Jodi Counts

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 first time homebuyers tax credit Introduced last February as a means of kickstarting the sluggish housing market, over 1.2 million borrowers have claimed $8.5 billion out of the original $13.6 billion allocated for the credit. Did the tax credit do what it was intended to do? Depending on which economist you speak to, an estimated 150,000 to 400,000 home sales were the direct result of the Home Buyer Tax Credit.

According to the latest bill, the revised tax credit contains new and improved features to reach a larger cross section of potential home buyers as well as extending the deadline to encourage more potential buyers.

The Tax Credit includes:

Deadline for current credit: Home buyers must close the deal on a home purchased in 2009 by November 30/09. As long as they live in the home for at least three years, the credit is not repayable.

Deadline for new & improved credit: Home buyers must purchase a new home by April 30, 2010, but as long as they were under contract by this date, would have up to 60 days to close the deal.

Eligibility and amount of current credit: First time home buyers are eligible for up to $8,000 in the form of a non-repayable tax credit. When claimed on a tax return, it reduces the amount of tax payable and results in a refund for the balance.

Eligibility and amount of new & improved credit: Same as above, however there is a new component that allows an additional $6,500 credit for those who have lived in their homes for five of the last eight years - thus not restricting the benefit to first time home buyers.

Those buyers with incomes exceeding $125,000 for singles and $225,000 for married couples are not eligible. Homes valued at more than $800,000 are also ineligible.

Fraud protection: As with any new legislation, there are those who attempt to take advantage or exploit. Thousands of false claims were received from children and teenagers. In the new and improved credit, applicants must be 18 years of age or over to apply.

For more information on this tax credit go to http://www.federalhousingtaxcredit.com/faq2.php Contact me for all your real estate needs. www.adreamhouse4u.com, www.jodicounts.mywindermere.com

You may have decided that the smartest thing you can do right now is to buy in what is truly a buyer's market. There has never been a better time to buy and right now the doors have been opened again for not only traditional and conventional loans but also for financing investment properties.

It wasn't very long ago that when you turned on the news you saw people looking into the windows of their banks, beating on the glass, begging the banks to release their money because the banks were shutting down. Nobody was buying, and nobody was financing anything. It hasn't been very long that the economic market has seen some very subtle changes, and now the buyers are buying and the banks are lending. They are also financing investment properties so there are some very big things that you can get in on if you are savvy and act quickly.

There is no time to waste. Rates are at the lowest that they have ever been and slowly but surely more and more buyers are jumping out there and trying to find the deals. There are still foreclosures out there in droves, and if you are buying them for rentals, this is a very smart move.

Lenders are financing investment properties, knowing that the purchase price is well below appraised value in most cases. How do you find these properties? There are several websites that you can go to and find them, however, if you want the most up to date listings, then you should really be using a Realtor.

Realtors have the most up to date information in their Multiple Listing Service. As a buyer, you do not pay your Realtor. The fee for the Realtor is paid by the seller's Realtor. The seller has already agreed to how much commission he or she will pay the listing agent. The listing agent agrees to share a percentage of his commission with the company that brings that buyer.

You as a buyer don't even have to compensate your Realtor, they are paid through the transaction by the seller's Realtor, why wouldn't you agree to have your own representation for an investment. The Realtor can also guide you on financing investment properties as Realtors are dealing with people who can get their client's properties financed. The next time as you think about buying a home, think of it as a great investment since that is the reality.

Most teenagers know little or nothing about money. The vast majority of kids aged 13 to 19 go to school full time. Most teens participate in sports after school, so they don't have much time for paid work.

In most states, a teenager cannot get a work permit until they are 16 years old. For most kids, this falls in the junior year of high school. Part time paid work(10-20 hours/week) is appropriate at this stage. Your teen can do yard work for neighbors or even run their own pet sitting business. When I was 16, my father actually bought me a spray washer and I spray washed homes for money.

Get your teenager a short book on money and finances. Make sure it is written for teenagers, not adults. Take a look at online bookstores or go to your local bookstore. Make sure "teenager" or "teen" is in the title. Take a quick look through the book before you buy it. If your teen is not much on reading, make sure the book has lots of pictures and graphs. Better yet, find a DVD that teaches teens about money and saving.

Show him/her how to balance a checkbook. If you pay your bills on line, show your teen how easy it is to keep track of our bills in this way. Most banks allow you to check your savings or checking account balance on line. Show your teen your account and how you check the balance. Note: do not give your account password away, even to your teen.

Make sure your teenager has his/her own savings account. Checking accounts can wait until he/she is 18 or has a paying job. When his/her statement comes, go over it together until he/she understands everything that he/she sees there. Let them especially see how much interest he/she earned that month and why. They should know that putting money in a savings account allows the bank to borrow Their money to lend to others. In order to do that, the bank has to pay them for the use of Their money, hence interest payments.

