Again we see Pittsburgh being hailed in the spotlight when it comes to the real estate market place. Pittsburgh is not without its share of issues but we are blessed to be able to say that we still have a strong economy and real estate market when compared to the rest of the country. Here is a clip from the actual article from the latest Pittsburgh Business Times.

Forbes Magazine named Pittsburgh the best place to buy a house on its new list of America’s Best Housing Markets.

Using the Housing Opportunity Index, a metric created by the National Association of Home Buildersand Wells Fargo, the magazine said Pittsburgh’s appreciating prices, affordability ratingand low number of foreclosures, which help keep prices stable, all factored into the city’s ranking.

Forbes said the decline of what it called Pittsburgh’s “manufacturing-dependent economy,” helped the region’s real-estate market avoid the sharp increase in prices that occurred in other parts of the country.

Other cities in the top 10 included Louisville, Ky. (2nd); Houston, Texas (3rd); Minneapolis-St. Paul (4th); Indianapolis (5th); and Columbus, Ohio (tied for 6th).

Last Sunday I was performing an open house at one of my listings when a young couple visited me. They had mentioned that they have been to several open houses that day and others prior to last Sunday. We talked casually about the home and their situation when they mentioned they currently own a home and have done so for the last number of years. At that point I had mentioned the “seller’s tax credit” and to my astonishment they looked at me like I was crazy. They emphatically stated they have never heard about this from any other agent at any of the open houses they visited or conversations they have had with other floor agents when calling offices.   I have again added the information below for home owners who would like to sell their home and purchase a new home. 

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The maximum credit amount remains at $8,000 for a first-time home buyer –– that is, a buyer who has not owned a primary residence during the three years up to the date of purchase.

But the new law also provides a “long-time resident” credit of up to $6,500 to others who do not qualify as “first-time  .” To qualify this way, a buyer must have owned and used the same home as a principal or primary residence for at least five consecutive years of the eight-year period ending on the date of purchase of a new home as a primary residence.

For all qualifying purchases in 2010, taxpayers have the option of claiming the credit on either their 2009 or 2010 tax returns.

More and more this is a common phrase that we as agents hear. It is a sinking feeling when you want or need to sell your home and you see your neighbors home being sold for less than you owe. There are many ways to overcome this scenario but you have to take the first step. That is to relax, breathe and don’t get overwhelmed thinking about it. This is the time to be patient and do your homework. Gone are the days where you could stick a sign in the yard, ask what you want and 3 offers come in. Will that day come again, yes! It will but we have to work through the market that we currently are living in. Buyers are still out there, the government has a great program available and we are swinging towards our most busy time of the year.

If this is you or someone you know then be calm, breathe and contact us so we can help you get through this trying time.

Lately  I have had meeting with home owners and their biggest concern was not selling their home. The fear of putting it on the market at a “bad time” of the year. I would like to explain that there is no “bad time” of the year; there are only times which are better than others. This “seasonal” selling season is about to be changed. Why you say, it is due to the new tax credit. This new bill allows for home owners who have owned their home 5 of the last 8 years to take advantage of the new version of the bill. The new Bill allows for a home owner to receive up to a $6,500 tax credit. It also has increased the income limits making it even better than before.

So why wait, contact your local agent today and get ready to take advantage of the new bill. Maybe your Christmas or New Years present can be to you and your family. Does the thought of a new home sound like the best gift ever!

This past week president Obama signed the expanded version of the tax credit to include current home owners who are interested in purchasing a new home. This new addition to the tax credit gives home owners who have lived in their home 5 of the last 8 years the opportunity to receive $6,500 back from the IRS. The new version also includes an increase of the income levels to both single and married couples that are first time home buyers and those purchasing a new home. Posted below are a few examples provided by RIS Media. If you have any questions or concerns please contact me for a PDF document with the details.

Example 1:
Jane purchased a home in 2002, lived there for 5 years as her primary home, moved out in 2007, and turned that home into a rental property. If Jane decides to buy a new primary residence today, she would qualify for the $6,500 tax credit based on the fact that she lived in the same residence as her primary home for at least five consecutive years out of the past eight.

Example 2:
Harry purchased a home in 2004, and lived there for the past 5 years as his primary home. If Harry decides to buy a new primary residence today, he would qualify for the $6,500 tax credit based on the fact that he lived in the same residence as his primary home for at least five consecutive years out of the past eight.

Example 3:
Nicole purchased a home in 2006, and lived there for the past 3 years as her primary home. If Nicole decides to buy a new primary residence today, she would not qualify for the $6,500 tax credit based on the fact that she did not live in the same residence as her primary home for at least five consecutive years out of the past eight. 

The tax credit applies to homes purchased for less than $800,000 before May 1, 2010. “If you sign a binding contract to purchase a home before May 1st, you would need to close on the transaction before July 1, 2010,” Nicholas said. “It works kind of like a gift certificate that can be redeemed for cash. You simply file a form with the IRS right after you buy your home, and the IRS will send you a check for the full amount of your credit.” 

