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Archive for the 'First Time Home Buyer Info' Category

First Time Home Buyer Tax Credit Approved

By a Vote of 98-0

As was expected and over reported on , the FTHB tax credit legislation has been approved by the House of Representatives.  President Obama is projected to sign the bill by next Friday.

Plan Revised

While FTHB’s will continue to get the $8K credit if in contract by April 30th, the new legislation also includes a tax credit for move up buyers of $6500 if, as with the FTHB, they are in contract by April 30th and close by June 30th.

Move up buyers must have been in their present home for 5 years to qualify for the tax credit.

Click here for a comparison chart from the NAR!

Income Levels

The income levels have also been extended from $75K for a single person and $150K for a couple to $125K and $225K respectively.

That opens the door to more buyers over the course of the next 6 months and will go a long way to increasing sales nationwide.

Now all we need are some homes to sell!!

Pros & Cons

As with everything, there are up sides and down sides to the tax credit but overall, my opinion is that it will help some people who really need the help to get into a home.

It will be icing on the cake for everyone else.  Except investors.

The way this appears is that the tax credit will only be for those looking to occupy their homes and not non owner occupied buyers which makes sense.

Have questions?  Use this link as a resource.  Click here.

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Tags: first time home buyer tax credit

First Time Home Buyer Tax Credit Vote Delayed

More Political Wrangling

Bloomberg is reporting that the U.S. Senate vote on the first time home buyer tax credit extension to all first time home buyers has been delayed until next week.

The delay is due to Senate Republicans demanding a vote to end the TARP by the end of the year.

Program Changed

The program, so it’s been reported, will include move up buyers who have owned their present home for the last 5 years will be eligible for a tax credit of up to $6500 over the same time period.

When the tax credit for move up buyers begins is unclear but I’m assuming it will begin on December 1, coinciding with the expiration of the first program.

Full details haven’t been released yet and even this may change between now and the vote that’s expected to take place next week.  Stay tuned!

Looking for your first home or to move up to a larger home?  Please contact us if we can help you.

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Tags: first time buyer tax credit

FTHB Tax Credit Update

Partisan Wrangling in Senate Could Postpone Vote

The First Time Home Buyer Tax Credit is up for a vote in the Senate  but do to the attempt to attach it to legislation regarding the extension of unemployment benefits, it will, in all likelihood, be delayed.

Hopefully they’ll get it done later in the week.

Click here for the update.

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Tags: first time buyer tax credit

Buying a Home in the Sacramento Region

Understanding The Market

The Sacramento real estate market is presenting buyers with challenges at the moment.

This article is about getting better acquainted with our market so that you can make offers in as strategic a manner as possible and finally buy a home rather than just making offers without success.

Education is key to success in any market and the Sacramento real estate market is no exception.

1) The Inventory of Homes for Sale is Low

The banks are in control of the real estate markets nationwide at the moment.

I speak to agents from Maine to Florida to Southern California to the Canadian border weekly.

The story is the same.  There just aren’t as many homes to sell as there were last year.

Lack of inventory creates a “frenzy”,of sorts, the result of which is that homes stay on the market for a very short time.

As of this article, there are 6121 single family homes and condos available in active or active short sale status listed in the MLS.

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Tags: buying a home sacramento rocklin roseville

First Time Home Buyer Tax Credit To Be Extended

U.S. Senate Could Approve This Week

According to an article posted on APP.com , Senator Bill Nelson of  Florida is citing that the tax credit should be extended later in the week through 2010.

Gradual Reduction

Although the tax credit will be extended, it could be reduced gradually throughout the year.

Buyers purchasing from the time of the extension will get the full $8,000 to April 1st.  After April 1st, the tax credit will be reduced $2000 per quarter to the end of the year.

Personally, I think this is a great idea.  It promotes purchases in the otherwise slow selling season and puts pressure on buyers to get their purchases behind them to take full advantage of the tax credit prior to April 1st.

Two Proposals

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Sacramento Homes for Sale

Sales Down, Sales Prices Up

Average home sales prices have gone up every month consistently since May in Sacramento while home sales have continued to dwindle.  Concurrently, the inventory of homes for sale has steadily decreased in Sacramento since the beginning of the year.

The appreciation may be short lived depending on when and if the banks release the homes that have been foreclosed on to the open market.

The total number of  foreclosed homes not on the market could be as high as 30% of homes owned by the banks in the Sacramento real estate market.

Average Sales Price Increases

The average sales price in Sacramento climbed 1.75% since August and 3.5% since May for all zip codes of Sacramento.  There are some areas that have appreciated a little faster than others due to the values being lower in these areas than others.

The first time home buyer tax credit is accounts for the competitive sales environment we’re experiencing.  It expires November 31st and at present, there is no definitive sign that it will be extended.

Right now, first time home buyers are scrambling to get into escrow.

Most every home for sale has multiple offers and all offers must represent the buyers highest and best terms and price in order to be considered.  The only offers getting a counter offer are those selected to be the highest and best offer.

Don’t Buy Because of the Tax Credit

At this point, if you’re not already in escrow, it might be a good decision not to try and purchase to close prior to November 30th.

The tax money, while attractive, will be long gone in the short term and you’re going to live in your home, hopefully, for the long term. 

Hurrying to buy a home could cause you to pay too much for something very important and make a poor decision in the process.

Think about the opportunities that will exist after the tax credit expires.  Hopefully there will be a little less competition as the holidays are upon us and most folks will be preoccupied.

If you need help buying a home, please contact me.

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Tags: homes for sale sacramento

Why Bank Owned Homes Are Difficult To Finance

Seller’s Take the Path of Least Resistance

Most bank owned homes are challenged.  Generally they are not in good condition and the homes that are in good condition are receiving multiple offers.  The sellers of these homes would rather take a lower all cash offer than to even attempt to get a financed offer closed.

Add this to the fact that the lenders are more strict than ever in demanding that they asset they are loaning against is in good condition and who can blame them.  They want to make sure all of the safety hazards have been addressed and at a minimum the home is needs as little fix up as possible.

Unless you’re getting a rehab FHA loan, it’s tough out there especially for the first time home buyer.

The home I visited today was typical of the bank owned homes in the Sacramento real estate market.  If you have questions, please feel free to contact me and I’ll respond to your questions promptly.

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Tags: sacramento foreclosed homes