No one should have a credit card until the age of 18. I'll go further: no one should have a credit card without a paying job and a significant bank account. Anyone living paycheck to paycheck should not have a credit card. Let your teen know why you feel this way.

Most teenagers want their own car. Encourage your teen to start saving money now. Also let them know that you will match whatever he saves towards a car. Advise your teen to buy a used car first.

The worst thing you can do is to give your teen a new car for his 16^th birthday. This only encourages the "something for nothing" mentality. It will also encourage dependence on you for everything. A prime example of dependence is having your college student bring home a huge sack of laundry. Why does he/she not know how to go to a laundromat and do their own clothes? Your teen must be as independent of you as soon as possible, preferably no later than 18.

Let your teenager know how good and satisfying it feels to be able to pay your debts off on time and to be debt-free. See if his school has any type of class on saving money or finances in general and make sure they takes the class.

Conclusions:

Your teen should know that it is no fun being in debt. They should also know that in order to stay out of debt, They must pay all Their bills on time. You should talk a little about credit ratings and how They can earn a good credit rating. Let your teen know that a good credit rating will help Them buy big-ticket items, like a car.

Once your teen demonstrates that They can pay what they owe on time and still save money, it's time to teach Them how to invest money in stocks, bonds, or other negotiable instruments.

Strongly encourage independence in your teenager. The more they can do on their own, the better off they will be. Discourage any dependence on you for money or for anything that they should be able to do on their own. Let them know how good it feels to not have to depend on anyone for anything.

My daughter asked me: "When I start college, I think I would like to buy a home instead of rent. Then I will rent out my other rooms so that my roomates will pay for my payment." I didn't think she would be thinking in those terms. I may have done something right but I know we have a long way to go.

Picture in your mind a bucket - but not an ordinary bucket. Think of this bucket as one you must keep full - full of leads so that your real estate business doesn't dry up.

The good news: directly above this bucket are 10 faucets. We can call them "lead faucets."

The bad news: many REALTORS^® don't use them.

That's unfortunate, because each lead faucet has powerful potential. And just a little tinkering can mean a steady gush of leads that will keep your bucket filled to the brim.

Let's look at these 10 ‘faucets' and how to create a fire hose-strength flow.

1. Past Clients - Vital because their referrals come with an implied endorsement of your services. Put past clients into two categories: A - Those who've given you referrals, and B - Those who haven't given you referrals. Set a reminder system to stay in touch with each regularly with cards, calls, small gifts, etc.

2. Internet - A must if you plan to stay in business. Put your focus on responding to the site visitors. Can you respond in 15 minutes? If not, fix it so you can.

3. Interactive Voice Response (IVR) - The hotline numbers buyers can call to learn about properties. Again, ignore technology at your peril.

4. Sphere of Influence (SOI) - The more you think about your SOI (basically your family, friends and acquaintances) the larger it gets. That "acquaintances" category, for example, should include everyone you've met.

5. Signs - Revisit your signs. How can you make them more effective with more eye-catching color and contrast? Web address?

6. Direct mail - It can be expensive, so find out what's already being sent in the area you're considering. The two keys here are differentiation - will your mailer stand out and will the offer and the call to action actually produce desired results.

7. Broadcast radio and TV ads - Yes, some may be too expensive. But don't rule it out completely. Both radio and TV have massive reach and there are deals out there. The key is, if you do go with these mediums, use them regularly. Frequency beats reach - so don't buy for just a one-shot deal.

8. Print Ads - Give them a fresh and thorough inspection. What's keeping them from really grabbing your target audience by the collar? Often, they lack contrast and that prevents them from being noticed in the first place. Don't forget to add muscle to your call to action.

9. Prospecting - Absolutely essential. It's one of just four real dollar-producing activities a REALTOR^® can do. The trick is to schedule time everyday to do it - the so-called ‘hour of power' - usually in the morning because it's the most controllable time of the day.

10. Networking - Choose where you network carefully. There are literally thousands and thousands of groups out there. Be strategic by examining what potential business they bring to the table.

And here are a couple ‘faucet maintenance' tips:

- Keep a balanced approach with all faucets flowing regularly, and avoid relying on just one or two lead generators. What if you put 90 percent of your lead efforts into your Web site and it goes down for a few days? Where will that leave you until it's up and running again?

It's fine to focus on three or four lead generators, but never ignore the rest of them. You might, for example, work to generate a third of your leads from past clients or SOI. Then maybe 20 percent from ad and sign calls. Another 20 percent from prospecting. The rest can fall into the five to 10 percent range.

