The New and Improved Home Buyer Tax Credit!

First-time home buyers have been eligible for tax credits of up to $8,000 since last January as part of this year's economic stimulus package.  The newly backed program will expand the credit to include existing home owners.  

Under the revised program, those who have owned a home for at least five years will be able to apply for tax credits of up to $6,500 when they purchase their next home.  To qualify, buyers will have to sign a purchase agreement by April 30, 2010 and close by June 30. 

The maximum purchase price on a home will be $800,000 with vacation homes not eligible. Income limitations are $125,000 for single tax payers and $225,000 for joint filers. 

Here is a link that outlines the new tax credit :

http://www.realtoractioncenter.com/realtor-party/documents/2009-NAR-Issue-Brief-Homebuyer-Tax-Credit-Changes-1104-1107.pdf

Have questions?   Check this link out.

http://www.realtoractioncenter.com/realtor-party/documents/2009-NAR-FAQ-Tax-Credit-Changes-1105-1236.pdf

I hope you find the information helpful.  Any questions, I am just a phone call or eamil away!

Tax Credit for Georgia Residents Buying A HOme

Another good reason to buy a home soon!  This applies to Georgia residents.

State Senator, Bill Cowsert, was successful recently in pushing through a bill that will provide for a $3600 tax credit for anyone purchasing a home or condo for use as their primary residence over the next 6 months.  It is House bill 261.  The credit is good up to the amount of the buyer’s tax liability not to exceed $3600 and is capped at $1200 per year, i.e. if they qualify for the full $3600 tax credit they would have to spread the credit out over three years taking a $1200 credit in each year

Stimilus Credit expained by a CPA

A number of my clients have asked for an indepth view of the tax credit so here it is!  This explaination  came from a CPA that I work with.

• If I Buy My First Home In 2009, May I Take The Credit On My 2008 Return? If you purchase your qualifying residence after 2008, and before December 1, 2009, you may elect to treat the purchase as made on December 31, 2008. This election allows you to accelerate the tax benefit of your 2009 purchase by one year. You may even make this election on an amended 2008 income tax return. Presumably, if you make this election, any income phase-out will be based on your 2008 income, even though you purchased the home in 2009. Also, if you make this election to take the credit on your 2008 return for a 2009 purchase, you should be exempt from the 2008 15-year recapture provisions and will, instead, be subject to the2009 36-month recapture rule.

The Federal Stimulus Bill made easy for buying a home in Athens, Ga

1. Up to Eight grand for new buyers:  This credit is equivalent to 10 percent of the purchase price of the home--although it's capped at $8,000--and applies only to first-time home buyers and principal residences. This credit does not have to be repaid.

2. First time buyers defined: For the purpose of this legislation, a "first-time home buyer" is someone who hasn't owned a principal residence for three years before buying a house. (The date of purchase is considered the day that the title is transferred.) That means if you've owned a vacation home--but not a principal residence--within the past three years, you would still qualify for the credit.

3. 2009 buyers only: Only those who purchase a home on or after January 1 and before December 1, 2009 are eligible for the credit. Anyone who bought a home last year won't be able to take advantage of it.

4. Income limits: The tax credit is subject to income limitations. Single buyers need a modified adjusted gross income of $75,000 or less to qualify for the full credit, that's $150,000 for married couples. Those earning more than these thresholds may be eligible for reduced credits.

5. Refundable: Because the tax credit is "refundable," qualified buyers can take advantage of it even if they don't have much tax liability.

6. Recapture: Buyers have to own the home for at least three years in order to capitalize on the credit. If they sell the home before then, they will have to return the credit to the government. (Exceptions will be made in certain cases, such as death or divorce.)

So, if you are ready to take advantage of this opportunity, contact me immediately.  The sooner we start looking, the more inventory from which to choose.

Should I get a home inspection on a home in Athens, Ga?

The Inspection Report
Are you looking for a home and becoming tired of house-hunting? If so, you may be tempted to buy a bargain-priced home "as is" and forego the home inspection. But without the inspection report, do you know what the "as it" refers to? Wouldn't it be better to know what condition the home is in before you buy it?

The inspection contingency allows the buyer to enlist the services of a licensed home inspector within three to seven days after the purchase agreement is signed. The inspector will go over the property from top to bottom, evaluating the condition of all the basic systems and structures of the home in order to identify conditions that may be considered material defects and thus may affect the market value or the safety of the home.

The inspector's report is the only documented proof of the actual condition of the property that is being sold. It is a valuable tool that helps you negotiate the sales contract and gives you information about future maintenance projects. The cost of an inspection is well worth the peace of mind it provides.
 

I'm so excited! Athens, Georiga ranks 24 in top places to visit!

The LA Times published an article on "29 places to visit in 2009"  this week and guess what?  Athens Georgia was number 24!  Check out the article below:

Real Estate in Athens, Georgia

It seems lately, no matter where I am the discussion of "hows the market?"  "Are you hanging in there?"  "What do you see the market doing" comes up. 

