Register Real Estate Advisors

As well as helping people buy and sell properties, I also help families lease homes.  I often refer them to my rent vs. buy calculator so they can see that owning a home does not cost much more than renting a home.  Why pay someone else’s mortgage for them?  There are many reasons to own your own home. 

First of all, when you own your own home you can take advantage of tax breaks.  You can deduct the interest you pay on your mortgage and property taxes.  Houses usually appreciate in value over time, so you gain equity.  Now I know right now houses in most areas are not appreciating, but in general, usually houses do appreciate over time.  When you pay rent, you lose that money.  But when you purchase a home, part of that monthly payment goes towards your equity in the home.  Through the years, you will gain equity and pay down the mortgage.  Usually, after 30 years people can own their homes free and clear.  Building equity is like a savings plan for most homeowners.  If they need money, they can take out a home equity loan and use the equity to make purchases when needed.  Also, your mortgage payments do not increase over the years unless you have an adjustable rate mortgage.  Many landlords do increase rent yearly.  When you own a home you have the freedom to make whatever decorating changes you want. 

There are many reasons to purchase a home instead of renting or leasing a house.  Right now, first time home buyers can take advantage of the $8,000 tax credit.  That is free money from the government that won’t be around much longer – it ends this April.  If you would like to explore your options in home ownership, please call me today so we can get started.  I have helped many renters enjoy the opportunity of home ownership and that is what makes my job as a REALTOR so exciting!

HOUSTON (Houston Chronicle) – Housing starts increased 6 percent between fourth quarter 2008 and the same in 2009, according to a Metrostudy report released Wednesday.

 Builders started 4,576 homes last quarter and closed on 6,323. There were 12,164 inventory homes either finished or under construction in the Houston area in December.

 However, there were still 65,925 vacant lots ready for development at the end of 2009. That translates to a 42.3-month supply, well above Metrostudy’s idea of a healthy market equilibrium range of 20 to 24 months.

 Builders are expected to develop and sell between 18,000 and 20,000 homes in 2010. Starts and closings in 2009 totaled 18,687 and 22,902, respectively.

It’s an objective opinion of value, but it’s not an exact science so appraisals may differ.

For buying and selling purposes, appraisals are usually based on market value – what the property could probably be sold for.  Other types of value include insurance value, replacement value, and assessed value for property tax purposes.

Appraised value is not a constant number.  Changes in market conditions can dramatically alter appraised value. 

Appraised value doesn’t consider special considerations, like the need to sell rapidly.

 Lenders usually use either the appraised value or the sale price, whichever is less, to determine the amount of the mortgage they will offer. 

Used with permission from Kim Daugherty, Real Estate Checklists and Systems ( http://www.realestatechecklists.com ).

Reprinted from REALTOR Magacine Online by permission of the National Association of REALTORS.  Copyright 2005.  All rights reserved.  http://www.REALTOR.org/realtormag

MIAMI (Associated Press) – More people were preparing to buy a home in December than in November, according to the National Association of Realtors’ seasonally adjusted index of sales agreements.  Agreements rose 1 percent between November and December to a reading of 96.6, a bit lower than the 97.1 level analysts expected.  The index has risen nine out of the last ten months.

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.

Why not? I listed a home on Alp Springs last week and this week it’s already shown. Buyers are out there looking year ’round. This time of year, only serious buyers are out there looking because if they’re not serious, they don’t have time to look at houses! If you have lived in your home for more than five years, you will qualify for the $6,500 tax credit if you buy your next home before the deadline next April. It’s an excellent time to sell. Call me today to see what absorption rates are in your neighborhood and what price you can expect to get for your home. Let’s get it on the market and get it SOLD! My marketing plan works even in a down market. I have proven results!

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.

• You buy your home from a spouse, parent, grandparent, child, or grandchild.
• You do not use the home as your principal residence.
• You sell your home before the end of the year.
• You area nonresident alien.
• Your home financing comes from tax-exempt mortgage revenue bonds.
• You owned a principal residence at any time during the 3 years prior to the date of purchase of your new home.

Breaking News/RISMEDIA, November 6, 2009 – After the Senate gave final approval last night without a dissenting vote, the House of Representatives voted overwhelmingly this afternoon to pass legislation containing an extension and expansion of the home buyer tax credit, completing Congressional action and sending the tax credit to President Obama for his signature, possibly as early as tomorrow.

The $8,000 homebuyer tax credit for first-time buyers, due to expire in 25 days, will be extended through April 30 of next year and buyers will have an additional two months, until the end of June, to close.  First-time buyers who are in the process of making a purchase will no longer need to worry about qualifying for the $8,000 tax credit if they close after the November 30 deadline.  The new legislation increases the income limit for couples with income up to $225,000, a nearly $55,000 increase above the level in existing law.

For the first time, the new legislation makes buyers who already own a home eligible for a credit.  A $6,500 maximum credit will be available to existing homeowners who have lived in their current residence for five of the prior eight years.  The legislation limits eligibility for the existing homeowner credit to homes worth $800,000 or less.

The legislation takes effect December 1 and is not retroactive.  Both credits are available only for primary residences, not second homes or investment properties.

If you are still confused about the $8,000 Tax Credit then you need to keep reading. The tax credit is still available, but will end on November 30, 2009. That means if you are a first time home buyer and have not found a home and negotiated a contract on it, you need to call me today to get started on your path to home ownership and the best thing your Uncle Sam is ever going to give you. Time is ticking away and you need atleast 30 days from the time of contract exection to the closing date. Not sure if you qualify? If you have never owned a home, you qualify. If you have not owned a principle residence in the last three years, you qualify.

What does the credit actually mean for you? The credit from Uncle Sam is 10% of the home’s purchase price up to $8,000. The only repayment required is if you sell the home within three years of the purchase. Are there any income restrictions? The limit on income is $75,000 for a single person or $150,000 for a married couple. Call me today to get started because time is ticking away and your free money from Uncle Sam will be gone!

This is from an article in the Wall Street Journal and I thought my readers would find it interesting…

First-time home buyers are scurrying to qualify for a federal tax credit that expires at the end of November — a trend that has been propping up sales following the worst downturn in decades. Because the closing process can drag on, buyers realistically have just a few weeks left to sign contracts; and they are submitting multiple offers to be certain that one goes through. Although lawmakers have proposed to extend and expand the credit, prospects for such a move are dimming as legislators are urged to show fiscal restraint following mega-bailouts of the financial and automobile sectors. Some housing analysts worry that the credit sparked unneeded supply and that its expiration could drag the market back down.