Thursday, February 25, 2010

When Was The Last Time Someone Gave You $8000?

Hi: We are making sure all of our clients & friends know that the $8000 first Time Buyer Credit and the $6500 Existing owner credit are about to expire. You must sign a contract by April 30, 2010 and settle by June 30 to qualify for this credit. Do not miss this opportunity if you are thinking of buying or selling. When was the last time the government offered you a $8000 credit?


Combined with historically low interest rates and FHA financing of most mortgages you need less money than ever to make your dream come true. With FHA you only have to put down 3.5% and can even finance some of the closing costs.

Prices on homes have been reduced over the last few years in most areas so you can finally get your home at a reasonable rate. Buyers no longer have to offer full price or above to get their home.

So combine the low prices, low interest rates, low down payment, loans guaranteed by the FHA and an $8000 Credit you must agree now is the time for Buyers. Hold onto your home for five years and you will show a sizable increase in the value of your home.

If you have decent credit you may be able to purchase a $200,000 home for as little as $7,000 down. At 5.5% Interest rate the mortgage payment would be $1100 if you finance the closing costs. Then you get the tax credit for $8000 next year and you have eliminated your initial investment.

Please do not miss this opportunity. Contact us today. These circumstances may never be duplicated.

Sincerely, Jim & Deborah
Century21 Alliance


Jim & Deborah Brady Realtors
Licensed in Pa #RS276048
Office: 610-853-2700
Direct: 610-853-8416
Cell: 610-613-3381
Fax: 610-853-4835

Website: http://www.bradyhometeam.com/

Our Blog Pages: http://yourrealestatequestionsanswered.blogspot.com/

http://www.trulia.com/blog/jim_brady/

http://www.haverfordblog.com/cgi-bin/yabb2p4/YaBB.pl?board=HT-Real-Estate

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Sunday, February 21, 2010

Real Estate holding firm in Haverford, Pa

According to The Trend MLS Listing Service the Realtors in this area use Quarter 4 2009 started to show some life. The average home price including all styles in Haverford was $271,900 for an increase of 2.8% from the previous year. 86 homes sold in the township for an increase of 22.8% from last year's quarter 4. Average days on the market was 76 but the interesting number is sellers got 96.7% of their final asking price. Final asking price is the list price after reductions to the original price. Many homeowners typically reduce the price if a home if it is not receiving any written offers.




All in all Haverford started to rebound a little and if you include the townhomes, condos, twins, and singles included in this report our average price is pretty solid compared to some other areas of the country. Short Sales and Foreclosures have reduced the average settled price in many parts of the nation so to actually show a small increase is good news.



Haverford continues to attract buyers of all kinds. We have a good reputation in the real estate world and why not?People are nice, schools are good,  and we live in a Metropolitan Area. This spring should see a burst of activity before the Federal Tax Credit expires in April 2010.

Century21 Alliance
Jim and Deborah Brady
Office:610-853-2700
Direct: 610-853-8416

http://www.bradyhometeam.com/

Saturday, February 13, 2010

A Variety Of Tax Credits Available

Was pouring over the tax credits available and wanted to make our neighbors aware of them. http://www.federalhousingtaxcredit.com/

First is the obvious one, the First Time Home Buyers and the Existing Home Buyer tax credit. Basically anyone who hasen't owned a home in 3 years can qualify up $8000 tax credit on a home purchase as your primary residence. $125,000 income limit for individuals and $250,000 for couples.

Existing Home Buyer Credit up to $6500 for anyone who has lived in a home 5 consecutive years out of the last 8 years can qualify on a primary residence.
To qualify you must have a signed agreement of sale by April 30,2010 and settle by June 30,2010

Now here are a few energy related credits.

