Katie's Real Estate Corner

Last Chance for Tax Credit!

2010-03-18T12:32:00.000-07:00

End looms for homebuyer tax credit

The spring rush is upon us, just in time for buyers to lock in interest rates before they're expected to rise.

Posted by Mai Ling at MSN Real Estate on Wednesday, March 17, 2010 12:21 PM

Go ahead and blame the late winter storms if you've let the April 30 deadline for the homebuyer tax credit sneak up on you.

Back in November when the tax credit was extended just before it was set to expire, buyers-to-be were probably eagerly awaiting the chance to shop for homes in sunny spring rather than in the chill of winter.

Sellers need to get a move on, too

But Move.com warns that you had better be even further along in the process than that if you want to qualify for the credit, which requires buyers to be in contract for a home by the end of April, and for the deal to close by June 30.

The first step is to get pre-qualified for a loan -- there's little time to be looking at homes you can't afford if you find out later they're out of your price range.

9 real-estate deal breakers that could force you to start your search all over again

And unfortunately, that alone isn't as easy as it used to be because of tighter lending standards, says The Wall Street Journal in an article outlining some of the problems for buyers who want to take advantage of the program, which offers up to $8,000 for first-time buyers and up to $6,500 for move-up buyers:

To qualify for a mortgage, you will need a job and at least two recent pay stubs. You also will be asked for two years of W-2 forms, proof of other assets and either your tax return or a form allowing the lender to get your return from the Internal Revenue Service. That means that items that reduce your adjusted gross income, like business expenses or IRA contributions, can reduce the loan for which you qualify.

That might sound basic to some of you, but with unemployment still hovering near 10%, it can be hard for some buyers -- such as freelance workers or those who make the majority of their pay in tips -- to prove their income.

And these tighter lending restrictions combined with an evolving real-estate market have created an even tougher situation for many homebuyers.

House flipping makes a comeback

For instance, in the Sun Belt and other areas where home values have dropped tremendously, bidding warswith cash-rich investors have made it hard for traditional buyers to even find an affordable home, which also can make it a challenge for the agreed-upon price and the appraisal to meet.

If the appraisal comes in lower than the home price, somebody has to make up the difference for the buyer to qualify for the loan. And sometimes, the buyer will simply walk away from the deal, which this late in the taxcredit game can prevent you from qualifying for the program.

Need to buy in a rush? Here's how

Another Wall Street Journal article also warns that buyers who don't find their dream home soon may be stuck with higher mortgage interest rates.

By the end of the year, rates could rise from their 5% range to close to 6%, some analysts say. From the article:

If rates do go up sharply, that will have a big effect on homebuyers. Richard Redmond, a mortgage adviser at All California Mortgage in Larkspur, Calif., offers the example of a couple with combined pretax income of $100,000 a year and debt obligations (excluding mortgage) of $500 a month. At a 5% mortgage rate, he figures, the couple could qualify for a loan big enough to buy a $590,000 house, assuming a 20% down payment. At 6%, that would fall to $540,000.

Of course, it's also been argued that the tax credit combined with low interest rates have artificially inflated home prices so that you could potentially get a better deal on a home after the tax credit expires.

But it's hard for some people to resist a tax credit, and if that's you, keep your eye on the calendar. Time's a tickin'.

9 real-estate deal breakers

2010-02-19T06:20:00.001-08:00

BUYERS! Check out this great article from MSN real estate:

http://realestate.msn.com/article.aspx?cp-documentid=23460653&page=0#atoolb

FHA Policy Changes Announced

2010-01-21T08:20:00.001-08:00

FHA ANNOUNCES POLICY CHANGES TO ADDRESS RISK AND STRENGTHEN FINANCES

New Measures Will Help FHA Better Manage Risk, While Maintaining Support for the Housing Market and Access for Underserved Communities

WASHINGTON – Federal Housing Administration (FHA) Commissioner David Stevens today announced a set of policy changes to strengthen the FHA’s capital reserves, while enabling the agency to continue to fulfill its mission to provide access to homeownership for underserved communities. The changes announced today are the latest in a series of changes Stevens has enacted in order to better position the FHA to manage its risk while continuing to support the nation’s housing market recovery.

