Marc Davis, provided by
Investopedia
Wednesday, May 25, 2011
If you're planning to buy a house right now, the next few months may be the best time to buy. Waiting for both housing prices and interest rates to fall may not be a good strategy for potential homebuyers since analysts don't expect any significant declines in these two most important home-buying factors. Here's nine real estate trends that suggest you should get into the housing market sooner than later. (To learn more, check out 5 Tips For Recession House Hunters)
TUTORIAL: Buying a Home
1. Lowest Housing Prices in Years
Nobody knows when the housing market will hit bottom, but prices are at their lowest in several years and may soon start inching back up again. So buying now or in the near future may be the right time. An abundance of bargain-priced housing is now available because of foreclosures and falling prices.
2. Interest Rates at a 50-Year Low
Interest rates are near a 50-year low, according to housing analysts. By the second week of May, 2011, 30-year fixed mortgage rates had fallen to their lowest rates of the year at 4.63%. Although mortgage rates vary from day to day, the 30-year rate at this level is an attractive inducement to first-time buyers, or buyers who want to either move up to larger residences, or others, including many empty-nesters wanting to sell and move to smaller houses or condos.
3. Interest Rates Expected to Go Up
As the economic recovery gains momentum, interest rates are expected to increase, making mortgages more expensive. Even a half-percent increase in mortgage interest can add a hundred dollars or more to your monthly payments, depending on the amount of your loan. (To learn more about interest rates, read Forces Behind Interest Rates.)
4. Adjustable Rate Mortgages at Record Lows
Adjustable Rate Mortgages (ARMs) are also lower now, although there are risks that interest rates may increase over the life of the mortgage and the balloon payment due at the end of the mortgage life, usually three or five years, could be substantial. Nevertheless, for new buyers who are sure they'll have enough income to meet payment obligations, an ARM may be the best way to buy a house. Keep in mind that payments may increase on a monthly basis. For a full explanation of advantages and risks in an ARM, visit the federalreserve.gov.
5. Low Down Payment Mortgages Available
Low-down-payment financing through Federal Housing Administration-insured mortgages is available as an additional inducement to buy a house now. Down payment minimum requirements also fluctuate and may increase as the market heats up, so potential buyers with less cash to consummate a deal may be well-advised to buy now.
6. Easy to Qualify, Easy to Borrow
Lending standards have become less rigid recently, so qualifying for a mortgage may be easier. Experts advise that a potential buyer become pre-approved for a loan by a lending institution - meaning that a lender guarantees to make the loan contingent on an appraisal of the property. But the good news in seeking pre-approval is that lenders are now willing to let a potential buyer take on more debt than the previous formula allowed - a percentage of monthly income. (For more on getting a cost effective mortgage, see Score A Cheap Mortgage.)
7. Lenders Offer No-Fee Mortgages
Many banks and other lending institutions are waiving mortgage loan generation and other fees and points (each point represents 1% of the loan amount), thereby reducing the cost of buying.
8. Home Builders Eager to Sell, Offer Incentives
Home builders, competing with the resale market, are offering incentives to potential buyers to reduce their inventory of unsold new homes. Incentives may include cash for furniture or free refrigerators, washers and dryers. In Seattle, for example, builders have offered opportunities to win iPads or Smart phones, and $3,000 buyer bonuses. Specific demographic groups, including military personnel, police, firefighters and health-care workers, have been targeted by builders for special offers. But virtually anyone who can qualify for a mortgage is likely to get a good deal from a homebuilder who is eager to sell.
9. Motivated Home Owners Desperate to Sell
Desperate sellers of existing homes have also been offering attractive inducements to potential home buyers, including warranties on appliances, air conditioners and furnaces. Some sellers are even offering cash or have included furnishings, refrigerators, washers and dryers as a bonus to potential buyers. With so many existing homes in foreclosure or underwater - bargain prices are abound in this depressed market. (For help on buying a house, read Top Tips For First-Time Home Buyers.)
The Bottom Line
With a convergence of the factors above, all of which are favorable to the prospective home buyer, there may not be a better time to buy than right now. It's a buyer's market, but like everything else in life, the bargain deals won't last. (To help determine if it is the right time to buy, read Are You Ready To Buy A House?)
Original story - 9 Reasons To Buy A House Now
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Showing posts with label home buying. Show all posts
Showing posts with label home buying. Show all posts
Thursday, May 26, 2011
Wednesday, February 23, 2011
Unlocking the mysterious of home buying - APRIL 7th
Ever wish that all your questions about the home buying process could be answered at one time?
On Thursday, April 7th, 2011, 2500 Market St(enter on 17th), 6:30 – 8:00 will be “Unlocking the mysteries of home buying”. Informational and a question and answer seminar.
During the seminar you will learn: everything about the home buying process, When to buy, how to decide how long to hold a property, how to choose a realtor, what the mortgage process is all about, the importance of home inspections, escrow, closing and moving
Register by sending an email to: rubysmith@zephyrsf.com, type “Seminar” in the subject line
On Thursday, April 7th, 2011, 2500 Market St(enter on 17th), 6:30 – 8:00 will be “Unlocking the mysteries of home buying”. Informational and a question and answer seminar.
During the seminar you will learn: everything about the home buying process, When to buy, how to decide how long to hold a property, how to choose a realtor, what the mortgage process is all about, the importance of home inspections, escrow, closing and moving
Register by sending an email to: rubysmith@zephyrsf.com, type “Seminar” in the subject line
Friday, November 12, 2010
San Francisco sees boom in tech workers
By Mike Swift, 11/08/2010
Mercury news
San Francisco has the Golden Gate Bridge, the fog and the tourists. And increasingly, the city also has the geeks.
Just ask Harold Liss, a 26-year-old software engineer who walks three blocks through the Mission District each morning to catch the Yahoo shuttle bus to Sunnyvale, passing knots of other tech workers waiting to catch private shuttles south to Google and Facebook.
"I wanted to live in the city," said Liss, who believes the corporate bus systems at Yahoo and other Silicon Valley companies are "absolutely" helping to fuel a growing population of computer workers in San Francisco. "There is more to do; things are walkable; you don't need a car. There is a lot of great food, a lot of good parties, and you have everything you need in a really small area."
San Francisco's population of computer workers has boomed in the past four years, a Mercury News analysis of census data shows, with the city adding more resident computer workers even than much larger Santa Clara County, the heart of Silicon Valley. Newly released data show that San Francisco gained about 8,600 computer workers from 2005 to 2009, a 51 percent jump, compared with a 7,300-person, or 12 percent, increase in computer workers living in Santa Clara County. The data count workers where they live, not where they work.
