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Rumors are flying and we have been fighting for the first time homebuyers credit to be extended.  Well, looks like we may have won the battle!

WASHINGTON (Reuters) - The U.S. Senate is expected to act later this week to extend a popular tax credit for first-time homebuyers that is scheduled to expire at the end of next month, Sen. Bill Nelson said on Monday. 

“We should be able to extend that later this week,” Nelson, a Democratic member of the Senate Finance Committee, told reporters before joining President Barack Obama on an Air Force One flight to Florida. 

A number of proposals to extend the $8,000 tax credit are being considered in the Senate. 

Senate Majority Leader Harry Reid floated a proposal last Friday to extend the first-time homebuyer tax credit through December 31, 2010. 

Under Reid’s plan, the $8,000 tax credit would be phased out over time, dropping to $6,000 in April, $4,000 in July, and $2,000 in October, before expiring at the end of 2010. 

Reid’s offer is a counterproposal to Sen. Johnny Isakson, a Georgia Republican, who wants to extend the $8,000 tax credit through June and expand it to all buyers of homes that will be a primary residence. 

Isakson, a former real estate agent, would also raise the income limit of eligible homebuyers to $300,000 per family from the current $150,000 limit. 

Reid is in the midst of negotiations with Senate Republicans over a pending proposal to extend insurance benefits for the jobless, and a procedural vote on unemployment insurance is expected Tuesday. 

If lawmakers can hash out a deal, the housing credit would be attached to the unemployment insurance measure, a Democratic aide told Reuters. 

The U.S. real estate and homebuilding industry is lobbying Congress to extend the tax credit although critics say it gives cash to many buyers who would have purchased a home without the benefit. 

The White House has also raised concerns about the cost of expanding the credit.

Lawrence Summers, Obama’s top economic adviser, told Reuters last week that the administration would be open to extending the existing credit, but wants to see it remain focused on first-time buyers. 

The tax credit was approved in February 2008 and about 1.5 million tax returns filed with the Internal Revenue Service have claimed the credit at a cost to the government of $10 billion, according to officials.

If you or anyone you know would like more information on how to take advantage of this $8,000 gift from the government to purchase a home, please email (jake@jakeconklin.com) or give us a call at 866-7866.

Moving Day

Getting ready to move into a new home? Moving never seems like a difficult process until you actually get started on it. How hard is it to put things in boxes, right? And then you actually get started, and you run out of boxes, need something that you’ve already packed up and you can’t find it, or run into any of the other moving frustrations that are part and parcel with transferring all of your belongings to a new space.

Before you even start packing, the first thing you need to figure out is when you are moving. Three weeks from now? One week? As soon as you have an date, call to reserve a moving truck and crew, or at least start contacting friends and family members who can help you get everything over to your new place. Call to schedule transferring utilities, cable or dish, and any other services you receive at home to your new house. Then spend a day or two working out a moving plan.

Your moving plan should outline the time you have between now and your move, and will list what your packing goals for each week, or day, are. Start with the items you use the least often. Pack up off-season clothing, the kitchen appliances you rarely use, and anything else that you won’t need in the next few weeks. For each week that goes by, pack up everything that you will not need again until after the move. Ideally, when you get to the last few days, almost everything will be packed up and ready to go.

When it comes to boxes, too many is always better than too few. Local business, especially offices and restaurants, almost always have boxes available. Reinforce the bottoms of boxes with packing tap; even the sturdiest boxes can spill your belongings all over the sidewalk if you’re not careful. Take the time to carefully label each box—what is in it, and what room it will go in. This will make grabbing any necessities out of the box before you move a little easier, and also make unpacking less of a hassle.

A week before you move, send your new address to magazines and other mailings, notify the post office, and let family and friends know about your new address. Call anyone who has agreed to help you move to make sure that they are still able to help, and confirm your reservation for the moving truck.

Have meals ready for moving day, and a day or two after. Even a box of donuts, some juice and disposable cups are better than trying to dig through boxes to find what you need to make breakfast. Do a final walkthrough, checking cupboards, closets, and other nooks and crannies. When you unload the boxes into your new home, put them right into the room they are labeled for. This will save a lot of time when you start unpacking.

