Just today the United States House of Representatives voted 403-12 to extend and expand the Home Buyers Tax Credit.

The National Association of Realtors has provided this helpful document summarizing the details of the new Home Buyers Tax Credit.

Following the 48-0 vote by the United States Senate yesterday, and remembering our civics lessons, the Home Buyer Tax Credit will become law effective on the date that President Obama signs the bill.

Home Buyer Tax Credit Extension – Highlights of Changes:

*First Time Buyer Tax Credit is $8000 ($4000 if married/filing separately)

*+Tax Credit For Current Homeowner of $6500 ($3250 married/filing separately). Eligibility requires home being sold was principal residence for consecutive 5 years of the previous 8 years

*Credit Terminates for purchases After April 30, 2010. For the Extension Credit there needs to be a written, binding contract in effect on April 30, 2010. Purchasers will have until July 1st to close.

*You’ll note that the income limits have increased to $125,000 for a single purchaser and $225,000 for a married purchaser AND there is a limit of $800,000 on the cost of the home being purchased.

*The effective date of the Home Buyers Tax Credit Extension will be the date that President Obama signs the bill.

Be sure to save the the paper work from your purchase. Your documentation must be attached to your tax return. Check with your Accountant, but I’m guessing you will need your fully executed Agreement of Sale and your HUD-1.

This should bring a breath of fresh air to our housing markets and a smile to our piggy banks. Don’t miss out! Call me today, Judy Peterson 610-889-5509,  so that we can get started finding the right home for you!

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The Senate is working on approving  The First Time Home Buyer Tax Credit Extension. Part of the proposal is to Expand The Home Buyers Credit for existing home sellers/home buyers but so far there is no Senate Vote. Possibly next week there may be a vote ready to go to the House and from there who knows?

From Soap Operas like Days of Our Lives  (”tune in tomorrow for the next exciting episode”), to Dallas, we’re drawn to cliff hangers. Who didn’t tune in  to find out, Who Shot JR?

Remembering Saturday afternoon at the movies…return on deposit money pennies were saved from collecting empty Coke bottles, and then spent on Saturday afternoon movie adventures. We were transported by the story, as only children can be, until these words popped onto the screen …”To Be Continued”. They were delicious seconds of anticipation. But even before I could read, I’d cover my ears from the hoots and hollers, catapulting me back to reality as the lights came up.

Oh, how the good guys (white hats) and bad guys (black hats) would live on in our imaginations . . . until next time. We were children play acting with simplistic viewpoints.  What did we know of the flip side pain and agony of some real life cliff hangers?

First Time Home Buyers and their Real Estate Agents, are following the real life cliff hanger that’s become the “perfect storm” of our economy. It will take more than help for just First Time Home Buyers to improve the housing market. Expanding the Home Buyer Credit could be a positive place to start.

However, unless unemployment and confidence improves, we may just be giving money to those who might have purchased a home anyway.

Are The Good Guys In The House The Senate or Both?

The Senate has not approved a proposed extension of The First Time Home Buyers Tax Credit or yet voted for an expanded Home Buyer Credit. Doesn’t mean they won’t, but it’s not done yet.

I like this image. While it shows risk, it also shows something we all need right now skill, courage and hope!

Hold onto your hoots and hollers! I’ve received several emails saying that the Senate Proposal is a done deal and as far as I can tell, we’re not there yet.

. . . To Be Continued . . .

Want some reliable help with your real estate questions? Ready to buy a new home or need to sell a home? Contact or call me, Judy Peterson 610-889-5509 with all of your real estate questions and concerns.

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If you’ve been puzzled and sitting on the fence when it comes to your home ownership dreams all I can say is ouch! Now is the time to get off of the fence and take advantage of this opportunity for your potential First Time Home Buyers $8,000 Tax Credit*.

We all crave our own space, good neighbors to share a back yard barbecue with, a place for the kids, some flowers and a few tomato plants. Many of my first time home buyers can’t wait to say goodbye to “broker beige” and decorate in their favorite colors to express their personal style.

Check out my 7 Point First Time Home Buyers Quick Summary and let me know what you think? You might be looking forward to investing instead of throwing money away on rent. Our homes were never meant to be banks, but even with our current challenges in the financial and housing market, home ownership has historically out performed the stock market for investment return, interest rates are at historic lows, prices are down and sellers are motivated.

