Archive for the ‘Home Buying Tips’ Category
Fraud Alleged in REO and Short Sales
An accusation of fraud is a serious matter, but some home buyer’s and their agents are accusing the listing agents of bank owned property exactly that.
In a traditional sale, which is a rare event these days, the buyer’s agent presents an offer to the listing agent. The listing agent, in turn, presents the offer to the seller, who can reject, accept or make a counter offer to the buyer.
In contrast, REO (Real Estate Owned by the bank) contract negotiations take place with a bank, lender, or a representative hired to represent the lender. In contrast to a “normal” seller to buyer transaction, neither buyer or agent has the opportunity or ability to meet with the seller. Therefore, the buyer and their agent have no way of knowing whether their offer was actually presented to the lending institution, at all.
So you ask, “Why would a listing agent hide offers from the bank?” The answer is sadly cliche…”follow the money”.
Buyer agents allege that often, listing agents for the banks are also working with their own own buyers. If their buyer’s offer is accepted, the agent is paid two commissions, one as the selling agent, another for listing the property. So, if the listing agent holds back a higher offer in order to leave their client in the number one position, the agent “double dips” and earns double the money.
What can you do? Unfortunately, not much. The bank is unaware that other offers have been presented. Other buyer’s and their agents have no way of knowing if their offers were really presented, either. Usually buyers and agents are just told that their offer was rejected. Only after the closing can they see that their offer was better than the one the bank accepted and that the listing agent was also the selling agent.
If you suspect that you have been a victim of fraud or underhanded dealings, you can try to contact the lender. But, be prepared that most lenders want no contact with the public and even their own fraud departments show little interest in helping “would-be” buyers or their agents. And, as for the “listing agent for the bank”, it is highly unlikely that the of the fraud will suddenly get a change of heart and confess.
Thank you for visiting InfoTube.net. We are here to help you buy and sell property. Please place a Free Home Listing on our Site or Search our Database for Great Deals.
Is it Safe to Buy from Bankrupt Builder?
Dear InfoTube: My husband and I are considering the purchase of a townhome. We found a great unit, much larger than most for the money, but the builder has filed for bankruptcy. Also, the development is not entirely finished and it has a lot of unsold units.
We would like to take advantage of the $8000 tax credit and low interest rates, so we are in a hurry. Should we buy this unit? Your thoughts and expertise would be a big help.
Dear First Time Buyer: You don’t say where you live, but bankrupt builders are common in this market. The fact that the builder is insolvent doesn’t mean that the construction was sub-standard. But, it does mean you won’t have the builder backing up his work. Keep in mind that all warranties for appliances, roofing, flooring, etc. are backed by the manufacturer, not the builder, anyway, then make sure you have a very good home inspection before moving forward.
The issue of the unsold and unfinished development should probably be of more concern to you than construction or inspection problems. There are issues that you need to discuss before considering buying into a paritally vacant, multi-family development.
- How much do you want to live through?? Since the development is unfinished, it could take years before the project is completed. And, you will have to tolerate construction noise and dirt while the work is done.
- How long do you plan to live there? You need to be aware that prices may drop subtantially on the completed unsold units before everything is said and done. This means that you may lose your equity and owe more than the people who buy later for less money. Also, when the remaining new buildings are finished, you will face a lot of competition from new or newer units than the one you own. If you decide to buy here, make sure you can stay until everything is complete and the market has stabilized.
- What about the Homeowners Association? Unsold and vacant units mean that the association will need to cover their expenses. If the development is large and has ammenities such as pools, tennis courts, greenbelt area’s, etc. you may have only a few owners splitting the costs of insurance, maintenance and upkeep. This situation can dramatically raise dues beyond what most people are willing to pay. Verify the financial situation of the HOA and make sure you understand the by-laws before jumping into a situation with no real ceiling on future expenses.
I would offer you one piece of advise for any property you are considering, never buy a home because of tax incentives. Although the $8000 credit is very enticing, make sure you buy a home that is located in a good neighborhood and suits your families needs. Low interest rates, and the tax credit are strong motivators, but make sure you are buying the right home, in the right spot and at the right price.
Thank you for writing to InfoTube.net homes for sale and lease website. I hope I have answered some of your concerns and if you need more information, please let me know.
Bullish Signs for Housing Sales
Although all the news about real estate, housing and lending isn’t particularily bullish, there are some compelling new motivations for buying now. Rising interest rates, Inventory Decreases and the $8000 tax credit which expires December 1.