Moving can be a frustrating and stressful process, but it doesn’t have to be. By following these moving tips, your next move can be a lot easier and less of a challenge.  End the waiting game and let dollars roll in your pocket.

jake@jakeconklin.com
Conklin Team
(208) 866-7866

Factory closings, unpaid furloughs, companies going bankrupt, layoffs-even if you still have a job, it’s likely that your company is striving to cut costs by limiting overtime and deleting benefits. The current financial crisis has hit everyone hard, especially homeowners. Due to the housing bubble, many people owe more money on their homes than they are currently worth. Others are simply having trouble meeting their monthly mortgage payments. President Obama’s home refinance stimulus package offers two different solutions for homeowners.

HOME AFFORDABLE REFINANCE PLAN:

The “Home Affordable Refinance” plan is the right pick for you if you are still current on your payments, but need to refinance with a lower interest rate. This will allow you to make lower monthly payments, but still increase the equity you have in your property. The principle amount you owe will be the same, only the interest rate will change. The home must be your primary residence, and you only have until June 10, 2010 to arrange for this refinance plan.

HOME AFFORDABLE MODIFICATION PLAN:

The “Home Affordable Modification” plan is for you if the monthly housing expenses for your primary residence are more than 31% of your gross income and you can no longer afford your mortgage payments. Whether it’s because of a job loss or medical expenses, this part of the home refinance stimulus package will allow you to work with your bank to modify the terms of your mortgage. And in some cases, for every month you makes your payment on time, the Treasury Department will actually make a payment toward the principle of your loan-as much as $5,000 over 5 years! This mortgage modification plan is available until December 31, 2012.

Yes, the federal government is trying to help you pay off your mortgage; but in order to claim your own home refinance stimulus package, you need to find out more about it.

Different times call for different strategies. You will never find a boxer that only throws one punch or a doctor that only knows one procedure. In order to make more money in all seasons of your life, it pays to become a well-rounded investor.

This doesn’t mean growing a beer belly and carpenter’s crack. It means having different market strategies ready to use when the time is right, and not trying to force an ineffective strategy to work when the time is wrong.

In declining or slow real estate markets, here’s the golden rule. Hold it, Wholesale it, or Sell it Dirt Cheap.

Slow Market Strategy #1: Buy and Hold

In these markets, you often can’t sell a house for full market value if you wanted to. So why fight it? Buy with the intention of renting them and riding out the storm until values go up again. This also beats being afraid to invest and doing nothing for the next 4-7 years.

Slow Market Strategy #2: Wholesale It

And, those houses that you can get a deal on but don’t want to keep as a rental? Get them under contract and sell your agreement to another investor, who will end up buying it and paying you’re an assignment fee for finding it.

Slow Market Strategy #3: Sell it Dirt Cheap

Believe it or not, houses still sell, even in the worst of markets. This is only a problem if you are unable to lower your price without taking a loss.

The solution, then, is to buy houses so cheap (like 50-60% of market value) that you can sell them at prices higher than you paid, but are still really low (like 70-80% of market value). And don’t start out high and lower it over time, as values might go down another 5% in the next month or two. I repeat, don’t mess around now. List them with the intention of selling them really low right off the bat.

It has been a real learning experience adapting to a changing real estate market. I had to learn how to get long-term financing to hold properties, and you might have to make other adjustments. But I promise you it is worth your time and effort to do so, in order to maximize your profits and minimize your risk.

Foreclosure is to shut out, to bar, to extinguish a mortgagor’s right of redeeming a mortgaged estate. It is a termination of all rights of the homeowner covered by a mortgage. Foreclosure is a process in which the estate becomes the absolute property of the lending institution.
Our economy is offering many homes which are available due to foreclosures. As buyer, there may be opportunities to buy in your area as a result. You can purchase homes in foreclosure at different stages in the process. Properties can be bought before the foreclosure procedure is completed, at bank auctions, or homes that don’t sell at auction as REOs. All these types of sales can be complex to complete so be sure to hire an agent who has experience with your particular type of situation.

In order to escape from foreclosure, sometimes a home owner will accept a buyout on their property for less money than is owed to their lender. This practice is called short selling because the owner is selling their property for an amount short of what is owed on it. Sometimes this happens to avoid foreclosure, though it can also happen in the case of fallen property values. Be aware that short sales can take longer than regular sales to close.

