President Obama signed legislation on Nov. 6 that extends and expands the U.S. tax credit for homebuyers. The expansion measure includes these provisions:

Extends the $8,000 first time Homebuyers Tax Credit and creates a new $6,500 tax credit for most other buyers who close on a new home before July 1, 2010.

Homebuyers with contracts as of April 30 qualify for the credit so long as they close the transaction within 60 days.

The full credit is available to homebuyers with incomes of up to $125,000 on a single return or $225,000 for a joint return.

Not available for homes sold for more than $800,000.

Homebuyers who owned in the previous three years are eligible only if the previous home they are leaving was used as a principal residence for five consecutive years in the last eight.

Provides the IRS greater oversight in processing the credit and requires that the buyers claiming the credit be 18 or older.

Extended deadlines are available to certain members of the military, military intelligence and foreign service who are on qualified extended official duty or were deployed overseas for 90 days or more during the program's availability period.

Overview First-time homebuyers may be able to take advantage of a tax credit for homes purchased in 2008 or 2009. The credit: Applies to purchases that close after April 8, 2008, and before Dec. 1, 2009. Applies only to homes used as a taxpayer's principal residence. Reduces a taxpayer's tax bill or increases his or her refund, dollar for dollar. Is fully refundable, meaning the credit will be paid out to eligible taxpayers, even if they owe no tax or the credit is more than the tax owed. The credit is claimed using Form 5405. For 2008 Home Purchases The Housing and Economic Recovery Act of 2008 established a tax credit for first-time homebuyers that can be worth up to $7,500. For homes purchased in 2008, the credit is similar to a no-interest loan and must be repaid in 15 equal, annual installments beginning with the 2010 income tax year. For 2009 Home Purchases The American Recovery and Reinvestment Act of 2009 expanded the first-time homebuyer credit by increasing the credit amount to $8,000 for purchases made in 2009 before Dec. 1. For home purchased in 2009, the credit does not have to be paid back unless the home ceases to be the taxpayer's main residence within a three-year period following the purchase. First-time homebuyers who purchase a home in 2009 can claim the credit on either a 2008 tax return, due April 15, 2009, or a 2009 tax return, due April 15, 2010. The credit may not be claimed before the closing date. But, if the closing occurs after April 15, 2009, a taxpayer can still claim it on a 2008 tax return by requesting an extension of time to file or by filing an amended return. News release 2009-27 has more information on these options. Questions and Answers More information on using this tax credit to purchase a home in the Olympia, Lacey, Tumwater, Rochester, Tenino, Centralia or Shelton areas please call Nancy Griego at 360-870-9770.

I just listed one great property in Olympia.

It is 3 bedrooms, 2 bath custom built home on 3.75 +/- acres in Olympia. The luxurious amenities are endless including custom electronic gate with paved driveway. Fully fenced yard around the house. Two car attached garage and a 30x36 shop with grease pit! Beautiful brick exterior accents. Park like setting with mature landscaping, fruit trees and garden area. Interior features hardwood floors, wood wrapped windows, main level master suite with 5 piece bath and walk-in closet. Spacious covered deck off the master suite with room for a hot tub. Nice Open floor plan with vaulted ceilings that gives the illusion of a larger home with less up keep. Huge pasture area perfect for animals with plenty of room for a barn. Its not too often a great buy like this comes along that has been so well taken care of.

Click here to see the flyer on this property!

If you are in the market for real estate, then 2009 may be good year to buy. The real estate market tends to be cyclical with some periods favoring buyers and other periods favoring sellers. As with other free markets, the pricing and availability of real estate is directly related to the forces of supply and demand. While many real estate markets in the United States are experiencing a substantial slowdown, other markets remain robust, and some even continue to grow. What makes the situation even more complicated is that even within a particular city or county, there may be some areas that are hot and others that are cold.

In regions of the country in which the real estate market is slowing, such as the Thurston County and Lewis County areas there are some things homebuyers can do to increase their chance of getting the property that they want on terms that are favorable. Below are some strategies to consider:

1. Clarify What You Want. Be sure to understand what kind of property you want (e.g. bedrooms, bathrooms, size, yard, location, etc.). Identify items that you "must have" and items that you would be willing to forego if your other priorities were met.

2. Consult Experts. You’ve no doubt heard the saying that "all real estate is local," so arm yourself with the best information available. Consult a local real estate expert who can guide you about what communities are hot and which ones are not. Obviously, you are more likely to find deals in communities that have excess supply and limited demand than vice versa.

