I’m still amazed how many times I see folks asking about the First Time Home Buyers’ Tax Credit and and the extended benefits for current homeowners.  So, one more time, here you go…

Link to the IRS FAQ… http://www.irs.gov/newsroom/article/0,,id=206293,00.html

Here is info from CENTURY 21……

Homebuyer Tax Credit

We Have News To Tell…

First-time home buyers and move-up buyers have another great reason to get on the path to purchasing a new home! The benefit to first-time homebuyers is a tax credit up to $8,000 and for move-up buyers a tax credit up to $6,500. But this opportunity ends in April.

Tom Kunz, President and CEO of Century 21 Real Estate LLC, comments on the legislation. Click here to see the video.

 

• Between November 7, 2009 and April 30, 2010, homebuyers that have a signed binding contract to purchase a home may be eligible for the tax credit. The transaction must close no more than 60 days after April 30, 2010.
• For first-time homebuyers may receive a credit of 10 percent of the purchase price up to the $8,000 tax credit amount. If you have never owned a home before or have not owned a principal residence in the last three years, you are considered a first-time homebuyer.
• For the “Move Up” consumer, a tax credit of $6,500 is available for homeowners who have lived in their current residence for at least five of the past eight years. The homebuyers can receive a 10 percent credit up to $6,500 when they contract to purchase a home between now and April 30, 2010, and close no more than 60 days after April 30, 2010.

 

The tax credit does not have to be repaid provided you live in the new home for a minimum of three years. Military families are exempt from this stipulation.

For additional details including some new benefits for FHA loans, click on the National Association of Realtors links below:

• Homebuyer Tax Credit FAQ from National Associations of Realtors
• Tax Credit Comparison Chart from National Association of Realtors
• Tax Credit as a Down Payment FHA Mortgage Flyer

 

Before you decide to use the Extended Homebuyer Tax Credit, please remember to consult with a tax professional.

I was doing a BPO (broker’s price opinion) on a short sale in Medina. Medina is considered very exclusive and also has many water front and water view homes. Here is a satellite view:
View Larger Map

For the BPO, and my own education, I did some research on the local sales history according to MLS records. I thought I’d share them with you.

Here are the sales states, for each six month period since the last half of 2007.

Period	Homes Sold	Average Home Size (SF)	Average Price / SQ Foot	Average Days on Market	High Price	Low Price	Median Price
July-Dec 2007	30	3,674	$666.98	91	$7,900,000	$800,000	$1,935,000
Jan-June 2008	15	3,431	$460.78	148	$3,700,000	$735,000	$1,350,000
July-Dec 2008	9	3,673	$470.50	186	$2,725,000	$985,000	$1,350,000
Jan-June 2009	10	3,229	$419.33	162	$1,900,000	$520,000	$1,275,000
July-Dec 2009	23	3,959	$441.29	225	$6,095,000	$552,000	$1,500,000

(December 2009 sales are only through 27^th)

Sales really slowed down in 2008 and the first half of 2009. The last half of 2009 really picked up, though you’ll notice that times are market are even longer. If the prices were lower, you might attribute this to the tax rebate, but I doubt that it affects sales in these price points that much (though it doesn’t hurt). Perhaps the difference is in the willingness of sellers to ‘deal’. Over the last two years, there has been a steady decline in the percentage of asking price that a property sales for. In 2007, it was close to 98%. In late 2009, the average was 88%, with the highest priced homes having the largest discounts. This suggests to me that sellers were more willing to take the lower offers that buyers expected to be able to make. The long market times suggests that they may have done so reluctantly

In general, it appears that prices are steadying. In fact, the price/SF has come back up some, along with the number of sales. Prices are now down enough to be attractive and folks purchasing in this area are looking for the right home and right features more than just a low price (still expect some bargaining!).

I’d love to get your thoughts about the Medina market. Please email me or provide feedback on my blog or via Twitter (@PlumCrazyRE)

Class Description:
Are you interested in purchasing a home of your own but just can’t seem to save enough money for the required down payment? We have good news for you. There are programs available that can help you buy a home with little or no down payment.  In this course we will explain the home buying process and point out some of the potential pitfalls when shopping for a home. We will also go over the benefits of home ownership.  Most importantly, we will provide you information on the various loans and state/federal programs that can help you get into a home with very little money out of pocket.

Location:
PPMS: Park Place Middle School
1408 West Main Street
Room C-7
October 6, 2009
6:30-8:30 PM

Class schedule and registration info: 
http://www.monroe.wednet.edu/COMMUNITY_SCHOOLS/Fall2009CommunitySchools.pdf