Tax Credit for Military home buyers and home sellers
February 15, 2010
Congress has been hard at work creating the home buyer tax credit legislation with all kinds of sections hidden away in nooks and crannies. One main program offered to help military home owners has seen a change and that one happens to be the one to aid military home owners that are in a place where they must sell their homes for less than is owed.
In November 2009, the Worker, Home ownership and Business Assistance Act was signed into law. Under this legislation, military personnel along with a few other federal employees that are serving their country on foreign land have an extra year in order to qualify for the $8,000 tax credit which is being offered to first time home buyers along with the smaller $6,500 credit for repeat buyers.
The recapture rule has also been put aside for uniformed service members, employees of the intelligence community, and members in Foreign Service.
The new law provides eligible taxpayers that enter into a contract to purchase a residence by April 30 and close prior to June 30 to benefit from the tax credit. All service personnel have another 12 months in which to benefit from the tax credit with their dates to sign a contract being April 30, 2011 and closing no later than 90 days after signing the contract.
This new rule for service personnel does include the spouse or the service personnel that serve on qualified official extended-duty service outside the United States for at least 90 days between January 1, 2009 and April 30, 2010. The Internal Revenue Service explains that only spouse must be stationed overseas to qualify for the tax credit.
For the majority of home buyers if they sell the home or the home stops being the primary resident within three years of purchase, the credit will have to be repaid. However, if the home belongs to eligible service personnel that provision will be waived if the home sold is sold due to orders sending the service member to another location that is at least fifty miles from the home. The post can be any location as long as it is 50 miles from the sold home and the service personnel will be at the new post for ninety days or more.
Military personnel may be eligible for aid if they find themselves in a bind and must sell their home for less than is owed on their mortgage, if the bind is due to a mandatory permanent transfer of duty.
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Increase the Value of your Home
February 14, 2010
If you are contemplating selling your home, but want to make a few extra dollars than what you expect you can receive, there are a few things you can do to increase the value of your home. Just a few upgrades as well as home projects can add more value to your home without in most cases costing more than you will receive at the closing.
Today, more and more homebuyers are searching for an open floor plan. If it is possible for you to open up the kitchen to the living room making a more open floor plan, do so. This allows the cook to still be with the family while preparing meals, which is also great when guests are invited to the home. This open floor plan is one that is selling homes faster than you might imagine.
When it comes to the master bedroom, most home buyers are looking for an adjourning bathroom and of course, at least one walk-in closet, if not two. If your home does not have a master bathroom or walk-in closet, this would be a great option for a quick sale. If this is too much of a task, you can always add such things as dual sinks, Jacuzzi tub, and a walk in shower to increase the value of your home.
Home offices are very popular today, with more people working out of their home. Creating an area in your home that can be used as a home office will certainly add more value. In this area, be sure that you have ample outlets and phone lines for office equipment and computers.
Women often check out the kitchen and bathrooms before any other rooms in the home. If you do not wish to completely give your kitchens and baths a complete makeover, you can do a few small projects that will give the rooms just the right touch. Install a new backsplash, countertops, and change out those old cabinet knobs. Stainless steel appliances are always a great touch, as well.
A fresh coat of paint is always a good idea for every room in the house. This will give your home a new feel. Do not use colors that are wild, quiet colors or white are always best.
Replacing old windows with new energy efficient ones of course will be an added benefit. You may not realize this, but the first thing home buyers notice when they pull up to your home are the windows and the front door. You do not want potential home buyers to see old stained windows and a drab front door. You can install new windows or at least clean the windows inside and out. Paint the front door and even add a bit of color such as a wreath.
Now, for the front lawn, which may not cost a thing to improve, only rid the lawn of debris and dead plants. Make sure there are no bare patches in the grass and the hedges are trimmed.
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Want to sell Don’t do this!
February 8, 2010
Those wishing to sell their home may not have any idea at all what they should do to get started let alone know how much they should ask for their home. Most homeowners know the amount they paid, know if improvements have been paid, and they will also know about their own neighborhood, however, it can be very hard to put a price tag on your home especially if you have lived there for years and there is sentimental value in the home for you.
