Rick's Real Estate Blog

This post sponsored through the pepperjamNETWORK by:
Textlinks.com – A revolutionary new way to create quality, relevant backlinks to your site

If you have recently decided to move from renter to homeowner, you are not alone. First-time homebuyers made up 41 percent of the market, according the National Association of REALTORS®’ 2008 Profile of Home Buyers and Sellers. And price declines in many markets around the country have created unique opportunities for those considering home ownership for the first time.

As a homeowner, you have security and stability, the freedom to decorate and remodel, potential to build equity and tax benefits. And with interest rates still at historically low levels – 5.22% for the typical, 30-year fixed-rate mortgage (as of early August 2009), combined with ample inventory, now is a great time to buy.
Plus, there are several incentives and programs available specifically for first-time homebuyers.

First-Time Homebuyer Credit
One program that is a great financial opportunity is the highly publicized First-time Homebuyer Credit, which was part of the Housing and Economic Recovery Act of 2008. This federal initiative allows first-time homebuyers to take up to an $8,000 tax credit, which doesn’t have to be repaid, toward a new or resale property purchased prior to Dec. 1, 2009. For new construction, the purchase date is considered to be the date you first occupy the home.

Under this program, a first-time homebuyer is considered to be anyone who has not owned a principal home within the last three years. If you are married, both spouses must meet this criterion. However, unmarried joint purchasers may allocate the credit amount to any buyer who qualifies as a first-time buyer. In addition, ownership of a vacation home or rental property not used as a principal residence does not disqualify a buyer as a first-time home buyer. You are also eligible to claim first-time buyer status if you owned a principal residence outside of the United States within the last three years.

The actual tax credit may vary depending on the purchase price and your income. The credit is generally equal to 10 percent of the home’s purchase price, not to exceed $8,000. In addition, the income limit to receive full credit is $75,000 for single taxpayers and $150,000 for married taxpayers filing a joint return.

For complete details, visit www.irs.gov and www.federalhousingtaxcredit.com. As always, consult with your tax adviser on how this tax credit may affect you.

State Programs
Many states also have first-time homeowner programs. Under these programs, first-time homebuyers may be eligible for grants for down payments and closing costs. Some states even offer various tax deductions and credits.

Mortgage Loans
As a first-time homebuyer, you don’t have the advantage of using the equity in a previous property to help bridge costs associated with down payment, closing and other fees. Many financial institutions have mortgage products with you in mind. In addition, the Federal Housing Administration (FHA) offers mortgage programs in which your down payment can be as low as 3.5% of the purchase price, and allows most of your closing costs and fees to be included in the loan. Although FHA does not directly loan to consumers, you can work with a FHA-approved lender. For more information, visit www.hud.gov.

Workshops
Besides financial assistance, there are workshops specifically geared toward first-time homebuyers. They provide a wealth of information about the home-buying process, such as how to search for a home, setting up a budget, choosing a real estate professional, loan products, and so on.

The transition from renter to homebuyer is a large step and is arguably one of the largest investments you’ll make, so make sure you take advantage of all the assistance available to make the road to homeownership that much easier.

Related articles by Zemanta

• The $8,000 First-Time Home Buyer Tax Credit Program Expands: 5 Things to Know (usnews.com)
• Expensive homes miss the recovery (money.cnn.com)
• Get your $8,000 HUD tax credit now (money.cnn.com)

This post sponsored through the pepperjamNETWORK by:
GPS Tracking | Hidden Cameras | Covert Surveillance *Shop Now*

Just received an email today from the National Association of Realtors (NAR) that quotes an article by Tribune Media Services, Ilyce Glink (08/02/2009).

The top six reasons, according to Ilyce, that property A sells and property B stays on the market are:

* Lousy pictures on the Web.
* Priced too high for the neighborhood.
* Blah interior; ho-hum landscaping.
* Little online marketing and hard-to-find MLS listings.
* Low commissions. Practitioners make sure their customers see properties that offer a payoff.
* Miserable maintenance, including ceiling stains, leaky faucets, and ancient furnaces.

As you can see, many of these are on the agent! It is important to hire an agent who understands marking in the 2010’s. Yesterday’s tactics do not work any more. According to NAR over 70% of buyers begin their search on the internet and 60% of all buyers that purchase in Central Florida are from out of town.

I pride myself on taking high quality, high resolution pictures and posting them everywhere on the net I can find! But, I really don’t like when a seller says “I’m not giving it away”. My response to that reply is, “Then I am happy to use your yard to advertise my services, but your property will not sell”. Online marketing, proper pricing, a new can of paint, and simple repairs around the home can go a long way towards procuring a buyer.

If you want the best opportunity to sell your house in this challenging market, give me a call right away! I am happy to help you. 386.837.5300.

First time home buyers and affordability of housing are driving the market we are in today. According to the National Association of Realtors, first time home buyers accounted fro 53% of the transactions in the month of march and record affordability conditions are helping markets recover.

Why are first time home buyers entering the market? Well, it’s a great time to buy for one thing, plus they can now afford a home. The best reason is the $8,000 tax credit offered from Uncle Sam! That’s $8,000 free money to purchase a home! It doesn’t get much better than that. Call me to discuss.

Source:http://www.realtor.org/RMODaily.nsf/pages/News2009042301?OpenDocument

This post sponsored through the pepperjamNETWORK by:
Funny Shirts and a Talking Duck! Don’t believe it? Click HERE!

Related articles by Zemanta

• Hope seen, despite home sales downturn (money.cnn.com)
• You: Would You Pay For a Facebook Vanity URL? (via Mashable!) (mashable.com)