The other methods include buying at a public auction or buying bank owned or REO properties. These properties are often priced for less than what is owed on them because the bank does not want to hang on to a bunch of properties. These bank owned properties cost the bank money, so it is in their best interest to clear them out as quickly as they can.

It is observed that when foreclosure is purchased, it may come with tenants who have refused to move or angry tenants who expressed their anger with property destruction when they vacated. Be aware that these are your responsibility to deal with as the buyer, if these possibilities are more than you want to deal with then foreclosures might not be the best option for you.

Any foreclosed properties are not easy money and juicy profit at all. There can be many stresses in purchasing real estate, particularly if you are not prepared for the possibilities that may occur. The best way to make your way through purchases of distressed properties is to ensure that you are as informed as possible and that you have an agent or lawyer working on your side. Purchasing foreclosures totally depends on reliable foreclosure listings, good understanding of the market in your area, own experience and nature of foreclosed property and above all the final deal, the better it is the better you will be rewarded.

Economic slowdown and falling home prices has an impact on the extent of money spent by individuals towards home improvement as well. It is in these uncertain periods that one needs to be extremely judicious and meticulous when it comes to spending each and every penny on a home improvement idea. Analysis of data over the last couple of years seem to clearly suggest that the return on investment (ROI) on home improvement has been steadily declining and stands only around 70% which means that an additional dollar spent on home improvement would enhance one’s property value only to the extent of 70 cents. Home improvement options which investors prefer from an ROI point of view include replacing the siding, addition of a wooden deck, kitchen and bathroom remodeling, window replacement, finishing a basement, adding a second room or a garage and adding an upscale bathroom. Home improvement ideas still continue to occupy a special place with home owners who undertake this exercise to make their stay more comfortable and enjoyable and have little related to ROI in their mind when it comes to home improvement.

Broad classification of home improvement ideas include minor, mid-range and major depending on the investment required for the idea. Minor home improvement ideas include changing the flooring and tiling, working on shower doors, changing faucets, and fitting new doors and windows. The most common mid budget choices include remodeling the bathroom or the kitchen, fitting a new counter top with sink and remodeling the toilet by installing with a new tub surround. High net worth individuals are fascinated by expensive ideas including that extra stylish gourmet kitchen, a hot tub, building a pool, an outdoor kitchen or fire space. While these ideas certainly make a dent in one’s pocket, they definitely make a style statement and fulfill that inner desire of spending lavishly to improve one’s home. Even though high end home improvement ideas have poor ROI attached to them, these are usually undertaken by people who are more or less certain that they are not likely to change their homes.

Home improvement ideas related to making one’s home more energy efficient and eco friendly find a place for themselves with each individual. While these Fuel efficient measures help you save on your power bills on one hand, they are a hit with all individuals because of the associated “green” factor. Most common ideas which display your environmental friendliness include fitting UPVC windows and wall insulation. Installation of security systems to enhance and upgrade the security aspects of one’s home is also a favorite home improvement idea amongst most people. The idea is more driven by a need and yet ranks high as far as ROI is concerned. You can go in for financing your home improvement ideas by way of home improvement loans. The interest rates applicable on such loans are at a premium to home loan rates and the rate moves in tandem with home loan rates.

A No-Nonsense Guide to Home Buying

In the last few years, the process of buying a home has been altered by the so-called mortgage crisis and the continued evolution of online real estate tools. So in this article, we will take a fresh and modern look at the process of buying a house. More specifically, I will outline the general process in twelve clear steps.

1. Check Your Credit

Credit scores have always been important for home buyers, but they are more in the wake of the mortgage meltdown of 2007 - 2009. According to industry experts, home buyers in 2006 needed a credit score of at least 620 to qualify for the best interest rates on a loan. Two years later, borrowers needed a score of 760 or higher to get the best rates. That’s a much stricter requirement!

So your first step should be to review your financial situation. Order your credit reports from Experian, Equifax and TransUnion, and check them for errors. Order your credit score (different from your reports) to see how you stack up against the national average. If necessary, focus on improving your score by paying down credit card balances, making all future payments on time, etc.

2. Determine Your Budget

Don’t make the mistake of letting a mortgage lender tell you what you can and cannot afford, in terms of a monthly mortgage payment. In reality, the only thing a lender can tell you is the amount you qualify for — not the amount you can realistically afford. In other words, you should determine your home buying budget for yourself. There are a lot of free mortgage calculators online that can make this process easier for you.

