Christina Dowell Realtor, Central MA

Source: www.realtor.com

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed new legislation that:

• Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
• Expands the credit to grant a $6,500 credit to current home owners purchasing a new or existing home between November 6, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers become part of the American dream.

Who Qualifies for the Extended Credit?

• First-time home buyers who purchase homes between November 6, 2009 and April 30, 2010.
  
• Current home owners purchasing a home between November 6, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

To qualify as a "first-time home buyer" the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer's Credit Amount Determined?

Each home buyer's tax credit is determined by tow additional factors:

1. The price of the home.
2. The buyer's income.

Price

Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income

Under the Extended Home Buyer Tax Credit, which is effective on November 6, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000-may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits.

If the Buyer(s)' Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income-over $145,000 for singles and over $245,000 for couples are not eligible for the credit.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

Will the Tax Credit Need to Be Repaid?

No. The buyer does not need to repay the tax credit, if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount credit will be recouped on the sale.

Hot Air Balloon Festival! August 8, 2009

Hudson Elks 99 Park St Hudson, MA 01749

6:00 am Lift-off - Hot air balloons will lift off from field behind the Hudson Elks. Come down and watch the take-off!

Beginning at 2:00 pm - Family Events - Vendors, entertainment and field events for the kids.

There will be live music all afternoon featuring the McMurphys from 2-5:30, the Country Kickers from 5:30-6 pm and the Bruce Marshall Group from 6-9 pm! Hamburgers, hot dogs, ice cream, fried dough, and cold drinks will be available.

6:00 pm - Lift-off - Approximate time for evening balloon lift-off from the pavilion field.

Come down and watch the hot air balloons lift off! Music, food and beverages will continue until early evening.

Dusk - Balloon Glow - The pilots will ignite their burners as night is falling creating an incandescent glow of the tethered balloons in the night sky while live music continues with the Bruce Marshall Group.

Morning Admission: Adults $2.00 Children $1.00 (under age 2 Free)

Afternoon Admission: Adults $4.00 Children $2.00, (under age 2 Free) Come for the morning lift-off and Adult paid admissions will get a coupon for $1.00 off afternoon admission price

Finally like Boston, Worcester is doing a Restaurant Week! August 3-14 dine out at local participating restaurants at a substantial discount. For $20.09 per person (plus tax and gratuity), you receive a three course meal. Most restaurants will have a limited set menu from which you can chose. However, it is still an excellent way to explore new restaurants and support the local economy.

For more information, visit http://www.worcesterrestaurantweek.com/

It's time for the Elm Park Summer Concert Series!

Sponsored by Park Spirit of Worcester, Inc., this non-profit organization, promotes citizen and community involvement in the preservation and growth of Worcester’s parks and play areas. So grab a blanket and head over for some sweet (and free!) tunes at dusk. To learn more visit www.parkspirit.org.

Schedule:

Beatles For Sale Thursday, July 9, 6:30-8 p.m.

Dennis Brennan Thursday, July 16, 6:30-8 p.m.

The Valves Thursday, July 23, 6:30-8 p.m.

Worcester Jazz Orchestra Thursday, July 30, 6:30-8 p.m.

The Dinosaurs Plus: Art In The Park Opening Thursday, August 6, 6:30-8 p.m.

Red Riders Thursday, August 13, 6:30-8 p.m.

Directions: Elm Park is located between Highland Street and Park Avenue in Worcester. Free street parking.

The Boston Globe had an interesting article on how appraisals can hold up or ruin some deals, mainly because of the bank owned properties being sold much lower than market rate. It’s an issue all Realtors and buyers are facing right now.

What’s the take away from all this? Work with an experienced Realtor (whether you are a buyer or a seller) to help navigate through these muddy market waters…

Source: Appraisal discrepancies hold up some sales By Jenifer B. McKim Globe Staff / June 10, 2009

Property appraisals, once a routine part of a real estate deal, are complicating home sales as the slumping market makes it difficult for appraisers to pinpoint values.

