cooling, roof, and structural concerns. Not all home inspectors have the necessary experience to perform a new home inspection.
Fees for inspectors can vary widely based on the number of visits, drive time, size of the structure, and need for additional services. All new home inspection pricing should be determined up front. Suggested minimum services are a final only inspection, a 2-stage inspection (just before wall insulation is installed and a final), or additional visits as required. Supplementary services can include contractor license investigations and builder negotiation.
Bottom Line
Every home purchased, either new or re-sale, represents a very significant investment. A new home has the unique feature of allowing defects to be corrected during the appropriate stages of construction by the appropriate personnel. Having an independent inspection performed on a new or re-sale home is the intelligent thing to do.
article from Advantage Inspection Service: azinspect.com
Even the most conscientious home builder has obstacles to perfection. Of course, perfection can be relative and subjective as it relates to a new home. However, as in all meaningful endeavors, perfection should be the target. Following are a few barriers to perfection within the home building industry.
Production Cost vs. Quality
Every new home builder is keenly aware of the costs to purchase land and complete a structure at a price that the market will bear. Competition within the home building industry is fierce. Market forces compel every home builder to walk the fine line between quality and cost. Most Arizona home buyers are unwilling to pay for the level of quality seen in other parts of the country. Therefore market forces prevail.
Material Design Considerations
Each component and system designed for the home has one common element. It is engineered to cost a minimum to produce, while still being able to serve its intended function. This condition can be a problem because actual installation conditions are not always according to the manufacturer specifications. As an example, many of the problems related to polybutylene plumbing systems are a direct result of a product engineered with too much emphasis on cost reduction, and too little tolerance for imperfect field installation practices.
Lack of Substantial Oversight
The process of building a structure is a complex endeavor involving many specialized trades and materials. The general contractor or superintendent oversees all activities while placing trust in the individual subcontractors for day-to-day oversight. It may seem that with the various levels of supervision, including municipal code inspections, mistakes during construction are non-existent. This is unfortunately not the case.
As long as humans are involved in the construction process there will be defects in every house. Individual workers and sub-contractors come and go, creating potential for significant errors. Code inspectors are overworked. Some tradesmen are under-skilled and others just don't care about the quality of the finished product.
Fraud and Incompetence
As in any profession, a certain percentage of fraudulent activities exist. Unlicensed contractors and sub-contractors place the Buyer and Realtor at substantial risk. Relief is not available from the Registrar of Contractors Recovery Fund for mistakes made by unlicensed contractors. Protracted legal battles are the result. Go to www.rc.state.az.us to check on the status of a contractor's license. the matter of incompetence can also be a problem. It can be present anywhere from the lowest to the highest levels within any organization. With the home builder example, the problem is magnified if the supervisory personnel are also under-skilled or share in the lack of commitment to quality.
New Home inspections
Every new home should be inspected by a competent, independent inspector. Unlike the municipal code inspector, an independent home inspector will view the home as a composite of inter-related systems and determine where problems exist or are likely to occur. Standards of the professional home inspector are as specified by the American Society of Home Inspectors (ASHI). Inspections will address electrical, plumbing, heating & cooling, roof, and structural concerns. Not all home inspectors have the necessary experience to perform a new home inspection.
Fees for inspectors can vary widely based on the number of visits, drive time, size of the structure, and need for additional services. All new home inspection pricing should be determined up front. Suggested minimum services are a final only inspection, a 2-stage inspection (just before wall insulation is installed and a final), or additional visits as required. Supplementary services can include contractor license investigations and builder negotiation.
Bottom Line
Every home purchased, either new or re-sale, represents a very significant investment. A new home has the unique feature of allowing defects to be corrected during the appropriate stages of construction by the appropriate personnel. Having an independent inspection performed on a new or re-sale home is the intelligent thing to do.
Friday, September 4, 2009
Improve Your Credit Rating First
If you are new to the home buying process there are a few things you should do prior to applying for a loan. Start by checking your 3 credit reports and FICO scores. By doing this you can dispute any discrepancies. Be diligent when dealing with a dispute. You can obtain FREE reports and FICO scores from all 3 credit bureaus:
TransUnion
Equifax
Experian
at Web sites such as IdentityGuard.com
If you don't cancel during the free trial period you will pay a monthly fee.
When creditors make an inquiry it could negatively impact your score. This is why you should check first. If you need help with the dispute process feel free to contact me.
