While your opinions on the kind of home you want to own may change during the homebuying process, use the information available on my website to help you prioritize your wish list and make you home shopping less time consuming.
It has been my experience that home buyers follow their hearts. They should, of course, because they are making a huge purchase for their family. It’s an important decision and not one you make every day. However, sometimes it is important to set aside emotions and make a clear thinking decision and make sure your dream home is not a money pit.
Always hire a professional inspector to inspect the home you choose before you complete the sale, even if it’s a foreclosure or short sale. There are five key areas to determine if the home has serious problems; roof, foundation, piping, flooding, and unapproved work.
1. Roof – A new roof can cost between $5,000-$15,000 depending on the type.
• A quick method to determine if the roof is leaking is to look in the attic. Warning – don’t climb into the attic yourself, unless you know how to simply open the attic access panel and look inside.
• With a flashlight check the rafters. They should not show water stains, which indicate leaking.
• With the flashlight off, look up at the roof
• Any pintpoints of light shining through indicate a worn roof.
2. Foundation – A cracked foundation is a serious matter. It can cost tens of thousands of dollars to fix it, and, in severe cases, may not be fixable. Keep an eye out for these potential warning signs:
• V-shaped cracks (larger at the top than at the bottom) around the perimeter of the house.
• Cracks in interior walls near corners of doors or windows. Look at all the corners of windows and doors, and at joints where walls meet walls, ceilings, or doors for signs that they are pulling away from each other.
• Doors that stick and squeak.
• Leaks and cracks in and around the fireplace.
• Obvious cracks in the brick and mortar.
3. Piping – Copper piping rarely corrodes and is the plumbing of choice these days, but many older homes have galvanized steel plumbing. After 30 years or so it tends to rust out and leak. Replacing it can cost $5,000 or more, so it’s something you’ll want to watch out for. Call a plumber if you have specific questions.
4. Flooding – If a house is poorly situated on its lot, flooding can occur under the house, which can seriously damage the home. In the basement, check for water stains on the foundation indicating flooding during rainly periods. If you find these, call in a soils engineer to confirm the problem and suggest solutions.
5. Unapproved work – All improvements to the property should have been done with permits from the local building department. Work done without permit may be substandard and , if discovered later, may beed to be ripped out. Go down to your local building department and request copies of permits for all work that was done at the property address. Compare these with any additions or replacements done by the seller. If work was not done by permit, you may ask the seller to obtain permits for the work and bring it up to building-code standards before you purchase.
Copyright 2004 by the Texas Association of Realtors, all rights reserved.
The $8,000.00 First Time Home Buyer Tax Credit is available until April 2010. The following are ten tips for those First-Time Home buyers:
1. Be picky, but not unrealistic. There is no perfect home.
2. Do your homework before you start looking. Decide specifically what features you want in a home and which are most important to you.
3. Get your finances in order. Review your credit report and be sure you have enough money to vover your downpayment and your closing costs.
4. Don’t wait to get a loan. Talk to a lender and get pre qualified for a mortgage before you start looking.
5. Don’t ask too many people for opinions. It will drive you crazy. Select one or two people to turn to if ou feel you need a second opinion.
6. Decide when you could move. When is your lease up? Are you allowed to sublet? How tight is the renatl market in your area?
7. Think long-term. Are you looking for a starter house with the idea of moving up in a few years or do you hope to stay in this home longer? This decision may dictate what type of home you’ll buy as well as the type of mortgage terms that suit you best.
8. Don’t let yourself be “house poor”. If you max yourself out ot buy the biggest home you can afford, you’ll have no money left for maintenance or decoration ot to save money for other financial goals.
9. Don’t be naive. Insist on a home inspection and, if possible, get a warranty from the seller to cover defects within one year.
10. Get help. Consider hiring a REALTOR as a buyer’s representative. Unlike a listing agent, whose first duty is to the seller, a buyer’s representative is working only for you. And often, buyer’s reps are paid out of the seller’s commission payment.
Reprinted from REALTOR Magazine Online by permission of the National Association of REALTORS, Copyright 2005, All rights reserved.
DALLAS (Dallas Morning News) – Nearly 1,000 first-time homebuyer tax credit filings in Texas have been flagged for possible ill-use of a taxpayer identification number primarily used by illegal immigrants, who are not entitled to the credit.
This number represents nearly one-third of the 3,200 suspicious homebuyer tax credit claims submitted by noncitizens around the country, the total of which are valued at $20.8 million, according to the U.S. Treasury Department.
