Entries categorized as ‘First-time homebuyer’

Yes, the American Dream is still alive!

June 14, 2010 · Leave a Comment

By: Leslie Williamson

Housing Watch recently posted an article stating “from a recent survey, the home ownership dream is in decline.” Forty-nine percent out of the 2,000 persons surveyed believe they will never be able to have a down payment for a home.

As an eternal optimist, I believe that the American Dream of homeownership is still alive and well!  A market in flux is gradually coming to an end and we are once again entering a market of opportunity.  The market is back to a more “traditional” pace of growth and absorption, a far cry from the free fall we recently experience and much more stable than the artificial levels of 2004 and 2005.

According to the NAHB, “Even though the homebuyer tax credit expired on April 30, 2010 and won’t be renewed, there may never be a better time to buy a home than today.”  Most buyers can take advantage of today’s competitive prices and get a home they may not have been able to purchase just a few years ago.

Loan programs are still available to offer affordable down payments through FHA, down payment assistance programs and grants.  The main objective to qualify for the different loan programs to assistance with a down payment is good credit.

Yes, the American Dream of homeownership is still alive and well!

Categories: FHA financing · First-time homebuyer · Home Builders Association of Atlanta · NRT Development Advisors · Real Estate

Buying Your First Home

March 7, 2010 · Leave a Comment

By: Jessica Weston

With only 2 more months to take advantage of the $8,000 federal tax credit, those of you who are first time homebuyers are eager to utilize the government’s money and capitalize on the great offers in the real estate market. 

 However, buying your first home can be very overwhelming and confusing, especially in a market in which location, location, location is no longer the iconic slogan of the real estate industry – it’s now best deal, best deal, best deal, which broadens your search tremendously, making your decision even more overwhelming.   Buyer incentives are everywhere, and the comparable search is no longer simply comparable. 

To all of you first time homebuyers, as you spend your time searching for your perfect first home, it behooves you to work with an agent that has your best interest at heart.  He / she will help educate you to make a decision that is right for you, your pocketbook, and your lifestyle.  Your real estate agent will first instruct you to get pre-approved by a reputable lender prior to beginning your home search.  The pre-approval process will help you narrow your search by limiting the price point you can afford.  Narrowing your search to be based on price will be one step to a more simplified buying process.

An agent will not only guide you in finding your home, but will also be able to help you through the stressful contract negotiations and explain all of the underlying costs of a new home purchase.  And, as you’re choosing your new home, your agent will also help you determine if the house is not just the right house for you, but if it is also the right investment for you.

 Above are just a few of the reasons why it is imperative that a first time homebuyer work with a trusted and knowledgeable real estate.  Agents are authorized to act on your behalf and to limit the stress so you can enjoy the excitement of your first home!

Categories: First-time homebuyer

Practicing What We Preach – How to Sell Real Estate in this Economy

March 3, 2010 · Leave a Comment

By: Judy Price

In my previous post To Extend Or Not To Extend, I blogged about my belief that the government should extend the first-time homebuyer tax credit. Not only was I listened to, but Americans were also given an expanded credit for those living in a primary residence for more than 5 years. Well, just this past week, I sold my condo (a primary residence of over 5 years) to a first-time home buyer. And how did I do that in this economy, you ask? After doing a thorough analysis of active and sold listings in the market and looking to the success CBNRTDA is having at our on-site communities, I did the following:

• Energy-priced the home so that I was competitive with the market

• Offered an agent incentive (an additional 1% commission)

• Staged the condo so that it always looked like a model home; I even incorporated sound for showings

• Used the extensive internet exposure offered by Coldwell Banker and also invested in regular e-blasts with various messages for the market

• Reached out to local brokers

• Regularly followed-up with prospective buyers

What did I learn from selling my resale condominium in this market? That the tried and true methods CBNRTDA uses each day at our on-site communities are very effective. When I used these same methods, I generating qualified traffic and got the sale. These days, it is a combination of price, exposure and prospecting to go from listing to SOLD!

Categories: First-time homebuyer · NRT Development Advisors · Real Estate · Uncategorized
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HUD is scheduled to report changes to FHA lending!

January 20, 2010 · Leave a Comment

HUD is scheduled to report changes to FHA lending terms in an effort to shore up the program against increased financial losses.

The expected changes are as follows:

  1. Increase the mortgage insurance premium, which is collected at closing and most often financed with the loan from 1.75% to 2.25% of the loan amount.
  2. Require that any borrower with a credit score less than 580 put down 10%.  3.5% down will continue to be required by HUD with credit scores equal to and greater than 580.
  3. Seller concessions will be limited to 3% of the purchase price verses the current 6% limit.

Categories: FHA financing · First-time homebuyer · Real Estate
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Types of loans available for REO homes

December 9, 2009 · Leave a Comment

In today’s current economy, REO homes – or bank-owned homes – present an advantageous opportunity for buyers looking for a good deal. However, there is a misconception about REO homes, as many people seem to think that there are limited loan options when purchasing an REO property. Actually, two very popular loan types are available for REO home purchases: FHA and Rural Housing loans.