The FHA will propose to take the following steps: increase the mortgage insurance premium (MIP); update the combination of FICO scores and down payments for new borrowers; reduce seller concessions to three percent, from six percent; and implement a series of significant measures aimed at increasing lender enforcement. U.S. Housing and Urban Development Secretary Shaun Donovan previewed the changes in December of last year, noting that the FHA would announce additional details before the end of January.

“Striking the right balance between managing the FHA’s risk, continuing to provide access to underserved communities, and supporting the nation’s economic recovery is critically important,” said Commissioner Stevens. “When combined with the risk management measures announced in September of last year, these changes are among the most significant steps to address risk in the agency’s history. Additionally, by continuing to provide affordable, responsible mortgage products, FHA will support the housing market’s recovery. Importantly, FHA will remain the largest source of home purchase financing for underserved communities.”

Announced FHA Policy Changes:

Mortgage insurance premium (MIP) will be increased to build up capital reserves and bring back private lending

The first step will be to raise the up-front MIP by 50 bps to 2.25% and request legislative authority to increase the maximum annual MIP that the FHA can charge.
If this authority is granted, then the second step will be to shift some of the premium increase from the up-front MIP to the annual MIP.
This shift will allow for the capital reserves to increase with less impact to the consumer, because the annual MIP is paid over the life of the loan instead of at the time of closing
The initial up-front increase is included in a Mortgagee Letter to be released tomorrow, January 21st, and will go into effect in the spring.

Update the combination of FICO scores and down payments for new borrowers.

New borrowers will now be required to have a minimum FICO score of 580 to qualify for FHA's 3.5% down payment program. New borrowers with less than a 580 FICO score will be required to put down at least 10%.
This allows the FHA to better balance its risk and continue to provide access for those borrowers who have historically performed well.
This change will be posted in the Federal Register in February and, after a notice and comment period, would go into effect in the early summer.

Reduce allowable seller concessions from 6% to 3%

The current level exposes the FHA to excess risk by creating incentives to inflate appraised value. This change will bring FHA into conformity with industry standards on seller concessions.
This change will be posted in the Federal Register in February, and after a notice and comment period, would go into effect in the early summer.

Increase enforcement on FHA lenders

Publicly report lender performance rankings to complement currently available Neighborhood Watch data - Will be available on the HUD website on February 1.

This is an operational change to make information more user-friendly and hold lenders more accountable; it does not require new regulatory action as Neighborhood Watch data is currently publicly available.

Enhance monitoring of lender performance and compliance with FHA guidelines and standards.

Implement Credit Watch termination through lender underwriting ID in addition to originating ID.
This change is included in a Mortgagee Letter to be released tomorrow, January 21st, and is effective immediately.

Implement statutory authority through regulation of section 256 of the National Housing Act to enforce indemnification provisions for lenders using delegated insuring process

Specifications of this change will be posted in March, and after a notice and comment period, would go into effect in early summer.

HUD is pursuing legislative authority to increase enforcement on FHA lenders. Specific authority includes:

Amendment of section 256 of the National Housing Act to apply indemnification provisions to all Direct Endorsement lenders. This would require all approved mortgagees to assume liability for all of the loans that they originate and underwrite
Legislative authority permitting HUD maximum flexibility to establish separate "areas" for purposes of review and termination under the Credit Watch initiative. This would provide authority to withdraw originating and underwriting approval for a lender nationwide on the basis of the performance of its regional branches

In addition to the changes proposed today, the FHA is continuing to review its overall response to housing market conditions, and continuing to evaluate its mortgage insurance underwriting standards and its measures to help distressed and underwater borrowers through FHA/HAMP and other FHA initiatives going forward.

