Tom Thornton

If you're an Austin, Texas first-time buyer who has questions about the stimulus package tax credit, here are a few basics and resources for finding out more.

FEDERAL HOUSING TAX CREDIT (American Recovery and Reinvestment Act of 2009) FAQ:

- The $8,000 is a tax credit, not a tax deduction.

- To qualify, you must be a first-time homebuyer or you must have not owned a property for three years.

- To retain the credit, you must maintain ownership of the home for three years after closing.

- To receive the credit, you must close on your property by December 1, 2009.

- There is an income maximum of $75,000 for individuals and $150,000 for couples on the credit. Those earning more may be able to receive a portion of the credit, but not the whole thing.

- The tax credit is equal to 10 percent of the home's price up to a maximum of $8,000.

- Condos and townhomes do qualify for the tax credit!

- The home purchase must be for a primary residence, not an investment property.

- The tax credit is refundable - you do not need to have paid in $8,000 in income tax to get the credit back!

For more information, see the great site http://www.federalhousingtaxcredit.com to get answers directly from the government about the credit.

I have worked with a number of first-time buyers this year who are taking advantage of this program, and would be pleased to help you if you're trying to find an Austin, TX home. Please call me on 512-636-0672 and let me know you saw this post on ActiveRain!

The agents in my office have been batting around a number of emails about the new City of Austin Energy Conservation Audit and Disclosure Ordinance. Our main questions and the answers we've found as of today:

• If you are already under contract as a seller but are closing in June, are you still required to purchase the audit? As far as we can tell, yes you do. Several companies are running early bird specials that discount the cost of inspections done before June 1st, so if you're in this situation, I'd encourage your clients to call and book an audit promptly.
• Does the Audit apply only to new listings taken on or after June 1st, or do you need to ask existing clients to get the audit done? It does apply to all current listings, so you will need to inform your seller clients that they'll need to do the audit ASAP.
• What's the going rate on these audits? So far, it seems to be in the $275-325 range. I've seen providers charging as little as $240 for a one-story bungalow-style home, but like inspections, it depends on the size of home and the number of floors.
• Does anyone know the exempted categories of home? Here are the basics. You don't need to do an audit if the home is less than 10 years old at the time of sale, if you're selling a condo, or if your sellers have received at least three energy-efficiency improvements or a total of $500 in rebates through Austin Energy residential energy-efficiency offerings within 10 years before the sale. If your clients have received free energy-efficiency improvements through Austin Energy's residential energy-efficiency offerings within 10 years, they are also exempt. There are additional exemptions for manufactured housing (mobile homes) built on a permanent chassis and designed for use without a permanent foundation, and some some foreclosure, pre-foreclosure, and trustee's sales. Call 512-494-9400 to make sure these exemptions do apply to you before making any recommendations or promises to your client.
• Are they actually going to enforce this thing? Yes. Not complying is a Class C misdemeanor, and the City of Austin's Legal Department does intend to enforce the provision on sellers who do not comply.

Ultimately, the Audits should prove to be a positive change for Austin home marketing, and should help reduce both energy waste and Austin's net power consumption by educating consumers about cost-effective home energy improvements. Best of luck to everyone!

As 2009 begins, it seems that buyers are now catching on to what many Realtors have been saying for the last 90 days - now is a great time to buy! With Texas mortgage rates bouncing around in the 4.625% to 4.875% range for qualified buyers in the last week or two, our firm is seeing buyer clients appear out of nowhere after months of hibernation.

For buyers, now is a great time to consider interviewing to find a great buyer's agent to assist in your spring search. Some things to consider when interviewing a buyer's agent:

• Do they listen to your needs and concerns?
• Do they have addition education beyond a Real Estate license? (Examples: a college degree, Master's degree, or Real Estate designations like an ABR (for buyer specialists), GRI (a "graduate school" for Realtors), or a Green or EcoBroker designation (for eco-conscious real estate.)
• Have they explained the buyer and seller agency process in a way you're comfortable with?
• Do they seem to know about the neighborhoods you're most interested in?

