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Showing posts with label Tax Credit. Show all posts
Showing posts with label Tax Credit. Show all posts

Thursday, June 3, 2010

Home Sales Rise - Low Mortgage Rates may help Kansas City Real Estate Market Since the End of the End of the Federal Home Buyer Tax Credit


The volume of U.S. home sales rose again in April to an annualized rate of 5.7 million units, up 7.6 percent compared with nearly 5.4 million units in March and up nearly 23 percent compared with a depressed pace of 4.7 million units in April 2009.
These figures come from the National Association of Realtors (NAR) and are adjusted to account for seasonal patterns in home sales. The total counts only completed sales and includes detached houses, townhomes, condominiums and co-ops.
The National Association of Realtors (NAR) group attributed the stronger pace of sales to the federal home buyer tax credit, which ended April 30, improved consumer confidence and lower home prices and interest rates. The last two are collectively referred to as “affordability conditions.”
A temporary “fallback” is expected to follow April’s strong results due to the expiration of the tax credit. However, low mortgage interest rates, home price stability and confidence may help to mitigate that effect.
Buyers and sellers may want to watch the inventory of for-sale homes for clues as to how severe the fallback might be. Inventory at the end of April was slightly more than 4 million existing homes for sale. That’s a supply of 8.4 months at the current pace of sales and an increase from the 8.1-month supply at the end of March. A supply of more than six months suggests buyers still have the upper hand.
Sales of detached homes rose 7.4 percent to a seasonally adjusted annual rate of 5 million units in April compared with a pace of 4.7 million in March. The median price was $173,400 in April, up 4.5 percent from a year ago.
Let us know what you think or add to our blog by writing a comment.

Blog post written by the Dowell Taggart Team of RE/MAX Best Associates

Your Kansas City Real Estate Marketing Masters!

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Friday, May 7, 2010

I missed out on the Buyer Tax Credit Program in Kansas City, now what?

I missed out on the Buyer Tax Credit Program in Kansas City, now what?

OK, so all real estate is "for sale", and in today's market, most of it is "on sale" as well!  But aside from negotiating the purchase price, one of the most overlooked opportunities in today's home buyer market is the 3.5% Fannie Mae allowance for either Buyer's closing costs or appliances....You heard me, appliances!

Oftentimes, we are asked about real estate sales after the Buyer Tax Credit program. There are a number of programs yet available to Buyers of all types and sizes, among the most beneficial, yet overlooked, is the Fannie Mae Homesteps Program.

All other factors being similar, why not choose a Homesteps qualifying property?

Closing Cost Assistance and Appliance Incentive for Fannie Mae Homes

Fannie Mae is offering a 3.5% incentive* for buyers who purchase and close on a Fannie Mae-owned home by June 30, 2010. Buyers purchasing properties listed on this site that are closed within this period may receive up to 3.5% of the final sales price for:
  • Closing costs;
  • The purchase of new Whirlpool® appliances by Fannie Mae; or
  • A mix of closing costs and appliances, at the buyer’s discretion, up to the maximum 3.5%.
To be eligible for this incentive:
  • Property sales must close by June 30, 2010
  • Buyers must be owner-occupants, investors are excluded
Contact a Fannie Mae listing broker for more information.
*Lenders may impose their own limitations on the use of the 3.5% incentive, so buyers should consult their lenders for guidance.

Need help buying a home?

State and local housing authorities often have programs to help homebuyers research and purchase a home. Programs can include counseling, down payment assistance, and more.
Neighborhood Stabilization Program (NSP)
Currently, some local housing authorities and housing non-profits have programs for homebuyers that use HUD's Neighborhood Stabilization Program funds.
Fannie Mae supports NSP and offers some concessions to streamline the purchase of Fannie Mae properties for buyers using NSP funds. This includes:
  • Deposit Waivers - Fannie Mae will waive the earnest money/deposit requirement for public entities using public funds to purchase a Fannie Mae-owned property. Individual homebuyers using public funds to purchase a Fannie Mae-owned property do not have to meet the full 5% earnest money/deposit requirement. Deposits can be as low as $500.
  • Reserved Contract Period - Upon receipt of an acceptable offer, buyers have the ability to renegotiate their offer after obtaining an NSP-required appraisal.
  • Extra Time for Closing - Buyer receives up to 45 days to close, 15 days more than is usually permitted for purchases of Fannie Mae-owned properties.
For more information on NSP programs in your area, click here

First Look for Fannie Mae Homes

Fannie Mae's First Look is designed to provide neighborhood stabilizing entities—owner occupants, public entities, non-profits and similar organizations—a “first look” at Fannie Mae homes. Under this policy, Fannie Mae will only consider offers from owner occupants and buyers using public funds during the First Look marketing period, typically the first 15 days a property is listed on HomePath.com. If the property is still for sale after the First Look Marketing period expires, investor offers may be submitted and will be considered.  Properties in the First Look marketing period will have a timer with the number of days remaining on the property details page. 


We have a list of Fannie Mae properties that qualify for the First Look Marketing period. To receive a copy, go to Fannie Mae Foreclosures


We know how to sort through thousands of available listings and find the right home to fit your needs....Including those few homes that fit the Homesteps program....When should we talk?


Let us know what you think or add to our blog by writing a comment.

Blog post written by the Dowell Taggart Team of RE/MAX Best Associates

Your Kansas City Real Estate Marketing Masters!

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Wednesday, January 27, 2010

Kansas City Home Buyer Tax Credit - Is It As Simple As It Seems?

Buyer Tax Credit : Is It As Simple As It Seems?

The Home Buyer Tax Credit is not as simple or straightforward as clients might believe...Here are some nuances that will affect home buyers who plan to use it.
  • To qualify for the move-up tax credit, a home owner must have occupied the same principal residence for five of the last eight years consecutively.
  • Buyers can elect to claim the credit on either their 2009 or their 2010 tax return, whichever is best for them.
  • Buyers who claim the credit in 2009 can’t file electronically because the Internal Revenue Service hasn’t put the required forms on line. The wait for a refund is three or four months.
  • The home can be a mobile home or travel trailer that is fixed to land owned or leased by the home owner. A mobile home or travel trailer that is actually mobile doesn’t qualify.
  • The home can’t be purchased from a close relative, including a parent, spouse, child, grandparent or grandchild.
  • A buyer who earns no taxable income or doesn’t owe any federal income tax can qualify for the tax credit and file a tax return just to claim it.
There is a "perfect storm" of sorts brewing in our industry, with the Treasury Department ceasing to purchase more mortgage-backed securities linked to the termination of the Home Buyer Tax Credit, we foresee higher interest rates along with a general tightening of the "credit noose"...Transalation, it's gonna get harder to get a new mortgage after May 1.

Source: Bankrate.com, Marcie Geffner (01/21/2010)

Submitted by Martin Taggart, Blogger, Kansas City Real Estate Junky
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