5 Tips on How to Take Advantage of the Home Buyer Tax Credit Before Time Runs OUT!!

The homebuyer tax credit can deliver meaningful savings, but only for those who have a binding contract to purchase a home in place on April 30, 2010. With that deadline bearing down, potential buyers who want to capture the tax credit had better get serious about home shopping. It is possible to find a home and get it under contract in a month or less. But it will require intense focus on the part of both the buyer and the buyer’s real estate agent.

Two versions of the tax credit are still being offered; 1) a maximum credit of $8,000 for first-time buyers (and those who last owned a home 3 or more years ago), and 2) a $6,500 credit for current homeowners. Either way, the credit applies only to the purchase of a new principal residence costing $800,000 or less (there are also income restrictions and other limitations, including a requirement to close the sale before July 1st).

Buyers eager to capture the tax credit can streamline their home shopping by utilizing these 5 fabulous tips!

1. Get to Know Your Market.

Buyers can learn more about their market through using Internet sites which permit you to see the homes currently on the market, and by finding a good real estate agent who is ready to expedite the shopping process. A capable agent can guide buyers through the home search process and save them a lot of time. New listings can be emailed to buyers as they are posted. Buyers can then check on the market on a daily basis. They will be made aware of what properties are coming onto the market and which ones have sold.

2. Line Up Your Financing.

Talk to your banker or another reputable lender right away to go through the pre-approval process. This will tell buyers quickly how much they can borrow. At today’s extremely low interest rates, that amount may be more than most buyers imagined. But either way, the process will help buyers determine how much they are willing and able to spend on the home.

3. Start Narrowing Your Search.

With a large inventory of homes to choose from in the current market, buyers won’t have time to look at everything in their price range. By establishing specific criteria of the home they want, buyers can eliminate homes that won’t fit their needs. If you can tell your real estate agent where you want to live, and how much you can invest, you should be well on your way to a successful home search.

Buyers should factor in their daily commute. Few of us want to be more than 45 minutes from work. If buyers need access to public transit, then that also shapes their choice. And if they have children, schools are going to be a factor. Ideally, you can narrow your search to one or two communities rather quickly.

4. Keep Things in Perspective.

As nice as it may be to get the tax credit, don’t let the desire to do so completely control your home search. Some buyers are quick decision makers, and others aren’t. If you like to think over important decisions, take the time you need. The tax credit is a great incentive, but an $8,000 credit equals just 2.5% of the price of a $320,000 home. Buying the wrong home can end up costing you a lot more.

5. Leave Time to Handle Standard Contingencies.

The typical purchase contract may have several contingency clauses, for such things as a home inspection, attorney’s approval, obtaining financing and even the sale of the buyer’s current residence. Fortunately, standard contingencies in a contract won’t prevent it from qualifying for the tax credit. But, the more contingencies you have in a contract, the greater the risk that it won’t close. For example, if an issue arises in the home inspection, and it can’t be resolved, the buyer may want to find another house, but doing that after April 30 will mean losing the tax credit. Allowing time to work through the contingencies before the deadline reduces that risk.

BUY by April 2010 - Or You'll Regret it!!!

THE TOP 3 REASONS WHY TO BUY BY APRIL 2010

(So important, I only needed 3 Reasons!!)

GREAT NEWS!! Current market conditions have made it an ideal time to purchase for both first-time and trade-up buyers! If you have the means and the desire to buy, you should do it by Spring 2010!...Or else you’ll be kicking yourself, because you aren’t going to have such a great opportunity again anytime soon.

Here are 3 reasons why you’ll regret not buying your new home by April 30 2010.:

1. You won’t receive a sizeable amount of money from Uncle Sam.

For the past two years, the federal government has offered a home buyer tax credit to help stimulate the economy. But that financial incentive is set to expire very soon. First-time buyers who aren’t under contract to purchase a home by April 30, 2010 will leave the $8,000 available to them through the tax credit on the table. Meanwhile, repeat buyers will miss out on the opportunity to collect up to $6,500 from the government.

2. You might not get locked in on the historically low interest rates.

Thanks to measures taken by the Federal Reserve, including the purchasing of mortgage-backed securities, interest rates have remained historically low for several years. With the economy beginning to show signs of recovery, it is widely believed the government will soon put an end to these stimulus efforts.

If this happens, many economists believe we will begin to see a sharp increase in interest rates, which could result in a much higher monthly payment for those who wait. For example, an interest rate increase of 1% on a 30-year fixed mortgage of $300,000 could cost a buyer $188 more a month or $67,000 more over the span of the entire loan. Don’t miss out on these once in a lifetime rates!

3. You’ll miss out on record home price affordability.

Home price affordability is at its most optimal level in decades. As a result, those who wait to buy will likely pay more for the home they purchase after April 2010 than what the same home would cost right now. In fact, home prices have already begun to rise slightly in some markets. Instead of getting a better bargain, waiting to buy a home might net buyers a higher purchase price, less appreciation and less house for their buck. Don’t waste your money!!

