Lee's Summit Homes Blog: Roxanne Van Buskirk

We used to only worry about if a house had lead based paint. Now when you are buying a house, you need to make sure it wasn’t used to make Meth. Don’t assume that just run down houses in low income areas are potential “Meth Houses”. They can be found anywhere.

This article from MSN is certainly an eye opener.

Merry Christmas! Here is a sampling of real estate news that you should be aware of. If you have any questions about any of this, please feel free to email or call me. I will be happy to help.

The first of the year brings new disclosure rules for lending designed to help protect consumers.

You don’t have to be moving up to a more expensive home to get the new Tax Credit. Move down buyers can take advantage as well!

Existing home sales continue to improve.

Mortage rates are rising. Get your loan locked NOW.

I am adding a new feature to this Blog. Starting today, I will post a collection of links to articles that affect your home buying experience. It could be anything from mortgage rate trends, to market trends, to tips for selling or buying your home in this uncertain market. Enjoy the first edition of the Real Estate News Roundup!

Foreclosures and Short Sales may look like a sweet deal, but the process of buying one could turn your dream into a nightmare!

Is now the best time to buy a home?

Is the market recovering? Foreclosure rates fall again, yet…………………………….

There are still an awful lot of Option ARMs still out there.

Citibank is halting foreclosures for 30 days.

Reece and Nichols Realtors has teamed with David Knox to provide a complete explanation of the Home Buyer Tax Credit Extension and Expansion.

The Home Buyer Tax Credit Expansion and Extension details can be tricky to navigate.  Nationally recognized real estate expert David Knox has produced a great video for Reece and Nichols explaining the changes and features of the Home Buyer Tax Credit Expansion and Extension.

View the video that explains the Home Buyer Tax Credit Extension and Expansion in detail.

When you are ready to start looking for your next home, contact me to get the process started.

GREAT NEWS!  The Home Buyer Tax Credit has been extended and expanded!  Now, eligible existing home owners may also qualify for a tax credit of up to $6,500!  It’s the right time, right now, to sell your current home and to buy a new home.

NEW $6,500 Tax Credit for Current Home Owners*

• Eligible home buyers must have lived in their current home for 5 consecutive years of the past 8 years.
• The new home does not have to cost more than the old home.
• Eligible for homes with purchase agreements written by April 30, 2010, and that close before June 30, 2010.
• Annual income caps to qualify for the full tax credit apply: $125K for single filers and $225 for joint filers.  Partial tax credit can be granted for incomes up to $145K for single filers and $245K for joint filers.

The $8,000 First-Time Homebuyer Tax Credit is Extended!

• Now, qualified first-time home buyers will qualify to receive their $8,000 tax credit if they sign a purchase contract by April 30, 2010, and close by June 30, 2010.
• The home purchased must be their primary residence.
• Qualified buyers cannot have owned a home during the past three years.
• Tax credit is up to 10% of the home value (not to exceed $8,000).
• Annual income caps to qualify for the tax credit have increased:  $125K for single filers and $225K for joint filers.  Partial tax credit can be granted for incomes up to $145K for single filers and $245K for joint filers.

For more information on these tax credit opportunities and to view our exclusive Tax Credit Informational video, visit the Home Buyer Tax Credit section of Roxanne.ReeceandNichols.com.

*If you have doubts as to your eligibility for either of these tax credits, please consult a certified public accountant.

As you can see, while inventory of available house has dropped dramatically, sales have remains fairly constant over the past twelve months. That means that there is fewer homes to choose from. When inventory is lower, it is more difficult to get a “deal” since there are few homes to choose from. While far from a sellers market, Lee’s Summit has remained one of the metros strongest markets for home sales.

There may not be a better time to buy a house for several years. Here are some reasons to buy now:

1.  Mortgage rates are still near all time lows – Mortgage rates have been at 40 year lows for some time. that trend is not going to last forever. Low rates mean you can buy more house for your money. I can still remember the 18% mortgage rates of the 80’s. Even a 1% change in the rates can significantly reduce your buying power!

2.  Even if rates stay low, the cost of a mortgage may rise – because of the high number of defaults, the cash reserves used to cover these defaults by FannieMae and FreddieMac are seriously depleted. this means higher mortgage insurance premiums that are tacked on to your principle and interest. Like higher interest, these premiums would have the affect of reducing the amount of house you can afford to buy.

3. There is $8,000 of stimulus money out there for first time home buyers. Time is running out. This program ends on December 1, 2009. That means you have to close on your new home by that date. In order to close by then, you realistically need to have a contract in place by October 15th. You have less than 30 days. There is a lot of inventory out there to choose from. If you are on the fence, now is the time to jump off and into a new home! Contact me for details.

If you still haven’t taken advantage of the $8,000 tax credit for first time home buyers, your time is running short!

Reece and Nichols has all the info you need to take advantage of the credit!

The term Short Sale in Real Esate terms means selling a home for less than what you owe on the house.  Short sales have become more common in the past couple of years with the collapse of real estate values. Many home owners have little choice but to sell for less money than they owe, sometimes tens of thousands of dollars less.

While many lenders are allowing these types of sales to go through, don’t think that it is an easy way to get out from under crushing home debt. There are a few caveats to making a short sale.

SmartMoney has an excellent article on the pros and cons of short sales. To summarize:

1. Your credit score will take a similar hit as if they foreclosed on you

2. Lenders may come after you for the difference.

3.  You may not have the time cushion you need to get you finances in order as you would in a foreclosure proceeding.

Looking at my trending data for the KC market, it appears as though the KC market is bottomed out and is showing signs of recovery.  Pending sales are on the rise, and the months of inventory have fallen almost 4.5 months from 12.7 in November to 8.2 months of inventory in April.

Some of this can be attributed to the seasonality as November and December are typically the slowest months of the year.  However, the inventory of homes for sale has dropped 15% from a year ago. This reduction in supply has the effect of propping up the prices of houses as the consumer has fewer homes to choose from.

While we are not completely out of the woods yet, I think the worst is behind us.  The market appears to be chugging along similar to the pre-boom days, which I would consider to be a ‘normal’ market.

If you have been holding off on selling because of the slow market. It may be time to consider making the move. Inventories are down and prices have stabilized. This is especially true if you have a home you are considering selling that would be classified as a ’starter; home. A full 50% of the buyers out there are first time home buyers looking to take advantage of the $8,000 tax credit. Sales of homes in the $100,000  to $150,000 range are actually UP compared to 15 months ago!