MY HOME OFFICE AT 134 MAIN ST. IN NEW PALTZ IS HAVING A FOOD AND COAT DRIVE FROM DEC. 16TH TO THE 31ST OF DECEMBER.
WE WOULD BE VERY GRATEFUL FOR ANY GOOD USED COATS AND ANY FOOD YOU WOULD LIKE TO DONATE.
STOP ON DOWN TO OUR OFFICE OR IF YOU HAVE A LARGE AMOUNT OF COATS OR FOOD CALL US AAT 255-9400 AND WE WILLPICK UP.
BLESSINGS TO ALL.
Wednesday, December 16, 2009
GREAT NEWS FOR 1ST TIME BUYERS FROM SONYMA
Here is some great first time buyer news: SONYMA has announced two new features that can be used with their loan programs.
1. Down payment assistance loan of up to 3% of the home price with a max of $10,000. This is a no payment 0% interest rate loan that is forgiven after 10 years.
2. Tax credit advance loan. Now the applicants can receive their $8,000 federal tax credit at the closing, when they need it! If the advance is paid back by 6/30 2011 there is no interest ! In order to be eligible borrowers must be generally be First time buyers and have contracts for a home signed on or before April 30th 2010 and close on or before June 30th 2010. SONYMA will launch this on 1/1/2010 .
Income limits for Ulster County:
1-2 person household 3 + Household
$83,640 $ 97,580
Max single family home price $ 354,970
1. Down payment assistance loan of up to 3% of the home price with a max of $10,000. This is a no payment 0% interest rate loan that is forgiven after 10 years.
2. Tax credit advance loan. Now the applicants can receive their $8,000 federal tax credit at the closing, when they need it! If the advance is paid back by 6/30 2011 there is no interest ! In order to be eligible borrowers must be generally be First time buyers and have contracts for a home signed on or before April 30th 2010 and close on or before June 30th 2010. SONYMA will launch this on 1/1/2010 .
Income limits for Ulster County:
1-2 person household 3 + Household
$83,640 $ 97,580
Max single family home price $ 354,970
Tuesday, November 24, 2009
IF YOU WERE THINKING OF SELLING--NOW APPEARS TO BE THE TIME
With the new extended and expanded tax credit approved and in place it appears that home owners who were sitting on the fence about selling could come down off the fence and list their home. I love to list and sell homes in Ulster County New York
This is a reprint from Rismedia:
, November 24, 2009—(MCT)—House shopping usually slows down in the winter, as people put their home searches on hold to trim the tree, buy presents to put under it and avoid the chilly weather. This winter, however, might be different, thanks to the extended—and expanded—first-time home-buyer tax credit.
“We’re going to see far more interest in the fourth quarter than we generally do because of the tax credit,” said Heather Fernandez, vice president of Trulia.com, a real estate search engine. Traffic surged on the site on Nov. 5, the day Congress approved the credit extension, she said.
The new law extends the tax credit for first-time home buyers and opens it up to some existing homeowners as well: The credit is now 10% of the home price, up to $8,000 for first-time buyers and up to $6,500 for repeat buyers. All buyers must have a binding contract on a house in place on or before April 30, 2010. The sale must close on or before June 30. 2010.
To be considered a first-time home buyer, an individual must not have owned a home in the past three years. And to be eligible, existing homeowners need to have lived in the same principal residence for five consecutive years during the eight-year period that ends when the new home is purchased. The credit is only for principal residences.
Income limits have risen as well. According to the IRS, the home buyer tax credit now phases out for individuals with modified adjusted gross incomes between $125,000 and $145,000, and between $225,000 and $245,000 for people filing joint returns.
The inclusion of move-up buyers might inspire homeowners to take action and list their house if they’ve been putting it off, said Carolyn Warren, a Seattle, Wash.-based mortgage broker and banker and author of the book Homebuyers Beware. “If somebody loves their home, it’s not going to entice them to sell. If they’ve had it on the back of their minds and really would like to move up, it might push them into doing it sooner than later,” Warren said.
The credit isn’t expected to have as large of an effect on move-up buyers as it has on first-time buyers, according to the Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions. The maximum tax credit is about 4% of the average purchase price for first-time buyers, but about 2% of the average purchase price for move-up buyers.
“We estimate that the first-time home buyer tax credit will result in a 10% increase in home sales from March through November of 2009,” said Thomas Popik, research director for Campbell Surveys, in a news release. “We’d expect the effect of the proposed tax credit for current homeowners to be about half as large—from December until the tax credit expiration in the spring of next year, it might be 5% of 3 million transactions, or about 150,000 incremental home sales. Incremental sales to first-time home buyers could be an additional 300,000, for a total of 450,000 incremental sales due to the tax credit extension.”
Tips for buyersInterested in buying a home and claiming the home-buyer tax credit? Below are five tips:
1. Don’t procrastinate. Start searching for a home now. Getting an early start will give you a better chance of finding the right house before the credit deadline. Before you start house hunting, get preapproved for a mortgage, said Eddie Fadel, a Miami-based mortgage banker, and do a realistic assessment of what you can afford. Buyers who have to sell an existing home should price it aggressively from the beginning to drum up interest and get a buyer as soon as possible.
2. Don’t count on another extension. The credit won’t be available forever, Fadel said. If you want to take advantage, be sure to make that spring deadline.
“This is a medication for the housing crisis. Once the patient—which is the housing market—cures, there will be no medication needed,” he said.
3. Mind the interest rates. Mortgage interest rates are low right now, but will likely rise next year. Higher rates will affect your monthly mortgage payments, thus the affordability of the house you are buying. Average rates on the 30-year fixed-rate mortgage have been hovering around 5%, but when the government stops buying large amounts of mortgage-backed securities, rates could rise.
4. Communicate with your lender. Throughout the process, make sure you’re communicating with your lender regularly; if there’s a piece of documentation you’re asked for, get it turned in as soon as possible, said Doug Heddings, a New York-based real estate agent with Charles Rutenberg Realty. Good communication is important in making sure the loan closes on time. And think twice before pursuing a short sale if you want to make the credit deadline. That’s where someone sells a home for less than what he or she owes on a mortgage, with permission of the lender. The process can be lengthy and unpredictable because the homeowner’s lender has to approve any deal, and can be complicated when there is a second mortgage associated with the property.
5. Don’t take shortcuts. Don’t forgo any of the steps you would normally take just to make the tax credit deadline. Make sure the house is a good fit for your needs and get a home inspection. Skipping steps could cost you in the long run.
The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information on this blog is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose
This is a reprint from Rismedia:
, November 24, 2009—(MCT)—House shopping usually slows down in the winter, as people put their home searches on hold to trim the tree, buy presents to put under it and avoid the chilly weather. This winter, however, might be different, thanks to the extended—and expanded—first-time home-buyer tax credit.
“We’re going to see far more interest in the fourth quarter than we generally do because of the tax credit,” said Heather Fernandez, vice president of Trulia.com, a real estate search engine. Traffic surged on the site on Nov. 5, the day Congress approved the credit extension, she said.
The new law extends the tax credit for first-time home buyers and opens it up to some existing homeowners as well: The credit is now 10% of the home price, up to $8,000 for first-time buyers and up to $6,500 for repeat buyers. All buyers must have a binding contract on a house in place on or before April 30, 2010. The sale must close on or before June 30. 2010.
To be considered a first-time home buyer, an individual must not have owned a home in the past three years. And to be eligible, existing homeowners need to have lived in the same principal residence for five consecutive years during the eight-year period that ends when the new home is purchased. The credit is only for principal residences.
Income limits have risen as well. According to the IRS, the home buyer tax credit now phases out for individuals with modified adjusted gross incomes between $125,000 and $145,000, and between $225,000 and $245,000 for people filing joint returns.
The inclusion of move-up buyers might inspire homeowners to take action and list their house if they’ve been putting it off, said Carolyn Warren, a Seattle, Wash.-based mortgage broker and banker and author of the book Homebuyers Beware. “If somebody loves their home, it’s not going to entice them to sell. If they’ve had it on the back of their minds and really would like to move up, it might push them into doing it sooner than later,” Warren said.
The credit isn’t expected to have as large of an effect on move-up buyers as it has on first-time buyers, according to the Campbell/Inside Mortgage Finance Monthly Survey of Real Estate Market Conditions. The maximum tax credit is about 4% of the average purchase price for first-time buyers, but about 2% of the average purchase price for move-up buyers.
“We estimate that the first-time home buyer tax credit will result in a 10% increase in home sales from March through November of 2009,” said Thomas Popik, research director for Campbell Surveys, in a news release. “We’d expect the effect of the proposed tax credit for current homeowners to be about half as large—from December until the tax credit expiration in the spring of next year, it might be 5% of 3 million transactions, or about 150,000 incremental home sales. Incremental sales to first-time home buyers could be an additional 300,000, for a total of 450,000 incremental sales due to the tax credit extension.”
Tips for buyersInterested in buying a home and claiming the home-buyer tax credit? Below are five tips:
1. Don’t procrastinate. Start searching for a home now. Getting an early start will give you a better chance of finding the right house before the credit deadline. Before you start house hunting, get preapproved for a mortgage, said Eddie Fadel, a Miami-based mortgage banker, and do a realistic assessment of what you can afford. Buyers who have to sell an existing home should price it aggressively from the beginning to drum up interest and get a buyer as soon as possible.
2. Don’t count on another extension. The credit won’t be available forever, Fadel said. If you want to take advantage, be sure to make that spring deadline.
“This is a medication for the housing crisis. Once the patient—which is the housing market—cures, there will be no medication needed,” he said.
3. Mind the interest rates. Mortgage interest rates are low right now, but will likely rise next year. Higher rates will affect your monthly mortgage payments, thus the affordability of the house you are buying. Average rates on the 30-year fixed-rate mortgage have been hovering around 5%, but when the government stops buying large amounts of mortgage-backed securities, rates could rise.
