buyers

Cash Buyers Creating Bidding Wars

We saw this quite a bit in 2009 here in Atlanta - foreclosed properties receiving multiple bids.  The winners of the bids are often cash offers from investors leaving would be homeowners scratching their heads wondering how to win the bid.   Here is a great article from the Washington Post about Cash Buyers Triggering Bidding Wars.   

There are some great options for folks looking to buy and live in the home - such as the HUD programs which allow for owner occupied bids over investor bids for the first 2 weeks of property being listed.  The catch on some of these homes is the bidder needs cash to cover any overages and/or closing costs. 

I had a client this past fall who successful outbid the other offers on the table with a financing contingency.  We went over on the asking price but he has moved in and has a great house in a great area.  And though he paid over the asking price, the house was still below what has sold in the area and needed minimal repairs.

Remember the tax buyer credit is still out there!

Georgia Ranked in Top 10 of Best Business States

Forbes rated the top States for Business and Georgia ranked #6.  Despite the economic woes we are feeling - this is great news and will hopefully lead to more businesses finding their way to our state.  And certainly some positive news for Georgia.

Forbes used several different sources and based their rankings on 6 different categories.  The Forbes article is here and has the details on the category rankings and the sources used to gather the information.

Federal Housing Tax Credit - 2009/2010

Great news for buyers and sellers!  The Federal Housing Tax Credit has been amended and extended.   In addition to credits for first time buyers, there is also now a credit for move-up buyers.

FIRST TIME HOME BUYER CREDIT:

• $8,000 tax credit for first time buyers - which is defined by IRS as someone who hasn’t owned a principal residence during the three years prior to this purchse.
• Tax credit is up to 10% of the home’s purchase price - maximum of $8,000.
• Home price must be less than $800,000 sales price.
• Applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010.  However - if binding agreement is reached on April 30, 2010 - you just have to close by June 30, 2010 to be eligible.
• For homes purchased after November 6, 2009 and by April 30, 2010 - the income has been increased to single filers at $125,000 and married couples filing jointly at $225,000 to qualify for the full tax credit.

MOVE-UP BUYERS:

• To be eligible to claim the tax credit - buyers must have owned and lived in previous home for 5 consecutive years out of the last 8 years.
• Tax credit doesn’t have to be repaid
• Tax credit is equal to 10% of the sales purchase price up to $6,500
• Tax credit applies to homes with purchase prices of $800,000 or less
• Applies to sales occurring on or after January 1, 2009 and on or before April 30, 2010.  However - if binding agreement is reached on April 30, 2010 - you just have to close by June 30, 2010 to be eligible.
• For homes purchased after November 6, 2009 and by April 30, 2010 - the income has been increased to single filers at $125,000 and married couples filing jointly at $225,000 to qualify for the full tax credit

This should help continue to move inventory along with the great low interest rates.  And if you are selling your home - this will also help open doors to buyers who might need just a bit more incentive to buy!  As always - contact me if you have any questions or are interested in buying or selling!

You can visit the Federal Housing Tax Credit site here.

Economists Predict Atlanta as Place for Home Prices to Increase!

Moody’s economists report to Forbes.com the recovery of the real estate market.   Some analysts are predicting the National market to hit bottom by mid 2010.   Predictions indicate that from 2009 to 2014 - an 11.35% increase in prices.  Good news indeed!   It is a great time to buy with LOW interest rates and LOW prices.

Here is the full Forbes.com article.

4.75% - 30yr Fixed Interest Rates!

Interest rates popped down to 4.75% yesterday for 30 year fixed conforming loans!   WOW!  Great time to buy - lower purchase prices - low interest rates!  AND if you are a first time buyer or haven’t owned primary house in past 3 years - you may be eligible for $8,000 tax credit if you close by 11.30.09!

Email me with questions and for more information!

