It's Official! $8,000 Tax Credit Has Been Extended!!!

President Obama signed a bill Friday extending the $8,000 first-time homebuyer tax credit, making it applicable to contracts entered into by April 30, 2010, and closing by June 30, 2010. The bill also includes a new $6,500 tax credit for homebuyers who have previously owned a home, if that home was their primary residence for five consecutive years out of the last eight years. Both the $8,000 credit and the $6,500 credit have expanded buyer income limits, and the cost of the home being purchased is limited to $800,000.

Also Notable:

• Third quarter Productivity increased 9.5%, the fastest pace of growth in six years
• September Pending Home Sales jumped 6% to the highest level since December 2006
• The Treasury will auction a record $81 billion in 3-yr, 10-yr, and 30-yr Treasuries next week
• The Fed purchased $16 billion in agency MBS during the week ending 11/4

Congress Poised to Keep $8000 Homebuyers’ Tax Credit!

After weeks of delay, it looks like the Senate and House are poised to agree on a compromise measure to extend the popular $8,000 tax credit for homebuyers. The Senate might pass its version as early as today, and aides to Congressional leaders say the House could accept it this week, sending the bill to President Obama to sign into law.

The homebuyers’ credit — enacted last year, expanded this year and scheduled to expire Nov. 30 — would be extended to cover homes under contract by April 30. Also, it no longer would be limited to first-time buyers; people who have owned a home for at least five years could get a $6,500 credit on a new residence. Income limits for eligibility would be raised, making many more people qualify. To qualify for the full credit, homebuyers must have adjusted gross income of less than $125,000 ($250,000 for married couples filing jointly). In addition, the credit would only apply to homes sold for $800,000 or less. Contracts to buy a home must be signed by April 30, 2010, and the deals must close by June 30 in order for a buyer to qualify for the credit.

This is great news for buyers and will help the market rebound as people continue to take advantage of this wonderful program!

Read more about it here!

Home Buyer Tax Credit Extension Likely

Extending the First-Time Home Buyer Tax Credit, due to expire at the end of November, is high on the Democratic Congressional to-do list, legislative aides said.

After Wednesday’s meeting with President Obama and House Speaker Nancy Pelosi (D-Calif.), Senate Majority Leader Harry Reid (D-Nev.) released a statement that the government should “continue efforts to strengthen the housing market by extending the home buyer tax credit.”.

Mark Zandi, chief economist at Moody’s Economy.com, who is a consultant to Democrats in the administration and Congress, is advocating extending the credit through August and making it available to all home buyers. He said failure to extend the credit just as more foreclosures enter the market will push housing prices down.

Also, on Thursday, the House is expected pass legislation to extend the credit through 2010 for people who have been out of the country in the military, intelligence, or foreign services.

Source: The New York Times, Jackie Calmes (10/07/2009)

Home Values Rising!

If this isn't a housing recovery, than I don't know what is. For the 6th consecutive month, the S&P/Case-Shiller Index posted strong numbers, a streak that dates back to February 2009. It comes 3 years after an epic collapse that left many wondering if housing would ever recover. It's clear now. Housing will most definitely recover. That said, we can't rely on the Case-Shiller Index alone to tell us that housing has recovered.

This is because the Case-Shiller methodology is fundamentally flawed.

First, it only accounts for 20 U.S. cities which, in turn, represent just 9% of the US population. If you live in one of the cities not covered by Case-Shiller (i.e. Cincinnati, Dayton, Columbus), Case-Shiller has no local meaning to you whatsoever. Omitting 91 percent of the population is a big deal.

But even if you do live in one of the 20 cities, Case-Shiller data is still kind of useless on a micro level. This is because the measurements clump individual city neighborhoods into one group of data. In Chicago, Lincoln Park and Rogers Park, and Andersonville and Bronzeville are all in the same sample set. Real estate doesn't work that way. Every neighborhood is unique.

That said, the Case-Shiller Index is still important. As the de facto barometer for home values nationwide, sustained strength in the Case-Shiller data means that the recession may be ending (or is already over).

Home buyers take note.

The combination of a soon-to-expire $8,000 First-Time Home Buyer Tax Credit and a rebounding housing market is creating intense competition for homes that may only get worse. Bidding wars seem common lately and that can have a negative impact on home affordability.

If you're thinking about buying a home right now or wondering if the time is right, according to Case-Shiller, the "right time" may have been 6 months ago -- before the string of increases. With values on the upswing, homes may only get more expensive.