4. Communicate with your lender. Throughout the process, make sure you’re communicating with your lender regularly; if there’s a piece of documentation you’re asked for, get it turned in as soon as possible, said Doug Heddings, a New York-based real estate agent with Charles Rutenberg Realty. Good communication is important in making sure the loan closes on time. And think twice before pursuing a short sale if you want to make the credit deadline. That’s where someone sells a home for less than what he or she owes on a mortgage, with permission of the lender. The process can be lengthy and unpredictable because the homeowner’s lender has to approve any deal, and can be complicated when there is a second mortgage associated with the property.
5. Don’t take shortcuts. Don’t forgo any of the steps you would normally take just to make the tax credit deadline. Make sure the house is a good fit for your needs and get a home inspection. Skipping steps could cost you in the long run.
The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information on this blog is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose
Tuesday, November 17, 2009
CAP RATE OF 8%
I just saw a listing on our MLS with a cap rate of 8%. Now I am sure that pretty much everyone that might be reading this blog knows what they are getting for their money in cd's and t bonds etc. So why is this listing still on the market? If the owner is correct and this is truly giving a cap rate of 8% where are the investors. The thing with real estate is, everyone needs to live somewhere just like everyone produces garbage and everyone leaves this earth at sometime. That is why those respective businesses are usually good to get into. So why has this listing, in a great location not sold. You tell me!
Here are some possible answers to questions about the new rules
Q: What has stayed the same in the new law?
1) First-time home buyers still get a credit of as much as 10% of the purchase price, up to a maximum $8,000. "First-time" means people, including both partners of a married couple, who haven't owned a principal residence for three years before the purchase.
2) All taxpayers who claim a credit must use the home as a principal residence for the next three consecutive years.
3) The credits offer dollar-for-dollar reductions of tax and are refundable. This means that a taxpayer who doesn't pay enough tax to offset the credit can get a refund. For example, if you qualify for an $8,000 credit but only owe $5,000 in tax, you could receive a $3,000 check from the Internal Revenue Service.
4) Under the new law, as under the old, 2009 home buyers may claim the credit on either their 2008 or 2009 returns, and 2010 buyers may claim the credit on either their 2009 or 2010 returns.
5) Taxpayers do not qualify for a credit if they buy from a lineal ancestor or descendent, including parents or grandparents and children or grandchildren.
Q: What has changed?
Several important features took effect as of Nov. 6:
1) To take advantage of the tax credits, a buyer must have a contract in place before May 1, 2010, and the deal must close before July 1, 2010. No further extension is expected.
2) The price of the house is now capped. For purchases made after Nov. 6, no credit is available for any home costing more than $800,000.
3) There is now a tax credit for repeat buyers as well as for first-time buyers. Taxpayers who have lived in one residence for five consecutive years of the past eight can now qualify for a tax credit of as much as 10% of the purchase price, up to a maximum $6,500, of a new principal residence. The new home does not have to cost more than the old one.
4) Income limits for people who qualify for a tax credit are far more generous than under the previous law. For single filers, the credits now phase out between $125,000 and $145,000 of modified adjusted gross income; for married couples, the range is $225,000 to $245,000. For most people, modified adjusted gross income will be the same as adjusted gross income.
5) The new law contains anti-abuse measures designed to stem fraud, which became a problem with the previous home-buyer tax credit. Most buyers must be 18 or older, and no taxpayer may take a credit if he or she is claimed as a dependent on someone else's return. Taxpayers taking the credit will also have to furnish proof of purchase. According to Robert Dietz of the National Association of Home Builders, this will usually be a HUD-1 form.
6) People taking the tax credit, as under the old law, aren't allowed to buy a home from a lineal ancestor or descendent. The new law, applying to purchases made after Nov. 6, also says a person may not take a credit if the home is purchased from a spouse or the spouse's lineal relatives.
Q: If I bought a house last spring or summer, can I get a tax credit?
You qualify if you are a first-time buyer and meet the other requirements, but not if you are a repeat buyer. The new credit for repeat buyers applies only to purchases made after Nov. 6.
Q: What is the definition of "principal residence"?
If you own more than one home, your principal residence is usually the one where you spend most of your time. In determining residence the IRS may also consider where your family lives and your mailing address for bills and correspondence, among other factors.
Q: Can a principal residence be something besides a conventional house?
Yes. A principal residence may also be a condominium, co-op apartment, attached or semi-attached townhouse, or even—if it has eating, sleeping and toilet facilities—a boat, motor home or trailer. Manufactured homes qualify in some states.
Q: Does the person who claims the credit have to use the home as a principal residence?
Yes.
Q: If I buy a new home and live in it, do I also have to sell my old one in order to take advantage of the credit?
This is unclear. The law appears to allow repeat buyers to retain their old home, for which no tax credit was given, while claiming a credit for the new one. What is clear is that if you buy a new home using the credit, you must use it as your principal residence.
Q: How may the credits be allocated among two or more unmarried buyers?
This also is unclear. But if the IRS adopts the rules that applied to the previous tax credit, which are detailed in IRS Notice 2009-12, there is room for planning. The notice says that taxpayers may use "any reasonable manner" to allocate the credit. It even provides an example in which two unmarried buyers allocate the credit to the lower earner in order to qualify for it.
Q: I need the credit refund to help make the down payment. What can I do?
There's no rushing the IRS. But one option is to adjust your current withholding from your paychecks to reflect the fact that you will be taking the credit later. But be careful: If you don't make the purchase, then you may owe interest and penalties. Consult a tax adviser.
Q: Is it possible to qualify for a credit if I am building a home on a lot I already own?
Yes, according to the National Association of Home Builders. The purchase date is usually considered to be the date of first occupancy, so you would need to move in before July 1, 2010.
Q: May I take a credit if I am building a large addition to my home?
No; these credits apply only to the purchase of a home.
Q: Are there special rules for the military?
Yes. In general, members of the military and foreignservice and intelligence communities who are serving overseas on "official extended duty" for at least 90 days during 2009 and the first four months of 2010 have an extra year to take advantage of these credits. Consult a tax adviser who specializes in this area.
Q: Where can I get more information?
Go to federalhousingtaxcredit.com, a Web site sponsored by the National Association of Home Builders. You can also look for links from the IRS's home page, www.irs.gov, or search for Homebuyer Credit. Another option is to consult a professional tax adviser.
sandyreid.com is providing the information on this blog for general guidance only. The information on this blog does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information on this blog is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose
1) First-time home buyers still get a credit of as much as 10% of the purchase price, up to a maximum $8,000. "First-time" means people, including both partners of a married couple, who haven't owned a principal residence for three years before the purchase.
2) All taxpayers who claim a credit must use the home as a principal residence for the next three consecutive years.
3) The credits offer dollar-for-dollar reductions of tax and are refundable. This means that a taxpayer who doesn't pay enough tax to offset the credit can get a refund. For example, if you qualify for an $8,000 credit but only owe $5,000 in tax, you could receive a $3,000 check from the Internal Revenue Service.
4) Under the new law, as under the old, 2009 home buyers may claim the credit on either their 2008 or 2009 returns, and 2010 buyers may claim the credit on either their 2009 or 2010 returns.
5) Taxpayers do not qualify for a credit if they buy from a lineal ancestor or descendent, including parents or grandparents and children or grandchildren.
Q: What has changed?
Several important features took effect as of Nov. 6:
1) To take advantage of the tax credits, a buyer must have a contract in place before May 1, 2010, and the deal must close before July 1, 2010. No further extension is expected.
2) The price of the house is now capped. For purchases made after Nov. 6, no credit is available for any home costing more than $800,000.
3) There is now a tax credit for repeat buyers as well as for first-time buyers. Taxpayers who have lived in one residence for five consecutive years of the past eight can now qualify for a tax credit of as much as 10% of the purchase price, up to a maximum $6,500, of a new principal residence. The new home does not have to cost more than the old one.
4) Income limits for people who qualify for a tax credit are far more generous than under the previous law. For single filers, the credits now phase out between $125,000 and $145,000 of modified adjusted gross income; for married couples, the range is $225,000 to $245,000. For most people, modified adjusted gross income will be the same as adjusted gross income.
5) The new law contains anti-abuse measures designed to stem fraud, which became a problem with the previous home-buyer tax credit. Most buyers must be 18 or older, and no taxpayer may take a credit if he or she is claimed as a dependent on someone else's return. Taxpayers taking the credit will also have to furnish proof of purchase. According to Robert Dietz of the National Association of Home Builders, this will usually be a HUD-1 form.
6) People taking the tax credit, as under the old law, aren't allowed to buy a home from a lineal ancestor or descendent. The new law, applying to purchases made after Nov. 6, also says a person may not take a credit if the home is purchased from a spouse or the spouse's lineal relatives.
Q: If I bought a house last spring or summer, can I get a tax credit?
You qualify if you are a first-time buyer and meet the other requirements, but not if you are a repeat buyer. The new credit for repeat buyers applies only to purchases made after Nov. 6.
Q: What is the definition of "principal residence"?
If you own more than one home, your principal residence is usually the one where you spend most of your time. In determining residence the IRS may also consider where your family lives and your mailing address for bills and correspondence, among other factors.
Q: Can a principal residence be something besides a conventional house?
Yes. A principal residence may also be a condominium, co-op apartment, attached or semi-attached townhouse, or even—if it has eating, sleeping and toilet facilities—a boat, motor home or trailer. Manufactured homes qualify in some states.
Q: Does the person who claims the credit have to use the home as a principal residence?
Yes.
Q: If I buy a new home and live in it, do I also have to sell my old one in order to take advantage of the credit?
This is unclear. The law appears to allow repeat buyers to retain their old home, for which no tax credit was given, while claiming a credit for the new one. What is clear is that if you buy a new home using the credit, you must use it as your principal residence.
Q: How may the credits be allocated among two or more unmarried buyers?
This also is unclear. But if the IRS adopts the rules that applied to the previous tax credit, which are detailed in IRS Notice 2009-12, there is room for planning. The notice says that taxpayers may use "any reasonable manner" to allocate the credit. It even provides an example in which two unmarried buyers allocate the credit to the lower earner in order to qualify for it.
