Real Estate Home Page - The Scoop on Your Area

This is the 2nd in the series of fun cyberspace tips for finding very cool websites with very cool information.

At this great site, you can check on restaurants, shopping, food, health and medical, nightlife, home services and dozens of other things.

You can also get lots of additional information, including reviews, maps, directions and special offers.

And, for those of you with iPhones, there's a special application that displays all of this good information right on your phone screen for most major cities.

Last month over 2 million people found...and shared...information using this resource.

So...go ahead and have some fun! http://www.yelp.com/

Real Estate Home Page - New Action on the $8,000 Tax Credit!

My June 17th post talked about the new $8,000 tax credit for first-time homebuyers. Remember...first time homebuyers are home buyers who have not owned a home in 3 years and meet the income requirements. This is not just for buyers who have never ever owned a home!

Well, the success of the incentive has attracted both legislators and the business community. They like it so much they're pushing to expand the tax credit measure to make it even better. Several bills have been introduced in both the House and Senate lobbying for the expansion.

Here are some key changes being proposed according to USA Today:

<> Increasing the cap from $8,000 to $15,000
<> Extending the tax credit into 2010
<> Making the benefit available to all homebuyers
<> Giving a credit of $3,000 to borrowers who refinance
existing mortgages

This pays keeping an eye on. Stay tuned for emerging developments!

Like more details on the existing tax credit? Check out the following article:

http://www.realtor.org/home_buyers_and_sellers/2009_first_time_home_buyer_tax_credit?lid=ronav0019

(Be sure to check with your tax accountant for information about how the tax credit personally affects you)

Ins and Outs of Real Estate - What are the Advantages of Having a Cash Buyer?

This time, let's look at cash buyers from the perspective of the seller.

Sooo...you have a buyer who is offering cash for your home. Should it make any difference to you? Well, it might...and it might not.

With a cash buyer, you won't have to accept a loan contingency, which requires you to return the buyer's earnest money deposit if they cannot get the loan. Most cash buyers do not ask for a cash contingency, so if the cash "disappears" and the sale falls through, you get to keep the deposit money.

More than likely, the closing can take place sooner because you won't face the delays involved with a loan application, appraisal, credit issues and other loan-related time consumers. Verifying that the buyer actually has the cash takes a lot less time than waiting to see if a loan goes through.

You might be able to give the buyer a better deal, since the entire process is less complex and less time-consuming. If this results in your landing a good sale, it's a win-win for you and the buyer.

Let's say a cash transaction makes it possible for you to have a quicker closing, but the buyer turns out to be unable to close. At least, you haven't had your house off the market as long as if you were waiting for a loan. As a result, costly "downtime" is shorter and you can quickly get your listing back up and running.

Some sellers consider cash from a loan just as attractive as cash from the buyer. As a seller, you can weigh this against the quicker and less complex nature of the cash purchase and choose what best fits your own comfort zone.

There are plusses and minuses to having a cash buyer for your home. I encourage you to discuss these with your real estate agent and attorney before making a commitment!

Ins and Outs of Real Estate-What Are the Advantages of Being a Cash Buyer?

Sooo...you can pay cash for a home...what's the benefit to you for using your cash for a home rather than using it for something else?

(1). You might have more leverage with the seller. "Might" is the operative word...some sellers prefer cash offers because they think a cash offer is stronger. If that's the case with your offer, you might be able to negotiate a better price and terms than your competition, if they need to borrow to buy.

But, a word of caution...it's usually advisable not to presume that, just because you can pay cash, you can lowball your offer and demand unrealistic terms. Many sellers have the viewpoint that money is money, whether it's your own cash or cash from a loan.

(2). If you pay cash, you don't have to bear the rigors of the loan process with all of its paperwork and documentation demands. For some buyers, this is a major advantage, especially with the newly-tightened loan and credit score requirements!

(3). If you pay cash, you won't need an appraisal, unless you want one. However, to avoid overpaying, you might want to go ahead and invest in an appraisal...or, at least ask an experienced real estate agent to do a market value analysis for you.

(4). You won't have a loan contingency...however, for your own protection, you might want to have an attorney draft a "cash contingency" as part of your offer, so that, if your cash situation changes and you are not able to close on the purchase, you can get your earnest money deposit back.

(5). You won't have a monthly mortgage payment hanging over your head. This, of course, must be weighed against the fact that you will also not have the liquid cash at your disposal, should you want or need it for something else.

There are both benefits and drawbacks to purchasing a home with cash. Run your plans by your real estate agent and accountant or attorney before making a commitment!

Next post, we'll view cash buyers from the perspective of the seller.

Ins and Outs of Real Estate - $8,000 "First-Time" Home Buyer Tax Credit (Part 2)

There's more to the Tax Credit than just a tax reduction (see my 6/17 post).

You may apply the incentive funds to increase your down payment from the minimum down payment of 3.5%.

And, that's not all...you may also use it to buy down your interest rate.

There's more...the credit may be employed to apply to closing costs.

Ohhh...by the way, this tax credit does NOT have to be repaid, as have some incentives in the past.

If you qualify, this is a great deal!


(by the way, be sure to consult you accountant about this incentive and how it might apply to you)

Pondering Real Estate Today

Real Estate Dude here...my first blog!

We are in for some fun as we explore all sorts of topics and issues about real estate.

How about the new $8K tax credit for first-time home buyers...or
buying vs. renting...or
do I need a home inspector...or
should we counter on an offer...or
how is a home's market value determined...or
does my roof need replaced...or
how long will my heating and air conditioning system last...or
is our home in a flood hazard area...or
what facts must we disclose when we sell our home...???

You'll probably think of some topics, too.

I'm looking forward to it!