New bill will be in effect until April 30^th 2010. Must have written binding contracts for the purchase on or before April 30^th.  Must complete sale by July 1.

First time Home Buyer Credit Amount

No Change – Up to $8,000 ($4,000 married filing separately)

First time Home Buyer Eligibility

No Change – May not have had an interest in a principal residence for 3 years prior to purchase.

Current Home Owner Amount of Credit

NEW *** Up to $6,500.00 ($3,250 married filing separately)

Effective Date for Current Home Owner Credit

Date of Enactment

Current Home Buyer Eligibility

Previous/ Current House must have been a primary residence 5 of the previous 8 years.

Income Limits

Increased from $75,000 – $125,000 for Singles

Increased from $150,000 to $225.00 for Married Couples

Additional $20,000 phase out still applies

Limitation on Cost of Purchased Home

The new bill enacts a limit of $800,000 effective the date of enactment

Anti-Fraud Rule

Do to the numerous people falsely claiming the credit, the new bill will require documentation of purchase along with the filing of tax return.

If you are interested in finding out more, please contact us.

What we found when we look at the list this month was a lot more commercial properties which is also unusual.  Even properties that are highly desirable and have tenants are being foreclosed. We read about the new shopping center in Norcross – The Forum, narrowly escaping foreclosure last month. In that article, it forecasted that there would be additional commercial up for foreclosure, but I had no idea that the amount of foreclosures would be this high. 

So what is going to happen with this additional inventory coming onto the market? You probably remember your economics 101 class – more supply, less demand equals lower prices. Just when you think it can’t get even lower, we find that there is a near 20% increase into an already bulging market. 

While this is a great opportunity for some, it is creating additional challenges for those who need to sell. Someone recently shared with me the concept that sellers are under “house arrest” because there is nothing that they can do to liquidate their home without taking a large loss in equity. Most homeowners are counting on their homes’ equity for retirement and with prices falling at an alarming rate, it is going to take a long time to recover from this loss. 

So what is the upside in this? The only thing we can share is that if you are in the market to purchase, there is no better time to buy. If you can put up with the challenges of working with banks, there is great money to be made. Banks are realizing that there are not enough qualified buyers for their homes, so relatively reasonable offers are being considered and whether you are purchasing to occupy or put into rental service, the discounts are amazing.

If you want to take advantage of this great market, make sure that you are working with an expert real estate agent that understands how to work with the banks to get your deal accepted. Also, because the market is shifting, you want to make sure that you are getting the best information possible about a home and area to make sure that you are able to make the best buying decision.

Want to be alerted to the newest foreclosures on the market? Contact us or complete a short form and we will send you the newest homes on the market.

Thanks for interacting. We believe that art of real estate will continue to evolve and grow more and more via internet technologies, but will never replace the human element. So often people forget that we are social in nature and that while technology is great for interim communication and information, it does not replace the value of being able to get together in person.

We will be adding additional content and information about how real estate can be better integrated into today’s communication style in later posts, but this was too fun to pass up!

Enjoy

Unlike the 2008 tax credit of $7,500.00, the 2009 tax credit has been raised to $8,000 and does not need to be repaid. Any home more than $80,000 qualifies for the $8,000. If the house is less than $80,000, then the home purchaser would qualify for 10% of the home value.

The house must be for a principal residence (where you live more than 50% of the time) and the credit lasts for home closed before 12/1/2009. It is also for first time homebuyers only. A first time homebuyer is classified as anyone who has not had any interest in a home in the last 3 years.

 A qualified buyer claims this amount on their individualized tax return. So a person who has a tax liability of $9,200 would only pay $1,200. If the tax liability is less than the $8,000, the qualified home purchaser would receive a check for the difference.

There are some income restrictions for this tax credit. Single/Head of Household are eligible if their income is no more than $75,000. Married couples who file jointly have a cap of no more than $150,000.

It is easy to claim for this tax incentive. Just claim the credit on the IRS Form 1040 and it will be reflected on the Form 5040.

GEORGIA TAX CREDIT

This tax credit is NOT limited to first time home buyers. You can qualify for both the Federal and State Tax credits or just the State Tax Credit.

It applies to single family residences that are listed for sale prior to May 11, 2009 and only applies for properties that purchases that close before November 30^th.