7 Point First Time Buyer Tax Credit Quick Summary. Do You Qualify For The First Time Home Buyer Tax Credit?*

1. You’re a First Time Buyer who has not owned a home within the last 3 years prior to your home purchase date
2. You will close on a home between January 2009 and November 30, 2009.
3. Your home purchase will be your primary residence, not a vacation or second home.
4. You are not purchasing a home from a close relative, parent, child or spouse
5. You DO NOT qualify if your single personal income is more than $95,000 or if your joint income is more than $170,000.
6. If you qualify, the credit you receive is equal to 10% of the purchase price up to $8,000.
7. Buyers with up to $75,000 of income and joint filers with up to $150,000 of income may get the maximum credit. But single buyers with incomes between $75,000 and $95,000 or joint filers whose income is between $150,000 and $170,000 may have their tax credit decrease at the upper range.

3 Ways To Use Your First Time Home Buyer Credit*

• Claim the First Time Home Buyer Credit on your Tax Return in 2009
• FHA may approve borrowing against the tax credit to help cover your closing costs or to increase your down payment
• since the $8,000 possible tax credit is a refundable tax credit up to 10% of the purchase price, and if your tax liability is less than $8,000, the IRS may refund the difference.

*Since I am not an Accountant or an Attorney I advise my clients to consult their Tax Adviser or Attorney with all of your tax related questions.

Call me to find out more about some good First Time Homebuyer choices, Judy Peterson, Realtor, Prudential Fox and Roach Devon Home Marketing 610-889-5509.

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I spend my days and sometimes nights helping home buyers and home sellers with the purchase and sale of real estate.  Even though we try to make it as easy and fun as possible, it’s work for everyone, the Buyers, their Buyer Agents, Sellers and the Listing Agent. I often remind my Seller clients that every offer to purchase is a compliment paid to the home Seller by the Buyers. Of all the homes on the market, the buyer chose yours!

Are Sellers Unrealistic Prices Making It Harder For Buyers to Buy?

Yes, in my experience and the experience of my Buyers, unrealistic prices are making it harder for buyers to buy.

Today’s Better Educated Home Buyers

The Consumers Guide To The Agreement of Sale that I provide free as a service to all of my Buyer Agent Clients, is a 35 page guide that gives a thorough review of each of the Agreement of Sale Clauses and choices about Home Inspection, Financing, inclusions, exclusions and the Sellers Disclosure Form that’s part of structuring an offer to purchase, or there should be.

Buyers Are Refusing To Finance A Pricing Fantasy

It’s not an uncommon story these days to hear about negotiations that stop just short of a signed agreement. Why the disconnect between Buyers and Sellers expectations? Have Sellers been adequately educated about house values in the current market so that they have set a realistic home sale price? And properly educated about how to prepare and price their home for sale in this market?

It Takes More Than Comparable Solds To Price Right In This Market

Stop to think about it and you’ll see why:

1. longer marketing periods
2. longer settlement times (due to home sale contingencies)
3. by the time a property becomes a “sold” and the sold price is published, it’s already over the hill
4. so there’s a shortage of good comps
5. the sellers need more and better statistical analysis of the market in order to price right.

The Buyers frustration grows when the listing agent provides “comparable” sold from 2006 or 2007 or 2008 that aren’t even remotely comparable.

An in-depth Comparative Market Analysis of the neighborhood and the market in general is prepared for my buyers prior to making an offer which includes, Comparable Solds (no more than 6 months old)  Days On Market, and a statistical analysis of the overall competitive real estate market are reviewed with the buyer, or should be. Today’s Buyers want to be well informed and educated. And they are.

Buyers have met with a Trident Mortgage Company (or other) representative for in-depth discussion of their financing options and credit history before getting their pre-approval, or they should have.

So how does it happen that it’s a surprise to a Seller when home buyers refuse to finance the fantasy of selling a home for 2006/2007 home sale prices? Just asking.  What do you think?

Searching for a Chester County Pa Main Line area new home? Need the services of an Accredited Buyer Agent? Or maybe you need to know your homes value and how much your home might sell for in today’s market? Contact or call 610-889-5509 Judy Peterson, Realtor, ABR, GRI, SRES, e-PRO, Prudential Fox and Roach Realtors Devon Home Marketing for all of your Chester County Main Line Pa area home buying and home selling needs. “Superb Service, Superb Results”

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By now, everyone’s heard about the 2009 First Time Home Buyers Tax Credit (Form available here), one of the 10 key features of the 2009 American Recovery and Reinvestment Act.

But, even if your not a First Time Home Buyer and if you are a home owner in Chester County or the Main Line Pa area who has recently purchased or sold a home, don’t forget to ask your Accountant about some of the benefits of home ownership that Uncle Sam traditionally offers to encourage home ownership.

