Expanded Version of Tax Credit Will Allow More Homebuyers to Qualify ~November 9, 2009

President Obama recently signed an expanded version of the $8,000 first-time homebuyer tax credit that was set to expire on November 30. “The new version of the tax credit has the potential to stimulate the housing market even more than the old version due to the fact that more people will qualify under the new rules,” said Gibran Nicholas, Chairman of the CMPS Institute, an organization that certifies mortgage bankers and brokers. “Although the tax credit remains at $8,000 for homebuyers that have not owned a primary residence in the last three years, it has been expanded to include a $6,500 tax credit for homebuyers that have lived in their current primary residence for at least five consecutive years out of the past eight years. Under the old rules, move-up homebuyers did not qualify.” Consider these three examples:

Example 1:
Jane purchased a home in 2002, lived there for 5 years as her primary home, moved out in 2007, and turned that home into a rental property. If Jane decides to buy a new primary residence today, she would qualify for the $6,500 tax credit based on the fact that she lived in the same residence as her primary home for at least five consecutive years out of the past eight.

Example 2:
Harry purchased a home in 2004, and lived there for the past 5 years as his primary home. If Harry decides to buy a new primary residence today, he would qualify for the $6,500 tax credit based on the fact that he lived in the same residence as his primary home for at least five consecutive years out of the past eight.

Example 3:
Nicole purchased a home in 2006, and lived there for the past 3 years as her primary home. If Nicole decides to buy a new primary residence today, she would not qualify for the $6,500 tax credit based on the fact that she did not live in the same residence as her primary home for at least five consecutive years out of the past eight.

The tax credit applies to homes purchased for less than $800,000 before May 1, 2010. “If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010,” Nicholas said. “It works kind of like a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.”

The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. “This means that more people will qualify for the credit – especially in parts of the country with higher costs of living,” Nicholas said. “This should help stimulate parts of the housing market that may not have been impacted by the old version of the credit.”

There are many creative ways of structuring your home purchase transaction in ways that maximize the benefits of the credit. Here are a few examples:

• The credit applies to 1-4 unit homes as long as you live in one of the units as your primary residence – you could live in one unit and rent out the others

• If two unmarried individuals buy a home, and only one of the individuals qualifies for the credit based on their income or past home ownership status, the individual who   qualifies for the credit can claim the full credit. (Note: In the case of married couples, both spouses must qualify for the credit).

• The credit applies even if you have co-signers on your mortgage loan

For more information, visit www.CMPSInstitute.org.

By RISMEDIA

Relocating in Your Future? 5 Tips You Need to Know ~ October 24, 2009

The good news: in the middle of a really tough economy, you land a job offer. The bad news: you have to explain to your 14-year-old that it means moving out of state. Whether it’s for a new career opportunity or to move when a current employer relocates its business, people who may not otherwise have considered relocating are facing the potential of moving boxes in their future.

There are, however, steps you can take to make the transition more manageable:

Do your homework as a family: Like most homework, this research will start with the Internet. City and state official websites are a good starting point to get a sense of the school system, recreation and services. Look to local bloggers to get the “voice” of a neighborhood, including city, or even neighborhood focused real estate blogs. Divide up the research among the family so everyone gets to be an expert.

Take time to talk about the unknown: With everything that goes into relocation, it is easy to turn family life into a never-ending series of “to do” lists. Find time to let your family talk out loud about the move. Some days it will seem like a great adventure, other days it’ll be daunting. Let your kids know that’s okay.

Find where your hobbies live: If a family member has a special hobby or sport, locate the best ways to connect with that passion as soon as you get to the new location- it’ll feel more like home when everyone is doing what they love.

Start gathering medical and school records: We’d like to think we live in a paperless world- that is, until we roll into the emergency room in a new town and can’t access key information. Start gathering data from your physician, dentist and school administrators earlier rather than later.