Q: I need the credit refund to help make the down payment. What can I do?
There's no rushing the IRS. But one option is to adjust your current withholding from your paychecks to reflect the fact that you will be taking the credit later. But be careful: If you don't make the purchase, then you may owe interest and penalties. Consult a tax adviser.
Q: Is it possible to qualify for a credit if I am building a home on a lot I already own?
Yes, according to the National Association of Home Builders. The purchase date is usually considered to be the date of first occupancy, so you would need to move in before July 1, 2010.
Q: May I take a credit if I am building a large addition to my home?
No; these credits apply only to the purchase of a home.
Q: Are there special rules for the military?
Yes. In general, members of the military and foreignservice and intelligence communities who are serving overseas on "official extended duty" for at least 90 days during 2009 and the first four months of 2010 have an extra year to take advantage of these credits. Consult a tax adviser who specializes in this area.
Q: Where can I get more information?
Go to federalhousingtaxcredit.com, a Web site sponsored by the National Association of Home Builders. You can also look for links from the IRS's home page, www.irs.gov, or search for Homebuyer Credit. Another option is to consult a professional tax adviser.
sandyreid.com is providing the information on this blog for general guidance only. The information on this blog does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information on this blog is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose
Saturday, November 14, 2009
Some info gathered about the $6500 Tax Credit
Home Buyer Tax Credits
The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.
Who is eligible to claim the $6,500 tax credit?Qualified move-up or repeat home buyers purchasing any kind of home are eligible to claim this credit.
What is the definition of a move-up or repeat home buyer?The law defines a tax credit qualified move-up home buyer (“long-time resident”) as a home owner who has owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
How is the amount of the tax credit determined?The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.
Are there any income limits for claiming the tax credit?Yes. The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
What is “modified adjusted gross income”?Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and the first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.To determine modified adjusted gross income (MAGI), add to AGI certain amounts of foreign-earned income.
If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?Possibly. It depends on your income. Partial credits of less than $6,500 are available for some taxpayers whose MAGI exceeds the phaseout limits.
Can you give me an example of how the partial tax credit is determined?Just as an example, assume that a married couple has a modified adjusted gross income of $235,000. The applicable phaseout to qualify for the tax credit is $225,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phaseout range of $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $6,500 by 0.5. The result is $3,250.Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $138,000. The buyer’s income exceeds $125,000 by $13,000. Dividing $13,000 by the phaseout range of $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $6,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,275.Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008? How is this different than the rules established in early 2009?The previous tax credits applied only to first-time home buyers and were for different amounts of money.
How do I claim the tax credit? Do I need to complete a form or application? Are there documentation requirements?You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS for 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns).No other applications are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and repeat home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase. Home buyers must attach a copy of their HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.
What types of homes will qualify for the tax credit?Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.It is important to note that you cannot purchase a home from, among other family members, your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse or your spouse’s family members. Please consult with your tax advisor for more information. also see IRS form 5405..
I read that the tax credit is “refundable.” What does that mean?The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $6,500 home buyer tax credit. As a result, the taxpayer would receive a check for $5,500 ($6,500 minus the $1,000 owed).
Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be after November 6, 2009 and on or before April 30, 2010 (or by June 30, 2010, provided a binding sales contract was in force by April 30, 2010).In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date. Be sure to check with a tax advisor in cases where a HUD-1 form is not used at settlement to be sure you have sufficient documentation to attach to IRS form 5405.
Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?Yes. The tax credit can be combined with an MRB home buyer program.
I am not a U.S. citizen. Can I claim the tax credit?Perhaps. Anyone who is not a nonresident alien (as defined by the IRS) and who has owned and resided in a principal residence in the United States for at least five consecutive years of the eight years prior to the purchase date can claim the tax credit if they meet the income limits. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. The IRS provides a definition of “nonresident alien” in IRS Publication 519.
Is a tax credit the same as a tax deduction?No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $6,500 in income taxes and who receives an $6,500 tax credit would owe nothing to the IRS.A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $6,500 in income taxes. If the taxpayer receives a $6,500 deduction, the taxpayer’s tax liability would be reduced by $975 (15 percent of $6,500), or lowered from $6,500 to $5,525.
Is there a way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 or 2010 tax return?Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.Buyers should adjust the withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.In addition, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. As a result, some state housing finance agencies have introduced programs that provide short-term second mortgage loans that may be used to fund a downpayment. Prospective home buyers should check with their state housing finance agency to see if such a program is available in their community. To date, 18 state agencies have announced tax credit assistance programs, and more are expected to follow suit.
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HUD allows “monetization” of the tax credit. What does that mean?It means that HUD will allow buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes to receive a refund. These funds may be used for certain downpayment and closing cost expenses.Under the guidelines announced by HUD, non-profits and FHA-approved lenders are allowed to give home buyers short-term loans. The guidelines also allow government agencies, such as state housing finance agencies, to facilitate home sales by providing longer term loans secured by second mortgages.Housing finance agencies and other government entities may also issue tax credit loans, which home buyers may use to satisfy the FHA 3.5 percent downpayment requirement.In addition, approved FHA lenders can purchase a home buyer’s anticipated tax credit to pay closing costs and downpayment costs above the 3.5 percent downpayment that is required for FHA-insured homes.If I’m qualified for the tax credit and buy a home in 2009 (or 2010), can I apply the tax credit against my 2008 (or 2009) tax return?Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 (or 2010) as if the purchase occurred on December 31, 2008 (or if in 2010, December 31, 2009). This means that the previous year’s income limit (MAGI) applies and the election accelerates when the credit can be claimed. A benefit of this election is that a home buyer in 2009 or 2010 will know their prior year MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.Taxpayers buying a home who wish to claim it on their prior year tax return, but who have already submitted their tax return to the IRS, may file an amended return claiming the tax credit using Form 1040X. You should consult with a tax professional to determine how to arrange this.
For a home purchase in 2009 or 2010, can I choose whether to treat the purchase as occurring in the prior or present year, depending on in which year my credit amount is the largest?Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in the present year and a larger credit would be available using the prior year MAGI amounts, then you can choose the year that yields the largest credit amount.
sandyreid.com is providing the information on this blog for general guidance only. The information on this blog does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information on this blog is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose
The Worker, Homeownership, and Business Assistance Act of 2009 has established a tax credit of up to $6,500 for qualified move-up/repeat home buyers (existing home owners) purchasing a principal residence after November 6, 2009 and on or before April 30, 2010 (or purchased by June 30, 2010 with a binding sales contract signed by April 30, 2010).The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation.
Who is eligible to claim the $6,500 tax credit?Qualified move-up or repeat home buyers purchasing any kind of home are eligible to claim this credit.
What is the definition of a move-up or repeat home buyer?The law defines a tax credit qualified move-up home buyer (“long-time resident”) as a home owner who has owned and resided in a home for at least five consecutive years of the eight years prior to the purchase date. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. Repeat home buyers do not have to purchase a home that is more expensive than their previous home to qualify for the tax credit.
How is the amount of the tax credit determined?The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $6,500. Purchases of homes priced above $800,000 are not eligible for the tax credit.
Are there any income limits for claiming the tax credit?Yes. The income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return. The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) above those limits. The phaseout range for the tax credit program is equal to $20,000. That is, the tax credit amount is reduced to zero for taxpayers with MAGI of more than $145,000 (single) or $245,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
What is “modified adjusted gross income”?Modified adjusted gross income or MAGI is defined by the IRS. To find it, a taxpayer must first determine "adjusted gross income" or AGI. AGI is total income for a year minus certain deductions (known as "adjustments" or "above-the-line deductions"), but before itemized deductions from Schedule A or personal exemptions are subtracted. On Forms 1040 and 1040A, AGI is the last number on page 1 and the first number on page 2 of the form. For Form 1040-EZ, AGI appears on line 4 (as of 2007). Note that AGI includes all forms of income including wages, salaries, interest income, dividends and capital gains.To determine modified adjusted gross income (MAGI), add to AGI certain amounts of foreign-earned income.
If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?Possibly. It depends on your income. Partial credits of less than $6,500 are available for some taxpayers whose MAGI exceeds the phaseout limits.
Can you give me an example of how the partial tax credit is determined?Just as an example, assume that a married couple has a modified adjusted gross income of $235,000. The applicable phaseout to qualify for the tax credit is $225,000, and the couple is $10,000 over this amount. Dividing $10,000 by the phaseout range of $20,000 yields 0.5. When you subtract 0.5 from 1.0, the result is 0.5. To determine the amount of the partial first-time home buyer tax credit that is available to this couple, multiply $6,500 by 0.5. The result is $3,250.Here’s another example: assume that an individual home buyer has a modified adjusted gross income of $138,000. The buyer’s income exceeds $125,000 by $13,000. Dividing $13,000 by the phaseout range of $20,000 yields 0.65. When you subtract 0.65 from 1.0, the result is 0.35. Multiplying $6,500 by 0.35 shows that the buyer is eligible for a partial tax credit of $2,275.Please remember that these examples are intended to provide a general idea of how the tax credit might be applied in different circumstances. You should always consult your tax advisor for information relating to your specific circumstances.
How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008? How is this different than the rules established in early 2009?The previous tax credits applied only to first-time home buyers and were for different amounts of money.
How do I claim the tax credit? Do I need to complete a form or application? Are there documentation requirements?You claim the tax credit on your federal income tax return. Specifically, home buyers should complete IRS for 5405 to determine their tax credit amount, and then claim this amount on line 67 of the 1040 income tax form for 2009 returns (line 69 of the 1040 income tax form for 2008 returns).No other applications are required, and no pre-approval is necessary. However, you will want to be sure that you qualify for the credit under the income limits and repeat home buyer tests. Note that you cannot claim the credit on Form 5405 for an intended purchase for some future date; it must be a completed purchase. Home buyers must attach a copy of their HUD-1 settlement form (closing statement) to Form 5405 as proof of the completed home purchase.