Pending Homes Sales Record Fourth Straight Monthly Gain

The NAR - National Association of Realtors - announced the pending home sales show an uptrend for the past four consecutive months.  They attribute favorable housing affordability and 1st time buyer tax credits as boosting the latest survey.  The June Pending Homes Sales Index increased 0.1% to 90.7%.   The last time there were four consecutive monthly gains was in October 2004.    Closed existing-home sales are improving but they are coming in lower than expected because of delayed closings or falling through due to financing qualifications or road blocks with the new appraisal rules in place.   According to Lawrence Yun, NAR chief economist, “Rises in contract activity show buyers are becoming more active even as they face much more stringent loan underwriting standards.  Speedy clarification of the appraisal rules could smooth a housing market recovery and support the overall economy”.

Federal Energy Tax Credits

Today’s post comes from my friends at Eric & Adam at  KronbergWall .  They are architects and fellow eco enthusiasts.  They can help you with your home designs and renovations. 

The recently signed American Recovery and Reinvestment Act of 2009 makes federal energy efficiency tax credits available for your home renovations if you make them in 2009 and 2010.

Specific types of high efficiency furnaces, air conditioners, and tankless gas water heaters qualify. Certain energy efficient doors, windows, roofing, and insulation also qualify. You are eligible to receive a credit for these upgrades if they are installed in existing homes that are primary residences. The tax credit has been raised to 30% of cost up to a total credit of $1500.

There are even greater tax credit opportunities for solar water heaters, geothermal systems, and photovoltaic systems. You can receive a tax credit of up to 30% of the total cost of these systems, and it is not limited to the $1500 cap. In addition to existing primary residences, the credit is also available for vacation homes, rentals, and new construction.

Eric Kronberg, AIA, LEED AP
Adam Wall, AIA, LEED AP

Georgia Income Tax Credits - $1800 For Buying a House

Gov. Sonny Perdue signed on Monday Bill 261 into law.  The law offers a tax credit of 1.2 percent of the purchase price of a single-family home currently on the market.  The credit tops out at $1,800 and will be taken over three years.  Georgia taxpayers have six months starting now to qualify for up to $1,800 in income tax credits by buying a home.

For first-time home buyers, the state credit would be in addition to a federal credit offered through the federal stimulus act.  That credit is worth up to $8,000.  The new state credit, however, applies to any home buyer, not just first-timers.  Read more about the $8,000 federal tax here.

Low Interest Rates = Great time to Buy

Interest rates remain low!   As of today - conforming loans (under $417k) remain at 4.375%.  FHA rates remain at 4.5%.  And jumbo rates for qualified buyers remain as low as 5.5% with equity and excellent credit.

I ran some numbers to see what kind of savings you would have with these low rates.  WOW - over the life of the loan you can save tens of thousands of dollars.  On a loan amount of $200,000 - the monthly mortgage payments on a 30 year fixed (does not include taxes, insurance) are:

Interest Rate		Monthly Payment		Monthly Savings compared to $998.57
4.375%		$998.57		not applicable
5.375%		$1,119.84		$121.27
6.375%		$1,247.75		$249.18

Aside from the monthly savings - an interest rate of 4.375% vs. 5.375% could save you $43,693.91 over the life of the loan.  And an interest rate of 4.375% vs. 6.375% could save you $89,700.94.  WOW.

FMLS Intown Areas

FMLS Area Codes for Intown

FMLS Area	Neighborhoods
21	Buckhead neighborhoods including Chastain Park
23	Midtown, Morningside, Virginia Highland, Inman Park, Piedmont Heights
24	Druid Hills, Candler Park, Lake Claire, Kirkwood, Edgewood, East Atlanta, East Lake, Oakhurst
31	Capitol View Manor, Sylvan Hills, College Park, Adair Park, West End, Jefferson Park
32	Grant Park, Ormewood Park, Glenwood Park
52	Decatur, Clairemont, Toco Hills, Oakhurst, East Lake, Kirkwood

If you don’t see your neighborhood ~ let me know.  Some neighborhoods may appear in 2 different areas.

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