Waiting to buy

Sellers In Control: Now Is The Perfect Time

Given all the negative news in the media about the housing market and economy in general, this question may be on the mind of many homeowners. It’s A Very Good question…Lets address why you should sell NOW.

Many homeowners have put their lives on hold for almost 3 years now, waiting to sort out all of this real estate and economic mess that has flowed our way. Certainly, many good people have lost their homes as a result of this chaos, but far more have equity (although not as much as in 2007) and have simply been waiting for the market to sort itself out. Well….it’s sorted itself out quite nicely for homeowners, and if you are looking to sell, right now is a great time.

Why? Well at the moment we have far more buyers than sellers, and sellers are in control of the market at the moment. Our inventory is way down in the Riverside area…surrounding areas too. All the bank repos that were supposed to be in the works are hiding somewhere in the “big bank repo closet” and are only trickling out at best. There are more short sales on the market than ever before, but that still represents only a small fraction of what we need to satisfy our buyer demand. That leaves “regular” sellers to fill the void…and regular sellers have been sitting on the sidelines for the past 3 years, only selling when they have too…not when they choose too.

The result? Many buyers, not so many sellers, and a frenzy when a good property comes on the market. In essence, the seller gets fought over like the only piece of chocolate in a candy store.

Not bad. To give you an example, the Riverside area is averaging about 1000-1100 homes for sale at any given time…but all through 2008 and the first half of 2009, our inventory averaged about 2400-2600 homes for sale. We are less than 50% of what we see in a “normal” inventory market.

Another example of this is the current “overbidding” statistics for our area. For the first two months of 2010, 67% of all homes sold in our area sold at a price equal to or greater than the original list price. Think about that. Seven out of every 10 homes sells for the list price or more.

Again, more buyers than sellers leads to fighting over the chocolate…and the highest bidder wins. But if that is the case, why are we not hearing about rising prices in our area? Most reports show prices have stabilized (even rising in a few places), but they are not rising like you would think given all the overbidding and buyer demand. What gives? In a word…appraisals. Due to both new regulations designed to keep markets from getting “overheated” again, and the fear that appraisers have at getting their valuations “sliced and diced” by the banks they work for, buyers bid up sellers properties with their offers, and the appraisers cut them right back down.

The net result is that while the property may sell for more than the list price, it will not sell for the price negotiated between the buyer and seller…because if the buyer and seller do not reduce their price down to the appraisal price, the sale (in most cases) cannot go through.

In essence, the kids (buyer and seller) decide to stay up until 10:00, but Mom and Dad (the appraisers) say no way, and bedtime becomes 9:30. You can argue all you want, but Mom and Dad will win almost every time. So…back to the homeowners of our story.

The bottom line is that if you are happy with getting whatever equity your home will bring you in today’s market (yes…we know it’s not like 2007, but then what you may be buying is not at 2007 prices either), you couldn’t pick a better time to sell.

If you price your home reasonably, given it is 2010 and not 2007, you can expect to sell your home for top dollar in today’s market in a relatively short period of time. It has been a long time since sellers could claim to be driving the bus, but here we are…with the seller’s at the wheel.

Enjoy it while it lasts, for the only certainty in our market is change…and how long it will take us to see the change. For now however, sellers are in control.

Credited Source: WestCOE Realtors

Several factors might leave prospective home buyers who don’t purchase a property now wishing they had taken action sooner! RISMEDIA, March 24, 2010—Buying a home is one of the biggest decisions an individual can make. So it’s understandable that one considering a home purchase may take their time to avoid rushing into such a large financial commitment. However, several factors might leave prospective home buyers who don’t purchase a property now wishing they had taken action sooner.

Gary Keller Founder of Keller Williams Realty on ABC Good Morning America Tomorrow!

Attention Keller Williams Associates:Kick-start your morning with a dose of Gary Keller on national television! Gary is scheduled to appear on Good Morning America (ABC) TOMORROW, Friday, Feb. 26. (Time not available. Air date subject to change.) Tune in to hear what Gary has to say in an interview regarding home selling strategies. Don’t miss it!