To put it in a nutshell, I am thankful that I live in Athens, Georgia.  With UGA  we seem somewhat insulated as to what is happening in other parts of the country.  Yes, the market is off, yes agents are dropping out of the business.  But I've been helping you folks for 20 years and I'm not going any where!  It is times like this that buyers and sellers need an experienced agent. 

For instance, last month our office was involved in 25% of all real estate transactions in our Athens MLS.  That is pretty strong, considering that we have 23 agents, and there are 750 agents in our Board of Realtors.  So I guess the bottom line is, things are selling.  Don't listen to the media and use an agent with experience!

Jim

Interest Rates

In Freddie Mac's results of its Primary Mortgage Market Survey the 30-year fixed-rate mortgage (FRM) averaged 5.14 percent with an average 0.8 point for the week ending December 24, 2008, down from the previous week when it averaged 5.19 percent. Last year at this time, the 30-year FRM averaged 6.17 percent. The 30-year FRM has not been lower since Freddie Mac started the Primary Mortgage Market Survey in 1971.

Our market in Athens

So, how is our market in Athens, Georgia?  I guess it depends on who you ask, as to what type answer you will get!.  I've been involved with our board of Realtors and helping clients and customers for 20 years and have been through this type market before.   Thankfully, I feel that our fantastic Classic City of Athens is somewhat insulated.  Yes, we have seen drops in certain parts of our market.  I believe we had a few areas that were over priced, but overall, Athens is weathering the storm. 

I was checking some stats in our local mls and our RE/MAX office had 25% of all sales closed during the month of November.  So at least we are selling 1 out of4 homes sold!  I'll post more later on our market

Due Diligence in our sales contract. What is it?

On Sunday  I discussed an offer with a client and was explaining the due diligence clause in our Georgia sales contract.  Simply put, the due diligence clause is a "no questions asked  I want out clause", or some peole say a "14 day test drive".  Yep, thats right.  Anytime during this period a buyer can simply say "I don't want it" and walk away.  The seller has no recourse.  Of course the seller can take back up contracts on the property in case the buyer decides to opt out of purchasing.

An example would be.  Mr Jones makes an offer on 123  Anywhere street.  In the offer he has a 14 days for his due diligence.  So, Mr. Jones has 14 days to do all his inspections, check for termites, get his financing, and basically decide if he wants to buy the home or not.  During this "due diligence" he can request repairs if he finds anything that he feels needs correcting.  Or if he is not happy with the home, he can just walk away.  But come the 15th day,  all his rights under the due diligence go away and unless there are other terms in the contract, he has to proceed to closing on the date in the contract. He can't go back and ask for repairs, seller concessions, or for that matter, anything. 

So that is the cliff note version of the due diligence clause in our contract!

Today some of us in the office were talking about foreclosures.

Today in the office some of us were talking about all the calls that agents are getting from buyers wanting to buy a forclosued home.  So I'm not going to discuss all the subject here today, but I will hit the high points.  First, there are a number of way to purchase a foreclosure. 

The first way is to buy a home off of the courthouse steps.  In Georgia, a home has to be advertised in the paper for 30 days and then is sold on the courthouse steps the first Tuesday of the month to the highest bidder.  Its an interesting process and well worth your time to see how it works.  This way of purchasing a foreclosure is not for the faint at heart.  The bank that holds the mortgage  on the property will most likely be there and start the bid at what is owed on the home.  In order to bid, you have to have the CASH to close and close within so many days.  Also, you are purchasing the home without seeing the inside. 

The second way is to buy a foreclosure when it goes on the market with the bank or a real estate agent.  Buy purchasing this way, you can inspect the home and see what needs to be repaired.  Most REO properties need some sort of work.  From minor cosmetic to a complete rehab.  So that home that is priced at $80,000.00 and looks good on the outside, might need $30,000.00 of work on the inside.  Some homes are liveable and some are not.  With a REO purchase you most likely will need a pre-approval letter from a lender a minimum of $500.00 earnest money to even have your offer considered.  The REO company will usually not do any repairs on a property or give any sort of allowance, nor will they do any financing.  What you see is what you buy. 

So if your interested in a foreclosure, my suggestion is to get with your lender and get a pre-approval letter, not a pre-qualifying letter.  Start talking to inspectors, so you find one you feel confident with, and start looking around at some foreclosures so your familiar with the condition of the homes.  Also, ask an agent to give you copies of the contracts that some REO companies use.  The paperwork is very pro owner and a buyer not only can lose their earnest money, they also give up a number of rights.  On that note, don't expect to change the paperwork, the REO company won't budge on this.  They simply will move on to another buyer. 

So yes, you can get a good buy on a foreclosure.  You can save anywhere from 10% to 50% on a home.  But you have to be in a position to put a lot of sweat equity or have some cash available to redo the home.  But remember, sometimes you can get caught up in buying a foreclosure.  I see a buyer purchase a foreclosure and say they got a fantastic deal.  When right down the street is a home the same floor plan, completely renovated and when all said and done, a better buy! 

I was asked: "Should I wait till spring to put my home on the market?"

I get this question all the time from sellers.  "Should I put my home on the market now or wait for spring?" My answer over the years is to don't wait on Spring.  My reasoning is that in spring everyone else is putting their home on the market.  The competition is gearing up. Everyone is sprucing up their yards.  doing spring cleaning.  All of a sudden you put up a for sale sign and what happens?  Five other homes go for sale! 