Selling your home is not selling items at a garage sale or swap meet. You can place a high price tag on your home, with the understanding that homebuyers will offer you less and you can then haggle. You may even believe it you place a high price tag on your home, someone will come along, fall in love, pay that price, and then you have all kinds of extra money. If you put a high price tag on your home, you may be shutting out home buyers that would be ready to purchase your home in a minute if you only had the price down a couple of thousand dollars.
Remember one thing when you get ready to sell your home. Your ideas of what the home is worth does not matter. Yes, Jennie may have taken her first steps in the living room and Mark built the tree house in the old Oak out back, but the homebuyers are not here to pay for your memories. The homebuyers want to buy your home to create their own memories.
The true value of your home and pricing it correctly is an endeavor that should be met with education and patience. You should learn what other homes in your area are going for with the same or close to the same amenities. Learn what the market is doing now. Are homes your size going for the appraisal value or higher or lower? What about the amount of homes in the area with your same amenities? If there are several, then homebuyers will be so many to choose from that yours will no longer be unique. On the other hand, if yours home is the only one in the area with four bedrooms and the market shows four bedrooms are quickly selling, then you have a gold mine.
Want to price your home very low; thinking this will make it sell fast? This is also a huge mistake. If you price your home lower than it is worth, then homebuyers are going to think that something is wrong with the house, the property, the neighborhood, the schools, etc…
When you are ready to sell your home, you need to talk with a qualified real estate agent that will work with you to ensure that you put your home on the market in the right bracket so it will sell instead of the sit on the market. Homes that sit on the market due to pricing become expired listings and most people are looking for fresh homes on the market. Those that have set due to high or low price tags may sit even longer once the right value is asked.
For more information regarding Tulsa news, articles and commentary on homes sales, farms and commercial property in the Tulsa Real Estate market please re-visit or subscribe to our RSS Feed on our Tulsa Real Estate Mall Blog.
Protecting your Tulsa Property from Flood Damage
February 7, 2010
The City of Tulsa has had its fair share of floods and over the last few years has implemented various flood control projects to help protect the city; however, it is impossible for Tulsa to be 100% free from flooding. Due to this, Tulsa homeowners should learn what they could do to help protect their property in case of flooding.
You can request a free flood zone determination, which is detailed floodplain boundary map by contacting the Mayor’s Action Center and providing them with your address and the legal description of your Tulsa property.
Even if your property is not deemed to be in a flood area, you may still want to take some precautionary measures such as:
- Retrofitting buildings
- Regrading your yard
Retrofitting buildings or regarding the yard is nothing more than elevating those buildings above flood levels and then installing backflow preventers, which will ensure that your floors are protected from damage of sewer backups, which is always a problem during flooding. You may even consider creating structural barriers such as floodwalls or levees. If you do wish to add a structure to your property to help protect your Tulsa home from flooding, you will need to get a building permit.
The Federal Emergency Management Agency better known as FEMA has published a pamphlet, “Homeowner’s Guide to Retrofitting: Six Ways to Protect Your House from Flooding”. This publication will provide Tulsa homeowners information on protecting their property as well information regarding financial assistance.
Temporary Measures
Spring is just around the corner and this is the season that the majority of the flooding occurs in the Tulsa area. Being prepared is the best way to protect your property if only for a temporary time period.
Before spring arrives, have a plan of action. Know how and where you place your belongings out of the way of the rising water if it reaches your home. Keep specific materials on hand such as lumber, plastic sheeting, sandbags, and plywood. Ensure that all brush and debris has not collected in storm drains or ditches, this only adds to the water coming onto your property.
If you are considering a building structure, you should speak with a qualified Tulsa city staff member at the Permit and Licensing Center. Since flood control is a city-wide problem, you do not want to build a structure that will save your property but may cause the water to flow into other areas and cause damage. Talking with city staff to learn your options and receive qualified help to build a safe project while complying with the floodplains set forth by the City of Tulsa will be your best bet.