What types of homes will qualify for the tax credit?Any home that will be used as a principal residence will qualify for the credit, provided the home is purchased for a price less than or equal to $800,000. This includes single-family detached homes, attached homes like townhouses and condominiums, manufactured homes (also known as mobile homes) and houseboats. The definition of principal residence is identical to the one used to determine whether you may qualify for the $250,000 / $500,000 capital gain tax exclusion for principal residences.It is important to note that you cannot purchase a home from, among other family members, your ancestors (parents, grandparents, etc.), your lineal descendants (children, grandchildren, etc.) or your spouse or your spouse’s family members. Please consult with your tax advisor for more information. also see IRS form 5405..
I read that the tax credit is “refundable.” What does that mean?The fact that the credit is refundable means that the home buyer credit can be claimed even if the taxpayer has little or no federal income tax liability to offset. Typically this involves the government sending the taxpayer a check for a portion or even all of the amount of the refundable tax credit.For example, if a qualified home buyer expected, notwithstanding the tax credit, federal income tax liability of $5,000 and had tax withholding of $4,000 for the year, then without the tax credit the taxpayer would owe the IRS $1,000 on April 15th. Suppose now that the taxpayer qualified for the $6,500 home buyer tax credit. As a result, the taxpayer would receive a check for $5,500 ($6,500 minus the $1,000 owed).
Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?Yes. For the purposes of the home buyer tax credit, a principal residence that is constructed by the home owner is treated by the tax code as having been “purchased” on the date the owner first occupies the house. In this situation, the date of first occupancy must be after November 6, 2009 and on or before April 30, 2010 (or by June 30, 2010, provided a binding sales contract was in force by April 30, 2010).In contrast, for newly-constructed homes bought from a home builder, eligibility for the tax credit is determined by the settlement date. Be sure to check with a tax advisor in cases where a HUD-1 form is not used at settlement to be sure you have sufficient documentation to attach to IRS form 5405.
Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?Yes. The tax credit can be combined with an MRB home buyer program.
I am not a U.S. citizen. Can I claim the tax credit?Perhaps. Anyone who is not a nonresident alien (as defined by the IRS) and who has owned and resided in a principal residence in the United States for at least five consecutive years of the eight years prior to the purchase date can claim the tax credit if they meet the income limits. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse. The IRS provides a definition of “nonresident alien” in IRS Publication 519.
Is a tax credit the same as a tax deduction?No. A tax credit is a dollar-for-dollar reduction in what the taxpayer owes. That means that a taxpayer who owes $6,500 in income taxes and who receives an $6,500 tax credit would owe nothing to the IRS.A tax deduction is subtracted from the amount of income that is taxed. Using the same example, assume the taxpayer is in the 15 percent tax bracket and owes $6,500 in income taxes. If the taxpayer receives a $6,500 deduction, the taxpayer’s tax liability would be reduced by $975 (15 percent of $6,500), or lowered from $6,500 to $5,525.
Is there a way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 or 2010 tax return?Yes. Prospective home buyers who believe they qualify for the tax credit are permitted to reduce their income tax withholding. Reducing tax withholding (up to the amount of the credit) will enable the buyer to accumulate cash by raising his/her take home pay. This money can then be applied to the downpayment.Buyers should adjust the withholding amount on their W-4 via their employer or through their quarterly estimated tax payment. IRS Publication 919 contains rules and guidelines for income tax withholding. Prospective home buyers should note that if income tax withholding is reduced and the tax credit qualified purchase does not occur, then the individual would be liable for repayment to the IRS of income tax and possible interest charges and penalties.In addition, rule changes made as part of the economic stimulus legislation allow home buyers to claim the tax credit and participate in a program financed by tax-exempt bonds. As a result, some state housing finance agencies have introduced programs that provide short-term second mortgage loans that may be used to fund a downpayment. Prospective home buyers should check with their state housing finance agency to see if such a program is available in their community. To date, 18 state agencies have announced tax credit assistance programs, and more are expected to follow suit.
.
HUD allows “monetization” of the tax credit. What does that mean?It means that HUD will allow buyers using FHA-insured mortgages to apply their anticipated tax credit toward their home purchase immediately rather than waiting until they file their 2009 or 2010 income taxes to receive a refund. These funds may be used for certain downpayment and closing cost expenses.Under the guidelines announced by HUD, non-profits and FHA-approved lenders are allowed to give home buyers short-term loans. The guidelines also allow government agencies, such as state housing finance agencies, to facilitate home sales by providing longer term loans secured by second mortgages.Housing finance agencies and other government entities may also issue tax credit loans, which home buyers may use to satisfy the FHA 3.5 percent downpayment requirement.In addition, approved FHA lenders can purchase a home buyer’s anticipated tax credit to pay closing costs and downpayment costs above the 3.5 percent downpayment that is required for FHA-insured homes.If I’m qualified for the tax credit and buy a home in 2009 (or 2010), can I apply the tax credit against my 2008 (or 2009) tax return?Yes. The law allows taxpayers to choose (“elect”) to treat qualified home purchases in 2009 (or 2010) as if the purchase occurred on December 31, 2008 (or if in 2010, December 31, 2009). This means that the previous year’s income limit (MAGI) applies and the election accelerates when the credit can be claimed. A benefit of this election is that a home buyer in 2009 or 2010 will know their prior year MAGI with certainty, thereby helping the buyer know whether the income limit will reduce their credit amount.Taxpayers buying a home who wish to claim it on their prior year tax return, but who have already submitted their tax return to the IRS, may file an amended return claiming the tax credit using Form 1040X. You should consult with a tax professional to determine how to arrange this.
For a home purchase in 2009 or 2010, can I choose whether to treat the purchase as occurring in the prior or present year, depending on in which year my credit amount is the largest?Yes. If the applicable income phaseout would reduce your home buyer tax credit amount in the present year and a larger credit would be available using the prior year MAGI amounts, then you can choose the year that yields the largest credit amount.
sandyreid.com is providing the information on this blog for general guidance only. The information on this blog does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information on this blog is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose
Friday, November 6, 2009
House of Representatives passed Legislation
Earlier today the House of Representatives passed legislation to extend and expand the $8,000 first-time homebuyer tax credit, which was approved by the Senate this week. The legislation will be sent to the President, and upon his signature, made law. NAMB strongly advocated for an extension and expansion of the homebuyer tax credit, and considers this a victory for consumers, the housing industry, and NAMB.
Under the legislation, homebuyers will qualify for the tax credit until April 30, 2010 (as long as they have entered a binding contract), and have an additional 2 months (until June 30, 2010) to close the transaction. Borrower income limits have also been increased to $125,000 for individuals and $225,000 for couples (up from $75,000 and $150,000 respectively under the current program). The legislation also includes a tax credit not exceeding $6,500 for move up buyers who have owned their current homes for at least 5 years.
sandyreid.com is providing the information on this web site for general guidance only. The information on this blog does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information on this blog is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose
Under the legislation, homebuyers will qualify for the tax credit until April 30, 2010 (as long as they have entered a binding contract), and have an additional 2 months (until June 30, 2010) to close the transaction. Borrower income limits have also been increased to $125,000 for individuals and $225,000 for couples (up from $75,000 and $150,000 respectively under the current program). The legislation also includes a tax credit not exceeding $6,500 for move up buyers who have owned their current homes for at least 5 years.
sandyreid.com is providing the information on this web site for general guidance only. The information on this blog does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information on this blog is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose
EVERYONE EATS OFF OF A HOUSE
When a house sells there are many many people who benefit from the sale of that house. From the Realtor and the bank and the respective attorneys to the electric company, gas company, grocery stores who are now supplying the food to the new homeowner to the insurance company who has written the policy for that home. I could go on and on but I think you understand what I am trying to convey. So this integral piece to the puzzle of our economy must be in place in order for the cycle to move.
I was very glad and relieved to hear that our government has not only extended but has also expanded the tax credit to people who have owned their homes for at least five years as this helps the home owner who has owned a first home to put it up for sale and then buy up to his next house therefore allowing a new home buyer to buy his house and he will move on to buy another home. /This will feed a lot of people.
We are all connected and affected by what we do. If we could just really get that and do the next right things, well could you imagine?
Thursday, November 5, 2009
an improtant reprint from Rismedia
This is an important article for all my buyers and sellers to read. Finally they are listening to me LOL:
Senate Clears Homebuyer Tax Credit Extension; May Pass as Early as This Week
By Steve Cook and Brett Arends
RISMEDIA, November 5, 2009—After two weeks of delay, the Senate cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers. By an 85 to 2 roll call vote, the Senate voted to cut off debate on a package of measures that includes the homebuyer credit, making it virtually certain that the legislation will reach President Obama for his signature this week.
The homebuyer tax credit, due to expire at the end of November would be extended through April 30 of next year. First-time buyers who are in the process of making a purchase would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.
For the first time, the legislation that was recently cleared makes move-up buyers as well as first-time buyers eligible for a credit. The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law. A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years.
For homebuyers across the country, the expanded tax credit would allow more people to qualify for the credit. While two-thirds of American families own their own home, and most earn less than the income limits that have been established within the extension, more buyers may be eligible. Move-up buyers don’t have to sell their current home to qualify for the new credit, but the money cannot be used to buy a vacation home. “It’s only for a primary residence,” said Regan Lachapelle, a spokeswoman for Sen. Harry Redi (D-Nev.), who helped engineer the deal. “In expanding the tax credit, we are helping first-time home buyers, as well as homeowners looking to move up to a new home, but we would exclude from the credit speculators who may have recently purchased a home intending to flip it for a fast profit,” said Senator Max Baucus, Democrat of Montana and chairman of the Finance Committee.
The tax credit has fired-up the housing market, driving existing home sales to the highest level in over two years. The National Association Realtors reported sales jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September and are 9.2% higher than the 5.10 million-unit pace in September 2008.