The income limitation for single tax payers went up from $75,000 under the old rules to $125,000 under the new rules. For married tax payers, the income limitation went up from $150,000 to $225,000. “This means that more people will qualify for the credit – especially in parts of the country with higher costs of living,” Nicholas said. “This should help stimulate parts of the housing market that may not have been impacted by the old version of the credit.” 

Read more: http://rismedia.com/2009-11-08/expanded-version-of-tax-credit-will-allow-more-homebuyers-to-qualify/#ixzz0WMxbC3Go

The bill already passed in the U.S. Senate yesterday, so now it will advance from Congress to the White House for President Obama’s signature. The Administration already has signaled its support of the Home-buyer Tax Credit amendment as well as the President’s intention to sign the bill into law.

This is great news for all home buyers as the bill has been expanded to existing home owners looking to sell their home. I have included a link to a PDF document which details the old bill and the new bill side by side so you can compare the difference.

http://www.realtor.org/fedistrk.nsf/files/government_affairs_tax_credit_ext_chart_110409.pdf/$FILE/government_affairs_tax_credit_ext_chart_110409.pdf

Now more opportunities are available for home buyers and home owners!

Buyers should be aware that the time is quickly approaching that the first time home buyer’s tax credit will come to an end. The ending date is 11/30/09 but if you think you have till November to start looking and make your decision then you will definitely miss out. Keep in mind that unless you are paying cash there are variables you must consider. If getting a loan then you have to break that down into 3 segments; conventional, FHA and VA. For this analogy we will break this into two. Conventional, this will be slightly quicker as less 1st time home buyers are using this method. FHA applications have quadrupled in the last year due to the new lending restrictions. What that means is the normal FHA/VA loans take a week or two more than a conventional loan.

The next thing to consider is that like most people everyone has sat around waiting for the best deal. Now time is short and everyone that was sitting around has decided to get off the fence. There will be a surge of applications towards the end of the program. This means slower than normal loan approval and turn around for all loans conventional, FHA and VA.

Bottom line is “those who wait will miss out”! If you haven’t already done so then I would suggest making the short list soon and making your offers. Try to lock something in by 10/15/09 at the very latest so that you don’t miss out.

Oh, and for those of you that are saying “but the government might extend it”. Well I say look at the “Cash for Clunkers” program, it ended when they said it would.

Recently I had a client who was pre-approved through his local bank. We found a home, put in an offer which was accepted and then proceeded to move forward. We had the buyer go through the entire application process, coordinated the settlement company and the local bank so that things would move forward smoothly. They were until 5 days prior to closing when the local bank decided that the buyer needed an additional 10% to bring to closing. This obviously was not an option so we took the buyer to our mortgage broker who works with major companies such as Countrywide and Wells Fargo. The buyer was approved and the loan was closed in two weeks. That is correct two weeks!

Now this makes me wonder what is going on when all the major lenders have the tough lending requirements they do and were still able to get this guy the loan. They even stated that they have no idea why this buyer’s mortgage was changed in midstream as it was an easy loan for them to process. Is this a “red flag” that we should be concerned about? Is there a bigger issue going on with some of the local banks that communities should be worried about?

i guess the question needs to be asked; what happened to that bail out money!

Most buyers and sellers have no idea about the recent changes to the real estate industry that has a direct affect on their personal transactions. Fannie Mae and Freddie Mac have gone under extensive scrutiny and the outcome has brought on new changes in the way loans are handled especially in the appraisal area. In an effort to try and get a handle on the “bad appraisals” new codes were enacted on the way and manner an appraiser could be assigned and what guidelines they must follow when doing an appraisal. Like all new rules and regulations comes a period of questions, confusion and delays associated with the process. Let’s call that the “learning curve”. The National Association of Realtors (R) (NAR) has been working directly with the Federal Housing Finance Agency to make sure that the new codes work for all parties involved.  

I have included links to some of these new changes for your review including a Q&A form. I hope this helps in understand how the changes may directly affect all buyers and sellers.

  http://www.fhfa.gov/webfiles/14611/hvcc_NOTICE_7_22_09F.pdf

https://www.efanniemae.com/sf/guides/ssg/relatedsellinginfo/appcode/pdf/hvccfaqs.pdf

http://www.freddiemac.com/singlefamily/hvcc_faq.html

Many people have looked at the new $8,000 tax credit and said “well that doesn’t pertain to me because I used to own a home”. If this is you then wait a moment. Ask yourself the question, “has it been 3 years since you lasted owned a home”? If your answer is “yes” then you could be classified as a “1st Time Home Buyer”. I was recently speaking to someone who made the comment to me that they wished they had this great incentive back when they bought a home. I scratched my head and said “don’t you rent now”? “Yes I have been renting for 4 years”; well guess what this person actually qualified. The answer was clear, most potential buyers don’t know that they can actually be considered a “1st Time Home Buyer” and qualify for the $8,000 tax incentive. There is no repayment like the one created in 2008 which was a bust because of the repayment portion and lack of advertising. There are some other requirements but they are very simple. 

So if you are scratching your head wondering “do I qualify?” then contact me and we’ll discuss your situation. It will only take a few minutes but it could be the difference between you getting $8k back next year or owing Uncle Sam!