- Interest rates are soaring, as the dollar falls. Economists predict that the low rates we saw only a month ago, aren’t likely to return anytime soon. In April, 30 year fixed rate mortgages averaged 4.5 percent. Last week, rates hit 4.98 percent. And, this week, Bankrate.com is quoting 30 year fixed rates for prime borrowers at just over 5 percent. Note: An increase of only 1/2 percent in interest rates raises the mortgage payment for a $170,000 loan by $52/month, $624/year or $18,720/over the life of the loan.
- The deadline for qualifying for an $8000 tax credit is rapidly approaching. Although, the December 1st deadline may seem a long way off, in real estate terms it really isn’t. A lot of people are sitting on the sidelines, waiting to see if prices will drop another 1 or 2 percent over the next 6 months. Lenders are already warning us that when all those buyers rush into the market in August or September, the backlog in loan applications will mean a wait of 60-90 days to close an average loan. Note: Given that the average buyer in this market looks at over 30 homes, over a 3 month period, buyers who don’t want to miss the boat on their $8000 gift, should get serious now.
For those buyer’s hoping to time the market perfectly, we think their ship may be sailing by. Home inventories are dropping, prices are stabilizing, interest rate increases erase potential gains made by a further fall in prices and $8 grand is on the line, if the December 1 closing deadline can’t be met. Serious buyer’s should jump on board now, before they find out that the ship has sailed and they missed the boat!!
Thank you for visiting InfoTube.net homes for sale or rent website. Sellers can place a free property listing, download legal forms, print brochures and more. Buyer’s can search for great deals on property from the privacy of their own homes and benefit from dealing directly with the owner or builder. Check advantage of FREE today!!!
Priced Reduced. Who Cares? No One!
PRICE REDUCED. JUST REDUCED. PRICE DROP. PRICE SLASHED. These are the Signs of the Times, but why? Who cares, really?
Although, Realtors love the phrase and evidentally believe it to be a powerful message, PRICE REDUCED, means only one thing…the listing was overpriced. It doesn’t mean it still isn’t.
So, why do Realtors hang banners advertising that a price has been dropped? Do they believe that buyers care that an asking price was reduced from $250,000 to $200,000, if comparable homes in the neighborhood are priced at $175,000?
Maybe, the hoopla is all about the agents themselves. Maybe, it is a secret way of gloating to one another that they finally got their unrealistic seller to drop their price. Woo Hoo, We Were Right.
In any case, I find signs with swinging distress messages very unmotivating, somewhat negative and kind of sad. They are the antithesis of salesmanship. And, when I see these type of signs, my mind immediately conjures images of a stale listing, a probably dated interior, repair issues and a difficult seller.
In my opinion, a good salesperson, who works on behalf of the seller, would post signs that gave buyers important, exciting news about the property. “Seller Financing”, “Zero Down”, “Lowest Price in Area”, ”Free Appliances” or “Special Financing. Positive messages, such as these, are informative and helpful to buyer and seller, alike.
Before Realtor’s spends any more of their hard earned money on negative messages, or homeowner’s allow another one to be posted, I hope they stop and ask themselves, “Why are we doing this and Who really cares???
Thank you for visiting InfoTube.net. We have been helping buyers and sellers for 20 years and we are here to help you sell and market your home. Please visit our site to post a Free Property Listing or Search for Great Deals from the Privacy of Your Home.
What to do if Appraisal Comes in Below Sales Price
Finally, the house is under contract. The inspections are done. Repairs have been negotiated. Everyone is ready to move…then, the buyer’s appraisal comes in below the agreed upon sales price.
Don’t Panic. It’s Not the End of the World. Read this helpful article about how to keep the deal alive.
Thank you for visiting InfoTube.net homes for sale and rent website. Place a Free Property Listing or Search our database for great deals found no where else on the web.
Facts about the 2009 Housing Crisis
With all the housing and finance related news these days, it is hard to stay focused on where the real problems are and what specific issues affect the real estate market.
Today, we outline the issues and target in on facts about the specific problems in housing and real estate in the U.S.
- Real estate markets are Local: The University of Virginia studied foreclosures in all 50 states; 35 metro area’s and 236 counties. They found that 85 percent of the lost value in homes occured in only 4 states – Arizona, California, Florida and Nevada.
