Archive for tag Tax credit
June 21, 2010 at 04:08 PM · Posted under Colleen Kuchta
There has been a lot of talk about the expired Tax Rebates, and current Real Estate conditions. What is happening in the Real Estate Market? Are Buyers writing offers? Do Sellers need to lower their prices? Are the rates still low, or have they gone up?
Talk around the office & in the field shows a general slowing down in activity. Buyers are still visiting Open Houses, but only the serious Buyers - at well priced homes. Many Sellers have come to realize that they are not going to get the amount of money they would like for their property, but even the realistic sellers are not getting the number of showings they would like. Buyers have gotten more demanding since the expiration of the Tax Rebate. In many cases, they want to see every home available that meets their criteria. Once a house has been chosen, they are offering much less than the Seller is asking. If the offer does not get accepted, they are moving on to the next house on their list. Once their offer is accepted, negotiations seem to begin again after the home inspection. Today’s Buyer wants their home to be in tip-top shape before they move in! All gone are the days of “I can fix that myself after we move in”. They know that most Sellers would rather fix the problem, than have to start over looking for a new Buyer, and have to disclose any past issues.
Sellers are being to realize that it is truly a Buyer’s Market. If they don’t know it when they first come on the market, they learn it all too quickly. Lack of showings, or even worse, many showings with negative feedback from Buyers often serve as a strong dose of reality. If the Seller priced the home low enough to compel a Buyer to write an offer, they still run the risk of more concessions after the inspection. In some cases, Sellers simply cannot afford to make another $5,000 in concessions. This would push them underwater, forcing them to arrange the sale with the bank prior to a successful closing. Even the lowest interest rates we have seen in decades are not doing much to persuade Buyers to write offers. Loan officer, Denise Hoernke, states that Wisconsin Mortgage Corporation is offering 4.75% for FHA Mortgages, and 4.625% for a Conventional mortgage. This is great news. Everyone knows that the lower the interest rate, the more house you can afford.
So, where are we at in the Real Estate Market? Let’s recap: Rates are under 5%, prices are incredibly low and Buyers are looking for a deal. All things considered, I would say we are doing our best to recover. When will this recovery finally take place? Only time will tell…One thing is for certain, we are in it for the long haul! The Kuchta’s, Kelly & Colleen.
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Colleen Kuchta
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June 16, 2010 at 02:19 AM · Posted under Lisa Rossetto-Glowacki
Here is a question I’m asked on a daily basis, now that the tax credit has ended:
What will happen to housing demand for the rest of 2010?
This article is from the blog of Steve Harney at Keeping Current Matters.
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Lisa Rossetto
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April 08, 2010 at 04:08 PM · Posted under Colleen Kuchta
If you are playing with the idea of buying a new home, but can’t quite make a decision, maybe this will help you decide. I have 5 great reasons for you to buy now.
- Home Buyer’s Tax Credit - The Federal Government is offering a tax credit of $8,000 to eligible first-time home buyers. There is also a $6,500 tax credit to eligible move-up buyers. The tax credit is available to buyers that have an accepted offer on a property on or before April 30, 2010 and successfully close on that same property on or before June 30,2010. To find out if you qualify for the tax credit go to http://www.federalhousingtaxcredit.com/home.html.
- Low Mortgage Interest Rates - When I checked my rate sheet from Wisconsin Mortgage today, the rates for an FHA Mortgage were 5% and Conventional Mortgage rates were 5.25%. The interest rates are still pretty low considering they are no longer being backed by the Federal Government. Remember, the lower the interest rate - the lower your monthly payment will be!
- Supply & Demand - The number of homes for sale is high. In Real Estate, just like any other market place, when there is an over-supply, then prices are driven down. Low prices, along with low interest rates could mean that your monthly mortgage payment is the same or less than a monthly rent payment.
- Real Estate is Still a Great Long Term Investment - Although prices continue to fall in the current market, the day will come when the value of properties climbs above todays values. In the long run, real estate will offer a great return
on your investment. Even in the past decade, real estate has been a better investment than the stock market.
- A House Becomes Home - There is no better feeling than being able to walk through your front door and know in your heart that you are home.