The legislation included provisions added to address complaints of fraud as well. The Internal Revenue Service is given greater authority to oversee the process to root out fraud, and provisions are added in response to past abuses of false sales or underage buyers. An investigation by the Treasury Department’s Inspector General for Tax Administration found that more than 580 children, some as young as four years old, had received $627,000 in first-time homebuyer credits. The IRS has identified 167 suspected criminal schemes and opened nearly 107,000 examinations of potential civil violations of the first-time homebuyer tax credit.
Senate Clears Homebuyer Tax Credit Extension; May Pass as Early as This Week
By Steve Cook and Brett Arends
RISMEDIA, November 5, 2009—After two weeks of delay, the Senate cleared the way to pass a seven month extension and expansion of the tax credit for homebuyers. By an 85 to 2 roll call vote, the Senate voted to cut off debate on a package of measures that includes the homebuyer credit, making it virtually certain that the legislation will reach President Obama for his signature this week.
The homebuyer tax credit, due to expire at the end of November would be extended through April 30 of next year. First-time buyers who are in the process of making a purchase would not need to worry about qualifying for the $8,000 credit if they close after the November 30 deadline.
For the first time, the legislation that was recently cleared makes move-up buyers as well as first-time buyers eligible for a credit. The $8,000 maximum first-timer credit will continue and will now be available to couples with income up to $225,000, a nearly $55,000 increase above the level in existing law. A new $6,500 maximum credit would also be available to move-up homeowners who have lived in their current residence for five of the prior eight years.
For homebuyers across the country, the expanded tax credit would allow more people to qualify for the credit. While two-thirds of American families own their own home, and most earn less than the income limits that have been established within the extension, more buyers may be eligible. Move-up buyers don’t have to sell their current home to qualify for the new credit, but the money cannot be used to buy a vacation home. “It’s only for a primary residence,” said Regan Lachapelle, a spokeswoman for Sen. Harry Redi (D-Nev.), who helped engineer the deal. “In expanding the tax credit, we are helping first-time home buyers, as well as homeowners looking to move up to a new home, but we would exclude from the credit speculators who may have recently purchased a home intending to flip it for a fast profit,” said Senator Max Baucus, Democrat of Montana and chairman of the Finance Committee.
The tax credit has fired-up the housing market, driving existing home sales to the highest level in over two years. The National Association Realtors reported sales jumped 9.4% to a seasonally adjusted annual rate of 5.57 million units in September and are 9.2% higher than the 5.10 million-unit pace in September 2008.
The legislation included provisions added to address complaints of fraud as well. The Internal Revenue Service is given greater authority to oversee the process to root out fraud, and provisions are added in response to past abuses of false sales or underage buyers. An investigation by the Treasury Department’s Inspector General for Tax Administration found that more than 580 children, some as young as four years old, had received $627,000 in first-time homebuyer credits. The IRS has identified 167 suspected criminal schemes and opened nearly 107,000 examinations of potential civil violations of the first-time homebuyer tax credit.
Tuesday, September 29, 2009
THIS IS MORE REALISTIC
More Rough Times Ahead for U.S. Economy, despite Recent Improvements
RISMEDIA, September 29, 2009—Despite recent signs of improvement, more rough times are ahead for the U.S. economy, according to several prominent experts in real estate and the economy who attended a recent forum at the Nixon Presidential Library.
“You look at the numbers and everything points to the fact that we not only have bottomed, but things seem to be improving,” said Christopher Thornberg of Beacon Economics, citing increases in durable goods orders, exports and auto sales. He added, “When you think about the problems we’ve been through and what government has done, in many ways, they have, in fact, stabilized the economy. But you know what? They haven’t actually solved the underlying problems in the economy.” Thornberg cited real estate as a case in point. While home sales are up in some areas of the country, 6 to 7% of home mortgages nationally are 60 to 90 days delinquent. In California alone, 250,000 mortgages are 60 to 90 days late. And there’s more economic trouble on the horizon, he said, with rising unemployment and additional waves of foreclosures. “The second half of 2010 will be very weak,” he said, adding, “2011 will be very grim.”
Thornberg was one of several nationally known experts in real estate and the economy who shared their perspectives during a Sept. 11 forum and charity event for the Orange County affiliate of Susan G. Komen for the Cure, one of the world’s largest grassroots organizations dedicated to finding a cure for breast cancer.
Real estate analyst and investor Bruce Norris of The Norris Group in Riverside organized and moderated the event, which included experts from the California Building Industry Association, the National Association of Realtors, the Mortgage Bankers Association, RealtyTrac, The Appraisal Institute and the National Auctioneers Association.
While all of the panelists agreed that the economy will rebound in another two or three years, several pointed to tough economic conditions in the interim. John Young, vice president of the California Building Industry Association, said new housing starts are at their lowest levels since the early 1950s. He added that new home sales are often stymied by appraisals coming in lower than contracted home sale amounts. Meanwhile, foreclosures continue to mount. Rick Sharga, senior vice president of RealtyTrac, one of the leading online marketplaces for foreclosure properties, said the nation has had 43 consecutive months of foreclosures. “We’re dealing with foreclosure activity that is six times what it would be in a normal market,” he said. Sharga added that legal and legislative efforts aimed at helping consumers modify the terms of their loans “merely delay the inevitable.” After all, he said, modified loan terms are not going to help someone who loses their job. Sharga also sees another big wave of foreclosures hitting the market next year, which will reflect rising unemployment rates, which are expected to peak during the first quarter, as well as the resetting of adjustable rate mortgages to higher rates. The real estate market is also negatively affected by a “shadow inventory” of perhaps 400,000 to 500,000 homes, which have been taken back by banks, but haven’t been put back on the market for resale, Sharga said.
Home sales are also being frustrated by appraisals that underestimate true market value of properties being sold, said Joseph Magdziarz, vice president of The Appraisal Institute, the Chicago-based trade association that promotes the highest standards of professionalism and ethics in the appraisal business. Many problematic appraisals are coming from appraisal management companies that use unqualified appraisers who lack geographic competency in the markets where they are accepting assignments. Banks, for their part, won’t lend money on appraisals they can’t trust, Sharga said.
Despite these negative assessments, the panelists said there are many things that Congress, consumers and the real estate industry can do to facilitate our nation’s economic recovery. Magdziarz, for his part, said The Appraisal Institute has been trying to warn Congress for years to take action to better regulate the appraisal business. One pending bill, HR 1728, includes many of the Appraisal Institute’s recommendations, has passed the House and is currently in a Senate committee with bipartisan support. The Appraisal Institute has also alerted its 26,000 members that it will take aggressive enforcement action against any members who accept assignments they are not qualified for. “We cannot sit back and allow bad appraisals to prevent deals from going forward,” Magdziarz said, adding that investors should work only with appraisers that belong to professional appraisal associations. He also encouraged consumers and investors to report incidents of substandard or incomplete appraisal work to state authorities as well as to The Appraisal Institute. While Congress considers HR 1728 to improve appraisal industry, another pending bill, Senate Bill 1230, would nearly double home purchase tax credit to $15,000.
For his part, David Kittle, chairman of the Mortgage Bankers Association, said it is up to consumers, investors and the mortgage industry itself to weed out bad apples and not to count on Congress to solve the problem. “The people in Congress making laws don’t understand our business,” he said, adding, “When somebody’s doing something wrong, call them out and get them out of our business.” Pat Vredevoogd Combs, 2007 president of the National Association of Realtors, also recommended that Congress make tax credits available to all homebuyers and not just first-timers. Tommy Williams, 2008 president of the National Auctioneers Association, said professional auctioneers could also help market recovery by selling real estate at real market values. He added that auction participants already have their financing in place before they bid on properties.
Norris, for his part, recommended that Congress do several things to boost the real estate market. These include:
Increase the number of loans made available to well capitalized investors: Expand Fannie and Freddie loan programs from a maximum of 10 loans per investor to an unlimited number of loans for qualified investors.
Make the 203K FHA loan program available to investors: A 203K loan allows a property needing work to be purchased “as is,” but included in the loan amount is money for repairs. The loan funds both the purchase and rehab of the property. Investors need this loan now, but this loan is currently only available to owner occupants. FHA previously made this loan available to investors, but stopped the practice in 1996 when HUD ran out of lender owned, fixer uppers. Banks could solve the vacant house problem by giving investors back the 203K loan program.
Eliminate the 90-day waiting period before a repaired property can be sold to a buyer using an FHA loan: Investors who purchase fixer uppers can often completely repair the property in a matter of weeks. But the current law prohibits investors from reselling the property within 90 days. The assumption is that fraud must be taking place if a property is resold within 90 days. It’s ridiculous to assume that every investor who purchases a property, improves and resells it is committing fraud. All this policy does is increase investors’ costs of purchasing and rehabbing vacant homes.
Allow loans to be taken over by credit-qualified new buyers with no down payment. Through this process, which was successfully used in the 1980s, new buyers simply step in and take over the loan payments. The only stipulation is that the loan has to be made current at the close of escrow. The U.S. currently has about one million owners who will not be capable of keeping their homes without a huge discount on the principle balance. Many of these properties have fixed rates at very favorable rates. Allowing willing and capable buyers to come in and take over these loans would help contain the spread of foreclosures across the country.
Thornberg, for his part, said it’s not realistic to assume that our nation’s economic problems will be solved by increased regulation or by presidential action. The economy simply needs some time to heal itself, he said. But despite the near term trouble, Thornberg remains optimistic about the future. “I have tremendous faith in the U.S. economy rebounding again in the future,” he said. “And when we come out of this in two or three years, we’re going to have cheap housing and a weak dollar, which will be good for exports.”
THIS HAS BEEN REPOSTED FROM RISMEDIA.
When a home is sold so many people "eat" off that sale. Not just the real estate people that have sold that home or the appraiser or the bank but the electric company and the employee of that electric company that turns on that electric and the gas company and the cable company and all the other people that is some way service that home and the people in it. That person or couple or family now "living" in that neighborhood "feed" the neighborhood people who service them. We are all interconnected and interdependent more than we have realized.