Tax Credit For Home Purchase Could Rise!

According to a recently published USA Today® article, lawmakers and businesses are requesting an extension for first-time homebuyers. The article states that first-time buyers make up 40% of home purchases, according to the National Association of REALTORS® (NAR), which is about 5 percentage points higher than the past historical average. Bernard Baumohl, an economist at the Economic Outlook Group, says, "I'm fairly confident that (Congress) will extend the tax credit, because it is so important that housing come back."

There are several proposals in congress right now. Some include:

• A Senate bill to expand the tax credit to $15,000 for any home buyer regardless of income
• A House bill to keep the $8,000 credit in place until June 2010 and expand it to all home buyers
• Eliminating the income caps for singles earning more than $95,000 a year and couples who earn more than $170,000

Click here to read the full article and learn more about the tax credit and other proposals.

HUD Announces First-Time Homebuyers Can Use $8,000 Tax Credit as Down Payment

HUD announced today that the Federal Housing Administration (FHA) will allow homebuyers to apply the Obama Administration's new $8,000 first-time homebuyer tax credit toward the purchase costs of a FHA-insured home. This is GREAT news for first-time buyers! Read more about the program here.

With falling prices and low interest rates, there has never been a better time to purchase a home.....and this news makes it even better! If you have been considering purchasing your first home, now is the time to act. This tax credit has only been approved for home purchases in 2009, so don't miss out on this amazing opportunity!

As always, if you or someone you know is thinking about making a purchase, I would love to help!

Simple Tips for Better Home Showings

"You only have one chance to make a first impression"

A cliche, but so very true, especially with regards to selling your home. In a tough market like this one, where there is plenty of competition out there, it is even more important to wow buyers as soon as they walk in to your home. I can tell you from personal experience on both the buying and selling side what a difference a nicely staged home makes, which is why I spend a lot of time with my sellers to prepare their home before we put it on the market. (I spend an equal amount of time with my buyers trying to get them to look past decor and cosmetic issues with a poorly staged home) You can pick up lots of great ideas and get a feel for what a nicely staged home looks like from watching one of the many related TV shows on HGTV, but what I tell my clients is that we want their home to feel something like Pottery Barn does when you walk in: clean, uncluttered, simple lines and understated elegance. That does not mean you need to go out and buy new furniture or decor! Usually it is as simple as de-cluttering and rearranging pieces you already have.

Here are 18 tips for getting your house in tip-top shape before the first buyer walks through the door:

1. Remove clutter and clear off counters. Throw out stacks of newspapers and magazines and stow away most of your small decorative items. Store away personal photos and remove everything from the front of the fridge.  All flat surfaces should be cleared and empty of anything other than a few well-placed decorative items. Put excess furniture in storage, and remove out-of-season clothing items that are cramping closet space. Don’t forget to clean out the garage, too.
2. Wash your windows and screens. This will help get more light into the interior of the home. Along these same lines, make sure your blinds & drapes are always open to let in as much natural light as possible when you have a showing!
3. Keep everything extra clean. A clean house will make a strong first impression and send a message to buyers that the home has been well-cared for. Wash fingerprints from light switch plates, mop and wax floors, and clean the stove and refrigerator. Polish your doorknobs and address numbers. It’s worth hiring a cleaning service if you can afford it. 
4. Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows to air out the house. Potpourri or scented candles will help.
5. Brighten your rooms. Put higher wattage bulbs in light fixtures to brighten up rooms and basements, and make sure every light in the house is on during a showing. Replace any burned-out bulbs in closets. Clean the walls, or better yet, brush on a fresh coat of neutral color paint.
6. Don’t disregard minor repairs. Small problems such as sticky doors, torn screens, cracked caulking, or a dripping faucet may seem trivial, but they’ll give buyers the impression that the house isn’t well-maintained.
7. Tidy your yard. Cut the grass, rake the leaves, add new mulch, trim the bushes, edge the walkways, and clean the gutters. For added curb appeal, place a pot of bright flowers near the entryway and on any patio or deck. Get rid of that old swingset in the backyard.
8. Patch holes. Repair any holes in your driveway and reapply sealant, if applicable.
9. Add a touch of color in the living room. A colored afghan or throw on the couch will jazz up a dull room. Buy new accent pillows for the sofa.
10. Buy a flowering plant and put it near a window you pass by frequently.
11. Make centerpieces for your tables. Use brightly colored fruit or flowers.
12. Set the scene. Set the table with fancy dishes and candles, and create other vignettes throughout the home to help buyers picture living there. For example, in the basement you might display a chess game in progress.
13. Replace heavy curtains with sheer ones that let in more light. Show off the view if you have one.
14. Accentuate the fireplace. Lay fresh logs in the fireplace or put a basket of flowers or large pillar candles there if it’s not in use.
15. Make the bathrooms feel luxurious. Put away those old towels and toothbrushes. When buyers enter your bathroom, they should feel pampered. Add a new shower curtain, new towels, and fancy guest soaps. Make sure your personal toiletry items are out of sight.
16. Send your pets to a neighbor or take them outside. If that’s not possible, crate them or confine them to one room (ideally in the basement), and let the real estate practitioner know where they’ll be to eliminate surprises.
17. Lock up valuables, jewelry, and money. While a real estate salesperson will be on site during the showing or open house, it’s impossible to watch everyone all the time.
18. Leave the home. It’s usually best if the sellers are not at home. It’s awkward for prospective buyers to look in your closets and express their opinions of your home with you there.

