Real Estate Search Direct

There is wonderful news for people thinking about purchasing a home! Congress has recently voted for new legislation, as a part of the strategy for energizing the U.S. housing market, that makes the Federal tax credit of up to $8,000 now available to still more first-time home buyers. Additionally, selected individuals who currently own a home and would like to buy a new one will also be able to obtain a Federal tax credit totaling up to $6,500.

The Extended Home Buyer Tax Credit extends and enhances the existing program that expires on November 30th. Both first-time and move-up buyers may now get the benefits of the Federal tax credit. Of course, this is over and above the current historically low mortgage interest rates.

Here are the important new particulars:

* The first-time buyers’ $8,000 has been extended through the 30th of April, 2010. * Individuals who currently own a home are now eligible for a $6,500 tax credit, if they have lived in the house they are selling as their principal residence for at least five straight years out of the last eight years. * Income limits for qualifying home buyers were increased to a range of $75,000 to $125,000 (for single buyers) and a range of $150,000 to $225,000 for couples. * Time has been extended to allow for closing the home purchase transaction. If they have a ratified contract by April 30, they will subsequently have until the last day of June, 2010, to finalize the purchase. The qualifying purchase price of the new residence has to be no more than $800,000.

The program works as follows:

* Tax credits provide a dollar-for-dollar payment of taxes owed and are available as a refund. The amount of the tax credit will be first credited toward any tax liability for the purchase year. After that the amount remaining will be refunded to the buyer. (For example a first-time buyer who owes $2000 in taxes would receive a payment of $6,000). * Any single-family residence purchased to be used as a principal residence (including condos, co-ops) will qualify if it is purchased by April 30, 2010 and closes by June 30, 2010. * The full amount of the is available for individuals who have an adjusted gross income of no more than $125,000 or $225,000 on a joint return. When income is greater than these figures, the amount of the tax credit decreases until the upper limit is reached – $145,000 for an individual or $245,000 of joint income.

Jim Navary has been a freelance writer and researcher for over thirty years covering a broad range of topics. He is also a licensed real estate salesperson in the Commonwealth of Virginia specializing in real estate in the Tri-Cities area of Virginia and, in particular, Colonial Heights, Virginia, area homes for sale.

Comments (1) Nov 18 2009

To the great relief of many people, both inside and outside the real estate business, it appears that the worst days of the depressed real estate market may be behind us. It’s perilous business trying to forecast market changes (see below) but at least in some parts of the country it does seem that buyers are starting to emerge from hibernation. If you are considering buying a home, here are the top ten mistakes that you should avoid before committing to a purchase.

1. Not Obtaining a Loan Pre-approval Letter Getting pre-approval for a home loan is an important first step for potential buyers. Obtaining a loan pre-approval will give you a much better idea of the amount of money you can safely borrow. Having a pre-approval letter also indicates that you are serious about buying. Most sellers with quality houses won’t even consider an offer unless it is accompanied by verification of pre-approval. Furthermore, should any problems with your credit worthiness arise it is better to learn about them early, when you still have time to take action to resolve them. Encountering a credit glitch after you have already agreed to a home purchase can be devastating.

2. Not Hiring a Buyer’s Agent Unless other arrangements are made, with nearly all full service real estate companies, the buyer’s agent works for you at no cost to you. His or her commission is paid by the seller’s broker after the sale closes. Hence, it is in your best interest to hire your own representation – a buyer’s agent – instead of working with the seller’s agent. The seller’s agent is obligated by law to act in the seller’s best interest, not yours. By using the services of a buyer’s agent you can level the playing field since a buyer’s agent is required to serve in your best interest.

3. Selecting the Wrong Real Estate Agent Before choosing a buyer’s agent, you should talk to a number of different agents. Request the names of earlier clients so you can check references. Don’t limit yourself to agents with large brand name firms or so called “million-dollar” agents. Also, before hiring a friend or family member who is an agent, remember that if you are disappointed with the level of service provided, it’s considerably easier to dismiss an agent who is a “stranger”.

