What You Need to Know Before You Buy or Sell Your Next Home

EXIT Real Estate has just announced that the company will host two public Webinars designed to help consumers make smart decisions before they buy or sell a home. Local buyers and sellers are encouraged to tune in for the discussion.

The webinar is titled "Changes in the Real Estate Market: What You Need to Know Before You Buy or Sell Your Next Home," and Webinar sessions will be given on Tuesday, March 9, 2010, from 1:00-1:30 p.m. PST and 4:00-4:30 PST. Both sessions will be hosted by Tami Bonnell, president of the U.S. organization of EXIT Realty Corp. International. Bonnell will address recent changes in the real estate market, as well as important factors home buyers and sellers should consider before they delve into the market. "This includes average sales prices, days the home is on the market, credit changes, extended tax credit and mortgage options", Bonnell said.

"Our goal at EXIT Realty is to give consumers a solid foundation before they go out and purchase a home or put their home on the market. There are many things to consider and we want to make sure they have done their homework before getting started," Bonnell said. "Home buyers and sellers are directly impacted by the changes in the real estate market, so it is very important for them to be aware of those factors."

To register for the "Changes in the Real Estate Market" Webinar, visit https://www2.gotomeeting.com/register/656547354 for the 1.p.m. session or https://www2.gotomeeting.com/register/309227258 for the 4 p.m. session.

The webinars are very simple to access, all you need is your computer and an online connection. For more information, contact Darla at 509-270-0782.

When Will Home Values Rebound? Predictions for Spokane and the Northwest

By now you know that home values have taken a dip in Spokane. So the million dollar question is: Will prices go lower? When will prices rebound? No one has a crystal ball, and much will depend on our employment rate and the number of foreclosures hitting our market.

A recent CNN Money article predicted home prices nationally could fall another 6% to their lowest point by September, 2011. However, their local forecast has Spokane values appreciating by 3.2% in that timeframe. Also of note, Tacoma, Kennewick and Seattle were among the top five on their list of best bets to rebound, which bodes well for the Northwest.

Several indicators point to the possibility that right now is one of the best times ever to buy real estate in the Spokane area. Average home prices have come down since the peak in 2007, there are many programs offering financial assistance to qualified buyers, and inventory of homes for sale is plentiful.

More importantly, interest rates are still very low, but are predicted to continue to climb as the Federal Government winds down its program for purchasing mortgage-backed securities. On March 31, the Fed plans to end a $1.25-trillion program for purchasing mortgage-backed securities that has helped keep mortgage interest rates near a record-low 5%. That exit is expected to further push up rates--various sources have predicted an increase of 0.5 to 1%.  (On a $200,000 30-year mortgage, the difference between 5% and 6% is an additional $125/mo. for principle and interest!)

While I can’t predict when home values will rebound, we have seen a definite uptick in buyer activity since the first of the year. The combination of unseasonably warm weather, low interest rates, low prices, soon-to-expire tax credits and lots of inventory to choose from seems to be bringing buyers off the fence.

As always, if you are thinking of buying or selling, we’d love to help you, and we appreciate your referrals!

First Time Buyers: Attend This Class & Get up to $10,000 Toward Your Down Payment!

There are many loan programs and financial assistance available to First Time Home Buyers in Washington!  Attend a FREE no-obligation Certified Home Buying Seminar to learn about:

• Down payment assistance programs up to $10,000 available to qualified buyers from the State of Washington Housing Finance commission.
• HomeChoice Program for people with disabilities. (Up to $15,000)
• SNAP sponsored grants programs up to $15,000 for qualified buyers.
• Up to $8,000 Federal Tax Credit for First Time Buyers!
• Washington State Bond new program for newly constructed never occupied home.  30 Year Fixed Rates range from 4.75% to 5.25%.
• Everything you need to know about obtaining a mortgage!
• Current Housing Market and how to purchase a home.
• Home Inspection.

February Class:                                                      

Date:  February 20, 2010

Time:    9:00 AM to 2:00 PM - Lunch provided                                           

March Class:

Date:   March 13, 2010

Time:  9:00 AM to 2:00 PM - Lunch provided                                           

Register today and find out how you can benefit from the Washington State Bond program, House Key + down payment assistance, SNAP grants and Home$tart grants!  All of these programs require that you have a Certificate of Completion for this class.  

TO REGISTER:

Call Darla at 509.270.0782 or LeRoy at 509.990.5150 or submit the form below!

