Pacita's Quick Bytes of Real Estate: June 2009

When I started using Visual Tour 5 years ago, we didn't have Facebook, Twitter, LinkedIn, etc. Recently I was solicited to switch from VisualTour to Previsite --- but I can't bring myself to switch.

Can we post Visualtour on Facebook?

You are in luck! VisualTour recently added a way to share your VisualTours to many different social network bookmarking sites right from the VisualTour viewer. Here are the steps below to use the built in bookmarking tool to networks like Twitter, Facebook, and more.

1. Go to www.VisualTour.com and log in using your username & password.
2. Click on My Tours.
3. Locate the tour you wish to share and click on the Thumbnail Preview to run it.
4. Click on Share Tour, and choose Bookmark.
5. When the new page opens, click on the site you wish to share the tour on.
Note: You should already have an account with each site prior to attempting to share the tour. You will be prompted from each site to log into your account with them.
6. Read & Follow the on screen instructions to complete the post.


For ActiveRain.com, you can blog the tour using an embed code provided by  YouTube. You would need to create a video for your VisualTour using our software. Then, upload it to YouTube, and grab the embed code. Paste that code into your blog on ActiveRain.com

Which raised the question: how to convert VisualTour to video for YouTube?

In case you are unsure of how to create a video and upload it to YouTube, here are instructions.

You will need to have VisualTour Studio 6 installed. To check your version click on Help > About VisualTour Studio. If you do not have version 6 installed, you can click on Help>Check For Updates to download it.

Please note you should create your account with YouTube prior to uploading.  You have the option to create the account during the process, but it's easier if you have an account already.

1. Create the VisualTour as you would normally.
2. Click on the "Create Video" button on Tour Tasks menu on the left hand side.
3. Choose the option for "Video Sharing Websites", then click "Next."
4. You should see a preview image of the video, you want to click on "Next" on this screen.
5. You will want to check the boxes to the left of the sites you wish to link to. Please note when you click in the box for the site you will need to enter in the username & password you have created for that particular website (ie. YouTube). You can also choose to create an account at that point.
6. Click Next to begin to send the tour to the site(s).
7. Once the video has been uploaded the History box will be displayed, and you will see the hyperlink(s) to your new upload.
8. Copy and paste the links if needed, and click on Finish.

RELATED POSTS

Switch from VisualTour to Previsite Virtual Tour? Why?

I was afraid to post on YouTube. Then I found out I can create a video using still shots from my Visual Tour

Having some downtime reading blogs on Active Rain.

BAM! It hit me. It's been over a year since I started blogging on Active Rain! I started in March 2008, and my first blog was about my Blackberry Curve. Ha! I have truly evolved. I have an iPhone now.

And still evolving....made it as number 1 Active Rain blogger in Alameda AND Alameda County, CA.

This has been, and continues to be an outstanding source of good information, tips, advice, etc. not only for real estate, but for other things as well. Have to keep visiting the Active Rain HELP/FAQ at the bottom of the screen for more good tips.

The camaraderie online is exceptional. Wish I knew about an Active Rainers gathering in the Bay area --- I'd love to pop in.

Recounting how many actual leads and escrows I've closed as a result of being on Active Rain, and how much I am learning, this is a great place to be.

I've invited other agents to join in. Hope they're reaping the benefits of being here.

For all the good people who provided good information as well as great entertainment --- THANK YOU! It's truly a wonderful place to be. I'm a happy puppy! (Oh, okay, OLD dog....)

Like many other cities that have hummed along, Alameda seemed to, as many residents like to say "hold its value." But Alameda is hardly untouched by calamitous economic downturn.

In 2008, the numbers were quite different than where they are today

2008 REO foreclosures: 35 homes, or 8% of 415 homes sold that year.

In 2009, and as of this writing, based on our local MLS figures, here's what's happening in our glorious island of Alameda.