- Always keep track of where your leads are coming from - understand intimately how each one came to you. Then readjust your efforts on those that work best for you.

10 Home Buying Tips For Short Sales

Homebuyers will inevitably come across one or more properties classified as a short sale. A short sale is an attempt by the current owner to sell a home in lieu of the bank taking it back through foreclosure proceedings, thus partially salvaging their credit rating and relieving the stress of a heavy mortgage debt.

The entire short sale process hinges on the hope that the bank will take a loss now, approve the sale, and eliminate the costly process of foreclosing, clearing, and reselling a home. Obviously, this is a big hope on behalf of prospective homebuyers as well and they need to understand some things in order to lessen the chance for disappointment of unapproved short sales.

TIPS:

1) Price is usually set by the agent & seller, not the bank - The agent and seller often create a very low asking price in order to attract buyers. The bank is normally unaware of the asking price; however, the bank has the final say in what an acceptable offer is. Since the bank has the power to accept or deny offers, their lack of price awareness often leads to the process taking longer than anticipated. The bottom line is that the buyer needs to remain positive and patient throughout the entire process.

2) Loans owned by 1 bank usually better than 2 - If the seller has loans owned by two different banks it is a lot more difficult to approve the short sale. This is something the agent or the buyer can't control. It depends on the willingness of the bank or banks involved. While the reasons are beyond the scope of this guide, buyers should know that when the seller only has a loan with one bank, the short sale often becomes more buyer-friendly. An experienced Realtor can let you know this type of information.

3) Lowball offers get slow or no response - Remember that the bank is typically unaware of the pricing during a short sale. When lowball offers stream into the bank they are often scoffed at and rejected, giving the prospected buyers little or no feedback. Surprisingly, it may also take a long time to hear back even on good offers due to the high volume of transactions that lenders are dealing with.

4) Agent must check comparables before submitting offer - The agent must be sure to check recent home sales in the area to give buyers a better idea of the properties that are selling. This will give the agent and the seller a reasonable asking price that will be more likely to be approved by the bank. Checking comparables will also give the buyer a better knowledge of what price homes in the neighborhood are selling for and make them a more informed homebuyer.

5) Don't hang your hat on the property - Short sales aren't necessarily "short." It can sometimes be a long process. Don't get your hopes up for just one property, keep your options open and continue to actively look at multiple properties. Buyers must remain optimistic, the right property will come along. In most areas it is completely legal and risk-free to have multiple offers out at any given time with the proper contingencies.

6) Sellers with other properties or too strong of financials may not qualify for short sale and/or may be asked to pay the difference - Sellers that own more than one property or have an extremely large net worth will probably not be eligible for a short sale. In some cases the seller will be asked to pay the difference of the sale. The seller might even need to sign a promissory note stating that they will pay back all or most of the debt. This has virtually no effect on the buyer as long as the seller cooperates.

7) "Approved" prices are quickest - It is important to remember that short sales are not always timely; however, making an offer on an "approved short sale" can be a quicker process. An "approved short sale" has a price that has already been given the green light by the bank. This could be due to the fact that another interested buyer made an offer that was approved, but didn't end up buying the property. These types of short sales are some of the most desirable.

8) Some banks look for the strongest buyers, others want the strongest offers - The bank has all the power in approving short sales. The bank can pick the most appealing buyer, which may mean different things to different banks. Some banks may prefer the buyers with large down payments while others just want the highest price regardless of down payment. Many buyers want to know if they will get a deeper discount for an all cash offer. This is hard to predict and one will never really know until they make an offer. As long as the buyer is surrounded by a good team we would advise them to do just that.

9) Repairs are seldom done, credit is more frequent - If there are improvements to be made on the home these will most often not be done by thebank. Typically there is some sort of credit issued and the buyer must take the responsibility of fixing anything that is broken.

10) When you get approval, you must close on time - During a short sale there is no leniency with the closing escrow date as there often is in a traditional sale. During a short sale, exceptions are rarely made and the buyer must close on time. Because of this, it is important to take care of all loan paperwork immediately after opening escrow. I'd advise buyers to be extra prepared and try to have the loan finalized a few days in advance of the closing date. If there is going to be an issue that will prevent closing on time, a request for an extension will need to be made immediately. If the request is made early enough, many banks will grant an extension but don't just assume it will happen.

Conclusion
Short sales can be a great opportunity to find your new home at a competative price. A Short sale could also be a major headache that lasts for months. It is important to have a good understanding of the factors that lead to a successful short sale to make it an enjoyable and profitable experience. I hope that these tips will help you to remain positive and optimistic throughout the process. Good luck on your find. If you would like to start looking for your next home...don't hesitate to give me a call.