Whether you own a condo, a modest single family home or a large extravagant home; your house is quickly filled with happy memories and becomes your home - your refuge from the outside world.
Ready to start your journey to purchase your new home? We are here to help! The Kuchta’s, Kelly & Colleen: www.thekuchtas.shorewest.com
Posted by:Colleen Kuchta
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April 01, 2010 at 04:12 PM · Posted under Pat Tasker
College Basketball is not the only FINAL FOUR to have on your minds at this time! THIS IS REAL ESTATES FINAL FOUR WEEKS OF THE TAX CREDIT!
Just in case you have not heard the details, buyers must have a SIGNED, SEALED AND ACCEPTED OFFER by April 30th, in order to qualify for the tax credit. You will then have until June 30th to close. So you have a FINAL FOUR weeks to get out and find a home!
This is one of the best opportunities for buyers to make a purchase, with incredibly low rates, large
inventories of homes, good prices,and motivated sellers, in addition to the $8,000 tax credit (for first time buyers, $6500 for others). Are you going to take advantage of this once in a lifetime market? Years from now, will you be looking back with regrets, wishing you took advantage of this incredible opportunity?
Or will you be bragging to your friends and relatives about the great buy you made? You still have time, call me today!
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Pat Tasker
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March 23, 2010 at 12:05 PM · Posted under Lisa Rossetto-Glowacki
“Grab a tissue, dry your eyes and lower the price”
A recent quote I heard directed towards sellers of real estate.
There is still time to make it all happen–that is, sell your house and get an accepted offer on a new house, before April 30th, in order to take advantage of the tax credit.
All it takes is that tissue!
Posted by:Lisa Rossetto
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February 15, 2010 at 11:29 AM · Posted under Mickey Koch
If you haven’t already heard the $8,000 first time buyer tax credit was extended and a current homeowner tax credit of $6,500 was added. To take advantage of either credit you must have an accepted offer by April 30, 2010 and close no later than June 30, 2010. Ask me for more details to see if you qualify (414.416.0704 or mkoch@shorewest.com).
In addition to the credits, many buyers, first time or thereafter, are realizing that this real estate market is a great opportunity to take advantage of low sale prices and historically low interest rates. Many economic experts are telling us that after the tax credit deadline, we could see interest rates take a sizeable jump higher. Most are predicting at least 6%.
So, what exactly are we getting at here? Well, for starters, the Wisconsin housing market is predicted to return to 2006 pricing levels between 2014 and 2017. That is a long way away. If you have thought about a move between now and then, consider this example:
You are comfortable paying $1300 per month (principle & interest only) on a 30 year mortgage for a new home. Monthly Payment: $1300 @ today’s interest rate of 5.25% = the loan amount of $235,420 or a $244,000 purchase price with 3.5% down.
VS.
Monthly Payment: $1300 @ 6.25% = the loan amount of $211,135 or a $219,000 purchase price with 3.5% down.
Here’s the conclusion: If rates jump up even by 1%, it just lowered the price of the home you can purchase by $25,000!
What if you have a house to sell?
The news is really the same - if you can sell now and you want to move before 2016, now is the time!
Could you make more money on your house if you wait? Possibly, but consider this example:
Sell a $200,000 home in today’s market and buy a home with a loan amount of $250,000 vs. the projected scenario for the same properties in the 2016 market.
TODAY
| Sale Proceeds |
New Loan Amount |
Monthly Payment |
| $0 |
$250,000 |
$1380.51 at 5.25% |
VS.
Waiting until 2016
| Sale Proceeds |
New Loan Amount |
Monthly Payment |
| $15,000 |
$265,000* |
$1631.65 at 6.25% |
*$265,000 using the proceeds of $15,000 from sale of current home to purchase a $280,000 home.
Remember, if your home price increases, so do the prices of the homes you want to buy.
Here’s the conclusion: Even if you wait for your home to increase so you can get more money when you sell to put down on a new one, you will still pay a higher mortgage payment each month because the interest rate will be higher.
We realize that this can be very confusing, but felt that it was really important for all of you to know. We would be happy to talk with you further about your particular situation to see what makes sense for you. Just give us a call at 414.416.0704!
