What to do now that the tax credit has arrived?

As you’ve already read in “First Time Home Buyer Tax Credit – The New Extension And Expansion,” the new changes to the First Time Home Buyer Tax Credit allows for so-called “move-up” buyers to receive a tax credit of up to $6,500. So how does this affect you as a potential new move-up buyer in San Antonio. The idea seems simple. Take the house you’ve owned for at least five of the eight past years, sell it, and buy a new one (that doesn’t have to bigger or more expensive than your current one – you can actually downsize). File the appropriate forms (Form 5405 (pdf) and a “properly executed” HUD-1) with the IRS and receive a tax credit check in the mailbox. Simple. Right?

Well, here’s the problem. You have to sell your home. Although it’s possible you may be in the position to afford two mortgage payments, chances are, you’re not. Very few have that luxury and even when they do, I advise against it. Things can change very quickly in life and to get stuck with two payments you can’t afford is a big risk to take. So, let’s assume you don’t have that luxury.

We need to get that house sold. How’s the San Antonio market performing in terms of days on market (DOM)? If we don’t take a look at this, you could easily lose out on your chance of getting everything wrapped up in time to make the deadline for the extension of the First Time Home Buyer Tax Credit. Not only do you have to sell your house in time, but you have to buy one as well.

The San Antonio seller and average days on market.

As you can see, the average days on market for San Antonio is running at around 175 days. That’s about 5.8 months. Guess where that puts us if we listed your home today? May 3, 2010. Guess when the First Time Home Buyer Tax Credit expires? May 1, 2010 (you have to have put the home under contract on or before April 30, 2010). So, if you’re home follows the San Antonio average, you’re out of luck.

So what do you do?

First, make your decision that you want to go for this…and make it now. Don’t wait, as a few weeks could make all the difference between selling your home and not receiving the tax credit. Second, don’t despair completely over the chart I just showed you. You see, those are stats for all of San Antonio, we need to look at your area and not the city as a whole. For instance, San Antonio 78250 is running around 142.5 average days on market. To view your zip code’s data, check out the San Antonio Market Reports page on the site. Or just contact me and I’ll gladly run a full report for your area (with much more info than just days on market).

Armed with that data, we can begin to build a plan for the sale of your home. Although averages might be high, it doesn’t mean we can’t beat the average. That’s always the goal! Between simple steps to make your home shine to the right price to aggressive internet marketing, your home doesn’t have to sit on the market forever. During the time your home is on the market we’ll have a lot to accomplish as well. From getting you pre-approved for your next home to searching the San Antonio MLS for your next home, the work won’t stop. Plus, we’ll have to time when to actually begin searching for homes as we don’t want to start too early only to find a home that you fall in love with that we can’t make an offer on just yet (and watch it be bought by someone else). As well, once we have a contract on your home, we’ll have to deal with inspections, surveys, and getting all of our paperwork in line. Good thing that’s part of my job. I’ll keep it all on track and get us to our goals in the most efficient way possible.

It can be done, you just need to be prepared and have a San Antonio Realtor® on your side who’s ready to work hard and help you through the process. Have questions, just let me know.

photo courtesy of procsilas

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Tax credits for everyone (almost).

After several premature announcements that the First Time Home Buyer Tax Credit has been extended and expanded, the amendment (S.A. 2712) to the Worker, Homeownership, and Business Assistance Act of 2009 has been voted, passed, and signed into law by the President. Effective immediately, this amendment changes the previous version of the First Time Home Buyer Tax Credit set to expire December 1, 2009. The extension carries the tax credit to May 1, 2009 (see below for more explanation) and the expansion now brings “move-up” buyers to the table as well.

The Extension.

The new extension of the First Time Home Buyer Tax Credit removes the previous expiration of December 1, 2009 and changes it to May 1, 2010. Much like the old tax credit, it expires on that date, which means all actions must be taken on or before April 30, 2010. Unlike the old version, the new version allows for timely closings to occur. Now, your new home must be under contract (fully executed) on April 30th, but you will now be given time to close. As long as your transaction is fully closed (and I’m going to assume funded, although I have not seen specifics on that) before July 1, 2010 (in other words on or before June 30, 2010), you will be able to file and claim the tax credit.

The amount of the tax credit remains the same – 10% of the purchase price up to $8,000.

Income limits have changed for individuals and couples. Previous limits were $75,000/$125,000 and have now been raised to $125,000 for individuals and $225,000 for married couples.

There will be no tax credit on homes priced higher than $800,000 and the tax credit only applies to primary residents (second homes and investment properties do not qualify).

Buyers will now be required to provide proof of the home purchase with a copy of their “properly executed” HUD-1 Settlement Sheet.

The Expansion.