Source: HUD, KFGO News Center

The Importance of the Preapproval

2010-01-17T18:12:00.000-08:00

The following is an article that the Kansas City Star ran recently, and one that I believe is well-worth repeating!

Preapproval is an important first step

You need to make sure you can get a mortgage, and know exactly how much you'll be allowed to borrow, before you start house hunting.

A few years ago, anyone with a pulse could qualify for a mortgage as lenders recklessly lowered their standards during the housing boom.

Now banks and mortgage companies are rejecting about half of all borrowers because they don't meet increasingly difficult demands for higher credit scores, bigger incomes and fewer debts.

Asking to be preapproved for a mortgage is your first chance to find out where you stand.

You fill out an application that asks how much you make, how much you've saved and how much you owe on everything from cars to school loans to credit cards.

The lender evaluates that info, checks your credit reports and credit scores, and replies with a letter that says you can qualify for a mortgage and how much it's willing to loan.

The process is usually free, and being preapproved boosts your credibility with real estate agents and sellers who don't want to waste their time on buyers who may not be able to get financing.

Indeed, if you're looking for a good deal -- and who isn't? -- you stand a better chance of your offer being accepted if you've been preapproved. It's harder to turn down a sure thing.

Don't settle for being prequalified -- otherwise known as "preapproval light."

That means the lender took your word for everything and didn't pull your credit history or scores. It doesn't really say much about your ability to get a loan, and sellers consider it to be meaningless.

Here's how to get an actual loan preapproval:

Step 1. Check and fix your credit reports.

Your credit history plays a huge role in winning approval for a mortgage. You want to see it before any lender does.

You are entitled by law to a free credit report from each of the three major credit reporting agencies every year. To get all three reports, go to www.annualcreditreport.com.

Credit reporting agencies don't check the information given to them by credit card companies, utilities or other companies. According to a survey by the Government Accounting Office, nearly three-quarters of all credit reports contain at least one error.

Check every entry on every report for accuracy. Then contact the reporting agency to correct any mistakes. Each credit report tells you how to do this.

You can't ask the reporting agency to remove legitimate black marks on your credit report, such as missed or late payments, repossessions, foreclosures or bankruptcies.

But you can attach a written statement to your credit report explaining your side of the story. For example, describe how an illness, injury, or unemployment caused a financial crisis or that a late payment was caused by an online banking error.

Step 2. Assemble your paperwork.

Use our mortgage checklist to gather all the documentation you'll need for an application.

You'll need lots of information from those documents to complete the application. The lender should ask for at least some pay stubs, credit card bills, bank or retirement plan statements.

Step 3. Pick a lender.

The best loan for most buyers is a traditional 30-year, fixed-rate mortgage with no points and fees of $2,000 or less.

These are safe, totally predictable loans that carry none of the risks associated with interest-only or adjustable-rate mortgages. You'll never have to worry about interest rates going up, principal payments kicking in or any other nasty surprises that could drive up your housing costs a few years down the road.

Use our extensive database of mortgage rates to find a bank or mortgage company offering the best deal.

You don't have to get your loan from the lender that preapproves you, but you'll be one step ahead if you do.

Step 4. Apply for preapproval.

Whether you apply in person or online, through a bank or a mortgage company, the information you'll have to provide is pretty much the same. You'll be asked:

For your street address, e-mail address, phone and Social Security number. If you've lived at your current address for less than three years, the lender will want to know where you lived before that. If you are buying this home with someone else, they'll probably want to know your relationship to any co-borrowers.
Whether you currently rent, own or live with family.
How many dependents you have.
Your annual income.
Your occupation, employer and how long you've worked there. If you've been with the company for less than two years, it will ask where you worked previously.
Your assets -- what you own and what it is worth. This includes your current home and other property, checking and savings accounts, stocks, bonds and retirements accounts.
Your liabilities -- how much you owe, to whom and how much you pay every month.
Whether you have filed for bankruptcy in the last 10 years.
Whether you are behind on any bills.
Whether you are a first-time buyer.
Whether you are buying a home as a residence or rental property or, in the case of a duplex or other multifamily unit, both.
You should get preapproval in one to two weeks. The more complicated your finances, the longer it will take.

