Helen Oliveri

You have less time than you think to cash in on the federal home buyer tax credit.

Unless legislation extends the deal, you'll have to close escrow by Nov. 30 to take advantage of the maximum $8,000 tax credit available for first time home buyers.

But given the 30 to 45 days -- or longer -- it takes to close escrow -- especially on some distressed properties -- you can't wait until Nov. 30 to buy a home.

"You can't be casual about this right now. You have to on it. Committed, very serious, with lots of time available," said Jean Manner Schwimmer, a real estate agent with Coldwell Banker Gay Dales in Salinas area.

The federal tax credit for 2009 is only for first-time home buyers -- people who've had no ownership interest in a home in the three years prior to the purchase. Single and head of household tax payers can earn no more than $75,000. There's a $150,000 ceiling for married couples filing a joint return.

A tax credit is a big deal because, unlike a tax deduction which reduces your taxable income, a tax credit reduces the taxes you owe, dollar-for-dollar.

This home buyer tax credit can also net you a rebate if the credit is more than the taxes you owe. The rebate is the difference. If you owe no taxes, your rebate can be a maximum $8,000.

It's also a big deal because it's spurred home sales and that's helped boost the economy.

The California Association of Realtors says nearly 40 percent of first-time home buyers credit the tax credit with prompting them to buy a home this year.

(California's own tax credit is already over budget.)

To cash in on the credit you should already have signed a contract and be in escrow now or on the verge of doing so any day now.

While buyers should never rush into the decision to buy a home, if the tax credit is a motivating factor, there is a deadline.

"You need to be pre-approved for a mortgage. We are down to just two months and its hard to get an escrow in less than 30 days," said Stephen R. Pearson, a real estate agent with Century 21 Classic Properties in Watsonville.

Pre-approval gives buyers an edge in a market that includes investors looking for bargains. A pre-approved mortgage gives the holder proof he or she has money in the pipeline to actually buy a home.

Kim DiBenedetto, president of the Monterey County Association of Realtors says, given that many properties are distressed properties buyers should be working with both a local real estate agent, mortgage broker or loan officer and title and escrow company familiar with the details of the fractured housing market.

She said FHA loans, for example, come with more requirements mandating that the home is in good condition.

"Make sure the utilities are on. I had a listing go into escrow and the utilities were on. By the time the inspection was due the owner had let the bills go and the utilities weren't on. That costs time. One day can make a huge difference," said DiBenedetto, also a real estate agent with Coldwell Banker Del Monte Realty in Carmel.

With fall comes travel bargain rates but don't take a vacation just yet. Stay available for escrow details that can crop up in a moment's notice.

Serious buyers need to be flexible with what they want in a home and have their nose to the listings to be ready to pounce when the right property comes along.

"Your really need to be Johnny-on-the-spot when listings come up. The internet makes this easy, but you have to be available and watching," said Pearson.

Those already under contract, likewise, should be imminently available.

"If you are in escrow, be involved and aware of the time frame element. Deadlines are my responsibility and if we are approaching some contingency I'm going to inform the client," said Schwimmer.

B. Perkins

Winter is right around the corner and in honor of Energy Awareness Month, the National Association of the Remodeling Industry (NARI) recommends making energy-efficient upgrades as a way to prepare for the season, and many remodelers are offering weatherization programs to help them reduce energy costs. Mark of Excellence Remodeling is one such remodeling company that recently introduced a weatherization program.

"The programs are funded by both state and federal governments, and the purpose is to raise consumer awareness of the types of upgrades that are needed to make homes more energy efficient," said Neil Parsons, vice president of sales and marketing for Mark of Excellence Remodeling, West Long Branch (NJ).

Weatherization is a term to describe various improvements made to buildings and homes to optimize energy efficiency. According to the U.S. Department of Energy (DOE), on average, weatherization reduces heating bills by 32 percent and overall energy bills by about $350 per year at current prices. Through an evaluation known as an energy audit, homeowners are given a detailed report identifying problem areas in the home. Typical energy improvements include air sealing, insulation, ventilation systems or installation of green appliances approved by Energy Star. "As consumers become aware that our energy resources are depleting and costs are rising with each year, energy efficiency is becoming a relevant topic in home improvement projects," said William E. Carter, president of NARI.