The bundling and selling of real estate with all its greedy insurance and other dastardly schemes started this mess and I believe real estate is going to get us out of this mess IF we do the right thing. Helping a clogged system has to be a systemic remedy. Just having credit for a short term for a select few is not systemic. That first timer home buyer helps the guy who was a first time home buyer move on to the next home A home that was bought to be fixed up and offered to a home shopper should be available.People that are in homes and are hurting becuase of the extreme high rates their mortgges have gotten to with some adjustments to the rate can stay in that home snd continue to "feed" the neighborhood.
We need to petition our senators/representatives, our president to really jump in there and work on the whole system. A laxative for constipation does not find out or fix what is wrong with the "system".
Thursday, April 16, 2009
TO BUY OR NOT TO BUY ---THAT IS THE QUESTION
This is the age old question for someone thinking about buying real estate. It's funny that several years ago when the feeding frenzy on real estate was with us and the prices were rising and rising you couldn't stop someone from buying real estate, fighting in bidding wars and now with prices down, rates at historical lows and a great $8,000 tax credit being given, people are sitting on the fence wondering what to do. As Donald Trump said on the TV the other night, this is the BEST time to buy real estate. I would suggest reading articles from Realty Times and other informative sources. Google real estate news and get the consensus from people doing stats on new loan applications etc. so you can compare what happened last month with this month. Our company just ran stats on what is selling in our area and it appears that the higher priced homes are not selling as well as homes in the 175-275 price range. That tells me if I am a purchaser looking to buy in that higher price range I might be able to find a really good buy.Hello, is anyone out there.
Thursday, April 2, 2009
SOMETHING TO CONSIDER
The housing market is looking healthier. Here are six reasons why now is the time to jump into the market.1. Uncle Sam is willing to help. First-time buyers (defined as anyone who hasn’t owned a home in the last three years) are entitled to a maximum $8,000 tax credit; interest rates are at record lows; and the Federal Reserve is doing its best to make mortgage loans available. 2. People have to live somewhere. About 800,000 new households are formed each year in this country, ensuring that the housing market will tighten, even if the economy doesn’t soar.3. Borrowers leverage their investment. If you put $10,000 into the stock market and it earns 10 percent, you’ve earned $1,000. If you put $10,000 down on a home and its values increases 10 percent, you’ve made $10,000.4. When prices come back up, you’ll have instant equity. In parts of the country where foreclosures have driven down prices, better times will mean the price of the home you buy will rise rapidly.5. Mortgage costs stay the same. If you get a fixed-rate mortgage, the monthly payment stays the same – while everything else, including rent, goes upward.6. You own it. There is something comforting in the notion that your home is your own. You can paint it any color you want, let the dog run in the back yard and hang a swing for the kids in the front.Source: The Wall Street Journal, June Fletcher (03/27/2009)
Friday, March 27, 2009
finally someone talking about a four percent mortgage rate
http://www.foxbusiness.com/video-search/m/21829995/4-5-mortgages-a-possibility.htm
We need to get everyone included in this. Refinancing, new homes, homes in trouble. If we want to get a real stimulus going we need to do just what they are talking about in this video.
We, as Realtors, need to talk about this to everyone we can talk to. The gentleman in this video , a banker is talking about how the banks are at capacity in the filings of refinancing. Sooooo maybe you will need to hire some more people to fill the need to respond to all these refinancings and new home purchases with a mortgage rate of 4%. Imagine giving jobs to people to help people move money. What a concept.
What do you think?
We need to get everyone included in this. Refinancing, new homes, homes in trouble. If we want to get a real stimulus going we need to do just what they are talking about in this video.
We, as Realtors, need to talk about this to everyone we can talk to. The gentleman in this video , a banker is talking about how the banks are at capacity in the filings of refinancing. Sooooo maybe you will need to hire some more people to fill the need to respond to all these refinancings and new home purchases with a mortgage rate of 4%. Imagine giving jobs to people to help people move money. What a concept.
What do you think?
Wednesday, March 25, 2009
CAN WE REALLY BELIEVE WHAT WE READ????
I copied an article the other day which I thought was not only interesting but positive for home sales. today I read this article and I can only ask____
JUST WHO CAN WE BELIEVE WHEN IT COMES TO STATISTICS?
The existing home sales data which was released to the market earlier was a "half empty, half full" set of data. The market seemed to take it as just full and left the empty part behind.
Home resale rates rose 5.1% in February to an annual rate of 4.72 million, according to the National Association of Realtors. In the same breath, the organization said 45% of the activity was foreclosures or short sales. Because of the huge discount that most buyers get when they buy homes in foreclosure, the average price of a house fell 15.5% to $165,400.
The increase in the rate of home sales was viewed by many as the beginning of a bottom in the housing market. The slide of nearly three years has been blamed for a great deal of the collapse in the banking and credit systems.But the rise in sales does not represent a bottom at all. It is more likely that any movement of buyers into the market will cause desperate sellers to offer homes at lower and lower prices rather than hold onto houses that they cannot afford and may not make money on even if they could hold them for another decade.
Most data that the government and national business associations will put out over the next several quarters is likely to appear two-edged, at least at first. Housing prices cannot go to zero, so, at some point, the rate at which home values are dropping will slow. Resale rates may go up, but buying homes which have been in foreclosure for months is an incorporeal piece of information. If buyers start to purchase homes on the normal economic basis of being a transaction between private buyer and private seller then the market will have something to celebrate.
The rise in the dual nature of data is where the analyst's ability to forecast gets more difficult. When unemployment, consumer confidence, GDP, manufacturing, and capital expenditures are all falling simultaneously, it is hard to find optimists, but they will grab even the slightest bit of ambiguous information and claim that the recovery is underway.
In the next quarter, the rate at which people are losing their jobs may slow, but average wages will probably drop sharply at the same time. The effect of fewer people losing jobs while those who are working make less is no clear sign that the economic world is getting better. GDP numbers which are significantly influenced by dangerous trends in inventories like the Q4 2008 figure defy clear interpretation.
Recently analysts covering the manufacturing sector said that so many factories are shut here and overseas that the businesses are eating through inventories. That is being interpreted as good news because once inventories move close to zero, factories will have to increase production to replace them. That analysis glosses over two possibilities. The first is that the economy is bad enough that inventories may not drop at expected rates. Low demand may cause them to decrease much more slowly. That could push back a renewal of manufacturing activity for months. It is also possible that some factories will simply be out of business and the sources of goods for replacing dwindling inventories will have gone away. The normal supply chain in some industries may be severely disrupted in a way that will take several quarters to repair. Retooling or replacing factories is unlikely to be a quick process.
From the middle of last year until a month or so ago, the interpretation of almost all economic information was negative because the data was unidirectional. That is changing. There are sign posts which point in two directions. It is likely that neither road sign is entirely right. In many cases both are wrong and making predictions about how the recession is going actually becomes more difficult and not less.
JUST WHO CAN WE BELIEVE WHEN IT COMES TO STATISTICS?
The existing home sales data which was released to the market earlier was a "half empty, half full" set of data. The market seemed to take it as just full and left the empty part behind.
Home resale rates rose 5.1% in February to an annual rate of 4.72 million, according to the National Association of Realtors. In the same breath, the organization said 45% of the activity was foreclosures or short sales. Because of the huge discount that most buyers get when they buy homes in foreclosure, the average price of a house fell 15.5% to $165,400.
The increase in the rate of home sales was viewed by many as the beginning of a bottom in the housing market. The slide of nearly three years has been blamed for a great deal of the collapse in the banking and credit systems.But the rise in sales does not represent a bottom at all. It is more likely that any movement of buyers into the market will cause desperate sellers to offer homes at lower and lower prices rather than hold onto houses that they cannot afford and may not make money on even if they could hold them for another decade.
Most data that the government and national business associations will put out over the next several quarters is likely to appear two-edged, at least at first. Housing prices cannot go to zero, so, at some point, the rate at which home values are dropping will slow. Resale rates may go up, but buying homes which have been in foreclosure for months is an incorporeal piece of information. If buyers start to purchase homes on the normal economic basis of being a transaction between private buyer and private seller then the market will have something to celebrate.
The rise in the dual nature of data is where the analyst's ability to forecast gets more difficult. When unemployment, consumer confidence, GDP, manufacturing, and capital expenditures are all falling simultaneously, it is hard to find optimists, but they will grab even the slightest bit of ambiguous information and claim that the recovery is underway.
In the next quarter, the rate at which people are losing their jobs may slow, but average wages will probably drop sharply at the same time. The effect of fewer people losing jobs while those who are working make less is no clear sign that the economic world is getting better. GDP numbers which are significantly influenced by dangerous trends in inventories like the Q4 2008 figure defy clear interpretation.
Recently analysts covering the manufacturing sector said that so many factories are shut here and overseas that the businesses are eating through inventories. That is being interpreted as good news because once inventories move close to zero, factories will have to increase production to replace them. That analysis glosses over two possibilities. The first is that the economy is bad enough that inventories may not drop at expected rates. Low demand may cause them to decrease much more slowly. That could push back a renewal of manufacturing activity for months. It is also possible that some factories will simply be out of business and the sources of goods for replacing dwindling inventories will have gone away. The normal supply chain in some industries may be severely disrupted in a way that will take several quarters to repair. Retooling or replacing factories is unlikely to be a quick process.
From the middle of last year until a month or so ago, the interpretation of almost all economic information was negative because the data was unidirectional. That is changing. There are sign posts which point in two directions. It is likely that neither road sign is entirely right. In many cases both are wrong and making predictions about how the recession is going actually becomes more difficult and not less.
LOOKING FOR HOME FOR CLIENT
I'm looking for a home in the New Paltz Gardiner area with New Paltz schools. My clients require about 2200 square feet in a unique home with character. My clients do not require a great deal of land but would like it picturesque and private. The price is in the mid fours. If you have a home you are thinking of selling that is not on the multiple listing service, please contact me at 845-417-1314. We have not found a home suitable from the multiple listing service.