With about one in 12 adult residents working in computer-related occupations, Santa Clara County has by far the highest concentration of computer workers in California, and among the highest in the nation. And as companies like Google, Facebook and Cisco Systems add jobs in the valley, that isn't likely to change anytime soon. Among U.S. counties, only much larger Los Angeles County and somewhat larger King County, Wash., the home of Microsoft, have more computer workers than Santa Clara County, 2009 census data show.
"Look at Facebook, they could they have gone to San Francisco. But they came to Palo Alto, to the valley, to flourish," said Phil Mahoney, executive vice president with Cornish & Carey, broker for Moffett Towers, which has struggled for tenants in the down economy.
"There is still a very small fraction of the (tech) employment that's in SOMA, versus the valley as a whole," Mahoney said, referring to San Francisco's South of Market Area. "Just one street in Sunnyvale has pretty much the total employees that the city has, and that's Mathilda Avenue," with the headquarters of Yahoo, Juniper Networks and NetApp.
But with the fast growth of San Francisco-based social networking companies like Twitter, Zynga, Yelp and a host of startups, and the free bus networks operated by big companies that allow tech workers to live in the city and commute painlessly to Silicon Valley, San Francisco now has the third-highest concentration of computer workers among California counties.
Some companies see a San Francisco address as a growing advantage in the cutthroat competition to lure engineering talent, if only because more of that talent now resides in the city. Zynga, the software gaming company that makes the wildly popular "FarmVille" and other social games on Facebook, tripled in size to 1,200 employees in the 12 months preceding September. Citing San Francisco's "unique ability to attract the combination of top creative and tech talent," Zynga recently signed a lease for 270,000 square feet of space in SOMA.
"We think it's going to speak much more to the culture at Zynga than being located someplace less exciting," said Dave Wehner, Zynga's chief financial officer, adding that "being in San Francisco is a differentiator" in the intense competition to recruit talent.
Google's free private buses transport an average of about 2,000 riders a day, up from about 1,200 daily riders in 2007. The Google Shuttle delivers Googlers to Mountain View from San Francisco, and as far north as North Berkeley, as far east as Pleasanton and as far south as Santa Cruz.
Yahoo's buses prowl through the Mission District and a number of other city neighborhoods, pulling over every 10 blocks or so to ingest clusters of workers waiting on the sidewalk, before turning onto Highway 101 and motoring to Sunnyvale. Like Google's buses, the Yahoo buses run on biodiesel, giving environmentally conscious employees another reason to feel good about their commute, besides comfortable seats, the cup holders and the Wi-Fi.
The Yahoo shuttles transport about 225 San Franciscans each day, starting pickups as early as 6:08 a.m. Facebook does not disclose the number of San Franciscans its shuttle delivers to the company's office in Palo Alto, while eBay's private shuttle delivers about 150 workers a day to San Jose.
Liss said there has always been a tech presence in his 31/2 years in San Francisco. But he's noticed it a lot recently, such as his recent birthday party that drew people who work at Google, Twitter and Yahoo.
"I think the growing trend is to live and work in the city, if you can," Liss said of San Francisco's tech presence. "It's definitely a growing, homogeneous social circle."
Mercury news
San Francisco has the Golden Gate Bridge, the fog and the tourists. And increasingly, the city also has the geeks.
Just ask Harold Liss, a 26-year-old software engineer who walks three blocks through the Mission District each morning to catch the Yahoo shuttle bus to Sunnyvale, passing knots of other tech workers waiting to catch private shuttles south to Google and Facebook.
"I wanted to live in the city," said Liss, who believes the corporate bus systems at Yahoo and other Silicon Valley companies are "absolutely" helping to fuel a growing population of computer workers in San Francisco. "There is more to do; things are walkable; you don't need a car. There is a lot of great food, a lot of good parties, and you have everything you need in a really small area."
San Francisco's population of computer workers has boomed in the past four years, a Mercury News analysis of census data shows, with the city adding more resident computer workers even than much larger Santa Clara County, the heart of Silicon Valley. Newly released data show that San Francisco gained about 8,600 computer workers from 2005 to 2009, a 51 percent jump, compared with a 7,300-person, or 12 percent, increase in computer workers living in Santa Clara County. The data count workers where they live, not where they work.
With about one in 12 adult residents working in computer-related occupations, Santa Clara County has by far the highest concentration of computer workers in California, and among the highest in the nation. And as companies like Google, Facebook and Cisco Systems add jobs in the valley, that isn't likely to change anytime soon. Among U.S. counties, only much larger Los Angeles County and somewhat larger King County, Wash., the home of Microsoft, have more computer workers than Santa Clara County, 2009 census data show.
"Look at Facebook, they could they have gone to San Francisco. But they came to Palo Alto, to the valley, to flourish," said Phil Mahoney, executive vice president with Cornish & Carey, broker for Moffett Towers, which has struggled for tenants in the down economy.
"There is still a very small fraction of the (tech) employment that's in SOMA, versus the valley as a whole," Mahoney said, referring to San Francisco's South of Market Area. "Just one street in Sunnyvale has pretty much the total employees that the city has, and that's Mathilda Avenue," with the headquarters of Yahoo, Juniper Networks and NetApp.
But with the fast growth of San Francisco-based social networking companies like Twitter, Zynga, Yelp and a host of startups, and the free bus networks operated by big companies that allow tech workers to live in the city and commute painlessly to Silicon Valley, San Francisco now has the third-highest concentration of computer workers among California counties.
Some companies see a San Francisco address as a growing advantage in the cutthroat competition to lure engineering talent, if only because more of that talent now resides in the city. Zynga, the software gaming company that makes the wildly popular "FarmVille" and other social games on Facebook, tripled in size to 1,200 employees in the 12 months preceding September. Citing San Francisco's "unique ability to attract the combination of top creative and tech talent," Zynga recently signed a lease for 270,000 square feet of space in SOMA.
"We think it's going to speak much more to the culture at Zynga than being located someplace less exciting," said Dave Wehner, Zynga's chief financial officer, adding that "being in San Francisco is a differentiator" in the intense competition to recruit talent.