There could be some tax benefit questions for you to ask about right on your HUD1 Settlement Sheet.  So be sure to provide your HUD 1 Settlement statement to your tax professional and ask about the following:

*origination fees/Points such as fees paid to get a lower interest rate, but  those that constitute a “service fee” may not be deductible.

*Pre-payment Penalties paid as the result of pulling out of a mortgage sooner than expected may be tax deductible

*Pro-rated real estate taxes – be sure to ask about deducting your fair share whether you’re a home buyer or a home seller.

*Pro-rated mortgage interest may be deductible. And depending on whether you closed early in the month or later, it could be more or less of a deduction.

*Expenses incurred to prepare your home for sale should be documented for your tax preparer especially if you sold a primary residence.

Is your HUD-1 Settlement still packed away with the moving boxes? Just give your Realtor® or Title Company a call. If you worked with me,  Prudential Fox Roach Realtors and Trident Land Transfer, we’ll be happy to get you a copy.

Each year I email Settlement HUD-1 copies to clients to help with tax return preparations.

*For informational purposes only. Consult your professional tax specialist or Accountant for all tax preparation advice.

Contact or call Judy Peterson Realtor 610-889-5509 Prudential Fox and Roach Realtors Devon Home Marketing  for the best internet savvy real estate services in the communities of the Philadelphia Main Line  and Chester County Pennsylvania area. Judy Peterson is your internet real estate specialist offering “Superb Service,and Superb Results”.

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We’re having a Sunday Open House at 432 Sharon Drive, Wayne Pa 19087, Upper Merion Township, Sunday, March 1, 2009 from 2-4pm. Come visit this charming Ranch Style home. Sharon Drive offers easy one floor living in a wonderful neighborhood, next to Roberts Elementary School, and close to King of Prussia Mall Shopping and nearby commuting from the Wayne Strafford Train Station. An upgraded kitchen, upgraded baths and all new windows are just a few features that make this a best buy for First Time Home Buyers or Downsizing Home Buyers at an offering Price of $329,000. No Condo Fees. Best location for commuting to Center City, King of Prussia, Wayne, Main Line Pa area! Better than a town home! Have questions? Call Judy Peterson Prudential Fox and Roach Realtors 610-889-5509.

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After all of the confusing housing information that’s been circulating as both the House and the Senate have struggled with how to stimulate the Housing Industry into growth, we now have the agreed on House and Senate Bill going to President Obama’s Desk this week for signature.

Following are some of the details of H.R. 1, the American Recovery and Reinvestment Act of 2009 that we’ll all need to embrace and work with. This Summary Chart from NAR provides the high points (pdf file)

~ First Time Home Buyer Tax Credit of $8,ooo  available 1/1/09 to 12/1/09 to reduce tax liability. This one doesn’t need to be repaid. If the full credit isn’t used the unused balance will be refunded.
~ According to the NAR, 44% of all home buyers are First Time Buyers
~ HUD is expected to publish the new Loan Limits soon.  FHA, Fannie Mae and Freddie MAC Estimated Loan Limits from NAR (pdf file)

New Construction Buyers, Move Up Buyers and Municipalities?

1. There are real estate markets impacted by recent events where the majority of real estate  transactions are “move up buyers” and “new construction buyers”. The First Time Home buyer range may be well under $300,000.
2. Local governments are depending on property transfer tax to fund community services.
3. In the best of all possible worlds, those of us who work with buyers might have designed the “ideal” program differently, to be one that benefited ALL buyers and stimulated new construction as the National Association of Realtors recommended.
4. Move up buyers and new construction buyers also stimulate jobs AND the sale of thousands of homes, washers, dryers and other appliances. Including ALL buyers in a credit could have only been a plus to the recovery.

I’m very happy for all First Time Home Buyers. Fancy convoluted credits to be repaid? I’m glad they’re gone from this version. But 56% of all home buyers will not receive a credit from this stimulus package.

But what do I know. I’m not an expert.* Does it meet the need? I don’t know. Maybe. I hope so. I really do. Guess, we’ll know soon enough. Maybe there will be a sequel, you know like in the movies, Raiders of The Lost Housing Market Ark.  I like Harrison Ford. Sorry, I try to watch my non sequiturs, but that one sneaked in.

What do you think?

Like to know more about how you might benefit from The Reinvestment Act of 2009, Contact or call me 610-889-5509 Judy Peterson, Pennsylvania, Chester County Main Line Pa Realtor Prudential Fox Roach Realtors

Related Articles of Interest:

• First Time Home Buyers-What Should I Ask For
• First Time Home Buyers Begin At The Beginning
• 7 Super Saver Money Tips For First Time Buyers
  

• First Time Home Buyers Get Their Ducks In A Row

*No comments in this article are intended as legal or accounting advice. Consult your attorney and accountant for all tax advice.