Remember, a home that is staged to sell is most likely not the way you would typically live in it.  It means putting the coffee maker away every morning after using it and not leaving the mail sitting on the dining room table.  It is a little more effort and probably a bit of an inconvenience, but it will make a HUGE difference to potential buyers and get your home sold faster and for more money.  That makes it worth the effort in my opinion!

FAQ: Buying a Home

Q: Speaking of down payments, do I need one? 

A: I hesitate to even answer this question as the lending laws seem to be changing on almost a weekly basis but the short answer is YES. The days of 100% financing and interest-only loans are in the past. As of today (4/14/09) the best option for most people is an FHA loan, which allows you to only put 3.5% down and typically has the best rates. However, FHA loans have more stringent requirements for both the borrower and the house so not everyone qualifies. If you cannot do an FHA loan, your next best option is a conventional 30-year fixed, which requires at least 10% down. 

Like I said, the requirements are constantly changing which is why it is SO important for you to work with a really good lender. The are the most up-to-date on what is currently going on and the good ones will work their tail off to find you the best possible scenario. I have several great lenders that I work with a lot which I am happy to recommend to you, just ask!

You can find out more info about FHA requirements here.

FAQ: Buying a Home

Q: What is earnest money and why do I need it?

A: Think of earnest money as a deposit to show the seller you are serious about buying their place. Earnest money is typically 1% of the sales price and not less than $1000, but the more earnest money you put down, the stronger your offer is. This is your money and it gets subtracted out of your down payment at closing, it is not in addition to any funds you need to close. You do not lose your earnest money unless you default on the contract. If that were the case then the seller would get to keep your earnest money (again, like a deposit) as recompense for the time they took their home off the market and made it unavailable to other potential buyers....similar to the way hotels take a deposit for a room and only credit it back to you if you cancel within a certain time frame. 

You submit the earnest money in the form of a check made out to either the listing or selling broker along with your initial offer. Once you and the seller reach an agreement on terms and have a binding contract, the earnest money is deposited into the broker's escrow account and held there until closing. If you terminate the contract within your specified Due Diligence period - for any reason - you get your earnest money back in full. If you terminate after the Due Diligence period, in most cases the seller will get your earnest money since you likely would be in default of the contract. There are very specific laws regarding earnest money, escrow accounts, and what happens to that money. 

For you numbers oriented people, an example: You are purchasing a $250,000 home with 10% down. A typical earnest money amount would be $2500 (1% of the sales price) which would be deposited immediately into the broker's escrow account as soon as you have a binding contract (which means you need to have this money in a liquid account before you start house hunting). If all goes well, at the closing table you would need to bring $22,500 for your down payment and your $2500 earnest money would go towards the balance. 

Let's say things don't go well and something comes up in your inspection that makes you want to terminate the contract. As long as you do so within your Due Diligence period (which is typically about 14 days) you get all your earnest money back. 

If your Due Diligence period ends and then 2 days later your financing falls through, or your job decides to transfer you to Timbuktu, or you just decide you no longer want the house.....you can terminate the contract but you will lose your earnest money. 

I have never had that final scenario happen, luckily!

FAQ: Buying a Home

Q: Do I need to get pre-qualified?