4. Not Realizing the Length of Time Involved in the Process Buyers, and sellers, often believe that the process of buying property is shorter than it actually is. There are a myriad of things that can introduce delays. Sellers can be slow in formally accepting your offer, you may have trouble selling your current property, the loan processing may be delayed, repairs may have to be completed, problems with obtaining a clear title to the property may arise, etc. Murphy’s Law always appears to surface when trying to finalize a deal quickly. Make sure to allow at least eight to twelve weeks to complete the sale.

5. Assuming the Appraisal and/or the Tax Assessment Equate to the Market Value. Appraisals and tax assessments are designed to be objective estimates of value. However, different appraisers can report considerably different results. Buyers should have their agent perform a comparative market analysis (CMA) to get a better idea of the home’s current market value prior to offering to buy.

6. Attempting to Time the Variations in the Real Estate Market Trying to time a purchase with when the market has hit rock bottom is nearly impossible. I would be an extremely rich man if I had that ability! Both buyers and sellers should realize that a sound real estate investment is always a long-term venture.

7. Ignoring the Facts When Searching for a Dream Home When buying a home, if you only follow your heart and not your head, you will probably be in for some nasty surprises. That fabulous home may look like your dream home, but make sure you consider everything involved. Consider such everyday issues as the effect a large home loan may have on your resources, commuting times, the quality of local schools and shopping facilities, the cost of property taxes and homeowner association as well as other quality-of-life aspects of home ownership. That fabulous home may not be worth the problems it causes you and your family.

8. Failing to Remember That Timing Is Everything As you can probably imagine, paying two mortgage payments can be incredibly hard to manage. When thinking about selling your current home and buying another, understand that the sale of your current home is the more crucial of the two transactions. If you would be unable to make payments on two loans, if at all possible, try to secure the sale of your current home before committing to purchase a new one.

9. Not Reviewing the Purchase Contract. Keep in mind that a purchase contract is a legally binding document. Failing to understand what you’re agreeing to can be a painful mistake. Read the document thoroughly prior to signing and request clarification if there is something you are not sure about. Do not be afraid to run it by your attorney if you wish. Be certain that it contains everything you it should, including which party is paying for what. Verbal commitments should be included, in writing, in the contract. Ensure that your agent takes an active role in the writing and negotiation of the contract. Hurrying through this step may add delays and result in financial and emotional pain.

10. Not Conducting a Criminal Search for the New Location. Agents in most parts of the country are not obligated to notify buyers if there is a sex offender or other illegal activity in the neighborhood. Contact the local police department or sheriff’s office to find out how to gain access to local sex offender and related criminal databases. In addition, the internet has made this information much easier to obtain in recent years. There are many online resources for locating this information. Visit the website backgroundcheckpoint.com for information about several of these investigative resources.

Jim Navary has been a freelance writer and researcher for more than thirty years covering a broad range of subjects. In addition, he is a licensed real estate salesperson in the Commonwealth of Virginia specializing in real estate in the Tri-Cities area of Virginia and Colonial Heights, Virginia homes for sale.

Comments (0) Nov 09 2009

The state of the economy, interest rates and market cycle all play a role in the final price of your dream home, but it’s not always easy to tell whether now is a good time to become a homeowner. First time homebuyers are typically nervous about entering the homebuying market because they simply can’t tell the difference between a buyer’s market or a seller’s market.

In a buyer’s market, housing prices are very attractive and interest rates may be lower than the average. You may even see more ‘For Sale’ signs in different neighborhoods and sellers may be willing to reduce their prices drastically just to sell the home.

It is hard to find an attractive home deal in a seller’s market. Lotteries are setup that allow exclusive buyers to bid on certain homes. You might hear some people saying that the market is in ‘crisis mode’ during a seller’s market.

Buying a home on the right market will significantly favor first time homebuyers financially. However, Barron’s ‘Smart Consumer’s Guide to Home Buying’ cautions that “cycle phases are much easier to pinpoint long after the fact.” Nevertheless, you can look for certain signs that indicate the current market phase of the industry.

As mentioned, ‘For Sale’ signs are everywhere in a buyer’s market. At this time, sellers are giving incentives, such as concessions and discounts, to sell their properties quickly. There would also be an increase in the number of foreclosures and high-priced, quality homes will be sold for lower-than-average prices.

