Camille O'Donnell

Is FEAR keeping you on the fence about buying a home? Realtors hope a stimulus offer from Uncle Sam will help you make the move. But, as I talk to other agents it seems they're starting to notice an increased interest.

What is holding people back?
A big fear. Fear of losing their jobs, fear of the economy in general, fear of what's going on.

FEAR Is the perfect emotion!
Politicians use it all the time. In fact, I have seen special interest groups use it to the "max" to invoke a fear reaction to get an exaggerated response. I am not saying the government is using fear to prevent people from buying homes, but I am saying fear can move mountains.

Is the government helping the housing industry?
Yes, I think now, they are trying to stimulate sales for the first time homebuyer. But, it can be so confusing and people who bought before Jan. 1, 2009 are sounding off as being resentful. But they really shouldn't, because if the stimulus wasn't in place at all, their home values could possibly be falling even further. The $8000 credit helps stabilize the home values.

So who actually qualifies for the $8,000 tax credit?
The government is giving first time home buyers or people who haven't owned a home in three years, $8,000 if they buy between January 1 and December 1 of 2009. It certainly does give hope for what's happening in the housing market. It really would have helped if it would have applied to all home buyers.

Here's how the tax credit works:
1) The home you buy has to be your primary residence, it can't be a second home
2) It pays $8,000 or 10% of the purchase price, whatever is lower. If you buy a $65,000 home, you'd get $6,500.
3) The credit pays less if you are a single buyer who makes $75,000 or married buyers who make $150,000 or more.
4) You don't have to pay it back if you live there for three years or more.

Did you know you can amend this year's taxes?
If you already did your taxes and let's say you bought the home today you can go back and file an amended tax return and get the money now.

Example please..
If you owe $3,000 and buy a house, you'd get $5,000 back. If you buy a house and owe nothing on your taxes, you'd get the full amount of money.

No Down payment credit
Can't be used as a down payment because you can't get it at the closing table but you certainly can get it very soon after purchasing the home.

This is the time to buy, with historically low interest rates.

*Building Your Own, Pre-fab and Mobile Homes
If you're going with a pre-fab, or Design home type of purchase, builders say to qualify, you have to be living in the home by December 1, 2009. Mobile homes have to be on a piece of property, not in a park. If you want to build a home, you can get the tax credit, but you have to close on the sale of the home with your contractor by December 1, 2009. If you own land and are acting as a general contractor, I believe you have to be living in the home by Dec. 1, 2009. *

*Check with your accountant and state laws for building your own,to get the credit.

Guess what? I became a licensed real estate broker!! After several months and lots of expense, I have officially passed the Maryland and National broker test, said good bye to my former broker, opened up my escrow trust account, transferred my membership with the appropriate agencies, ordered my signs, stationary, cards and still have more to do. So, don't go looking for my website just yet, I am still working on that. Here's my other blog.

Why Did I Decide to Become a Broker? I love the independence, I love being my own boss, the challenge, I love keeping my own pace, making my own decisions and most of all I get to keep all of my commission. I realize there will be times, when I will have to stay in touch with my attorney for guidance, and there will be issues that will be complex. But we have a cornucopia of resources to turn to and my online friends at ActiveRain are incredibly knowledgeable. Thanks Guys.

What Was I Thinking? People say I am brave to make a change in this market and others seem to tilt their head and give me that, "Are you kidding look?" I think what people don't know about me, is where I have been, what I have mastered and accomplished and what I am made of.

The Making of a Broker Today It does take confidence, stability, conscientiousness and strong work ethics to become your own broker and boss. In fact, most entrepreneurs are very hard on themselves, work harder and longer hours and thrive in seeking new ventures.

Business Experience? I have had my own business in the past; so I do have some knowledge and experience of what it is like swimming in the big sea as a goldfish amongst sharks, jellyfish, thieves and crooks. We are in volatile times, and my theory is, if I make it as a broker and can still be standing five years from now- I will have beat the odds!!

Do You Plan to Hire Agents? Ahhhh, I have seen how other brokerages are set up and I am not keen on the responsibilities and risks involved when agencies have many agents. So, for now I am staying small, I really don't want to take the risks. Although, I am recruiting a couple of my family members to acquire their RE license, so I can offer dual agency. Besides, there are so many benefits to being your own broker, even if it's for your own personal real estate investments.

