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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.

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I have noticed a trend over the last few weeks/months. When I am on the floor in my office, the phone rings all the time again. It is interested buyers, passers by, and fellow Realtors showing our office’s listings. If I were forced to guess, I would have estimated that sales were up, now it is confirmed.

Another trend I have noticed in the market is the number of expired listings, those that did not sell, is down. I think this is because people have finally come to the realization that their property isn’t worth what it used to be, and they need to price it competitively to sell it. Additionally, “Bank Owned”, those properties being sold in foreclosure by the bank, are being marketed by the banks at rock bottom prices. They are generating multiple offers and actually receiving more than their asking price for the properties. Some are actually investing money in to repairs! That used to be unheard of for bank owneds.

According to the National Association of Realtors (NAR) “The Pending Home Sales Index, a forward-looking indicator based on contracts signed in April, rose 6.7 percent to 90.3 from a reading of 84.6 in March, and is 3.2 percent above April 2008 when it was 87.5.

NAR President Charles McMillan says there are numerous buyer assistance programs around the country.

‘Some states are offering bridge loans that allow first-time buyers to use the tax credit for downpayment and closing costs, but there are many other local government and nonprofit programs available to buyers, depending on location,’ McMillan says.

Last week, HUD announced that qualifying buyers can use the tax credit for closing costs on FHA loans, to buy down the interest rate or make a larger down payment.”

Things are definately looking up in our industry and now is the time to buy at rock bottom prices. “NAR’s Housing Affordability Index is in record territory. The affordability index rose to 174.8 in April from an upwardly revised 171.9 in March, which makes it the second-highest monthly reading on record after peaking at 176.9 in January of this year.”

If you are a first time buyer, and investor, or a savvy homeowner looking to upgrade while the gettin’s good, call me right away at 386.837.5300. I am happy to help you with all your Real Estate requirements.

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A good home inspector is worth their weight in gold! This is the understatement of the century! But it is true, a professional home inspector tears the house you are buying down and inspects every nook and cranny in intricate detail. Ironically, they are unusually inexpensive.

Thermal Imaging finds pests within the walls before they do significant damage.

One of the best statements my old broker used to use about inspectors rings true. “You don’t want the home owner there because he doesn’t want to see what the inspector is going to do to his house”. Not that they will damage anything, they just take everything apart for a “looksee”.

Any contract can be written with a “right to inspection”, but make sure you do it in the time allotted. Otherwise, the seller can enforce the contract without the inspection. A good realtor here is vital! Make sure your realtor is on top of things, knows the process, and keeps you informed. Call me right away if you need a good realtor at 386.837.5300.

A good inspector will provide you with a pre-purchase building report that identifies all the defects found during the inspection. The report will identify significant building defects, problems identified, and possibly an estimate of repair cost. The inspector will compare the property inspected with buildings of similar age and construction and will give an overall rating for the dwelling. They will access the roof void, the sub-floor as well as the entire building externally and internally to report on such defects as:

Dampness. Good inspectors carry moisture meters.
Plumbing checked for past and present leaks.
Wood rot and/or termite damage.
Cracks in external brickwork and internal walls.
Roof condition.

Another very important inspection is a pest inspection. This may be carried out by the existing home inspector or may be completed by a specialist. Either way, it is crucial, and a prerequisite to getting a mortgage. A pre-purchase pest inspector will report on all areas to the homes sub-floor, roof void, internal rooms and areas around the dwelling or within the boundary lines. The inspector will report on defects such as:

Termite activity past or present.
Past termite treatments where evidence or paperwork is provided.
Borer damage to dry seasoned timbers.
Significant decay.
Poor sub-floor ventilation.
Recommendations to help prevent future termite attack.

A new technology available today is a thermal pest inspection. With standard pest inspections, reporting is restricted to those areas visible with the naked eye. Moisture meters are used, however it is not possible to check all wall surfaces with a moisture meter. Unfortunately most termite activity is hidden in wall cavities and is often undetected until termites reach the roof void, particularly if the structure is on a concrete slab footing as most Florida homes. By the time termites reach the roof void they have usually caused considerable damage to the wall framing timbers on the way up.

