jane loveday

Here in California, we now have an extension to the current Federal Tax Credit that itself was extended past December 31st 2009 until April 30th, 2010. Based on this, we pretty much assume the Federal Tax Credit is not being extended again. So what's different?

Basically under the Federal Tax Credit you received either an $8,000 or $6,000 tax REFUND based on if you were a first time homebuyer or move up/down buyer. With the new California Tax Credit, it will either be 5% of the purchase price or $10,000 (whichever is higher) OFFSET against your taxes, not a refund. Still good news though!


The new California Tax Credit will be in place from May 1st 2010 through December 31st, 2010 and you can find out more information here - 10 questions about the new California Tax Credit - that my good friends at Broadview Mortgage share!

So if you want the refund, get in quick, if you need more time, you will still get a great bonus on buying a home this year! I am here, I can help.

Jane Loveday
Windermere Real Estate Agent
619-519-1615 Cell
http://www.JaneLoveday.com

Educating Real Estate Agents On How To Use Modern Technologies To Better Their Business Will Never Be The Same!

On April 6th, 2010 dozens of the most respected educators in the real estate industry converge to host most exciting event of its kind, the Virtual Real Estate BarCamp.

Virtual Real Estate BarCamp is a 1-Day Learning Extravaganza.
From 9am until 4pm PST, three concurrent webinar "rooms" will each host 7 different sessions, for a total of 28 different presentations.
There is something for everyone and everything for someone, and best of all, IT IS FREE and attendance is unlimited!

Click below to:
Register.
Learn more.
See who is coming.
Check out the Session Calendar.
Get sponsorship info.

Attendance is projected to be at least 2000 agents, nationwide.
Do not miss out on being part of this ground-breaking event.

Potential Session Topics Include:

Facebook for Real Estate
Twitter 101
Driving Quality Traffic to Your Website
Beginning Search Engine Optimization
Advanced SEO
Getting Started with WordPress
Advanced WordPress Techniques
Using Flickr for Real Estate
Using YouTube for Real Estate
LinkedIn Business & Referral Strategies
Selecting an IDX Company
Single Property Websites
Getting the Most Out Of Your Mobile Devices
The iPhone and Real Estate
Photoshop for Real Estate
Video Blogging
Video Listings
Advanced Twitter Tips
Preparing to Start a Real Estate Blog
Google Analytics and Traffic Statistics

...and much more, with new sessions being added every day.

And if that wasn\'t cool enough, individuals from around the country are volunteering to host In-Real-Life MeetUps for after the event.
Learn all day, and then meet to have a beer with local participants. This is going to be a blast!

We hope to see you there!

I have had the pleasure of working with ALL my buyers over the past several years but 2009 has posed a completely different set of 'rules'. With the amount of foreclosures and short sales that we are seeing it is not unusual for me to counsel that it will probably take several offers before one is accepted.

That saying several usually means anywhere between 4 and maybe 8 offers, due to the competitiveness of the market and the amount of cash investors knowing a good thing when they see one.

However I recently spent a few months writing up to 30 offers for one buyer, he stayed with me as offer after offer was rejected, he was a VA buyer which means he did not put very much down, VA usually requires a 100% loan, and we were asking for closing costs to be paid by the seller, plus all termite inspection and clearance fees, and a home warranty to cover appliances.

Our 30th offer was on a property which was being 'flipped' - bought at auction, was rehabbed with new appliances, carpet, windows etc and with a red front door! Why would that matter - well a red front door some say is lucky and we were!

After 30 offers we received an acceptance, we closed escrow within 30 days thanks to a wonderful lender who I work with, and my buyer is over the moon with the fact that not only is he a new homeowner, he also gets his $8,000 first time homebuyer tax credit on his 2009 taxes!

Was it worth it, YES, YES, YES, your dream of homeownership is my dream for you too no matter what it takes. This market is challenging, but we Realtors are fighters and we stay the course because it's our business and we know in the future it will get easier, but for now we are in the ring and it's round 2, or 6, or 10 but we will win your title to your next home!