FHA is a federal assistance mortgage loan in the United States insured by the Federal Housing Administration that is issued by federally qualified lenders. Benefits include:

 - Lower down payment than conventional financing – only a 3.5% down payment required

 - More forgiving credit standards

 - Gift funds are allowed for closing costs and down payment

 - Seller concessions are available up to 6%

 - Asset reserves are not required at closing

 - The maximum loan limit is $346,250 for the Atlanta area

 - There are multiple loan limits, including 15-, 20-, 25- and 30-year loans

The USDA Guaranteed Rural Development Loans program (Rural Housing) offers attractive terms for eligible buyers purchasing eligible rural properties. We can help you determine if your buyers can take advantage of these program benefits, such as:

 - No mortgage insurance (PMI)

 - 100% financing

 - Loans are available up to $417,000

 - Non-traditional credit is even allowed in some circumstances

 - And asset reserves are not required

There are different guidelines for each loan type, dependent upon product type, condition of the house and the buyer’s circumstances. Speak to your mortgage counselor about your specific needs to determine if either of these loan types are an option for you. You can also visit www.hud.gov for additional information about FHA loans and www.rurdev.usda.gov for additional details about Rural Housing loans.

“Types of loans avialbe for REO homes” is part of NRT’s podcast series.  To hear this podcast or another podcast focused on home buying, please click here.

Categories: Auction · Bank Owned · FHA financing · First-time homebuyer · Real Estate

What to research before buying in a multi-family community

December 7, 2009 · Leave a Comment

Buying a home or a condo within a community has become a great option for many buyers. First-time buyers use them as an entryway to property ownership, and busy professionals and retired empty nesters alike enjoy the maintenance-free lifestyle that these communities offer.

But they come with additional considerations beyond what’s included when purchasing a single-family home. Here are the top five items to research in advance:

1. Understand exactly what you are buying when you make an offer, as the word “condo” refers to a legal form of ownership, not a particular type of property. Condo buyers generally own only the interior space of their homes; the exterior structure, land and amenities are usually owned collectively by all of the owners in the complex. Be sure to ask who owns the interior walls? What about the land beneath the home? What maintenance are you responsible for? Do you have your own parking? How many and what kind of vehicles can you park?

2. Research the homeowner’s association—and its board members. Ask for a copy of the association’s financials, including a certified budget and the latest annual reserve study; this can help you determine whether any fee increases are imminent. How is the association organized, and who runs it? How are voting percentages determined, and what would be your percentage?

3. Be aware of all related fees, including monthly association fees any special assessments. How are association fees charged and is there a limit on increases? Check whether utility charges and amenities are included, including pool maintenance. Also, be clear about what maintenance is included in the association fee, and what the condo owner must maintain.

4. Review the complex’s declaration, which helps you determine the monthly condo fee; the bylaws, which include items such as architectural requirements should you want to make any external changes to your condo; plats and plans; and rules and regulations. If the condo association is incorporated, your real estate attorney will want to review the articles of incorporation as well as any proffered disclosure documents. Also, have your attorney check for any “use restrictions” that might prohibit you from renting out the unit, which some associations include to protect financing and refinancing options.

5. Ask about the ratio of units that are rented versus owner-occupied. Your lender will likely require this information.

Condo ownership can be an attractive homeownership option for many buyers. But, it’s important that buyers do their research about the legal and financial implications before making an offer, in order to feel confident when getting to the closing table.

“What to research before buying in a multi-family community” is part of NRT’s podcast series.  To hear this podcast or another podcast focused on home buying, please click here.

Categories: Bank Owned · Closing · First-time homebuyer · Real Estate
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How to Select a Comp

November 30, 2009 · Leave a Comment

How does a Realtor figure out the best price when selling a home? How does a seller know if a home purchase is a good deal? Comps.

Comps, or comparable homes, are used by Realtors, sellers, buyers, lenders and appraisers to determine a home’s value. Comps are pulled for both homes currently on the market and recently sold homes.

But what data is included when considering comps? How do you know if you’re comparing “apples to apples,” as they say? These are the factors you should consider:

Price – When determining a home’s value, it’s important to look at the final sales prices of similar homes that sold in the past three months (not just the prices that homes are currently listed for). The final sales prices show what such a home could actually sell for in the current market.

Age of house – The age of a home is important, as the potential need to fix major items such as a roof or plumbing should be taken into consideration.

Features – Also look for the presence or absence of similar characteristics, such as chimneys, decks, walk-in closets and oversized bathtubs. And don’t forget about upgrades. Even though a house may be 20 years old, the insides may not be. Did the previous owners renovate a kitchen to include today’s hottest features? Were new energy-efficient features installed throughout the house (such as appliances and insulation)?