Google's free private buses transport an average of about 2,000 riders a day, up from about 1,200 daily riders in 2007. The Google Shuttle delivers Googlers to Mountain View from San Francisco, and as far north as North Berkeley, as far east as Pleasanton and as far south as Santa Cruz.
Yahoo's buses prowl through the Mission District and a number of other city neighborhoods, pulling over every 10 blocks or so to ingest clusters of workers waiting on the sidewalk, before turning onto Highway 101 and motoring to Sunnyvale. Like Google's buses, the Yahoo buses run on biodiesel, giving environmentally conscious employees another reason to feel good about their commute, besides comfortable seats, the cup holders and the Wi-Fi.
The Yahoo shuttles transport about 225 San Franciscans each day, starting pickups as early as 6:08 a.m. Facebook does not disclose the number of San Franciscans its shuttle delivers to the company's office in Palo Alto, while eBay's private shuttle delivers about 150 workers a day to San Jose.
Liss said there has always been a tech presence in his 31/2 years in San Francisco. But he's noticed it a lot recently, such as his recent birthday party that drew people who work at Google, Twitter and Yahoo.
"I think the growing trend is to live and work in the city, if you can," Liss said of San Francisco's tech presence. "It's definitely a growing, homogeneous social circle."
Thursday, October 14, 2010
what's all this about robo-signing? moratorium on foreclosures? can this help or hurt?
I double-dog dare you to watch a TV news show or spend more than 5 minutes on the web without hearing about the massive "robo-signing" foreclosure scandal that is rapidly encompassing the biggest banks in the country. Here are 4 things home buyers need to know about this breaking real estate news, and how it impacts them.
(Hint: I threw in a couple of bonus items at the end!)
1. What is robo-signing is, and what all the fuss is about? The phrase robo-signing refers to what we’re now realizing has been a very common practice in the banks’ foreclosure document processing divisions, where one person was essentially given the job of signing as many 10,000 foreclosure documents per month, by hand. These individuals were supposed to be reviewing the files, making sure grounds for foreclosure actually existed, signing the docs in front of notaries. But because of the volume of documents, what they actually did was just sign thousands of documents at a time, without even reading them, and ship them off somewhere else to be notarized.
If you do the math on an 8 hour workday, you'll see that that only gives the staffer 1.5 minute to review each file and documents to make sure the foreclosure is warranted. That's not humanly possible, which is how these staffers got the nickname “robo-signers”
Government regulators are very concerned that the banks may have been taking people's homes without following the proper legal procedures. As a result, 40 states' attorneys general are teaming up to launch a multi-state investigation, and the federal Comptroller of the Currency and federal attorney general may also get involved in investigating this issue.
2. Will the freeze will make the banks cancel buyer contracts on REO properties? Currently, the freeze impacts bank-owned properties that are owned and/or serviced by Ally Financial/GMAC Mortgage, JP Morgan Chase, and some properties that were owned by Bank of America. Generally, contracts to buy these homes are being put on hold and extended for 30 days. As well, the banks are often reaching out directly to buyers and offering them the option to cancel their contracts and recoup their deposit money.
3. Is it safe to buy a foreclosed home? There's lots of talk right now about the "clouds" that this scandal will create on the titles to homes that were foreclosed by the banks' foreclosure mills. And that makes sense: if the home wasn't properly foreclosed on in the first place, then the legitimacy of the bank's resale can be called into question. Normally, I'd say: Don't worry about it, buyer - that's why you'll get title insurance! But last week, 3 of America's largest title company insurers declared that they will not offer title insurance on a number of the homes that may have been involved in this scandal.
In the vast majority of cases – when the foreclosure was justified and a bona fide purchaser, someone who was not involved in the bank’s wrongdoing, has purchased the home, courts will not reverse these foreclosures or their sale to buyers. But if you’re in the market for a foreclosure, get clear on which bank owns the place as soon as you can, and run the property past your title insurer before you get too far into the transaction to make sure they can write a policy of title insurance on the property before you spend too much money on inspections and appraisals. (And see my Bonus Buyer Advice at the end of this blog post!)
4. How the foreclosure freeze will impact American home values, say after you buy. In the short term, these freezes might cause prices to stabilize, as we expect to see the supply of foreclosures for sale start to shrink. However, if these freezes stretch out for a long period of time, they could simply be delaying many inevitable foreclosures, which could delay the recovery of the housing market and home prices, over time. I wouldn't expect to see the freezes cause prices to drop much beyond where they are now, but if they stretch out, they could keep appreciation flat for a longer period of time.
P.S. - Bonus Buyer Advice from Tara: Don’t underestimate the deals you can get on non-foreclosed properties. You can often get just as good of a price on a better property with more flexibility on the seller’s part in terms of repairs and other negotiation points if you buy a home from an individual seller, as opposed to a bank-owned property.
(Hint: I threw in a couple of bonus items at the end!)
1. What is robo-signing is, and what all the fuss is about? The phrase robo-signing refers to what we’re now realizing has been a very common practice in the banks’ foreclosure document processing divisions, where one person was essentially given the job of signing as many 10,000 foreclosure documents per month, by hand. These individuals were supposed to be reviewing the files, making sure grounds for foreclosure actually existed, signing the docs in front of notaries. But because of the volume of documents, what they actually did was just sign thousands of documents at a time, without even reading them, and ship them off somewhere else to be notarized.
If you do the math on an 8 hour workday, you'll see that that only gives the staffer 1.5 minute to review each file and documents to make sure the foreclosure is warranted. That's not humanly possible, which is how these staffers got the nickname “robo-signers”
Government regulators are very concerned that the banks may have been taking people's homes without following the proper legal procedures. As a result, 40 states' attorneys general are teaming up to launch a multi-state investigation, and the federal Comptroller of the Currency and federal attorney general may also get involved in investigating this issue.
2. Will the freeze will make the banks cancel buyer contracts on REO properties? Currently, the freeze impacts bank-owned properties that are owned and/or serviced by Ally Financial/GMAC Mortgage, JP Morgan Chase, and some properties that were owned by Bank of America. Generally, contracts to buy these homes are being put on hold and extended for 30 days. As well, the banks are often reaching out directly to buyers and offering them the option to cancel their contracts and recoup their deposit money.
3. Is it safe to buy a foreclosed home? There's lots of talk right now about the "clouds" that this scandal will create on the titles to homes that were foreclosed by the banks' foreclosure mills. And that makes sense: if the home wasn't properly foreclosed on in the first place, then the legitimacy of the bank's resale can be called into question. Normally, I'd say: Don't worry about it, buyer - that's why you'll get title insurance! But last week, 3 of America's largest title company insurers declared that they will not offer title insurance on a number of the homes that may have been involved in this scandal.
