Dave Tipton, Broker Tampa Bay Area Real Estate

Foreclosures Affect Your Home's Value

When it comes to foreclosures, your neighbors could have a serious affect on your ability to sell or refinance your home. Your credit score having virtually little or no effect on your ability to refinance your home.

Comparable sales or Comparables as defined by Wikipedia, are real estate appraisal terms referring to properties with characteristics that are similar to a subject property whose value is being sought. This can be accomplished either by a real estate agent who attempts to establish the value of a potential client's home or property through comparable market analysis or, by a licensed or certified appraiser, when performing a real estate appraisal.

A lender will require an appraisal when making a loan on a house or when you refinance. An unusual amount of foreclosures or short sales in any given neighborhood can lower the value of the surrounding homes.

Appraisers often use the comparable sales approach for placing a value on residential property. They research home sales over the past six months to a year that are within one half mile of the property that they are appraising. Since foreclosures are not arms-length transactions, they do not represent the true value of properties in that neighborhood. This becomes challenging for the appraiser or real estate agent to place a value on a property when there are no recent sales other than foreclosures in the immediate area. They will then expand the search out from the home they are appraising and or go to a sold property farther back in time. Most appraisers will use short sales as they feel short sales are arms-length transactions and that they represent the current market value.

Remember, Market Value is the estimated amount for which a property should exchange on the date of valuation between a willing buyer and a willing seller in an arms-length transaction after proper marketing wherein the parties had each acted knowledgably, prudently, and without compulsion.

We are foreclosure and short sale experts in the Tampa Bay Area. Call us with a question or to ask for advice.... 813-653-1241

Dave Tipton, Broker- Diamond Dwellings Realty

First Time Home Buyer Tax Credit

Overview

• In 2008 Congress created a $7,500 First-Time Homebuyer Tax Credit.

• It went into effect April 8, 2008 and was set to expire July 1, 2009.

* The big problem: It had to be repaid over 15 years. People viewed it as a debt and not a benefit.

NAR, working with Realtors® across the country:

• Succeeded in having the the repayment requirement for 2009 removed.

• The credit has been extended to on or before November 30, 2009 and can be claimed by those who closed on homes on or after January 1, 2009. It is still repayable for 2008 purchases.

• The credit has been expanded to $8,000.

• But, it is still only for first time homebuyers.

Credit Details

• The new Credit is an $8,000 REFUNDABLE Tax Credit (or up to 10% of the purchase price).

• So if the property is $75,000, the credit is only $7,500. (Assume a property over $80,000 for the rest of the discussion).

• Refundable means that if your total tax liability in the given year is less than $8,000, the IRS will send a refund for the balance.

Why is Refundability Important?

• Many taxpayers do not have tax liability that exceeds $8,000.

For example, according to the 2008 IRS Tax Tables:

• A single filer would need $46,600 in taxable income to have $8,000 in tax liability.

• A couple would need $58,600 in taxable income to have $8,000 in tax liability.

• Those with less tax liability will in most cases get a refund meaning they get the full value of the credit.

Who is not eligible?

If any of the following:

· Your income exceeds the phase-out range. This means joint filers with Modified Adjusted Gross Income (MAGI) of $170,000 and above and other taxpayers with MAGI of $95,000 and above.

· You buy your home from a close relative. This includes your spouse, parent, grandparent, child or grandchild.

· You stop using your home as your main home.

· You sell your home before the end of three years.

· You are a nonresident alien.

First-Time Homebuyer Definition

• Defined as someone who did not own another main home at any time during the three years prior to the date of purchase.

· For example, if you bought a home on January 15, 2009, you cannot take the credit for that home if you owned, or had an ownership interest in, another home at any time from January 15, 2006 through January 15, 2009.

• So if the last time you owned a home was 2005, you are eligible for the credit even though it is really not your "first" home.

• For married joint filers, both must meet the 1st time homebuyer test to take the credit on a joint return.

This means that for singles making over 75,000. And couples making over $150,000. The credit is proportionately reduced as incomes approach $95,000. And $170,000. respectively. So if a couple makes $165,000. The excess amount is used to create a fraction, 15,000/20,000 (.75) times the credit amount. 75% or $6,000. Of the credit would be disallowed. The people in this example would still get $2,000. credit.

The Home

• Must be the "main home" i.e. principal residence. Which is generally considered to be the home where you spend 50% or more of your time. It can be a condo, Single Family detached, co-op, townhouse or something similar.

• The home must be located in the United States.

• Vacation homes and rental properties are not eligible.

• For new construction, the "purchase date" is the date you occupy the home. So the move in date must be before December 1, 2009.

Recapture- 3 Year Residency

• If the home is sold prior to three years of ownership, the tax credit must be repaid. This is an improvement from the prior credit. That credit needed to be repaid in total over 15 years or the balance had to be repaid on sale.

· This provision is designed to prevent flipping homes in order to get the credit.

When Can You Claim the Credit?

· It can be claimed on your 2008 Tax Return (to be filed by April 15, 2009), an amended 2008 Tax Return, or your 2009 Tax Return.

· NAR and industry partners tried to get the credit made available at closing but policymakers balked. In addition, it was explained that even if a system could be devised, it would delay closings by several weeks.

