Mitch Weigel\’s Blog

Just listed in Fayetteville’s Country Club Estates is this well maintained 3 bedroom 2 bath house near the golf course and club house.   This home features a living room cathedral ceilings and gas log fireplace, a kitchen with updated stainless steel appliances and a gas range and an additional detached his & her golf cart garage.   Located in a cul-de-sac from this home you can be on the course in a matter of minutes!

Great news Fayetteville!   After a long search Oseguera’s Mexican Restaurant will re-open in Fayetteville.   Their new location will be 23 E. Center  Street (formally Mariachi’s or Cafe Santa Fe for us really old timers) and is expected to be up and running soon!  

If you are in the market for a new home, you may still be able to claim the First-Time Homebuyer Credit. Congress recently passed The Worker, Homeownership and Business Assistance Act Of 2009, extending the First-Time Homebuyer Credit and expanding who qualifies.Here are the top 10 things the IRS wants you to know about the expanded credit and the qualifications you must meet in order to qualify for it.

1. You must buy “ or enter into a binding contract to buy a principal residence “ on or before April 30, 2010.
2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.
3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.
4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you™ve lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.
5. The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250.
6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.
7. The IRS will issue a December 2009 revision of Form 5405 to claim this credit. The December 2009 form must be used for homes purchased after November 6, 2009 “ whether the credit is claimed for 2008 or for 2009 “ and for all home purchases that are claimed on 2009 returns.
8. No credit is available if the purchase price of the home exceeds $800,000.
9. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.
10. A dependent is not eligible to claim the credit.

For more information about the expanded First-Time Home Buyer Credit, visit IRS.gov/recovery.

While falling values are not good indicators for sellers, they™re great news for buyers, lifting affordability to historically high levels.   For example, to purchase a median priced home of $164,600 with 20% down and an interest rate of 5.1%, a buyer would need an annual income of just under $35,000.

With the lowest interest rates we’ve seen in forty years, now is an opportune time to lock in a rate on a fixed loan.   Rates are already showing signs of rising, and waiting too long could negatively affect your ability to secure such a mortgage.

In addition to rising interest rates, the fees on loan applications may also start increasing.   This is because lenders have reassessed their risk to reward ratios in light of all the recent loan defaults.   Around the corner, we might expect higher mortgage insurance premiums and closing costs, not to mention tougher and tougher terms for qualification.

With interest rates and loan fees still at very affordable levels, now is the time to make your move and secure your financial stability through home ownership.   If you buy a $150,000 home today and it appreciates at a very conservative 3% annually, that home would be worth nearly $164,000 in three years.

Don’t let all the negative stories about real estate blind you to the many positive factors for buyers in today’s market.

Real estate professionals are very often faced with a question from buyers that has nothing to do with houses: “What are the best schools in the area to which we™re moving?”   When you relocate, the most important thing you’ll be moving is your child, and you want to be certain you are making the right choice for education.

One excellent resource for beginning your research is SchoolMatters.com, an online database of public schools.   Begin with statistics that illustrate students’ achievement levels in each school.   Compare reports for all students, including minorities and children in low-income families.   Schools in which all students perform well are providing balanced educational opportunities.

Also pay attention to extra-curricular activities offered, particularly if your child is interested in sports and other pursuits outside the classroom.   The School Matters database offers ratings and reviews directly from the parents, so you can learn from those with experience.

One thing you can’t determine online, however, is the actual classroom environment, so you should absolutely schedule a visit to one or more schools in the area before making your decision.   Meet with the principal and watch the manner in which teachers and students interact.

Once you have an understanding of the distinctions between schools, your choice will become clear.   You wouldn’t buy the first home you see, and “shopping” for a school is no different!

For any number of reasons, more people than ever are downsizing these days.   Whether it’s reduction in income, reduction in family size, or just a desire for easier living, smaller homes are becoming more attractive.

There are challenges associated with downsizing, but experience has taught some valuable lessons that you may find useful.   Once you’ve decided to sell, start the moving process immediately.   Your home will even show better once you’ve begun packing things away.  As you decide what to keep, consider donating unwanted items or holding a yard sale.

Solicit family members for help, and see how many belongings might be passed along to family and friends.   After all, they say that charity begins at home, right?

You can also “digitize” paper records with a scanner, saving them on your computer, or using an online storage service for an added layer of security.   Just be sure electronic versions of certain records are legally acceptable.

If you’re still left with a lot of furniture and accessories, you should strongly consider including such items in the listing for your home.   First-time buyers may be particularly attracted to such an offering, saving them time and money on furnishing their home, and expediting the entire transaction.