In the vast majority of cases – when the foreclosure was justified and a bona fide purchaser, someone who was not involved in the bank’s wrongdoing, has purchased the home, courts will not reverse these foreclosures or their sale to buyers. But if you’re in the market for a foreclosure, get clear on which bank owns the place as soon as you can, and run the property past your title insurer before you get too far into the transaction to make sure they can write a policy of title insurance on the property before you spend too much money on inspections and appraisals. (And see my Bonus Buyer Advice at the end of this blog post!)
4. How the foreclosure freeze will impact American home values, say after you buy. In the short term, these freezes might cause prices to stabilize, as we expect to see the supply of foreclosures for sale start to shrink. However, if these freezes stretch out for a long period of time, they could simply be delaying many inevitable foreclosures, which could delay the recovery of the housing market and home prices, over time. I wouldn't expect to see the freezes cause prices to drop much beyond where they are now, but if they stretch out, they could keep appreciation flat for a longer period of time.
P.S. - Bonus Buyer Advice from Tara: Don’t underestimate the deals you can get on non-foreclosed properties. You can often get just as good of a price on a better property with more flexibility on the seller’s part in terms of repairs and other negotiation points if you buy a home from an individual seller, as opposed to a bank-owned property.
Thursday, September 9, 2010
5 Key Steps for First-Time Home Buyers
Key Steps for First-Time Home Buyers
You’ve religiously dined on frozen meals for months. You’ve been stashing away your extra cash instead of spending it on baseball tickets, a pedicure, or a night out on the town. You’ve even been riding the bus to work. Now that you’ve saved enough money for a down payment, you’re finally ready to make the biggest purchase most individuals ever make – buying your first home.
If the sheer amount of information available to first time home owners makes you feel doomed to rent forever, don’t panic! There’s hope, even for a rookie. The following five tips for first time home buyers can help alleviate your pre-purchase jitters:
* Evaluate your current budget and set your future mortgage budget
* Find your ideal real estate agent
* Make the real estate rounds
* Take advantage of home buyer incentives
* Read your purchase contract
1. Evaluate your current budget and set your future mortgage budget
You need to know how much money you can allocate towards your new home before you start looking at properties. A budget that thoroughly outlines your current expenses will help you accomplish this. Start by documenting all of your income in an Excel spreadsheet. Next, track how much and where you’re currently spending money.
Next, you’ll create a mortgage budget, which is a separate budget that helps you plan for reasonable mortgage payments. Your first step is to determine the average price of homes in your desired location and consideration set (e.g, ranch home, two-story, townhouse, condo, etc.). Here are some resources to help you determine your target home price:
Zephyrsf.com - a website where you can search for homes,explore neighborhoods, search for schools,neighborhood market trends save homes you are interested in, receive "real and current data of home values", and if you register you can search sold properties,save favorites,track property values, and get price change and new listing email alert.. And you can choose an agent, like for instance Ruby Smith,
Zillow.com – a Web site that lets you compare selling prices in your selected area.
Realtor.com – another home search tool provided by the National Association of Realtors.
Local newspapers – the classified section in your local newspaper provides a quick check of local home prices.
Your real estate agent –another excellent resource for pricing properties in your area.
Next, estimate what your home purchase loan amount will be. Start by establishing your target monthly home mortgage payment. Freddie Mac's home ownership calculator estimates what you can afford to spend on a home and what loan amount you’ll need to qualify for. Be sure to account for the costs of increased utility bills, property taxes, homeowners’ insurance, and any homeowner’s association fees. The Insurance Information Institute offers guidelines for what you should expect to pay for insurance. You may also be required to pay private mortgage insurance (PMI) if your down payment is less than 20 percent. Freddie Mac http://www.freddiemac.com/corporate/buyown/english/mortgages/selecting/down_payments.html also offers an online calculator that helps you tabulate any possible PMI costs.
Track all of your estimated homeownership costs in a spreadsheet or notebook. Keep a miscellaneous expense category for things like purchasing appliances and maintenance costs. Don’t forget to account for your down payment and closing costs. Most importantly, don’t underestimate your expenses! First-time home buyers are often surprised at how much they shell out for basic upkeep on their properties. Even the little things – fertilizing a lawn, re-painting trim, or hiring a plumber – can add up quickly. This is particularly true if you plan to buy an older home, as it will require more maintenance.
2. Find your ideal real estate agent
Your real estate agent will be your key resource for first time home buyer information. Keep in mind that you’ll spend many Saturday and Sunday afternoons traipsing through homes with your real estate agent. The hours you spend home hunting are more bearable when you have a knowledgeable real estate agent that you get along with.
Consider any referrals as a starting point, but don’t select an agent just because that’s who your aunt and uncle used. Your needs may be different from those of friends or relatives, so always make sure that the agent you select is also an expert in the types of properties and locations that you’re looking for.
Think “location” when searching for possible real estate agents Drive through your desired neighborhoods and check out “for sale” signs to find agents who are already handling comparable transactions. Agents that know a neighborhood well are better equipped to help you navigate your options.
Find out what days and times they’re available to show you houses. Top-notch agents will listen to your wants and needs and will only take you to homes that meet your specifications.
3. Make the real estate rounds
Now that you’ve found the perfect real estate agent, you need to make the rounds. This means physically checking out properties. Online research is helpful, but it’s no substitute for taking the time to explore properties for sale in your preferred location and price range. Bring a home buying checklist to each property that you view. This will help focus your search, and you can use the list later to compare features among the different homes you’ve seen. Mortgageguide101.com and the U.S. Department of Housing and Urban Development both offer printable home buying checklists.
Conduct a thorough examination of each property you visit. Take a friend or relative, preferably one who has already purchased a home, with you when house shopping. Someone else often spots things you may not have initially noticed – a barking dog living next door, a leaky faucet, or rotting wood.
Pay attention to the little stuff. Sellers who neglected basic things, such as maintaining the lawn or shampooing carpets, are likely to also let the big items slide. You don’t want to be stuck buying a new boiler a month after moving in.
You should get to know the entire neighborhood as well as your property. Check out the restaurants, grocery stores, and your prospective neighbors. Test drive times to work if you commute by car.