You may be asked to clarify or provide additional information by phone, e-mail, fax, or traditional mail.

Step 5. Start hunting for that dream house.

When you find out how much you can borrow, you're ready to start house hunting.

Preapproval usually comes with a 30- to 90-day time limit. Most lenders will run another credit check and extend the offer if necessary.

By Sally Herigstad

Interest.com Contributing Editor

interest.com - 2009-12-10

New Year's Resolutions for Your Home!

2009-12-31T00:25:00.001-08:00

Make Your Case for a Property Tax Reduction
To successfully challenge a real estate assessment and lower your property tax bill, you need to do a bit of sleuthing first. Read
A Financial Plan for Your Home
A house is probably the biggest investment you’ll ever make. Create a financial plan that takes into account repairs, upgrades, mortgages, insurance, and taxes. Read
Create a Home Emergency Preparedness Kit
Having a plan for an emergency and creating a preparedness kit that’s tailored to your needs could be the key to your family’s safety if disaster strikes. Read
Homeowners Insurance: Time for an Annual Check-Up
An annual check-up on your homeowners insurance can result in a healthier policy and a healthier pocketbook. Read
Your CLUE Insurance Report Matters
Your homeowners claims don’t disappear after your insurer cuts a check because CLUE reports keep them alive for seven years—and that could cost you. Read

Visit houselogic.com for more articles like this.

Obscure Facts about the Home Buyer Tax Credit

2009-12-19T11:14:00.000-08:00

I certainly learned a few things reading this fascinating article. Thought you might also benefit from it. Especially if you are considering purchasing a multifamily residence...

From: www.brokeragentsocial.com

Published on Tuesday, November 17, 2009, 8:41 AM Last Update: 2 day(s) ago by Karen Deis

Category: All Articles » Economy and Politics » Housing Sector

The IRS gets the final say when it comes to who gets to claim the homebuyer tax credit, who does not, and under what circumstances.

They have made a feeble attempt to update some of the FAQs posted on their websitehttp://www.irs.gov/newsroom/article/0,,id=206291,00.html but if it's anything like the last extension, it will take them a while to update their FAQ page.

However, there are some little-known "interpretations" that most loan officers, real estate agents and even tax advisors dont know about.

1. When a FTHB buys a 2-4-family home, and occupies one of the units as their personal residence, they are only allowed to claim 10% (or $8000 max) of the unit they OCCUPY--not the entire sales price. Example: If the FTHB bought a duplex for $120,000 and the units are identical, the "cost basis" is $60,000 and the tax credit they can claim would be $6,000.

2. Income limits are based on ADJUSTED GROSS INCOME.

3. Income CAN Exceed $125,000 (single) and $225,000 (married) by up to $20,000 and FHTB & Long-term Residences can still get a partial tax credit based upon a "MAGI formula" created by the IRS.

4. New Construction - the "date of purchase" is considered the "date" the FTHB OCCUPIES the property--not the closing date or the start-or-construction date.

5. Homes sold on "Land Contract or Contract for Deed" to a FTHB can QUALIFY for a tax credit if they meet 7 tests listed on the FAQs.

6. Tax credit is not available for FTHB in US Territories--only the 50 states.

Happy Halloween!

2009-10-30T12:49:00.000-07:00

Tomorrow is the big day where thousands of kids (and their parents) will be going door to door (and HOUSE to HOUSE) looking for treats.

If your home is currently on the market, take advantage of the extra traffic by handing out property-information brochures (with candy!) and/or your Realtor's card.

And if you are out with your kids trick-or-treating tomorrow night and see a home for sale that you like, be sure to give me a call so I can arrange a private showing for you. If you're tired of your home's "tricks," TREAT yourself to a new home for Christmas! :-)

Meanwhile, check out NPR's great article, Three Hauntingly Unforgettable Literary Houses, by Laura Miller.

