Ton A. Ali, Realtor - Broker Associate, Buyer's Representative

Wow, it has been a great couple of weeks. Unfortunately I have not had an opportunity to blog. So many things to blog about though.

I have been working with first time home buyers (www.louisvillefirsttimebuyer.com) and it has been very time consuming. There is so much out there for buyers, I have been checking all the listings twice to make sure my buyers are seeing everything in their price range and areas. There are still great programs out there for just about every income level. If you are looking to jump in, make sure you at least have your FHA 3.5% down payment. The days of zero money down are over. Does that mean that you can't buy a house with no money out of pocket? Not really, but we can talk about that one on one.

The other exciting thing for me is ecological sustainability and my business; the green aspect of building and remodeling. I feel strongly that we have to address several issues with home owners and particularly first time home buyers. Making sure their homes are as energy efficient as possible, that water used responsibly and that they are doing all they can to promote healthy interior air quality.

Some of these issues are seen and high dollar items to address. The move toward more integrated and sustainable products has brought down some of the costs and more people should be looking at these as upgrades like they would a new deck or room addition.

i will continue to fill my website with links to sustainable forums and pages with information for upgrading your current home or building sustainably. Sign out guest book and tell me what interests you in sustainable living.

As I was discussing in the last blog entry, the house stimulus has been debated and I wasn't quite sure what the credit would be for buyer and how it would be applied or paid back. Today, one day after the Stimulus Package was signed in Denver, here are the numbers that were posted on the National Associations of Home Builders website. Although I have not been able to find a definitive number, I have read that the overall total of foreclosures is still relatively low. Unlike the divorce rate, the foreclosure rate is still in the single digits from the last article I read. I am looking for a site that has national statistics, but have yet to find a good source. If any of the 10's of my readers have a reliable source, let me know.

THE NEW BILL: eliminates the repayment obligation for taxpayers that purchase homes after January 1, 2009, increases the maximum value of the credit to $8,000, and removes the prohibition on financing by mortgage revenue bonds, and extends the availability of the credit for homes purchased before December 1, 2009. The provision would retain the credit recapture if the house is sold within three years of purchase.

The credit is designed to encourage first time home buyers to go ahead and make the leap to purchase their first homes. Combine this tax credit with the fact that home prices and interest rates are at historical lows, and it is indeed an ideal time for many first-time home buyers to purchase a home!

Here are some things to keep in mind:

A first time home buyer is defined as someone who has not owned a home in the last three years. Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit. You cannot purchase the home from a related party like a spouse, direct ancestor, or direct lineal descendant (child or grandchild); however, you can still qualify for the credit if you purchase a property from siblings, nephews, nieces, and others. If you are married, both spouses must be first-time home buyers. If more than one unmarried individual is buying the property, the credit can be split up among all the individuals who qualify. However, the total credit taken cannot exceed $7,500 for homes purchased in 2008 and $8,000 for homes purchased in 2009.

For Homes Purchased Between April 9, 2008 and December 31, 2008 the credit amounts to 10% of the purchase price of the home not to exceed $7,500 the tax credit works like an interest free loan and must be repaid over a 15 year period.

For Homes Purchased Between January 1, 2009 and December 1, 2009 the credit amounts to 10% of the purchase price of the home not to exceed $8,000 the tax credit does not need to be paid back if you continue living in the home as your primary residence for three years without selling it.

How does a tax credit work?

A tax credit is a special provision that reduces income tax liability on a dollar for dollar basis. When filing a tax return, you must include income items, deduction items and the number of exemptions, among other things, to figure your total tax liability. For example, if you’re total tax liability for the year is $8,000, and you qualify for the full $8,000 tax credit, this credit would wipe out all of the tax due. If your employer already deducted the $8,000 from your pay checks throughout the year, you would receive a tax refund of $8,000. If you owe less than $8,000 in taxes for the year, you are still eligible for the full $8,000 credit when you file your tax returns. In that case, the IRS will write you a check for the difference between $8,000 and your actual tax bill. These checks are expected to arrive in the same normal time as your tax return (or direct deposit for those who e-file) since they are a credit related to the return…they are not separate stimulus checks.

Area Statistics:

Well there are so many articles posted on line right now regarding the newest tax credit provided by the latest stimulus package. I have read several articles that seem to only be speculating on what is coming, but not giving specific details. I does look like the amount is being bumped to $8000 and that it will likely be a credit that will not require payback. I have also read that if you purchase prior to the April 15th tax filing date, you can take the credit against your 2008 tax liability. I don't know that the details are there yet, but as soon as I have more information I will get it out.

Here are local area statistics:

It has been and interesting week trying to get things back in order. We have returned to normal at home, but the work side is still a little crazy. The phone has just stopped ringing.

I have new signs that I am getting ready to put out and a mailing that is going out today. The mailing is going out to renters in my area and I added a new item to the post card, I U I. That stands for Involuntary Unemployment Insurance. I am meeting with a gentleman today that is representing a company that will insure your income for the first two years of your loan against you loosing your job. If you do, they will pay you up to $1800 a month for two years. The cost is about the same as a high end home warranty that last only one year. I don't have all the details yet, buy I will follow up with what I have found out and how you can protect yourself in this volatile job market.

Here are the latest GLAR statistics.

Statistics

I send this latest blog message from the lovely and historical Brown Hotel in snowy downtown Louisville, Kentucky. I am one of the many weather refugees enjoying the hostpitality of the Brwon.

This weather has been no freind to Realtors lately. I was getting several calls on my newest listing and the online traffic has been very incouraging, but now no one can get to it. It, like my house, is near Eastern Parkway and it is just a mess. Even my pointer signs are coated with snow and inaccessable. I was at the house today and the wind started to blow and trees started to sway. It was a little scary considering they are still coated with ice and fagile. I came back to the Brown with a change of clothing and my MP3 player.

If it isn't the weather, it's the political and ecomomic climate. We had a few days of excitment when the rates dropped, below 5% in some cases, but then quickly followed by record uneployment figues. It is such a great time to buy right now, but not if you are worried about your job. Luckily here in Louisville it is not as bad as the rest of the nation.

Statistics.

LISTINGS Residential (Single Family & Condo)

January 12 -18, 2009 512
Last Year 775

SOLDS

January 4 - 10, 2009 147
Last Year 158