Tax Credits and Avista Rebates for Making Your Home more Efficient!

There are a number of programs currently available to homeowners offering tax credits or rebates for making your home more energy efficient. This is a great way to save money on your monthly heating, cooling and electric costs and also recoup some of the upfront investment.

The Federal Government is offering a tax credit of 30% of the cost on several weatherization projects, up to a total of $1,500. Covered items include: Insulation, Window and Doors, Heating, Ventilating, Air Conditioning (HVAC), Roofs and Biomass Heaters. See the website for more details, which includes a helpful FAQ section. This program expires December 31, 2010. For specific questions about the rebates, contact your tax professional!

There are also local rebates available from Avista Utilities when you purchase ENERGY STAR appliances, switch from electric to gas heat or heat pump, add insulation or replace old windows. If you find yourself in a situation where you need to replace one of your household appliances, you might as well get the rebate! Check Avista's website for all the details.

2009 Spokane Year-End Market Report

In the chart below, the blue line is the 2009 average sale price, the green line is 2008, and pink is 2007. You can see that the first-time homebuyer tax credit (which expired at the end of November) weighed down our average price in the fourth quarter. The credit has since been extended to the end of April, 2010 and expanded to include move-up buyers.

New listings in 2009 totaled 9,782 compared to 12,833 a year ago.  However, because homes are staying on the market longer or not selling, total listing inventory at the end of 2009 was at 2,606, up 4.7% from December 2008.

New construction sales totaled 561 compared to 804 in 2008, down 30.2%.

You could describe our market in 2009 as "the Good, the Bad and the Ugly." It was GOOD for buyers, with Spokane-area home prices becoming more affordable, particularly for first-timers receiving up to $8000 from Uncle Sam for buying their first home. On the other side of the coin, 2009 was BAD for home sellers, who saw their home's value drop anywhere from 5-15% from the market peak in mid-2007. Lastly, things were UGLY for some realtors, with total sales falling to the lowest level since 1987 (see chart below.) State and local government also felt the pain, with reduced revenues collected from the excise tax on homes sold.

On to 2010!  All indicators show that the housing downturn has bottomed nationally and is showing signs of positive growth. Historically, Spokane tends to trail the national trends, following 12-18 months behind. Fortunately, our market has always been conservative -- we did not experience the extreme highs or extreme drops as other markets that had swings (up and down) of 20-40%.  Just another reason that Spokane is a great place to live! Contact me when you're ready to make a move.

Source: Spokane Association of Realtors

Looking for Land? LeRoy’s Your Man!

Want to feel Young? Join us out West!

A recent report from the Pew Research Center found that older adults feel younger out west. Fully 78% of adults ages 65 and older who live in the West say they don’t feel old, compared with 67% of older adults who live in the rest of the country.

We like to toot our own horn here in Spokane and the Northwest in general, so we’re not surprised by the numbers.

If you know someone who is thinking of moving, share the following statistics:

• Two-thirds of Westerners ages 65 and older say they feel younger than their chronological years, compared with 57% of older Americans in other regions.
• Among older Westerners, half say they feel 10 or more years younger than their actual age and one-in-five say they feel 20 or more years younger.
• Older folks living in the West also feel healthier than older folks elsewhere. Among adults ages 65 and older, some 72% of those living in the West say they are in excellent or good health. This compares with 63% of those living in other regions of the country.

So, celebrate the new year and don’t worry about that extra candle on the birthday cake. Embrace the future and remember you can always join us out west. And don’t forget to call your favorite realtors to help you buy or sell your home!

Read more

Is NOW the time to buy?

Many factors go into buying a home, but one important factor is always "Am I getting a good value?"  Buyers constantly weigh all of their reasons for buying, and a few buyers are considering putting off their purchase until the spring to see where the market is headed. However, there are several indicators pointing to the possibility that right now could be one of the best times ever to buy in our area. Values have dropped over the last two years, but the local market, as well as the national market, has seen several months of increases in sales volume. The increased volume has helped to stabilize prices, both in the Inland Northwest and across the United States.

Interest rates are widely predicted to climb next year, as the economy recovers and the Federal Government winds down its program for purchasing mortgage-backed securities. At today's rates, a $200,000 30-year mortgage would cost approximately $1,044 per month (principal & interest only), whereas in the spring if rates are at 6% the payment would jump to nearly $1200 per month. Rates fluctuate on a daily basis, but October of 2009 has seen rates dropping as low as 4.75% fixed over 30 years!  The interest rate you get has a huge impact on your buying power!

