Details, details...a short blog entry regarding details for the $6500 tax credit for current homeowners.

If  you have lived in your current residence for at least five years and you buy a new home, here's a brief rundown of the requirements for the credit:

*Effective date:  11/6/09

*The contract on your new home must be binding and effective by April 30, 2010.

*You must close on the new home by July 1, 2010.

*Income limits:  $125,000 single person, $225,000 married couples.

*Purchase price of your new home must be $800,000 or less.

*You do not need to sell your current home to claim the credit but you must occupy the new home as your primary residence.  You can keep the first home as an investment property or second home.

*You must keep the home you purchase at least three years or a portion of the credit must be paid back.

Thinking of sellilng your current home and buying a new one?  Use the next couple of months to get your home 'show ready' to put on the market in January.  Start looking  now for the type of home you want to buy--visit open houses, look on line, interview realtors. Do your homework, be prepared and take advantage of this opportunity to upsize--or downsize--your primary residence while interest rates are low.

Need more information about home prices in your neighborhood?  Email me and I'll send them to you.

Thanks for reading my blog!   maryhutchison.org

There is an interesting article in Time Magazine, posted today, titled "Reinventing the McMansion".  The story talks about how larger homes, in the 4000-6000 SF range, are languishing on the market with few interested buyers.  However, there are some intriguing new possible uses for these gigantic homes:  to house older children aging out of foster care or perhaps multi-generation families can share the space. 

The American Dream includes a home of your own--and during the real estate boom it was 'bigger and better'.  Families traded up to huge homes, newly built in the far flung suburbs, with soaring ceilings, a personal bathroom for everyone, separate 'media rooms' and large bedrooms with walk in closets. Is bigger really better?  I say no..and there is evidence that these McMansions are no longer desirable, even to those who can afford them.

There are practical reasons: large homes suck up a lot of energy, using more water, heating fuel and electricity.  Daily round trips to the office require more gas and time.  Even a trip to the grocery store or to 'the city' for a special event means more planning and time involving traffic hassles.  Families living in these large homes can often spend most of their time separated from each other--each child in his or her own little world tucked away in a bedroom, complete with personal TV and computer; Mom in the huge gourmet kitchen and Dad spending an hour on the highway to get home.  This lifestyle is alienating as well as expensive.

This recession has really brought home the fact that bigger is not always better in housing.  I have heard of many buyers who want to 'downsize'-- a 2000 SF home is plenty. They want lower utility bills and building maintenance.  And if the kids need to share a bathroom--well, they will adjust. Buyers want walkability in their neighborhoods--the ability to walk or bike to a restaurant or grocery store, to school or the park.  That's why homes in Brookside and Prairie Village will always be popular:  there's plenty of home styles and sizes to fit most any requirement, with schools and shopping within a short distance.  City amenities, too, are just a few miles away.  Sharing a smaller space can bring a family closer together--more interaction and sure, perhaps more arguments and compromising. 

If you have a smaller home, appreciate what you have and get creative with your current space to utilize it fully.  Buyers need to seriously think about the additional costs and change of lifestyle when considering a large home purchase.  There will always be more buyers for a smaller home than a McMansion.

Your comments are welcome...  email me or visit my website.  Thanks for reading my blog!

It's not as easy to buy or sell a house today as it was three years ago.  New rules and regulations, much needed, are popping up all over.  If you are buying or selling a home RIGHT NOW, you need to know about the new Truth in Lending law, aka Mortgage Disclosure Improvement Act.

What is Truth in Lending?  That is the paperwork with outlined estimated costs to the buyer for purchasing the home.  All closing costs are displayed, including tax prorations, insurance, escrows, APR, etc.   The Mortgage Disclosure Improvement Act (effective July 30, 2009) now requires a specific timetable for the buyer to review the charges. This Truth in Lending paperwork will come from your lender.

Once the buyer has a signed contract for a property, the lender must supply this TIL document.  This is for the protection of the buyer--so the buyer can review the charges associated with the purchase of the home well before closing. Note these deadlines:

• No loan may be closed prior to seven business days after the buyer receives the initial TIL statement. 
• If the loan terms change between the time of the signed contract and closing (due to inspections and/or renegotiations, change of closing date, etc), and these changes cause the APR to increase or decrease more than .125%, a NEW TIL statement must be prepared for the buyer's review. 
• The buyer must have this updated TIL statement for review at least three business days before closing.