SOLD (closed escrow) LISTINGS since January 1, 2009: 138 Residential homes

• 23 condos
• 12 townhouses
• 5 duets
• 98 detached single family homes
• Average days on market: 53
• Average list price: $574,774
• Average sold price: $556,203 (96.7% of average list price)
• Average sold $/sq ft: $353/sq ft
• 9 short sales
• 26 REOs or bank owned (18.8% of total sales to date --- a 10% increase over last year!). Breakdown as follows:
  
  • 5 condos (highest sold price: $315K for a condo at the Willows, a beach condo complex)
  • 1 townhouse ($408K at Islandia townhouse complex)
  • 19 houses (highest sold price: $738K for a house on the lagoon)

ACTIVE LISTINGS - 134 Residential homes

• 25 condos
• 15 townhouses
• 6 duets
• 88 detached single family homes
• Average days on market: 66
• Average list price: $655,787
• Average $/sq ft: $383/sq ft
• 9 short sales
• 10 bank owned (REO or real estate owned)
  • 4 condos (highest price $314K)
  • 6 detached homes (highest price: $646K on Park St)

PENDING LISTINGS:  90 Residential homes

• 22 condos
• 8 townhouses
• 2 duets
• 58 detached single family homes
• Average days on market: 49
• Average list price: $527,761
• Average $/sq ft: $353/sq ft
• 26 short sales
• 9 bank-owned
  • 3 condos (highest price: $250K)
  • 6 detached homes (highest price: $534K)

 

From these figures, it doesn't appear that  foreclosures slowed down in spite of the federal moratorium on foreclosures. We went from 8.8% foreclosures as a % of total sales in 2008, to 18.8% in 2009 to date.

Recently. a new state law went into effect. Similar to the federal government program in Dec 2008-April 1 2009, this new law mandates that program lenders must prove that they tried to modify delinquent loans before starting the foreclosure process.

But there are concerns about loopholes per San Francisco Chronicle (SFGate.com).

Fasten your seatbelts. It's going to be a bumpy ride.

 

 

My brother always shares some really cool stuff. Here's the latest:

I'M A PSYCHIC

I'm a Psychic and I can tell what your personality is even if you're not with me. I can feel your energy wherever you are.

Let me give it a try.

•  You have a need for other people to like and admire you, and yet you tend to be critical of yourself.
• While you have some personality weaknesses you are generally able to compensate for them. You have considerable unused capacity that you have not turned to your advantage.
• Disciplined and self-controlled on the outside, you tend to be worrisome and insecure on the inside. At times you have serious doubts as to whether you have made the right decision or done the right thing.
• You prefer a certain amount of change and variety and become dissatisfied when hemmed in by restrictions and limitations.
• You also pride yourself as an independent thinker; and do not accept others' statements without satisfactory proof. 
• At times you are extroverted, affable, and sociable, while at other times you are introverted, wary, and reserved.
• People close to you have been taking advantage of you. Your basic honesty has been getting in your way. Many opportunities that you have had offered to you in the past have had to be surrendered because you refuse to take advantage of others.
• You have an infinite capacity for understanding people's problems and you can sympathize with them. But you are firm when confronted with obstinacy or outright stupidity.
• Your sense of justice is quite strong.

CLICK HERE FOR MY SECRET

However, if you're with me, then my accuracy get's even better..

Click here for my technique.

Source: The Skeptic's Dictionary on the Forer Effect

So many people are blogging about the good news....but are we all getting the right answers? When I researched the $8000 tax credit for first time home buyers, I came across so many posts, that it became confusing. I would be concerned about interpreting, rephrasing, explaining without providing direct links to reliable sources of information.

STATES GET CREATIVE ABOUT BRIDGE LOANS                                                        

REALTOR magazine provided information that is worth reviewing. Notable excerpts:

• The loans can't be used to cover the minimum 3.5 percent, senior HUD officials told reporters on a conference call Friday morning.
• some state housing finance agencies have developed their own tax credit bridge loan programs, so buyers in states whose HFAs offer such programs can monetize the tax credit upfront to cover all or part of their downpayment. These programs are separate from what HUD announced today.

The reference to the state finance agencies may have been what got folks thinking that the tax credit can be used as the ENTIRE down payment

To help buyers that need down payment and closing cost assistance when purchasing a home with the tax credit, a number of HFAs are offering special short-term second loans to qualified buyers. These loans are available for little or no interest and may be repaid with the homebuyer tax credit refund.

That's probably why people think the ENTIRE $8000 can be applied as the downpayment because other programs are being devised to make it happen that way.

So what states have already instituted some type of bridge loan?

From this link, it appears that the following states already have something in place:

• Colorado
• Delaware
• Idaho
• Kentucky
• Missouri
• Nebraska
• New Jersey
• New Mexico
• Ohio
• Pennsylvania
• Tennessee
• Virginia

WHERE AND HOW CAN YOU APPLY THE $8000 FIRST TIME HOME BUYER TAX CREDIT?

Someone had blogged that the entire $8000 tax credit can be applied towards downpayment --- but my understanding is that the credit can be applied towards closing costs or ADDITIONAL downpayment not THE downpayment. Although as noted previously, some states have creative ways for buyers to use bridge loans to cover their downpayment,

It seemed that the only logical thing to do is to go to the main sources of information, especially the IRS.