A recent Yahoo Finance article predicted home prices nationally will drop another 11.3% to their lowest point by June 30, 2010. This doesn't mean a whole lot because all markets are local and unique (for instance homes in Kennewick, WA have appreciated 8.9% over the last three years and are still going up!)  But for the sake of argument let's say Spokane area prices do drop further. A $200K home purchased today at 5% fixed rate would cost $1074 per mo. (P&I).  If you time the market to buy it for 10% less at $180,000 nine months down the road, but interest rates jump to 6.5% your principle and interest payment would be $1138!  So, if you will be financing your purchase, NOW is a fantastic time to buy!  Call or message me anytime or visit our site at TheRealEstateAces.

$8000 Home-Buyer Tax Credit Video - Act Now!

While owning a home has multiple benefits, there is another bonus for First Time Homebuyers for the next few months: An $8,000 First Time Homebuyer IRS Tax Credit! This “Gift”, given to First Time Homebuyers from the government, does not have to be paid back. This incentive, combined with historically low interest rates, tax advantages for owning a home and the affordability of first-time homes in our area, means buying a home can be more affordable than renting! “First Time Homebuyers” include anyone who has not owned a home in the last 3 years, so even if you know someone who owned a home a while ago, they might qualify for this new tax credit designed to promote home ownership.

BUT HERE’S THE DEAL: to qualify for the first-time buyer credit, the sale needs to close by the last day of November, 2009. Considering an FHA loan can take up to six weeks to process, plus the time it takes to find the right home... now is the time to be home-shopping. Call or email us and let's get started!

Here’s a link to a short video about the tax credit. Warning: it’s pretty cheesy!

http://www.youtube.com/watch?v=qIVb2ordwNQ


If you or someone you know is looking to buy a home in the Spokane area, give us a call at 509-270-0782 or visit our website at www.TheRealEstateAces.com. Your referrals are appreciated!

Format: ???
Duration: --:--

Public Q&A on the Real Estate Market with Tami Bonnell, EXIT Realty's US President

Return to http://www.TheRealEstateAces.com

$8K Tax Credit Advance Loan for First Time Home Buyers!

The 2009 Stimulus package included a “refundable” tax credit worth up to $8,000 for taxpayers who purchase their first home between January 1 and November 30, 2009. While it is a great incentive for first-time buyers, the funds are not available until after the purchase when buyers file and receive their tax return.

The new Washington State “Housing Tax Credit Advance Loan Program” will now make the tax credit (up to $8000) available to borrow up front to use as a down payment! The program is not up and running yet, but the funds have been approved and it should go into effect in the next few weeks after Governor Gregoire signs the state budget.

Details of the program are still being refined, but here are the basics:

• The State makes a deposit with a selected FDIC insured financial institution.
• The financial institution then provides the Washington State Housing Finance Commission with a line of credit up to $8000 to qualified first-time home buyers for a down payment.
• The advance loan is paid once the IRS delivers the home buyer’s refund.

Here’s what you can do RIGHT NOW to be eligible and ready once the program is available:

First of all, in order to take advantage of this program, you need to work with a participating lender. There are only a handful of WSHFC loan officers in the Spokane area. They can tell you if you qualify for a mortgage loan under this program. Call or email us and we will connect you with an approved lender!

Also, you will need to attend an approved Homebuyer Education Class. This free 5-hour seminar is a requirement for receiving a loan from the Washington State Housing Commission.  Contact us for a list of upcoming classes.

Once you know how much you qualify for, it’s time to look for a home! That’s where we come in.  There are lots of excellent homes on the market, but we are seeing buyer activity heat up. We can set you up to receive automatic emails for new listings with your specific criteria and show them to you as soon as they hit the market!  Remember, to take advantage of this program, the home you purchase has to close escrow by the end of November. After you find the right home and make an offer, the sale could take 45 to 60 days to close, so the time to start looking at homes is right now. Let’s get started! Call Darla at 509-270-0782 or LeRoy at 509-990-5150 or visit us online at http://www.TheRealEstateAces.com.

- - - - - - - - - - - - - - - - - - - - -

The latest update on the "Cash at Closing" program is that on June 2, the U.S. Department of the Treasury notified the Washington State Treasurer that the IRS will not make the required administrative change because federal law requires tax credit payments to be sent directly to the taxpayer, not third parties such as the Housing Finance Commission.  The letter further states Congress had considered but rejected a proposed mechanism for advance payment of the credit, "instead choosing to use ordinary refund procedures to implement the credit."

