VHDA Loan Updates for Virginia…
Written by John on February 24th, 2010. Filed under Uncategorized and tagged with FHA Loan, First Time Buyer, Hampton, Henrico, homebuyer, Limits, Loan, New Kent, Newport News., realtor, Richmond, Tax Credit, Va, VHDA, Virginia.Keep up with the new FHA guidelines, especially if your credit score is lower than 580.. Deadlines are upon us once again for first time buyers. Check out this link for Tax Credit Basics.
VHDA Updates for Virginia
VHDA is pleased to announce new income and sales price limits effective with new reservations beginning March 1, 2010.
Income limits increased in all areas of the state and sales price/loan limits increased in most areas.
Now, more homebuyers can benefit from the special features that VHDA loans provide including our FHA Plus and Homebuyer Tax Credit Plus programs.
A summary of the new limits is noted below. Complete details of the new limits will be available on vhda.com March 1st.
Area
Washington DC./No.VA $97,500
MSA
Warren County $70,000 $81,000 $
Va.Beach-Norfolk
Richmond
Charlottesville
Winchester-Frederick
MSA’s
Culpeper/Essex/Rappahanock $70,000 $81,000 $
King George County $73,000 $84,500 $
Remainder of State $70,000 $81,000 $245,700
Your Neighbors House…
Written by John on February 24th, 2010. Filed under Uncategorized and tagged with CMA, Comps, JohnMartinHome, Real Estate, realtor, REO, Richmond, Short Sale, Virginia, Williamsburg.So, your neighbor purchased his house back in 2001 and has decided to take full advantage of equity and the market. He decides to put his house on the market for 450,000 and you have an almost similar home listed for 525,000. Obviously these numbers are even for example purposes. So, the neighbors house puts you in a situation, do you drop your price to compete or keep trying to hold on to value. Its a difficult spot and it all comes down to motivation. One seller decides to chase the market as most sellers are doing these days and the other caught it. Seller number 2 purchased in 2007 and most likely can only go so far in negotiations. Most sellers don’t want to bring money to the table, especially to cover commissions, can’t blame them. But lets say the second seller that purchase in 2007 makes up the difference on a new house purchase. He or she is transferring the market. Most buyers will make huge gains in price reductions and or get a really good deal. Figure you will do the same on the next house. Its all a difficult way of looking at the market, but eventually we will be at normal sales prices and hence the return of the good days. Well, OK days will do at this point
Tax Credit Update
Written by John on November 21st, 2009. Filed under Uncategorized and tagged with closing, existing homeowner, first-time homebuyer, for sale, Henrico, home purchase, homebuyer, NAR, National Association of Realtors, Newport News., Obama tax credit, President Obama, Richmond, Tax, Tax Credit, Update, VAR, Virginia Association of Realtors, Williamsburg.A tax credit update and a very helpful Q & A are below from Virginia Association of Realtors and the National Association of Realtors. As Quoted on VAR’s website, “The bill extends the present $8,000 tax credit for first-time home buyers through April 30, 2010. Current homeowners are eligible for a $6,500 tax credit through April 30, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years. If potential home buyers have a binding contract on or before April 30, they will have until July 1 to close the transaction.Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000. To help guard against fraud, buyers are required to attach documentation of purchase to their tax return.” Here’s a Q&A from NAR about the new credit:
Q. Existing homeowner credit: Must the new house cost more than the old house?
A. No. Thus, for example, individuals who move from a high cost area to a lower cost area who meet all eligibility requirements will qualify for the $6500 credit.Q. I am an existing homeowner. On October 25, 2009, I signed a contract to purchase a new home. I have lived in my current home for more than 5 consecutive years and am within the new income limits. I will go to settlement on November 20. If President Obama has signed the bill by the time I go to settlement, will I qualify for the new $6500 tax credit?
A. Yes. The existing homeowner credit goes into effect for purchases after the date of enactment (when the bill is signed). There is no reference to the date of contract for the new credit. The provision looks solely to the date of purchase, which is generally the date of settlement.
Q. I am a first-time homebuyer but was not within the prior income limits at the time I entered into my contract to purchase on October 30, 2009. I will be covered, however, by the new income limits. If the new rules have been signed into law by the time I go to settlement, will I be eligible for a credit?
A. Yes. The new income limitations go into effect as soon as the President has signed the bill. The income limit and other eligibility rules will look to your status as of the date of purchase, which is the settlement date. So if the new rules have been signed when you go to settlement, you should be eligible for the credit (or a portion of the credit if you’re within the phase-out range).Q. I am an eligible existing homeowner. I have a fair amount of equity in my home. I have found a home with a non-negotiable price of $825,000. Will I be able to use any of the $6500 tax credit?
A. No. The $800,000 cap on the cost of the purchased home is firm at $800,000. Any amount above $800,000 makes the home ineligible for any portion of the credit. The $800,000 is an absolute ceiling.Q. I owned my home for 10 years, but sold it two years ago year and have been renting since. If I purchase a home, will I be eligible for the $6500 tax credit if I meet all the other eligibility tests?