• This information pertains to scenarios for tax credits towards homes purchased in 2008
• And this pertains to tax credits scenarios for homes purchased in 2009

First time home buyer tax credit scenarios answer a lot of questions. For example, here's an answer to a question that one of my own buyers asked:

S4. If husband and wife wanted to sell the home that the wife owned when they got married, and the husband had not owned a home within the past three years, could he qualify as a first-time homebuyer for the credit even though the wife would not qualify?

A. No. The purchase date determines whether a taxpayer is a first-time homebuyer. Since the wife had ownership intFromerest in a principal residence within the prior three years, neither taxpayer may take the first-time homebuyer credit. Section 36(c)(1) of the Internal Revenue Code requires that the taxpayer and the taxpayer's spouse not have an ownership interest in a principal residence within the prior three years from the date of purchase. The husband may not take the credit even if he filed on a separate return.

 Best answer to our clients' questions? Refer them to the final resource: the tax experts.

Lots of good iPhone applications to browse through, and still more are coming.

One of my favorite resources is a blog called iPhone Matters at http://www.iphonematters.com/

On the index, where it shows Tutorials, there's a link to a post that PC Mag has a list of ten iPhone secret powers up 

I haven't visited the site for a while, but found a couple of posts tat may be interesting to some of us iPhone users and would-be users.

Here's one cool application for people who may have lost/misplaced their iPhone

Apple Announces "Find My iPhone" Posted June 11, 2009 7:00 AM by Tanner Godarzi Categories: Announcements Software 

After being hinted at in an early Beta for iPhone Firmware 3.0, "Find My iPhone" has finally been announced and leverages the power of Mobile Me.

"Find My iPhone" allows users to log in to their MobileMe profile and track the exact location of their iPhone on Google Mpas. If your iPhone lost, you can send a notification with an alert even if the ringer is turned off. However, if your iPhone did fall in to the hands of a thief, you can send a command that would completely wipe down your device.

 

And for people a bit careless with their water bottles, etc....here's an older post that addresses that concern.

Apple Will Replace Your Water Damaged iPhones For A Small Fee Posted May 5, 09 5:00 AM by Tanner Godarzi Categories: Apple AT&T Deals Problems 

Been feeling a little careless lately and let your iPhone slip in to a puddle on a rainy day dooming it to the same fate shared by water damaged electronics? While the (slight) emotional damage might be there, Apple will cover your careless attitude/unseen accidents with a special deal.

If you bring your water ridden iPhone in to an Apple Store the first thing they'll point out is how liquid can mess up electronics beyond repair and that little red spot in the headphone jack, that's their assurance it was your fault and not just another manufacturing defect. However, instead of turning you away empty handed or helping you set an inferno to your pants pocket and pony up another $400 for an iPhone, Apple will swap your used and abused unit for a refurbished one that's not plagued by the electronic killing properties of H2O all for a mere $199. The downside is that your contract is basically extended for another two years so the length of chain on your iron ball, yea, it grew another couple of feet.

If you're unsure of the fate of your iPhone and don't know... more...

So check it out....it's truly a wonderful resource.

 

Just received an email soliciting me to switch from Visualtour to Previsite Virtual Tour.

The offer sounds too good to be true -- they will honor my monthly subscription and give me the special 7 mega pixel camera with fish eye lens. That means that if I switch, my subscription will be $19.99/mo, and the camera kit will cost $129.99.

But are they any good?

Who is Previsite?

So I visited their site at http://www.previsite.com/us/online-virtual-tour.htm, it really does sound like they've got the bases covered. But I want to know if someone among you is already using this service, and how do you like them?

According to their website, here's what they can do for us

Create a Virtual Tour

Many companies can help you create a virtual tour, but most don't give you all the publishing options you need to show your properties to the world. Previsite gives you everything you need to create a virtual tour and publish it anywhere. Whether you would like to integrate the tour into your own website, publish it on your MLS Association's website, have it appear on Realtor.com or share it with every possible potential buyer through complete syndication, Previsite can help you create a virtual tour and publish it anywhere you like.

Create and Publish a Virtual Tour Anywhere

Now agents can easily have the virtual tours they've created displayed on their website or their broker's website by simply copying and pasting the fully branded URL anywhere. All major MLS Associations are listed in the Previsite Platform, making it easy for Previsite users to retrieve the unbranded URL and publish all their properties on the MLS website.

