~Stimulus Updates~

Tax Credit for Homebuyers

First-time homebuyers who purchase homes from the start of the year until the end of November 2009 may be eligible for the lower of an $8,000 or 10% of the value of the home tax credit. Remember a tax credit is very different than a tax deduction – a tax credit is equivalent to money in your hand, as opposed to a tax deduction which only reduces your taxable income.

The tax credit starts phasing out for couples with incomes above $150,000 and single filers with incomes above $75,000. Buyers will have to repay the credit if they sell their homes within three years.

Additional Housing-Related Provisions

Tax Incentives to Spur Energy Savings and Green Jobs — This provision is designed to help promote energy-efficient investments in homes by extending and expanding tax credits through 2010 for purchases such as new furnaces, energy-efficient windows and doors, or insulation.

Landmark Energy Savings — This provision provides $5 Billion for energy efficient improvements for more than one million modest-income homes through weatherization. According to some estimates, this can help modest-income families save an average of $350 a year on heating and air conditioning bills.

Repairing Public Housing and Making Key Energy Efficiency Retrofits To HUD-Assisted Housing—This provision provides a total of $6.3 Billion for increasing energy efficiency in federally supported housing programs. Specifically, it establishes a new program to upgrade HUD-sponsored low-income housing (for elderly, disabled, and Section 8) to increase energy efficiency, including new insulation, windows, and frames.

More Listings Coming Soon…..

Looking for a new home in Baltimore? I have listings coming up within the next month both in Roland Park and in the Hampden neighborhoods.

Give me a call if you are in the market for a new home since I can get you into my listings as well as homes that aren't even on the market and just before the spring market arrives!

I Just Saved My Client $4,500!

My client was working with a mortgage broker and had received their pre-approval letter and were ready to buy. Before we got started I asked that they speak with a direct lender whom I have had excellent dealings with in the past in order to compare rates etc. My buyers agreed and boy were they glad they did...

It turned out that the mortgage broker had charged them $4,500 in lender fees. THIS IS INSANE! Now my buyers can breathe easier when it comes to their upcoming closing costs and now we are “Under Contract” with the home of their dreams!

I’m so glad they took the time to shop around & I’m certainly glad to have such an honest and competitive contact in the mortgage industry. Next time you are looking into a loan, remember to watch those fees!

Short Sale Quick Facts

Chances are in today's market you are hearing a lot about short sales since they seem to be popping up everywhere. Is it a good deal for the buyer & seller?

A short sale contract is between a buyer and a seller where a buyer gets a clear title and the lender agrees to accept less money than what is owed on the house.

· Contacting your attorney & tax advisor is a MUST before entering into a short sale contract.
· Takes approximately 4-8 weeks for an approval/denial on an offer
· The new owner must use as added income on the income tax (Phantom Tax)
· Lender can sue seller for remainder owed after short sale

Keep in mind that short sale properties are listed in the MLS and must be stated that the home is subject to lender approval. This can be a very timely process to both list and sell but if you have the time or are looking for an alternative to foreclosure, a short sale may be your best option.

The "Wait Until Spring" Fallacy

Real estate legend has convinced many people who need to sell their house to "wait until spring" to put it on the market. One of the reasons given is that the exterior of the house shows better. So does every other house, which negates any competitive advantage for spring showings. Another reason is the thought that buyers with school age children would not buy until it's near the end of a school year. However, there is a very large segment of the population that does not have school age children living with them. In addition, relocating families move all times of the year. The two major reasons given for waiting are not significant factors.

The real issue for not waiting for spring is how the real estate market works. With real estate as a commodity, when inventory rises, a downward pressure on prices arises. Belief in the fallacy of waiting until spring causes an influx of homes on the market at one time. With more inventory of homes in the spring, buyers have more choices and offer lower prices than they would when inventory was lower.

For buyers, now is the time to act with the combination of incredibly low interest rates and government incentives. If you or anyone you know would like to discuss the realities of the real estate market with me, please contact me.