November 6, 2009
Here are the details:
WHO QUALIFIES
First-time home buyers are eligible for up to $8,000 tax credit and move-up buyers who have owned their home, as their primary residence, for the past 5 consecutive years are eligible for a reduced credit of up to $6,500.
INCOME RESTRICTIONS
The income limits have been raised. Individuals whose incomes are $125,000 or below, and families earning less than $225,000
MAXIMUM PURCHASE PRICE
$800,000
EXTENDED UNTIL
Must be under contract by April 30, 2010 and settle before June 30, 2010.
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Buyers, Financial News | Tagged: buyer, Buyers, first-time homebuyer tax credit, first-time homebuyer, tax credit, homes, $8000, $6500 |
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Posted by Realtor.Dawn
November 4, 2009
SHORT SALES
A short sale happens when the proceeds from a sale of a home are not enough to pay off the seller’s mortgage balance. In other words, the seller has come up short of money. The seller’s lender(s) must approve this type of transaction, as the bank loses money on the loan.
Property values have dropped since their peak in 2005, and that means that many sellers cannot recoup what they paid for the house several years ago. The best option for homeowners would be to hold on to the property until the home appreciates in value, but sometimes the home must be sold quickly due to relocation, death, divorce, etc.
Sometimes the homeowner can no longer afford the monthly mortgage payments due to the rising interest rates of Adjustable Rate Mortgages (ARMs), job loss, illness, unforeseen expenses, and the general downturn of the economy. Many of these sellers were qualified for no-downpayment (100% financing) loans in which they have no equity in the property. In this circumstance, the owner has limited choices, one being to refinance the home (which is not always possible), another being to sell the home, or to let the home go to foreclosure.
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Buyers, Sellers | Tagged: bank owned, bank-owed, foreclosure, Real Estate, real estate owned, REO, short sale, short sales |
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Posted by Realtor.Dawn
October 29, 2009
While not final yet, things are looking good for the first-time home buyer tax credit to be extended. The plan calls for not only extending the contract/closing date for first-time homebuyers, but also allowing repeat buyers to benefit. Here is an article from today’s Wall Street Journal that explains the proposal:
By COREY BOLES and JOHN D. MCKINNON
WASHINGTON — Senate negotiators reached a tentative deal to extend a tax credit for first-time home buyers, but its passage remains uncertain.
The agreement would extend the existing credit for first-time home buyers, worth up to $8,000, while offering a new credit of up to $6,500 for some existing homeowners, Senate aides said. The reduced credit would be available to all home buyers who have been in their current residence for a consecutive five-year period in the past eight years.
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Buyers, Financial News | Tagged: $6500 tax credit, $8000 tax credit, buyer, Buyers, extension, Financial News, first-time homebuyer, first-time homebuyer tax credit, homes, Real Estate, repeat buyers, tax credit, tax credit extension |
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Posted by Realtor.Dawn
October 27, 2009
There is no one-size-fits-all answer. It depends on the availability of homes that meet your criteria. If there are many properties on the market, you’ll probably find something within a month of actively looking. If you are looking for something specific, it can take months (sometimes years) for that property to come on the market.
A good way to establish a timeframe for looking at homes is to work backwards from your ideal move-in date. If you are renting, when does your lease expire? If you are selling first, when is your settlement date? Do you want a few weeks overlap so you can make improvements and take your time to move? Are you flexible?
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Buyers, Real Estate 101, Uncategorized | Tagged: buyer, Buyers, home, home search, homes, looking for homes, timeframe, timeline, when should I buy |
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Posted by Realtor.Dawn
April 8, 2009
Last week, the National Association of Realtors (NAR) released several statistics that suggest a possible uptick in real estate sales activity. First, the Pending Home Sales Index showed a 2.1 percent increase, based on contracts signed in February. In the Northeast, the increase was close to 11 percent.In addition, NAR’s Housing Affordability Index rose to a record high, indicating the most favorable relationship between home prices, mortgage rates and family income since tracking began in 1970. Improved affordability combined with stimulus incentives like the $8,000 tax credit for first-time buyers, means the buying power of a typical family has never been better.
Lawrence Yun, NAR chief economist, expects “home sales to gain momentum in the second half of the year with first-time buyers absorbing a lot of the excess inventory. Under these conditions, we should see price stabilization in most markets by the end of the year.”
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Buyers, General, Sellers | Tagged: buyer, Buyers, DC area market, first-time homebuyer, first-time homebuyer tax credit, General, home sellers, Maryland, MD real estate, Real Estate, seller, Sellers, VA real estate, Weichert |
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Posted by Realtor.Dawn
February 19, 2009
I saw the following commentary in RISMEDIA and felt the need to publish it for all my buyers to read. Many of my buyers are sitting on the fence, waiting for prices to bottom out and to snag the best possible deal. The problem is, you won’t know when the bottom hits until prices have risen! And by that time, where will interest rates be? My husband and I just refinanced from a 5.5% interest rate to 4.75% and that saved us HUNDREDS off our monthly payment. Sure, prices may go down a little bit in the next few months making a nominal change on your monthly payment (add approx. $6 to your monthly payment per each $1,000 of the loan amount), but why risk paying hundreds more with a higher interest rate? Real estate is supposed to be a long-term investment afterall, and your values should appreciate over time. In the end, you should still profit. So don’t get caught up in your indecision and lose sight of why you actually want to buy.
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Buyers |
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Posted by Realtor.Dawn