Our federal government passed the First-time Home Buyer Tax Credit last summer, giving buyers reason to get off the fence and into a home.  There are just a few requirements, the first being that you haven’t owned a home in at least three years.

If so, and you bought a primary residence in the United States last year after April 9, you may claim a credit of up to $7,500 on your 2008 tax return.  If you plan to buy this year, then act quickly, because you’ll need to purchase by July 1 to make the claim on your 2009 return.

The credit is figured as ten percent of the home’s cost, up to the maximum of $7,500, if your individual income is less than $75,000 or household income is less than $150,000.  At slightly higher incomes, you may claim the credit at a reduced percentage.

Keep in mind that this is not a “bailout,” and in order to be cost effective for taxpayers, this credit must be paid back in very small increments over fifteen years, but not beginning until 2011.  Basically, it’s an interest-free loan for a fifteen-year term.

This incentive, combined with low rates, large inventories, and affordable prices, should put a home purchase well within your grasp.  Get more details from Don Kingsley Real Estate and begin your search today!

Please feel free to contact me if you are in need of real estate guidance.  I would be happy to share my knowledge with you at no cost or obligation.  If you prefer, email me at donkingsley@kingsleyrealestate.com.

You’ve probably heard the term “reverse mortgage,” which refers to a loan that allows homeowners aged 62 and older to tap the equity in their home, without repaying it.  This has become an increasingly popular way for retirees to generate extra income for living expenses and paying off debt.

However, high fees and aggressive sales tactics prompted the Senate Special Committee on Aging to recently issue an investor alert.  The intention behind the warning is not to discourage reverse mortgages, but rather to encourage homeowners to make sure it’s the right loan product for them.

The biggest downside to such an agreement is that the up-front costs for application, legal fees, document recording, and loan origination fees can sometimes top 10% of the loan’s value.  For this reason, the federal government requires meeting with a financial counselor prior to applying for a reverse mortgage, helping ensure that it’s the best loan product for your situation.

In addition to a financial advisor, you are strongly encouraged to consult with me since I’ve completed the course “Senior Real Estate Specialist” which covered Reverse Mortgages.  Simply put, you might generate more income by selling your home and moving to a less expensive one, directly pocketing the equity you’ve worked so hard to build over the years.  An Associate Broker from Don Kingsley Real Estate can compare your home’s value to other attractive properties on the market, and guide you to a profitable conclusion!

Please feel free to contact me if you are in need of real estate guidance.  I would be happy to share my knowledge with you at no cost or obligation.  If you prefer, email me at donkingsley@kingsleyrealestate.com.

A real estate professional recently coined the term “Price Denial Syndrome,” a troublesome condition that afflicts sellers having a hard time facing the realities of today’s markets.  Of course it’s difficult to make a pricing concession, but an overpriced home simply will not sell.

Perhaps the sellers argue that they really need the money, but then they have to ask themselves what they’ll do for money if the home doesn’t sell.  Maybe they figure that they can shoot for the moon now and reduce the price later if they must.  However, the longer a property remains unsold, the more likely it is that even more price reductions will follow.  Then it’s shopworn and takes even longer to get a sale at a lower price.

Some sellers might suggest trying a higher price just for the first two weeks, but that’s when the interest of serious buyers is always greatest.  Those buyers usually look within a certain range, and won’t even make an offer at all on an overpriced property.  As of January 7th, the interest rate on a 30-year mortgage was 5%!  That rate will attract buyers, but an overpriced home will send them in the other direction.

Most importantly, if the sellers need to buy another home, time is of the essence.  If the sale takes too long, they’ll be buying at a time when prices and interest rates may begin climbing again. 

If you’re suffering from PDS, pay attention to the news, review your home’s Competitive Market Analysis, and call Don Kingsley Real Estate in the morning!

Please feel free to contact me if you are in need of real estate guidance.  I would be happy to share my knowledge with you at no cost or obligation.  If you prefer, email me at donkingsley@kingsleyrealestate.com.