Let's look at a couple of examples. If you have a contract to purchase a home for $150,000, your lender will send you an initial TIL statement based on that price and other terms of the contract.  After inspections, you and the seller agree to drop the price of the home to $140,000.  That's approximately a 7% price drop.  Therefore, your lender needs to write up a new TIL statement reflecting the charges that go along with the new agreed upon price.  And you have to have that statement for at least three days prior to closing.  Or, let's say the price doesn't change but as a buyer, you decide to close 3 weeks earlier than initially planned.  That is going to affect the interest paid, taxes paid, and other closing costs by more than .125%--so a new statement must be issued reflecting the updated numbers.

How does this affect the seller?  The seller better be sure that the buyer's lender is following these new rules correctly or there could be delays in closing.  And nothing is worse than last minute delays in closing--for either party.

Talk over these new rules with your listing agent and/or buyer's agent.  Your agent should be keeping up with these new regulations and keeping you informed at every step that they are being followed!

Thanks for reading my blog. Need information on real estate prices in your area?  Email me!

It's summertime in Brookside and I'm loving it!  Yes it's hot and sticky, but I couldn't live in a city that didn't have the full change of seasons.  Despite the constant drumbeat of gloomy economic news, high unemployment rates, higher inflation and stalled economy, every day I'm thankful for where I live.  And here's why:

As a real estate agent, I often get asked about neighborhoods. And there are several great neighborhoods in the greater KC area.  But Brookside is special.  It's an area that continues to hold home values despite the reputation of the KCMO school district.  It's an area of singles, families, empty nesters, and older folks -- on every block!  And the home prices here range from a $150K fixer upper to $1million--all within a three mile radius.  And it's an area where all the houses are different.  Several styles of homes: tudors, two-and three story homes, bungalows.  Built up from the early 1900s to 1930s, there is a mix of styles and interior features.  Exteriors feature stucco, wood shingle, brick, concrete, tile roofs. 

More specifically, here's a few specific reasons why I love Brookside.  I was thinking of these special features when I was on a bike ride with my daughter last week...

Brookside is a walking neighborhood (although we do have excellent bus transit as well).  Even when it's 95 degrees with 100% humidity, you see people out walking the streets:  dog walkers (who actually pick up after their pets), kids in strollers and on bikes, folks walking with grocery bags or jogging on the Trolley Track Trail.  This encourages...

Interaction among strangers.   People here nod when passing others on the street, walking by, make space for bicyclists to pass.  Mostly everyone is smiling and enjoying the outdoors, acknowledging the community atmosphere.  And strangers can become friends--it's easy to see the same faces walking about at the same time of day, we are more aware of what's going on outside of our homes.

People make an effort to know their neighbors.  When I sell a house in Brookside, the buyers are often telling me how the neighbors came by within a day or two of moving in to welcome them to the block!  There can be an instant sense of community here. 

Many of the shops are locally owned. Sure, we have a Baskin Robbins and Mr Goodcents, but we also have Stuff and Worlds Window,a farmer's market,  the Roasterie Cafe, Avenues Bistro and Foos Frozen Custard...and who doesn't love spending time in The Dime Store?  Brookside residents support local businesses with their dollars and the local merchants support the community with donations in kind and attractive, clean  store fronts and landscaping.

Annual special events.  The St Patrick's Day parade, the Brookside Art Fair, July Sidewalk Sale--of course anyone in the KC area can participate but these small events again promote that sense of unity and friendship we share as Brooksiders.

Part of the magic of Brookside is the way the neighborhood is laid out.  Homes line all of the streets, there are no large parking lots cutting off pedestrians from the stores, parking is easy and speed limits are lower. We don't have cul-de-sacs or large, major traffic intersections or highway access close by.  Most homeowners take pride in maintaining and enhancing  their properties' curb appeal.  

If you are thinking of a move to the Kansas City area, consider Brookside as your next home.  You may never want to move again!

Thanks for reading my blog.  To contact me, send me an email or visit my website.