Residential Energy Property Credit (Section 1121): The new law increases the energy tax credit for homeowners who make energy efficient improvements to their existing homes. The new law increases the credit rate to 30 percent of the cost of all qualifying improvements and raises the maximum credit limit to $1,500 for improvements placed in service in 2009 and 2010.
The credit applies to improvements such as adding insulation, energy efficient exterior windows and energy-efficient heating and air conditioning systems

Windows and Doors
Tax Credit:
30% of cost with no upper limit
Expires:
December 31, 2016

Geothermal Heat Pumps:
Tax Credit:
30% of cost with no upper limit
Expires:
December 31, 2016



Here is a table listing 1. Geothermal , 2. High Energy Heating System, 3. Older Heating System on our home.
Geothermal
Heating/Cooling/Hot Water Operating Cost Comparisons

Chart and graph below are based upon data selected to the left and are considered to be estimates only. Home construction, occupant living habits, weather, and other variations may change the accuracy of this report. Operating costs include heating, cooling, and hot water only. Most homes have approximately 500 to 1,000 kWh of base electric use (electricity use for lighting and appliances). For this size home, the base electric use should cost approximately $38 to $75 per month, which must be added to the heating, cooling, and hot water costs.

System Comparisons:
1 Geothermal Heating and Cooling with Hot Water Generator
2 Natural Gas Furnace, 91% eff. / 10 SEER Air Conditioner / Natural Gas Water Heater
3 Natural Gas Furnace, 80% eff. / 10 SEER Air Conditioner / Natural Gas Water Heater

Annual heating, Cooling, and Hot Water Costs:
60 year old, 2000 sq. ft. home
Philadelphia, PA
System Heating Cooling Hot Water Totals Avg Monthly
1          $503     $142    $423        $1,068          $89
2        $1,760    $362   $873         $2,992          $249
3        $1,996    $362    $870        $3,228          $269

Electric rate: $0.075/kWh
Propane Rate: $2.75/gallon
Natural Gas Rate: $1.75/ccf
Fuel Oil Rate: $2.60/gallon

Installs a system of pipes 4 to 6 ‘ below ground filled with a coolant liquid that transfers hoter air in the winter and cooler air in the summer to system where it is heated up . Energy costs are $89 Per month estimated for heat and cooling. The site estimates it will take 5 years to recoup the extra expense of a GeoThermal system but I do know all high end energy systems are attractive to buyers so you may get some of that money back on the sale of your home.


SOLAR ENERGY SYSTEMS AND SOLAR PANELS
Tax Credit:
30% of cost with no upper limit
Expires:
December 31, 2016

Now here are some Vehicle Tax Credits:

AUTOMOBILE TAX CREDITS
Hybrid Gas-Electric and Alternative Fuel Vehicles

Individuals and businesses who buy or lease a new hybrid gas-electric car or truck are eligible for an income tax credit for vehicles “placed in service” starting January 1, 2006, and purchased on or before December 31, 2010. The amount of the credit depends on the fuel economy, the weight of the vehicle, and whether the tax credit has been or is being phased out. Hybrid vehicles that use less gasoline than the average vehicle of similar weight and that meet an emissions standard qualify for the credit.
This tax credit will be phased out for each manufacturer once that company has sold 60,000 eligible vehicles. At that point, the tax credit for each company’s vehicles will be gradually reduced over the course 15 months. See the IRS's Summary of the Credit for Qualified Hybrid Vehicles for information on the status of specific vehicle eligibility.
Alternative-fuel vehicles, diesel vehicles with advanced lean-burn technologies, and fuel-cell vehicles are also eligible for tax credits. See the IRS summary of credits available for Alternative Motor Vehicles.



Plug-In Electric Vehicles
The Recovery Act modifies the credit for qualified plug-in electric drive vehicles purchased after Dec. 31, 2009. The minimum amount of the credit for qualified plug-in electric drive vehicles is $2,500 and the credit tops out at $7,500, depending on the battery capacity. To qualify, vehicles must be newly purchased, have four or more wheels, have a gross vehicle weight rating of less than 14,000 lbs, and draw propulsion using a battery with at least four kilowatt hours that can be recharged from an external source of electricity. The full amount of the credit will be reduced with respect to a manufacturer's vehicles after the manufacturer has sold at least 200,000 vehicles. The credit will then phase out over a year

Low Speed & 2/3 Wheeled Vehicles
The Recovery Act law also creates a special tax credit for two types of plug-in vehicles - certain low-speed electric vehicles and 2- or 3-wheeled vehicles. The amount of the credit is 10% of the cost of the vehicle, up to a maximum credit of $2,500 for purchases made after Feb. 17, 2009, and before Jan. 1, 2012.