Conclusion

· The new credit is greatly improved compared to the old credit.

· It is a true credit and does not need to be repaid as long as you occupy the home for 3 years.

· NAR estimates that hundreds of thousands of potential buyers will take advantage of the credit.

· For more info on the credit and the 2009 Stimulus legislation visit http://www.realtor.org/governmentaffairs/ or consult your tax adviser.

If I can be of assistance to you regarding this tax incentive, please call me.

Dave Tipton, Broker Diamond Dwellings Realty- Florida

813-653-1241

Reprinted from the National Association of Realtors website.

What is a HUD Home?
HUD homes are typically 1 to 4 unit residential properties acquired by HUD as a result of a lending institutions foreclosure actions on an FHA-insured mortgage. HUD becomes the property owner and offers it for sale to recover the loss on the foreclosure claim. A HUD home is another type of Real Estate Owned (REO).

Who can buy a HUD Home?
Almost anyone! If you have the cash or can qualify for a loan (subject to certain restrictions) you may buy a HUD Home. HUD Homes are initially offered to owner-occupant purchasers (people who are buying the home as their primary residence). Following the priority period for owner occupants, unsold properties are available to all buyers, including investors.

How are HUD Homes sold?
All properties available for purchase by the public are offered for sale at Internet listing sites maintained by management companies under contract to HUD. Any real estate broker registered with HUD may submit an offer and contract to purchase on your behalf. HUD pays the real estate broker's commission, if included in the contract.

Are there any special programs?
Properties in designated areas are available at a reduced sales price to law enforcement officers, teachers, firefighters, emergency medical technicians, nonprofits and local governments. Read more about these Good Neighbor Initiatives at: www.hud.gov/homes/index.cfm

Should I get a home inspection?
You are encouraged to get an inspection after your offer is accepted. All HUD Homes are sold AS-IS, without warranty. HUD will not make repairs nor pay to correct any problems after the contract is accepted. It is advisable to make your offer contingent on a home inspection. An inspection will tell you about the condition of the home, and can help you avoid buying a home that needs major repairs.

What about financing?
Although HUD does not offer financing directly, some HUD's homes qualify for FHA-insured loans. Shop around for a lender to find the best loan terms. How can an FHA loan help you? HUD is currently offering a $100 Down payment initiative. The $100 down payment is for owner occupants purchasing a HUD Home with FHA financing. This incentive is also available to owner occupant purchasers who obtain a FHA Home Repair loan. It's a great time to Purchase a HUD Home with FHA financing.

Buying a HUD home can be a fantastic opportunity, however there are some pitfalls than can cause you problems if you are unaware. Our company is experienced and trained in how to walk through this potential mine-field. For additional information and answers to your questions, call or e-mail the Diamond Dwellings Realty team today. 813-653-1241

Dave Tipton, Broker- Diamond Dwellings Realty

We are a registered HUD Real Estate Brokerage Company. Website

Check out the properties currently available at:

www.nhmsi.com/listings.html

Free Florida MLS Property Search

I recently received a letter from a client who wanted to express his appreciation for the FREE Tampa Bay Area MLS Property Search Service that Diamond Dwellings Realty offers on our website. The client went on to say that he appreciated the fact that our website did not make him jump through hoops in order to have access to this invaluable tool for locating homes and properties in the Tampa Bay Area. In fact you can search all of the property currently listed in the MLS state wide on our website.

It is our belief at Diamond Dwellings Realty, that if we provide service prior to our representing people, the majority who benefit from this service will come back to us when it's time to sell or make a purchase. This theory has proven itself time and time again.

Please feel free to check out our website for FREE MLS searches and for tons of other helpful information concerning buying or selling real estate. We even have investor information and programs available.

Dave Tipton, Broker- Diamond Dwellings Realty

Click Here For: FREE Tampa Bay Area MLS;Search

Amidst tough economic times the restaurant, Acropolis Greek Taverna, is set to open this weekend in the Winthrop Town Centre at Bloomingdale Avenue and Providence Road.

The popular restaurant and bar concept which has two other locations; 1833 E. Seventh Ave. in Ybor City and at 14947 Bruce B. Downs Boulevard in North Tampa. Acropolis is well known for its hearty Greek and Mediterranean fare served in a unique and festive atmosphere. Their specialty is providing free entertainment for people who just want to get away from it all and try something out of the ordinary. The concept is toted to attract people of all ages, including singles, couples and families. The same food, entertainment and amenities are offered in all three locations.

On a recent trip to the Ybor location, the Big Dog observed a young lady covered with scarves and veils enticing restaurant patrons with her belly dancing while a musician strummed the bouzouki, a six-string instrument similar to a mandolin, and servers navigated through the lively dining room delivering Greek food and drink. A scene most different from the usual sports bars and wing establishments you find in the Brandon area.

Outside the restaurant, diners relaxed in an open-air lounge. Some smoked herbal tobacco from hookahs, traditional Mediterranean water pipes. The restaurant provides the pipes and offers more than 20 varieties of flavored tobacco for sale.

This restaraunt is different from any other place I have been to in the Tampa Bay Area, and it's now in the Brandon area.

Dave Tipton- AKA Big Dog

Re-printed from website: Diamond Dwellings Realty- Florida

813-653-1241