Real Estate Information Archive

Rob Dietz, Ph.D., director of tax issues for the National Association of Home Builders, discusses the $8,000 first-time home buyer tax credit in this videotaped interview.

By now everyone should have heard about the prevision in the recently enacted American Recovery and Reinvestment Act that gives first time home buyers a credit up to $8000 towards the purchase of a new home.

But here’s something that seems to be confusing a lot of people. Under the law, a first time home buyer is defined as anyone “who has not owned a principal residence during the three-year period prior to the purchase. For married taxpayers, the law tests the homeownership history of both the home buyer and his/her spouse”.

Here’s a link to the Q & A page of the Federal Tax Credit website with that should have answers to most of your questions

Looking for a great deal on a new home? You've come to the right place! We have links to bank owned, foreclosed and repo homes for sale in Summerville, Charleston, Daniel Island, Mt Pleaseant and the surrounding tri-county area.

I also have a link to the top 20% bargain priced homes in Summerville & Charleston which includes listings in all price ranges and condition.

Foreclosure...Short Sale...Bank Owned... These types of sales are the result of a seller not being able to make their house payment.  Not every situation where the seller cannot make their payments represents a good opportunity for a buyer, so it's important to know the difference.  A "short sale" exists when the seller is having trouble making their payments and needs to sell the house for an amount that may be less than what they owe the bank. The seller may have taken out a second mortgage just before the market began to decline.  Or they may have bought at the top of the market and now the market value of the home is less than when it was purchased. Whatever the reason, a short sale is a way to avoid foreclosure. These deals represent a risk to the buyer because even thought the seller and the buyer may agree on the price and terms of the sale, there is no guarantee that the bank will agree to the short sale. Short sales are especially risky when there is more than one bank involved. Short sales can take 45-90 days or more to close-if they ever do close.  Buyers who need to be in a home within 60 days may want to steer clear of short sale homes.

 "Bank Owned" or "Lender Owned" or "REO" properties are houses that have been through the foreclosure process, all liens have been removed, the title to the property is clear, and the bank now owns it.  These properties often represent very good opportunities for buyers to get a great deal---in general, banks do not want to keep these homes on their balance sheets and may agree to a low price in order to get the house off their books.  These sales can typically close quickly once the contract has been ratified because all the preliminary work has been done.  With bank-owned properties on the increase, realtors are finding banks easier to work with than they have been in the past.

Go to www.MulliganTeam.com to find a link to bank owned properties in the Charleston metro area.

We found some GREAT deals this week on homes for sale in the Charleston, Summerville, Mt Pleasant and the surrounding tri-county area! There are even a few on Sullivan's Island, Daniel Island, a few on deep water properties at unbelievable prices.

First, we have a lists of all the bank owned properties listed for sale in the Charleston MLS. They're broken down by county; Dorchester, Berkeley and Charleston, and buy price. Click Here for the list.

Second, we have a list of "Well Priced Homes" put together by Doug Holmes, a professor at the College of Charleston and a Realtor with Carolina One in the Orleans Rd office. The list was created with the concept of finding 20% of the best priced homes in MLS - which includes listings in all areas, price ranges and condition. While a number of factors were considered in selecting the properties, price per square foot as the leading indicator. Doug freely admits, the list is far from perfect, but it does offer an extensive list homes at BARGAIN PRICES! Click Here to view the list of "Well Priced Homes" in the Charleston area.

I'm sure most everyone has heard about the $8,000 housing incentive included in the stimulus package for first time home buyers (The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase). What's cool about this incentive is it doesnt have to be repaid like the previous credit package did! 

Incredibly low interest rates, unbelievable prices, and an $8,000 credit from Uncle Sam! It's hard to imagine a better time to buy a new home!

Get all the new listing as they come on the market at www.CharlestonHomeSeeker.com

Have moving plans this summer? Find out the approximate value of you home in todays market - www.CharlestonHomeValues.com

• The tax credit is for first-time home buyers only. (The law defines "first-time home buyer" as a buyer who has not owned a principal residence during the three-year period prior to the purchase).
• The tax credit does not have to be repaid.
• The tax credit is equal to 10 percent of the home's purchase price up to a maximum of $8,000.
• The credit is available for homes purchased on or after January 1, 2009 and before December 1, 2009.
• Single taxpayers with incomes up to $75,000 and married couples with incomes up to $150,000 qualify for the full tax credit.