Hope you and your family have a DELIGHTFUL and SAFE Halloween!

Fall Home Maintenance Tips!

2009-10-19T12:47:00.000-07:00

The forecast is calling for a beautiful week and weekend here in the Kansas City area. So it will be the perfect time to get out there and do some fall home maintenance that will keep your house in good shape through the winter. Check out this video for some excellent pointers:

Fall into Home Maintenance!

2009-10-13T06:19:00.000-07:00

With the fall and winter months upon us, now is the time to do some routine maintenance around your home to prepare for the changing weather ahead. Taking the time to do some work now may save on some major expenses later. Some of these tasks can be performed by you, and some may need to be done by a professional.

Outside your home

Clear debris out of window wells, gutters, downspouts, and storm drains.
Remove garden hoses from spouts. Drain and store for the winter. Wrap spouts in insulation.
Drain in-ground sprinkler systems.
Check windows, doors, and siding for holes and cracks. Caulk as necessary.
Check weather stripping on windows and doors for fit and condition. Replace as necessary.
Inspect all soffit vents and other venting systems to make sure they're clear of debris.
Check painted surfaces for paint failure, water damage, or mildew. Repair or repaint if needed.
Check caulking where two different materials meet, where wood siding joins the foundation wall, at inside corners, and where the window and door trim meets the siding.
Check for broken or cracked glass and damaged screens or storm windows. Check for loose putty around glass panes. Repair glass if necessary.
Insulate outdoor faucets, pipes in unheated garages, and pipes in crawl spaces with materials such as rags or newspapers.

Have a heating professional check your heating system every year. Replace your furnace filter.
Woodburning stove connector pipes and chimneys should be inspected by a certified chimney sweep at least annually.
Make sure you have proper insulation in both your attic and basement. While checking your insulation, if you see any dark, dirty spots, it may indicate you have air leaks coming into your home.
Remove hair from drains in sinks, tubs, and showers.
Test all smoke alarms. Replace batteries as necessary.
Check your home around windows and doors for air leaks. An easy way to check for leaks is to move a lighter around the window or door frame and see if the flame moves with a breeze. If you find a leak, you can caulk it or you may have to replace the wood frame. Repairing these leaks can save you money on your energy bill during the cold months.
Check for water leaks on the ceiling. Repair if needed.
Make sure there are working nightlights at the top and bottom of all stairs.
Protect your home from frozen pipes. How to do this.
Test your emergency generator.

Read more
To Print Fall Home Maintenance Checklist Click Here

Agent Open House & Luncheon Tomorrow

2009-09-28T15:25:00.000-07:00

Everyone is invited to 129 Shoreline Drive in the desirable Lake of Louisburg subdivision tomorrow to view this beautiful home:

Tuesday, September 29th
11am-1pm

Home Sales Surge!

2009-08-24T11:20:00.000-07:00

wanted to share this great article from NPR...

Home Sales Surge More Than 7 Percent In July
by THE ASSOCIATED PRESS

August 21, 2009

The U.S. housing market is rebounding quicker than expected, with home resales in July posting the largest monthly increase in at least 10 years as first-time buyers rushed to take advantage of a tax credit that expires this fall.

The National Association of Realtors said Friday that home sales rose 7.2 percent to a seasonally adjusted annual rate of 5.24 million in July, from a pace of 4.89 million in June. It was the fourth-straight monthly increase and the highest level of sales since August 2007.

Sales had been expected to rise to an annual pace of 5 million, according to economists surveyed by Thomson Reuters.

"The housing market, with today's strong rise in sales, has decisively turned for the better," said Lawrence Yun, the trade group's chief economist.

Sales of foreclosures and other distressed properties made up about a third of all transactions last month, down from nearly half earlier this year. In places like San Diego and Orlando, buyers are snapping up foreclosed properties at deep discounts, and real estate agents are pressing banks to release more foreclosures onto the market.