This credit is figured by taking 1.2% of the purchase price with a maximum credit of $1,800. Houses over $150,000 will receive the maximum amount of $1,800.

The credit for the state is calculated differently, it is over 3 years or up to $600.00 per year. You cannot amend your 2008 returns, it must start in 2009.

So there are the facts about how first time home buyers can be eligible for up to $9,800, but time is running out. So if you are thinking about buying your first home, start your search and let us help you find some of the best deals! Currently there are over 80,000 home and we allow you to search them for FREE. So let’s get started!

Click here for your FREE Buyer’s Guide to help you through the process.

Bedrooms: 3 | Bathrooms: 2.5 | Square Feet: 1650

$140,000 

POSSIBLE SHORT SALE – ALL OFFERS SUBJECT TO BANK APPROVAL. GREAT LOCATION NEAR MALL OF GA, EASY ACCESS TO HWY 20 & I-85! BEHIND NEW BRAVES STADIUM (GWINNETT)! INTERIOR HAS HIGH CATHEDRAL CEILINGS IN LIV RM & 10′ IN BDRM. WALL-TO-WALL CARPET. WOOD FLR IN BDRM. POTENTIAL 4TH BDRM OR OFFICE IN UPSTAIRS LOFT. BACK PORCH/BALCONY. GREAT VIEW IN BACK AND FRONT.

SCHOOLS:
ELEMENTARY – ROCK SPRINGS
MIDDLE – CREEKLAND
HIGH – COLLINS HILL

SHOWING INSTRUCTIONS:
CALL CO-AGENT W/ QUESTIONS, JOEY GRAVELL (678) 463-4005.

DIRECTIONS:
I-85 NORTH TO EXIT 115, GO EAST TOWARD LAWRENCEVILLE. GO 1.1 MILE, TURN RIGHT ON TECH CENTER PKWY. TURN LEFT ON CEDAR DR. TURN RIGHT ON SUWANEE POINTE DR.

Posted by: mark@AtlantaHousingSource.com | www.AtlantaHousingSource.com

In July there were 4415 advertised foreclosures in those same counties that were scheduled for sale on August 4, 2009. Just how many actually foreclosed is yet to be determined. This month, however, we see that there is a 10% increase.

We have been tracking the foreclosure rates for those counties for years and never have we seen these kinds of numbers. Georgia is a non-judicial foreclosure state which basically means that after 4 weeks of advertising, the lender can foreclose on the property through a sale on the courthouse steps.

So what is going to happen with all of these homes that are now owned by the bank? They are going to try and sell them at greatly reduced prices. This can be good news or bad news depending on your situation. If you are a buyer, there has never been a better time to purchase a home. The incentives for first time homebuyers are really phenomenal. Have you heard about the $8,000 Federal and up to $1,800 State credits available? Learn more details.

However, if you are an existing home owner, you are seeing your property values drop like never before. Most people who bought in the past 10 years purchased houses with a first and a second mortgage. When the bank forecloses all junior liens are wiped out. Therefore the bank that performed the foreclosure has a house that already costs significantly less that other homes in the neighborhood that were bought around the same time.

For example a house that normally would cost $100,000 has a first mortgage of $80,000 and a second mortgage of $15,000. Typically the owner would have paid $5,000 for the down payment. So let’s say the owner has lived in the property for 3 years and now can’t make the payment. The first mortgage would foreclose and purchase the property at the steps for roughly $78,000. Let’s say it costs them $4,000 to actually foreclose. They then list the home for sale at $85,000. So the other homeowners in the neighborhood who need to sell are competing with the banks selling what would normally be a $100,000 house for $85,000. So they have lost $15,000 in equity.

In addition banks are now competing with each other since there are so many of them on the market these days, that they are lowering their prices even further just to move the house off their books and to take the loss.

So my point is that there is going to be even more choices for people who want to get some great deals and we can help you find a great deal. If you want to know more about the home buying process, come to one of seminars. If you want to search through the thousands of foreclosures in Atlanta, you can search for free. If you want us to search for a home for you to narrow down the search, you can speak with us directly by contacting us or calling 404.886.8789.

We appreciate the opportunity to serve you!

August 1

Beauty & The Beast – Town Center Park, Suwanee, GA

Green Day – Arena at Gwinnett Center, Duluth GA

August 1, 8, 15

Mall of Georgia Summer Concert & Movie Series, Buford GA

August 1, 7, 8, 14, 15, 21, 22, 28, 29

Lawrenceville Ghost Tours – Aurora Theatre, Lawrenceville, GA

August 1, 2

“The Mousetrap” By Button Theater – Red Clay Theater, Duluth, GA

Trains, Trucks, and Tractors – Southeastern Railway Museum, Duluth, GA

Pirates of Penzance – New London Theatre, Snellville, GA

August 4, 6, 7, 8, 9, 13, 14, 15, 16, 20, 21, 22, 23, 26, 27, 28, 29, 30

Kiss Me Kate – Aurora Theatre, Lawrenceville, GA

August 6

First Thursday in Downtown Norcross – Thrasher Park, Norcross, GA

Brown Bag Lunches – Duluth Town Green & Amphitheater – Duluth, GA

August 7

Suwanee Majic 107.5/97.5 Concert – Town Center Park, Suwanee, GA

Lilburn Idol Finale – Lilburn City Park, Lilburn, GA

Brown Bag Concert Series – Gwinnett Historical Courthouse, Lawrenceville, GA

August 8

Golden Spike Train Show – North Atlanta Trade Center, Norcross, GA

Flicks on the Bricks – Duluth Town Green, Duluth, GA

August 8, 15

Groove with the Grapes Summer Concert Series – Chateau Elan Winery Pavilion, Braselton, GA

August 14, 28

Norcross Concert in the Park – Thrasher Park, Norcross, GA

August 14, 15, 21, 22

Norcross Ghost Tours – Downtown Norcross, GA

August 14, 15, 16

Folk Fest 2009 – North Atlanta Trade Center, Norcross, GA

August 15

Stone Mountain Village Walk & Wine – Stone Mountain Village, Stone Mountain, GA

Off the Cobb – Improv Adventures for Kids, Red Clay Theater, Duluth, GA

Concert in the Park – Town Center Park, Suwanee, GA

August 20

2009 Business in Gwinnett Expo & Job Fair – Convention Center, Duluth, GA

August 21

Symphony on the Green – Duluth Amphitheater, Duluth, GA

August 22

The Freedom Concert – Arena at Gwinnett Center, Duluth GA

August 28

Moonlight & Music Concert Series – Historic Courthouse Lawn, Lawrenceville, GA

August 28, 29, 30, 31

USTA Southern NTRP Hardcourt Championships – Collins Hill Athletic Club, Lawrenceville, GA

August 29, 30

Paddle in the Park – Sims Lake Park, Suwanee, GA

Summer Finale Weekend – Georgia Cycling Grand Prix Event, Gwinnett, GA

As a real estate agent serving Gwinnett, North Fulton, Forsyth and Cobb counties, I have a wide area of expertise. While everyone knows we have to conserve energy, the challenge is how to get started and what is the value in “going green” with your home?

Let me being by speaking of the value. In the Atlanta area, while a few people may pay more for a more efficient home, most will use that as a swaying feature between 2 comparable homes and the green home will sell faster. I wanted to share with you some ideas that we recommend if you wanted to go green and discuss the resale value of each option.

HVAC:  Replace A/C systems with a 13 SEER (Seasonal Energy Efficiency Rating) or greater unit. Update furnaces to high AFUE (Annual Fuel Utilization Efficiency) system of 80 or greater.  These will have a tremendous impact on your utility bills while you own the property, and is a great selling point. Also, when the prospective buyer looks at the property, knowing it is a relatively new system will be a big plus.

Install programmable thermostat(s).  Not only will this help you be more comfortable when you arrive home, it will save energy as well.

Replace kitchen appliances with ENERGY STAR rated appliances.  Everyone loves newer appliances. We all know that kitchens help sell homes, so make yours more attractive with this feature.
 

Replace plumbing fixtures & toilets with water conserving fixtures & low flow toilets.  In Georgia, as well as many other areas of the country, we are experiencing major issues with water shortages.  In some metro counties, this is actually a requirement before a seller can sell. We expect that more and more counties will enact similar legislation, so this might be a way to get your house prepared in advance.

Improve insulation. We find that the home’s insulation gets packed down over the years, so refreshing insulation in the attic or adding insulation in the walls will certainly reduce your energy cost as well as provide a great selling feature. It will make the house much more comfortable.

Replace old single-pane windows with Low-emissivity (Low-E) rated windows.  A Low-E coating is a microscopically thin, virtually invisible, metal or metallic oxide layer deposited directly on the surface of one or more of the panes of glass. Old windows are drafty, but the new windows are great for keeping the outside temperatures from affecting the interior temperature of the home.  This is an expensive but very effective alteration.  When we priced out new windows for our home, we were amazed at the pricing, but feel that it will allow us to be more comfortable and save us money in the long run.

While there are other options to consider, we don’t feel that they are as practical, but we thought we would list them for you to think about:

Solar technologies for heating, and active systems for power generation to supplement the grid. 

Grey-water recycling system.  

 
Rainwater retention systems. 
 

Ventilation systems that replace indoor air with fresh outdoor air. 

A whole-house and reverse osmosis water filtering systems.  Provides better tasting water and also reduces the waste of bottled water.

Even if you do only a couple of these items, you will find that you have increased the comfort and value of your home for years to come. If you have any further questions about going green, feel free to contact us – www.AtlantaHousingSource.com or call 404.886.8789.

The first sale fell through partially because of the appraisal, but mostly because of the Buyers’ failure to follow the basic guidelines during the contract to close period.

First, the appraisal came in way too low for this great home with a lot of square footage.  The appraiser used a low square footage number for the size of the home for sale and a large square foot number for the size of one of the comparables.  The comparables that were used were bank owned which had deferred maintenance and therefore resulted in a low comparable value to the immaculately kept property I had listed and was under contract on.

The real reason this contact fell apart was the buyer’s agent and the buyer’s lender did not accurately communicate what was involved with buying a house. Evidently the Buyer, when initially applying for the loan listed their high hourly rate by their employer.  At the time of pre-qualification, they failed to mention they only work on a limited part time basis and not full time as was assumed in the initial qualification.

In addition, neither the buyer’s lender nor their agent provided any guidance to them about what you can and cannot do during the loan process.  From the time you apply for the loan until you close on the loan you should not go and change your spending habits. You should not buy anything that would change your credit score or debt to income ratios.  We advise all our buyers of this so that we can have a better chance of closing on the property. Unfortunately, this Buyer chose to go out and buy something on credit terms to the tune of some $300 per month payments.

With more monthly debt from the recent purchase and less income from the part time employment the buyer no longer qualified for the loan.  This was all found out 2 days before closing, after they had once extended the closing for 7 days to work out financing.  Unfortunately, our Seller had packed and was ready to load the truck and go when these items came to light. The Buyer’s lender kept telling us that everything was still a go up until the very last minute.

The remedy in this situation is, the Seller gets to keep the earnest money. Not much of a concession, but at least it is a little something for their trouble. The challenge however, is the Buyer won’t acknowledge them being the party at fault for the failure to close.  So the Broker holding the earnest money has to send a certified letter stating how the earnest money will be distributed.  In this instance, they were clearly in default, but we have seen other instances where that is not the case. All in all, the seller would prefer to have the property sold.

The main advantage of a short sale is that you can purchase a property for quite a bit less than market value. Home owners who are behind on their mortgage payments will often consider a short sale as an alternative to property foreclosure. This means that you have the opportunity to negotiate a low purchase price with the lender, so you can benefit from the reduced price when you resale the home in the future.

One of the main difficulties with a short sale is that you may experience resistance from the lender when making a purchase offer. By definition, you will offer less than the home owner owes on the mortgage, so the lender will incur a loss on the short sale. However, many times, a short sale represents a smaller financial loss than a foreclosure, so the lender may be willing to entertain your offer with a bit of persuasion.

The other big disadvantage to a short sale is the amount of time it takes for the lender to agree to a short sale. Therefore, if you are in a hurry to purchase, you are on a strict timeframe, you should really consider this before you move forward. We have seen short sales take 2-3 months to close. There are also other considerations like inspections, repairs, and seller contributions that would need to be discussed with your real estate agent for clarification if this is a good strategy for you.

Overall, a short sale poses fewer risks than other types of foreclosure or pre foreclosure sales. If you have the time and patience to devote to contacting sellers and lenders to arrange short sales, this can be a valuable and profitable investment.

As a real estate agent, we help both buyers and sellers navigate the short sale process.  

For a Guide on Selling your Home – Click here. 

For a Guide to Buying a Home – Click here.