3. Understand Market Data. Obtaining and evaluating data can be one of the most powerful tools in your arsenal. Identify communities that you find desirable and ask Nancy Griego to provide you relevant sales statistics. For example, she can provide you:

a. A summary of how many properties are available in communities that you deem desirable.

b. How long properties are taking to sell this month, last month, last quarter, last year, etc.

c. How many properties have sold this month, last month, last quarter, last year, etc?

d. Changes in the median and average price of properties for a community this month, last month, last quarter, last year, etc.

e. Data on the sales price to list price ratio (SP: LP). This ratio provides information about how much, on average, sellers are reducing their price.

f. Detailed data on properties that are similar to the type of property you desire (often known as "comparables" or "comps").

4. High Inventory Communities. Identify, or ask your agent to identify, communities that appear to be particularly slow, and that have an unusually large inventory of homes. You will have a broader variety of options in these communities, and you may increase the likelihood of finding a better deal.

5. Loan Pre-Approval. Be sure to consult with your bank or mortgage broker and obtain a loan pre-approval document. This not only let’s you know how much you can afford, but it also demonstrates to sellers that you are a serious buyer and that your offer is worthy of serious consideration.

6. Seller’s Motivation. While information about why a seller is selling is usually confidential, there are situations in which the seller will allow their agent to disclose important factors regarding their personal situation. Be sure to ask your agent to inquire about any information that the seller has disclosed to his/her agent that can be conveyed to your agent. This information may help you decide on making an offer on a property and the price you wish to offer.

7. Home Inspection. A home inspection conducted by a qualified inspector can provide you valuable information about the condition of a property. Moreover, if there are items that need repair or replacement, you can use this information to modify your offer price or terms.

8. Expand Search Scope. As mentioned above, even within a particular city or county, there may be some areas that are hot and others that are not. Be sure to provided detailed information about what you want to your agent, so that he/she can provide you a variety of community options.

9. Be Patient. Time is on your side when there is excess supply and insufficient demand. Try not to "fall in love" with a house so much that you cannot be objective. It may be that multiple offers and counter-offers occur before you either get the property you want or decide to walk way from a deal. You may also want to look at more properties than you normally would, so that you are exposed to a variety of options.

While the above is not an exhaustive list of strategies, it is a good starting point of issues to consider when buying real estate, particularly in a market that favors buyers. Obtain the services of a knowledgeable Real Estate agent like Nancy Griego of RE/MAX Parkside who can provide you with additional strategies to help you reach your real estate objectives.

If you are interested in talking to Nancy with regards to real estate in Olympia, Lacey, Tumwater, Yelm, Rainier, Rochester, Tenino, Shelton or Centralia please give her a call so she can simplify the process for you.

 Buying investment property is a complex business decision. You should study this subject in some depth before taking action, and you should seek professional help from your attorney, accountant, and real estate agent. That said, it is always good to have a plan in mind before you start looking for help.

1. Choose the type of investment. Vacant land, rental houses, condominiums, apartment buildings, store fronts, commercial properties, industrial properties, mobile homes, mobile home parks, etc. each have varying degrees of risk and reward. For someone just starting out, a rental house or small apartment building is probably the best choice. They offer the opportunity for income on a regular basis, have shorter vacancies on average than commercial or industrial property, are less regulated than condominiums and mobile homes in most areas, and there are many places that you can get information and education on becoming a successful landlord in small residential properties. It is a good place to start, and it is the investment type we will be concentrating on in this article.

2. Choose an area. Look for an area that has a diverse economic base offering many employment opportunities. After all, the tenants will need an income in order to reliably pay rent. The area should offer good schools, shopping, and transportation. Ideally, it will be an easy drive from your residence so that you can keep an eye on your investment. And, the area should be safe. Profits and money are not worth risking your life for, and the quality tenants that you want to attract do not want to risk their lives either.
Tip: Talk to people in the community to find out what issues are being discussed. Talk to other investment property owners to find out how the community relates to landlords. Due diligence in this search can save you a lot of time and money.

3. Choose a location within the community. When buying an investment property, the three most important things are "location, location, location." Location within the community will determine the ease with which you rent or resell the property. It will determine the price that you can command. And, it will determine the quality of customers you attract. It is one of the things about real estate that is unchangeable, so you have to choose right to start with.

4. Research property values and rents. This information is available from real estate agents, as well as from a variety of other services in most areas. You will want to call rental ads in the paper and talk to local landlords about what they are offering, how much they are charging, and what their experience is with the market. Some of them may be open to selling their property and may even be willing to finance it, so be sure to ask.

5. List the criteria an investment will need to meet in order for you to be interested. For instance, single family home with at least 3 bedrooms, 2 baths, and a 2 car garage which will rent for enough to cover the mortgage payment. Taking the time to define your search ahead of time will keep you on track and shorten your time to success.

6. Find a competent real estate agent that is in the area, knowledgeable about investment property, and willing to work. Make sure you get referrals. Interview agents before you choose one.