Even though each state provides slightly different programs with a variation of incentives, all of them provide the same benefits to homeowners. "Homeowners notice their return on investment instantly after making energy upgrades in their utility bills. The other benefits are the rebates, the increase in home value from making the improvements, increased performance and durability and helping out the planet by conserving energy for future generations," added Parsons. It's important to make upgrades now because soon most of the country will be entering the time of year when most of a home's energy consumption occurs. The DOE estimates that 56 percent of the energy use in a typical U.S. home comes from heating and cooling, making it the largest energy expense for most homes.

"Most believe that remodelers are busiest during the summer, but in actuality, the busiest time is during the fall when temperatures drop and homeowners start to feel drafts in their homes and are worried about heating costs," explained Parson. Another time factor is the program deadlines. Many state programs last until the end of the year, and energy-efficient improvements must be made within the specified time period to be eligible for rebates. To learn more about your state weatherization programs, visit dsireusa.org/. However, Parsons doesn't think any of the weatherization programs will be going away for good. "Most likely, programs will be extended or modified after deadlines as the government continues to put a high premium on increasing energy efficiency," he said, adding that if homeowners are considering an energy upgrade, there is no better time than now. "Homeowners who are considering this should seek out a certified contractor that you can trust to give you sound advice about making your home more efficient." If you are planning a home remodel, NARI Remodelers can help homeowners find contractors who will take care of the entire remodeling process. Log on to www.nariremodelers.com to find a remodeler in your area. For green remodeling information, please visit www.greenremodeling.org.

P. Mosca

Though some economic analysts are warning that the housing market's rebound will slow down as the weather turns colder, this week's numbers show no hints of that.

In fact, they're actually pretty warm.

Start with house prices. The Clear Capital Home Data Index, which tracks price movements in thousands of neighborhoods and ZIP codes across the country, reported a 6.3 percent gain last week for the period covering August 27th through September 25th.

The latest index found prices up for the first time since 2006 in two of the hardest-hit real estate markets - Riverside-San Bernadino, California, and Orlando, Florida. Though the gains weren't big - just 1.2 percent in Orlando, and half a percentage point in Riverside-San Bernadino - just the fact that they're finally bottoming out has got to be good news for property owners and sellers there.

Baltimore also saw its first positive price change in seven quarters on the Clear Capital Index, while other major markets continued their multi-quarter strings of gains.

Dallas-Ft. Worth, for example, saw prices rise by an average 2.3 percent. Miami-Ft. Lauderdale was up 3.4 percent, Houston 3.1 percent and even New York, which has had a tough time recently in Manhattan, posted a 1.6 percent jump.

Meanwhile, the mortgage market continued to provide plenty of financing fuel for home buyers looking to use the $8,000 tax credit before it possibly disappears at the end of November.

The Mortgage Bankers Association says average thirty year rates dropped again last week in its national survey -- hitting 4.89 percent -- the lowest they've been since May.

Fifteen year fixed rates decreased to just 4.3 percent, which is the lowest ever recorded in the mortgage association's survey history.

Not surprisingly, record low rates are pulling in massive numbers of new loan applications. Overall applications were up by 16 percent last week. Loans to people planning to buy homes jumped by 13 percent, while refinancing applications soared by 18 percent.

And here's a truly amazing statistic: New mortgage applications to buy houses using FHA loans were 52 percent higher last week than they were a year ago!

With mortgages flying out of banks with interest rates in the mid -to -upper four percent range, you don't spend a whole lot of time worrying about a slowdown in the real estate rebound.

Unless, of course, Congress doesn't extend the $8,000 tax credit into next year.

K. Harney

Quick passage by the House last week of a bill extending the $8,000 home buyer tax credit next year for military, diplomatic and intelligence personnel serving overseas increases the odds that Congress will agree to an extension, maybe even an expansion, of the entire credit program well into 2010.

The White House is also signaling that it sees the overall tax credit program -- currently set to expire November 30 -- as an important element in cutting the unemployment rolls and stimulating new jobs next year.

After an economic policy strategy meeting last week in the Oval Office involving President Obama, House Speaker Nancy Pelosi and Senate Majority Leader Harry Reid, congressional aides said Democrats generally support an extension of the housing credit.