Those sales helped drag down the median sales price by 15 percent to $178,400.

First-time buyers must complete their sales transactions by the end of November to take advantage of a tax credit of 10 percent of the purchase price, up to $8,000. The real estate industry is lobbying Congress to get the credit extended.

"It would be unfortunate to see the momentum halted," Yun said.

The inventory of unsold homes on the market rose to 4.1 million, from 3.8 million a month earlier. That's a 9.4-month supply at the current sales pace, unchanged from June

Green Your Home

2009-08-10T10:27:00.000-07:00

A Plethera of Uses for BOUNCE around the House

2009-05-20T12:15:00.001-07:00

The US Postal service sent out a message to all letter carriers to put a sheet of Bounce in their uniform pockets to keep yellow-jackets away.

Use them all the time when playing baseball and soccer. I use it when I am working outside. It really works. The insects just veer around you.

All this time you've just been putting Bounce in the dryer!

1. It will chase ants away when you lay a sheet near them. It also repels mice.

2. Spread sheets around foundation areas, or in trailers, or cars that are sitting and it keeps mice from entering your vehicle.

3. It takes the odor out of books and photo albums that don't get opened too often.

4. It repels mosquitoes. Tie a sheet of Bounce through a belt loop when outdoors during mosquito season.

5. Eliminate static electricity from your television (or computer) screen.

6. Since Bounce is designed to help eliminate static cling, wipe your television screen with a used sheet of Bounce to keep dust from resettling.

7. Dissolve soap scum from shower doors. Clean with a sheet of Bounce.

8. To freshen the air in your home - Place an individual sheet of Bounce in a drawer or hang in the closet.

9. Put Bounce sheet in vacuum cleaner.

10. Prevent thread from tangling. Run a threaded needle through a sheet of Bounce before beginning to sew.

11. Prevent musty suitcases. Place an individual sheet of Bounce inside empty luggage before storing.

12. To freshen the air in your car - Place a sheet of Bounce under the front seat.

13. Clean baked-on foods from a cooking pan. Put a sheet in a pan, fill with water, let sit overnight, and sponge clean. The anti-static agent apparently weakens the bond between the food and the pan.

14. Eliminate odors in wastebaskets. Place a sheet of Bounce at the bottom of the wastebasket.

15. Collect cat hair. Rubbing the area with a sheet of Bounce will magnetically attract all the lose hairs.

16. Eliminate static electricity from Venetian blinds. Wipe the blinds with a sheet of Bounce to prevent dust from resettling.

17. Wipe up sawdust from drilling or sand papering. A used sheet of Bounce will collect sawdust like a tack cloth.

18. Eliminate odors in dirty laundry. Place an individual sheet of Bounce at the bottom of a laundry bag or hamper.

19. Deodorize shoes or sneakers. Place a sheet of Bounce in your shoes or sneakers overnight.

20. Golfers put a Bounce sheet in their back pocket to keep the bees away.

21. Put a Bounce sheet in your sleeping bag and tent before folding and storing them. It will keep them smelling fresh.

22. Wet a Bounce sheet, hose down your car, and wipe lovebugs off easily with the wet Bounce.

Recommended Resource

2009-05-08T13:03:00.001-07:00

The Virgin Homeowner: The Essential Guide to Owning, Maintaining, and Surviving Your Home by Janice Papolos

My review

rating: 4 of 5 stars
I read this book right before Eli and I bought our first house. It was so helpful when we were going through the home inspection process. I felt like I could understand everything the building inspector was telling me!

Now that I am in real estate, I continue to recommend this to all my 1st time home buyers OR anyone who wants to better understand how their house works. It will make you a more competent (& better qualified) home owner!

View all my reviews.

Buy Within Your Means

2009-04-28T13:08:00.001-07:00

It's all too easy to get wrapped up in "the next best thing" - this video highlights why it is important to buy what you can afford!

subprime from beeple on Vimeo.