3. Research and Choose a Type of Mortgage

Do you know the difference between a fixed-rate mortgage and an ARM? This is just one of the things you need to understand before applying for a mortgage loan. Because of increased competition in the lending industry, there are more types of home loans today than ten years ago. The key to success when choosing a mortgage is to consider your long-term plans and find a loan that matches those plans. To do this, you must learn the pros and cons of the primary loan types.

4. Get Pre-Approved for a Loan

Pre-approval is a process in which the mortgage lender reviews your financial and credit history to determine your “creditworthiness” … an industry term that means: “How much of a risk is this person, and how much are we comfortable lending?” When you get pre-approved for a certain loan amount, there’s a good chance that you’ll receive final approval for that amount as well, when the time comes.

Having a pre-approval letter in hand also shows sellers that you are serious about (and capable of) purchasing their home. This can make a big difference in hotter real estate markets, where the seller may receive multiple offers from competing buyers.

5. Find a Real Estate Agent

If you are buying a home for the first time, or in a new city you’re not familiar with, it’s wise to hire a professional real estate agent. When you compare the amount of money you’ll pay for a new home with the size of the agent’s commission, you’ll see that it’s worthwhile to hire an agent. Choose an agent who specializes in helping buyers, as opposed to sellers.

6. Narrow Your Search

The neighborhood you choose is nearly as important as the house itself, because both have a direct bearing on your quality of life — not to mention the future resale value. For these reasons and more, it’s always best to live in a city for a while before buying a home, even if it means renting an apartment for a while. That way, you can discover which areas you like best before committing to an area.

NOTE:  You can ask your real estate agent (jake@jakeconklin.com) to sign you up to receive up to the minute notifications of homes in your criteria via email.  It’s free and updated daily!

7. Begin House Hunting

This is where you and your agent visit properties in order to find one that matches your needs. Here are some helpful tips. Take a digital camera with you to get pictures of each home. This will help you recall the details later on. Bring a notepad as well, and for the same reason. While you’re at it, you might want to bring a friend along for an unbiased opinion of each property — you know, that outspoken friend who calls it like it is.

8. Evaluate the Asking Price

It’s referred to as the “asking price” for a good reason. Just because a property is listed at $250,000 doesn’t necessarily mean it’s worth that amount. This is another area where it helps to have a real estate agent. Most agents are expert at validating sale prices against recent sales in the area, and that’s the best way to find out if the price is realistic or inflated.

9. Make an Offer

Once you’ve determined that the price is fair and reasonable, you are ready to make an offer on the property. Always make the offer contingent upon the home inspection (see next item). That way, if the inspector uncovers an issue that you consider a deal breaker, you have a way out of the contract. Ask your agent about contingencies.

10. Get a Home Inspection

Most inspections only cost a few hundred dollars. That’s a small price to pay for the peace of mind you get in return. A home inspector will review the structural and mechanical aspects of the house, including (but not limited to) the roof, foundation, electrical, and heating / cooling system.

11. Attend the Closing / Settlement Process

So, you’ve made it through all of the inspections and the process is still on track. Great! The next step will be the closing / settlement process (it goes by different names in different parts of the country). Actually, you can prepare for this process early on by putting extra money aside. This is when the title to the property is transferred from the seller to the buyer. You’ll also be signing a lot of paperwork and paying any other fees that are due.

12. Tie Up Loose Ends

After your move, you’ll have a few more things on your task list. Transfer your utilities if you haven’t done so already. Complete a change-of-address form with the post office. Get a safe deposit box for your home insurance policy and other important documents. Set up a mortgage payment schedule or an online auto-pay system. And give yourself a pat on the back … you’re now a homeowner!

Reference:  www.adviceforagents.com

Sold Home

How to Sell Your Home in a Slow Market

Even though the real estate market has slowed down in recent months, there are still plenty of homebuyers eager to make a purchase. Knowing how to prepare your home for sale, when to allow access for showings, and how you can offer buyer incentives will help you find the right buyer, even in a declining market.

