First time home buyers: Are you still at the computer, doing endless "research" on how to snag the $8000 TAX CREDIT for buying a house this year? 

Does the November 30th deadline seem like a million years away as you think about fireworks (not turkey leftovers)?

First time home buyers: Get your butts in gear. NOW.

This is the wrong time to claim you only get motivated when a deadline looms.

This is the wrong time to tell everyone you are a "last minute kinda person" who pulls an all nighter when you have a term paper, and shops for Christmas presents on December 24th.

Here's why: Buying a house takes longer than you think. There are 8000 reasons you DO NOT want to miss this deadline.

Let's back things up. Do you think OTHER first time home buyers might wait until the last minute? Lenders could very likely experience an overwhelming amount of applications this fall.

With applications already taking 45 days, it could easily take 60 days to close your loan. Or more. Lenders are already ridicuously understaffed.

This means you will need to be in contract no later than the end of September.

If you have not already done so, you will need to accomplish this during the months of July, August and September:

1. Find a Mortgage person
   
2. Find a Real Estate Agent
   
3. Find a House
4. Make an Offer, negotiate terms. Find another house if first offer is rejected. Get new offer accepted.
   
5. Get financing completed and loan closed.

 

Some likely time lines and what to expect:

1.  Apply for a mortgage.  Provide the required documents and ask for a pre-approval. This will uncover any glitches standing in the way of your approval. This will make certain you have the right amount of funds in your account, or lined up as a gift. This will let you know your price range before you begin shopping for a house. This will let the Realtor know you have done your homework and are serious. ESTIMATED TIME REQUIRED: 1-2 weeks

2.  Figure out where you want to live and find a Realtor.  Look for a Realtor that knows the neighborhood where you would like to buy. Communicate openly and be on the same page if you are buying with another person.  ESTIMATED  TIME REQUIRED: 2-3 weeks

3.  Shop for a house with your Realtor.  ESTIMATED TIME LINE: 3-4 weeks.

4.  Make an offer, negotiate terms, get in contract. Ask your Realtor about timing before making an offer on a short sale or a lender owned property.  ESTIMATED TIME LINE: 1-2 weeks or more...depending on how many offers it will take to get a house. Market could become highly competitive as the deadline looms.

5.  Secure financing with lender, and close the loan. Inspections and appraisal will occur during the time as well. ESTIMATED TIME LINE: 6 weeks to 8 weeks

Worst case estimated time line: 19 weeks.

Weeks until November 30th? 22 weeks, beginning next week.

Can you do this in less time? Yes you can.

Just like when you gave your Mom that lame ceramic unicorn for Christmas (purchased in a panic on Christmas Eve, thrown in an obviously used gift bag, then sneakily placed under the Christmas tree minutes before gift opening).

 

 

 

 

Written by Janet Guilbault, Mortgage Banker/Broker Based Out of the San Francisco Bay Area

It's the question I'm asked most often:  Nancy, How's the market doing?

So, let's take a look at figures for May 2009 in the top southwestern Illinois markets we work. This post covers Edwardsville, Illinois -- the 62025 zip code.

In May 2009, 40 new and existing homes were sold in Edwardsville. They ranged from a low of $59,900 to a high of $651,000 with the average selling price at $186,415. 

The list-to-sell price ratio for all homes in Edwardsville was 97 percent, higher than the overall market where the ratio is at 94 percent.

Homes stayed on the market an average of 139 days. Separating the new construction from existing home sales, new homes remained on the market an average of 420 days, existing homes 108 days.

One year ago, in May 2008, 48 homes sold during the month in Edwardsville which gives us a 17 percent decline in sales year over year.

There are currently 226 new and existing homes for sale in Edwardsville, 19 months of inventory at the current average monthly sales pace. (This absorbtion rate will drop as closings during the peak sales months of June, July and August figure into the equation.)

This tells us that sellers must be patient and must have their properties in tip top condition to rise to the top of their competitive set. The research also reminds us that buyers still have a lot of choice.