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It’s a simple question. Deceptively simple. But almost always asked by First Time Home Buyers here in Chester County, Delaware County and Montgomery County. And truth be known, there’s many a tale to tell. Some not very pretty and some could be a sitcom. But here’s the, ” What should I ask for?” Inclusion Exclusion basics:

Negotiating For Your First Home

My answer often begins with, “It depends” followed by more questions:

• how strong is the home Buyer’s offer?
• price
• terms
• financing contingencies

There’s an old saying in real estate when you’re negotiating. You either get the “price” or you get the “terms”. Not usually both. But sometimes you can get both. So what are inclusions and exclusions. How does negotiating work?

Inclusions in an Agreement of Sale are defined as the items that the Seller wants to include with the home purchase. Could be anything from the washer, dryer to a refrigerator or other personal items.

“Fixtures” are defined by Pennsylvania Law to be the items that are affixed to the property and may not be removed. Fixtures are items like the drapery rods, the stove, light fixtures, switch plate covers and all items that are nailed down or affixed to the property. Fixtures are not personal property. In other words the shower stays but not the shower curtain.

Personal Property are items that the seller added, and are not affixed such as most furniture, draperies, the oriental carpets, artwork, etc

Exclusions are those items defined by the Seller as items that the Seller doesn’t want to convey with the property.

In our Pennsylvania Listing Agreements, Inclusions and Exclusions are identified in the Listing Agreement and displayed in the Multiple Listing or Brochures, but not always. Inclusions and Exclusions should be named in any fully executed Agreement of Sale.

Negotiating For Real Estate Is Like A Dance

Now here’s where the fun begins. The truth is that it’s all negotiable IF AND ONLY IF both parties want it to be and agree IN WRITING. Every negotiation begins with an offer, then a response, etc.  If everyone hears the same music, it’s a little like a good dance. Here’s a caution. After the Agreement is fully executed (signed by all) every subsequent negotiation “opens up” the agreement and potentially puts the offer at risk.

My Buyer Agency Negotiation Skills Follow and Lead

Is that your Great Grandmothers’ crystal chandelier you forgot to exclude?  Sellers, help me out here.  Exclude it or replace it before my Buyer sees it and falls in love. The lawyers will be disappointed. But I’ll be eternally grateful.

Did I ever tell you about the time that the Buyer wouldn’t buy unless….and then the Seller… Well, maybe next time!

Need a skilled negotiator for your Chester County home, Delaware County home or Montgomery County home? You came to the right place. I love to negotiate! Contact or call Judy Peterson at Prudential Fox and Roach Realtors 610-889-5509 for my best negotiating tips.

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We’re puzzled in Tredyffrin Township Chester County.

From what I hear at my Open Houses, you’re puzzled about our real estate market and how it compares to other real estate markets in the news and around the country.

Tredyffrin Township, like much of the Philadelphia Suburban Real Estate Market, just doesn’t quite fit the popular real estate market mold that’s frequently commented on in the news these days. Fortunately for us, we haven’t experienced the carnage of other real estate markets.

Confidence Crises or Reality Crises?

So, we’re Waiting and Waiting  – Who knows what we’re waiting for?

Maybe we’re waiting for the stroke of a pen in January. Some people say that they’re waiting for the “bottom of the market”.

Buyers who wait to hear that we have hit the bottom will then be buying in a “rising market”.  Now, I’m puzzled because that means lost opportunities, especially for First Time Home Buyers.

As I look at these numbers, I’m beginning to think that we could realize six months from now that this WAS it. This WAS the bottom.

Take a closer look, Median Sold Prices down 16% in Tredyffrin Township compared to November 2006, but For Sale Prices down 3%.

Could this be a puzzle piece falling into place or the sound of opportunity knocking? It looks to me as though Sellers may be proceeding along the lines of “make me an offer”. “My price is already down a median 3%, BUT I’ll sprint to the finish line with you if you give me the chance”.