Surprising buyers and sellers, appraisers increasingly are setting home values lower than an agreed upon sales price or the amount required for a homeowner to refinance. The discrepancies are, in part, being caused by a paucity of recent home sales - making it challenging to properly compare prices - and sales of foreclosed properties, which can disproportionately depress neighborhood values.

As a result, sales and mortgage refinances are increasingly in danger of falling through, according to real estate agents and others in the industry.

"If you can't get a reasonable appraisal, it can tank the transaction," said Barry Nystedt, owner of Buyer Brokerage Realty in Wellesley. "It's very difficult when there are no direct comparable properties to set the value. It involves a lot of interpretation."

Barbara Shea McDonald, a real estate agent in Westwood, said the uncertainty is adding drama to deals in a market already tenuous due to nervous buyers and tight financing. "We hold our breath hoping that the appraisal will come out OK," she said.

In Chicopee, real estate agent Ray Authier said he recently had a deal almost fall through after the appraisal came in $4,000 below the agreed upon price of $165,000. Eventually, the buyer and seller agreed to split the difference, he said. "If it is worth $161,000, it's worth $165,000," Authier said "We did put it together, but it caused both stress and heartache to both parties. . . . We are sweating out all the appraisals right now."

Jon Treon, a broker for Re/Max Executive Realty in Natick, said two of his pending sales were recently challenged because the appraisals came in about $10,000 lower than the agreed upon price, a last-minute problem he hasn't seen in more than a decade.

In one case, an appraiser valued a Natick home at $11,000 less than the $341,000 price agreed upon by the seller and buyer because an identical property in the duplex sold for $330,000 the previous year. Treon said he understood the appraiser's rationale, but the decision put at risk a sale that had a willing buyer and seller. "Buyers are the ones that determine value, that is how real estate works," Treon said. "When you are talking a few percentage points it is ridiculous."

Appraisers say they are now being required to provide lenders with more comparable sales and detail the local market history.

When there are no comparable sales, appraisers examine recent sales of bank-owned properties, something that can drag down the values in a neighborhood, said Stephen Sousa, executive president of the Massachusetts Board of Real Estate Appraisers. In towns with slow sales but fewer foreclosures, he said, appraisers need to take into account listings that have been sitting on the market. "There is a lot more attention being paid to appraisals, and that means everyone is looking at these things more conservatively than before," Sousa said.

Adding to the pressure, new regulations governing mortgage giants Fannie Mae and Freddie Mac that took effect in May give appraisers freedom to set values without influence from mortgage brokers and loan originators. The regulations, meant to create a firewall between appraisers and those who order loans, prohibit brokers and other loan originators from ordering appraisals. Instead, loan originators are required to go through a third party, such as an appraisal management company, to get the work done. The new rules are intended to prevent the inflated appraisals that contributed to the national housing crisis. But some real estate industry officials worry the rules will push housing prices even lower.

For instance, Sousa said, appraisers hired from a pool of workers now may travel further distances to do their work, often working in unfamiliar neighborhoods. Also, he said, a prohibition on lenders and mortgage brokers discussing a property's value prevents simple negotiations to reconcile prices differences of a few thousand dollars. "A lot of deals that are squeaky close to working are now falling apart because you can't have that conversation anymore," Sousa said.

Ronn Huth, president of Buyer's Choice Realty in Wenham, said buyers prefer conservative appraisals, he also worries that appraisers hired through a third party might not be familiar with the regions they are covering. In addition, appraisers are wary about what their figures will look like a year from now if property values continue to decline, said Peter Milewski, an official at MassHousing, the state's affordable housing bank. Appraisers struggle to balance the current value of a house with what it could be next year, he said. "People are very concerned about having their work reviewed in the harsh light of time," he said. Richard Goulet, owner of The Appraisers Group in Belmont, agreed that appraisers are struggling to pinpoint home values in this volatile market. "Appraisal is not an exact science," Goulet said. "Often times values can be a moving target."