How will you know when you’ve found your dream home? That’s the million dollar question! Your perfect home should be situated in the right location and should meet all of your checklist needs as well as some of your checklist wants. It should also be comfortably within your price range.
Once you’ve found your perfect home, you should have a professional home inspection conducted. Although home inspection standards vary from city to city, The National Association of Certified Home Inspectors offers some general guidelines for residential inspections – covering basic standards for everything from roofs, exteriors, and basements to heating, cooling, plumbing, and electrical systems. Your real estate agent can refer you to a reputable home inspector.
4. Take advantage of home buyer incentives
Now is the time to buy. Indeed, a range of incentives are offered by sellers, particularly during a buyer’s market. Be aware of the following incentives prior to signing a contract:
Price reductions – Lowering a property’s price is one of the most widely used incentives sellers offer home buyers. Keep in mind, however, that a reduced price may not always be the best incentive for you. First-time home buyers who have limited upfront cash may benefit more in the long-run from non-cash incentives, such as seller-paid mortgage points or down payment assistance.
Seller-paid mortgage points – You can ask a seller to put funds toward mortgage points, typically for a period of one to three years. One mortgage point generally equals one percent of the loan amount and is considered a form of prepaid interest. For example, your mortgage may have a seven percent interest rate. If the seller agrees to pay two interest points for the first year, your interest rate will drop to five percent for that year. Remember that the seller’s contribution won’t last forever, and you’ll be accountable for the higher interest rate when this time period ends.
Service warranties – Sellers may offer limited warranties on a property through a residential service contract. These contracts usually insure a home’s major systems, such as the heating, cooling, or plumbing. Warranties may sound great at first, but you must read the fine print. For example, some warranties may not cover pre-existing conditions, even if that condition was unknown at the time of purchase.
Closing costs – Closing costs aren’t cheap. In fact, Freddie Mac estimates that they cost between two and seven percent of a property’s overall value . You can ask the seller to pay all or a portion of closing costs as part of your purchase negotiations. These costs include taxes, title insurance, financing costs, mortgage points, prepaid or escrowed items – such as homeowner’s insurance, private mortgage insurance, and real estate taxes – and related fees.
5. Read your purchase contract
This may seem like an unnecessary piece of advice, but you’d be surprised by how many people sign contracts they haven’t actually read. Neglecting to read your purchase contract can cause headaches later on, particularly if you decide to resell the property down the road.
Don’t be afraid to negotiate the contract terms before signing on the dotted line. For instance, make a roof repair a condition of the purchase if your inspection shows a leaky roof. You can also ask your attorney or real estate agent to negotiate for some of the buyer’s incentives mentioned above. Finding your dream home can be a time-consuming and intense process. Using the above tips, you can improve your chances of having a hassle-free home buying experience.
You’ve religiously dined on frozen meals for months. You’ve been stashing away your extra cash instead of spending it on baseball tickets, a pedicure, or a night out on the town. You’ve even been riding the bus to work. Now that you’ve saved enough money for a down payment, you’re finally ready to make the biggest purchase most individuals ever make – buying your first home.
If the sheer amount of information available to first time home owners makes you feel doomed to rent forever, don’t panic! There’s hope, even for a rookie. The following five tips for first time home buyers can help alleviate your pre-purchase jitters:
* Evaluate your current budget and set your future mortgage budget
* Find your ideal real estate agent
* Make the real estate rounds
* Take advantage of home buyer incentives
* Read your purchase contract
1. Evaluate your current budget and set your future mortgage budget
You need to know how much money you can allocate towards your new home before you start looking at properties. A budget that thoroughly outlines your current expenses will help you accomplish this. Start by documenting all of your income in an Excel spreadsheet. Next, track how much and where you’re currently spending money.
Next, you’ll create a mortgage budget, which is a separate budget that helps you plan for reasonable mortgage payments. Your first step is to determine the average price of homes in your desired location and consideration set (e.g, ranch home, two-story, townhouse, condo, etc.). Here are some resources to help you determine your target home price:
Zephyrsf.com - a website where you can search for homes,explore neighborhoods, search for schools,neighborhood market trends save homes you are interested in, receive "real and current data of home values", and if you register you can search sold properties,save favorites,track property values, and get price change and new listing email alert.. And you can choose an agent, like for instance Ruby Smith,
Zillow.com – a Web site that lets you compare selling prices in your selected area.
Realtor.com – another home search tool provided by the National Association of Realtors.
Local newspapers – the classified section in your local newspaper provides a quick check of local home prices.
Your real estate agent –another excellent resource for pricing properties in your area.
Next, estimate what your home purchase loan amount will be. Start by establishing your target monthly home mortgage payment. Freddie Mac's home ownership calculator estimates what you can afford to spend on a home and what loan amount you’ll need to qualify for. Be sure to account for the costs of increased utility bills, property taxes, homeowners’ insurance, and any homeowner’s association fees. The Insurance Information Institute offers guidelines for what you should expect to pay for insurance. You may also be required to pay private mortgage insurance (PMI) if your down payment is less than 20 percent. Freddie Mac http://www.freddiemac.com/corporate/buyown/english/mortgages/selecting/down_payments.html also offers an online calculator that helps you tabulate any possible PMI costs.
Track all of your estimated homeownership costs in a spreadsheet or notebook. Keep a miscellaneous expense category for things like purchasing appliances and maintenance costs. Don’t forget to account for your down payment and closing costs. Most importantly, don’t underestimate your expenses! First-time home buyers are often surprised at how much they shell out for basic upkeep on their properties. Even the little things – fertilizing a lawn, re-painting trim, or hiring a plumber – can add up quickly. This is particularly true if you plan to buy an older home, as it will require more maintenance.
2. Find your ideal real estate agent
Your real estate agent will be your key resource for first time home buyer information. Keep in mind that you’ll spend many Saturday and Sunday afternoons traipsing through homes with your real estate agent. The hours you spend home hunting are more bearable when you have a knowledgeable real estate agent that you get along with.
Consider any referrals as a starting point, but don’t select an agent just because that’s who your aunt and uncle used. Your needs may be different from those of friends or relatives, so always make sure that the agent you select is also an expert in the types of properties and locations that you’re looking for.
Think “location” when searching for possible real estate agents Drive through your desired neighborhoods and check out “for sale” signs to find agents who are already handling comparable transactions. Agents that know a neighborhood well are better equipped to help you navigate your options.
Find out what days and times they’re available to show you houses. Top-notch agents will listen to your wants and needs and will only take you to homes that meet your specifications.