Tap into the professionals: Finding the right real estate agent and a good mover can make the difference between a straightforward- or a nightmare-relocation experience. Whether you’re looking to purchase a new home right away or are opting to rent an apartment or home while you familiarize yourself with the area, these professionals can provide both guidance and support during your relocation. Take time to check out reviews, get references from people you trust and then narrow down options to a short list. It’s worth the work to get these relationships right.

“Having professionals on your side makes every difference during a move,” says Sharon Asher, chairman and founder, Relocation.com. “It’s understandable to want to do it all yourself, but people who are able to rely on strong professional services throughout the process come out of the experience saying the move was much more straightforward than if they had tried to handle it all on their own.”

For more information, visit www.relocation.com.

Article By RISMedia - Read More

A Fix-Up Strategy Works in Long Run: If You Have Time on Your Side, Improve and Enjoy Your Home ~ October 17, 2009

You’re thinking of selling—but not just yet. Let’s say you’ve got a five-year plan to prepare an older, lived-in house for sale.Maybe you’re faced with tattered carpets, battered appliances and dingy paint. Or maybe we’re talking about truly scary problems, such as asbestos, underground oil tanks or leaking roofs.

What should you take care of first? What can wait? What can be ignored altogether? And how do you keep costs under control?

“Basically what we’re talking about is good, solid preventive maintenance on your home,” said Barbara Weissmann of Friedberg Properties in River Vale, N.J. She recommends that homeowners looking at a sale down the road hire a home inspector to check out the house. “You’re looking to discover defects that you can fix over time,” she said. She and other experts say it’s possible to get a house ready for market without spending a fortune, especially if you have time on your side. And if you’re going to fix up the property anyway, Weissmann said, “why not do it several years in advance so you can enjoy it?”

The first jobs to tackle include anything that’s a danger to your health or the house’s future. If the roof is leaking, for example, that will damage the ceiling, walls and floors below. Funky wiring or leaky plumbing? Deal with it sooner, not later. “The biggest killer of a home’s value is no maintenance,” Weissmann said.

If there’s flaking asbestos insulation on the pipes, that’s a health hazard, and can also delay or kill a sale down the line. Don’t try to remove it yourself; get a licensed contractor.

You should also make sure you have working smoke and carbon monoxide detectors. Check with your town; some require that at the time of sale, the alarms must be wired into the home’s electrical system, a job that requires an electrician. Other municipalities will accept battery-operated alarms. Either way, you also want these in place for your own safety, along with a fire extinguisher in the kitchen.

When you’re ready to sell, the buyer will generally require that certain major issues be addressed. Better to handle them now than risk delaying or losing a deal later. Aside from asbestos, another big environmental concern is an underground oil tank, which can leak. Jeana Cowie, a RE/MAX agent in Oradell, N.J., recently advised a couple who plan to sell in a few years to deal with the tank now. “I felt that buyers will skip looking at the home because of oil heat,” Cowie said. “And a new gas furnace is a huge positive for all homes.” Maybe you’ve already dealt with the oil tank. But if it was only abandoned in place, be prepared: a buyer will often seek to have it taken out because of concerns that the job was not done properly, said Louis Chapman, a real estate lawyer in Wayne and Teaneck, N.J.. You might want to have it removed before putting the house up for sale. Check for radon gas and deal with it if it’s there; this is something a buyer will also insist on. Try your state department of environmental protection for testing and correction companies.

Basement moisture often is an issue in home sales, said Dominick Laurita of Interstate Home Inspections in Califon, N.J. It can lead to mold, which can scare buyers away. The most common cause: gutters that aren’t draining rainwater away from the house. “It’s a simple fix,” said Laurita.

A termite problem also could derail a sale, so you want to act quickly if you find evidence of that. Though inspectors can’t see termite damage hidden behind walls, the insects sometimes leave visible trails. Keep the paperwork on all these jobs to show an eventual buyer.