There is no time to waste for anyone who wants to take advantage of this great buying opportunity!!!

GOING GREEN IN WNC: 5 Fab reasons to think green!

There are a variety of reasons to go green, but most come back to supply and demand. We have a limited amount of resources available with more and more people using them up. If we want our future generations to enjoy the same standard of living we've experienced, we need to take action.

#1. GREEN BUILDING is a great place to start, as buildings consume 14% of our potable water, 40% of our raw materials, and 39% of our energy in the United States alone (according to the US Green Building Council) That's 15 trillion gallons of water and 3 billion tons of raw materials each year!

The office of the Federal Environmental Executive defines a green building as:

"the practice of 1) increasing the efficiency with which buildings and their sites use energy, water, and materials, and 2) reducing building impacts on human health and the environment, through better site planning, design, construction, operation, maintenance, and removal - the complete building life cycle."

Buildings are responsible for almost one half of all greenhouse gas emissions today. Therefore, sustainable properties are the future of the real estate industry. Consumer demand and government policy are making this happen. Many consumers, real estate professionals, and property owners are taking steps towards greening their properties.


#2. FOR THE ENVIRONMENT
Want to make the world a better place? Implementing green practices into your home or office can help reduce waste, conserve natural resources, improve both air and water quality, and protect ecosystems and biodiversity. Building green is one big way you can make a real difference in the world.


#3. FOR YOUR HEALTH
Want to live healthier? Green building isn't just good for the environment; it's also good for YOU. Sustainable design and technology enhance a resident's overall quality of life by improving air and water quality and reducing noise pollution. According to a 2006 study by the Center for the Built Environment, University of California, green office buildings improve productivity and employee satisfaction in the workplace.

#4. FOR THE SAVINGS
Want to make your dollar go further? Green systems and materials reduce energy consumption, which in turn reduce your energy bills. They also increase asset value and profits and decrease marketing time; making your dollar go further for longer.

#5. RESIDENTIAL ENERGY EFFICIENCY INCENTIVES
Homeowners can qualify for a variety of federal tax credits by making home envelope improvements, heating and cooling upgrades, and by installing onsite renewable generation. All incentives are in effect for measures placed in service during 2009 & 2010, unless noted otherwise. Check out the Database of for State Incentives for Renewables & Efficiency for more information.

Five Fabulous Reasons to Buy Real Estate NOW!

FREEDOM TO CHOOSE
Now, unlike several years ago, the real estate market has large inventories in many areas. The length of time on the market to sell a home has increased which helps create the large inventory of homes. This includes everything, new construction, existing homes, and foreclosures. Buyers can peruse the market and have the freedom to select the home they really want. If you're interest is in a new home, know that many developers are getting more competitive with their pricing because they also have taken a hit by the ailing economy.


MORTGAGE RATES ARE AT ALL-TIME LOWS
Mortgage rates reached their 2008 apex in July, when the long-term average rate hovered just below 7%. They’ve since plummeted to below 5%, and there’s strong evidence supporting the idea that mortgage rates could dip to an even lower figure before the end of 2009. This makes financing your home significantly easier, as the money you spend over a thirty year period paying off your house gets lowered to something you may actually be able to afford.


HOME PRICES ARE DROPPING
Home foreclosures have a close relation with home prices, and the fact that so many people have been forced to foreclose make it easy to predict that the price of homes across the country have dropped a great deal. Prices have dropped by 30% in such metropolitan cities as Los Angeles, San Francisco and Miami and 40% in Las Vegas and Phoenix. Nationally, prices have fallen more than 21% in the past year. The national average has gone down each of the last 27 months.


DESPERATE TIMES CALL FOR DESPERATE TIMES FOR THE FHA
The Federal Housing Administration is offering 3.5%-down mortgages to qualified buyers despite the fact that the subprime loans these types of buyers would be borrowing from have already dried up. Last year, over 630,000 individuals bought homes in part because of the FHA’s low down mortgage rate, and there are many experts who believe that FHA loans have been the driving force behind real estate sales recently. Applying for an FHA loan is rather easy. Just follow these simple instructions.

FEWER BUYERS MEANS MORE NEGOTIATING POWER FOR YOU
Sellers, with the help of their real estate agents, still need to sell their homes .The fact that there exists less competition on the homes you’re considering could translate into better savings for you. Be smart when talking to agents, and remember that the struggling market has given you the upper hand in determining price.

Getting Started

Entering today's housing market can be pretty intimidating, but it certainly doesn't need to be scary.

My Fab Five explores all of the "Ins and Outs" of today's market to help you be better prepared to MOVE ON UP!!

Follow this priceless advice and you too will be ready to tackle the next chapter of your life! Here's to your future!