3. Make the real estate rounds
Now that you’ve found the perfect real estate agent, you need to make the rounds. This means physically checking out properties. Online research is helpful, but it’s no substitute for taking the time to explore properties for sale in your preferred location and price range. Bring a home buying checklist to each property that you view. This will help focus your search, and you can use the list later to compare features among the different homes you’ve seen. Mortgageguide101.com and the U.S. Department of Housing and Urban Development both offer printable home buying checklists.
Conduct a thorough examination of each property you visit. Take a friend or relative, preferably one who has already purchased a home, with you when house shopping. Someone else often spots things you may not have initially noticed – a barking dog living next door, a leaky faucet, or rotting wood.
Pay attention to the little stuff. Sellers who neglected basic things, such as maintaining the lawn or shampooing carpets, are likely to also let the big items slide. You don’t want to be stuck buying a new boiler a month after moving in.
You should get to know the entire neighborhood as well as your property. Check out the restaurants, grocery stores, and your prospective neighbors. Test drive times to work if you commute by car.
How will you know when you’ve found your dream home? That’s the million dollar question! Your perfect home should be situated in the right location and should meet all of your checklist needs as well as some of your checklist wants. It should also be comfortably within your price range.
Once you’ve found your perfect home, you should have a professional home inspection conducted. Although home inspection standards vary from city to city, The National Association of Certified Home Inspectors offers some general guidelines for residential inspections – covering basic standards for everything from roofs, exteriors, and basements to heating, cooling, plumbing, and electrical systems. Your real estate agent can refer you to a reputable home inspector.
4. Take advantage of home buyer incentives
Now is the time to buy. Indeed, a range of incentives are offered by sellers, particularly during a buyer’s market. Be aware of the following incentives prior to signing a contract:
Price reductions – Lowering a property’s price is one of the most widely used incentives sellers offer home buyers. Keep in mind, however, that a reduced price may not always be the best incentive for you. First-time home buyers who have limited upfront cash may benefit more in the long-run from non-cash incentives, such as seller-paid mortgage points or down payment assistance.
Seller-paid mortgage points – You can ask a seller to put funds toward mortgage points, typically for a period of one to three years. One mortgage point generally equals one percent of the loan amount and is considered a form of prepaid interest. For example, your mortgage may have a seven percent interest rate. If the seller agrees to pay two interest points for the first year, your interest rate will drop to five percent for that year. Remember that the seller’s contribution won’t last forever, and you’ll be accountable for the higher interest rate when this time period ends.
Service warranties – Sellers may offer limited warranties on a property through a residential service contract. These contracts usually insure a home’s major systems, such as the heating, cooling, or plumbing. Warranties may sound great at first, but you must read the fine print. For example, some warranties may not cover pre-existing conditions, even if that condition was unknown at the time of purchase.
Closing costs – Closing costs aren’t cheap. In fact, Freddie Mac estimates that they cost between two and seven percent of a property’s overall value . You can ask the seller to pay all or a portion of closing costs as part of your purchase negotiations. These costs include taxes, title insurance, financing costs, mortgage points, prepaid or escrowed items – such as homeowner’s insurance, private mortgage insurance, and real estate taxes – and related fees.
5. Read your purchase contract
This may seem like an unnecessary piece of advice, but you’d be surprised by how many people sign contracts they haven’t actually read. Neglecting to read your purchase contract can cause headaches later on, particularly if you decide to resell the property down the road.
Don’t be afraid to negotiate the contract terms before signing on the dotted line. For instance, make a roof repair a condition of the purchase if your inspection shows a leaky roof. You can also ask your attorney or real estate agent to negotiate for some of the buyer’s incentives mentioned above. Finding your dream home can be a time-consuming and intense process. Using the above tips, you can improve your chances of having a hassle-free home buying experience.
Friday, March 19, 2010
So, you want to live in your house while it's on the market......
If you intend to live in your home while it’s on the market it’s going to take a lot of commitment on your part. Being a Realtor, I will tell you talk to a Realtor, but not any Realtor. Find a Realtor that can give you expert advice about what you need to do to present your property in the best possible light. Find a Realtor who is honest and will not be hesitant to tell you what to do. You will need at the minimum three weeks to get all this done. Moving out, unless you already have someplace to go, and staging is expensive.
With your Realtor, go through your home and let her tell you how and what you need to do. You also might want to go around to Open Houses that are staged to get ideas of how your home should end up looking. You can make it appear staged without actually going through the expense and having to move out while it’s on the market.
First you will have to de-clutter. Prospective buyers have to imagine themselves living there with their stuff, not with your stuff. Hopefully you will be moving soon anyway and if you do all this right you will be. So put all those tchotchkes in a box tape it up and start stacking them in a storage area. This means pictures too. Anything that personalizes the property as yours pack it up! If it’s an item that reminds you of a person, place or thing, pack it up! If you have books on bookshelves take 2/3 of them away. Keep the pretty ones. The rest are too personal. Pack ‘em up! Leave room on the shelves. The less you have laying around the easier it will be to keep it clean and spotless (I will get to that later) Once the clutter is all picked up you are ready for the next step.
Take a good look at your furniture. Is any of it looking shabby? Do you have a futon in that back bedroom that the slipcover is slipping off? Are the cushions on the couch and chairs saggy and worn? Can you have the covers dry cleaned or washed? Will just turning them make it look better? Do this with your Realtor, you need an objective eye when making these assessments. Now, what can you put in storage to make the rooms look more spacious? If you have furniture that is too big for the room it is especially important. If it’s a large sectional, get rid of one of those sections. For instance, in a living room you only need a sofa, a chair, a coffee table, an end table and a lamp and possibly a floor lamp. Buy a few new throw pillows, keep it neutral.
Do the same for the bedrooms. One bedside table with a lamp is enough. One dresser or bureau might be allowable if the room is big enough. Pack the clothes in boxes, label them carefully and add them to your storage area. Nothing should be left on the surfaces. You will need to purchase a new bed set; duvet, pillow shams, a couple of throw pillows. Ask your realtor for advice.
If you have a home office again, de-clutter, only the essentials get to stay. Pack it up label the boxes carefully and put them in your storage area in case you need something from them.