Where's Your Office? For now, I have renovated a room in my house as my office in Queenstown, Md. I have a temporary sign designating my agency and can't wait to see the sandblasted sign I am having made. One day, I will move my office to a commercial location, but there are advantages to working at home. And who knows, since the big change in real estate transferred over to the internet, most customers and clients hardly ever go into a real estate office. Everything is done online and I am very comfortable and tech savvy. But, just in case, I will have a satellite office if I need to meet clients for whatever reason.

Well, gotta go, I have a settlement in ten days and I am busy working with my buyers on the eastern shore and across the Bay Bridge. Please pass on any comments, suggestions, lessons to be learned and anything else.

Where are we going in real estate? I have a number of buyers and sellers who see things so different. And of course, each and everyone of them have their own justifications.

For instance, the sellers wholeheatedly believe the market is going to spike this Spring and prices will remain stable (God Bless them). So they are optimistic and believe we need to be patient, stay the track and talk up the good talk, so to speak.

Here is what has been happening: Sellers will withhold listings from the market or cancel listings that don't sell within 90 days. If they are smart, they will adjust their listing prices and have a good agent that can persuade them.

Still others will: 1. Ask themselves if they are better off selling their homes on a short sale, absorbing the hit to their credit reports and becoming renters for a few years. Many sellers will turn to a short sale or walk away than try to directly deal with mortgage lenders. 2. Sellers who are unwilling to take a hit on their sales prices will put their homes on the market as rentals


What concerns me is the hard data, the unemployment rate reflecting the recession of the 1980's and the bank trouble reflecting the depression of the 1930's. Going alittle big closer to home, our sold stats for Queen Anne's County are down almost by half. Our inventory right now is climbing, the closer we get to the warm weather(which I cannot wait for) the residential properties on the market for sale or rent hover around 700 plus.

And we have some 300 real estate agents who are registered with the Bay Area Association of Realtors and if you ask any of them (agents) they will tell you it is crazy market. Yes, I know we are supposed to say, "Everything is great and Unbelieveable," to avoid the downtrodden and rotten news about the market. That notion of accentuating the positive does work, but what happens when reality sits in?

Please do not get me wrong: I think this is a fantastic market and there are some really killer deals out there. But we are dealing with sellers who don't want to be realistic on setting their selling prices, buyers who think the market is a free for all and writing ridiculous low ball offers.

Then, you have the banks who say they want to sell their homes but, still don't want to budge on the listing prices and think they can get 90 cents on the dollar. You can't help but, ask yourself, "Do the banks really want to sell and do they understand what is going on in the market?" You would think the banks would jump at a reasonable offer and avoid the frog leaping, loop-jumping scenarios.

Okay buyers, yes it is a wonderful time, on the bright side, employed home buyers with good credit will find 2009 is an excellent time to buy. And of course, cash buyers will win every time over buyers who need financing.

Please do your homework and realize most properties have already been adjusted for the 20% reduction over the last year, the experts claim. Of course, it's a buyer's market and many think the prices are going to continue to drop, so they wait, and wait and wait some more.

Well, Mr. "Waiting" Buyer you can just wait, and hope that property does not get snatched up or you may be doomed watching the interest rate go up. And guess what? Not only may the price drop on the home, but if the interest rate goes up you will be paying more for that home. You see, if you would buy now while the interest rates are so low, you will save so much more instead of waiting for the listing price to drop. So don't wait, you're in control. Write your offer contingent upon the property appraising at the agreed upon sales price and on obtaining your loan.

Call me at 443-786-0200, I would be happy to sit down with you and crunch the numbers.

Obama's Recovery Housing Bill is full of help, or not???
To help you siphon through the legal jargon of the housing recovery aspects of the bill, I thought as a realtor, I would try to spell out exactly what that means for the home buyers or homeowners. Please let me know if you feel powerless or are you still confused over what you get out of this bill or if it hurts the responsible who lived within their means?

38% or MORE ON YOUR MORTGAGE

Get out your IRS tax statements or your W2's and take a pen to paper. To qualify for a benefit to lower your monthly payments, the bills requires that you have to be spending at least 38% of your monthly income on your mortgage. Makes you wonder if homeowners who become desperate will quit their jobs so they can qualify. I guess, that would work, as long as their spouse has a job. I mean this could make a difference if you walk. Now this doesn't apply to second homes or investment homes.

