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Market Watch 2008 The Latest Buzz: We've all heard the news. Prices have come down. It's a buyer's market out there. What does that mean for you? That depends on your situation. For Buyers, this is a great opportunity to find a deal for investing in real estate. There's a lot to choose from, including bank-owned property and sellers who are more willing to negotiate. We won't know where the bottom is until we've missed it. But we do know that it's taking less time to sell property now than a few months ago and there's less on the market. Those are usually the first indicators that we're near bottom. Look for the best deals and go for the best discount while it's still a buyer's market. When the market turns, you'll have more competition and sellers will have the upper hand. Ask me about good buys and foreclosures - they're out there. I'll help you locate and negotiate the best deal for you.
For Sellers, if you can afford to hold onto your property until the market heals itself, that may be the right choice, but if if you need to sell within the next year or two, do it quickly before it loses more value, make it as attractive as possible, and price it right to attract more buyers. Waiting could cost you money. It's never been more important to properly stage, price and market your home when selling. I'll help you identify what small fixes you can make to get the most for your home and help you stage it as well. Together, we'll get you the best price for today's market.
Facing Foreclosure? Did you know you may have several options that could help you keep your home or minimize the impact that a foreclosure has on your credit? More and more, banks are willing to renegotiate loans to keep homeowners out of foreclosure and prevent the banks from taking on way more properties than they can handle. If that doesn't work, there are still other options from Short Sale (selling the home for less than the owed amount with the lender's permission), to Bankruptcy, which may even keep you in the home. Call me for more information at 310-776-0258.
Lawyers.com lists some options here: Homeowner's Options When Facing Foreclosure
Tax credits for First Time Home Buyers: First-time homebuyers who purchase their primary residence on or after April 9, 2008 and before July 1, 2009 are eligible for up to $7,500 in tax credit, provided they haven't owned a home in the last three years and fit certain income parameters. The credit is generous, but it is actually an interest free loan, paid back over 15 years at $500 per year when taxes are filed.
The Rise and Fall of Interest Rates: Over the last few months rates have risen, fallen, and risen again. If you could have afforded an $800,000 home a few months ago, you may only qualify for $700,000 today.
Until you speak with a lender you simply cannot know what you qualify for in today's market. Check with your mortgage professional for the best scenarios for your particular situation. A single bank or lender may not have the loans you need. It is possible you'll have to speak with more than one lender to get the best program. Call me at (310) 776-0258 for a list of lenders that may work for you, or email me attiffany@tiffanyforhomes.com. Larger loans at lower rates. There have recently been provisions in place that have allowed loans larger than $417,000 to qualify for better financing rates than normally would be available for "jumbo" loan amounts of that size, thanks to Fannie Mae and Freddie Mac. Although these provisions were set to expire, they are being extended...however, the top end of the loan size that will be allowed under these programs will be dropping down from $729,750 to $625,500 as of January 1, 2009.
Tax Incentives: If your property has increased over $250,000 (or $500,000 for married couples), you may want to consider moving into the house next door...
The IRS allows up to a $250,000 tax exemption for single homeowners when you sell your primary residence.* More and more, we see people selling their homes to buy similar properties in order to take advantage of tax free appreciation. Once your property value has exceeded the tax-free allowance, you will likely owe taxes on any additional profit. For some, it's become an investment strategy and a way of life - packing up every two years to take advantage of the tax incentives. There has been talk of amending the tax codes, so be advised that this exemption may not last.
* Consult your tax advisor for more information and restrictions.
Rent vs. Buy: Renting is a great alternative to buying for those who cannot afford to buy, but Renters beware! The money you are paying someone else could be used to secure your own home. Renting a home for $2,500/month is $30,000 thrown out each year. Buying a home may effectively eliminate that expense, saving tens of thousands each year on top of any rise in home value. Not to mention that tax deductions can put tens of thousands of dollars back into your pocket each year...depending on your situation, $30,000 in house payments could get you $10,000 back! You may even be able to adjust the witholdings in your paycheck to get a bigger check each month to help pay your mortgage! Consult your tax advisor for details.
Historically, property values double every 10 years regardless of any cycles in between. Depending on how quickly prospective buyers can accrue funds for a down payment, it may not be possible to keep up with the increasing property prices. It's worth looking into low-down options to see if there is there is a loan structure that makes sense for you.
If you've been wondering if you can afford to buy or if it makes sense for you, let's sit down and talk through your options so you can make an informed decision. Call me at (310) 776-0258 or email me at tiffany@tiffanyforhomes.com.
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I'm always looking for more properties to add to my repertoire. If you've been thinking of selling your home, but don't know where to start, give me a call. I'll walk you through the listing, selling and buying processes and make sure you have everything you need to make an informed decision. See the Seller's Resources section for more information.
For more real estate information or to subscribe to my monthly e-newsletter, email me at tiffany@tiffanyforhomes.com.
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