- Nevada, California, Arizona and Florida rank 1,2,3 and 4 in all foreclosure activity. Combined together, these 4 states account for 55 percent of all foreclosures in the U.S.
- The 4 sunbelt states, representing 55 percent of all foreclosed property, were also the playing grounds of investors, second home buyer’s and “flippers” who rode the out the bubble in search of riches.
- 19 million homes are now vacant in the United States.
- Lenders forecast another 2.5 million home foreclosures before the end of the year.
- The average value of a home today has fallen to less than $170,000, which is now well within the budget of the majority of workers in the country. At the top of the bubble, the average home price in the US was $220,000, and hit $300,000 in California.
- Uptrends: Home sales have increased dramatically in California and Nevada in recent months. Discounts of 50 percent or more are bringing the inventory of unsold homes to their lowest levels since the crash began.
Thank you for visiting InfoTube.net homes for sale and rent website. Users can take advantage of a variety of services, (flat fee MLS and Realtor.com) for buyers and sellers. Free services at InfoTube.net include home searches including video tours and multiple photo’s; free legal forms and contracts; real estate buying and selling tips; community question and answer forum; no buyer registration; no pop ups or dead links; google mapping and more.
Warren Buffett Says Inflation is Coming.
In the annual Berkshire Hathaway shareholder’s meeting, Warren Buffett, the oracle of Omaha, predicted that inflation will hit the US economy due to the financial crisis. Buffett told shareholders, “I haven’t had my taxes raised. My guess is the ultimate price will be paid by a shrinkage of the value of the dollar”.
If Warren is right, and he usually is, the average person can use his wisdom to profit with a smart real estate investment.
- To invest safely, a home buyer should put 20 percent down and take out a 30 year fixed rate mortgage, locking in an interest rate around 4.5 percent. If you haven’t owned a home over the past 3 years, you can cash in immediately with the $8000 tax credit. When inflation hits, your mortgage costs will remain the same, as your salary increases. This means that you have even more money to save and invest later on.
- If you are currently renting, there is another compelling reason to invest. During periods of inflation, rents will rise. If you don’t own a home, your monthly rent obiligations will soar.
- Another reason to invest in real estate is that during times of inflation, home prices appreciate, if even at a slower pace. History shows that during inflationary periods, real estate appreciation tends to beat inflation by 2-3 percentage points.
- Leveraged assets, such as real estate, outperform other asset classes. Leverage magnifies gains because as your income rises, your debt payments will not. You’ll be able to pay off the mortgage with money that is worth less than it was when you borrowed it.
- With home prices and interest rates hovering at historic lows, now may be the perfect time for investor’s to withdraw the cash they have sitting in savings accounts that is paying only a 2-3percent and buy a piece of property. If you buy a property where the tenant covers the expenses and costs of ownership, then the investor can relax and wait for inflation to move up rents and home prices.
InfoTube.net and Warren Buffett agree that inflation, over the next 5 years, is a sure bet. And, when we get rampant inflation, real estate is the perfect hedge. Throw in low prices, cheap money, ridiculously low returns on cash investments and thousands of dollars in tax savings, and you have a powerful case for buying a home now.
Thank you for visiting InfoTube.net. Seller’s can place a Free Property listing on the site or add an MLS listing to their by owner strategy with the click of a button. Bonus: Buyer’s can search for thousand’s of homes in complete privacy. We do not sell or distribute user information and there are no pop up’s or dead links anywhere on our site.
Inspect Home Before the Sale
In yesterday’s InfoTube blog post, we discussed surprises that can arise from a problematic inspection report and ways to negotiate with the buyer to keep the deal alive. Today, we look at pre-home inspections from an offensive position, in hopes seller’s can avoid a “repair request” crisis, after the home is finally under contract.
Reasons to have a Home Inspection before the Sale.
- 1. Pre-Inspections are a Great Selling Point. Providing a Pre-inspection report puts the buyer at ease and gives them confidence that the seller has nothing to hide about the home or its condition. By being upfront, sellers put the Buyer at ease so they can better vizualize themselves living in the home, versus searching for problems at every turn.
- Pre-Inspections Give the Seller a Head’s Up. A home inspection gives sellers the opportunity to fix any necessary repairs and put the house in better condition before the sale. By pre-inspecting, the seller can also address unknown problems with the property that might have resulted in a canceled sale, if a timid or scared buyer discovered them first.
