Kathleen Vetrano Prince William & Fairfax Real Estate

Once again we are seeing multiple offers being placed on homes. One of the listed homes within my office had 20 offers last week. With the recent influx of Bank Owned Homes or Foreclosures coupled with Short Sales in the Prince William County and surrounding areas, prices plummeted and adjusted over the last few years. Many Buyers have decided to jump into the market and purchase their home or investment.

It is not a Seller's market, it is not a Buyer's market, it is a Bank's market. If you are searching for that "great deal" and find it, it is what every other Buyer in that price range and area also sees. Many of these Buyers will also come to the same conclusion.

In Manassas, Woodbridge, Gainesville, Haymarket and all of Prince William County the January 2009 statistical report shows twice as many homes sold and 1/3 the inventory compared to the January 2008 report from MRIS. Many of the sales being the bank owned homes that have gone through the foreclosure process. These homes have implied value to the Buyer.

The more things change the more they stay the same. Or what goes around comes around. We are back to Buyers being up against competing and multiple offers once again. The circumstances are different. The home prices are drastically reduced and for the first time in a very long time first time Buyers are able to enter the market and purchase a home. FHA and VA loans now make up a large and significantly increased percentage of the loans.

How do you approach this market when buying a home? With a lot of research and knowledge. Knowing the Bank owned property sale process, the addenda, the multiple offer procedure being used and strategies for getting your offer accepted. Knowing your options for possibly purchasing a home that is a "Short Sale." Short Sales also present wonderful buying opportunities under the right circumstances. As long as you are aware of how the Short Sale is being managed and you are comfortable with the process and procedure. Let's not forget the Traditional Sale. If they are priced for this market they will also present good opportunities. Don't rule them out. Just know the market and have your strategy planned.

Kathleen Exprtise Matters

www.FairfaxRealEstateHomes.com

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I have received many calls the past few weeks about the American Recovery and Reinvestment Act. The question asked most often is “How will the stimulus package affect me? Am I able to receive any direct benefits from this stimulus package?”

With a Tax Credit of $8,000 to qualified First Time Homeowners, a Changed Real Estate Market in Prince William and Fairfax Counties that includes Bank Owned Homes, Foreclosures, Short Sales all discounted heavily and the inventory of homes for sale…It is the Perfect Storm with buyers being the beneficiary.

The Stimulus Package was signed into law on Tuesday February 17, 2009 as the American Recovery and Reinvestment Act of 2009. The Stimulous Package offers a generous $8000 Tax Credit available to first time homebuyers. Unlike the previuos credit of last year, the tax credit has been reformed and the new credit does not have to be repaid. Last years tax credit offered $7500 to first time homebuyers that had to be repaid over 15 years. This is a big change with the new credit now available...an icreased amount and no repayment. However, you must be aware of the guidelines.

What are the specifics of the tax credit?

• First-time buyers can claim a credit worth $8,000 - or 10% of the home’s value, whichever is less - on their 2008 or 2009 taxes
• You must be a first time homebuyer or someone who hasn’t owned a home in three years. •
• You do not have to pay the money back if you live in the home for three years.
• Buyers must make less than $75,000 for singles or $150,000 for couples. A partial credit may be available for Higher-income buyers.
• The home must be purchased between Jan. 1, 2009 and Nov. 30, 2009.
• Participating in the tax credit program is easy. You claim the tax credit on your federal income tax return.

As always you should consult your Tax Accountant and Attorney for how this $8000 credit could help you and the specifics of the bill. You can also find additional information about this home credit at WhiteHouse.gov

American Recovery and Reinvestment Act

Sec. 1006

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Real Estate Short Sales in Prince William County Virginia and Fairfax County Virginia

Home owners might have an option when mortgage payments become difficult or they are facing foreclosure. It is known as a Short Sale. It is called a short sale because the money owed on the house is less than or “short” of what is offered and paid to the bank or mortgage holder at settlement.

Short Sales in Prince William County Virginia and in Fairfax County have been on the rise recently along with the number of foreclosures. It in many ways is a pre-foreclosure sale.

In real estate the bank must agree to accept the Short Sale for settlement to take place. The lender or mortgage holder can accept or decline the offer presented to them. Listing a house and negotiating a short sale with the mortgage holder may actually be an option to consider. Yes there are many Short Sales that do receive approval.

All situations and circumstances are different. If you would like to get more information about the Short Sale Process or if you think this might be an option you would like to consider please call Kathleen direct at 703-850-9663. We will provide you with a free and confidential consultation in addition to providing you with other possible options that are available to you or someone you know who might be facing foreclosure.