Publish To Realtor.com Realtor.com is the world's largest real estate database of homes for sale and the official site of the National Association of REALTORS. Having your listings displayed on Realtor.com is the best way to be seen by tons of potential buyers. If you have subscribed for enhanced listings through Realtor.com the virtual tour you create will publish directly to Realtor.com!

Syndication

Want your listings to have maximum exposure? With Syndication, your properties are displayed on the most popular real estate websites and search engines. One click and the virtual tour you create goes everywhere!

RELATED POST: only saw one post about this company, and it's a good one!

My Initial Thoughts on Previsite Camera / Virtual Tour Solution

What do you do when you have a listing that just doesn't look good in pictures?

We've all been there. We get a listing that has so much potential, but it poses a challenge on how to present it in a good light so that it attracts the right interest.

Find something nice   I looked around the house, and liked the wood beamed ceiling of the enclosed porch. Glad they didn't paint it so that the wood stood out from all that white-washed paint.

 Click.

 

 

Also liked the colorful flowers against the fence of the very small patio. Almost seemed like there could be a place for a garden.

 Click.

 

 

 

Angle the shot  Get some depth from an angle. Looks more interesting that way. No frontal shots here. Why will this place be attractive? It's zoned commercial. But currently used as a residential rental. Live/work opportunity for the work-at-home based business. Show how it lines up with the other businesses.

Click.

 

 

Natural light?  Even if the room is kinda messy, there's got to be something nice about it, right? Oh yes, it's brightly illuminated with natural light.

Click.

Camera limitations    I don't have the real wide-angle lens. But my trusty Panasonic Lumix FX01 (with its Leica lens) can take pictures that have a bit of wide-angle dimensions.

Click.

Okay...that wasn't so bad. Now, it even looks somewhat decent. Guess this is ready for its closeup.

 

Typically, we copped out by referring clients to our lenders and to our escrow managers. Or we say "Let me work out some figures and I'll get back with you."

We never have the answers on the spot. Well, with Fidelity Agent, we can! Info on Fidelity Agent is not on every Fidelity Title Company site, but here's a link to Fidelity Agent comparisons to other calculation programs.

After raving about using Fidelity Agent (or Palm Agent as it is sometimes known), here's info that  you may want to check out.

What is it, and how does it work?

Here's a nice video that will give you a really good idea of how it works, and how you can use it in different scenarios.

http://pc3.fntg.com/UploadedDocuments/demos/fidelityagent/index.html

How to contact Fidelity Agent

The best way for an agent to acquire Fidelity Agent is to contact their Fidelity Title Representative for installation and training of the software. 

Corporate 757-271-1287
  Toll free 1-866-629-5091
  FidelityAgent Inc.
  639 N Coalter Street
  Staunton, VA 24401.

Or email support@FidelityAgent.com

 iPhone/iTouch Installation Instructions

It is now readily available through Apple's App Store, see the ‘how to' for more info on that.) it has to be downloaded directly from the App Store for $6.99. 

 To clarify: If you have an i-Phone and you also want Fidelity Agent on your laptop or desktop you will need to pay the $6.99 through the App Store and the $27.00 for the laptop or desktop load.  Keep in mind you have TWO loads coming to you for the $27.00 so you could also install it on your home office computer or secondary laptop, etc.

1. Locate the "App Store" icon on the iPhone/iTouch device, and click on it
2. Tap on the "Search" function at the bottom of the screen, and begin typing. Various programs will be displayed as you type. Remember that the name of the program is Fidelity Agent, and it will come up for different states.
3. Select the appropriate  version of the software for your state
4. Verify the correct state is selected, and tap on the Application

 RELATED POSTS

Fidelity Agent: A WOW tool for quick answers for real estate calculations --- for your computer and your PDA!

First Time Buyers need CMA and PITI calculations ---and good photos for a good first impression

 

Before my young first time buyers and I look at properties we do as much research as we can online. But all the research still doesn't adequately prepare them for what to expect once we see properties up close.

A picture doesn't tell the whole story

We saw one property that sort of looked nice in the pictures, but looked so much better when we got there. It had panoramic views of the hills, the bay, and from a distance, San Francisco and the Bay Bridge. This is where a visual tour, or a better selection of pictures could have turned what initially looked to be a blah listing into a fantastic one.

Calculating monthly payments

Thank goodness for Fidelity Agent. I am able to prepare a matrix to show them the what-ifs in $$$ where they can easily determine what will work for them. Their main questions revolve on how much they will need to close escrow and how much will their monthly payments be?