A: Yes! This should be your first step in the home-buying process and I am happy to recommend a good lender to you. The pre-qualification process is important for a few reasons. 

First, it lets you know how much house you qualify for and what that equates to in a monthly payment. Note that what you qualify for and what you feel comfortable paying on a monthly basis may not be the same. Often you will qualify for more house than you feel comfortable with. A good lender will create a GFE (good faith estimate) which breaks down a potential home price into a monthly payment, taking into account things like your down payment, property taxes, homeowners insurance, and HOA fees. This is what you need to pay attention to. Once you figure out what monthly payment you are confortable with, let me know the price point that corresponds with so we can make sure you are only seeing houses that you can afford. It is no fun to look at $300,000 houses only to find out that you only feel comfortable with a monthly payment that equates to a $250,000 house! 

Second, we will need your pre-qualification letter in order to submit an offer, especially if the home is a foreclosure or short sale. With the mortgage business the way it is right now, we want to show the seller in every way possible that you are the most qualified buyer possible so they are more likely to accept your offer.

I have a list of lenders that I know and trust, whom I would prefer that you work with. If you have a lender you have worked with before and trust, that is fine. But I have had too many clients get burned by bad lenders that promised things they could not deliver, which causes a lot of undue stress. My preferred lenders are all fabulous and very good at what they do.....and most of all, they are honest. They don't hide fees, they don't promise something they cannot deliver, they will let you know if you can get a better deal somewhere else, and most of all: they get my clients to the closing table quickly, easily, and great service! (and no, unfortunately they do not pay me to say this!)

Thanks guys!

FAQ: Buying a Home

Q: I am thinking about buying my first home. Why should I use a Realtor? Isn't it expensive?

A: Obviously, I am a bit biased, but in my opinion there are a multitude of PRO's for working with a Realtor and not really any CON's. I have found that first-time buyers tend to have a lot of misconceptions and confusion about the buying process which makes them hesitate to work with an agent. The irony of course is that a good agent will remove those misconceptions and help walk you through what is often an intimidating and confusing process. 

First, (and I get this a lot) is the issue of cost. As a buyer there is absolutely no cost to you for working with me. My fees have been negotiated between the seller and the listing agent of any property I show you before we ever walk in the door, and they are responsible for paying me. These are standard, industry-wide fees and any house with a sign in the yard has already agreed to pay me for representing you. Often people think that if they don’t have an agent representing them that means they, the buyer, are entitled to those fees. Unfortunately that is not the case and it is illegal in Georgia to do so. There is no direct financial benefit for you to work without an agent. 

However, there are indirect financial benefits for working with me. As a real estate professional statistics show I will be able to negotiate a better sales price on your behalf than you would be able to do on your own. In addition, I can save you a lot of time and energy. I have access to a much larger and more up-to-date database of available homes and can run specific searches based on your exact parameters. Once we get a list of potential homes narrowed down, I can take you to see each one, arranging all the appointments ahead of time so that we can be as efficient with your time as possible. With my lockbox key I can get you into any home that is for sale so you are not having to call each listing agent and try to arrange showings yourself. Once you find 'The Home' I will draw up all the paperwork and negotiate on your behalf until we have a deal that is suitable to you. I will then arrange all the inspections, termite clearance, appraisal, and title work, getting you to the closing table with the minimum amount of stress.

What I think is most valuable about working with me is my knowledge and experience. This is my job, I have extensive training, and I have done it a million times before. I know what I am doing and I do it well. I can help guide you through the entire process with an experienced eye to make sure you are getting a good house for a good deal. I know which questions to ask and which issues are serious ones. I have extensive contacts for other excellent professionals that you will need throughout the process, from lenders & closing attorneys to inspectors & appraisers, which will make sure the process is as smooth as possible. Most importantly, I put all of this to work for you and your best interests. I am on your side, looking out for you, fighting on your behalf to get you into a great home as easily and stress-free as possible.

So, like I said, I think there are tons of reasons to work with an agent and not really any not to. My business is based on referrals. That means that is it my job to create lifetime clients. It does me no good to give you only 50% service…..I want to do the best possible job for you, to make you as happy as I am able, so that you become that lifetime client and you want to refer your friends and family to me. My goal when I started in this business was to do 100% of my business via referral and by focusing on that and the service required to attain that goal, I quickly rose to one of the top agents in my office, which would not have been possible without creating happy, lifetime clients. That is exactly what I would love to do with you!

