We are fast approaching the busiest time of the year for real estate.In addition to that on April 30, 2010 the much talked about homebuyer tax credit comes to an end for first time and move-up homebuyers.
Take a look at the statistics that compare January 2009 and January 2010.One thing is for sure regardless of year the greatest percent of homes selling range between $100,000 to $199,999.There was an increase this year in homes sold under $99,999.That could be the reason for the decrease in average price this year.
To see the annual sales trends for San Antonio over the last 6 years click here.
If you or someone you know has tried obtaining a mortgage loan, then you probably know that banks have tightened up their approval process. This is not only true for buying a home in San Antonio, but nationwide.It’s important to have a good credit score. What’s a good credit score?I have some lenders saying 580+ and others saying a minimum of 620.What is clear is that the higher your credit score the lower your mortgage interest rate.
The NBC Today show talked to my favorite Real Estate Extraordinaire, Barbara Corcoran.She talks about the Link to video 7 Mistakes Homebuyers Make to Their Credit.A few of the mistakes include:
- Making big purchases prior to closing
- Closing open credit cards
- Spending too much time mortgage shopping
Watch this video to make sure you are not hindering your chances on securing that home loan.
On Wednesday the Senate voted 98-0 and yesterday the House voted 403-12 on legislation that includes the extension and expansion of the first time homebuyer tax credit. It is reported that the President signed the bill today.
First-time Homebuyers
The first-time homebuyer tax credit will be extended until April 30, 2010. In addition, those who have signed a contract before May 1, 2010 will have 60 days to close on the home.
Increases the income limits to $125,000 on a single return and $225,000 on a joint return.
Those who purchase in 2010 will be able to claim credit on 2009 tax return.
Definition of first-time buyer: those who have not owned a home in the last three years.
The credit will remain at $8,000.
Move-up Buyers
Those who have owned the same home for 5 consecutive of the last 8 years will be eligible for a $6,500 tax credit.
The $6,500 tax credit will be eligible for purchases between December 1, 2009 and May 1, 2010. The same opportunity to close within 60 days applies.
The income limits are also $125,000 on a single return and $225,000 on a joint return.
Those who purchase in 2010 will be able to claim the credit on 2009 tax return.
Other provisions regarding the homebuyer tax credit:
No homes over $800,000 will be eligible for the tax credit.
It will extend the tax credit for the military and other Foreign Service Officers serving abroad through April 30, 2011. It also waves the recapture fee for all military personnel should the individual move and sells the home within 3 years.
As November 30th approaches many have wondered will lawmakers extend the tax credit to first time home buyers. It looks like we are getting close! Although a final deal has not been reached, there are encouraging signs that a deal is likley.
The proposed deal (which is still subject to change) would extend the tax credit until April 30,2010 and also expand it to “move up” borrowers (yeah!).
Details of the revised homebuyer credit are as follows:
Credit would be 10% of sales price up to $7290
For first time homebuyers, the income level to qualify is $ 75,000 single/150,000 married.
For “move up” buyers the income level to qualify is $ 125,000 single/250,000 married.
For “move up” buyers, they must have been residing in their primary residence for 5 years.
The credit would run from Dec. 1, 2009 to April 30, 2010.
Bonus Bonus!! They are talking about adding to the proposed plan that all sales contracts signed as of April 30, 2010 would have 60 days to close.
Although this is all real exciting news until it's signed into law, it is all subject to change.
So you found your Realtor now it's time to find a new home. Before showing you homes most Realtors will ask if you have been pre- approved. Realtors ask that question because it's the first step in the home buying process and you need to know:
1. Your ability to qualify for a mortgage loan. You don't qualify, you can't purchase a home or may need to look at someone co-signing for you.
2. How much of a loan do you qualify for...this is how we will set a price range. Example: $150,000 - $175,000.
3. What kind of down payment will you need? If you are looking in rural areas, but still in Bexar county you might qualify for 100% financing.
4. The closing cost associated with your transaction. On average closing cost will be 5%-6% of the sales price.
Keep in mind...When you find your dream home before you can write-up an offer you will need a pre-approval letter from a lender.
Next week: Asking the right questions when meeting with a lender.
A seller will often ask me “what made the buyer select theirs over ours? Sometimes that’s an easy answer and other times there’s no obvious reason other than buyer preference. Being the chosen one is the ultimate goal to a seller. It’s the validation of why you originally put your house on the market. When a buyer is choosing a home what is it about the chosen one? I thought it would be a good topic to blog on since we are in a buyers market and we have more sellers out there each vying for the title of The Chosen One (a.k.a. Home Sold)!
Being the chosen one allows for you to FEAR no more!