6 Reasons Why It's Still a Good Time to Buy

2009-04-03T12:30:00.000-07:00

The housing market is looking healthier. Here are six reasons why now is the time to jump into the market.

1. Uncle Sam is willing to help. First-time buyers (defined as anyone who hasn’t owned a home in the last three years) are entitled to a maximum $8,000 tax credit; interest rates are at record lows; and the Federal Reserve is doing its best to make mortgage loans available. (Sign up for a Webinar to learn more about the home buyer tax credit)

2. People have to live somewhere. About 800,000 new households are formed each year in this country, ensuring that the housing market will tighten, even if the economy doesn’t soar.

3. Borrowers leverage their investment. If you put $10,000 into the stock market and it earns 10 percent, you’ve earned $1,000. If you put $10,000 down on a home and its values increases 10 percent, you’ve made $10,000.

4. When prices come back up, you’ll have instant equity. In parts of the country where foreclosures have driven down prices, better times will mean the price of the home you buy will rise rapidly.

5. Mortgage costs stay the same. If you get a fixed-rate mortgage, the monthly payment stays the same – while everything else, including rent, goes upward.

6. You own it. There is something comforting in the notion that your home is your own. You can paint it any color you want, let the dog run in the back yard and hang a swing for the kids in the front.

Source: The Wall Street Journal, June Fletcher (03/27/2009)

The Crisis of Credit Visualized

2009-03-20T12:05:00.000-07:00

The Crisis of Credit Visualized from Jonathan Jarvis on Vimeo.

Home Sweet Home Improvement

2009-03-07T07:31:00.000-08:00

The Coldwell Banker® Network offers tips for upgrading your home and increasing property value:

Whether you are planning to add more rooms, upgrade your kitchen or want to put your home on the market, the Coldwell Banker Network offers some essential home improvement tips to increase the value of your home.

Kitchen makeover. The kitchen is the most popular room in the house to remodel. Most in the industry will tell you money spent upgrading a kitchen produces the highest return on investment. Hot makeover trends include adding dual sinks, cooking stations, bigger dishwashers, under-cabinet lighting, warming ovens and wine coolers. Also consider upgrading all major appliances.

Bathroom fixer-upper. Upgrading a bathroom is another sound choice and will often provide a significant return on investment, as large bathrooms typically top the list for those seeking a new home. Adding skylights, sunken whirlpool baths, or larger showers are other attractive selling features.

Cosmetic touch-ups. A paint job, new double-paned windows, or new carpeting will increase the price of a house virtually dollar-for-dollar. It is important to make sure your home standards are in-line with other houses in the neighborhood. Neutral colors and no clutter make a world of difference! It is vital to look after minor problems such as a leaky faucet or a loose cabinet to guarantee your house doesn't experience any long-term damage. As soon as you notice a problem, fix it sooner than later to help avoid a larger expense down the road.

Home improvement professionals for hire. Whether you need an architect, gardener, interior designer or contractor, it is always important to do a background check prior to hiring a professional. Get references from family or friends and then interview your selection. Important qualities to look for are trust and experience, not initial price.

First Time Homebuyer Tax Credit

2009-02-28T16:01:00.000-08:00

The "American Recovery and Reinvestment Act of 2009” passed the House on February 13, 2009 and was signed into law on February 17 by President Obama. One of the key features of this bill is the improvements made to the First Time Homebuyer Tax Credit. The credit is now truly a credit (it does not require payback as long as you stay in your home for 3 years), in the amount of 10% of your home's sale price up to $8,000.

Read more from realtor.org -

Homebuyer Tax Credit – The bill provides for a $8,000 tax credit that would be available to first-time home buyers for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

Chart Highlighting the Major Modifications to the First-Time Homebuyer Tax Credit> (PDF: 309K)

Frequently Asked Questions (PDF: 483K)

NAR's Presentation: The 2009 First-Time Homebuyer Tax Credit (PDF: 319K)

Sounds pretty good, huh? Well, if you have not owned a home in the past 3 years you are in luck because you qualify! So let's get house hunting!