To qualify, a vehicle must be either a low speed vehicle propelled by an electric motor that draws electricity from a battery with a capacity of 4 kilowatt hours or more or be a 2- or 3-wheeled vehicle propelled by an electric motor that draws electricity from a battery with the capacity of 2.5 kilowatt hours. A taxpayer may not claim this credit if the plug-in electric drive vehicle credit is allowable. Please see IRS Notice 2009-58:

I know there is a state program that will give up to $1000 tax credit if you hire one of their contractors to do an energy audit of your home and have them do the repairs. They will also arrange financing for the work but I am skeptical of any program that makes you use their contractor and offers to arrange financing. I would be more in favor of a cash grant program for work done. If anyone knows of the local programs available please post them. I have never heard of any local agency offering any kind of program.

These figures are from the IRS site and the EPA site. I am confused by the language on some of the residential energy credits. On the IRS site it lists $1500 max but on the EPA site it lists some items at 30% credit with no limit and not expiring until 2016. I would ask any contractor doing the work before he starts what the ruling is and also ask them if they have any rebate programs available. I know some will offer up to $4000 contractor rebate on high end heating systems.



Century21 Alliance
Jim & Deborah Brady Realtors
Licensed in Pa #RS276048
Office: 610-853-2700
Direct: 610-853-8416
Website:  http://www.bradyhometeam.com

Our Blog Pages:  http://yourrealestatequestionsanswered.blogspot.com/
http://www.trulia.com/blog/jim_brady/

Network with me on Facebook
http://www.facebook.com/jimabrady

Thursday, February 4, 2010

Getting Your Home Ready To Sell

Today we will break down the process of getting ready to sell and what has a high impact on buyers.

1. DECLUTTER, Declutter, Declutter. All of that stuff we accumulated over the years has to go either to storage or yard sale or give it away. We cannot stress this enough.  Take at least one piece of furniture out of each room to open it up.  Clear out the basement and attic. You are looking to make your home look as big and wide open as possible.  Clear away the tables except for essentials.

2. FRESH PAINT. Nothing makes a home look cleaner and ready to move in like a fresh coat of paint in all the rooms. It dosen't have to be all bone white color but stay away from some of the brighter colors.

3. INSPECT. Walk around your home inside and outside like an inspector would and be prepared to have some of the defects  repaired or give a cash credit at the settlement table to the buyer.  Be informed about the strong points and weak points of your home. Every inspector finds something in a home that they focus on for one reason or another. They are professionals and are trying to protect both the buyer and themselves from litigation. You can offer a free home warranty to the buyer to make them feel a little more comfortable about the responsibilities of home ownership.

4. CURB APPEAL. Have your home sparkling on the outside and have flowers and plants evident and have your landscape well taken care of.  That is the first impression of your home and it is a lasting one. A new or freshly painted front door and windows goes a long way to creating a good impression.

5. PRESENTATION.  For your appointments have the lights on, curtains open to let in as much light as possible, have the home straightened and clean, pets toys and stuff put away,  and have some information about the neighborhood, schools, community groups, restaurants, etc available with your realtors presentation packet. Get your Realtor to post high quality photos of your home on all his websites and the multiple listing service. 90% of buyers start looking on the web and they base their impressions on the price and the photos of the home. Without a fair price and superior photos your showings will suffer.

6. PRICE IT RIGHT. Listen to your realtor and try to keep the price the same or a little lower than the competition. Nothing drives traffic to a home like an attractive price. Try not to be the highest priced home in the neighborhood unless you have a long list of upgrades that were done and it is absolutely move in. This is a tough market right now and the buyers and their agents are well informed on the settled prices in your area.


If you spend a little money on paint and repairs and put some sweat into getting your home ready you will reap the rewards with lots of showings and positive feedback from the agents and buyers . Word spreads quickly on a nice home ready to move into. We hope this helps you in getting your home ready.