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Using Feng Shui to Sell a Home
January 31, 2010
Feng Shui many may believe is a new fangled way to sell a home and that only special realtors understand this secret concept. However, that would be a misconception. Feng Shui has been around for centuries; the only difference is that the concept has now been westernized, so to speak.
Feng Shui is nothing more than living in harmony with the environment. The concept is that once a person is one with the environment, fascinating or magical things happen. The concept is that if all elements are in place or in balance, the outcome will be the creation of harmony, balance, and peace to attract a buyer.
Chi better known as positive energy flows gently when all elements are in accord or harmonious. When elements are out of balance Chi will either stop or disappear completely.
The flow of Chi is very important to the comfort and well-being of those living in the home and potential buyers. These individuals pick up balance and imbalance. The idea behind the concept of Feng Shui is to create an environment that is harmonious to the both the seller and the buyer. This includes the ability to support the health and good fortune in the way in which objects are placed in the home, the colors used the landscape, and the use of the five elements, which include fire, earth, metal, water, and wood.
The idea behind Feng Shui is to use all five elements to welcome the buyer. This means from the very moment a person walks up to the door they should be greeted by all five elements. If you wish to sell your home, you must have things in balance. The best way to put a buyer at ease is to ensure that you are making them comfortable and the Chi is flowing in each and every room and not running out the door when the door is open. This means if the room is bare the chi will more or less escape. You can have all five elements at the front door but with nothing to stop the positive energy when the buyer walks in the Chi will soon be out the next door. Place items strategically in the rooms and especially in long hallways.
Remember, balance is everything. If you have all five elements in each room of the home, you will be balancing the home and your buyers will be more apt to linger and fall in love with the home.
Thank you for visiting our Tulsa Real Estate Blog. If you are looking to sell your home, you should take the opportunity to speak with a RE/MAX Agent to help you prepare your home for potential buyers. To keep current on the Tulsa market and local event please subscribe to our free RSS Feed.
Home Winterizing Tips
January 25, 2010
When the north wind begins to blow, we start putting up all of our spring and summer toys, attire, and other items we will be using for months. One important thing that many of us forget to do is winterize our home for the upcoming season. As soon as the leaves starting turning we should start getting our home ready for the winter. The following tips will ensure that your home will stay in great shape during the winter months even if you put on a few pounds over the holidays.
Of course, not everyone lives where they can expect ten feet of snow and cold north wind blowing most of the time; however, there are still things you will need to do to prepare your home for the upcoming season.
The winterizing tips include:
Inspect your furnace – In most cases, you should contact an HVAC professional to check your furnace to ensure that all is working properly. Your heat/air professional should visit your home before winter and once again before summer each year. Purchase new filters and change them. Ensure that you have not stored any flammable objects nearby the furnace.
If you have a fireplace, now is the time to have it cleaned by a chimney sweep. In the spring, if you have not already, you should have a screen on the top of the fireplace to make sure that mother robin does not choose your fireplace for her new home. Store the wood for the fireplace in a dry area and not up against the home, which can cause mold to grow and even invite snakes and rodents to move in.
Check all the doors and windows for cracks, broken or cracked weather stripping, and cracks in the caulking around the windows. While checking all areas it is a good time to remove the screens and replace with your storm windows and doors.
Check the roof and gutters. Look for any damage to the roof, which should be repaired. A large heavy snow on an already damaged roof can be a catastrophe. Clean out the gutters as well.
Check the foundation and crawl spaces. Move all debris and plants from the foundation. If you see, any cracks no matter how small seal the cracks. Mice can find a way into your home through the smallest cracks. If you have crawl spaces under your home, seal them so as not to invite animals to move in under house to stay warm.
Time to change batteries in your smoke detectors. If you do not have smoke detectors, it is time to buy a few and install them in your home. Carbon monoxide detectors are also great preventive measures to have in your home. You should install this device close to your furnace or hot water heater.
Know where your water main is, you may have to turn off the water in case of a pipe bursting. Drain all water hoses and place in storage. Insulate any water pipes that are exposed to the weather this includes air conditioner pipes.