Q & A on Extended Home Buyer Tax Credit

Which Properties are eligible?

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

How much is available?

The maximum allowable credit for first-time homebuyers is $8,000. The maximum allowable credit for current homeowners buying their next home is $6,500.

How is a buyer's credit amount determined?

Each homebuyer's tax credit is determined by two additional factors:

The price of the home and 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 $1235,000 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 they still get a credit?

Yes, some buyers may still be eligible for the credit. The credit decreases for buyer 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 the buyer's 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 the closing is after April 30, 20010?

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 the buyer occupies the home for three years or more. However, if the property is sold during the three-year period, the full amount credit will be recouped on the sale.

Thinking of buying? Wanting the $8,000 Tax Credit to work for you? There are a lot of good reasons to buy a home right now, interest rates are at their lowest in years, prices are beginning to rise (in San Diego specifically) but not by a significant amount, you will get a fixed-rate mortgage which you really have qualified for! And it's a great long-term investment.

So what are the downsides?

First you must realise that you are not alone, many people are now seriously looking to buy their first home. We also have a substantial lack of inventory - that is homes for sale, and the majority are either bank-owned, investor-owned or short sales.

With a bank-owned home, there is usually no negotiating on price, repairs, termite clearance or closing costs. That can mean you maybe out additional dollars fixing up a house, and you may have to weigh that into how much you want to spend out of pocket, and if you can afford any extras. A bank-owned home is usually priced below the rest of the competition making it even more competitive with first-time buyers and investors who are looking for a good deal to 'flip'.

With an investor-owned home, it may have, and more times than not, have been 're-habbed' with new carpet, appliances, landscaping, even a termite clearance and if lucky a new roof. These homes may have originally been bought on the Courthouse steps with the sole purpose to resell and make a profit. These homes are also very competitive with first-time buyers as you seldom need to make or request repairs, it's already been done. You may also be able to request help with closing costs!

A short sale home is where the current owner is behind with their mortgage payments, and are negotiating with their lender to sell their home for it's current value, have the lender take a loss on the mortgage amount and the seller walk away. This process can take up to 4 - 6 months depending on the listing agent and their background experience in negotiating the short sale process. There may be a refusal for any repairs, closing costs, termite, etc as you are not dealing with the actual seller but their mortgage company or bank, who is already losing a lot of money by letting the home sell for less that what it was purchased at.

In all these cases, there is competition, and as a first-time homebuyer you must expect a lot of patience as you probably will be among several buyers submitting offers all hoping to be chosen.

To submit more than one offer on a property is totally usual in today's market, if you get lucky you may get an acceptance the first time, the 3rd, 5th, 10th or more. It all depends on several things:

If you have sufficient savings to cover your closing costs on top of your initial deposit and any additional funds for possibly repairs/termite clearance.

If you have a lender who can guarantee to close escrow within 30 days (everyone likes that a lot!)

If you can possibly qualify for a conventional loan (at least 10% or more down) versus an FHA loan (3.5% down)

If you are not signed up for a rental lease that still has over 2 months to expire - do you want to pay rent and a mortgage for a month while they overlap?

And if you have an agent who knows the market area in which you are buying, can communicate on a regular basis with other agents who may be holding your offers, and does not encourage you to over-bid even if you are competing with other buyers - you don't want to pay for an appraisal only to find out the home will not qualify for your offer amount.

There's an awful lot of variables, but if you know what you can expect, it will make it a little easier to understand that if your offer is rejected, it's not personal, you just keep trying.

There's a whole lot of first-time buyers who are closing their transactions, who are looking forward to their $8,000 tax rebate, and who represent the recent statistics that home sales are increasing monthly. It's always good to be educated on what to expect up front rather than get frustrated and upset if no-one had told you at the beginning.

GOOD LUCK! Here's to owning your very first home!