For the first time since the First Time Home Buyer Tax Credit program began, the tax credit will now be available to buyers who are not classified as first time home buyers (having not owned a home in the last three years). These so-called “move-up” buyers will now have a chance to take advantage of their own version of the tax credit. Many of the rules remain the same, but their are some differences.

The term “move-up” buyers is technically incorrect. The wording in the amendment calls them “long-time residents of same principal residence.” What does that mean? First, you don’t have to move up (ie, buy a larger or more expensive home – you can actually down size and still qualify). The government defines these newly qualified buyers as having owned and used the same home as their principal residence for five consecutive years during the past eight years. Although, you don’t have to “move-up,” I have a feeling that term will stick as it’s been tossed around for quite some time. Just remember that it doesn’t quite mean what it sounds like it does.

These buyers will be eligible for a tax credit of 10% of the purchase price up to $6,500.

All the amendments concerning the extension (see above) apply to the expansion (except the actually tax credit amount).

The IRS.

Unfortunately, as with any program of this nature, someone out there always gets the great idea to cheat the system. The First Time Home Buyer Tax Credit has been no exception. Reports of people claiming the credit before buying a home or not buying a home at all, claiming in when they weren’t eligible to qualify, claiming it on the tax returns of a four year old…when you’re doing a refundable tax credit, instances of fraud increase.

The IRS will now require the HUD-1 Settlement Statement as previously stated as well as refuse any claims from taxpayers under the age of 18. I suspect they will be doing much more auditing and double checking this time around. Make sure you visit with your tax professional when you decide to claim the First Time Home Buyer Tax Credit. Any time you’re dealing with the IRS and taxes, you should seek professionals in that field. Although I am well-read on the tax credit, I do not spend my days reading tax law and understanding the inner workings of the IRS.

The Military.

For military members deployed outside of the United States for a minimum of 90 days between December 31, 2008 and May 1, 2010, the tax credit is extended on purchases before May 1, 2011 (home must be under contract on or before April 30, 2011). These contracts must be closed before July 1, 2009 (must close on your home on or before June 30, 2011)

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Welcome to Georg Ranch.

Georg Ranch (not George) is a community of acreage home sites located off of FM 3009 in Garden Ridge Texas 78266 (map). With a mix of custom builders and plans from Ryland Homes (Ryland is currently sold out in the community and but maintains the office here at Georg Ranch for sales at neighboring Arrowood Estates), Georg Ranch offers large wooded lots for your new dream home. A gated community with quick access to FM 2252 and I 35, this neighborhood offers a park like setting with luxury homes in a country setting.

Come experience why Garden Ridge is one of the fast growing areas on San Antonio’s Northeast side. Stop by RE/MAX Access (19115 FM 2252, #7 Garden Ridge TX 78266), my office, on your way out to the community and say hello. I’ll be happy to show you how to get there and discuss other communities in the area with you.

If you’d like to view homes currently available or take a look at some of the lots available in Georg Ranch subdivision, contact me.

If you’re thinking of buying a home in Georg Ranch, you can search for homes in the community by clicking the link below:

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Frustrating, isn’t it?

I had a closing the other day. Or at least I was supposed to. It didn’t happen. I’ve been lucky in my real estate career and had most of my homes close on time or within agreed upon extensions. I don’t have the horror stories some agents have about late closings. I wouldn’t even call this a horror story, but we didn’t close yesterday. It’s frustrating for me and the client, but it doesn’t have to be devastating.

The key to keeping a closing from turning into a nightmare is to have a great team in place. From the lender to the Realtor® to the closer at the title company; everyone has to be communicating and ready to jump through a few hoops to keep things on track. It doesn’t hurt to have the other agent be on top of things as well.

This was the case for me on this transaction. Our closer at the title company (Chastity Dinh at Fidelity National Title) was getting a little concerned we weren’t going to hit our closing date, so she made a few calls to the lender, who had yet to send over their paperwork. Turns out, someone at the bank (who was not part of my team – I was working with the seller) had fallen asleep and not paid attention. It turned into a game of “well I thought…” The closer immediately jumped into action, informing the agents of what was going on and we all went to work. Phone calls and emails keep us all in sync and before long all the paperwork was back in our hands and we were ready to close.

Who’s your team?

Quite often, a client comes to me with lenders, title companies, insurance agents, and others that they’ve worked with in the past. Sometimes they don’t. First time home buyers usually haven’t built those connections yet and look to us for advice and opinions about the different services necessary to take a home from a contract all the way to closing. No matter what part of the real estate puzzle, there are always lots of choices. Making a wise, informed decision is the key. Ask your agent for a few suggestions. Ask the others involved too. A closer will always know plenty of great lenders. The inspector probably knows a great contractor to help with the work you need done on your new home.