These tips may help you downsize, but of course, any move presents its challenges.   Speak with  me today for more advice.

A “buyers’ market” is just what it implies – a market in which buyers have the advantage and exploit it.   It’s not a market that rewards foot-dragging, hesitation or indecision.

Unfortunately, all the factors that created the buyers’ market we have today have been reported so negatively and rampantly by various media outlets that buyers are themselves too spooked to even enter the fray.   Strangely, people were buying like crazy during the previous sellers’ market, when the advantage was actually all to the sellers.

That’s when buyers didn’t fear paying too much, and now that prices are so low and inventories so high, suddenly buyers DO fear paying too much!   However, it’s impossible to purposefully time the market to buy at the bottom and sell at the top.  

Once the market begins to settle and subsequently improve (and it will), the amazing buying opportunities we’ve been seeing will begin to disappear.   With decreased buying activity now, pent up demand for homes will explode when the market recovers, and buyers will once again be competing for the best homes.  

Don’t rely on luck in the marketplace – rely on planning.   Make a careful decision with a predictable outcome.   Has the market dropped enough, right now, to make such a purchase?   Absolutely!   Forget about the top and the bottom and enter your “safe zone” with confidence.

ALERT: Buyers only have until December 1, 2009 to take advantage of the first-time buyers tax credit authorized in the American Recovery and Reinvestment Act of 2009.     Consult now with your tax advisor and real estate representative to get moving. The purchase must close on or before Monday, November 30, 2009! Ths means that you need to be under contract by at least November 1 and if you plan to monetize the credit for use as a down payment most lenders will need your contract before October 15!

Most first-time buyers (who haven™t owned a home in three years) will qualify.   If you’re married, you and your spouse must both satisfy this description.  

There are income limits for claiming the credit of up to 10% of the home’s purchase price, which maxes out at $8,000.   If your modified adjusted gross income (on IRS Form 1040, line 37) is less than $75,000 for individuals or $150,000 for married filing jointly, you can claim the maximum credit.   For incomes up to $95,000 or $170,000 respectively, the credit is reduced.

This is not a tax “deduction,” but a tax “credit,” meaning that the amount you claim is reduced from your total tax bill!   If you will owe less than $8,000 on your 2009 return, you’ll get a REFUND from the IRS for the difference!

The biggest news is that in response to pressure from the National Association of REALTORS ®, FHA lenders will allow buyers to use the credit to cover closing costs, buy down the rate or as additional down payment!   I urge you to take this money from the government and make your move before December.   Time is running out; call now!

After all your preparations and marketing efforts, what do you do when you get that first offer?   Don’t jump for joy or wallow in disappointment until you’ve read all the terms.   Price is just the beginning, and other contingencies will ultimately affect your bottom line.

In reviewing the offer, pay attention to seller concessions, which can range from asking you to pay closing costs to including an allowance for roof repairs.   Buyers may also request inclusion of certain articles of personal property not physically attached to the home.   This might include the refrigerator or pieces of furniture.   You can decline or accept the terms, but it’s best to establish in your listing those items included and excluded in the sale.

Mortgage and appraisal contingencies indicate that the buyer will seek financing at a certain rate and terms, and that the appraisal must satisfy the lender.   Make sure that all of the terms are realistic, and that there is a reasonable time limit for the buyers to secure their financing.

These and other terms in the offer impact how much you net from your sale, regardless of what actual buying price is stated.   It’s possible that a œfull price offer could result in thousands less than a lower offer with fewer contingencies, so please consult with  me before listing and before accepting or rejecting any offers.

When buyers become scarce, sellers have to step up and make their offering stand out to attract attention.   Without spending a fortune, sellers can easily highlight several of their home’s features.

First, beat buyers to the punch with a pre-listing home inspection.   By discovering and fixing problems before buyers ever see the home, you can impress them with a worry-free, move-in-now opportunity. Leave your repair receipts out during showings, so that buyers can see all the improvements you’ve made just for them!

Once the mechanical and structural features of your home have been addressed, move on to the aesthetic details.   First impressions count, so make sure your home is inviting from the curb.   Spiff up landscaping, paint, entries, and windows.

Inside, pay attention to bath and kitchen details, because those rooms are often most important when buyers are making a decision.   Aside from deep cleaning, consider updating bath and kitchen features with new and contemporary drawer pulls, faucets, and even sinks.

Finally, get a jump on your moving by organizing your closets and ditching or packing all you possibly can.   A good guideline is to reduce your closets to half-full, so that the buyers can easily picture the space for their own storage needs.

A few “preemptive strikes” should be all you need to attract buyers and offers, so ask  me for tips today!