Once you get past the most pressing projects, there are a cluster of jobs where you have to weigh the benefits against the costs. In general, home sellers get back only 60% to 80% of the money spent on home improvements, according to Remodeling magazine. “You’re not getting a dollar back for every dollar you spend,” Weissmann said. “Don’t do any remodeling whatsoever, but anything that has to be replaced should be replaced,” said Dick O’Connor, a Dumont, N.J., real estate broker. “You can spend $50,000 to remodel and get only $30,000 back. Just be sure everything is in working order.”

Michael Fitzpatrick, a Hackensack, N.J., real estate lawyer, said it’s okay to leave some issues to be handled in a negotiation between the seller and buyer, rather than spend a lot to upgrade the house before you even put it on the market.

Most experts recommend against major kitchen or bath renovations. But less ambitious upgrades, such as replacing scratched countertops or outdated appliances, could make sense, they said. “You’ve got to make it look good,” said Maria Rini, a RE/MAX agent in Oradell. “But the spruce-up bill can be a lot less than you imagine.”

When it comes to cost-effective fix-ups, most housing experts have three favorites: clear out clutter, paint the walls and rip up old carpet. If the wood floors under the carpet are in good shape, great; otherwise, they can be refinished at a cost that typically ranges from $1.50 to $3 a square foot. Bob Olson, a contractor with Home Resources in Ridgefield Park, N.J., said updating doors, moldings and trim can give a home “a fresh new look” at a reasonable cost.

Improving the landscaping, especially the front yard, is crucial. But it doesn’t have to look like a manicured estate. “Clean up the flowerbeds and trim back the bushes to expose the house,” Rini said. Plant flowers, especially in the front, for curb appeal, advised Barbara Ostroth, a Coldwell Banker agent in Oradell. In winter, you can plant cabbage plants with colorful leaves.

If your furnace or hot water heater dies, obviously you must replace it. If those items are old but still working, however, most real estate experts advise that you leave them in place and adjust the home price to reflect their age. “If the heating system is old but works, don’t touch it,” O’Connor said.

One option is to buy a home warranty when you’re ready to sell. A warranty “is a great way to overcome buyers’ objections to older appliances, pipes, electric systems, furnaces and hot water heaters,” Ostroth said.

New, energy-efficient windows? That’s a costly job that many sellers would rather just leave to the buyers, even it means getting a lower price for the property. “If you’re getting out of the house you would almost never redo the windows, unless they’re rotted through,” Rini said.

If you decide to renovate a kitchen or bath for your own enjoyment, keep resale in mind. “Try to pick something that is salable. Keep it neutral; don’t put in a green countertop,” said Margrit Vogler of Margrit Vogler Properties in Oradell.

Finishing a basement could be worthwhile if the house is small and there’s no other family room or play space for the kids. But otherwise, most real estate advisers recommend just tidying up instead, by throwing out clutter and painting the walls and floor.

By Kathleen Lynn - Read Article Here
(c) 2009, North Jersey Media Group Inc.

Why Spartanburg? ~ October 14, 2009

Why should people want to live, work and raise their families in the Spartanburg, SC area?

One reason is that apparently many businesses feel that it is a great area to locate their companies. Jetline, a supplier of customized promotional products, is locating a new facility in Gaffney and bringing 100 jobs in the short term and could add up to 400 jobs over the next five years, according to Company President Eric Levin. Timken a global bearing manufacturer said recently it will soon close its distribution center in Bucyrus, Ohio, and consolidate those operations into its existing center at 191 Ridgeview Center Drive in Duncan, at least for now. Samsung is building a call center in Mauldin, eventually bringing up to 1000 jobs to the Upstate, and officials say Spartanburg can expect three new businesses to bring 300 jobs in manufacturing and distribution. Hal Johnson at Upstate Alliance said “New companies being recruited to the area, such as Osage Bio Fuels or American Titanium choosing to locate facilities here, really made a statement in a down economy that the Upstate does have its act together.“

The favorable or, “sought after”, status of Spartanburg is further supported by an article that appeared in Businessweek Magazine in August stating that Spartanburg had the second strongest real estate market in the U.S., behind only Boulder, CO. According to the magazine, 56.81 percent of homes in Spartanburg increased in value, and homes had a median value of $106,900.