In a seller’s market, you can expect to see: very few ‘For Sale’ signs around the neighborhood; relatively high prices and competitive selling tactics within the same neighborhood; people ‘flipping’ homes where they buy a home and renovate it to sell it in a very short period of time; news stories that point out how unaffordable it is to buy a home; lots of rental complexes being converted into condominiums.

The best time to buy a home is during the buyer’s market when sellers are more eager to sell their properties and give out discounts. A good indicator to buy a home is when ads of homes with price cuts, discounts and other extra incentives start to circulate. You might be tempted to buy the first home you see or the lowest priced home but it is still important to work with a professional agent. Get a professional agent, especially if this is your first home purchase, to guide you in choosing the best home that would fit your needs.

Homebuyers must have a strategy to help them out in the entire homebuying process. Homebuyers are advised to look for market indicators, work with a professional and do their own research to come up with a plan and choose their best option.

Are you a new homebuyer looking for homes for sale in Minnesota? Searching online using the Minnesota MLS is a great way to find the type of home you’re looking for.

Comments (0) Nov 04 2009

My wife and I had to go to our local grocery store on Saturday to pick up some basic items – bread, milk, tomatoes, etc. The store is closed on Sundays so Saturday afternoon they always reduce the price on selected perishable foods. It’s very tempting to pick up some of these cheap items until one realizes that there’s a good reason they are so heavily discounted.

That bargain loaf of bread has reached its “sell by” date. Before I can use the entire loaf it will probably become stale and I’ll have to throw away half of it. Likewise, that gallon of milk is about to expire; by the time I get through half of it, the milk will most likely turn sour. And that shrink-wrapped package of eight tomatoes? They’re already getting soft – how will they be in 3 or 4 days? Yuck!

Sometimes cheap really is cheap. The real estate market can be very similar to the food market – there’s always a reason that that bargain is priced so low. Learning why a cheap property is priced so low is critical to figure out if it is truly “worth it” to pursue. Seeking the advice of a buyer’s agent can be a very wise move to make before you jump on a cheap home.

Homes that are listed with major discounts can normally be classified in just a few categories:

1. The Handyman’s Special or “Fixer-Upper”

Homes that have fallen into disrepair can usually be purchased at prices well below the asking price of well maintained, similar properties. When the property owner is unwilling or unable to make the necessary improvements, the only option is to list it for sale at a heavily discounted price.

If the prospect of manual labor is particularly unappealing, you probably should avoid this type of cheap property. Similarly, if paying someone else to perform the necessary work is out of the question – just walk away. However, If the prospect of doing the work yourself doesn’t completely turn you off, these “handyman specials” can be an excellent investment.

2. A Somewhat Questionable Neighborhood

We’ve all heard the saying that the three most important aspects of real estate are location, location, location. Well, it’s really true. The value of a home can vary quite a bit depending upon its neighborhood. This can be fabulous for the homeowner in an upscale location. However, it can be devastating for a homeowner in a neighborhood that has fallen on hard times. Contrary to many people’s beliefs, real estate values do not always increase with time.

In some cities, certain neighborhoods that have been on the decline are gradually being revitalized through the renovation of individual homes. As these renovations spread, the potential value of property in the immediate neighborhood can begin to climb. Your Realtor will be able to give you an idea about the direction that prices are moving so that you can make a well-informed decision about the potential value of inexpensive homes that fit this category.

3. “Priced To Move Quickly”

A times a homeowner may be under pressure to sell their property very quickly. There may be a need to liquidate assets for cash in hand, an imminent relocation for employment purposes, or pressure to eliminate double mortgage payments after committing to the purchase of another home.

Inexpensive homes in this category usually provide the best value. However, these bargains do not normally remain on the market very long since a fast sale is the very reason that the property was discounted. The best approach to finding these fleeting opportunities as they arise is to have your buyer’s agent notify you when new property listings hit the market. Most real estate agents have access to automation tools that will automatically notify you via email the same day that a property that meets your requirements is put up for sale. Without that type of competitive edge, it’s likely that you’ll never hear bout these prime opportunities.

4. The Mystery of the Unknown

This is the “catch-all” category for homes that don’t seem to fit any of the three previous categories. They are the riskiest properties and should be approached with extreme caution. There is always a reason for a house being under priced – if it’s not apparent at first glance you may have to do some serious investigating before considering a purchase. Sellers are obligated by law to disclose any information that affects the home’s value. Your buyer’s agent will prove invaluable in these cases by helping you ask the right questions.

