Lara O'Keefe (Hunter's Creek, Melissa)

Finally some good news for the housing industry! The economic stimulus bill passed and is awaiting President Obama's signature on Tuesday, February 17^th.

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.

The credit is refundable, meaning tax filers see a refund of the full $8,000 even if their total tax bill was less than that amount.

To qualify for the credit, the purchase must be made between Jan. 1, 2009 and Nov. 30, 2009. Buyers may not have owned a home for the past three years to qualify as "first time" buyer. They must also live in the house for at least three years, or they will be obligated to pay back the credit.

Additionally, there are income restrictions: To qualify, buyers must make less than $75,000 for singles or $150,000 for couples.

Applying for the credit will be easy. Just claim it on your tax return. No other forms or papers have to be filed.

The $8,000 credit will bring an additional 300,000 new homebuyers into the market, according to estimates by Lawrence Yun, chief economist for the National Association of Realtors.

The credit could also create a domino effect because each first-time homebuyer sale will lead to two more trade-up transactions down the line. Sellers who were waiting to sell their old home to trade up may now have buyers for their old home.

Many may look at the tax credit as a discount on the home price. A $100,000 purchase effectively becomes a $92,000 one. That can reassure buyers apprehensive about purchasing and then watching prices continue falling.

This package provides a nice nest egg for the early years of homeownership, when unexpected repairs and expenses often crop up. Recipients could also use the money to buy new stuff for their home (a lawnmower, a rug, a sofa, etc) and in that way help stimulate the economy!

For more information please contact Lara O'Keefe at 972.838.9156 or visit Hunter's Creek.

The Lone Star State is the nation's top exporter for the seventh year in a row, according to a new U.S. Department of Commerce report.

Governor Rick Perry commented on the top ranking, attributing the state's success on the exporting front to predictable business regulations and low taxes.

Perry's office released the data that helped Texas secure the top spot; namely the state's 14 percent increase in exports in 2008 over 2007.

Last year, Texas exports totaled $192.14 billion, approximately $23.92 billion more than in 2007.

Among manufactured products, the state's leading export category is chemical manufactures. Other top manufactured exports were computers and electronic products, machinery manufactures, and transportation equipment.

The top five recipients of Texas exports include Mexico, Canada, China, the Netherlands and Brazil.

For more information please contact Lara O'Keefe at 972.838.9156 or visit Hunter's Creek.

Rules of Engagement-Professional Courtesy

1. Return phone calls quickly or within the same business day.
2. Be polite and courteous to your fellow professionals.
3. When leaving a voice mail say who you are, what the message is about, and leave phone number (speaking slowly.)
4. Return emails as quickly as possible or same business day latest.
5. Try to refrain from using bad language (cursing.)
6. Be on time to appointments.
7. Be ethical and do not divulge clients' private information.
8. Call if you are running late.
9. When meeting in person, shake hands and introduce client or coworker.
10. If changing a scheduled event (walk thru, inspection, closing, etc) give as much prior notice as possible.

If more professionals in the Real Estate industry followed these basic rules, then our jobs would be far less stressful. By doing the right thing and treating people with respect and courtesy, the success and money will surely follow!

For more information please contact Lara O'Keefe at 972.838.9156 or visit Hunter's Creek.

Advice to Buyers of New Construction

1. Have an idea of your budget and basic needs in a home and home site before you start looking.
2. Speak to the neighbors and ask how their home building experience was.
3. Drive the area immediately surrounding the community to become familiar with the new surroundings.
4. Research the school system and check their ranking. This is good for resale.
5. Ask about builder and manufacturer warranties.
6. Make sure everything you are promised is put in writing in your contract. It protects everyone and eliminates any he said she said situations.
7. Research the builder. Find out how long they have been in business.
8. Ask about energy saving features of the home.
9. Check out the competition and make sure that the builder you picked is the right choice for you.
10. Ask for a list of the standard features or building specifications so you know what is included as standard.
11. If you are building, then ask to see a completed spec home and have upgrades pointed out to you.
12. Drive around the community at different times of the day to see if you can imagine living in that community.
13. Walk homes at different stages of construction to judge the quality of construction behind the walls.
14. Ask about Home Owners Association fees and requirements. Some are a lot stricter than others.
15. Ask if community is in a Multiple Utility District (MUD) because it means higher fees.
16. A 3rd party inspection by a licensed inspector is always a good idea to have an extra set of eyes on the job.

I offer you this advice after helping countless buyers for the last ten years while working for production builders. I have also just experienced the building process first hand as a buyer and I learned a lot from the other side of the process.

This is the advice I would offer a friend. I would also suggest that if you are not very familiar with an area or are unsure about your decision that you consult a Realtor.

For more information please contact Lara O'Keefe at 972.838.9156 or visit Hunter's Creek.

Inflation!!!

• Typically considered to be something bad. In fact, the Fed's mandate is "to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates."
• However, today's economic environment is anything but typical.
• We are currently experiencing "DEFLATION", which governments hate even more than inflation.

How inflation will ultimately loom over us:

• US leaders (Congress, President, Treasury Secretary, the Federal Reserve, etc.) doing everything possible to keep economy from collapsing.
• Original $700 billion bailout.
• $350 billion for equity investments in banks.
• Remaining $350 billion to make other investments.
• Tax rebate(s) of 2008.
• Obama's $900 billion "economic stimulus" currently under debate.
• Fed's balance sheet has ballooned by trillions of dollars in the last few months from purchases of assets such as mortgages.
• The same thing is happening in many nations across the globe.
• Governments are printing money and throwing it at the problem!!!

How inflation will help real estate:

• The value of commodities (gold, real estate, oil, etc.) rises without any increase in underlying demand.
• Because real estate is typically purchased with the leverage of a mortgage, this inflation will provide a higher percentage return than other commodities.
• Such a rise will actually "bail out" many homeowners who are "under water" on their mortgages, preventing future foreclosures.

Why governments might err toward inflation:

• Individuals on the brink of foreclosure get "bailed out" without anyone having to go on record voting for it.
• Banks get bailed out because their distressed assets gain in value before they have to be marked to market
• Additional benefit of minimizing impact of defined future payments (automaker pensions, Social Security, national debt payments, etc.)

*Source: A presentation by David & Britt Fair, Hexter-Fair Title Company