Frequently Asked Questions About the Home Buyer Tax Credit

The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.

The following questions and answers provide basic information about the tax credit. If you have more specific questions, we strongly encourage you to consult a qualified tax advisor or legal professional about your unique situation. More>>>

www.mulliganteam.com

Congress is nearing a final vote on an economic stimulus package that is expected to include changes to the existing first time home buyer tax credit that was enacted in July of 2008.

It is expected that this legislation will be sent to the White House for the President's signature by President's Day, February 16, 2009. Once the legislation is sign details will be posted at http://www.federalhousingtaxcredit.com

Relocation companies won't volunteer this, but you can specify your buyer's agent. If you strike up a relationship with a professional you really like and decide you prefer to work with them, you can insist that the relo company refer your move to this individual.

Many of our clients have done this. Don't forget... the relocation company works for your employer, who wants you, the employee, to be happy and productive after a stressful move. You can insist on working with someone of your choosing. Or you can go with whomever they assign. It's up to you.

Today 45° | 73°

Good Monday afternoon. It looks like were off to another fantastic week in beautiful Charleston, South Carolina. Mostly sunny/partly cloudy skies with temperatures in the mid 70’s all week.

Showing activity has picked up in the past couple weeks as buyers take advantage of low interest rates, bargain priced properties and sellers more willing to deal. Barring any major changes in the financial world we expect activity to steadily increase through the spring.

Mortgage rates jumped a bit last week. The 30-year fixed-rate rose ½ point from 5% to 5.5% and the 15-year fixed-rate went from 4.5% to 4.75%.

For more information about mortgage rates and special programs call Tara Derouen (843-974-6223) or Beth Greenlee (843-974-6012) at Carolina One Mortgage.

The big news affecting real estate this week is the continuing debate over the American Recovery and Reinvestment Act of 2009. Senate legislators unanimously approved a proposal that would allow a tax credit for homebuyers of 10 percent of the value of new or existing residences, up to a $15,000 limit. Current law provides for a $7,500 tax break but only for first-time homebuyers. Keep in mind, at this point the $15,000 tax credit is still a proposal, it must clear the House and be signed by the President before taking affect.   

Call or email me if you know anyone who is thinking of buying or selling a home, I'd be happy to assist them - 843-224-5747.

If you are planning a move this spring or summer visit  www.CharlestonHomeSeeker.com to get all the new listings sent to you by email.

Wondering how your homes value has fared through housing turmiol? Visit www.CharlestonHomeValues.com - just log on, provide some details about your home and receive your FREE Home Market Evaluation direct to your inbox!

Mortgage rates remained relatively unchanged over the past week.

• 30 Year Fixed - 5.00%
  
• 15 Year Fixed - 4.5%
  
• FHA Fixed - 5.5%
  
• VA Fixed - 5.5%
  
• State Housing - 6.625%

As lawmakers in Washington debate the Federal Stimulus Plan there are a couple key issues affecting the housing market we’re watching closely. 

The biggest issue we’re watching is an expansion of First-Time Home Buyer Tax Credit. The bill would remove the requirement that a temporary $7,500 first-time homebuyer credit be paid back over time. Republicans have called for an increase in that credit to $15,000 and, along with some key Democrats, are pushing for an expansion in eligibility so that it would apply to all homebuyers of primary residences. Such amendments are expected to garner a lot of support. 

Also, Republicans want to introduce a provision that would encourage lenders to temporarily offer 30-year fixed rate mortgages with interest rates between 4% and 4.5%. The loans would only be available to credit-worthy homebuyers of primary residences and homeowners seeking to refinance. The Republicans said they would cap the program at $300 billion. But some say the plan could cost much more than that. 

In the next couple months we could see an opportunity of a lifetime to purchase a new home at rock bottom prices and incredibly low interest rates. This is particularly true for first-time home buyers who don’t have a home to sell or move up buyers. 

“Experts” predict the housing market will bottom out sometime this year, after which housing prices and interest rates will start to increase. So if you’re moving or just looking for a new home, you won’t want to miss out on this incredible opportunity. 

For the latest interest rates give our friends Tara Derouen (843-974-6223) and Beth Greenlee (843-974-6012) at Carolina One Mortgage a call.