- An Good Offense Beats a Good Defense. When the buyer sends in their inspection team, they may be looking to save money. Often, a bargain shopper will use the inspection report to get a better deal on the house by inflating the costs of repairs or threatening to cancel the contract, if they don’t get their way. By providing a licensed inspection report upfront, sellers deter ‘would be’ re-negotiator’s and increase the chances of a smooth transaction.
- Show and Tell. Ask your home inspector for several copies of your inspection report. Hand the reports out to prospective buyer’s, when they tour the home. The report reflects pride of ownership and handing the report to the buyer keeps your home in the buyer’s mind for a much longer period of time. (The inspector shouldn’t mind the request because it is good for the inspector, too. His name and contact number on is on the report. Even if the buyer doesn’t buy your house, they might call him for their own inspection.)
- Beat the Competition. Buyer’s have heard horror stories about victims who have purchased a money pit and found themselves living in a nightmare of endless bills, contractor’s and life interupting problems. Set your home apart from the foreclosures, short sales and poorly maintained homes on the market and reassure the buyer that your home is a hassel-free home they can be proud to call their own.
In conclusion, while it’s sometimes tempting to cut corners to save money, a home inspection is a worthwhile investment. A pre-inspection lessens the chance of buyer’s remorse, reduces the chance of a surprise or scare, and frequently keeps a deal from falling apart altogether. In today’s buyer’s market, the best defense is a great offense.
Thank you for visiting InfoTube.net homes for sale or rent website. Seller’s can place Free Property Listings and Buyer’s can Search for great deals on Real Estate. If you are a seller, ask us about an MLS listing with uploads to Realtor.com, Zillow, Trulia, Yahoo, MSN, Google and More for $399.
Negotiate a Bad Home Inspection Report.
You thought your home was in good condition, but surprise… the home inspector says otherwise. You have already reduced the house to a rock bottom price to get a sale. This is the first offer you’ve had in months or ever. What can you do to save the deal or should you???
Stay Calm. Don’t Freak Out.
In slow markets, seller’s have every reason to panic when they learn about inspection problems. First, they have no idea how the buyer will react to the report. If the report is really bad, they know it is likely that the buyer will back out of the deal. In the best case scenario, they know that more rounds of negotiations and repair requests lists are back in play. Uncertainity, helplessness and frustration make it easy to freak out, but it is crucial that seller’s stay focused and remain calm.
The first thing the seller must do when they hear about a problem is to keep quiet. They should resist the natural urge to curse the inspector and they should say absolutely nothing, until the buyer presents a request for repairs. Some buyer’s aren’t surprised at all that a home might need some repairs. Also, they may not view the repairs as negatively as the seller does. Best advise is to not borrow trouble. Wait for the report, before jumping to conclusions.
Keep Your Head. Negotiate.
The good news is that if you receive a repair request list, the buyer didn’t walk and they are still interested in the purchase. Plan to review and discuss the list with an open mind. Chat with your Realtor, if you are using one. Talk the situation over with a repair professional. Get bids on big ticket items, before you go back to the buyer, or you agree/disagree to anything on the list.
Many times, seller’s find that they can get repairs done for less than they think. Or, sometimes, the seller can make the repair themselves. If cash flow is a problem, many contractors will agree to wait until the closing to be paid. The goal is to create a win-win atmosphere and don’t hate the messenger, no matter how bad the news is initially.
Reassure the Buyer. Stay Focused on Closing the Deal.
Reassure the buyer that you want to fix any major issues with the house. Get multiple bids from legitimate contractor’s for major repairs. Multiple bids are powerful because many times the buyer (especially the first time buyer) is scared about the costs of future problems, so they increase the numbers a bit. Sometimes, after the see that the repair isn’t urgent or may not be as expensive as they thought, the buyer will relax a bit, setting the stage for better negotiations.
Remember that everything about repair requests is negotiable and the options are endless. The seller can fix all the items on the list, they can agree to fix any real problems and ignore cosmetic issues, they can offer the buyer a cash credit at closing, reduce the sales price, or do absolutely nothing at all, depending on the value of the contract and what they can afford to do.
In Conclusion.
If you receive a bad home inspection, please remain calm and cool headed. Focus on a win-win compromise with the buyer. And, gather all the facts and figures before commenting, if you want to keep the deal alive. In the long run, honest communication is always key and addressing the problems eliminates the likelihood of lawsuits later.