The way this works is you and me and your mortgage lender will help divvy up the costs of lowering your payments to 31% of your income. Can you imagine....that means you could have an interest rates as low as 2%. Or you may get the principal reduced. Plus, if you pay your mortgage on time, US taxpayers will pay off as much as $1,000 of your loan each year for five years. If you happen to have a mortgage payment less than 38% of their income - you my friend are out of luck.

REVERSE MORTGAGE LIMITS RAISED

If you are trying to help your parents or any senior citizen feeling the pinch , you may want to explore the reverse mortgage option, The limits for reverse mortgages backed by the Federal Housing Administration have been raised to $625,000 from $417,000.

HOUSING COLLAPSE WIPED OUT EQUITY

There maybe help for you. If you have been paying your mortgage, but because of the refi market and housing collapse that has wiped out your equity, you may benefit from the new refi assistance. So, the qualifications for the government to help you refinance your mortgage is: if you owe between 80% and 105% of your home's value. The downside is: this will only help those with mortgages owned by Fannie Mae or Freddie Mac get cut in. And it excludes many homeowners in Florida, Nevada, Arizona and California. This really stinks.

$8,000 TAX CREDIT or Really?

This one is an eyeopener or another government tease. You know how the government has been flirting with the $8000 tax credit for new home buyers, well the truth is: Anyone who hasn't owned a home for at least three years is entitled to a helpful tax credit, for up to 10% of the cost, up to $8,000, Did you get that: UP TO 10%. So for many of you who thought you would be getting the $8,000 tax credtit be careful and read the small print. And of course, you have to buy a home this year.
The good parts is it is a refundable credit - so if you don't pay $8,000 in taxes, or indeed any taxes at all, you get the rest as a check. Now, if you make a high income-you again are out of luck - the credit phases out above a modified adjusted gross income of $75,000 for one person.

CONFORMING LOAN LIMITS RAISED

The government just raised the "conforming loan" limits to $729,750 from $625,500, yea for those that can buy those expensive properties AND can qualify.



Now, I am not a mortgage banker or lender, just doing my homework. However, please comment, if you have additional information to the consumers that could help alleviate any concerns.

The joy is here! Thank you Active Rain and the members who showed up at the Annapolis gathering on the 22nd at Famous Daves! You see, I buried my mother on Dec. 19th in New Mexico; after her long suffering with Alzheimer's. Many of you know I traveled to Dubai this past summer to bring her back to the US. She was visiting my sister in the middle east. It has been hard. but here's how my return to Maryland started last weekend. I flew home on the 21st and waiting for me via email was an Active Rain invite gathering from Margaret Romeand Pat Hommel. I hesitated for a bit, but something edged me to get out of bed despite my mourning to get myself dressed, and cover up for a cold brisk Dec. morning.

As I crossed the Bay Bridge I thought to myself, just turn around as the tears streamed down my cheeks. But somehow, I ended up at Famous Daves. To my surprise, I walked in and instantly was welcomed by some of the greatest AR members in the MD/VA market. Margaret Rome made me so welcome by introducing me one by one andwithout a hitch I was conversing about life, death, mothers, real estate, books, and shopping.

The thoughtfulness and consideration that shadowed over me was so warm and welcoming. I knew why I was there, I felt the camaraderie, I felt the empathy and I felt friendship especially during this difficult time for me. Yes, i could have stayed home, but I believe an angel put wings on me and whisked me over to be amongst other AR angels. Call me strange, but I do believe in Angels, and I needed the fondness of my new friends. My emotions were charged and fueled as I looked around the table, for a moment I felt the spirit of Christmas -they kept me smiling and I found myself bubbly and a sense of peace was evident. So, even though I am missing my mom terribly, I know I can always count on my new online AR friends. Thank you, thank you and here's wishing you all a Happy and safe New Year!

More Clips about our Annapolis gathering on the 22nd.

PS. CONGRATUALTIONS TO AUTHOR AND AR MEMBER MARGARET ROME FOR MAKING THE TOP TEN BOOK LIST on Trulia.com. Her book is titled: