Real(tor) Thoughts

Extended & Expanded Homebuyer Tax Credit Signed into Law

2009-11-09T12:40:00.003-07:00

The Basics: Extended Home Buyer Tax Credit 2009/2010

As part of its plan to stimulate the U.S. housing market and address the economic challenges facing our nation, Congress has passed and President Obama has signed new legislation that:

Extends the First-Time Home Buyer Tax Credit of up to $8,000 to first-time home buyers until April 30, 2010.
Expands the credit to grant a $6,500 credit to current home owners purchasing a new or existing home between November 6, 2009 and April 30, 2010.

Here is more information about how the Extended Home Buyer Tax Credit can help prospective home buyers . . .

Latest news:Tax Credit Extension a Positive Step Toward Real Estate Recovery (Nov.5)

President's Podcast: Tax Credit Extended (Nov. 5)

Who Qualifies for the Extended Credit?

First-time home buyers who purchase homes between November 6, 2009 and April 30, 2010.
Current home owners purchasing a home between November 6, 2009 and April 30, 2010, who have used the home being sold or vacated as a principal residence for five consecutive years within the last eight.

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. If you purchased a home between January 1, 2009 and the date the bill is signed by President Obama, please see: 2009 First-Time Home Buyer Tax Credit.

Which Properties Are Eligible?

The Extended Home Buyer Tax Credit may be applied to primary residences, including: single-family homes, condos, townhomes, and co-ops.

How Much Is Available?

The maximum allowable credit for first-time home buyers is $8,000.

The maximum allowable credit for current homeowners is $6,500.

How is a Buyer's Credit Amount Determined?

Each home buyer’s tax credit is determined by 2 additional factors:

The price of the home.
The buyer's income.

Price: Under the Extended Home Buyer Tax Credit, credit may only be awarded on homes purchased for $800,000 or less.

Buyer Income: Under the Extended Home Buyer Tax Credit, which is effective on November 6, 2009, single buyers with incomes up to $125,000 and married couples with incomes up to $225,000—may receive the maximum tax credit.

These income limits have changed from the 2009 First-Time Home Buyer Tax Credit limits. If you purchased a home between January 1, 2009 and November 5, 2009, please see 2009 First-Time Home Buyer Tax Credit.

If the Buyer(s)’ Income Exceeds These Limits, Can He/She Still Get a Credit?

Yes, some buyers may still be eligible for the credit.

The credit decreases for buyers who earn between $125,000 and $145,000 for single buyers and between $225,000 and $245,000 for home buyers filing jointly. The amount of the tax credit decreases 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.

Can a Buyer Still Qualify If He/She Closes After April 30, 2010?

Under the Extended Home Buyer Tax Credit, as long as a written binding contract to purchase is in effect on April 30, 2010, the purchaser will have until July 1, 2010 to close.

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 credit will be recouped on the sale.

Update on Homebuyer Tax Credit

2009-11-04T10:25:00.002-07:00

The House has voted and approved legislation to extend the tax credit! It should reach the President's desk by Friday for his signature. The bill contains the following changes to the current legislation (which expires at the end of this month):

1. The income cap would be expanded to $125,000.00 per individual and $225,000.00 for a couple.
2. Homes must be under contract by April 30th and close by June 30th.
3. Non-first time buyers could receive a $6500.00 tax credit if they have owned their home for at least 5 of the past 8 years.

These changes are NOT FINAL and still could be tweaked or eliminated completely. We'll see what happens...

More on Title Companies

2009-11-03T16:13:00.001-07:00

Had a "conversation" with someone after my last post on title companies, which led me trying to (unsuccessfully) remember the name of the group that rates title companies so you could do some comparison shopping when buying a home. But I finally found it -- http://www.fitchratings.com/.

Possible Extension/Expansion of Homebuyer Tax Credit?

2009-10-30T12:35:00.000-06:00

The National Association of Realtors is lobbying Congress to support an Extended and Expanded Tax Credit. Proposals are flying about, so who knows the final outcome, but seems like many may contain the following provisions:

Amount: $8,000

Eligibility: ALL home buyers (so-called "step-up" buyers will have to have lived in their current home for a number of years -- currently under negotiation for 3, 5, or 7 years).

Income Limits: $125,000 for single filers and $225,000 for joint filers

Time Frame: December 1, 2009 to April 30, 2010 (plus 60 Day extension if binding contract is in place by April 30, 2010)

What do YOU think of extending the deadline from the current 11/30/09, and broadening it to include ALL homebuyers rather than just first-time buyers?

FSBO Seminar

2009-10-27T16:12:00.000-06:00

I am hosting my second-ever "For Sale By Owner 101" seminar on Saturday, November 7th, 10:00-11:00 am. Would LOVE to have you attend, or pass the info on to anyone else who may be interested. We had lots of great questions last spring, and expect more of the same this time around. Click on this link for a flier...

Maze in the Maize

2009-10-17T15:05:00.005-06:00

Yet another reason to love the Rio Grande Community Farm! If you aren't already familiar with this place, check out the website to learn more about this 50 acre non-profit farm growing healthy, organic food for the Albuquerque area, offer community gardening opportunities, support local food networks, and maintain wildlife habitat.

This year the Maze in the Maize at the celebrates Monarch butterflies and depicts the life cycle from caterpillar to adult. The Maze is open weekends until November 9, Fridays 6:00 - 9:00 pm; Saturdays, 10:00 am - 9:00 pm; Sundays: 11:00 am- 6:00 pm. You can also see a Haunted Maze on October 30 and 31st: open till Midnight. The cost is $7 for adults and $3 for children 4-11, under 4 are free. Maze/Farm Location: Vehicle access is west of 4th St on Montaño Rd. and north on Tierra Viva Rd. Parking is available in the gravel lot on the west side of Tierra Viva Rd.

What the Heck is Title Insurance Anyway?

2009-10-16T13:39:00.000-06:00

From the numerous confused phone calls I get before closing, it's pretty clear that title insurance is not well understood.

When purchasing a home, instead of purchasing the actual building or land, you are really purchasing the title to the property -- the right to occupy and use the space. That title may be limited by rights and claims asserted by others. Title insurance protects against these types of title "hazards."

What Does Your Premium Really Pay For?

An important part of title insurance is its emphasis on risk elimination before they insure you. The process begins with a search of public land records affecting the real estate concerned. In NM, examination is conducted by a title agent on behalf of its underwriter to determine whether the property is insurable. Here are some examples of documents that can present concerns:

Deeds, wills and trusts that contain improper wording or incorrect names;

Outstanding mortgages and judgments, or a lien against the property because the seller has not paid taxes or not paid a contractor who did work on the house;

Easements that allow construction of a road or utility line; or

Pending legal action against the property that could affect a purchaser.

Through the search and the examination, title problems are disclosed so they can be corrected whenever possible. Even the most careful preventative work, however, cannot locate all hidden title hazards.

Hidden Title Hazards

In spite of all the work that goes on behind the scenes during a title search, hidden hazards can emerge after closing, resulting in unpleasant and costly surprises. Some examples of hazards include:

A forged signature on the deed, which would mean no transfer of ownership to you;
An unknown heir of a previous owner who is claiming ownership of the property;
Instruments executed under an expired or a fabricated power of attorney; or

Mistakes in the public records.

Title insurance offers financial protection against these and other covered title hazards. Your home is your most important investment -- be sure to protect it with an owner's title insurance policy.

Median Home Prices

2009-10-12T15:09:00.000-06:00

Click on this cool interactive map to see quarterly median home price for our area, and it's percentage change from last year -- Albuquerque's median price as of the 2nd quarter of 2009 is $182,200, down 8.6% from last year.

It's a little hard to click on exactly the city you want to choose in more populous areas because they put a little housing icon on the map, but it's still fun!

Refinance NOW!

2009-10-07T11:23:00.000-06:00

Ran across an excellent blog post from Todd Tresidder of FinancialMentor.com, that included some sound reasoning for why you should consider refinancing your mortgage. I'm not above "borrowing" from others, so here's part of what he writes:

"Interest rates are bouncing off historic lows. I recently refinanced my home with a 4.75% 30 year fixed rate loan… unbelievable! At that rate I can't ever imagine wanting to pay it off. My investment returns greatly exceed that rate, and inflation is highly likely to approach or exceed that rate over the lifetime of the loan. What that means is they are effectively paying me to borrow the money when they offer rates that low."

To read the blog post in it's entirety, check out http://financialmentor.com/wealth-building/the-benefits-of-recession/2213

What's in a Name?

2009-10-03T13:20:00.000-06:00

OK, admittedly this is just goofing off, but one thing led to another in my rambling Internet journey, and I ran across this website where you can make an anagram out of your name -- in case you're search for a pseudonym for some reason. Here are some for "Kathleen Connors" that I will NOT be using, even though they're FANTASTIC:

Clean Honker Snot

Nacho Snorkel Net

Chaos Kennel Torn

Acne Knelt Honors

Happy Weekend!

Balloon Fiesta

2009-09-29T12:08:00.001-06:00

Now that the State Fair JUST ending, gear up for Balloon Fiesta! It starts Saturday October 3 and runs through the 11th. Mass ascension begins at 7 am, so drag yourself out of bed to see one of our city's finest annual events. I promise there'll be breakfast burritos and hot chocolate for sale ...

Get the Skinny

2009-09-25T10:32:00.002-06:00

Check out this website for some great demographic info about your zip code, compare it to others, look at colorful charts... www.zipskinny.com

Neighborhood Crime Reports

2009-09-21T10:25:00.000-06:00

The Albuquerque Police Department is now utilizing crimereports.com, a powerful program which displays crimes on a map for a geographic area, which can be sorted by type of crime, date, or distance from an address. VERY useful if you want to know what types of crimes are being reported around a home you are considering purchasing.

The new site can also help you stay updated on what's happening in your current neighborhood. You can be a part of crime prevention -- be aware of your surroundings, look out for unusual activity in your area and meet your neighbors.

A Star is Born

2009-09-17T12:50:00.004-06:00

Thanks to the fans for your patience in waiting to see my husband made famous in film, as I'm sure you've been on the edge of your seat since the "press release" in 2007.

Well, it seems that it's finally coming out ... straight to video. I've just pre-ordered my copy, and I'd advise you to do the same while supplies last!

Best Places to Live

2009-09-16T09:49:00.000-06:00

Albuquerque just topped U.S. News and World Report's top 10 Best Places to Live 2009. Ok, ok, so the list is alphabetical, but we are on the list of just TEN cities in the U.S.! Editors searched for affordable communities that have strong economies and plenty of fun things to do. They were particularly impressed with our incredible landscapes, climate, arts community, and manufacturing and research. As well they should be!

Mortgages Taking Longer to Close

2009-09-09T09:58:00.000-06:00

Effective July 30, 2009, legislation went into effect that mandates certain "cooling off" periods surrounding home loan applications. Dubbed HERA, or the Housing and Economic Recovery Act of 2008, the law mandates that certain trigger points of the mortgage application offer consumers time to evaluate whether a transaction is best suited for them.

The impact from this legislation is that additional time should be allotted to ensure on-time closings, in some cases as much as 15-30 more days to provide ample time to meet all potential delays. I'm recommending allowing AT LEAST 6 weeks to close (up 2 weeks from the past standard of 4 weeks).

Starting with the initial application, three business days must pass before a lender can accept payment for anything besides a minimal fee for a credit report, which means that a lender cannot accept or collect an appraisal fee in this initial three-day time frame. During this time, the borrower is expected to review the documents to ensure that all fees and the annual percentage rate or A.P.R. are within reason and match what was disclosed upfront.

In addition, if at anytime in the application process a change to the A.P.R. occurs in excess of .125% for a fixed rate or .25% for an adjustable rate mortgage, a new Truth in Lending statement must be delivered to the borrower, and three business days must pass before the mortgage can be funded. So any last minute changes are now likely to delay closing by 3 days -- and there are very often last minute changes!

Items that can trigger a change in the original A.P.R. can include but are not limited to locking a floating rate at a higher rate than on the original application, a change in the loan program, a change in the originally estimated closing date, and a change in fees or down payment.

Mars vs. Venus

2009-09-01T07:55:00.000-06:00

Here are some highlights from an interesting survey recently done by Coldwell Banker Real Estate LLC of 1,000 individuals to see how much men and women differ in the home-buying process:

Women may be inclined to make up their mind more quickly than men …

When asked how long it took before they knew their home was “right” for them, almost 70 percent of women had made up their mind the day they walked into the house, vs. 62 percent of men. Conversely, significantly more men needed two or more visits: (32 percent of men vs. 23 percent of women).

Women would rather live closer to their extended family than to their job …

55 percent of women find it more important to be closer to their extended family (those that do not live in their household) than to their job, compared to only 37 percent of men.

A home’s security is a deal-breaker for both men and women …

64 percent of women said that if they found the home of their dreams but had concerns about its security, they would no longer be interested. More than half of men agreed (51 percent).

Couples say that no one “wears the pants in the relationship” in terms of major financial decisions …

When asked who wears the pants in the relationship (when it comes to major financial decisions, such as purchasing a home), almost 70 percent of respondents living with their significant other said it’s actually mutual.

However, 23 percent think that they, themselves, wear the pants in the relationship, not their partner. More men than women said this (26 percent vs. 20 percent, respectively).

Men and women agree on how they would use a spare room, for the most part …

When the respondents were asked how they would use an extra 12 x 12 room if it could be anything they wanted, men and women agreed on the top three most popular, and very practical, responses:

Bedroom: 25%

Office/Study: 15%
Family Room / Den: 11%

However, men really do want a “Man Cave”…

Interestingly, out of the 8 percent who indicated they would turn that spare room into an entertainment center, it was a preponderance of men leading the charge. In fact, four times as many men as women said they would use the extra space for recreation / entertainment.

Metro Income Up

2009-08-28T08:02:00.000-06:00

The income per person in metro Albuquerque grew 2.8% to $34,239 between 2007 and 2008, the Bureau of Economic Analysis reports.

Albuquerque to Benefit from Recovery Act

2009-08-24T10:45:00.000-06:00

The American Recovery and Reinvestment Act of 2009 authorizes $1 Billion in HUD Community Development Block Grant funding for state local governments to promote a wide range of community development activities. These funds are expected to stabilize property values, prevent neighborhood blight, and create and preserve jobs.

Albuquerque will receive $1,181,843, which it plans to use for 3 projects: (1) Sunset Gardens Water and Sewer Improvements; (2) Casa Grande acquisition and demolition -- to acquire demolish and prepare the site for mixed income housing; and (3) improvements to downtown facades.

To find out how other New Mexico cities -- or any other city in America -- plan to utilize their allotment, click on the Recovery Act website. What a great website that shows us exactly where the money is going!

More Help for NM's Lower-Income Homeowners

2009-08-21T10:00:00.000-06:00

$6 Billion in federal funding will soon be available for state and local housing authorities and non-profit organizations through the Neighborhood Stabilization Program. The funding is intended to combat blight by reducing the number of foreclosed homes on the market. Funds will be made eligible to households earning no more than 120% of the median income for the local area, and must be used for primary residences. The NM Mortgage Finance Authority (MFA) expects to receive $8,708,000, with a total of $1,750,000 to be spent in Rio Rancho/Sandoval County.

MFA is also coordinating federal funds that are available for weatherization upgrades through their statewide Energy$mart program. Families at or below 200% of the poverty level qualify for services, that include a wide range from windows to water heaters to insulation to refrigerators. Income limits depend on family size (for example, a family of 4 could have a maximum annual income of $44,100 to qualify). Contact 345-4949, 877-345-4949, or www.centralnmhousing.org/weatherization for more info on the program and how to apply.

2009 Mid-Year Real Estate Reports

2009-08-19T14:17:00.000-06:00

Now available for download from the Market Data Center at ColdwellBankerLegacy.com:

Coldwell Banker Legacy Metro Albuquerque 2009 Mid Year Residential Real Estate Report. Here's the link: http://www.coldwellbankerlegacy.com/Brokers/Content/CBLegacy/MarketData/ABQResidentialReport_2009MidYear.pdf

Also, the link to the Greater Albuquerque Association of Realtors's July 2009 Monthly Market Report: http://www.gaar.com/market_statistics/report/july_2009_monthly_market_report/

Some Monthly Highlights:

Pending sales for detached homes sales in all the Southwest Multiple Listing Service market areas are up .46 percent from the previous year.

Closed sales for detached homes in the Southest Multiple Listing Service market areas are up 13.25 percent from June 2009 and 4.40 percent from July 2008.

Dollar volume of closed sales for detached homes indicates a -2.89 percent decrease from July 2008, which is a signficant reduction from the -15 to -40 percent range seen over the last 23-months.

State Fair Time

2009-08-18T20:03:00.001-06:00

The 17-day New Mexico State Fair opens September 11. Most days have a theme. Hispanic Heritage Day gets the focus September 13 with Boy Scouts and Girl Scouts featured September 23. Cars provide five themes. Plan your visit at the Fair's website!

Cheapest and Most Expensive Homes in ABQ

2009-08-17T10:14:00.002-06:00

Just for fun, I took a look at the MLS to find the cheapest and most expensive single-family homes currently available in the City of Albuquerque.

And the CHEAPEST is...
1513-A Jesus St SE

And guess what -- it's not gross! In fact, it's kinda cute. 1-2 bedrooms, with even 1.5 baths, for just $63,500. Adobe construction, tin roof, updated systems... you could definitely do much worse!

And the MOST EXPENSIVE is...
11804 Del Rey NE

At $3,450,000, it far surpasses the price of anything else currently for sale (it's the only property that tips the scale over $3 million). And it's not gross either. 4-5 bedrooms, 5 baths, a pool ... my favorite part is that you can "mix & match" the 6 lots available around it, taking advantage of the full 5.8 acres or settling for less if you wish (you may consider that, since you'll probably be spending most of your days cleaning the colossal 6300 square feet, and just may not have the time for all that yard work).

I'd love to help you buy either one of these!

Help for Low Income Homeowners in Bernallio County

2009-08-14T12:29:00.000-06:00

The unincorporated areas of Bernalillo County will soon receive over $1 Million to improve living conditions for low income residents. The program is first come, first served, and will provide up to $50,000 per home to correct bad roofs, heating and cooling issues, electrical code violations, and to provide handicap accessible mechanisms. To apply for aid, call the Bernalillo County Housing Department at (505) 314-0200 or online at http://www.bernco.gov/.

Yum!

2009-08-11T11:43:00.000-06:00

Do you obsessively watch Food Network shows and think to yourself, "I wish I could get a great gig like being a judge on one of these shows"? (No? It's just me?) Well now you can!

The 5th Annual Salsa Fiesta is scheduled for Saturday, August 15th in Old Town - and YOU can be a judge! For $4 you can sample and vote for your favorite salsa or $4 to judge wine (or pay $6 for both). There will be live Salsa music, art, children's activities and more! The event runs from 2-9 p.m.

Participating wineries include: Anasazi Fields (Placitas), Luna Rossa Winery (Deming), Matheson Wine Co. (Rio Rancho), Wines of the San Juan (Farmington), Vivac Winery (Dixon), Tierra Encantada Vineyards (Albuquerque), Guadalupe Vineyards (San Fidel), Don Quixote Distillery and Winery (Los Alamos), Southwest Wines/St. Clair Winery (Deming/Albuquerque).