Thank you for visiting InfoTube.net. The website where Seller’s can place a Free for Sale or Rent Property Listing and post their property on the MLS and Realtor.com. And, buyer’s can search for thousands of great properties with ease and privacy.
Buyers Learn It is Often Impossible to Buy a Foreclosure
As bargain hunters everywhere turn their attention to foreclosures, many buyers discover that for all the hype, the homes can not be purchased. Banks are so overwhelmed by the sheer numbers of REO (Real Estate Owned) properties, that they hold up sales and leave buyers stuck with thousands of dollars in extra costs.
Distressed properties now make up 25 percent of all homes for sale. Many foreclosed homes have been vandalized, neglected and cause a blight on otherwise good neighborhoods. Selling these properties would help stabilize house prices and remove inventory from the market, but the banks simply can’t keep up with the paperwork.
Take the case of the Collins family, who in January, rushed to buy a foreclosure on a picuresque, tree lined street in southern California. They immediately obtained their financing, paid for inspections, appraisals and completed other paperwork the lender required from them. It is now mid-April and the Collins family finds themselves still sitting in limbo. They have yet to receive confirmation of a closing date or signed paperwork.
While common sense tells us that the housing market can not recover until the foreclosures are sold, the reality is that the banks can not keep up with the paperwork required to transfer the property. There are a lot of layers and people, with varying degree’s of work ethic, that are involved with the sale of any bank owned property. Further frustrating to “would be” buyers, is that they can’t just call the bank and ask what is going on. There is no one to ask for help, as there is when buying from a real owner.
As the nation’s banks anticipate owning another 1.5 million foreclosed homes in 2009, things will likely get worse in terms of getting rid of them quickly. Maybe outraged buyers, and the neighbors who tolerate these blights on our communities, should all cry out to their congressmen for help. Perhaps, they can force the banks to step up their management of foreclosed homes, and force the agents and servicers to do their jobs.
Thank for you for visiting InfoTube.net. If you need an InfoTube or InfoBox for your “for sale sign”, we are the manufacturer and we do it all in the USA. Please feel free to shop on our site, place a Free Property Listing or Search our database for thousands of great homes for sale or rent. We also provide MLS listings for “by owners” for a one-time fee of $399.
Sales of Second Homes Drop, but Find Out Who Bought and Where
According to the National Association of Realtors (NAR), the number of people who purchased a vacation or investment home fell by 30 percent last year. And, more than 40 percent of those who did purchase a second home paid cash.
“We expected vacation home sales to fall given the impact of a declining economy”, said Lawrence Yun, chief economist for the NAR. “A steady share of investment-home sales results from buyers taking advantage of deeply discounted prices in many areas, with a smaller portion of new homes in the sales mix”, state Yun.
Vacation and second home sales mirrored the sales for primary residences in terms of price declines. The median price of a vacation home dropped to $150,000 in 2008, down from $195,000 (or, 23 percent) from 2007 levels.
Other Findings from the March Survey are:
- Who was the “Average Buyer” of Vacation Property in 2008? The average age of a vacation home buyer was 46 years old. They purchased a property that was generally 316 miles from their primary residence. Their median household income was $97,200.
- Who was the “Average Investment Home Buyer in 2008? The average age of an investment buyer was 47. They earned a median income of about $85,000 and purchased investment property nearby their primary residence. The median distance for an investment purchase was 19 miles from their home.
- What type of Property was purchased for a Vacation Home? 70 percent were detached, single family residences; 18 percent were condo’s; 5 percent town or row houses; 7 percent other.
- Types of Property Purchased for Investment: 64 percent were detached single family homes; 22 percent condos; 8 percent town or row houses; 6 percent other.
- Where did Vacation Home Buyers Shop? 26 percent bought in small towns; 23 percent rural areas; 23 percent resorts; 20 percent suburbs; 8 percent cities or urban areas.
- Where did Investment Buyers Shop? 28 percent purchased in the suburbs; 20 percent in a city or urban area; 23 percent rural area; 8 percent in a small town; 6 percent in resort areas.
Hopefully, the survey results will help home sellers picture who the likely buyer of their vacation or investment property may be. Picturing who the customer is likely to be is important when target marketing to their needs.