Thermal image camera inspections can extend the inspection boundaries into the wall frame. Termite activity gives off a large amount of heat and moisture which is detectable on wall surfaces using a thermal camera.

The bottom line is find someone you trust, pay them what they are worth, and rest assured that the home you are purchasing is solid, sound, and ready for you and your family.

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This market never ceases to amaze me. My newest listing is over 4 acres in Sorrento for only $139,000! The place has a 3/2 modular home on it or you can build your own dream home on it.

My favorite part is the land! The place is big enough to practice your baseball team. Too bad it’s not in DeBary, or I may have already built a t-ball field on it.

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Anyway, the mobile needs a little work but it is solid and sound. The land is private, and the neighborhood perfect! Have horses or dogs? They will be in paradise!

Visit my featured listings page to get more details on this property.

Discover a new lifestyle in Sorrento. Call me at 386.837.5300 to see this property, it won’t last!

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This house in the prestigious Summerhaven community of DeBary is a steal w/ a now reduced price of $229,000! Believed to have the biggest pool in the community, a huge back yard, and on a cul-de-sac to top it all off!

Quality all brick construction, 2,400 square feet, 4 bedrooms, 2 baths, what more could you want?

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For more information on this property, visit my featured properties page.

This home won’t be around long, call me at 386.837.5300 right now to see it!

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Have you ever had to move across the country? How about across your state? How did you find a home? What did you do to research neighborhoods? More importantly, how did you find your realtor?

More than likely, you called from a yard sign, walked into an open house, or called from an advertisement. Those days are gone! Thanks to our expansive referral network, you can know that you will be working with a professional no matter where in the country you go.

How does it work? Simply go to my contact page and enter your information. Make sure to give me details about the city you are moving to, your price range, and how many beds/baths etc. you need. Additionally, are you wanting in the city, land, condo? Whatever you desire, we can help.

I will then have an agent from our network contact you and you can rest assured you are working with a professional who knows the market and can provide the same level service you would expect from me.

Go ahead, click on my contact page and I will have someone contact you within 24 hours.

Unlike an automobile, you can’t test drive a home before you purchase it. You have to base your decision on other factors such as layout, condition and much more. And, of course, the seller is obligated to disclose the property’s condition that may alert you to issues such as previous mold, defective water heater or leaky roof. Yet, that still doesn’t always paint the entire picture. Here are six questions you should consider asking the seller to gain additional insight about the prospective home before you make a final decision.

1. Why is the seller selling the house?

This question may help you evaluate the “real value” of the property. Is there something about the house the seller does not like? If so, you may be able to adjust the purchase offer accordingly.

2. How much did the seller pay for the home?

In some instances, the answer to this question may help you negotiate a better deal. However, it is important to remember that the purchase price is influenced by several factors, like the current market value and any improvements the seller may have made to the home. The original purchase price might not have anything to do with the current value of the house.

3. What does the seller like most and least about the property?

By asking the seller what he or she likes most and least about the property, you might get some interesting information. In a few cases, what a seller likes the most about a home might actually be something the buyer is looking to avoid. For example, if the seller describes his house as being in a “happening neighborhood,” the buyer might consider this a negative factor because the area may be too noisy or busy for his or her taste.

4. Has the seller had any problems with the home in the past?

It is also a good idea to ask the seller if he or she has had any problems with the home while living there. Has the seller had problems with a leakage from the upstairs bedroom in the past? If so, even if the leak has been corrected, the floor and walls around the bathroom might have been damaged. You should check that these items were repaired properly.

5. Are there any nuisances?

Use this question to find out about barking dogs, heavy airplane traffic or even planned changes to the community, such as a planned street widening. This may give you insight on why the seller is really moving.

6. How are the public schools in the area?

Because the value of a community is usually greatly influenced by the public schools in the area, finding out the buyer’s perception can give you some insight about the quality of the area’s schools.
Knowing all you can about a prospective home will help you make a more informed decision as well as offer. Your real estate professional can be a great resource in helping you get your key questions answered and give you advice on how to evaluate your findings.

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I just listed a really cool piece of property in St. John’s Wood, in DeBary, FL. It is a great place to build your retirement paradise or a home for your growing family. Set at the end of Walrock road, the location is private and isolated with a lake view from a second floor. There will never be anything built behind you and this is one of the most sought after neighborhoods in DeBary.

