24. April 2009 by Teri Deane.

Why is this market so great for the move-up seller/buyer?

1. Affordability - because of recent drops in home prices housing is now much more affordable.  Tax incentives are bringing first time home-buyers into the market in droves, which means more buyers for your home than ever before.
2. Interest Rates - historically low rates make owning a home attractive.  With the low rates we’re seeing today, it’s not wise to try and “time” the bottom of the market.  Rising interest rates can work against would-be buyers, for example, a one-point hike in interest rates boosts monthly mortgage payments the same as a 10 percent increase in prices.
3. Do the Math - if your home was worth $300,000 a few years ago, and the market has dropped 15% , you will likely sell for $255,000 today (a loss of $45,000).  However, if the home you purchase was selling for $600,000 a few years ago, the 15% drop is a difference of $97,500 and you can purchase that same home today for $510,000.  That’s a net gain of $52,500 and you have just bought a home you most likely would have been unable to qualify for at the market’s peak.

But. . .it’s a “buyer’s market” you say.  “How can I hope to sell my home?”

1. Updated homes with new or newer flooring, newer appliances, fresh paint and some curb appeal (trimmed yard, flowers, etc.) sell quickly.  There are a lot of short sales and foreclosure homes that need TLC and total rehabbing - and there are bargain hunters out there looking for those homes.  The majority of the buyers, however, want a home that is in great shape where they don’t have to do a lot of work or spend a lot of money on upgrades. - they want to move in and be done.
2. Price, price price!  Remember the math. . .yes, you’ll take a bit of a hit when you sell, but your net gain is going to be huge on the larger home you purchase.  So, price your home aggressively and get it sold quickly.  Most showings occur when you first put your home on the market.  Many sellers make the mistake of pricing too high in the beginning (”to see what happens”) and then have to chase the market with price drop after price drop and month after exhausting month on the market.  When you see a house that’s been listed for sale for several months what do you think?  The same thing everyone thinks: “what’s wrong with this house that it hasn’t sold already?

So, if you find that you’ve outgrown your home and are cramped for space, or you simply feel it’s time to move out of that condo or townhome into a detached home, or move out of the city to raise your kids in the “burbs,” this is totally the market for you.  Call Teri or Dave today and let us help you sell and buy your “dream home.”

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28. January 2009 by Teri Deane.

Here’s some up-to-date information for first time homebuyers and the $8,000 tax credit offered by the US Government to stimulate housing.  Under current rules:

• The credit is 10% of the homes value up to $8,000.
• You must be a first time homebuyer (have not owned a house in the past 3 years) and have closed on a home purchase between January 1, 2009 and December 1, 2009 (must settle by the 1st).
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.  The tax credit amount is reduced for buyers with a modified adjusted gross income (MAGI) of more than $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return. 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 $95,000 (single) or $170,000 (married) and is reduced proportionally for taxpayers with MAGIs between these amounts.
• Only works for your principal residence - or in the IRS’s words, “the one you live in most of the time.”  This is not valid for second homes, investment properties or houses outside the United States. However, the definition of “home” is quite broad - it “can be a … houseboat, housetrailer, cooperative apartment, condominium or other type of residence.”

This tax credit is just one more good reason to stop giving your hard-earned money to the landlord every month.   With this credit, the amazingly low interest rates and the drop in home prices, what a great market for buyers!  So. . .buy now. . .why rent?  Visit Teri’s website, www.buynowwhyrent.com to search for homes.

First-time home buyers who purchased a principal residence on or after April 9, 2008 and before January 1, 2009 may qualify for a $7,500 tax credit. Click here for more information.

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