A. Yes. Because you lived in the home for more than 5 consecutive years of the previous 8, you will qualify for the $6500 credit. For example, Say John and his wife bought a home in 2000 and lived there until 2008 when he got a divorce. Whether John has been renting or bought in the interim, he WOULD INDEED be eligible for the credit because he owned a home and occupied it as his principal residence for 5 consecutive years out of the last 8 years. The keyword here is “consecutive.” As long as he lived in that house for 5 years straight, what he did since 3 years doesn’t impact eligibility.Q. I am an eligible first-time homebuyer. I entered into a contract to purchase on November 1, 2009. Do I have to go to closing before December 1? How does the extension date affect me?
A. You do not have to close before December 1. Once the legislation has been signed, it will be as if the Nov 30 date had never existed. Therefore, so long as the contract settles before April 30 (or July 1, worst case), the purchaser will be eligible for the credit. NAR
Slowing down!
Written by John on October 11th, 2009. Filed under Uncategorized and tagged with , buyers, first time, First Time Buyer, home, homeowner, house, taxcredit.As we approach the Holidays and Winter months, are we going to see a slowing down of sorts? I would say so, the first time homebuyers credit deadline is November 30, 2009, which means that all first time home buyers or buyers not owning anything within the last 3 years are eligible to get the $8000.00. The idea behind the push was to create a domino effect, the first timers purchase, then the sellers move up in price on a new house and so on.. I don’t think that has happened as often as some might think. We need this credit to continue through spring. Its keeping an energy about the market and helping first time buyers jump into the pool of home ownership. I would be surprised if the credit wasn’t extended! We will see. Prices are starting to get lower, but I don’t know when we will get to the bottom, simply because its dictated by motivated sellers and sellers are very motivated. The problem is getting buyers, not first timers, to make a decision. Its hard to know whether you are getting a good deal or if the prices will fall more? I think we are close and now is the time if you want to buy. The spring market should be better and things will hopefully heat up, especially coupled with an extended taxpayer credit??
Sqft & Tax Records
Written by John on May 21st, 2009. Filed under Uncategorized and .Appraiser, Owner, Tax Records or Agent? An agent should never measure a house, especially one you are listing. I showed one of my listings the other day and client couldn’t get past the tax records. He assumed that because the tax records for the city stated the house was 2000 sqft, then it had to be true. I explained to him that tax records often do not reflect the correct info, including sqft. This house happened to have a low sqft and tax assessment and a small addition on the back of the house. Tax records are typically a drive by process and looking at the exterior of the property, assessors rarely go inside. Assuming the sellers pulled permits for additions, then sqft might be adjusted, but don’t count on it? As an owner, should you call the City if you feel your tax records are too low? Does it effect the resale of your property? It shouldn’t, but this day and age everyone is online and looking up stuff. So, they assume the realtor is selling the house bigger for more money. Tax records are all over the place and should only be a reference when looking at properties and certainly not a source of value. Some areas do run close to assessment, but others are so far off its no wonder the city is having budget troubles? The best source for a seller is to find an older appraisal or have a local appraiser measure the house ($75). Measuring seems easy enough, but it can be costly if you’re are wrong. If the house is off and you purchase it, make sure you request a copy of the appraisal from your lender prior to closing. You paid for it, so why not get a copy? This can assure you of the advertised sqft and the actual measurement. If the property is off by 100 sqft, then appraisers can make adjustments? Most newer homes are pretty close in the tax records, but be aware when you see an addition or with an older home.
Are we trained?
Written by John on April 19th, 2009. Filed under Uncategorized and tagged with buyer, buyers, house, listings, market, pricing, realtor, sell, sellers, upgrades.Has the market hit the bottom or are prices still too high? I show houses each day to buyers and I sometimes leave a listing thinking the price should be less? Our minds are now trained to only purchase an item at a discount, which fuels decreased house prices and lower offers. Yes there are some houses priced right and those usually sell quickly, unless they have some single reason or issue. For example settlement issues, bad floor plan, not updated, too much work, etc.. The houses on the market that are stuck in the 60’s, 70’s & 80’s often have longer market times. You know the ones, bright pastel paint, wall to ceiling mirrors, old formica tops, pink ceramic tile and cream paint. Not to say that having those features is a bad thing, its just the way we think? Again, something as simple as new carpet, trim and wall paint, solid surface counter-tops or new appliances take away from the purchase. We want instant information, cell phones, texting and now upgrades. Lets face it, each seller is in a different situation. Its often too expensive or too much to handle to make the updates. For whatever reason, they make a difference. Staging, updating, paint and minor improvements make a house sell. We are now trained, especially my generation (35) and below, to only see the upgrades. We assume all houses should have granite, stainless, wainscoting, deck, master baths, flat screens, etc.. whatever it is that floats your boat. If they don’t, then how can we get them: decrease the price at contract or make the seller pay for them? Hopefully the market being slow will create a surplus of great & updated homes. Who knows, but when a buyer walks in your house, assume they are trained.
Virginia Real Estate
Written by John on March 11th, 2008. Filed under Uncategorized and tagged with buyers, New homes, Real Estate, Richmond, sales, Virginia, Williamsburg.A blog for Central & Eastern Virginia Real Estate Markets. Ranging from Hampton, Williamsburg and the City of Richmond. Comments on New Home Sales, first time home buyers movement, tax credits, resale homes and house seller. Has the market hit the bottom? When will buyers and sellers agree on price?