I have a simple policy with my team. Do great work and you’ll keep getting referrals. Do bad work and you’ll be forgotten. Get to know the members of your agent’s team as well as you know your agent. They’re just as important in bringing the whole transaction together and without one, the others will struggle in getting you to the closing table on time.

photo courtesy of Evil Erin

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Like one 30,000 piece puzzle.

In writing a real estate blog, I have had the opportunity to connect with many people throughout San Antonio (and the world). It’s always interesting to me to see why someone connects with me, whether they’re looking for an agent or not. It’s not always real estate around here all the time, there is more to it than that. Sure, I am a Realtor® and need to sell houses to survive, but I’ve actually found that the connections make this all the more interesting. It’s not just about the “job” – it’s more than that.

With the coming of age of social media, people are connecting with each other at lightning fast speeds. Before we even meet someone (online or in real life), we can get a sense of who they are and what they do. We can learn things about them that we might not learn for years using the older methods of connecting. Not that face to face will ever die, but we can now accomplish a lot more than we could before.

Have we connected?

You’re obviously here reading this, but perhaps you’d like other ways to communicate or get to know me. Of course, you can always email me at email hidden; JavaScript is required or call me at (210) 646-HOME, but perhaps you still just want to be in the background and get to know me through what I do online.

Twitter – You can follow me on Twitter @rerockstar. On Twitter I like to engage others in conversation, share links to things I’m reading or doing, and talk real estate with other Realtors® and local San Antonio residents. Conversations vary and you never know what the topic will be. If you’re on Twitter, follow me and send me a tweet. I’d love to get to know you. Many people fear that they’ll have to hear the real estate agent harp about homes they’ve listed or why now is a great time to buy. I am not a broadcast machine on Twitter. I do post my listings and feed my blogs to there, but most of my activity is getting to know people around me. Why not join me?

Facebook – I don’t use Facebook quite as often as I should, but I’m trying to get more involved there. My Facebook is once again, a bit of everything. I tend to share more links there than on Twitter and probably converse less there. At some point I’ll get my business page up (or “Fan Page” as they call them) and I’ll let you know when. Perhaps if I get more people engaging there, I might move more time over to it.

Foursquare – Foursquare is relatively new in San Antonio and I mention it here only because I would love to see more locals on it. Foursquare is an interesting look at what people do with their days. When they “check-in” to a local place, they are tagged as being there. In cases of large cities that have been doing it for sometime, there are impromptu meet-ups and gatherings all based on the fact that people sharing similar interests wind up in the same place. You control when you’re checked in, so don’t worry, Foursquare doesn’t track you and show your every move.

Just a few places you can find me and where you can connect with me outside of this blog. Some people find commenting on blogs intimidating and prefer to connect in other ways, so I thought I’d show you a few other places you can find me. If you live in San Antonio; come find me, say hello, and get to know me. Yes, I’m a real estate agent, but no, I won’t twist your arm and make you buy or sell with me – only you can make that decision.

photo courtesy of liza31337

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Don’t believe the hype… it’s wrong.

Update: The amendment allowing for the extension and expansion did eventually pass and was signed into law by the President. You can read up on the new rules and changes in “First Time Home Buyer Tax Credit – The New Extension And Expansion.”

Ugh. Here we go again. The First Time Home Buyer Tax Credit has not been extended, despite what you may have heard in the last 24 hours. I hate to be the bearer of bad news, but it’s true. The First Time Home Buyer Tax Credit is set to expire November 30, 2009, just as it always was. There has been no extension and nothing passed that makes it available to “move up buyers.” As of today (October 29, 2009), you have exactly 32 days (see the tax credit countdown clock) to close on a home in order to take advantage of the $8,000 tax credit being offered by the government.

“But I read it on Twitter!”

“I read it on ActiveRain!” “I saw it in the email from my Realtor®!” “My agent called me yesterday to tell me the great news!” Guess what folks? Those people that told you that? They lied. They screwed up. They trusted another source who told them. They’re just plain stupid. However you want to paint the picture, they are wrong. And we as real estate professionals wonder why we get a bad rap? People make mistakes, I’m fine with that. But once again, we’re looking at a mass scale spouting of incorrect information. I’m shocked, saddened, and more than a bit frustrated.

Let’s get it right.

The Senate reached a tentative agreement on proposed legislation. Of course, if you know much about politics, that’s only one step of many. No votes, no signings, no deal. I have seen many tweets and references on sites to articles – many of which have no wrong information in them. Yet the message others choose to add to that link is that the First Time Home Buyer Tax Credit has been extended.