Size – This includes the number of bedrooms and baths, additional rooms such as a study or playroom, number of garages, and lot size.

Square footage – Cost per square foot is an important measure in determining a home’s value. For example, if your home’s value per square foot is $250 and the average per square foot of nearby similar recently sold homes is $275, it shows that your home is valued less per square foot than nearby similar homes.

Elevation features – This includes brick, siding, gables, and more. Brick homes are typically worth more than others.

Foundation – Is the home built on a basement or slab? Homes on a basement are typically valued higher because there is more room for expansion.

By analyzing the comps – including the current competition and actual sales prices – sellers can appropriately price their homes to make them an attractive option, and buyers can know that they’re getting a fair deal on a purchase. A Realtor can help buyers identify home sales that are truly comparable and interpret the information about them.

“How to select a comp” is part of NRT’s podcast series.  To hear this podcast or another podcast focused on home buying, please click here.

Categories: Bank Owned · First-time homebuyer · Real Estate

Good News! Home Buyer Tax Credit Extended!

November 6, 2009 · Leave a Comment

By: Christine Macrenaris

The ongoing discussion whether or not the government will provide an extension for the homebuyer Tax Credit is finally put to rest! The President signed the bill into law today that extends homebuyers and unemployment benefits.  While the first Tax Credit program of 2009 focused on first time buyers, the addition of the repeat buyers will free up the middle market by allowing homeowners to sell to first time buyers and allow these buyers to “move-up”.  Finally there is an answer for buyers who continue to ask “what’s in it for me?” Below are highlights of how the homebuyer tax credit will work:

  • Tax credit: Ten percent of the purchase price of a primary residence, up to a maximum of $8,000 for first-time homebuyers and $6,500 for repeat buyers who purchase between December 1, 2009 and May 1, 2010. First-time homebuyers are defined as people who have not owned a home in the previous three years. Repeat buyers must have owned their current home at least five years. The credit cannot be used for houses costing more than $800,000.
  • Deadline for qualifying: Purchase agreements must be signed by April 30, 2010, and closings must be final by June 30.
  • Military deadline: The deadline is extended by a year for members of the military who have served outside the U.S. for at least 90 days from Jan. 1, 2009, to May 1, 2010.
  • Income limits: Individuals with annual incomes up to $125,000 and joint filers with incomes up to $225,000 qualify for the full credit. Individuals with incomes up to $145,000 and joint filers with incomes up to $245,000 qualify for reduced credits.
  • How to apply: Taxpayers can claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment. Taxpayers who want immediate refunds can amend their tax returns for 2008 to claim the credit.
  • New anti-fraud limitations imposed.
  • Cost: $10.8 billion.

Source: Bloomberg Press and Associated Press and confirmed information with the content of the Senate bill

Categories: First-time homebuyer · Sales and Marketing
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Potential for Tax Credit extension

October 30, 2009 · Leave a Comment

By: Collin Ellingson

More encouraging news that the First Time Homebuyer Tax Credit will likely be extended and expanded as the Senate agreed this week to initial terms after intense lobbying from the NAR and NAHB, among others.

A recent U.S. News and World Report article on October 29th reported that the terms include an extension to April 20th, 2010 for all contracts, with an additional 60 days allowed for closing.  The new terms would also allow EXISTING homeowners to claim up to $6,500, and would increase the income limits for single and married buyers to $125,000 and $225,000, respectively.

While this is encouraging news for the real estate industry, I wouldn’t let the pending extension delay a first-time buyer purchasing decision today.  There are no guarantees that the new measure will pass with all terms intact, and a November 30th closing is still within the realm of possibility. First-time homebuyers should take advantage of the sure thing: choosing the home they want, locking in at today’s discounted price, AND taking advantage of the tax credit.  That’s a win-win-WIN.

Categories: First-time homebuyer

Under Contract – What a great feeling!

October 12, 2009 · Leave a Comment

By: Leslie Williamson

A market in flux. A market of opportunity. According to the economists, a market in flux is coming to an end and a market of opportunity  has begun to take place. We have begun to get back to a more “traditional” pace of growth and absorption. Although the housing industry will more than likely never return to the artificial and unsustainable levels of 2004 and 2005, the American Dream is still alive and well. Homeownership has never been more important to the average consumer.

During the past 120 days Coldwell Banker NRT Development Advisors has taken advantage of the market in flux to create a market of opportunity by repositioning new home communities to sell-out in a tough and competitive environment, but also be a viable for sale opportunity to the consumer. With competitive pricing and aggressive marketing illustrating the value, the final release of homes are under contract and closing at the following communities: Regatta located on James Island in Charleston (more than 50 homes under contract in 120 days) and Mirabella located in Jacksonville (more than 25 homes under contract in 90 days). Just goes to show that strategic positioning is essential in any type of market.

Categories: First-time homebuyer · Real Estate · Sales and Marketing
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