In one of my blogs, I posted on what this is, and how I use it. It's been an invaluable tool --- I have it both on my computer and on my iphone so that I can do quick calculations (and impress my clients!).

Here's a sample, using 3% initial deposit, 20% downpayment, 5.25% interest for 30 years.

Offer price	$550,000	$560,000	$570,000	$580,000	$590,000
Initial deposit	16,500	16,800	17,100	17,400	17,700
how much to bring at closing (balance of down payment and closing costs)	127,234	129,485	131,735	133,980	136,231
Principal, interest taxes and insurance/mo	3,163	3,221	3,278	3,336	3,393

CMA before writing an offer

In addition to providing quick calculations, I also prepared a Comparable Market Analysis (CMA) for this property so that they can see the recent activity. For example, a home on the same street was in contract after only 14 days. The property they're interested in is larger, has better views and in the market for 12 days.

And I remind them of the question we always ask at each property we see: "Will you be happy living here?"

My clients told me that they appreciate all the help and guidance they need to make an informed decision. I'm keeping my fingers crossed that I help this delightful young couple buy their first home where they will be happy for a long, long, time.

RELATED POST AND INFO

Fidelity Agent: A WOW tool for quick answers for real estate calculations --- for your computer and your PDA!

Don't know how to estimate PITI? Closing Costs? Copping out by deferring estimates to escrow officer?

My Fidelity National Title Company introduced me to Fidelity Agent. Here's how you can contact the folks for info and subscription:

Call FidelityAgent to talk to a representative

Corporate 757-271-1287
  Toll free 1-866-629-5091
  FidelityAgent Inc.
  639 N Coalter Street
  Staunton, VA 24401.

Or email us at  support@FidelityAgent.com

QUESTION: Has anyone successfully negotiated a short sale where the second and different lender is Washington Mutual?

Seems like every single one I've run into in this situation has not moved forward on the short sale, and that most of the properties ended up being foreclosed.

Here's where you can see the complaints about Washington Mutual

TWO OR MORE/DIFFERENT LENDERS?

Generally, if there is more than one loan, and if there are two lenders, we move on to the other properties. My clients and I just don't have the time or the energy to invest in a waiting game. Now that the interest rates have inched upwards and we're competing with other buyers in the same budget range, we are intensifying our search and quickly eliminating many properties from the list.

One of my clients wants to stick it out ---- we submitted the offer in February 13, and we're still waiting. The second loan was with Washington Mutual who wanted the seller to pay $18K before they will release the loan. Four months later, the short sale is still in negotiation.

MANY SHORT SALES

As the number of short sales increase, my buyers and I are also streamlining our search process.

The problem with automatic email updates is that there really isn't an easy way to distinguish regular sales from short sales or REOs

First thing we do: my clients and I look at properties online first.

Or upon receiving their email alerts, I research the properties they're interested in. Before even venturing out to see the property, I call the listing agents for the status. If it's a short sale, I verify if there is more than one loan. And when there is more than one, who are the lenders?

We already know that Downey Savings, for one, sell the notes to investors who, in turn, won't approve short sales.

RELATED POST and LINK

OUCH! Downey Savings won't approve short sales

Short Sales may not mean you're home free

Part of my outreach and Client Appreciation Program (CAP) per Working by Referral (Brian Buffini) to clients and associates is to send them an Item of Value.

This time, I digressed from the original and proposed letter, and created one that I felt was pertinent today. Here's what I am getting ready to mail. The difference is that on Active Rain, I am providing links.

CAP Item of Value

This real estate market continues to surprise us: rates are very low, and home prices are finally near "the bottom."  The opportunities are still very much right there.  And conditions are evolving.  There are now several new programs to help both Buyers and Sellers.

Buyers

First Time Buyer Tax Credit of $8,000. Eligible buyer with an FHA loan can apply the  credit toward closing costs and as an additional (but not THE down payment)  California NEW Home Tax Credit up to $10,000 Energy Efficiency Tax Credit up to $1,500 California Mortgage Protection. Eligible first time buyers who lose their jobs may receive up to $1,500 per month, for six months, to help make their mortgage payments.

Sellers

Foreclosures Alternative Program. Eligible distressed home sellers may receive up to $1,500 for relocation expenses up to $1,000 to pay junior lien holders to release liens Mortgage Debt Forgiveness Relief Act of 2007.

Owning a home is a privilege and a dream for many of us.  To achieve that dream now, we must strive not only to protect, but also to improve our credit rating simply to qualify for a home loan. This is the subject of this month's Client Appreciation Item of Value enclosed.