The magazine attributed some of Spartanburg's success to its colleges, which it said "somewhat buffered" the city from the downturn by providing "solid jobs and a steady flow of apartment and home renters."

Spartanburg also boasts wonderful Arts featuring The Spartanburg Auditorium, with its great tradition of bringing wonderful entertainment to the Upstate, being joined by the Chapman Cultural Arts Center, which is about to celebrate its second anniversary of adding to and expanded the cultural landscape in the Spartanburg area AND the soon to be completed Fine Arts Center of Spartanburg County School District 5. For a community of its size, Spartanburg also has much “cutting edge” arts as well, such as The Hub City Writers’ Project” and the Hub-Bub artists in residence program, 2 of the best known.

So Spartanburg is a great to place live, work and raise your family due to the growing business population, the myriad colleges and universities that enrich the community fabric and the far reaching and expanding Arts scene, to name just a few.

Come and experience Spartanburg for yourself.

By Lou Buttino

First-Time Buyers Race to Beat the Clock, Qualify for $8,000 Federal Tax Credit ~ October 14, 2009

Tired of paying rent and enticed by a first-time home buyer tax credit, 25-year-old Garrett Rebel began his search for a home in August, scouring the suburbs of Dallas for a house to meet his current and future needs. And he’s already running out of time.

Timing is everything for many first-time buyers today. For those who purchase a home this year, the tax credit is for 10% of the purchase price, up to $8,000. Those who have owned a home in the past three years aren’t eligible. Buyers also have to meet eligibility requirements regarding income; the current credit begins to phase out for singles who make more than $75,000 and couples who make more than $150,000.

Planning For The Holiday Shopping Season ~ October 14, 2009

Each year, the holiday shopping season seems to get under way earlier. First Thanksgiving, then Halloween. While holiday season shopping may not be on your mind at the moment, planning gift-giving and other holiday spending this early gives you time to:

Save cash: Start saving now to pay cash for the holidays. Besides gifts, spending categories include gift wrap, decorations, food, greeting cards and travel. Keep total holiday spending to 1.5% of your gross income, less if you’re deep in debt. That’s about $1,000 for the average American household. Divide your spending estimate by the four months left, and set aside that amount each month.

Find gifts: Every holiday season has its hot item, whether it be the Tickle Me Elmo doll or the Nintendo Wii. Shopping now means you won’t have to pay a desperation premium for an item in short supply in December. And retailers generally are maintaining smaller inventories, making it less likely the item you want will be on the shelf when you need it.

Change traditions: If you usually buy for everyone in your extended family, this might be a good year to revise the rules. Perhaps you buy for children only or draw names for gift-giving. Suggesting this change early gives everyone time to adjust shopping plans.

Buy stuff on sale: Smart shoppers know they should zig when others zag. Stretching the holiday season gives you more time to capitalize on sale prices and out-of-season merchandise.

Compare prices: Prices vary widely on the same item, but who has the time to comparison shop in the holiday bustle? You have that time now, so take advantage of it.

Save on shipping: Some of the best prices are online- Internet or catalog shopping saves on gas and perhaps on state sales tax. But if you wait until the last minute, you’ll have to pay for rush shipping. Starting now gives you time for packages to arrive via the cheapest shipping method.

Try new tactics: Learn about shopping online through rebate portals to get cash back and record purchases at PriceProtectr.com, which will e-mail you if the item’s price drops in the retailer’s price-protection period. Then, you can claim a refund. Always do a quick Internet search for coupon codes used at online checkout. You’re likely to get a discount or free shipping.