I see it happen all the time.   I get a customer in the winter looking for a home  in a certain subdvision.  There are none available.  Or maybe just one home for sale and its a two story and my clients need a one story.  So what happens?  They buy in another subdvison.

Then comes spring....houses go on the market.  Where there was one on the market, there now is five.  Yes, activity can bring more buyers to a area, but you also have more competition.  So to keep up, you have to make sure your house is better than the competition.  More landscaping, maybe even dropping the price.   I'm not saying that spring is a bad time.  But if you can,  I alway suggest putting your home on the market early and beat the rush. 

An interesting article

This article appeared in our Athens Banner Hearld last week.  I thought it would be of interest to evryone.

Athens to beat state in economic growth rate

ATLANTA - The Athens area will avoid a recession this year and grow at twice the rate of the rest of the state, according to Georgia State University's Economic Forecasting Center.

In a quarterly outlook released Wednesday, Georgia State economists predict metro Athens will add 1.6 percent more jobs - compared to the anemic 0.8 percent growth forecast for the rest of Georgia.

While Athens should dodge a recession, the local economy will see fewer new jobs in 2008 than in the last quarter of 2007, when the city added 2 percent more jobs.

The authors of the forecast note the recession-proof nature of the taxpayer-funded University of Georgia as the area's largest economic engine.

"For this reason, we expect the employment growth in Athens to remain stable and increase by 1.6 percent and 1.7 percent in 2008 and 2009, respectively," they wrote.

The local unemployment rate rose slightly from 3.6 percent in December of last year to 3.7 percent in the same month this year.

Published in the Athens Banner-Herald on 022808

Athens has a new Multiple Listing Service

Lets start with what is a MLS?  The MLS is short for Multiple Listing Service.  A MLS is a simply a database of all the homes for sale in Athens and the surrounding area.  For instance, an agent at anyone of the 100 companies in our area puts a home on the market.  Lets say the home has 3 bedrooms, 2 baths, located on the west side of Athens and has a bonus room with a price range not to exceed $200,000.   The information on the home is added to our MLS and the information is shared by all the agents that are members of the mls.   (currently over 700 members) Another agent is searching for homes for their client.  They put their requirements in the MLS.  Their buyer is looking for a home with 3 bedrooms, 2 baths, westside and a bonus room up to $200,000.   Up pops the home and others that meet their needs. 

With our new MLS, you two can serch for homes that meet your needs!  You can sign up for my "homefinder service" and recieve an email with the homes that meet your needs!  Its that simple!  So if you want to use my "HomeFinder Service"  just click or paste the link below and get started!

http://www.usamls.net/jimclauser/default.asp?content=home_finder&menu_id=97058

What's Going On In The World Of Mortgage Financing?

This piece was written by a fellow Realtor, Scott Asbell, and I have permission to post it.

Loan being sold

A past client of mine called me today and told me that her loan was sold to a new company and the letter she received said that all the terms of the original loan would remain the same, just the payment address and who the payment was made out to . The letter went on to state her terms of her original loan and the payment was wrong. The lette had her interest rate 1/2 percent lower than what she originally had. Her question was "Can I make the new lower payment?

My answer was "Yes you can, but it will catch up with you later!" When your loan is sold, none of the original terms can change. The only thing that can change is the escrow amount that you pay in for taxes and insurance. If the new loan service company makes a mistake, they will figure it out sooner or later. My advice to her was to call the lender and tell them of the mistake. I also advised her to send in her regular payment amount, then check and be sure the payment was posted correctly. Sending in a payment less than the amount can even go on your record as a late or missed payment!

General infomation on Athens

Athens is a prospering community, one that reflects the charm of the Old South while developing in cultural and industrial areas. It is located approximately 70 miles east-northeast of Atlanta, Georgia. Athens is at the heart of a three-county metropolitan area of 126,000 people. Athens and Clarke County share a common local government. The Clarke County population, according to a 1990 census estimate, is 86,000. A college town in every sense of the word, Athens appreciates its University population while recognizing its obligation to all residents to grow independently of the University.
The University of Georgia and Athens have grown up side by side. When its founders were looking for a site for the new university, they sought a remote location where students would be isolated from the temptations of urban life. The town was named for its Greek counterpart, a great center of learning. Athens' elevation is 600 to 800 feet above mean sea level, and because of its geographic location, the city is sheltered from much of the extreme weather of the winter season. Mean temperature for January, the coldest month, is 43 degrees F., and for July, the warmest month, 79 degrees F. Average minimum and maximum temperatures for January are 33 and 53 degrees F., and for July, 68 and 89 degrees F. Average rainfall is 50.42 inches.

Welcome to my real estate blog for Athens and the surrounding area!

Welcome to my blog. I've been investigating having a blog for over a year now, and finally decided the only way to do it is to jump on in there! So, I consider this a work in progress! My goal is simple. To make this your site for all kinds of real estate information on our Classic City! So, any questions on our market or anything about real estate, just ask.

I look forward to you visiting over and over!

Jim