Effects of Short Sales Versus Foreclosures

There are various blogs and articles about the effects of short sales versus foreclosure. But the best one I've seen is a matrix produced by Distressed Property Institute and I've seen that matrix reproduced in so many places.  If you google specific phrases or sentences from that matrix, you'll see a ton of sites that feature this matrix.

For example, google "A homeowner who successfully negotiates and closes a short sale will be eligible for a Fannie Mae backed mortgage only after 2 years" and count how many sites have this matrix.

 

RELATED POSTS

Who/Where/How/What/When to use the $8,000 first time buyer tax credit with an FHA loan

TAX CREDITS for ENERGY EFFICIENCY. More good news for home buyers and home owners!

BULLET POINTS for homewners contemplating a short sale

When is it too late to save a home from foreclosure? What NOT to do if owner wants to keep the house

 

KEY TO EARNING ENERGY-EFFICIENCY TAX CREDITS

Homeowners now can claim up to $1,500 in expanded energy-efficiency tax credits for remodeling their principal residence to reduce energy consumption. Available until the end of 2010, the revamped Existing Home Retrofit (25C) Tax Credit helps consumers save two ways: on their costs and on their utility bill

WHAT QUALIFIES?

See: Federal Tax Credits for Energy Efficiency as outlined by Energy Star. Click HERE

Also see: National Association of Home Builders for the Facts on Energy Efficiency Tax Credit 

The expanded federal tax credit refunds 30 percent of the product replacement cost up to a total of $1,500.

In some cases, installation costs may also be used to claim the tax credit. As long as the new products meet IRS qualifications.can be used for:

• HVAC systems
• insulation
• water heaters
• windows and doors
• insulation Home energy audits can cost as little as $500, which remodelers say is an expense that pays for itself - and more - with savings from efficiency upgrades. And homeowners may be able to combine federal tax credits with local and regional incentives to maximize savings.

Here's one example: Insulation improvements may be one of the easiest and most affordable ways to save on energy costs. Upgrading inefficient insulation (from R-19 to R-38) in the attic of a two-story, 2,000-square-foot Chicago home might cost around $1,000, but the tax credit brings that down to $700. Add that to Chicago's MidAmerican Energy residential energy efficiency rebate program, which can return up to $600 spent on insulation or other energy-efficiency upgrades, and the cost drops to $100 - meaning a two-year payback period for the $51 estimated annual utility savings for this project.

Inspecting the ductwork, caulking and heating and cooling systems for possible upgrades or enhancements also help to provide additional energy savings.

Homeowners also can use the tax credit for heating and cooling components.

For example, upgrading a standard 10-year-old air conditioner to today's federal minimum 13-SEER (Seasonal Energy Efficiency Ratio) model may cost about $5,500 in Phoenix, but does not qualify for the tax credit. Spending as little as $2,000 more for a higher-efficiency air-conditioner (such as 16-SEER) earns the homeowner the $1,500 energy-efficiency federal tax credit. Plus, the local power company provides a rebate starting at $425. With the tax credit and utility rebate, the cost difference can be paid back in a couple of years, while the homeowner may enjoy utility bills savings for years to come.

With the credit, tankless water heaters are comparable in cost to traditional gas water heaters, but last as long as 20 years and are 30 percent more efficient. When the credit is included, homeowners can save $100 per year on their water heating expenses, he added.

In addition to expanding the 25C tax credit, the Wind, Solar, Geothermal and Fuel Cell (25D) Tax Credit for renewable energy products now provides larger incentives for installing

• geothermal heat pumps
• solar panels
• solar water heaters
• small wind energy systems
• fuel cells.

Although the upfront costs are high for these products, the tax credit is 30 percent and there is no cap on their cost through 2016.

Taxpayers can claim the credits on IRS Form 5695.

OTHER LINKS TO USEFUL SITES

• Homeowners can use an energy-savings simulation from the NAHB Research Center at http://energysim.toolbase.org/ to determine likely costs of upgrades and savings.
• Information on rebates from utility companies and other state and local government incentives is available at Database of state incentives for renewables and efficiency at http://www.dsireusa.org./
• Alliance to Save Energy at http://ase.org/content/article/detail/2654
• Home Channel News at http://www.homechannelnews.com/story.aspx?id=104655&menuid=305
• HGTVPro.com http://www.hgtvpro.com/hpro/nws_ind_nws_trends/article/0,,HPRO_26519_5943221,00.html

Good luck!