Now the kitchen, this is usually the one a lot of people have the most trouble with. Because home means comfort and comfort is centered on food and the place where it is prepared and eaten. It’s the heart of the home. First of all, the kitchen has to be cleaned. Tooth brushed clean. Walls cleaned, floors are spotless. If you have linoleum on the floor and it’s worn it needs to be replaced. You might have to hire some very obsessive compulsive cleaning person to help. All the fronts of the cabinets have to be spotless and cleaned. If you have cabinets with glass doors take out 2/3 of the stuff. Again, pack and label the boxes put in your storage area in case you need something. Hanging pots need to be put away, it’s too much clutter and again it personalizes the property too much. Prospective buyers have to imagine themselves living there with their stuff, not with your stuff. Counter tops should be bare with the exception of maybe a couple decorative neutral pieces. While you are living there, it will need to be devoid of cooking odors.
Bathrooms have to be spotless. If you have a shower curtain replace it. Buy a new set of towels to put up for Open Houses. If the vanity is old and worn replace it. You don’t have to remodel the bath and you don’t have to spend a lot of money. Just go to Home Depot and buy a new sink or vanity that is more current. If you need a new mirror get that too! This is all easy stuff and fun! A handy man can install them for you or you can do it yourself. It’s not hard.
If you own a single family house rather than a condo you may have to consider having the exterior painted. Again, have your Realtor give you an honest assessment. And don’t go crazy with some color scheme. Realize you are not going to be living there; it won’t be your home anymore. You need to make it neutral so buyers can see themselves owning the property. This sounds like a huge investment, but it has a huge return on your investment.
If you can have all the rooms re-painted then you should definitely do it. The smell of fresh paint has a psychological effect on buyers. Fill all the nail holes where pictures were hanging. If you recently painted, like within the last 2-3 years, you can go around the house with a paint brush and the paint from each room and lightly feather over any spots, dings, gouges and nail holes that you patched. You could hire a handyman to do this. Your Realtor should know someone. On all the baseboards, door and window casings do the same thing with the trim color on any dings or paint chips. If you don’t have the trim color you can take a sample to any paint store and they will match it.
Now for the cleaning. You might want to hire someone to do this but it has to be someone that knows how to clean a property for the market. Windows need to be washed, preferably both inside and out if possible. Windows are very important. They have to be free of any paint on the glass if the room has been painted recently. Floors need to be spotless. If they are carpeted, the carpet needs to be cleaned. If the carpet won’t get clean then you have to replace it. If you have hardwood floors they need to be cleaned and shiny. If they need a coat of urethane to make them that way, then have it done. It’s a small expense with a bigger return on your investment.
Now your house is almost ready! Now you can put a very few accent pieces and hang a couple of pictures on the walls. Don’t go crazy. They still have to be neutral and non-personal. And no more than ONE per wall. If you can live without window coverings take them down, unless they are very neutral and add to the room. You can put 2-3 magazines or coffee table type books on the coffee table. Stack them neatly. Your house should look staged by now.
For every Sunday Open House and all other showings, the house has to be cleaned and spotless. Tell your Realtor to always give you a 24 hour notice for any other showings. It should be devoid of cooking odors, pet smells; dirty laundry in the hamper smells too. Dust and polish the furniture clean off any fingerprints anywhere, Swiffer the floors or vacuum if you have carpet. Put the new bed coverings on the bed. Kitchen cabinets have to be spotless. The stove has to be clean. The refrigerator should not have any fingerprints on the door. And of course you don’t have anything on the front of the refrigerator by now so keeping the front clean will be easy. No kitchen towels hanging around. The counters are clean. The bathroom needs to shine. Put the new towels out. There are a lot of convenience cleaning products that will make this easier on you. While you’re doing this keep telling yourself about all the money that will be in your pocket by not having to move out and stage. When you are done, spray the whole house with a light and almost odorless room deodorizer.
Now go out and enjoy the rest of your day! Your property will sell more quickly.
With your Realtor, go through your home and let her tell you how and what you need to do. You also might want to go around to Open Houses that are staged to get ideas of how your home should end up looking. You can make it appear staged without actually going through the expense and having to move out while it’s on the market.
First you will have to de-clutter. Prospective buyers have to imagine themselves living there with their stuff, not with your stuff. Hopefully you will be moving soon anyway and if you do all this right you will be. So put all those tchotchkes in a box tape it up and start stacking them in a storage area. This means pictures too. Anything that personalizes the property as yours pack it up! If it’s an item that reminds you of a person, place or thing, pack it up! If you have books on bookshelves take 2/3 of them away. Keep the pretty ones. The rest are too personal. Pack ‘em up! Leave room on the shelves. The less you have laying around the easier it will be to keep it clean and spotless (I will get to that later) Once the clutter is all picked up you are ready for the next step.
Take a good look at your furniture. Is any of it looking shabby? Do you have a futon in that back bedroom that the slipcover is slipping off? Are the cushions on the couch and chairs saggy and worn? Can you have the covers dry cleaned or washed? Will just turning them make it look better? Do this with your Realtor, you need an objective eye when making these assessments. Now, what can you put in storage to make the rooms look more spacious? If you have furniture that is too big for the room it is especially important. If it’s a large sectional, get rid of one of those sections. For instance, in a living room you only need a sofa, a chair, a coffee table, an end table and a lamp and possibly a floor lamp. Buy a few new throw pillows, keep it neutral.
Do the same for the bedrooms. One bedside table with a lamp is enough. One dresser or bureau might be allowable if the room is big enough. Pack the clothes in boxes, label them carefully and add them to your storage area. Nothing should be left on the surfaces. You will need to purchase a new bed set; duvet, pillow shams, a couple of throw pillows. Ask your realtor for advice.
If you have a home office again, de-clutter, only the essentials get to stay. Pack it up label the boxes carefully and put them in your storage area in case you need something from them.
Now the kitchen, this is usually the one a lot of people have the most trouble with. Because home means comfort and comfort is centered on food and the place where it is prepared and eaten. It’s the heart of the home. First of all, the kitchen has to be cleaned. Tooth brushed clean. Walls cleaned, floors are spotless. If you have linoleum on the floor and it’s worn it needs to be replaced. You might have to hire some very obsessive compulsive cleaning person to help. All the fronts of the cabinets have to be spotless and cleaned. If you have cabinets with glass doors take out 2/3 of the stuff. Again, pack and label the boxes put in your storage area in case you need something. Hanging pots need to be put away, it’s too much clutter and again it personalizes the property too much. Prospective buyers have to imagine themselves living there with their stuff, not with your stuff. Counter tops should be bare with the exception of maybe a couple decorative neutral pieces. While you are living there, it will need to be devoid of cooking odors.