Russell George, the Treasury inspector general for the tax administration, said that involvement of third-party preparers in some questionable homebuyer claims filed nationwide suggested that there may have been “conspiracies and attempts to cheat the government by more than one person.”
Of the 1.5 million claims made to the Internal Revenue Service for the tax credit, the Justice Department has filed one criminal case and one civil injunction against tax preparers for submitting false claims for the homebuyer credit. One of these cases was from Mission, Texas.
Do you log onto the Houston Association of Realtors or Realtor.com websites every week to see if there are any new houses? Do you cruise through neighborhoods every weekend looking for a home you might like to buy? I have come across so many buyers that do this. There’s an easier way. Call me and I can add you to my client gateway. What does that mean? If you will tell me what you are looking for in your next home I can set up a detailed search just for you to email you updates daily as new houses come on the market that match your search criteria. Isn’t that easier that you spending hours every week searching through listings? You will be auto-notified as houses that match your search criteria are added to the Houston Multiple Listing Service. There are so many houses being added daily for sale, don’t take a chance at missing one you might want to buy. Call me and tell me what you want and I can get you set up on a client gateway. It’s FREE! You’ll be happy it’s so easy to get updated listings in your inbox. If changes are made to the listings, like price changes or it goes under contract, you’ll be notified. As always, you can search the entire Houston Multiple Listing Service on my website, but if you know what you’re looking for call me and I’ll have updates sent to your inbox so you’ll never have to search again!
7Published in The Houston Chronicle, Sunday, November 22, 2009
It’s official, President Obama has signed a bill that extends the tax credit for first-time home buyers (FTHBs) into the first half of 2010. In addition to extending the tax credit of up to $8,000 through June 30, 2010, the extension measure opens up opportunities for others who are not buying a home for the first time.
The program gives those who own a residence some additional reasons to move to a new home. This incentive is a tax credit of up to $6,500 for qualified purchasers who have owned and occupied a Primary Residence for 5 consecutive years during the last 8 years.
Deadlines for all contracts need to be in effect no later than April 30, 2010 and close no later than June 20, 2010.
Single tax filers who earn up to $125,000 are eligible for the total credit amount. Those who earn up to $145,000 can receive a partial credit. Joint filers who earn up to $225,000 are eligible for the total credit amount. Those who earn up to $245,000 can receive a partial credit. Maximum purchase price: $800,000.
What is a tax credit? A tax credit is a direct reduction in tax liability owed to the IRS.
What is the tax credit for first-time home buyers? An eligible buyer may request from the IRS a tax credit of up to $8,000 or 10% of the purchase price for a home. If the amount of the home purchased is $75,000, the maximum amount the credit can be is $7,500.
Who is eligible for the tax credit? Anyone who has not owned a primary residence in the previous 36 months, prior to closing and the transfer of title, is eligible. This applies both to single taxpayers and married couples. If either spouse has owned a primary residence in the last 36 months, neither would qualify. In the case where an individual has owned property that has not been a primary residence, such as a second home or investment property, that individual would be eligible. As mentioned, the tax credit has been expanded so existing homeowners who have owned and occupied a primary residence for a period of 5 consecutive years during the last 8 years are eligible for a tax credit of up to $6,500.
How do I claim the credit? For those taking advantages of the tax credit in 2009, you may choose to either apply for the credit with your 2009 tax return or you may apply for the credit sooner by filing an amended 2008 tax return with Form 5405.
Other Restrictions?
If any of these apply, a credit would not be due.
SAN ANTONIO (San Antonio Express-News) – The Texas Department of Housing and Community Affairs is no longer accepting applications for short-term loans to homebuyers eligible for the $8,000 federal tax credit.
Because first-time homebuyers generally have enough money to cover their down payment, but not always enough to pay closing costs, the state has been offering 90-day loans since July to help them use the federal tax credit.
Since the department set aside $7.5 million and began offering the loans, it has received 1,225 applications. It stopped accepting loans to ensure it could process them by Dec. 1, the deadline to finalize home purchases while taking advantage of the tax credit.
NEW YORK (CNNMoney.com) – The U.S. Department of Housing and Urban Development (HUD) announced Friday that its $8,000 incentive for first-time homebuyers has been tweaked from a refund at tax time to cash made available for assistance on down payments or closing costs.
The mechanics of the new program, according to National Association of Home Builders economist Robert Dietz, allow lenders to purchase tax credits from the buyers and then collect the rebate from the IRS.