Check for low limbs that may be too close to your home or to electrical wires, trim if necessary. Now is the time to seal such things as decks, driveways, and patios. Bring in all potted plants that cannot handle the cooler temperatures.
Clean, tune-up, and repair any tools and equipment you will not be using in the winter months such as lawnmowers and gardening equipment. Prepare winter tools such as snow shovels, snow blowers, and purchase salt and sand.
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Tax Credit Nearing the End
January 4, 2010
The looming end of the tax credit that has helped so many Tulsa area buyers is a bit scary especially if you look at mortgage applications and the Tulsa housing market. The Mortgage Bankers Association released a report that stated mortgage applications are at a six-month low and rising rates are also cutting into the good news in the refinance market. Rates on the 30-year fixed mortgage hit 5.18% for the week ended January 1, 2010, which is the highest level seen since August 2009.
This along with the expiration of the homebuyer tax credit in just a few months is sure to weaken profits for Bank of America, Wells Fargo, and other lenders across the board.
As the tax credit is due to expire in the spring home buyers may jump back in the market to get a piece of this credit, however, home sales were falling at the end of the year.
NAR chief economist Lawrence Yun stated, “The fact that pending home sales are comfortably above year-ago levels shows the market has gained sufficient momentum on its own,” and went on to say “We expect another surge in the spring as more home buyers take advantage of affordable housing conditions before the tax credit expires.”
Paul Dales, an economist with Capital Economics stated, “Sales are likely to steadily increase again as the contract-signing deadline for the new extended and expanded tax credit as the end of April approaches,” … “That said, the prospect of a flood of bank-held properties hitting the market at some point will remain a lingering concern for some time.”
Some individuals have bought homes and are excited about the tax credit while others that jumped in during the first tax credit in 2008 are not as pleased as they must repay their credit. The tax credit at the end of 2008 was deemed a loan from the government to aid the economy. Shortly after this “loan”, another save the economy “tax credit” occurred in the same amount of $8,000.
We hope this information about the Tulsa home buyers Federal Tax Credit was helpful. For this and addition news or updates on the Tulsa housing market please subscribe to our Tulsa Real Estate Mall Blog RSS Feed.
Tulsa Real Estate Market Conditions
January 3, 2010
If you compare the third quarter of 2009 with the fourth quarter of 2009, you will notice that average Tulsa home sales price remained stable at around $156,400, which was five percent more than, if you compare it to fourth quarter Tulsa home sales price in 2008. Sales volume was down a full three percent when compared to the third quarter of 2009 with 1170 sales. This on the other hand was an increase of seventeen percent when compared to the fourth quarter of 2008. The days homes stayed on the market increased by four percent when compared to third quarter but dropped a huge nine percent when compared to the same time period in 2008.
In Tulsa and the surrounding area, interest rates are at the low level of 5.5 percent. Due to this, many realtors and speculators expect to see more buyers taking advantage of these rates as well as the government tax credit that will be expiring in April.
Tulsa has received national recognition and has a reputation for being one of “America’s Most Livable Communities” in 2004 by Partners for Livable Communities, Washington D.C. and in 2006 was ranked #6 on Forbes.com list if “Best Cities for Jobs.”
Tulsa and the surrounding area are home to many wonderful attractions, family activities, and quality schools that are the main reason that families are seeking homes in the area. Just by glancing around Tulsa you will find an array of things to do including the Tulsa Speedway, golf courses, the Tulsa Zoo, Performing Arts Center, Tulsa Ballet, and the Tulsa Opera to name a few. Then as you look at the education opportunities you will find quality schools offering the tools needed for students to achieve success in all grades from pre-kindergarten through twelfth grades and beyond to universities such as the Oklahoma State University and Oral Roberts University, as examples.
Homes, ranches, farms, condominiums, golf homes, and town homes can be found in Tulsa, Broken Arrow, Bixby, Jenks, Claremore, Catoosa, and Inola. To learn more contact a Tulsa Homes Expert by calling RE/MAX for more information at 877-738-8572.
