Summary of Real Estate Changes You Should Know About

1. The Tax Credit
Tax credits are special provisions that reduce income tax liability on a dollar for dollar basis. Credits are claimed on an individual's income tax return. In this case, Congress has created a tax credit for first time homebuyers. The maximum credit amount is $7,500. Si if you normally, do not get a refund, you will get an approx $7500 refund! THIS IS AN INCENTIVE AND PART OF THE HOUSING BILL SIGNED BY THE PRESIDENT TO HELP WITH THE HOUSING SLUMP.

Who can use the new tax credit?
Only first time homebuyers are eligible to use the credit.A first time homebuyer is definedas an individual who has not had an ownership interest in a principal residence in the previous three years.

Is there an income restriction?
Yes. Single or head of household are eligible if their income is no more than $75,000. Individuals who file a joint return may have income of no more than $150,000.

Is the amount of the credit ties to the price of the home?
Yes. The credit is for 10% of the cost of the home, up to a maximum credit of $7,500. If a home cost $65,000, the allowable credit would be $6500. If a home cost $120,000, the allowable credit would be $7500. The amount of the credit is the same for all taxpayers, married or single.

2. FHA and Condos:
Among FHA reforms, FHA previously regarded condos as multi-family units, requiring the entire bldg to be FHA approved, but now condos will be treated like a single family home, making buyibg easier.

3. Fannie Mae/Freddie Mac Bailouts:
The National association of Realtors Chief economist, Lawrence Yun, said the move would bring stability & help restore market confidence. It should lower interest rates and encourage lenders to expand mortgage loan operations, both of which should help the housing market.

4. Foreclosure Relief:
An estimated 400,000 struggling homeowners could avoid foreclosure with a new FHA program, Hope for Homeowners. The program began October 1, 2008 and ends September 30th, 2011. With $300 billion in federal funding, FHA will help homeowners with problematic sub prime loans to refinace to an FHA insured, 30 year fixed rate mortgage. One caveat is that lenders must agree to write down the loan to 90% of the appraised value. Eligible mortgages are those originated on or before January 2008, and borrowers must have a debt to income ratio of higher than 31%. For their part, homeowners must agree to share future equity of the home with FHA when the home is sold or refinanced. After 5 years, the equity split is 50%.

From the Good News Channel....

The Bottom Line is Good News!

Put it all together and what do we have? A recovering economy will help consumer and business spending to turn the corner and the economy to move to a self-sustaining pace. But it requires a catalyst to get things started. The tumbling housing market and subprime mortgage defaults have caused financial markets to freeze and have pushed the economy into a recession. However, recent rising home sales and some sustained momentum will bring the economy back into the fold.

Rising home sales will also thin out the housing inventory and begin stabilizing home prices. The credit market will start to unfreeze once home prices have passed bottom. Simply, the economy will not recover without a housing market recovery.

Fortunately, policymakers and both Presidential candidates clearly recognize the need to get the housing market moving. The two housing stimulus bills (homebuyer tax credit and higher loan limits), $700 billion Treasury plan and the Federal Reserve's actions are designed to assure steady mortgage flow and help revive the housing sector.

With it, the economy will expand and create jobs. America and its exceptional ingenuity always find a way to move past crises and back to economic prosperity.

Sign of The Times

Haunted Houses

Real Estate Humor

Don’t Let the Cat Out.

Realtors have many stories to tell about showing Homes… Here is one: I was showing my clients a two-story home, and as we walked back down the stairs we saw a cat run out the front door. I was mortified that I failed to close the front door and let the cat escape. Luckily, my clients were very understanding and spent 20 minutes helping me chase and capture the cat. Successful in our pursuit, we returned the cat to the house and went on our way. But the story doesn’t end there—the listing agent called me that night to find out if I knew anything about the strange cat the sellers found in their home when they returned from work.

Reasons not to Mess with Children.

A little girl was talking to her mean teacher about whales.
The teacher said it was physically impossible for a whale to swallow a human because even though it was a very large mammal its throat was very small.
The little girl stated that Jonah was swallowed by a whale.
Very Irritated, the teacher reiterated that a whale could not swallow a human;
it was physically impossible.

The little girl said, "When I get to heaven I will ask Jonah".
The teacher asked, "What if Jonah went to hell?"
The little girl replied, "Then you ask him. "

Need More Reasons Why 'NOW' is a Good Time to Buy a Home?

1. When you have a family, it’s always a good time to buy.

2. In this market, there are a lot of options

3. It didn’t make sense for us to spend the same amount of money renting something when we could own it.

4. Working with a REALTOR® took all of the guess work out.

5. This is the best market in years in terms of choice.

6. Interest rates are at historic lows.

7. Home choices have increased and prices are favorable.

8. If we didn’t buy now, we would have missed the opportunity on this home.

9. Buying a house is the best investment anyone can ever make.

10. It’s a great move-up market.

6 Truths about The Current Real Estate Market

From Illinois Association of Realtors Convention speaker and agent trainer Kim Daugherty presented these market truths in his session "Make Your Listings Sell."

1. Buyers buy after shopping around and they will be comparing your property to others currently on the market.

2. Sellers control the pricing and salability of their homes but buyers control the VALUE. A property is worth what the market will pay.

3. If a property sits on the market for more than a few weeks it gets shop worn (like a stale donut.) Price it right in the beginning while it is fresh and buyer interest is at its peak.

4. Most properties must be sold three times — to real estate agents with buyers, to the buyers themselves and then to the lenders who will loan the money.

5. What it means if there are no showings — agents don’t see your offering as worthy of showing to their buyers or buyers aren’t interested enough to look. If there are no offers, buyers don’t see enough value to even negotiate or try to buy.

6. Overpriced properties actually help well-priced properties sell.

Thinking of Buying a Home But Not Sure if this is the Right Time?

1. When you have a family, it’s always a good time to buy
2. In this market, there are a lot of options
3. It didn’t make sense for us to spend the same amount of money renting something when we could own it
4. Working with a REALTOR® took all of the guess work out
5. This is the best market in years in terms of choice
6. Interest rates are at historic lows
7. Home choices have increased and prices are favorable
8. If we didn’t buy now, we would have missed the opportunity on this home
9. Buying a house is the best investment anyone can ever make
10. It’s my job to help buyers make the right decisions
11. It’s a great move-up market.