7. Analyze the property. When you find a potential property, gather all of the data that you need to determine the seller's motivation, what the property will rent for, what the expenses will be, and who pays for what. With apartments, it is imperative that you get all of the information the seller has to offer. Then, when they are done providing information, it is your job to go check it all out. You want to make your offers based on actual rents and actual expenses, not sloppy or fictitious numbers.

8. Make an offer. Make your offer contingent on a review of all documents related to the property, a thorough inspection of all units by yourself and a professional inspector.

For more information please call Nancy Griego, RE/MAX Parkside Affiliates at 360-870-9770.

If you watch only national news of financial turmoil and declining housing prices you may fear now is not the time to buy a home. While that may be the case in other states, it’s not an accurate picture of the market in Washington. Washington State has a unique set of positive economic variables that sets us apart from much of the country.

As the financial regulator responsible for overseeing the financial safety and soundness of our state-chartered banks and credit unions, the Department of Financial Institutions stays in close touch with local real estate market conditions. This message is prompted by that “local knowledge” and a concern that the true nature of the Washington State real estate market has been lost among the national headlines.

Is it a great time for everyone in Washington to buy a home? No. However, we can truthfully say this may be a great time for you to buy.

There may be at this time an historic opportunity to buy in Washington State. There are many reasons for optimism. Long-term mortgage rates are in historically low ranges and, contrary to what you may think, our state’s banks, credit unions, consumer loan companies and mortgage brokers have money available for buyers with reasonably good credit.

Also, Congress acted to expand a number of home loan programs. Washington’s financial institutions have a strong presence in your communities and have excellent financing options for home buyers, including great programs for first time homebuyers. With the addition of expanded FHA guidelines, they can meet a variety of different borrower needs.

Additionally, there is a good selection of new and existing homes available on the market right now. Reports of plummeting home values are almost always coming from markets far from Washington State. Here, home values are generally stable, experiencing only modest fluctuations up or down over the past year.

Perhaps the most important factor to consider is the reality that the Washington State economy continues to outperform the national economy.

If you want to buy a home, expect to live in the home for at least three years. If the only reason you are hesitating to buy the home you want in Washington State is an expectation that you are likely to get the same home for considerably less money if you wait a few months, you may want to reconsider. Very few of us are lucky enough to pick the bottom of a stock market downturn — and that also holds true for the housing market.

For many buyers looking for that perfect home NOW may be the time to buy and be comfortable in your new home. Depending on your personal financial situation, this could be an opportune time to contact Nancy Griego of RE/MAX Parkside (360) 870-9770 to help you find real estate in Olympia, Lacey, Tumwater, Lacey, Yelm, Rainier and Centralia.

 

AUCTIONS MAY BE AN ADDED FEATURE TO BUYING OR SELLING REAL ESTATE!

Selling a home by auction can often be a viable alternative to selling in the “conventional” way, particularly during a market slowdown, when there is a glut of unsold inventory, buyers are reluctant to commit, and are few and far between. A house can sit on the market for months, and maybe not sell at all. In these cases real estate auctions can offer a number of distinct advantages:

• Bidders must pre qualify for a loan and register to bid with a certified check
• Property auctions have a high visibility, and attract immediate attention.
• The Auction deadline for final bidding creates a sense of urgency and heightens competition among buyers, and as a result the property can often be sold for a higher than expected price.
• The seller knows the house will be sold within a specified time frame.
• The seller sets the terms and conditions of the sale, avoiding haggling over price, counter offers, etc.

An auction can attract potential buyers who may assume the property is being auctioned due to the owner facing financial difficulties or foreclosure. Although this is sometimes the case, other situations such as a company transfer, an estate sale, or a home owner wanting to avoid the uncertainties of the current market and sell quickly, may be the reason the property is being auctioned.

There are basically two ways to sell a home by auction. Setting a reserve or floor price means that the bidding must start at or above a specified figure and the house will not change ownership unless the highest bid is at or above the minimum stated price. Set the starting bid price attractively, and at a market value competitive with the selling price of similar homes for sale in the area, particularly if equity in the home is not sufficient to auction the home at an even lower than market price, which would be ideal, or circumstances warrant a sale at any cost.

An absolute auction is one in which bidding can begin at any price, and at the end of the bidding deadline ownership of the property is awarded to the highest bidder, regardless of the price bid. This is certainly a riskier method of auctioning a home, but absolute auctions often attract more bidders, and can sometimes be more profitable than expected due to the increased competition.

Lastly, whether or not to sell a home by auction should be based on a thorough evaluation of one’s circumstances, and an equally thorough examination of other alternatives in addition to your Realtors added services may be provided.

For more information regarding the process or upcoming auctions in Olympia, Lacey, Tumwater, Rochester, Tenino, Yelm, Rainier, and Centralia please contact Nancy Griego at (360) 870-9770