Avoid layawayffees: Layaway rarely makes sense. You could save the money yourself and buy the item when you have enough. Starting now allows time to do so. Sears/Kmart/Lands’ End shoppers can save money with a Christmas Club savings card. It pays a 3% bonus up to $100, though you’d have to stash $3,333 on the card to get the full C-note.

Get creative: Clichéd but true, some of the most meaningful gifts are those you make yourself. Start work now.

yers today. In fact, approximately 1.14 million buyers have already filed for the credit. Many more are expected to file for the credit when income taxes are due April 2010.

First-Time Buyers Race to Beat the Clock, Qualify for $8,000 Federal Tax Credit ~September 18, 2009

First-time home buyers have just 12 weeks to find and close on a home to qualify for the $8,000 Federal tax credit before the November 30th deadline. Those just beginning the process will have to beat the average time it takes to buy a home, a challenge smart buyers can meet even though it’s taking longer today to close most transactions.

Two significant challenges first-time buyers face today include the potential for a lengthy process related to search and closing if not managed carefully at every step, and intensified competition. On average, first-time buyers search 12 weeks to find a home, while closing can take up to 60 days, depending on individual circumstances and local regulations. Additionally, the tax credit has proved to be extremely popular this year, since taking advantage of the first-time homebuyer’s Federal tax credit and relevant state incentives is the most important reason motivating 10.8% of buyers today. In fact, approximately 1.14 million buyers have already filed for the credit. Many more are expected to file for the credit when income taxes are due April 2010.

Spartanburg Real Estate Market Among Best ~ August 24, 2009

Spartanburg has the second strongest real estate market in the U.S., behind only Boulder, Colo., a national business magazine said this week.

BusinessWeek, working with Zillow.com, formulated the strongest housing markets by ranking metro areas based on the share of single-family homes "in which values rose in the second quarter compared with the second quarter of 2008," according to the magazine's Web site.

July Home Sales Surge ~ August 24, 2009

WASHINGTON (AP) -- The U.S. housing market is rebounding faster than expected. The question is, can it last? Home resales in July posted the largest monthly increase in at least 10 years as first-time buyers rushed to take advantage of a tax credit that expires Nov. 30. Sales jumped 7.2 percent and beat expectations, the National Association of Realtors said Friday.

"We've got tens of thousands of homes perfect for the first-time homebuyer and we've taken advantage of that," said George Hackett, president of Coldwell Banker Real Estate in Pittsburgh.

Sales hit a seasonally adjusted annual rate of 5.24 million in July, from a pace of 4.89 million in June. It was the fourth-straight monthly increase and the strongest month since August 2007. Sales had been expected to rise to an annual pace of 5 million, according to economists surveyed by Thomson Reuters. The risks to that healthy pace, however, are job cuts, mortgage rates and the looming end to the homebuyer tax credit. And the last one could be a doozy because first-time buyers are snapping up one out of every three homes.

First-time buyers get a credit of 10 percent of the purchase price of a home, up to $8,000. The credit phases out for singles earning more than $75,000 and couples earning more than $150,000. The real estate industry is lobbying to have the credit extended but its unclear if Congress will be swayed. "I would not be at all surprised to see a dip at the end of the year once the tax credit expires," said Robert Dye, senior economist with PNC Financial Services Group. The home sales report was another sign that the U.S. economy is on the verge of a long-awaited recovery after enduring a brutal recession and the worst financial crisis since the Great Depression.

Economic activity in both the U.S. and around the world appears to be leveling out and "the prospects for a return to growth in the near term appear good," Federal Reserve Chairman Ben Bernanke said Friday. But fallout from the recession will linger for some time. Unemployment rose in July in 26 states and fell in 17, the Labor Department said Friday. That is driving up foreclosures, which are not expected to level off until sometime next year. Sales of foreclosures and other distressed properties made up about a third of all transactions last month, down from nearly half earlier this year.

By ALAN ZIBEL
AP Real Estate Writer