If you are a first time homebuyer and depending on the 8K tax credit for your down payment, please read this article since this is no longer an option.
http://www.azcentral.com/arizonarepublic/business/articles/2009/05/18/20090518biz-downpayment0519.html
If you have any further questions regarding the tax credit or anything else regarding your sale/purchase please give me a call since I would lobe to help!
Tuesday, May 26, 2009
Wednesday, May 20, 2009
City Requires Higher Tax-data Accuracy in Real Estate Ads
www.baltimoresun.com/business/realestate/bal-md.property19may19,0,5952710.story
baltimoresun.com
City requires higher tax-data accuracy in real estate ads
By Julie Bykowicz julie.bykowicz@baltsun.com
May 19, 2009
A new Baltimore city ordinance requires the disclosure of more-accurate information about property taxes in real estate advertisements - an effort to clamp down on misleadingly low figures that can cause panic for buyers when they realize they have to pay far higher taxes than the previous owner.
The ordinance takes effect in about three months and means that ads may not state the current owner's taxes, which can include homestead credits and other tax breaks that do not transfer to the buyer. Instead, tax figures in ads must be a reflection of the property's most recent assessment multiplied by the city property tax rate of $2.268 per $100 of assessed value.
Mayor Sheila Dixon recently signed the ordinance, the council learned at a meeting Monday night.
Councilman James B. Kraft, who drafted the legislation, described the new measure as truth in advertising. "All of us around the harbor were hearing about this issue for years," he said, referring to other council members. Particularly in Canton, which is in his district, some sellers had been in their homes for 30-plus years, meaning their assessments and tax credits were not a true picture of what buyers would have to pay, Kraft said.
Kraft said he'd seen ads for properties listed at more than $1 million claim property taxes of about $7,000 when in reality the bill would be closer to $25,000. The misleading tax information was "causing all sorts of problems" when the new owner was faced with a higher assessment and none of the tax benefits.
Carolyn Cook of the Greater Baltimore Board of Realtors said her group worked with the council to develop a workable policy. At first, she said, the council asked for the ads to predict what the taxes would be the next year for a new owner - an "onerous task," she said, because houses are assessed at different times, usually once every three years.
Cook said the council decided to use the same formula used by the Metropolitan Regional Information Systems Inc., the company that runs the region's multiple-listing service.
She acknowledged that property tax promoted in some real estate ads "creates a lot of confusion among homeowners and others" because it was often pulled from the owner's last tax bill. As an example, she said, a tax bill for an abandoned home would be far lower than after it's renovated and sold - yet the figure for the shell kept popping up in ads.
"People seeing the ads weren't always making the connections," Cook said.
baltimoresun.com
City requires higher tax-data accuracy in real estate ads
By Julie Bykowicz julie.bykowicz@baltsun.com
May 19, 2009
A new Baltimore city ordinance requires the disclosure of more-accurate information about property taxes in real estate advertisements - an effort to clamp down on misleadingly low figures that can cause panic for buyers when they realize they have to pay far higher taxes than the previous owner.
The ordinance takes effect in about three months and means that ads may not state the current owner's taxes, which can include homestead credits and other tax breaks that do not transfer to the buyer. Instead, tax figures in ads must be a reflection of the property's most recent assessment multiplied by the city property tax rate of $2.268 per $100 of assessed value.
Mayor Sheila Dixon recently signed the ordinance, the council learned at a meeting Monday night.
Councilman James B. Kraft, who drafted the legislation, described the new measure as truth in advertising. "All of us around the harbor were hearing about this issue for years," he said, referring to other council members. Particularly in Canton, which is in his district, some sellers had been in their homes for 30-plus years, meaning their assessments and tax credits were not a true picture of what buyers would have to pay, Kraft said.
Kraft said he'd seen ads for properties listed at more than $1 million claim property taxes of about $7,000 when in reality the bill would be closer to $25,000. The misleading tax information was "causing all sorts of problems" when the new owner was faced with a higher assessment and none of the tax benefits.
Carolyn Cook of the Greater Baltimore Board of Realtors said her group worked with the council to develop a workable policy. At first, she said, the council asked for the ads to predict what the taxes would be the next year for a new owner - an "onerous task," she said, because houses are assessed at different times, usually once every three years.
Cook said the council decided to use the same formula used by the Metropolitan Regional Information Systems Inc., the company that runs the region's multiple-listing service.
She acknowledged that property tax promoted in some real estate ads "creates a lot of confusion among homeowners and others" because it was often pulled from the owner's last tax bill. As an example, she said, a tax bill for an abandoned home would be far lower than after it's renovated and sold - yet the figure for the shell kept popping up in ads.
"People seeing the ads weren't always making the connections," Cook said.
Friday, May 1, 2009
Getting Back to Normal
Ascending a mountain either by foot or by car can be exhilarating. We take in the incredible view for a while and then we come back down from the peak to a plateau. In other words, back to the normal view of the world.
Such has been the residential real estate market for the last five years. In our area, we reached the top of the peak at the beginning of 2006. And, all the way down from the peak, the media has chronicled every decline worrying sellers and buyers.
The latest Case-Shiller Home Price Index for our area shows that home prices have dropped 31% since the peak over three years ago. That statistic sounds shocking, however, the report shows home prices have simply returned back to the March 2004 levels when homeowners were very happy with the value of their property. We need to remember in just the 18 months from March 2004 to September 2005, there was a sharp 41% increase in prices due to very low inventory. So a drop to 2004 price levels is more like getting back to normal.
Another aspect of housing that is getting back to normal is mortgage-lending qualification. We hear concerns about lower qualification ratios and higher down payments that were ignored previously. We now understand that returning to previous reasonable standards is prudent. With a return to these standards and lenders willing to lend, the historically low interest rates are making today's mortgages even better than normal.
These and other factors are the reasons that a recent Gallup poll found that 71% of Americans think now is a good time to buy a house. If now is the right time for you or anyone you know, please allow me to assist in any way I can.
Such has been the residential real estate market for the last five years. In our area, we reached the top of the peak at the beginning of 2006. And, all the way down from the peak, the media has chronicled every decline worrying sellers and buyers.
The latest Case-Shiller Home Price Index for our area shows that home prices have dropped 31% since the peak over three years ago. That statistic sounds shocking, however, the report shows home prices have simply returned back to the March 2004 levels when homeowners were very happy with the value of their property. We need to remember in just the 18 months from March 2004 to September 2005, there was a sharp 41% increase in prices due to very low inventory. So a drop to 2004 price levels is more like getting back to normal.
Another aspect of housing that is getting back to normal is mortgage-lending qualification. We hear concerns about lower qualification ratios and higher down payments that were ignored previously. We now understand that returning to previous reasonable standards is prudent. With a return to these standards and lenders willing to lend, the historically low interest rates are making today's mortgages even better than normal.
These and other factors are the reasons that a recent Gallup poll found that 71% of Americans think now is a good time to buy a house. If now is the right time for you or anyone you know, please allow me to assist in any way I can.
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