Reid already has made clear he wants an extension. He is co-sponsoring a Senate bill that would do so for six months.

Congressman Charles Rangel, chairman of the tax-writing House Ways and Means Committee, sponsored the one-year extension of the credit for military and other personnel serving overseas, and is reported by aides as favoring an extension for the entire program.

The White House has not publicly committed to an extension, but has confirmed that the President is seriously examining that option.

An unexpected development that emerged following last week's White House meeting was the possibility of opening up the credit to a broader group of buyers next year - people who sell their current homes and buy a replacement home.

Though details were scanty, Capitol Hill sources said one option on the table would be to provide a tax credit -- most likely at the $8,000 level -- to replacement home buyers whose incomes do not exceed some limit.

The current credit phases out for single taxpayers with incomes above $75,000, and married purchasers earning $150,000.

A politically sensitive issue hovering over the entire debate on extending the housing tax credit is its cost - what it would add to the federal budgetary deficit. Mark Zandi, chief economist of Moody's Economy.com, estimates that widening the credit to all buyers through next August could cost the government upwards of $30 billion.

Rangel's 12-month extension of the credit for service personnel is estimated to cost more than $300 million, but it's mainly being paid for through an increase in penalties levied by the IRS on taxpayers who fail to file corporate or partnership returns.

The New York Times reported that one possible solution to the cost problem would be to divert money not yet spent out of 2009's $800 billion stimulus legislation.

K. Harney

All of us have something in common with our homes. Sure, style, design, and location are at the top of the list, but how about age? As we age, buyers, especially the baby boomer generation, are looking to transform their homes into a place that they can stay in for as long as possible or they're hoping to find one that's already equipped for them to age-in-place. So how old your home and you are, are reason to give some thought to if your home needs age-appropriate adaptation in order for you to be most comfortable. And, in doing so, you may actually make your home more valuable to a wider audience of buyers, should you ever sell it.

According to the National Homebuilders Association, making a home suitable for the golden years is economical sound. The baby boomer generation (77 million people) makes up 28 percent of the U.S. population. Assisted living for this generation can cost more than $60-thousand per year, not counting moving expenses.

That's pretty pricey. So, if you've taken some steps to make your home an age-in-place sanctuary, then make sure you highlight those renovations if you ever list your home on the market. If you haven't made any revisions, perhaps, some minor adaptations can make your home stand out and more comfortable for any age.

"People who are middle-aged and younger are also opting to use products that are safer because they see the benefits. They are choosing to use tiles that have textures that prevent slippage. They're looking for ways to make the home look aesthetically pleasing and assist them with moving comfortably into their later years," says Steve Walton, Senior Design Consultant for Marrokal Design & Remodeling.

The most common renovations involve widening hallways, making bathrooms more expansive, opening up showers, adding railings in bathrooms and around the house so that wheelchairs and walkers can easily fit. "Hallways are generally three feet which is wide enough to get a wheelchair through, but the door openings in a standard home are about two-foot-six or 30 inches wide. So those need to be widened to a minimum of two-foot-ten or three foot which is a standard width," says Walton.

Larger showers are popular and a good investment. "The universal design of a walk-in shower has mass appeal because of its convenience and easy access for all. "If you have the space, that's best; if not, then the shower has to be remodeled so that the doors are frameless. That way, there's no frame or track that sticks up and prevents the wheelchair from rolling over it," says Walton.

Textured, no-slip tiles are becoming more popular, regardless of age. Filling in sunken living rooms so that there's no change from one room to the next is also commonly requested by contractors. Often adapting a home for an aging-in-place family is a tiered process. Homeowners start with a few things and then gradually have work done over the years. Inside the home, safety is what prompts many to take action, things like adding lighting at the bottom of the stairwell can certainly help the elderly but it's also added value for any homeowner no matter the age. Outside the home there can also be mass appeal by removing steps and adding a gradual slope; it allows easy access for wheelchairs and baby carriages. Here's another good tip that often more modern homes already have -- levers instead of doorknobs. They are easier to open whether someone is elderly or has an injury such as a broken arm.

Yet another benefit for homeowners is that some aging-in-place remodels are considered medically necessary tax deductions. Check with your tax accountant to learn more.

P. Chongchua