Please visit InfoTube.net to place a FREE property listing, or search our database for thousands of great deals on homes of all types. Thanks for visiting and let us know if you have any questions or comments in the space below.
More Home Buyer’s Find Property via the Internet
According to a report by the National Association of Realtors, 32 percent (1/3 of all buyers) of home buyers first saw the home they purchased on the internet. Buyer’s who found their home through a real estate agent dropped 14 percentage points to 34 percent, during the same time period.
Despite the slowdown in the housing market, buyers and sellers have increased their use of the internet when buying or selling a home. “The internet is a very important tool in today’s real estate market”, said Tommi Crow, CEO of Crow Erickson, Inc., the company that manufactures the InfoTubes and InfoBoxes found on real estate signs from coast-to-coast. “Home sellers know that they can use the power of the internet to reach millions of home shoppers as effectively as a real estate agent would”, said Crow, and, they can save themselves thousands of dollars in the process”, said Ms Crow. “Americans are successfully buying and selling real estate without using agents, and that trend continues to grow”.
Home seller’s who want to maximize their online exposure use InfoTube.net, combined with the services of Why 6 Percent. The combination of the two marketing programs provide home seller’s with a home listing on their local MLS, Realtor.com, Google, Yahoo, MSN, Craigslist, Zillow, Trulia, Infotube, Homes for Sale Live and other major web portals, which attract millions of home buyers each month.
|
Where a Home Buyer Found the Home Purchased* |
||||
|
2001 vs. 2008 |
||||
|
Source |
2001 | 2008 | ||
| Real Estate Agent | 48% | 34% | ||
| Internet | 8% | 32% | ||
| Yard Sign | 15% | 15% | ||
| Friend, Relative or Neighbor | 8% | 7% | ||
| Home Builder or their Agent | 3% | 7% | ||
| Print Newspaper Ad | 7% | 3% | ||
| Directly from Sellers / Knew the Sellers | 4% | 2% | ||
| Home Book or Magazine | 2% | 1% | ||
| Other | 3% | N/A | ||
* Source: National Association of Realtors
Thank you for visiting InfoTube.net. Sellers can place a Free Home Listing on InfoTube.net, which advertises their property listings to tens of thousands of home buyers each month.
Interest Rates, Home Prices, Tax Incentives Move Buyers Off the Fence
People who are gainfully employed, with solid credit, and have a down payment can buy a lot more house these days, thanks to record low interest rates and home prices.
The average interest rate for a 30 year fixed-rate mortgage fell to 4.79 percent on Wednesday, after the Fed announced that it would begin buying up bonds and mortgage-backed securities.
The real estate market has recently seen a pick up in activity due to the $8000 tax credit for first-time buyers. And, the huge drop in lending rates yesterday, put a huge layer of icing on the cake for home seller’s. When people, who can qualify for a loan to buy a home, see the combination of tax incentives, low interest rates and dramatic price drops, the ones that are sitting on the fence, jump in and buy. Urgency to buy and refinance is also important when rates fall this low, as often the drop is temporary, as it was in January 2009.
The convergence of ecomonic stimulus does benefit some Americans more than others, however. People who do not have a down payment or good credit are less likely to benefit from the postive news, as are the 14 million Americans who are upside down (owe more on their home than it is worth) or face foreclosure. More than 13,000 struggling homeowner’s are calling the Homeownership Perservation Foundation each day. The hotline for help number is 1-888-995-HOPE.
Thank you for visiting InfoTube. net homes for sale website. Spring is here. Rates are Low. House Prices are Fantastic. Tax Incentives Abound. Buyers, Get off the Fence and Lock in the Deal of Your Lifetime. The fact is you have to live somewhere, and if renting was so great, ask yourself why your landlord owns??
Tax Perks and Tips for Homeowners and Buyers
Tax Perks of Homeownership
-
100 percent of the mortgage interest you pay is tax deductible, which can add thousands of dollars to your bottom line each year. Click Here to FIND OUT HOW MUCH YOU CAN DEDUCT, if you own a home.
-
Property taxes (real estate taxes) paid to state and local governments are 100 percent deductible on your federal income tax return.
-
Up to $500,000 ($250,000 for singles) in profit is tax free when you sell your home.
2009 Housing Stimulus Increases Tax Savings of Ownership
-
Deduct $8000 from Your Tax Bill. To qualify for the $8000 tax savings you must be a first-time (have not owned in the last 3 years)homebuyer earning less than $150,000 (married, filing jointly) per year. You must live in the home for 3 years after purchase.