This is an internal communication to Keller Williams Realty International Associates for the purpose of company communications. We are not sending emails to anyone who is not part of Keller Williams Realty International. If you feel we have sent this email to you in error, please email us at feedback@kw.com. Keller Williams Realty International 807 Las Cimas Parkway, Suite 200 Austin, Texas 78746

The Expanded Home Buyer Tax Credit Could Chase Away the Winter Blues and everything you need to know about the extended and expanded tax credit.

By Ken Trepeta, Director, Real Estate Services Print Article

RISMEDIA, January 7, 2010—As we begin 2010, both real estate professionals and home buyers have something to look forward to and more importantly, take advantage of—the extended and expanded home buyer tax credit.

Originally created in 2008, the home-buyer tax credit has evolved from a $7,500 credit, which had to be repaid by the home buyer over the course of 15 years, to an $8,000 tax credit with no repayment required in 2009. Now, for a limited time in 2010, the $8,000 home buyer tax credit will still be available to first-time home buyers and certain current homeowners will also be eligible for a $6,500 credit.

To help everyone better understand the extended and expanded home buyer tax credit, here are some highlights of the changes.

Who can claim the credit?

“First-time home buyers” who purchase homes between November 7, 2009 and April 30, 2010 are eligible for the credit. To qualify as a “first-time home buyer” the purchaser or his/her spouse may not have owned a residence during the three years prior to the purchase.

For current homeowners purchasing a home during the same time frame, they are also eligible for a tax credit, so long as the home being sold or vacated was their principal residence for five consecutive years within the last eight. To elaborate, it must be the same home; it is not enough that they have been homeowners for five consecutive years, they must have been in the same home for five consecutive years.

Another key point is that the existing home does not need to be sold. One must, however, occupy the new home as a principal residence and do so for three years or risk recapture of the credit. Also, the new home does not need to cost more than the old home despite the concept that it is directed at “move up” buyers.

How much is the credit and what are the income limits?

The maximum allowable credit for first-time home buyers is $8,000 or 10% of the sales price, whichever is less. For current homeowners, it is $6,500 or 10% of the sale price, whichever is less. Under the extended home buyer tax credit, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000 may receive the maximum credit.

The credit decreases for single buyers who earn between $125,000 and $145,000 and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit deceases as his/her income approaches the maximum limit. Home buyers earning more than the maximum qualifying income – over $145,000 for singles and over $245,000 for couples – are not eligible for the credit.

What are the deadlines for qualifying for the credit?

Under the extended home buyer tax credit, as long as a written binding contract to purchase a home is in effect on April 30, 2010, and the deal is closed by July 1, 2010, one can claim the credit.

Will the tax credit need to be repaid?

No, the buyer does not need to repay the tax credit if he/she occupies the home for three years or more. However, if the property is sold during this three-year period, the full amount of the credit will be recouped on the sale. Another provision of the law waives the recapture provisions for service members who receive orders that require them to move.

Are there any other critical provisions?

-There are three provisions people should be aware of:
-There is an $800,000 limitation on the cost of the home
-The purchaser must be at least 18 years old on the date of purchase
-For a married couple, only one spouse must meet this age requirement and dependents are not eligible to claim the credit

Finally, as an anti-fraud measure, purchasers must attach documentation of purchase to his/her tax return claiming the credit. Normally this would be a copy of the HUD-1, but could include other documents memorializing the settlement.

As with all tax matters, responsibility for complying with the tax code belongs to the taxpayer. Real estate professionals should recommend that their buyers consult their tax professionals to ensure eligibility for the credit and the proper way to claim the credit. For more information including the required IRS forms please contact the Internal Revenue Service at 800-829-1040.

Ken Trepeta is the Director, Real Estate Services for the National Association of REALTORS® Real Estate Services program.

For more information, visit www.realtors.org/res.

RISMedia welcomes your questions and comments. Send your e-mail to: realestatemagazinefeedback@rismedia.com.

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Read more: http://rismedia.com/2010-01-06/the-expanded-home-buyer-tax-credit-could-chase-away-the-winter-blues/#ixzz0c2ZlGEJR