Kathy Batterton

The race to the finish is nearing an end. Buyers interested in the homebuyer tax credit are now under contract and have closed or will close by the end of June. As the insanity winds down a bit, it gave me a moment to pause and consider what type of sales I closed since the last week of March.

Closed 23 transactions in just over 2 months of April and May.

What types of sales were they?

• Regular listings with sellers who could afford to go to closing? 10
• New Construction: 3
• Land: 2, one of which was a foreclosure lot in distressed subdivision
• Foreclosures: 4
• Short sales: 4

40% of closed transactions were distressed properties.

What type of buyers:

• First time homebuyers: 10
• Move up buyers: 3 (involved in 6 total transactions)

Almost 70% of transactions involved a buyer/seller receiving a tax credit.

There are 3 more short sales under contract with first time homebuyers wanting to close by the deadline. It is doubtful at this point that they will close in time. Very sad as a couple of these have been waiting since the first of the year.

Now we can only hope that the jump start will continue.

HOMES IN NORTHWEST FLORIDA ARE SELLING!

If you are looking to buy or sell a home in Northwest Florida, please don't hesitate to call me.

No matter how you look at it, buying a home is a major investment. For many home buyers, it can be an even more expensive process. They fall prey to some of the many common and costly mistakes, which trap them into either paying too much, losing out to another buyer on their competitively priced dream home, or, worse, buying the wrong home for their needs.

A report titled "9 Buyer Traps and How to Avoid Them" discusses the 9 most common and costly of these home buyer traps, how to identify them, and what you can do to avoid them. Among the major traps:

1. Bidding Blindly. By not researching recent comparable home sales to make sure you don't either over bid or under bid.

2. Undisclosed Fix-ups. You should hire an independent inspector to objectively view the home inside and out and make the contract contingent upon the inspector's report.

3. Hidden Costs. Obtain a projection of total charges (Good Faith Estimate) from both your lender, and your Realtor prior to signing an Offer to Purchase, so you avoid hidden surprises at the time of closing.

A systematized approach to the home buying process can help you steer clear of these common traps, allowing you to not only cut costs, but also secure the home that's best for you.

For a copy of the full report, or answers to your real estate questions, contact kbatterton@remax.net.

When shopping for your home, you'll discover that most homes on the market are resales. Yet, one out of four home buyers purchase a new home. Both new homes and resales offer advantages. Before you make a decision, let's COMPARE THESE POINTS!

New Homes:

1. Offer innovative use of space and style.

2. Greater energy efficiency.

3. A choice of options and upgrades.

4. Everything is new and modern.

Existing Homes:

1. On the average, are less expensive.

2. Frequently offer more square footage, for the same price.

3. Often are in an established neighborhood with mature landscaping, and a greater array of character than the "cookie-cutter" style often found in new subdivisions.

4. The neighborhood usually has little, to no ongoing construction or traffic issues.

5. Home has already "settled", reducing possible problems that arise from this happening after the purchase of a new home.

As you can see there are advantages to both. If you are thinking about buying a new home, you may be interested in a report titled "The Home buyers Guide to New Homes: Ten Tips to Save You Time and Money".

For a copy of the full report, or answers to your real estate questions, contact kbatterton@remax.net

The best part of the Government's $8,000 Housing Tax Credit is that it is a TAX CREDIT, not a deduction. Unlike deductions, such as mortgage interest. a first-time home buyer that qualifies (has not owned a personal home in the past 3 years) will receive $8,000 (or up to 10% of property's value, if less than $80,000), even if they don't owe that much in taxes! You will not need to pay this back as long as you live in the home for 3 years.

There are income limits for qualifications and partial credits for high income households. The government has extended the tax credit into 2010. All buyers must have binding sale contracts in place on or before April 30. Sales must close on or before June 30. Other rules and stipulations apply.

This is a fantastic opportunity for well qualified buyers to enter the home ownership market, but time is quickly passing. To see if you meet all the qualifications of the program, contact me at PensacolaRealEstateExperts@gmail.com.

A foreclosure home can make for a great investment. Here are a few items to consider when shopping within this special market:

1. The process is usually faster and less challenging than the short-sale process, and, in many cases, foreclosures offer a better deal than do short-sales.

2. Foreclosures are generally priced very well, many times below market value. Locally, foreclosures in good condition are selling close to asking price and, when multiple offers occur, ABOVE asking price! A home in good condition will often bring multiple offers, so be prepared to pay at least the bank's asking price.

3. Generally, foreclosures must be purchased in "AS-IS" condition. However, the buyer has the right to inspect, and, if repairs are needed, may walk away without penalty.

4. Most banks WILL NOT make repairs, even for minor issues. Depending on the buyer's loan program, this can kill a deal, especially with government backed programs such as FHA, VA and Rural Development. However, there are loan programs available that allow repairs to be completed immediately after closing.

If a buyer is realistic with his or her offer terms and works with an agent who understands the foreclosure process, a foreclosure may offer a buyer the opportunity to purchase a great home for less than current market prices.