-
Go Green and Take a $1500 Tax Credit. The requirements for energy tax credits have eased. Take advantage of a $1500 Tax Credit for home improvements such as energy-efficient windows, doors, insulation, appliances and mechanical systems.
-
Save 30 percent on Alternative Energy for your Home. Earn a 30 percent tax credit for each dollar spent on things like solar heating, heat pumps or fuel cells.
-
Save up to $2 million on foreclosures and short sales. Taxpayers get a free pass on mortgage debt forgiveness until 2012. Filers can exclude up to $2 million in forgiven mortgage debt, where the home sold for less than the amount owed on the loan.
Owning a home certainly has its privileges, both emotional and financial. And, real estate is still the granddaddy of tax deductions. Buy a home and save thousands of dollars, or rent and pay thousands to Uncle Sam. If in doubt, ask your landlord why they own???
Thank you for visiting InfoTube.net homes for sale website. Place a Free Property Listing or Search our Database for Thousands of Homes for Sale.
Home Inspection Finds Roof was Improperly Installed.
Dear InfoTube,
We are under contract to purchase a brand new home that is ideal for our family. Unfortunately, the home inspection revealed that the brand, new roof was improperly installed. It seems that the builder did not use felt, drip edge or flashing before he installed the shingles. The shingles were nailed directly to the plywood decking. The inspector also noted that many of the nails were set too deeply, which caused depressions into the asphalt material and would likely cause roof leaks.
After discussing our findings with the builder, he admitted that he knew about the missing roof materials, but he refused to replace the new roof due to the cost. The builder insists that the missing materials are unessential and pose no problem for us. He also gave us his personal guarantee that he would fix any problems that might come up in the future, if we would go ahead with the purchase.
We are now faced with a huge dilemma. First of all, we love the location, floorplan and lot. The house is just perfect for our needs. Secondly, we have invested nearly $1500 for the inspection, appraisal, loan application fee, etc., which we would lose if we back out of the sale. We would really appreciate your input about this situation. We love the house, but the roof problem scares us, even with the builder’s promises. We are scheduled to close and move in a couple of weeks. Please give us your opinion about what we should do.
Thank you, T Thornton, NC
Dear T Thornton,
Let me reassure you that drip edge, felt and flashing are essential parts of a roof system and improper installation voids any manufacturer’s warranty. Furthermore, it is very unlikely that your lender would give you a loan for this property, once they discovered the problem.
Secondly, I found myself asking“What kind of seller would “cheat” on a new roof and what else is he hiding?” A new roof is a strange thing for a builder to cheat on. The roof is a basic structural system of a home. In addition, it is huge and highly visable to the eye. It is very concerning, to say the least, that the seller knew about this problem and lied to cover it up. One has to wonder what else has he cheated on and lied about, that might not be as easy to see as the short cuts he took on the roof?
This situation poses a serious problem for you, the lender and the seller on many levels. First, the builder’s non-disclosure of the known problem with the roof could likely be considered fraud. Secondly, his guarantee to fix future problems is unenforcable in a court of law. Contracts for the “promise” of future services, which is what this seller offered you, is illegal in all 50 states. Think about it. If this seller becomes disabled, leaves the area, goes broke, dies, etc., how could he possibly honor his promise to you, even if he wanted to?
My honest opinion is that you should RUN, not walk, from this deal. Instead of being disappointed, you should be very thankful that you had a good home inspection that revealed the truth before you closed. The good news is that the inventory of unsold homes are at historical high levels. This means you should find plenty of homes, owned by honest sellers, that suit your families needs. Given the seller’s blatant dishonesty, you should insist that the builder refund your earnest money, buy your appraisal and reimburse you for the inspection report. If he hesitates or refuses to do so, you should consult an attorney, immediately.
If you have your heart set on buying this home, you should know that you are taking a big chance. At the very least, you should at insist that the builder install a new roof. You are paying a premium to buy a new home, so you should receive a new roof, not one with known problems. You should also insist that the builder transfer all manufacturer’s warranties for the roof, and all other systems in the house, to you at closing.
Thank you for writing to InfoTube.net. I hope everything works out for you, but I seriously hope you walk away from this one. Everything about this home may appear pretty on the outside, but one would be foolish to not fear what kind of ugliness may be lurking beneath the surface.