 

 

 

This is an actual check from one of my First Time Buyers who bought a home last month, and immediately filed his 2008 tax return - which he had already filed an extension for - and this week received the above check !

 

... before his home purchase, his return was going to give him a refund of approximately $4,000 !!!! ... as you can see, he qualified for the tax credit, and received $8,000 additional dollars from the government for buying his home.

 

@@@ FOR FURTHER INFORMATION - BE SURE TO CONSULT YOUR ACCOUNTANT TO SEE IF YOU CAN RECEIVE THIS YOURSELF @@@

 

Per the IRS.gov website, you may qualify to receive this credit if you meet the following qualifications:

"... qualifying taxpayers who buy a home before Dec. 1, 2009, can claim the credit on either their 2008 or 2009 tax returns. They do not have to repay the credit, provided the home remains their main home for 36 months after the purchase date. They can claim 10 percent of the purchase price up to $8,000, or $4,000 for married individuals filing separately.

The amount of the credit begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.

For purposes of the credit, you are considered to be a first-time homebuyer if you, and your spouse if you are married, did not own any other main home during the three-year period ending on the date of purchase."

 The credit itself:

• Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009.
• Applies only to homes used as a taxpayer's principal residence.
• Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar.
• Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed.

 

So if you were considering buying a home this year - be sure to talk to your accountant as you may also qualify to get $8,000 extra dollars for buying your first home !

 

ALSO: Be sure to check out a post  from respected Loan Officer Jeff Belonger explaining how you may be able to receive an 'up front loan' for this credit to use towards closing costs or additional downpayment over your mandatory 3.5% payment on your FHA loan !

@@@PLEASE NOTE: ALL INFORMATION ABOVE DEEMED RELIABLE PER THE IRS.GOV WEBSITE, HOWEVER IS SUBJECT TO CHANGE AT ANY POINT ON ANY DAY ! - CONSULT YOUR TAX ACCOUNTANT BEFORE EXPECTING ANY PORTION OF THIS CREDIT.

@@@@ UPDATED: BELOW IS THE FORM NEEDED TO FILE FOR THIS CREDIT IF YOU QUALIFY - YOUR ACCOUNTANT SHOULD HAVE IT AND WALK YOU THOUGH IT ! GOOD LUCK !

Dear Buyer: 

It's time for a little straight talk about real estate.

If you seriously want to buy your first home this year to take advantage of the $8,000 first-time homebuyer tax credit, low interest rates and the great selection of available homes, then this blog post is for you.

I've met a few of you in the last couple of weeks who are going about this process the wrong way. You're wasting your time and you could be wasting money. You're scanning the Internet, driving past a sign or looking at ads. When you find a property that catches your eye, you might call and ask questions about it. Or you might just wander into an open house at the property.

But then what?

Do you talk to the home's listing agent knowing that he is working for the seller? Do you panic and start looking for someone to help you at the last minute, losing the window of opportunity to make an offer on the house when it goes to another buyer?

All is not lost. By just reversing the process, you can be in your new home in no time. You need to shop for a good real estate buyer's agent before you ever think of shopping for your new home. 

A GOOD BUYER'S AGENT WILL...

...look out for your interests during the transaction. After all, the seller has an agent. Shouldn't you? 

...meet with you before you ever set foot in a house that is listed for sale. Your conversation should be all about your needs and your wants in a new home and about creating a plan that will get you into home ownership with the least amount of hassle.

...ask a lot of questions and will listen -- really listen -- to what you have to say.

...never be too busy to answer questions.

...find homes that meet your needs and will make appointments for you to see the properties privately with no interruptions so you can carefully consider their merits.

...help you eliminate the homes that don't fit your criteria and focus on those that do.

...never try to "sell" you a house. But she will help you buy the house that you ultimately choose by managing the buying process and negotiating the best possible deal for you in the current market.