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Check it out under my featured home section at www.rickmcbride.com.

The last step in the home buying process is what real estate professionals commonly refer to as “the closing.” The closing, or settlement or close of escrow, is when all the progressive steps in buying a home from the acceptance of the offer, title search, home inspection, mortgage approval, and so on, come together in a final transaction. The documents are ready to sign, the buyer is ready to hand over the purchase price and the seller is ready to transfer title—and most importantly the keys!

Usually held in an office setting, most require about an hour and may be attended by some or all of the various parties in the process: the buyer, seller, real estate sales professionals or attorney, and title-company representative.

What goes on during the closing? The buyer reviews and signs loan and real estate documents, as well as pays for the property, closing and other costs. One such loan document is the federal Truth-in-Lending disclosure form which describes the annual rate of financing (APR), finance charges, amount financed, total of payments and the payment schedule. There will also be a form itemizing what your monthly payment consists of including the principal, interest, taxes, insurance and other monthly charges. If everything is in order, the buyer signs the loan papers.

Real estate documents are just as important. There’s the HUD-1 form, which you have the right to inspect at least one day before the closing. This statement itemizes services provided and the fees charged for the entire real estate transactions. There will be a breakdown of the seller’s and buyer’s (borrower) financial obligations. Some of the charges include appraisal fee, credit report fee, loan origination fee, loan discount (points), title insurance fee, government recording fees, PMI Premium, inspections and attorney fee.

Other real estate documents that may be reviewed and/or signed include title documents, warranty deed (which transfers the title of the property) and other acknowledgment of reports.

Assuming that the funds are in order, the deed is correct and the title is clear, the final step is the disbursement of funds to the seller for the purchase price of the home. The title company should already have the loan funds in its possession, but the buyer will need to bring a cashier’s or certified check for the down payment and the closing costs if it was not included in the mortgage loan. If the buyer’s annual real estate taxes and homeowner’s insurance will be paid through the lender, an escrow account will also be established.

Once all the papers are signed and funds are disbursed, the buyer will receive the keys and is now a homeowner.

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A sale can be made or lost as a direct result of your home’s curb appeal. When it comes to selling your home, the first impression is probably the most important impression. If the outside of the property doesn’t create interest or appear well-maintained, a buyer may choose to not even come inside the home. Here are five ways to create curb appeal.

Paint and polish. A fresh coat of paint breathes new life into a tired-looking home. If your home looks dull or suffers from peeling, cracked or chipped surfaces, a paint job is a great investment. Polish the doorknocker and mail slot on the front door, as well as any light fixtures by the entry. Re-condition your deck. Consider renting a power washer to clean dirt and mildew from the wood, and then apply an all-weather sealer or stain.

Manicure the grounds. Mow and edge the grass, and trim the trees and bushes. Also, clear away dead leaves and flowers, and mulch and weed the beds. Check to see that tree branches are not touching the home’s roof or outer walls. Add some color to your landscape by planting annuals and placing planters of flowers in strategic spots. You can even spruce up the property by hanging flowering baskets. Add flowering plants in the back yard, too.

Make needed repairs. See if anything is unhinged, loose or just an eyesore. Fix everything including broken fencing, windows and screens. Make sure winter’s cold weather didn’t leave any gutters sagging or loose. Replace any missing shingles from the roof. Try the doorbell. Check stairs and railings. Test doors for squeaks and rusted hinges. Don’t forget to take a critical look at the property at night. Make sure the lights work, and replace dim and burned-out bulbs.

Unclutter. Tidy up the deck, patio and back yard. Rearrange the outdoor furniture to look inviting.  Put away gardening tools and toys. Clean up the barbecue area. Eliminate any “evidence” of pets, and restrict them to the back yard when showing the home. Move extra vehicles from the view of passersby.

Clean. Clean the windows, inside and out, wash down the walks and driveway, and hose down the siding. Clean outdoor furniture and cushions. Check for oil spots on cement surfaces, especially the garage floor.

The old saying about making a good first impression couldn’t be truer than when you are selling your home. Even the smallest enhancements can make a big difference in creating love at first sight for buyers.

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