Thanks,
Sandy Reid ABR,CRS WESTWOOD METES & BOUNDS REAL ESTATE
licensed real estate salesperson
134 Main St.
New Paltz NY 12561
Thanks,
Sandy Reid ABR,CRS WESTWOOD METES & BOUNDS REAL ESTATE
licensed real estate salesperson
134 Main St.
New Paltz NY 12561
Tuesday, March 24, 2009
EXISTING HOMES SOLD RISE 15.6%% IN NORTHEAST IN FEBRUARY
AS PER KEN SWEET AT FOX NEWS MONDAY MARCH 23, 2009
The number of existing homes sold in February unexpectedly rose last month, an industry trade organization said Monday, as distressed home sales continued to remain the dominant force in the nation’s impaired housing market.
According to the National Association of Realtors, the number of homes sold rose 5.1% to a seasonally-adjusted rate of 4.72 million units in February up from 4.49 million annualized units.
The jump in sales was much better than what economists had predicted, who were expecting existing home sales to fall to 4.45 million units. The data helped boost stocks broadly, pushing the Dow Jones Industrial Average up nearly 300 points.
While the increased sale of homes is a welcome sign to Wall Street -- as many believe that the housing will eventually lead the nation’s economy out of this recession -- the bulk of February’s sales were distressed purchases. The average price for a home sold was $165,400, down 15.5% from a year ago.
“Because entry level buyers are shopping for bargains, distressed sales accounted for 40% to 45% of the transactions in February,” said NAR’s chief economist Lawrence Yun in a statement.
As it has been for the past couple months, existing home sales were stronger in the West than the rest of the nation -- primarily in the struggling housing market of California. Existing home sales in the region were up 2.6% from a month ago to 1.2 million annualized units, and are up 30.4% from a year ago.
In the Northeast, sales rose 15.6% to an annualized rate of 740,000 units and are down 14.9% from a year ago. In the Midwest, sales were basically flat -- up 1% -- to 1.04 million units.
In the struggling Southern market, existing home sales rose 6.1% to an annualized rate of 1.74 million units, according to the trade organization.
It is always hard to predict when a bottom is happening. I read active rain comments by Realtors in California and they feel their market is bottoming. We usually follow California so if you are thinking of buying a home or second home this might be the time to look with rates at 4.6% and in some places even lower.
Most people see the bottom AFTER it happens.
Call me at 845- 417-1314
The number of existing homes sold in February unexpectedly rose last month, an industry trade organization said Monday, as distressed home sales continued to remain the dominant force in the nation’s impaired housing market.
According to the National Association of Realtors, the number of homes sold rose 5.1% to a seasonally-adjusted rate of 4.72 million units in February up from 4.49 million annualized units.
The jump in sales was much better than what economists had predicted, who were expecting existing home sales to fall to 4.45 million units. The data helped boost stocks broadly, pushing the Dow Jones Industrial Average up nearly 300 points.
While the increased sale of homes is a welcome sign to Wall Street -- as many believe that the housing will eventually lead the nation’s economy out of this recession -- the bulk of February’s sales were distressed purchases. The average price for a home sold was $165,400, down 15.5% from a year ago.
“Because entry level buyers are shopping for bargains, distressed sales accounted for 40% to 45% of the transactions in February,” said NAR’s chief economist Lawrence Yun in a statement.
As it has been for the past couple months, existing home sales were stronger in the West than the rest of the nation -- primarily in the struggling housing market of California. Existing home sales in the region were up 2.6% from a month ago to 1.2 million annualized units, and are up 30.4% from a year ago.
In the Northeast, sales rose 15.6% to an annualized rate of 740,000 units and are down 14.9% from a year ago. In the Midwest, sales were basically flat -- up 1% -- to 1.04 million units.
In the struggling Southern market, existing home sales rose 6.1% to an annualized rate of 1.74 million units, according to the trade organization.
It is always hard to predict when a bottom is happening. I read active rain comments by Realtors in California and they feel their market is bottoming. We usually follow California so if you are thinking of buying a home or second home this might be the time to look with rates at 4.6% and in some places even lower.
Most people see the bottom AFTER it happens.
Call me at 845- 417-1314
Sunday, March 22, 2009
The sure sign of spring!
I know Spring officially is here on March 20th. Other than the date I am so happy to be seeing true signs of spring. Our office calls have picked up and walk ins, those wonderful walk ins are back. People look for Robins, I look for walk ins.
This has been an especially hard winter. Not just the snow and cold and ice and sleet. The economy has created a river none of us have walked into before. But I have hope, thanks to the walk ins. I would like to take some time to thank them and to tell them just what they do for this real estate person.
Like the first crocus who push their cute faces out to the sun early walk ins are the adventurers of real estate. You know they have been thinking and planning this and they are as excited as I am for the adventure. They are ready with information, maps and a beautiful pre approval. They have driven up, or driven over, tested the local B&B's, motels or campsites, have enjoyed an early breakfast and are "ready for the hunt".
I am ready as well. I know my inventory. I have all the resouces to help my new clients to have a positive real estate experience and I am excited as I have gotten what the walk in and the Realtor wait for---
THE HOPE OF A NEW LISTING!!!!! A home that will match someone. A place that when you bring your new client/custiomer there you know it fits as they run their hand along the mantle of the fireplace or stand on the deck looking happily out at the landscape. There are not too many great feelings like the feeling of success when you have been the matchmaker of a person or persons to a home.
Walk ins, call ins, web site newbies, I love them all. Welcome. You're right on time.
This has been an especially hard winter. Not just the snow and cold and ice and sleet. The economy has created a river none of us have walked into before. But I have hope, thanks to the walk ins. I would like to take some time to thank them and to tell them just what they do for this real estate person.
Like the first crocus who push their cute faces out to the sun early walk ins are the adventurers of real estate. You know they have been thinking and planning this and they are as excited as I am for the adventure. They are ready with information, maps and a beautiful pre approval. They have driven up, or driven over, tested the local B&B's, motels or campsites, have enjoyed an early breakfast and are "ready for the hunt".
I am ready as well. I know my inventory. I have all the resouces to help my new clients to have a positive real estate experience and I am excited as I have gotten what the walk in and the Realtor wait for---
THE HOPE OF A NEW LISTING!!!!! A home that will match someone. A place that when you bring your new client/custiomer there you know it fits as they run their hand along the mantle of the fireplace or stand on the deck looking happily out at the landscape. There are not too many great feelings like the feeling of success when you have been the matchmaker of a person or persons to a home.
Walk ins, call ins, web site newbies, I love them all. Welcome. You're right on time.
Thursday, March 12, 2009
OUR ROLE AS STEWARDS FOR THE HOMES WE SELL
I had the privilege of being asked to come to do a listing presentation for a beautiful 1820 Le Fevre Farmhouse. Now I consider it a privilege whenever anyone trusts me with one of the biggest and most expensive and most personal things they own. I especially appreciate it when it has a long history to it. The wife and husband and I talked about all the aspects of putting their home on the market, we went over my CMA and what they could do to ready the home. I asked them if I was in competition with many other brokers and this is what made my day. They said they had one other real estate person over who they knew quite well and they they did not demonstrate an interest in their house like I did. THIS IS WHAT I BELIEVE IS THE MOST IMPORTANT LESSON IN SELLING SOMEONES HOME. This precious commodity is someones life, their blood sweat and tears, the place all their family events happened. This home represents a lot of the time, all the money they have, their biggest investment. We are entrusted, as stewards to convey this property to another person/persons and that is a responsibility not to be taken lightly.
Each home has its story. How the home owner found it. How they saved the money to buy it. I knew one homeowner who wanted to finish his basement. He was going to the racetrack for the first time and his wife told him to bet on a combo with horse number one. He was so flustered at the track that he bet on the wrong horse without knowing. The horse he thought he bet on ran dead last with the two other horses he had coming in the right order of second and third. His friend asked him who he bet on and looked at his ticket and lo and behold he had the right combo with the wrong horse bet to win enough money in that triple to well afford to finish his basement. Each home and each homeowner has their story to tell of their home.
The 1800 farmhouse has a long history to convey. I will make it my business, as the steward for this home to convey all of the history and documents that these owners have entrusted me to convey. I will do all the things necessary to market this home appropriately to effect a sale. Someone will come along who falls in love with this home and its history. I get paid for doing this. Who's got it better than me?
Each home has its story. How the home owner found it. How they saved the money to buy it. I knew one homeowner who wanted to finish his basement. He was going to the racetrack for the first time and his wife told him to bet on a combo with horse number one. He was so flustered at the track that he bet on the wrong horse without knowing. The horse he thought he bet on ran dead last with the two other horses he had coming in the right order of second and third. His friend asked him who he bet on and looked at his ticket and lo and behold he had the right combo with the wrong horse bet to win enough money in that triple to well afford to finish his basement. Each home and each homeowner has their story to tell of their home.
The 1800 farmhouse has a long history to convey. I will make it my business, as the steward for this home to convey all of the history and documents that these owners have entrusted me to convey. I will do all the things necessary to market this home appropriately to effect a sale. Someone will come along who falls in love with this home and its history. I get paid for doing this. Who's got it better than me?
Thursday, March 5, 2009
CLIENTS IN NEED OF A RENT WITH OPTION TO BUY
I am a very lucky woman. I get the greatest clients. We enjoy shopping together, find great homes and follow through from binder to closing withn nary a scratch LOL. Every once in a while a client needs some special assistance-----
My clients are young and full of energy. They have undertaken a business and the business is doing well, even in this economy. They are looking for a 3-4 bedroom home in the Stone Ridge/Accord area to rent with the option to buy. If you have a home that might be available please email me at sandy@westwoodrealty.com or call me directly at 845-255-9400, ext. 113.
My clients are young and full of energy. They have undertaken a business and the business is doing well, even in this economy. They are looking for a 3-4 bedroom home in the Stone Ridge/Accord area to rent with the option to buy. If you have a home that might be available please email me at sandy@westwoodrealty.com or call me directly at 845-255-9400, ext. 113.