Obtaining the advice of a buyer’s agent and investigating the reasons that “bargain” properties are priced so low are the keys to discovering the true value of a “cheap” home. These deals can look very attractive at first but, only after further evaluation, will you have an idea if a property may turn out to be a “money pit” or a fabulous opportunity. You won’t regret performing your due diligence.

Jim Navary has been a researcher and freelance writer for more than thirty-five years covering a wide range of topics. He is also a licensed real estate agent in the state of Virginia featuring Fort Lee VA real estate and Colonial Heights VA homes for sale. You are welcome to reprint this article – but get your own unique content version here.

Comments (0) Oct 31 2009

Locating homes for sale in Anaheim California isn’t as hard as it might seem at first blush. This is because the city is well-stocked with properties of all types — including very reasonable condominiums and also more than several premier luxury real estate properties. Chances are, though, most middle-class buyers can’t come close to affording those luxury real estate homes even in California’s current market, which is a little down.

Ultimately purchasing a home out in the Anaheim area also won’t present too much of a problem given that there is such a nice inventory of properties up for sale at any given time and also given that sellers right now are extremely motivated to accept offers. Some of this is due to the fact that many of these sellers are looking at adjustable-rate mortgages that are scheduled to rise quite a bit.

Sellers in Anaheim California should know that it is indeed a buyers market in California right now. In the future, it’s almost a certainty that real estate prices in the Golden State will bounce back although no one is prepared to say exactly when. Even as nice a city as Anaheim is experiencing a slight downturn in house values, and sellers should be prepared to accept the new real estate reality.

For those prospective buyers seeking to find a nice property in Anaheim, they would be doing themselves a favor if they hired on a licensed real estate salesperson who works in Anaheim to help them with the search. If successful, the agent will receive a commission from the sale of the house and will be prepared to help buyers look for as long as they need in order to find the perfect property and not be placed in a position where they’ve paid too much.

The real estate salesperson will be acting as a buyer’s agent, and therefore he or she will be obligated to help his or her buyers find the best home for the best price within their means. He or she can also help buyers save a lot of time when it comes to searching for such homes in the Anaheim market and that salesperson has access to all of the best listings.

Once buyers have found a home they really like and are prepared to make an offer, the salesperson can also be a valuable asset in helping to draw up that offer and then present it to sellers and their agents or just to sellers alone, if they are not working with an agent. Sometimes, though, sellers trying to move the home on their own may not deal with agents, though this is highly unlikely in today’s real estate market in California.

That market is why buyers and sellers should prepare themselves to come to some sort of middle ground when it comes to getting a deal done in a market like Anaheim’s. Sellers understand that it’s a buyers market and chances are they’ll be very motivated — meaning that they’ll accept a reasonable offer — and will work with buyers in order to get the deal done.

Locating homes for sale in Anaheim California isn’t as hard as it might seem due to a number of factors, including the current market and the fact that there is a nice inventory of properties for sale at any one time in the city. Buyers should try to avoid making a purchase from emotion and instead should rely not only on their common sense but on the help of a licensed salesperson.

To help in deciding which home is best for you check out Dan Killoe’s website about Anaheim homes for sale and finding homes for sale in California.

Comments (1) Oct 29 2009

Have recent reports on the housing market scared you away from buying a home? If so, you aren’t alone. Many people are looking at the current housing crisis as if it was Armageddon.

The Chinese have a word for crisis –  weiji. The two characters taken separately mean danger and opportunity respectively. Opportunity can be found in crisis.

Imagine for a minute another home buyer. He bought his home at the height of the frenzy when banks were lending to anybody with a pulse. He knew he didn’t get the best mortgage. The rate would adjust in 3 years, and then the payments would be hard to keep up.

He expected the value of his home to increase as prices had been doing for the past few years, so he planned to re-finance when the loan-to-value (LTV) of his home increased enough to qualify for a better mortgage.

When the credit crisis hit, the home buyer saw the value of his house plummet, but he still had the adjustable rate mortgage. Three years after he bought his house his payments started to increase. He could no longer afford to make his payments. Do you think this is an unusual situation?

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Comments (1) Jan 08 2009