However, downpayment-assistance programs are still available to first-time home buyers - call for info!

Woo-HOOO! Zags dance into the Sweet Sixteen!

They played an outstanding game today and won in a thriller against 12-seed Western Kentucky. The “Hilltoppers” (goofy name-good team) tied it with just seven seconds to go. Daye inbounded to Demetri Goodson who went coast to coast and banked a layup for the win. I guess he’s known as “Meech” on the team. In our house, we’ve called him “Woodson” ever since the Zags played Memphis at the arena, and Bob Knight was calling the game for ESPN and kept calling him Woodson instead of Goodson.

When it came down to the wire, we were on the floor in front of the TV shouting WOODSOOOOOOON!

There’s a lot to love about Spokane, and from November to March Zags Basketball is near the top of our list. The lady Zags are in the dance this year too, and beat Xavier in the first round, 74-59! The whole GU basketball program, men & women, make us proud to have them in little ol’ Spokane.

GO ZAGS!!!!!

Darla & LeRoy at a Zag's home game December 18th. That was the day it snowed about four feet so we scored tickets on Craigslist. Even though we were in the nosebleed section and the game was a blowout against Texas Southern, there's nothing like being there!

Economy in Toilet = Lower Interest Rates for Homeowners!

Unless you have been living in a cave, you most likely know that the U.S. Economy is at its lowest point in recent history.  That is certainly not good news. But there is a silver lining:  Mortgage rates tend to fall when economic news is bad.  Basically, mortgage rates are tied to the Bond market so when the economy is weak, money flows out of Stocks and into Bonds. When Bonds go up, interest rates go down.

For a very short period of time at the beginning of this year, we saw some rates as low as 4.75%. It has crept up to the range of 5.00-5.25% since then, for borrowers with excellent credit.  If you own your home or are considering buying, act now to take advantage of current low rates for refinancing or purchasing. A word of caution: beware of online lenders that advertise super-low interest rates. They make thier money by adding fees and points on the "backside" of the loan. Call me anytime and I’ll connect you with a trusted local lender.

Let’s do some math. If you are financing $200,000 at 5% interest on a 30-year fixed loan, your monthly payment (principal and interest only) would be $1073.64. That same amount at an interest rate of 6.5% comes to $1264.14. That’s almost $200 per month savings!  Keep in mind, in the real world you have to pay taxes and insurance on top of principal and interest, so check with your lender to see how much home you can buy with the payment level you’re comfortable with.

In Spokane, it is an incredibly good time to buy a home, not only because interest rates are great. We also have the classic Supply and Demand principal bearing out: Lots of homes for sale in Spokane means lower prices to you as a buyer. Spokane is experiencing a rare “Buyer’s Market” right now, but that could change if a big chunk of the inventory is snapped up in the hot Spring and Summer selling season.

Back to the interest rate issue. As a general rule, weak economic news means lower interest rates, while positive data causes interest rates to rise.  Federal Reserve Chairman Bernanke has stated the recession will be over by year-end if the banking industry is stabilized.  Also, the distribution of stimulus money will soon begin to positively impact the various economic indicators that influence rates. Every time this type of positive news is reported, interest rates will crank up a hair, which means we could be back to 6-7% in no time.

If you are looking to buy, we’d love to help you find the home of your dreams. Or, if you know someone who is looking to buy, your referrals are appreciated! And don’t forget - there is an $8,000 tax credit for First Time Buyers if the sale closes before December 1, 2009! See my related blog post or call Darla at 509-270-0782 for more info!

About the First Time Home Buyers Tax Credit

When the final stimulus bill was approved, there were three major changes from the original first time home buyer tax credit program:

·         Tax credit was increased from $7,500 to $8,000.

·         Homes have to be purchased between January 1, 2009 and December 1, 2009

·         Repayment of the credit is no longer required, after 36 months of occupancy and ownership.

Here are the details, as amended by the American Recovery and Reinvestment Act of 2009 (HR 1).

1.      The Tax Credit is for home buyers who have NOT owned a principle residence during the three-year period prior to the purchase.  Ownership of vacation property or rental property does not disqualify home buyers from this program.