...communicate in a way that is best for you. Are you an e-mailer? Do you live on Facebook? How about Twitter tweets or texting. Test an agent by sending a message to see how quickly she or he responds. If it takes too long to hear back from them, move on to someone else. 

...offer solid research to help you make a decision. She'll know what other homes in your target property's neighborhood have sold for in recent weeks and months. She'll be aware of external factors in the area -- both good and bad -- that might influence your decision. She'll know the target home's listing history and will go over the seller's disclosures with you.

...stay in close touch with your lender to make sure your pre-approval turns into a solid loan commitment that will allow your deal to close on time.

Choosing your agent before you choose your home will make the buying process less challenging and much more enjoyable and successful. Happy agent shopping!

______________________________________________________________________________________________

About the Author: Nancy Milton, GRI, is a Realtor with the Just Ducky Homes team at Coldwell Banker Brown Realtors in Edwardsville, Illinois. She and Kristina Pratt help their customers buy and sell homes and investment properties in St. Louis' Illinois suburbs of Madison and St. Clair counties with special emphasis on real estate in the communities of Edwardsville, Glen Carbon, Maryville, Collinsville and Troy. For more information, visit their web site at http://www.JustDuckyHomes.com or e-mail Nancy@JustDuckyHomes.com.

 

When asked what the two most important words for home sellers would be, most would say a combination including "price, location, or condition."  Most advice on selling a house centers around these three subjects, and plenty has been written about each.  If you want to have an advantage over the other sellers in your price range, I suggest you consider two other words.

What most advice on selling doesn't mention is "perceived value."

Your house is not worth what you think it is worth, or what your Realtor thinks it is worth, or what you need to get for it, or what your neighbor's house sold for.  Your Realtor will help you determine a listing price, but the actual worth of your house is what a buyer perceives it to be worth. 

What buyers think is the only thing that matters.  Buyer's perception is your reality.

The secret to a fast sale is creating a perception of value throughout the house. 

Unmatched value, in comparison to the other houses you are competing against, is the way to guarantee that your house sells before the rest. 

Here are some examples of ways to make a house appear more valuable:

• Updated light fixtures
• Current paint colors, wall art, window treatments
• New carpet or refinished hardwood
• Updated hardware on cabinets
• Slipcovers for dated furniture
• Organized closets and cabinets
• Impressive and appealing MLS photos

Consult with your Realtor and a professional home stager for more ways to make your house appear more valuable to buyers.  Also, you should visit the competition and see how your house measures up. 

Don't think of preparing your house for sale as an expense, think of it as an investment. 

 

 

 

Have you seen the movie musical The King and I? There’s a charming scene where the King, as played by Yul Brynner, defends his kingly tradition of having many wives by singing a short and sweet song to Anna, as played by Deborah Kerr.

 

To fly from blossom to blossom
A honey bee must be free,
But blossom must not ever fly
From bee to bee to bee.

 

Lyrics from The King and I

 

 

 

 

 

This is how certain homebuyers search for homes, as if they’re blossoms flying from bee to bee to bee. Instead of contacting one real estate agent, they contact the listing agent of every house they wish to tour, meet with the agents individually, and if they happen to like any one agent’s listing, make an offer.

 

At best, these independent-minded buyers have turned home buying into an unnecessarily difficult process. At worst, they might ultimately complicate the purchase in ways they never anticipated and unnecessarly do themselves a disservice.

 

This is how independent buyers work ~~

• Either they know someone in the industry so they can tap into the local MLS, or they rely on Realtor®.com and similar websites to locate houses of interest.
• They call the listing agents of each house and arrange multiple appointments.
• They meet with each agent individually, either at their offices or at each house.
  
• When they find the perfect house, they will use the listing agent to finalize the purchase.

In Florida unlike many other states, it’s perfectly legitimate for the listing agent to also bring the buyer by acting as a transaction broker rather than a dual agent. Still, I perceive many problems with buyers going this independent route.