TransUnion
Equifax
Experian
at Web sites such as IdentityGuard.com
If you don't cancel during the free trial period you will pay a monthly fee.
When creditors make an inquiry it could negatively impact your score. This is why you should check first. If you need help with the dispute process feel free to contact me.
Tuesday, September 1, 2009
The Truth about $8,000 Homebuyer Tax Credit
Dear Procrastinating Homebuyer:
As you know the $8,000 First-Time Homebuyer credit expires December 1st. There are far more pressing deadlines to be dealt with than looking for a home. I know you are busy, but you need to know December 1st is the wrong date.
To be eligible for the tax credit you have to take possession of your new home by December 1st. It used to take about 30 days to close a loan. Those were the good ol' days. Now-a-days it will take at least 45 days to close. With that in mind, October 16th is the real deadline. Many properties in this market are short sales that take anywhere from 2 weeks to 3 months or more for a response. I recommend steering clear of them if you want to meet the deadline.
Inventories are declining and prices are stabilizing. Although it is unknown what the future of this recession holds in store for you, it is a good idea to consider investing in your future. Historically home values double every 10 years.
Allow me to clarify. Your offer needs to be accepted by October 16th in order to allow enough time for escrow. Anyone that has not owned a home as a primary residence in the past 3 years is eligible.
Contact me when your ready.
As you know the $8,000 First-Time Homebuyer credit expires December 1st. There are far more pressing deadlines to be dealt with than looking for a home. I know you are busy, but you need to know December 1st is the wrong date.
To be eligible for the tax credit you have to take possession of your new home by December 1st. It used to take about 30 days to close a loan. Those were the good ol' days. Now-a-days it will take at least 45 days to close. With that in mind, October 16th is the real deadline. Many properties in this market are short sales that take anywhere from 2 weeks to 3 months or more for a response. I recommend steering clear of them if you want to meet the deadline.
Inventories are declining and prices are stabilizing. Although it is unknown what the future of this recession holds in store for you, it is a good idea to consider investing in your future. Historically home values double every 10 years.
Allow me to clarify. Your offer needs to be accepted by October 16th in order to allow enough time for escrow. Anyone that has not owned a home as a primary residence in the past 3 years is eligible.
Contact me when your ready.
Friday, August 28, 2009
The Ugly Truth About Appraisals
April and May's increase in home sales have been the first back-to-back monthly home sales increase since September of 2005. Housing affordability is at historically high levels. So why haven't we seen a true housing recovery yet? According to Lawrence Yun, NAR Chief Economist, unemployment and new appraisal laws are to blame.
Distressed homes often sell for 20% less than traditional homes, however, some appraisals are not distinguishing between the two. Appraisers outside of the local area are being hired by lenders and may not take into consideration the unique qualities of a home. Moreover, changes in appraisal rules are leading to longer escrows. This can be seen in the continuous increase of pending home sales. These days, whether you are buying or selling, you may need to have more than one appraisal to back up your position. The quality of your appraisal is important. Real estate is local. Be sure to have your appraisal conducted by a local expert.
Distressed homes often sell for 20% less than traditional homes, however, some appraisals are not distinguishing between the two. Appraisers outside of the local area are being hired by lenders and may not take into consideration the unique qualities of a home. Moreover, changes in appraisal rules are leading to longer escrows. This can be seen in the continuous increase of pending home sales. These days, whether you are buying or selling, you may need to have more than one appraisal to back up your position. The quality of your appraisal is important. Real estate is local. Be sure to have your appraisal conducted by a local expert.
Wednesday, August 12, 2009
Remember the 3 R's - Green tips for Moms
It seems that all of the cleaning solution companies are claiming to be going green these days. All you need is baking soda, borax, vinegar and lemon juice to clean just about anything in your home. For recipes on homemade cleaning solutions click here. You don't have to purchase overpriced products.
Clothes made from organic cotton and recycled materials may sound better for the planet but making clothes, packaging clothes and shipping clothes takes precious and non-renewable energy. For Green clothing use, hand-me-downs. By buying used clothing you are recycling, reusing and reducing all at the same time. What could be better for the planet. I understand that most adults will not shop at thrift stores, but trust me your little ones don't care where their clothes come from.
