According to the Athens MLS, our sales are down 21% - 517 less homes sold this year than last year for the same period (through November 15). The prices are down almost 32% which confirms what we've been seeing... more demand for the lower priced homes. And, the good news for buyers is that there are plenty of sellers that need to sell their homes. We have all time low interest rates, the $8,000 first time buyer credit and a great inventory of homes... it's the perfect time to buy your first home.
I have been working with Bank of America to negotiate short sales on several properties. In the past, I have gotten frustrated by the fact that I couldn't get an answer when I knew I had submitted everything they needed and worked hard to get the best offer possible.
They have taken 3-4 months to approve a short sale and in the meantime, I have lost many buyers that submitted offers thinking they would be able to close in 30-45 days. I guess the lack of communication has been the hardest thing in working with Bank of America.
However, this week has been different. I received approvals on 2 offers I submitted. both buyers had terminated their offers. I had backup offers on both properties but for less than the accepted offer. I had read on various forums that it would be at least 30 days to get the substitute offer approved. I submitted both and got approval on one of them in 2 days! Yes! I know Bank of America has been completely overloaded with this work but am very hopeful that they are starting a new trend now!
Short sales can be a great option for anyone who is facing foreclosure. It's also a good deal for a buyer that can take a little time to close. And, the banks typically net more than if they put the home in foreclosure. Everybody wins!
Thanks Bank of America!
NAR Frequently Asked Questions
Homebuyer Tax Credit Changes
National Association of REALTORS® Government Affairs Division
500 New Jersey Avenue, NW, Washington DC, 20001
Here are some of the most frequently asked questions on the changes to the Homebuyer Tax Credit
Question: Existing homeowner credit: Must the new house cost more than the old house? Answer: No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit. Question: I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit? Answer: Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement. Question: I am a firsttime homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit? Answer: Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you're within the phaseout range). Question: I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a nonnegotiable price of $825,000. Will I be able to use any of the $6500 tax credit? Answer: No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling. Question: I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests? Answer: Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is "consecutive." As long as he lived in that house for 5 years straight what he did since 3 years doesn't impact eligibility. Question: I am an eligible firsttime homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me? Answer: You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit.
According to MSNBC, the Senate has approved extension of the tax credit for first time homebuyers. This is good news for the real estate industry... and for first time homebuyers. There is a provision for a $6,500 tax credit for repeat buyers. I'm sure we'll hear more when the extension gets final approved.
Today we received a RE/MAX brochure in the mail. It's a very nice mailing with information about investing, short sales and some of the new enhancements on REMAX.COM. REMAX.COM shows over 90% of all listings. And, RE/MAX has the most productive sales force in real estate. But, the thing that I appreciate most is the mention of the Certified Distressed Property Expert designation. RE/MAX has almost 60% of agents with the designation to help owners get a short sale processed most efficiently. If you or someone you knows needs help to avoid foreclosure, call me at 706-296-4395.
With the slower economy, most real estate franchises have cut back on advertising. RE/MAX is continuing to make new TV commercials and this latest mailing shows the corporate offices committment to supporting the RE/MAX agents. This year, there was a mailer for first time homebuyers (don't forget the $8,000 tax credit!) and one about investment opportunities.
 |
|
|
Providing excellent service to buyers and sellers in the Athens GA area.
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