Tredyffrin Township Median Sold Prices November 2008 vs November 2006

• Median For Sale Price Nov 2006 $482,500, Nov 2008 $469,450 down 3%
• Median Sold Price Nov 2006 $449,000, Nov 2008 $378,750 down 16%

Tredyffrin Township Months Supply of Inventory and DOM:

• MSI November 2006 6.9 Months; MSI November 2008 9.5 Months up 37% from November 2006
• Day On Market (DOM) for Tredyffrin Township was 52 days on the market in November 2006 and is 55 Days on the market in November 2008 up 7%. The number of Days on the market has been dropping since September 2008.
• Under Contract Homes in November 2006 – 30 homes, November 2008 18 homes; down 40%
• New Listings November 2006 36; November 2008 25 new listings, down 31%
• Residual Inventory November 2006,176 homes on the market; November 2008 149 homes on the market in Tredyffrin, down 15%

Dropping Inventory numbers, dropping median sold prices, not unreasonable days on the market. By the way, Interest Rates are down for Conforming Loans and Jumbo Rates are reasonable. Not that anything is typical in this market, but Interest rates usually go up in the Spring. I’m just sayin… Stay tuned!

What do you think? Have some thoughts about our real estate market in Tredyffrin? Add them to the comments or give me a call 610-889-5509 if you see opportunity knocking or send me an email. I’m always ready to help with your questions.

Related Articles of Interest:

• First Time Home Buyers Begin At The Beginning

• First Time Home Buyers Get Their Ducks In A Row

• First Time Home Buyers Tax Credit Is Good News For Buyers

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The very first thing you want to be doing, when your goal is to be a first time home owner, is to be saving in as many ways as you can find. Check out 100 Tips For Saving from The Simple Dollar or some of the 75 Money Saving Tips From Dough Roller.

You could adjust your lifestyle from eating out three times a week to cooking at home, buy less prepared food, cut out the junk food, take your own coffee in a thermos cup, brown bag your lunch.  For a working couple just taking your own lunch could easily save thousands a year.  Saving more is increasingly practical advice for each of us.

Souper Savings From The Pot To The Bank

In honor of Thanksgiving, here’s my Mom’s Turkey Soup Recipe. Like all great cooks, she had the creative instincts to add a magical “pinch of this and that”.

Beg, borrow and save those bones. In my growing up years, everything went in the soup pot. That’s a tradition I love. Home made soup is more nutritious. You’ll feel good when you come home to an easy dinner, knowing the savings brings you one step closer to your dream home. Try making your own bread. It’s fun, cheap and incredibly easy. Takes no more than 6 or 7 ingredients and none of them requires a chemistry degree to pronounce.

7 Super Money Saver Tips For First Time Home Buyers

1. First, hire a Realtor who is an Accredited Buyer Agent to represent only you and your best interests. You want someone who will meet with you face to face and help you make and execute a plan.

2. Second, talk to a Lender ASAP. Someone who thinks long term and who will help you get “Pre-approved” early in the process. Know what to do and what not to do with your finances. Just mention my name to my Trident experts, Todd and Matt. There’s no charge and no obligation to talk. You need time to repair credit issues. You must know your realistic buying range before shopping. Very few sellers will even look at an offer these days without a pre-approval.

3. Be realistic about your needs and “wish list”. A perfect home is the one you create, not the one you buy. Don’t be too picky about decorating. Decorating can be changed, but not the location. Consider a town home or condo, then leverage your way up the home ownership ladder.

4. Timing – If I find you the perfect home today, are you ready to buy today? When is your lease up?  Ask your landlord if you could sublet or buy out a month. Will this be your home for 6 or 7 years? Plan to be a move up buyer? Or is this where you want to put down roots for your family? It makes a difference in your choices about location, schools and financing.

5. Don’t be house poor. Even buyers who qualify for Luxury Homes, purchase homes for much less in order to keep their lifestyle choices open for vacations, etc.

6. Inspections – This is not the place to save money. Do every inspection that’s indicated by the property condition, such as Home Inspections, Radon,Termite, Septic, Well, Lead Paint, etc. Negotiate for a Home Warranty paid for by the Sellers. It can protect you in your first year of home ownership.

7. Research – Drive the route to work (during the same business travel times), to the train station, to schools, shopping and to family and friends. With the help of your Realtor, research the County and the Township on proposed building plans, road construction and taxes that could impact value.

Oh, and by the way, don’t forget about the $7500 Tax Credit For First Time Home Buyers that runs out as of July 1, 2009. We will be watching for other economic recovery help for home buyers after the first of the year.

Have a good soup recipe or some money saving tips to share? Add yours to the comments or send me an email and I’ll post them for you. Contact or call Judy 610-889-5509. I love to help First Time Home Buyers realize their dreams to own a home.

Related Articles of Interest:

• First Time Home Buyers Begin At The Beginning

• First Time Home Buyers Get Their Ducks In A Row

• First Time Home Buyers Tax Credit Is Good News For Buyers

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