Fannie Mae & Freddie Mac’s Appraisal Rules
August 26, 2009
Congress is taking a break until after Labor Day, but things are boiling over the Fannie Mae and Freddie Mac’s appraisal rules. The rules of course are very controversial or we would not be talking about Capital Hill.
If it were up to Bipartisan legislation, the Home Valuation Code of Conduct would be put on a shelf and left for 18 months and this idea is actually getting new sponsors, which is not at 54.
The National Association of Realtors is pushing for the Home Valuation Code of Conduct bill in the key congressional representatives’ home district during the recess. The National Association of Realtors is very critical of the Home Valuation Code of Conduct rules with their side stating the rules “produce deal-killing lowball appraisals, encourage the use of low-paid appraisers unfamiliar with local conditions, and have raised the cost of valuations for consumers.”
Along with the National Association of Realtors, appraisers, mortgage brokers, and home builders are also against the rules. The Home Valuation Code of Conduct took effect on May 1.
David Stevens the FHA commissioner recently presented the first public comment from HUD, which was, the FHA account for close to 1/3 of mortgage market volume and does not have any plans to adopt the Home Valuation Code of Conduct. He went on to explain that FHA has its own guidelines and standards that cover appraisers and appraisals. A few weeks later, Stevens did comment that some of the core principles of the guideline were good.
Stevens stated, “We do like the HVCC’s separation of influence in ordering the appraisal from those who financially benefit from the outcome.” He did say that FHA will not use the Home Valuation Code of Conduct but may incorporate some of the principles.
The goal of FHA as stated by Stevens “is to get changes into the marketplace in the near future.” This is a hint that FHA may soon be presently new guidelines on home valuations, which will of course affect realty agents, appraisers, consumers, and lending companies. No details of any of the changes are available at this time.
Labor Day is fast approaching and Capital Hill will be a buzz before long. The bill only has 54 supporters and with all the discord among the politicians, REALTORS, home owners, and lending companies, I doubt if we will see any changes yet, as they will more than likely more on to more pressing issues such as health care.
Showing Your Tulsa Home
September 16, 2008
You may believe that after you have cleaned up the inside and outside of your Tulsa home, you only have to sit back and let the agent show your home. This is not necessarily true if you are still living in the home. You will have to keep your home ready for the agent to show all the time and in some cases; you may only be given a short notice before potential buyers will be in your home. The worst thing you can do is put off potential buyers if you do can avoid it.
The kitchen is one room that must look clean at all times. Do not even leave a few dirty dishes in the sink. Take the time to place them in the dishwasher. Keep your countertops clean as well. If a potential buyer sees dirty dishes, that is a turn off no matter how clean the kitchen might be.
Before the showing, open up the blinds, curtains, and shades. You want your home to look bright and inviting. If the showing is in the evening, then turn on the lights in each room. Be sure that each room has enough for the buyer to see the entire room. Check the light bulbs in the closets as well. If a buyer cannot see into a room or closet, they will not be able to envision their belongings in that area.
If it is warm outside, be sure to have the air conditioner turned on and at a desirable temperature. The same goes for if it is cold outside. You want the buyer to feel comfortable. If you have a fireplace, you could always light it to give them a cozy feel.
Indoor pets should be placed in cages or taken to a friend’s house during the showing. Sorry, to say, but in some cases, the kids should go next door if you cannot get them to sit quietly.
You may not believe this, but if you can be gone while the agent is showing your home, it would be best. A potential buyer may talk to one another about the possibilities of your home, but if you are in the room, they may be afraid to talk to each other due to hurting your feelings.
If you cannot leave, stay in one room of the house, but not in the major areas such as the kitchen, bedrooms, or bathrooms. Stay in the study, family room, basement, or even outside on your patio or front porch. The potential buyers need to be able to walk around the entire house without worrying about hurting your feelings or feeling they are intruding.
Instead of waiting around for the agent to call for a showing and then jumping up to clean and vacuum, do this every day so you are ready for that buyer to walk through your door.
We will work hard to be YOUR Tulsa Real Estate Agent! We are the Tulsa Homes experts and will work hard to find the home of your dreams. Call Toll Free Direct at 1 (877) 738-8572 today.