One thing many first-time buyers don't know is that one should really hire a buyer's agent and work with a mortgage lender for a pre-approval and budget range before they start to browse for homes! Doing so doesn't cost you a dime, and makes the buying process easier by having a correct budget upfront, building trust between the buyer and the Realtor before viewing properties, and arming the buyer with data to make the right offer on the right home in the right neighborhood.

One last thing: on the buyer side, clients don't pay a commission! The listing agreement between the seller and the seller's Realtor specifies a commission to pay for a buyer's agent, so as a buyer, you take advantage of these services without having to pay fees! Having a buyer's agent working for you will save you time, help you obtain a great price, and make the contract to closing process go smoothly. Don't just call a sign! Interview someone referred to you by a friend, or look for Realtors online with great testimonials on their pages. It will improve your experience tremendously. For more on hiring a Realtor, see this great article at Realtor.org.

Tom Thornton is a Realtor, EcoBroker, and Accredited Buyer's Representative (ABR) at RealtyAustin.com serving the Central and Southwest Austin, TX area. You can reach him on 512.636.0672 if you need a Realtor in the Central, South Central, or Southwest Austin area!

For Realtors with downtown and Central Austin clients, or for buyers considering a 2009 purchase, there have been a number of announcements and changes in the Congress Avenue and 2nd Street areas recently near the Austonian, W, and 360 Condo towers. Here are a few to note for Realtors and buyers alike:

- On December 22nd, the building formerly housing Las Manitas Cafe and Tesoro's Trading Company was demolished to make way for a new hotel project from White Lodging Services. While construction is on hold at present due to the economy, the ultimate plan is still in place. The block was the subject of a contentious battle over the past two years due to Las Manitas' "local favorite" status among Texas musicians, politicos, and residents. The restaurant may reopen a block away near 3rd and Congress in 2009, but plans have not been made public.

- Meanwhile, up the block, Patagonia has opened a nice retail facility in the W.B. Smith building at 316 N. Congress Avenue. The store is open from 10am-7pm Monday through Saturday and 11am to 5pm on Sunday.

- Up near 9th Street, El Chile has expanded their taqueria empire with an El Chilito location that is now open for breakfast and lunch. The store opened in late October, and hours are 7am-3pm Monday-Friday. This is not a full-scale El Chile, but rather a casual spot serving breakfast tacos, burritos, tacos, sodas, and beer.

Tom Thornton is a Realtor, EcoBroker, and Accredited Buyer's Representative at RealtyAustin.com serving the Central and Southwest Austin, TX area. He would be pleased to work with you as a buyer's representative on your home search. You can reach him on 512-636-0672.

Earlier this month, I spoke with Mark Townsend of Cornerstone Mortgage to discuss the current loan market for buyers and investors to get a better sense of what was in store for 2009. Mark's first item of business was to email me some changes on FHA loans that will impact a number of buyers in our area during the new year. For those who haven't yet seen this information, you might want to take note, as it will change the amount your FHA buyers can be approved for going forward.

First, our higher FHA temporary loan limits expire at the end of December and will not be renewed for 2009. This means that the current $288,750 limit will decrease to $271,050 for the forseeable future. This makes the maximum Austin purchase price for an FHA home $280,880 without an additional down payment requirement. You can still do FHA home loans on higher amounts, but your client must make up the difference with funds at the closing table.

Second, FHA down payment requirements are increasing slightly (to 3.5%) for 2009, replacing the 2.25-3% band from 2008. While this change is likely a good move to prevent foreclosures and increase loan stability, it may surprise some FHA buyers who asked about these matters before the changes were in place. Also note that this number applies to the lesser of the appraised value or the sales price, so you'll need to monitor those appraisal numbers as they come in so that your clients aren't surprised when the HUD arrives.

As always, it's great to keep in touch with trusted lenders (I work both with Mr. Townsend and with Ashby McDonald at Highlander Mortgage most regularly) to keep an eye on the mortgage market, as it will provide tremendous benefit to your clients in terms of expectations and understanding.

Happy holidays, everyone.

Tom Thornton is a Realtor, EcoBroker, and Accredited Buyer's Representative at RealtyAustin.com serving the Central and Southwest Austin, TX area. You can reach him on 512-636-0672.