Posted by:
Mickey Koch
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January 13, 2010 at 06:07 PM · Posted under Steve Bauman
First-time home buyers were the engines that drove the Waukesha County real estate market in 2009.
By all accounts, the number of homes sold appears to be stabilizing. However, much of the activity has been in the lower price and can be tied to the $8,000 first-time buyer tax credit.
In 2008, there were 2,933 Waukesha County homes priced above $100,000 sold through MLS. That figure in 2009 was 2,901. That modest 1 percent decline looks awfully good when compared to the 22 percent drop in the number of homes sold between 2007 and 2008.
By all indications the first-time homebuyer credit had a big impact on the Waukesha County marketplace. Sales of homes priced between 100,000 and $199,999 were up a whopping 30 percent in 2009. Sellers in this price range saw more activity with many homes selling quickly at or near the asking price.
That impressive surge was offset by a 42 percent decline for homes priced between $600,000 and $750,000. The drop in activity here can be attributed, in large part, to the lack of transferees in the marketplace.
The 44 sales in this price range in 2009 pales in comparison to the 135 sold in 2007. That’s a two-thirds drop in sales volume in only two years. It would take all the talents of Ken Lay and Bernie Madoff to make those sales numbers look good.
Let’s hope 2010 sees further stabilization and at all price points. If that were to happen, then we could say we are in full recovery.
Posted by:
Steve Bauman
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January 11, 2010 at 09:27 AM · Posted under Pat Tasker
Have you heard the saying “Brown is the new Black” or “50 is the new 40”? Well January/February is the new Spring! At least in Real Estate.
If you are planning on selling this spring, I have news for you! Spring will be a little too late this year. Due to the Tax Credit Extension and Expansion, buyers are already out there hitting the pavement and searching for a new home. They can’t wait until Spring. In order to qualify for the tax credit, you must have an accepted offer by April 30th, 2010 and close within 60 days. Details on this can be found at bit.ly/DontWait4Spring.
So if you are a seller who was planning on selling this spring, you must act now and get your home on the market.
For a free marketing consultation and staging advice, Call Pat Tasker at Shorewest Realtors. This appointment will not only give you pricing advice, but look at ideas on showing your home in the best light. The market today is a cross between a Beauty Contest and a Pricing War. Not only do you have to have the RIGHT price, but it has to look GREAT. I can give you easy steps to take on both counts. Call me today at 262-437-5853
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June 01, 2009 at 04:14 PM · Posted under Colleen Kuchta
As I am sure you are aware, first time home buyers qualify for an $8,000 tax credit if they purchase a new home between January 1, 2009 and December 1, 2009. The credit can be applied to their 2008 return, by filing a simple amendment. What you may not know is this: First time buyers can now use that $8,000 tax credit as their down payment!
The National Association of Realtors has been urging the Federal Housing Administration to allow the down payment option. On Tuesday, May 12, 2009 it was decided that the down 
payment option would be allowed. Many buyers have taken advantage of the $8,000 tax credit, but still others have put off buying a new home because they didn’t have enough money for a down payment. This is great news for buyers using FHA financing, which only requires a 3.5% down payment!
Qualified home buyers will need to use a lender approved by the Federal Housing Association to take advantage of the down payment option. Using an approved lender will allow buyers to have the funds available on the day of closing. Need help finding a qualified lender? We are happy to connect you. The Kuchta’s - Kelly & Colleen 262-894-6512 or ckuchta@shorewest.com 
Final approval for the down payment option was given May 29, 2009. There are 2 ways to use the tax credit as your down payment. The first way is called Secondary Financing; you would secure a loan and a 2nd lien in order to get the money, and use it as your down payment. The second way to use the tax credit as your down payment is called Purchase of Tax Credit. Your lender ‘purchases the tax credit’, and it is used towards your down payment. There are several conditions to be met for each of these options. FHA will also be tracking the monetization activities.
For all the rules or help finding a qualified lender, contact The Kuchta’s - Kelly & Colleen 262-894-6512 or ckuchta@shorewest.com.
Posted by:Colleen Kuchta
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