Bathrooms have to be spotless. If you have a shower curtain replace it. Buy a new set of towels to put up for Open Houses. If the vanity is old and worn replace it. You don’t have to remodel the bath and you don’t have to spend a lot of money. Just go to Home Depot and buy a new sink or vanity that is more current. If you need a new mirror get that too! This is all easy stuff and fun! A handy man can install them for you or you can do it yourself. It’s not hard.
If you own a single family house rather than a condo you may have to consider having the exterior painted. Again, have your Realtor give you an honest assessment. And don’t go crazy with some color scheme. Realize you are not going to be living there; it won’t be your home anymore. You need to make it neutral so buyers can see themselves owning the property. This sounds like a huge investment, but it has a huge return on your investment.
If you can have all the rooms re-painted then you should definitely do it. The smell of fresh paint has a psychological effect on buyers. Fill all the nail holes where pictures were hanging. If you recently painted, like within the last 2-3 years, you can go around the house with a paint brush and the paint from each room and lightly feather over any spots, dings, gouges and nail holes that you patched. You could hire a handyman to do this. Your Realtor should know someone. On all the baseboards, door and window casings do the same thing with the trim color on any dings or paint chips. If you don’t have the trim color you can take a sample to any paint store and they will match it.
Now for the cleaning. You might want to hire someone to do this but it has to be someone that knows how to clean a property for the market. Windows need to be washed, preferably both inside and out if possible. Windows are very important. They have to be free of any paint on the glass if the room has been painted recently. Floors need to be spotless. If they are carpeted, the carpet needs to be cleaned. If the carpet won’t get clean then you have to replace it. If you have hardwood floors they need to be cleaned and shiny. If they need a coat of urethane to make them that way, then have it done. It’s a small expense with a bigger return on your investment.
Now your house is almost ready! Now you can put a very few accent pieces and hang a couple of pictures on the walls. Don’t go crazy. They still have to be neutral and non-personal. And no more than ONE per wall. If you can live without window coverings take them down, unless they are very neutral and add to the room. You can put 2-3 magazines or coffee table type books on the coffee table. Stack them neatly. Your house should look staged by now.
For every Sunday Open House and all other showings, the house has to be cleaned and spotless. Tell your Realtor to always give you a 24 hour notice for any other showings. It should be devoid of cooking odors, pet smells; dirty laundry in the hamper smells too. Dust and polish the furniture clean off any fingerprints anywhere, Swiffer the floors or vacuum if you have carpet. Put the new bed coverings on the bed. Kitchen cabinets have to be spotless. The stove has to be clean. The refrigerator should not have any fingerprints on the door. And of course you don’t have anything on the front of the refrigerator by now so keeping the front clean will be easy. No kitchen towels hanging around. The counters are clean. The bathroom needs to shine. Put the new towels out. There are a lot of convenience cleaning products that will make this easier on you. While you’re doing this keep telling yourself about all the money that will be in your pocket by not having to move out and stage. When you are done, spray the whole house with a light and almost odorless room deodorizer.
Now go out and enjoy the rest of your day! Your property will sell more quickly.
Friday, November 6, 2009
Home Buyers Tax credit extended until April 30, 2010 Also previous home owners can now be eligable for a $6k tax credit
http://money.cnn.com/2009/11/05/news/economy/Extending_unemployment_benefits/index.htm?postversion=2009110611
Tax break for buying a home
The legislation also will extend the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30. The controversial credit, which many say has boosted home sales in recent months, was set to expire after Nov. 30.
The bill also creates a $6,500 credit for those who buy a home after living in their current house at least five years. That measure will apply to contracts signed by April 30 and closed by June 30. The current credit defines a first-time homebuyer as someone who has not owned a residence within the past three years.
The credit will be available only for the purchase of principal residences priced at $800,000 or less.
The bill will raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.
"It's gonna put people back to work, the home builders, put people in the real estate business," said Sen. Chris Dodd, D-Conn. "The kind of jobs that can make a difference."
The extension will cost $10.8 billion over 10 years, according to the Joint Committee on Taxation.
Through mid-September, 1.4 million tax returns had qualified for the credit, according to the IRS. Some portion of those returns, which the IRS couldn't specify, represents buyers who took advantage of an earlier version of the tax credit, which was only worth $7,500 and has to be repaid over time.
By the end of November, the credit will have been used by 1.8 million homebuyers, at least 355,000 of whom would not have bought a house without the tax break, according to estimates by the National Association of Realtors.
"The data on the present home buyer tax credit show that the credit has had its intended impact -- sales have jumped in recent months to a projected 5.1 million for the year and housing inventory has been trimmed, thus stabilizing home prices noticeably," said Ron Phipps, the association's first vice president, in Senate testimony last month.
Tax break for buying a home
The legislation also will extend the $8,000 homebuyer tax credit to contracts signed by April 30 and closed by June 30. The controversial credit, which many say has boosted home sales in recent months, was set to expire after Nov. 30.
The bill also creates a $6,500 credit for those who buy a home after living in their current house at least five years. That measure will apply to contracts signed by April 30 and closed by June 30. The current credit defines a first-time homebuyer as someone who has not owned a residence within the past three years.
The credit will be available only for the purchase of principal residences priced at $800,000 or less.
The bill will raise the adjusted gross income cap to $125,000 for single filers and $225,000 for joint filers. The amount of the credit currently begins to phase out for taxpayers whose adjusted gross income is more than $75,000, or $150,000 for joint filers.
"It's gonna put people back to work, the home builders, put people in the real estate business," said Sen. Chris Dodd, D-Conn. "The kind of jobs that can make a difference."
The extension will cost $10.8 billion over 10 years, according to the Joint Committee on Taxation.
Through mid-September, 1.4 million tax returns had qualified for the credit, according to the IRS. Some portion of those returns, which the IRS couldn't specify, represents buyers who took advantage of an earlier version of the tax credit, which was only worth $7,500 and has to be repaid over time.
By the end of November, the credit will have been used by 1.8 million homebuyers, at least 355,000 of whom would not have bought a house without the tax break, according to estimates by the National Association of Realtors.
"The data on the present home buyer tax credit show that the credit has had its intended impact -- sales have jumped in recent months to a projected 5.1 million for the year and housing inventory has been trimmed, thus stabilizing home prices noticeably," said Ron Phipps, the association's first vice president, in Senate testimony last month.
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