1. Unnecessary work for buyers - By contacting agent after agent after agent to arrange separate showing appointments, independent buyers are putting in a whole lot of effort that a single agent, whom they like and trust, would ordinarily do on their behalf.
2. Extra time and hassle for buyers - If the agent is diligent, he or she will ask independent buyers come into the office, which expands the amount of time needed to see the property but is a necessary step for the listing agent, who wants to make certain the buyers are serious.
3. Wasted effort for agent - Whether or not the buyers come into the office or meet the agent at the house, the agent will try to establish a some sort of relationship, even if it  will last for all of one showing appointment. The agent will necessarily attempt to financially qualify the buyers, offer to e-mail free listings directly from the MLS, and give out information, pamphlets, and a bunch of smiles. Trying to develop rapport or trust with buyers on the part of the agent doesn’t always work since the buyers are only interested in access. 
4. Time doubled or tripled for each showing - In each case, independent buyers must explain their preference for working alone and briefly outline their needs while explaining repeatedly why they choose to search for a home on their own and not work with any one agent.
5. Distrust on both sides - Even while the agent is trying to diligently establish a working relationship, however fleeting, independent buyers usually stand their ground. 
6. Good business relationship? NOT - It soon becomes clear to the agent and the buyers that the situation cannot foster a strong business relationship since it initially begins with distrust. In the end, aren’t independent buyers really saying they don’t trust an agent to represent their best interests?
   
7. Missing out on agent’s strong suit - A good agent can intuit what their buyers are looking for, even when the buyers don’t verbally express their underlying desires. Buyers, for instance, might say, "4 bedrooms, 3 baths," but they’re also looking for privacy, openness, accessibility, calling distance between family members, and safety. Sometimes, just by putting together comments and body language, a perceptive agent can read their buyers. However, this can’t happen with one brief meeting, and the buyers will never know what they’ve missed out on. 
8. Luck of the draw - When the independent buyer finds the house they wish to purchase, it’s very possible they might not gel with the listing agent and won’t want to work him or her. It’s only human nature for buyers and agents not to establish  affinity or a place of trust. Establishing that rapport ought to happen before buyers are ready to make the biggest financial transaction they have ever made. But now they’ve backed themselves into a corner, and they could very well be stuck with an agent they don’t feel right about. Of course, they could dump the listing agent and go back to one of the other agents they met previously, in which case the listing agent won’t be particularly pleased, and the new selling agent will be placed in an awkward position. 

In the final analysis, independent homebuyers who practice real estate without a license aren’t looking out for the best interests of their 'clients' and ought to resign in favor of someone who can.

*  *  *  *  *  *

Proudly selling real estate in Oviedo, Winter Springs, East Orlando, City of Orlando & Winter Park 

 

Neighborhoods in Oviedo - Aloma Woods, Bentley Woods, Little Creek, Kingsbridge, Riverside at Twin Rivers, Alafaya Woods, Live Oak Reserve and many other others

Neighborhoods in Winter Springs - Tuscawilla and many others

Neighborhoods in East Orlando - Avalon Park, Eastwood, Stoneybrook, Waterford, Cypress Springs, Lake Nona and many others

Neighborhoods in City of Orlando - Delaney Park, Thornton Park, College Park, Colonialtown, Audubon Park, Baldwin Park, Lake Nona and many others

Neighborhoods in Winter Park - Comstock Park, Lake Knowles Terrace, Sylvan Lake Shores, Charmont, Orwin Manor and many others

 

 

JUDY CHAPMAN

Florida Licensed Realtor® and Sales Associate

Certified Negotiation Specialist (CNS)

Coldwell Banker Residential Real Estate

521 E Mitchell Hammock Road

Oviedo, FL 32765

 

Specializing in Short Sale Solutions for Homeowners Facing Foreclosure

 

 

 

To put your home on the market, please feel free to reach me at (407) 227-7763. Questions about the Orlando real estate market always welcome.