2.      The maximum credit is $8,000 or 10% of the home purchase, whichever is less.

3.      The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009. 

4.      To qualify for the full tax credit, married couples' modified adjusted gross income (MAGI) should be under $150,000 and single filers' MAGI should be less than $75,000. Partial tax credits may be available for married couples with MAGI incomes of over $150,000 but under $170,000 and single filers with incomes over $75,000 but under $95,000.  If married couples who qualify for the first-time tax credit file separately, they would both claim 5% of the home purchase or $4,000 each (whichever is less) on their tax returns.

5.       Home buyers who qualify for this program, but who do not intend to purchase a home till the end of 2009, may elect to alter their tax withholdings (up to the amount of the of the tax credit) in order to save up money for a down payment.  However, if the purchase of the home does not occur, the taxes must be repaid to the IRS.  *Please consult a tax advisor before you alter your withholding.

6.      There is no recapture or repayment clause IF the home is owned for at least 36 months.

7.      The effective date of purchase for new construction (even if buyer owns title to the lot) is the date the owner first occupies the house.  So even if construction began in 2008, as long as the home and buyers qualify for the tax credit, they will be eligible if they take possession any time during 2009.  However, new construction bought from the builder is only eligible if the settlement date (closing) takes place between January 1, 2009 and December 31, 2009.

8.      The law allows taxpayers to elect to treat qualified 2009 purchases as a 2008 purchase so that they can receive the tax credit on their 2008 tax returns.

9.      The full amount of the eligible tax credit is refunded to the buyer, regardless of whether the buyer has paid an equivalent amount in taxes.

If you or someone you know could benefit from this program, let us know!
There is a great selection of homes to choose from,
and there are many financing options available as well.

Darla and LeRoy Pilant
1-888-852-ACES
http://www.TheRealEstateAces.com

Obama Signs Economic Stimulus Plan - How it affects the Housing Industry

The $790 billion stimulus package signed by President Obama today increases the home buyer tax credit to $8,000, drops the repayment feature, reinstates last year's 2008 loan limits for FHA, Freddie Mac, and Fannie Mae loans, and provides $2 billion in additional funding for states and localities to be used to purchase, manage, repair and resell foreclosed and abandoned properties.

Homebuyer Tax Credit. The bill provides for a $8,000 tax credit that would be available to first-time home buyers (those who haven't owned in at least three years) for the purchase of a principal residence on or after January 1, 2009 and before December 1, 2009. The credit does not require repayment for buyers who hold onto their property for at least three years. Most of the mechanics of the credit will be the same as under the 2008 rules: the credit will be claimed on a tax return to reduce the purchaser's income tax liability. If any credit amount remains unused, then the unused amount will be refunded as a check to the purchaser.

The three-year minimum holding period is a safeguard against speculators' use of the credit. The legislation also extends the effective date of the credit to December 1 from June 30, and extends eligibility to borrowers who buy their home with the help of state or local financial assistance that comes from the proceeds of tax-exempt mortgage revenue bonds. The start date for the first time homebuyer credit is January 1, 2009 through and before December 1, 2009.

FHA and conforming loan limits. Specifics have not been released but reports indicate that the 2008 limits have been reinstated for 2009 except in those communities where the 2009 limits are higher. Additional increases in individual communities may also be available at the discretion of the secretary of the U.S. Department of Housing and Urban Development.

Foreclosure mitigation and neighborhood stabilization. Funding for states and localities to be used for neighborhood stabilization activities for the redevelopment of abandoned and foreclosed homes are authorized. Some news reports put the funding level at $2 billion.

Rental assistance. Up to $1.5 billion to provide short-term rental assistance and other aid for families during the economic crisis.

Transportation infrastructure. Up to $29 billion for highway construction projects, $8 billion for rail projects.

Rural housing development. Increased funding for the Rural Housing Service direct and guaranteed loan programs.

Low-income housing grants. Allow states to trade in a portion of their 2009 low-income housing tax credits for Treasury grants to finance the construction or acquisition and rehabilitation of low-income housing, including those with or without tax credit allocations.

Tax-exempt housing bonds. Tax-exempt interest earned on specified state and local bonds issued during 2009 and 2010 will not be subject to the Alternative Minimum Tax (AMT). In addition, financial institutions will have greater capacity to purchase tax-exempt state and local bonds.

Energy efficient housing. Grants for energy retrofits for federally assisted housing (Section 8), funding for energy efficiency and conservation block grants to states, increases in the residential tax credit through 2010 for certain energy efficient upgrades and $5 billion to weatherize low-income homes.

This article provided courtesy of:

Greg Wright
2009 President
Washington REALTORS®