The world’s clean water supply is rapidly depleting. For tips on conserving water click here
Store rain water to water the garden and lawn. You can also use used coffee grounds to fertilize plants!
Clothes made from organic cotton and recycled materials may sound better for the planet but making clothes, packaging clothes and shipping clothes takes precious and non-renewable energy. For Green clothing use, hand-me-downs. By buying used clothing you are recycling, reusing and reducing all at the same time. What could be better for the planet. I understand that most adults will not shop at thrift stores, but trust me your little ones don't care where their clothes come from.
The world’s clean water supply is rapidly depleting. For tips on conserving water click here
Store rain water to water the garden and lawn. You can also use used coffee grounds to fertilize plants!
Thursday, August 6, 2009
Neighborhood Stabilization Program - Phoenix
NSP Homeownership Assistance funds are available for down payment and closing cost assistance for eligible buyers. The NSP Homeownership Assistance Program provides a $15,000 loan for down payment and closing cost assistance for buyers of foreclosed homes anywhere in the city of Phoenix. The full amount of the loan is paid back to the city when the buyer sells the home or refinances. All loans are forgivable after a period of time based on the amount of the loan. All loans are zero percent interest with no monthly payment. Homes must meet HUD Housing Quality Standards.
Determining Eligibility:
Free money is real and available. Take advantage of it!
Determining Eligibility:
- Eligible families can earn up to 120% of the area median income- Find Area Median Income Data
- Be FHA creditworthy
- Complete 8 hour Homeownership Education and Credit Counseling
- Property must be maintained as primary residence
Free money is real and available. Take advantage of it!
Sunday, August 2, 2009
How's your A/C working?
Has your air conditioning unit been cooling your home this summer? If your unit is constantly running and your home still does not seem to cool off you should contact an honest AC contractor. My contractor has been to my home twice this summer. He determined that the problem was not the unit, but the insulation. The ceiling was 102 degrees! He advised me to have the insulation in the roof evaluated. The insulation contractors determined that the insulation I had was R-19. R-49 is recommended for roofs.
R-value is the measure of a material's ability to resist heat conduction. The greater the material's R-value, the better it performs as an insulator.
If you are a do it yourself person and do not wish to hire a contractor you can find instructions at Lowes.com. However, after doing my research I found that it was actually less expensive to hire the professionals.
By properly insulating your home you will reduce energy costs and live more comfortably.
R-value is the measure of a material's ability to resist heat conduction. The greater the material's R-value, the better it performs as an insulator.
If you are a do it yourself person and do not wish to hire a contractor you can find instructions at Lowes.com. However, after doing my research I found that it was actually less expensive to hire the professionals.
By properly insulating your home you will reduce energy costs and live more comfortably.
Monday, July 27, 2009
2009 HOME BUYER TAX CREDIT
The first-time home buyer tax credit is set to expire December 1, 2009. The national median home price rose $7,000 last month, so if you are considering waiting for the market to "bottom out" it may have already done so.
- The $8,000 tax credit is not only for first-time buyers. If you have not owned a primary residence in the past 3 years you also qualify.
- The home may not be purchased from a family member.
- The credit is limited to 10% of the purchase price or $8,000, whichever is less.
- You must repay the credit only if the home ceases to be your primary residence within the first 3 years.
- You can not claim the credit if you adjusted gross income is $95,000 or more ($170,000 if married filing jointly)
Monday, July 20, 2009
What is a Short Sale?
To "short sale" your home means to sell it for less than what is owed to the lender. In other words to sell your home short of what is owed. It is an alternative to foreclosure, but is less traumatic to your credit than a foreclosure. If you are struggling to make mortgage payments you should list your home with a reputable Realtor as soon as possible. If your Realtor advises you that your home is likely to sell for less than what you owe contact your lender's "workout" department immediately. Ask for the loss and mitigation department and have a short sale package mailed to you.
- Authorize your Realtor in writing to work and to negotiate directly with your lender.
- Make sure your Realtor includes a cover letter that explains the buyers qualifications. If the buyer is asking for concessions explain why.
- Write a hardship letter. Present your finances in the worst light. Explain any illness, death in the family, loss of job, etc.
- Make sure the package is thorough! The lender will want to see: the offer to purchase your home, your hardship letter, a balance sheet with your monthly income and expenses, a net sheet, 2 months worth of pay stubs, 2 months worth of bank statements, 2 years tax returns, etc.
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