Homebuyers must still come up with the Federal Housing Administration’s mandatory down payment of 3.5 percent on their own, but they can use the tax credit to lower their principal balance and save on monthly payments.
“Families will now be able to apply their anticipated tax credit toward their home purchase right away,” said HUD secretary Shaun Donovan. “What we’re doing will not only help these families to purchase their first home but will present an enormous benefit for communities struggling to deal with an oversupply of housing.”
By: Shannon Register
If you have been on the fence about buying your first home, now is the time to buy and I want to tell you why this is the best financial opportunity for you right now.
Right now your Uncle Sam is offering you an amazing deal. If you buy your first home between January 1, 2009 and December 1, 2009 you qualify for a first time home buyer tax credit. The tax credit is equal to 10% of the home’s purchase price up to $8,000. It DOES NOT have to be repaid. Single taxpayers with incomes up to $75,000 and married couples with inomes up to $150,000 qualify for the full tax credit. This tax credit is also available to buyers who have not owned a home in the past three years. Unlike previous home buyer tax credits, this one is refundable which means that the credit can be claimed even if you have little or no federal income tax liability. So if you had a tax liability of $2,000 and received a tax credit of $8,000, Uncle Sam would send you a check for $6,000. It really does pay to buy now!
Interest Rates are at an all time low rigth now. It’s been atleast 40 years since rates have been this low. There’s no better time to lock in a low interest rate on a 30 year fixed rate loan. We know for sure rates will go up, but we don’t know when. Take advantage while they’re really low!
Right now there is a lot of inventory on the market to choose from. There are builders that have houses ready to be purchased that have never been lived in. There are also resale homes. As a first time home buyer, you can get more than a starter home right now. You can get a lot of house for your money. Softened prices have increased home affordability!
I have never met a financial or tax advisor that thought owning a home was a bad investment. There are tax incentives to home ownership. There is the peace of mind that you own it and are not worried about your landlord’s financial standing. Now is the time to create long-term financial stability thru home ownership. Stop renting and paying someone else’s mortgage. Start building equity!
Make a move before it’s too late! If you have a good job and have been pre-approved, what are you waiting for? Rates will go up, inventory will decrease, and if you wait too long you’ll lose the opportunity of a livetime from Uncle Sam. Act now, before the market starts to improve. We were in a sellers market for years. This buyers market won’t last long and we’ll be back in a seller’s market and you will have missed this amazing opportunity. Yes, it can be scary when you have never purchased a home before. I can help you. I can represent your best interest in the buying process and it doesn’t even cost you any money. The seller will pay my fees and I represent your best interest. The market is in your favor right now, but you have to take the first step. Call me today and I will lead you down the road to home ownership. I have done it many times myself and have helped many people buy their own homes. I love selling houses, but there’s nothing like the feeling I get when I see a homeowner taking pride in their first home. You have to have a great agent that won’t lead you astray and is patient enough to explain things along the way. I have had clients call me multiple times with the same questions because days later they’d gotten confused about something. I take the time to explain it again and again because it’s important. Buying a home is complicated and my clients know they can call or email me anytime and I will walk them through the process and answer any questions they have. I want to help you buy your first home TODAY!
NEW YORK (CNNMoney.com) – March pending home sales increased from February numbers and from March 2008, indicating that buyers think now is a good time to buy a house.
The Pending Home Sales Index from the National Association of Realtors (NAR) showed a 3.2 percent gain to 84.6 from February, when it was 82. The index stands 1.6 percent higher than a year ago.
The index is understood to be a forward indicator of home sales trends as it measures contracts signed, not completed sales. The uptick may indicate that home prices have fallen low enough for buyers to get off the fence.
“If inventory goes down — it’s at just under ten months now — to below eight months, that would mean we’re on the way to a sustainable recovery,” said Lawrence Yun, NAR’s chief economist.
Anecdotal evidence indicates that trend may be happening. Realtors and other industry insiders are seeing rising open house attendance and multiple bids on some particularly desirable properties.
Today, buyers are more likely to bid because they perceive the market as at or near its bottom. An April Gallup Poll reported that 71 percent of Americans thought it was a good time to buy a house.
The South saw the largest gain of any region, with pending home sales jumping 8.5 percent from February to March. Pending sales were 7.7 percent higher in March compared with the same month a year ago.
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1614 Louetta Rd. - Spring, TX 77388 - 281.288.3500 or 855.USE.RREA Office - 281.288.3503 Fax
Spring, Texas Real Estate - Shannon Register, Texas Broker
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