 

 

---

Wondering What Your Home Is Worth? -- Let me show you.

MORE GOOD NEWS FOR FIRST TIME BUYERS!

WHEN 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.

WHERE to use your $8,000 Tax Credit with your FHA loan   If you are an eligible for an FHA loan and you are a first time buyer, you can:

• Use the $8,000 tax credit for closing costs, escrow charges, higher down payment, or to "buy down" your interest rate so that you can have a lower monthly payment

WHO: Eligibility.   Here's how you can determine if you qualify:

• You must be a first time buyer in the sense that you have not owned a primary residence during the last three years
• Your household gross income cannot exceed $95,000 if you are a single taxpayer, or $170,000 if you are a married couple filing jointly
• You are submitting an offer on a house you can afford to buy
• You are applying for a mortgage through an FHA-approved lender
• Your home purcase must close escrow between January 1, 2009 and November 30, 2009.
• And you must invest a minimum of 3.5% of purchase, from your own funds (which can be from your savings and gifts from relatives)

WHAT and HOW: Complete your FHA application

• Complete the IR form 5405 --- this is your request to the federal government to send you a tax credit check. You can download Form 5405 at www.IRS.gov
• You can also file an amendment to your 2008 return to get your tax credit or file it on your 2009 taxes.
• Prove that you have no outstanding civil judgments, liens, unpaid taxes and other obligations that may eliminate the tax credit
• Prove that you are not subject to having your wage garnished in a way that may affect how much of a tax credit you will receive

Frequently asked questions about the home buyer tax credit  For more information, check out the FAQ from http://www.federalhousingtaxcredit.com/2009/faq.php 

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.

1. WHO is eligible to claim the tax credit?
2. WHAT is the definition of a first-time home buyer?
3. HOW is the amount of the tax credit determined?
4. Are there any income limits for claiming the tax credit?
5. WHAT is "modified adjusted gross income"?
6. If my modified adjusted gross income (MAGI) is above the limit, do I qualify for any tax credit?
7. Can you give me an example of how the partial tax credit is determined?
8. How is this home buyer tax credit different from the tax credit that Congress enacted in July of 2008?
9. HOW do I claim the tax credit? Do I need to complete a form or application?
10. WHAT types of homes will qualify for the tax credit?
11. I read that the tax credit is "refundable." What does that mean?
12. I purchased a home in early 2009 and have already filed to receive the $7,500 tax credit on my 2008 tax returns. How can I claim the new $8,000 tax credit instead?
13. Instead of buying a new home from a home builder, I hired a contractor to construct a home on a lot that I already own. Do I still qualify for the tax credit?
14. Can I claim the tax credit if I finance the purchase of my home under a mortgage revenue bond (MRB) program?
15. I live in the District of Columbia. Can I claim both the Washington, D.C. first-time home buyer credit and this new credit?
16. I am not a U.S. citizen. Can I claim the tax credit?
17. Is a tax credit the same as a tax deduction?
18. I bought a home in 2008. Do I qualify for this credit?
19. Is there any way for a home buyer to access the money allocable to the credit sooner than waiting to file their 2009 tax return?
20. The Secretary of Housing and Urban Development has announced that HUD will allow "monetization" of the tax credit. What does that mean?
21. If I'm qualified for the tax credit and buy a home in 2009, can I apply the tax credit against my 2008 tax return?
22. For a home purchase in 2009, can I choose whether to treat the purchase as occurring in 2008 or 2009, depending on in which year my credit amount is the largest?

Source:http://www.federalhousingtaxcredit.com/2009/index.html

According to our real estate attorney, we, as realtors should NOT pull the permit history of properties. That this is up to the buyer to get this information as part of the buyer investigation period, or the seller as part of the disclosure package.

What is it in your neck of the woods? What is your attorney's legal position on getting permits, and why?

In our listing and disclosure package, providing a permit history is not a requirement. But not having a permit history can lead to pitfalls and challenges in the future, and can be just as troublesome if we don't know what's going on with a property.

Question: who should get that permit history?  Who should provide it?

Here's a local scenario:

• Property is posted on the MLS as a triplex
• Buyer wrote and offer, and it's accepted.
• In the residential income purchase agreement, there is a specific clause that states "Seller warrants that the property is legally approved as having 3 units."
• Buyer proceeds with inspections and loan application
• Appraiser refuses to accept order to appraise property because it isn't appearing on public records as three units (but public records are often in error, so this is not a good gauge anyway)
• Previous MLS entries have different confidential remarks that raise question about the conformance with building codes
• Seller's agent produces copy of the permit history (but this was not provided with the initial disclosure package)
• Review of the permit history shows several citations and violations. Some permits were not finaled. But there is nothing in the permit history that indicates this property has three LEGAL units, only that there were three buildings inspected
• Property profile/tax assessment info shows only 1 unit with 2 bedrooms/1 bath.