Monday, March 2, 2009
THIS IS WHAT I MOVED UP FROM THE CITY FOR
I am a transplant from New York City. I loved growing up in the city. I never really noticed how fast paced everything was and was quite used to it. I loved the excitement, the way the city never really slept as you could always find something open and still jumping at 3am. But there was a part of me that kept nurturing a memory I had as a young girl when my parents took us on a trip to the Pennsylvania Dutch country. We stayed at what was called a "Guest House", which was someones home that had two bedrooms set aside for travelers. I can remember it like it was yesterday(more yesterdays than I will admit to). The house smelled like a lot of good cooking. There were comfortable couches, pretty antiques, and the old spring bed with a feather mattress was a touch of heaven. The woman who owned the house and was our host was friendly and made us feel very much at home. After a wonderful nights sleep I awoke to the best breakfast I have ever enjoyed. Everything was home made down to the butter. I remember thinking the whole time I was there, "this is what I want to do".
I finally got that chance in 1984. I moved from New York City and opened a Bed & Breakfast and antique shop in Andes New York. Not many people get to live their dream and I am very grateful to have had that experience. I loved being able to be home for my children and be able to work right there as well. Everyone will think of pros and cons to working at home but for me at the time it was great.
So now I have gotten a listing which will enable someone to do the same thing. The featured listing is a five bedroom Victorian in the village of Accord. The wonderful home has a building right next to it which houses the owners antique store. The first time I went to see it wonderful memories of my shop and home came back to me.
This is a home that needs some renovating. The thing I liked about renovating the building I bought is that I could put my own footprint there. This home and business is very similar. The shop is detached from the home and has its own electric and heat. There is an antique shop across the street that is run by a friend of mine and one out on route 209 that is also run by another friend of mine. There is a pottery studio across the street as well. I can see this home and shop and the other shops becoming a destination for shopping for unique and wonderful fare.
The virtual tour will be done shortly but do not wait. If you have a dream, come see our listing, see if it fits. I can tell you it is worth the trip.
I finally got that chance in 1984. I moved from New York City and opened a Bed & Breakfast and antique shop in Andes New York. Not many people get to live their dream and I am very grateful to have had that experience. I loved being able to be home for my children and be able to work right there as well. Everyone will think of pros and cons to working at home but for me at the time it was great.
So now I have gotten a listing which will enable someone to do the same thing. The featured listing is a five bedroom Victorian in the village of Accord. The wonderful home has a building right next to it which houses the owners antique store. The first time I went to see it wonderful memories of my shop and home came back to me.
This is a home that needs some renovating. The thing I liked about renovating the building I bought is that I could put my own footprint there. This home and business is very similar. The shop is detached from the home and has its own electric and heat. There is an antique shop across the street that is run by a friend of mine and one out on route 209 that is also run by another friend of mine. There is a pottery studio across the street as well. I can see this home and shop and the other shops becoming a destination for shopping for unique and wonderful fare.
The virtual tour will be done shortly but do not wait. If you have a dream, come see our listing, see if it fits. I can tell you it is worth the trip.
Sunday, March 1, 2009
Is that the sweet smell of Spring????
Saturday was an insane day for me. It was my daughter's birthday and I had promised her we would spend time together and of course as soon as I said that everything broke loose. So, trying to find enough time in the day for clients and family, which is always a hard balancing act in this business, I ran and did and showed and ran and----wait, what is that smell in the air? Smells familiar. Some good thoughts from long ago permeate my brain. Could it---- is it---- Is that the sweet smell of Spring?????? And just as fast it was gone. But it was undeniable. It was Spring. How exciting. It has been a long winter. I really look forward to Spring and warmer weather. And that smell was wonderful. Dirt...fresh unfrozen dirt with flowers ready to pop out and trees ready to bloom and fishing season just around the corner. Yiiippeee! Hang in there girl! it's just around the corner.
Wednesday, February 25, 2009
GREAT CIVILIZATIONS HAVE FALLEN. WHAT MAKES US THINK WE WON'T
GREED! SELF CENTERED BEHAVIOR! SELF SERVING!
Both sides are calling their kettles black. Want to know what I want to see. Less talk and more action.
I don't want to hear a Republican talking about a democrat and vice versa. I want them to both take a voluntary pay cut and stop their living high off the hog. I want the people who took the equity out of their homes and ran down to Florida in the hey day and sold a contract on a condo that wasn't even built for double the money and then took that money and tried to parlay it into some scheme that would return 15% to stop crying and learn to live within their means.
These are just examples of what I am sick and tired of hearing. When everything was jumping and all arrows where going up a number of people made a lot of money and a lot of them turned a deaf ear to the signs and symptoms. Well whoever and whatever. We can take forever arguing just who did what or we can CHANGE things little by slowly and it all starts at home. Instead of taking everyones inventory, take your own. How can I change and what can I do differently.
I firmly believe, as a society, if we do not change, we will go some way some how. Get with the program. What was the lesson in the experience???????
This is not written to give you an answer. I search every day to find my own. I write about the quality of life in the Hudson Valley. I feel if we, as a people do not do some major changing, there will not be much more quality anything. I am writing this in the hope that we all think, think, think.
I have a favorite story that I just recently saw, for the first time passed in email. I think it is very appropriate for todays times I would like to share it with you.
HEAVEN AND HELL
A holy man was having a conversation with the Lord one day and said, "Lord, I would like to know what Heaven and Hell are like." The Lord led the holy man to two doors. He opened one of the doors and the holy man looked in. In the middle of the room was a large round table. In the middle of the table was a large pot of stew which smelled delicious and made the holy man's mouth water. The people sitting around the table were thin and sickly. They appeared to be famished. They were holding spoons with very long handles that were strapped to their arms and each found it possible to reach into the pot of stew and take a spoonful, but because the handle was longer than their arms, they could not get the spoons back into their mouths. The holy man shuddered at the sight of their misery and suffering. The Lord said, "You have seen Hell".
They went to the next room and opened the door. It was exactly the same as the first one. There was the large round table with the large pot of stew which made the holy man's mouth water. The people were equipped with the same long-handled spoons, but here the people were well nourished and plump, laughing and talking. The holy man said, "I don't understand." "It is simple," said the Lord, "it requires but one skill. You see, they have learned to feed each other, while the greedy think only of themselves."
GROW OR GO
WHAT'S IT GONNA BE?
Both sides are calling their kettles black. Want to know what I want to see. Less talk and more action.
I don't want to hear a Republican talking about a democrat and vice versa. I want them to both take a voluntary pay cut and stop their living high off the hog. I want the people who took the equity out of their homes and ran down to Florida in the hey day and sold a contract on a condo that wasn't even built for double the money and then took that money and tried to parlay it into some scheme that would return 15% to stop crying and learn to live within their means.
These are just examples of what I am sick and tired of hearing. When everything was jumping and all arrows where going up a number of people made a lot of money and a lot of them turned a deaf ear to the signs and symptoms. Well whoever and whatever. We can take forever arguing just who did what or we can CHANGE things little by slowly and it all starts at home. Instead of taking everyones inventory, take your own. How can I change and what can I do differently.
I firmly believe, as a society, if we do not change, we will go some way some how. Get with the program. What was the lesson in the experience???????
This is not written to give you an answer. I search every day to find my own. I write about the quality of life in the Hudson Valley. I feel if we, as a people do not do some major changing, there will not be much more quality anything. I am writing this in the hope that we all think, think, think.
I have a favorite story that I just recently saw, for the first time passed in email. I think it is very appropriate for todays times I would like to share it with you.
HEAVEN AND HELL
A holy man was having a conversation with the Lord one day and said, "Lord, I would like to know what Heaven and Hell are like." The Lord led the holy man to two doors. He opened one of the doors and the holy man looked in. In the middle of the room was a large round table. In the middle of the table was a large pot of stew which smelled delicious and made the holy man's mouth water. The people sitting around the table were thin and sickly. They appeared to be famished. They were holding spoons with very long handles that were strapped to their arms and each found it possible to reach into the pot of stew and take a spoonful, but because the handle was longer than their arms, they could not get the spoons back into their mouths. The holy man shuddered at the sight of their misery and suffering. The Lord said, "You have seen Hell".
They went to the next room and opened the door. It was exactly the same as the first one. There was the large round table with the large pot of stew which made the holy man's mouth water. The people were equipped with the same long-handled spoons, but here the people were well nourished and plump, laughing and talking. The holy man said, "I don't understand." "It is simple," said the Lord, "it requires but one skill. You see, they have learned to feed each other, while the greedy think only of themselves."
GROW OR GO
WHAT'S IT GONNA BE?
Monday, January 5, 2009
THIS MIGHT BE THE RIGHT TIME TO LIST YOUR HOME
I was busy and happy this first weekend of 2009.. After showing only a couple of homes in the New Paltz area, I met and spoke with some fellow agents and we all agreed that there is very little inventory on the market right now, especially in the New Paltz area.. As I walked away from our gathering I realized that it appears that NOW is the time to put a house on the market IF:
1- It is priced appropriately.
2- It is priced appropriately
3- It is priced appropriately.
This is the most important item in relation to selling a home. Other things are relative such as staging and condition but this is paramount. Especially now.
Rates have come down somewhat and this is beneficial for both seller and buyer.
So, if you are thinking of selling your home and it is in Ulster County, I would be happy to come to your home and do a market analysis and tell you about the company I work for, Westwood Metes & Bounds. It has been the number 1 selling real estate agency in Ulster County for 13 years based on multiple listing services residential sold statistics.
Wishing you all the very best of this new year.
1- It is priced appropriately.
2- It is priced appropriately
3- It is priced appropriately.
This is the most important item in relation to selling a home. Other things are relative such as staging and condition but this is paramount. Especially now.
Rates have come down somewhat and this is beneficial for both seller and buyer.
So, if you are thinking of selling your home and it is in Ulster County, I would be happy to come to your home and do a market analysis and tell you about the company I work for, Westwood Metes & Bounds. It has been the number 1 selling real estate agency in Ulster County for 13 years based on multiple listing services residential sold statistics.
Wishing you all the very best of this new year.
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