Before you even put your home on the market, make sure that all basic repairs are completed. Nothing can turn off a prospective buyer quicker than loose railings, torn screens or missing hardware on cupboard doors. These easy repairs do not cost a lot of money. If a homebuyer sees that the little things are not attended to, they are likely to believe that the larger things are neglected too. Let buyers know that you have pride in your home by making sure that all of the small repairs are taken care of.

Keep your home clean throughout the time it is on the market. In a slow real estate market, it is important to have your home available to show at a moment’s notice. The more often your home is shown, the likelier it is that your home will sell. Keep your home available to your realtor and they will be able to show your home quickly to any buyer that shows interest.

Have your home staged by a professional. Home staging has become a booming business and a professional home stager will help you remove clutter and depersonalize your space. Prospective homebuyers want to picture their family in the home, not yours and a home full of personal clutter will not show off the potential of your home.

Keep pets contained during a real estate showing and make sure that your cat litter box is always clean. Pet owners tend to get used to the odors caused by litter boxes and it is important that you remember to clean it every day. Nothing will turn off a prospective home buyer like a home that smells. Many people are fearful of dogs, especially ones that they do not know. Make sure that you either take your dog with you for a showing or put them on a leash outside.

Be realistic in your expectations of the price you will be able to sell your home. Forget about what could have been if you had sold it last year and focus on what your home is worth now. In a buyer’s market, buyers don’t have to negotiate much. Buyers know that you want to sell your home and a home that is priced too high is likely to be looked over. Ask a fair price for your home to avoid the need for too much negotiation.

In a slow market, hiring a real estate agent is crucial to get your home sold in a reasonable amount of time. Yes, there are ways you can list your home for sale by owner using the internet, but nothing beats the experience that comes fro a real estate agent who is able to take care of everything in order to sell your home.

Selling your home can be a stressful time, but you can be successful in selling your home if you remain patient, reasonable and flexible. There are buyers out there and the key is to find them and get them to fall in love with your home.

www.realestateabc.com

Buying A Home

Don’t let a sluggish economy get you down. There are reasons to shop for personal items—including a new home. I recently saw an advertisement for a new car that said you could return the car in the first year if you lose your job. While there may not be that incentive for homes yet, some other perks might give you reason to start your housing search.

If you can afford to buy, consider making homeownership a goal this year, especially if you haven’t owned a principal residence in three years prior to buying. The new stimulus package sweetens the deal for homebuyers who purchase a residence on or after January 1, 2009, and before December 1, 2009. The incentive is for first-time homebuyers who remain in their home for at least three years. It provides a credit for 10 percent of the home purchase price, up to an $8,000 limit. The credit can be taken on your 2008 or 2009 tax return.

If you close on a home after the April 15 tax deadline, you can apply for an extension provided that you close on your home before the extension deadline of October 15. If you’re extra speedy and have already filed your 2008 return, don’t worry—you can file an amendment to claim the credit. You have three years to do that. You’ll need IRS Form 1040X to do that.

Taking the credit on your 2009 return or getting the benefit now, before filing your return, by adjusting your income wage withholding are also options.

Yet another reason, you may want to shop around is to get in on the action while it’s still a buyers’ market. Others certainly see the U.S. as a stable place to invest. According to the Association of Foreign Investors (AFIRE), a survey released earlier this year showed that more than 53 percent of respondents ranked the “U.S. as the country providing the most stable and secure real estate investments.”

“This is the greatest opportunity we’ve had in 50 years,” says Billy Procida, president of William Procida, Inc., a turnaround management firm for middle market real estate companies. He says even though there is a lot of inventory on the market, certain properties will have less interest and be a better bargain.

“If you buy something that is pristine, painted, clean—brand new—you’re going to be competing … . This is truly the time when the folks who are willing to roll up their sleeves [and do some work] will benefit from it,” says Procida.

www.realtytimes.com

The information on this page pertains to the American Recovery and Reinvestment Act of 2009.

New Homeowners

$8,000 Home Buyer Tax Credit at a Glance 

• The tax credit is for first-time home buyers only. For the tax credit program, the IRS defines a first-time home buyer as someone who has not owned a principal residence during the three-year period prior to the purchase.
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home’s purchase price up to a maximum of $8,000.
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

Call us for a FREE list of homes available for purchase in your price range

http://www.federalhousingtaxcredit.com/2009/faq.php#9