The buyer may not have written an offer on the property because it is not clear if the property does, indeed, have three LEGAL units.

 

It's never fun to deal with an agent whose action is giving us all a bad name.

My client's offer was accepted on a two-unit building. The plan was for he and his wife to live in one, and rent out the other. This is their first home, and they have limited funds. Which is why it made sense to get an owner-occupied duplex.

Because the market is heating up in the under $300K price range for a duplex, we were happy to get accepted.

PROPERTY WAS MISREPRESENTED

The first time we were at the property, we saw that there are two separate living spaces. Or so we thought. But on our second visit, we realized that the bath in the second unit was only a partial bath, and didn't even have a shower, which makes it not a legal second unit.

Because it isn't a duplex per the MLS, and because we couldn't get the loan approved for this as an owner-occupied duplex, my clients elected to back out of the contract. We didn't clear any contingencies, so we were within the timeframe to cancel the escrow.

CANCELLATION OF ESCROW 

That was two weeks ago since I sent the cancellation request. I have emailed, texted, voice-mailed the agent who still hasn't given us the cancellation signed by the seller, so we can't get the escrow cancelled and my buyer's deposit back.

Yet, he has already put the property back on the market as active, without the signed cancellation.

$1000 CIVIL PENALTY

In our cancellation instructions, it states that "A party may be subject to a civil penalty of up to $1,000 for refusal to sign such instructions if no good dispute exists as to who is entitled to the deposited funds."

My broker has gotten involved, and gave the agent 48 hours to respond or subject himself and/or his client to the civil penalty of $1,000. And still no answer.

THIS AGENT IS BAD, BAD, BAD!

I know there's going to be a resolution to this, eventually. But what infuriates me is that this is the kind of agent who gives our profession a black eye.

This is not a new video --- it was posted n 2007. It may be new to some. But it bears repeating. The value is timeless.

From, http://www.teamhoyt.com/history.shtml, the story is about "Dick and Rick Hoyt who are a father-and-son team from Massachusetts who together compete just about continuously in marathon races. And if they’re not in a marathon they are in a triathlon — that daunting, almost superhuman, combination of 26.2 miles of running, 112 miles of bicycling, and 2.4 miles of swimming. Together they have climbed mountains, and once trekked 3,735 miles across America.

It’s a remarkable record of exertion — all the more so when you consider that Rick can't walk or talk.

For the past twenty five years or more Dick, who is 65, has pushed and pulled his son across the country and over hundreds of finish lines. When Dick runs, Rick is in a wheelchair that Dick is pushing. When Dick cycles, Rick is in the seat-pod from his wheelchair, attached to the front of the bike. When Dick swims, Rick is in a small but heavy, firmly stabilized boat being pulled by Dick. "

Watch this video. And if you don't get choked up over this nearly super-human love and devotion a father has for his son, then you must not be from this earth.

As young kids, and after someone gives us something or does something for us, our parents would always ask "And what do you say?" To which we answer, "Thank you!"

But lately, it seems to be the adults who need to re-learn the value of saying "Thank you."

Recently, a neighbor whom we hardly know and barely speak to, came to our place Friday night just before they were to leave on a 3-day weekend, to ask if we can take care of looking after their cat. I told her I'm allergic to cats, but that I will make sure the cat has food and fresh water.

When she returned, she could have just as easily come to our door to tell us they're back. And a simple "Thank you" would have been appreciated. But no! Not a word. Not a peep. NADA!

Every day, we run into situations where a simple "Thank you" seems warranted. But it doesn't come. And henceforth, we are disappointed at the disappearing act of these two words: "Thank you."

In our profession, how many times have you received requests for information that takes time to research. And when you call/email them with that information, do they even acknowledge what you've done?

Just how hard is it to say just two words that can mean a lot?

Today, a couple of first time buyers whom I helped to buy a home, came by my office, bearing gifts of wine and chocolates --- their way of saying thank you. That truly brightened my day. I promptly shared the chocolates and the wine with my co-workers, who, happily, said "Thank you!" CHEERS!

This is not a rant....but a question.

Thanks for reading this far. Perhaps you have other thoughts on this matter as well?


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