Congress Enacts Bigger and Better Home Buyer Tax Credit

A tax credit of up to $8,000 is now available for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009. Unlike the tax credit enacted in 2008, the new credit does not have to be repaid.

In its efforts to stimulate the economy and revive the housing market, Congress has enacted legislation providing a tax credit of up to $8,000 for first-time home buyers.

But time is of the essence for buyers who want to take advantage of this opportunity. Only homes purchased on or after January 1, 2009 and before December 1, 2009 are eligible.

$8,000 Home Buyer Tax Credit at a Glance

• The tax credit is for first-time home buyers only. For the tax credit program,
  the IRS defines a first-time home buyer as someone who has not owned a principal
  residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes
  up to $150,000 qualify for the full tax credit.

Click here for all the details!

Should you appeal your assessed property value?

With falling home prices, many new homeowners are finding their homes assessed at a value higher than what they paid, which directly relates to the amount of property taxes they are liable for. In these cases, it is worthwhile to apeal your assessment which may lead to your property taxes being lowered.

Georgia law requires the Board of Assessors mail assessment notices to taxpayers when property values change. When you receive your assessment notice, the first thing you should ask yourself is what is the fair market value of my property? Fair market value is the price that a willing buyer would pay and a willing seller would accept for a property in an open market sale. If your appraised value is more than you reasonably could expect to sell your property for, then you should consider filing an appeal.

A CHECK LIST FOR PROPERTY OWNERS FILING AN APPEAL

1. Check the values of similar houses in your neighborhood.
2. If you still wish to appeal, you must do so in writing within 45 days of the date of your assessment.
3. When your appeal is received, The Fulton County Board of
   Assessors (BOA) makes its review and either agrees with your value or
   establishes a new one.
4. If you are not satisfied with the BOA's decision, you
   may choose Arbitration or a Board of Equalization (BOE) hearing. The BOE is a
   panel of three county tax payers appointed by the Fulton County Grand Jury to
   resolve disputes over property valuation. There is no cost if the BOE is chosen.
5. Your final option is to appeal the case to the Fulton County Superior Court.

HOW TO MAKE YOUR APPEAL MORE EFFECTIVE

To make your appeal before the Board of Assessors, the Board of Equalization or through arbitration more effective, you can improve your case with documentation. Here's how to do it.

1. Request a copy of your Property Record Review Document in person from the
   Assessors' office, or send a self- addressed, stamped envelope to the Fulton County Board of Assessors, Suite 1056,141 Pryor Street, S. W., Atlanta, Georgia 30303-3445. This free, one page document will describe the essential features of your residential property.Review it for accuracy. You may request any other residential property record for fifty cents.
2. Obtain a market analysis of comparable properties recently sold in your neighborhood. As your local real estate expert, I am happy to provide this to you at no charge.
3. Establish property value by providing a recent property appraisal. This is a good option
   for individuals who have recently purchased or refinanced a home.
4. Review the Street Index and Sales Books for comparable properties. You should look for
   properties in your neighborhood with the same quality or construction; similar land size and square feet of living area; number of Bedrooms, basement size, etc. The Street index and Sales Book are located in the downtown Government Center, North and South Fulton Service Centers.

Homestead Exemption

A homestead exemption is a reduction in homeowners' property taxes. To qualify, you must own and occupy the home as your legal residence and primary domicile on January 1 of the year in which the exemption is being claimed (so all you people who bought a home in 2008, even if it was on December 31, 2008, this applies to you). Homeowners must apply for this exemption on or before the deadline required by their county (see links below). Once granted, this exemption is automatically renewed each year as long as they continually occupy the home under the same ownership. The home must be your legal residence for all purposes including the registration of your vehicles and the filing of your income tax.

You cannot file for homestead exemption on rental property, vacant land or on more than one property. In addition to basic homestead exemption there are additional exemptions for residents age 62 and older and/or disabled and disabled veterans. You must apply for these exemptions in person. If you are adding or deleting a person's name on a deed, you must re-file for homestead. Refinancing your home will not affect your exemption.

Fulton County / City of Atlanta: due March 1st***

DeKalb County: due March 1st***

Gwinnett County: due April 1st

Cobb County: due April 1st

***if you live in the part of City of Atlanta which is also in DeKalb, you must file in both Fulton and DeKalb Counties***