F = Freedom: to move, downsize, create a nest egg, buy a bigger home, etc
E = Excitement: walking down the road to SOLD
A = Accomplishment: hard work paid off
R = Relief: no more living spotless 24/7
You may be thinking why would there be fear in selling a home? Because it’s the idea of people not saying nice things about the house, the idea of having the home sit on the market day after day, the fear of no showings, the fear of not pricing right, etc. We fear the unknown and the challenge is to be in the know as best you can!
Join me as I take you on the journey through the eyes of potential buyers. Our trip next week will explore outside forces that affect the saleability of a home.
What do they say? You have one chance to make a great first impression. Wouldn’t this apply to your home as well? Would you consider purchasing something without finding it appealing? Don’t we naturally gravitate towards things that are visually attractive?
What does the exterior of your home say? Does it say I’m well cared for and maintained or does it say it’s going to cost money to fix this mess?
As a Realtor it sometimes takes me a minute or two to open the house. So while I’m fiddling with the lockbox the buyer is looking around at the yard, looking at the door condition and checking out the exterior paint.
Real Estate is personal, emotional and sometimes can be difficult for a homeowner to objectively look at their home. The first step in staging the exterior should be to have a friend or neighbor view your house from the curb. Ask them “what is your first impression?” This type of “proofing” will help give your house a better curb appeal and a non-emotional perspective on your home.
Some important things to look for is to make sure your lawn is well manicured. Is your grass green or dirt? Dead or alive?
Remove any junk or clutter from the yard, including tree limbs, leaves and especially your children’s toys. Trimming trees and re-seeding any bare areas of the lawn, as well as adding mulch to planting beds and around trees, will improve the look of your lawn.
Another great tip would be to plant colorful flowers. Colorful flowers are easy to purchase and not costly, some great annual and perennials can be found at your local Wal-Mart or Home Depot. I wouldn’t say I have a green thumb so if I can do it anybody can plant a few flowers!
Other than making sure the lawn is aesthetically pleasing, you should look at your fences, windows, and screens. Fixing, repairing, and re-painting may need to take place. If you are missing some screens it will be noted in the inspection report. It’s probably cheaper to fix a few screens then it become a deal breaker between you and the buyer.
Make sure your driveway is clear of oil stains, thus power washing may be helpful. Don’t have a power washer? Call a painter! I contacted a painter I knew and he took care of a client’s driveway and even power washed the house. If you have a deck or porch make sure it is nicely stained or painted.
I don’t normally encourage someone to think in the gutter, but when you are selling your home you need to think gutters! Check your gutters to make sure they are cleaned out and in good working condition. Lastly, make sure the doorbell and all exterior lights are operational.
Remember first impressions matter. The better the impression your house makes on buyers, the closer you will be to having a For Sale sign in your yard. A great first impression opens the door for a great second impression with the interior of the home.
The San Antonio Board of Realtors just published the Single Family Home Sales Report for March 2009.
Take a look! In March the average sales price for a single family home in San Antonio, Texas was $174,388.
As you can see the top 3 price ranges are:
$120,000 to $139,000 with 161 homes sold $140,000 to $159,999 with 140 homes sold $200,000 to $249,000 with 136 homes sold.
As of March 31, 2009:
Number of homes pending: 946 (14 were condos)
Average listing price for a home on the market: $186,724 and for a
condo $110,655.
Next month I will share with you April's housing numbers.
You’ve decide it’s time to buy a house. You are excited to start looking at all the homes available. If you are like 87% of the buyers you will probably begin your search online. You find a few homes you like and can’t wait to see them. You call a REALTOR only to be asked if you have been pre-approved. Are you? Do you know it means to be pre-approved? No? Kind of? Let me explain.
When you decide to purchase your first home or even if you are veteran to the home buying business you should first find a lender (most REALTORS can recommend someone) that can tell you how much you can spend on a home.
When you are pre-approved by a lender that means you have filled out a loan application and the lender has examined your financial situation and will put in writing their commitment to fund a loan. You are not committed to borrow the money, but getting pre-approved allows you to move quickly when you find the home of your dreams.
Many buyers wonder why they are discouraged from looking at homes prior to being pre-approved for a loan. Often times our wishes are greater than what we can actually afford. The pre-approval process will confirm a price range that the buyer can comfortably shop. Plus getting pre-approved lets the buyer know where they stand financially. For example: Do you have outstanding debt that needs to be paid? Are there any negative remarks on your credit report? Do you know your credit score and what is your debt to income ratio?
The pre-approval process will allow any seller to have confidence in your offer as they know you are a serious buyer, as your financial status is not in question.
Next week learn how the pre-approval process can also be used as leverage in your offer.
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