The link most commonly quoted is the CNBC article “Democrats Agree to Extend Home-Buyer Tax Credit: Dodd.” Take a moment to read that article. Read it through and tell me where you see an announcement that it has been extended. It’s not there. It never happened. In fact, the article is quite clear that a vote in the Senate on whether or not to take up a bill to extend unemployment benefits is expected to happen Tuesday at 6PM (5 days from this post’s writing). That bill does not include an extension of the First Time Home Buyer Tax Credit at this time. If Senate Majority Leader Harry Reid can get the 60 votes necessary to take up that bill, he has said he would offer the tax credit extension as an amendment.

As you can see, we’re not there. Yet. Most agents I know seem to think it will happen at this point. I was speaking with Jay Thompson, “Phoenix Real Estate Guy,” who has written a brilliant article on the misinformation about the tax credit and we agreed that very few politicians would be able to vote against an extension and expansion of the tax credit. Doing so would probably be marked as political suicide. Shame that many leaders vote based on how to get re-elected, but it happens everyday. If you don’t know Jay’s real estate blog, I suggest you read it no matter where you live – Jay is an amazing guy who has personally helped shape me as a real estate agent through his words and deeds).

Spread the word.

I ask you, the readers of RErockstar.com, to please spread the word to your friends and family. If you hear someone say it has been extended, let them know the real deal. The misinformation is always quick to spread and it makes me sad to watch. Our industry will never shake its image if we continue on like this. Unfortunately, because we are such a loose collection of individuals, there will always be some who are misinformed or unwittingly (or worse, knowingly) pass false information onto their clients. That (small) percentage of the Realtor® population will always tarnish the image of those who work hard, care for their clients, and want this industry to move past the image of slimy snake oil salesman and guys in leisure suits selling used cars.

When (and if) the First Time Home Buyer Tax Credit is expanded or extended, I will bring you the news as quick as I can type it. In the meantime, if you ever have questions, feel free to contact me and I will get them answered. I love getting feedback from readers on topics to cover and the nagging questions that you need and want answered.

photo courtesy of Nima Badiey

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This post isn’t about real estate.

Since I was a kid I was always fascinated by the sky and more specifically, stars. Perhaps it had something to do with my obsession with Star Wars as a kid, but no matter what it was, I always loved seeing them. I can remember as a kid pouting on cloudy nights when I wanted to look up and see the sprinkling of stars available to me each night. As I got older and got to travel, I was privileged to be able to see some of the best night skies available to mankind.

Places like Norway, Sweden, and Finland, where pollution is low and the crisp night air allows you to see forever. Arizona, where the lack of humidity makes the light from each star seem brighter. And my personal favorite – Australia, where the sky looks like someone dumped a bag of glitter onto the dark night sky. On the road between Canberra and Sydney there were more stars than my brain could comprehend in the dark of night. If you ever get a chance to go, look up and you’ll see what I mean.

Even though those places all had amazing stars, I still love the Texas night sky. Even though I live in a major city like San Antonio, I still see more stars than I used to in my home state of Pennsylvania. I spend a few minutes each morning on my deck out back, listening to the quiet and enjoying a cup of coffee and more often than not, my eyes wander skyward. “Deep In The Heart Of Texas” always pops into my head at some point – I guess I can blame Pee Wee Herman and Mrs. Menard (a mother of a kid I went to school with who was a very proud Texan). Thanks Texas, I love your stars (and for once, I’m not talking about the NHL team).

photo courtesy of jdurchen

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Welcome to The Reserve at Deerfield.

The Reserve at Deerfield, a community by McNair Homes is located off of Bitters Road, between Blanco and Huebner in San Antonio 78248 (map). With gorgeous one and two story garden homes built in a small enclave of homes, this neighborhood shouldn’t take long to sell out of lots (there were 6 lots left when I stopped in and several inventory homes available). McNair Homes builds some gorgeous Mediterranean style homes and The Reserve at Deerfield is no exception. In addition to the beautiful exteriors, McNair Homes does an excellent job with their interiors offering what many other builders would classify as upgrades at no extra cost.

The communities along Bitters Road are San Antonio’s hidden little gems. Offering excellent access to highways, shops, and just about everywhere with their centralized location; you can be on any side of town in a lot less time than you would think. I’ve always been amazed at how little traffic there is typically on the area roads, even at rush hour. I often prefer these roads to the overcrowded 1604 and 281 in the evening hours. Don’t even think about being on the outside of the Loop when you can stay inside the Loop and enjoy luxurious amenities from a custom home builder.

If you’d like to take a tour of The Reserve at Deerfield and view their inventory and model homes, contact me.

If you’re thinking of buying or building a home in The Reserve at Deerfield, you can search for homes in the community by clicking the link below:

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