A New Decade

As 2009 segues into 2010, we reflect on the past decade - was it really 10 years ago that we worried about the Y2K Bug? - and look forward to what the new decade holds.

For me, personally, the decade which began with Y2K brought a challenging and rewarding new career, and quite literally changed my life from one in which I went to work to one in which work is no longer "work," but pleasure. Being a Realtor has brought new friends, new challenges, and new rewards. For the most part, it has been the most pleasant part of my life, to date.

No doubt, 2010 will bring new challenges, new friends, and new rewards. Interest rates are predicted to rise (which makes home buying now a prudent decision), and in April, 2010, the tax credits for first time home buyers and some home buyers moving from existing homes will expire, which will definitely impact the real estate market. Even so, I expect that 2010 and the years following it will offer new goals, new rewards, and a host of new experiences to make life interesting and rewarding.

For those of you with whom I've worked during this past decade, thank you for your patronage, and for your friendship. Please remember that referrals from you are what keep me at the top of the success ladder, and I thank you for them.

And to those of you I'm yet to meet, thank you for taking the time to read my blog, which contains information about home buying and selling, with updates on market conditions; I'm looking forward to meeting and hopefully working with you during this new decade.

Happy New Year, everyone!

Time Is Of The Essence!

The November 30th deadline to take advantage of the First Time Home Buyer's $8,000 tax credit is fast approaching. These days, it takes approximately 45 days to get a loan closed, and to qualify for the tax credit, your loan must close by November 30th, 2009. With super-low interest rates and a tax credit yours for the taking, now is the time to buy!

House Hunting Made Easy!

If you want to make life easier for yourself when you go house hunting, here are some easy-to-follow tips:
BEFORE YOU MEET WITH AN AGENT:

• Make a list of "must haves." This can include a geographic area or neighborhood, square footage, number of bedrooms/baths, proximity to work, and/or school districts you prefer
• Get pre-approved! Call a mortgage broker or bank to get a pre-approval letter; offers accompanied by a pre-approval letter are viewed more seriously be sellers and their agents. This also lets you know what you can best afford, and what your monthly payments are likely to be
• Make a list of "It would be nice to have" items. Bear in mind that a house which meets 99% of the "must have" items is great to find; including a few "nice to have" items is what the French call "lagniappe" - something a little extra
• Surf the MLS on the net! Narrow your possibilities by looking at active listings on the internet; most sites offer all the MLS listings available on the internet - they just stick their own logo on them so you'll call the agency through which you're browsing, rather than the listing agency. You can find all homes currently listed through our MLS system's internet listing service by using my site: http://www.justaskallen.com/ It isn't necessary to browse more than one site; what's on one is most often on all of them
• Use the Virtual Tours when they're available! Why not do a "walk-through" of a house before ever having to drive out to see it?
• Be flexible; if you make too many demands in what your "idea" home will have, you are likely to be house hunting for a long time, and not overly satisfied with your final decision
• Work with an agent in whom you have confidence, and trust that they know they local market. Remember that their advice is generally based on prior experience in that market. Also remember that your agent works for you; his or her goal is to help you make the best deal on the property which best works for you.

Staging Your Home For A Quick Sale

Elsewhere in this blog, there are tips on how to prepare your home for sale. Here, though, let's talk about "staging" the house....making it more appealing to buyers. Why stage the house? Simple...a cluttered house full of personal items distracts potential buyers - it makes it harder for them to see how they can personalize the house. Unclutter, unclutter, unclutter! Take the personal photos down, pull the graduation announcements off the refrigerator (along with the magnets!), and take a critical look at your house.

WHY STAGE?
How we live in our house and how we sell it are two different things. To compete with other similar listings, your house must stand out. People must be able to see how the house would "live" yet they need to visualize their own things in it. Which seems a contradiction, perhaps, but the answer is easy...keep things simple, but with a bit of pizazz.

Will an empty house show better than a staged one? Not necessarily. While it isn't advisable to have too much in a house to show it, a bit of warmth here and there never hurts, and sometimes furniture can actually better show the scale of a room. Recently, a client looked at a builder's spec house which was empty and said "Nope, not for us." A week later, I had occasion to go back and saw that the house had been staged. I cajoled them into going back (since the house met all their requirements) and their reaction was totally different. They bought the house - and wanted to buy the builder's staging items (the builder graciously supplied them with the sources for all the items, although she declined to sell her staging accessories)

Staging need not be a "big" thing. Sometimes a bit of furniture (minimal) can help define a room. Sometimes it's just a few items to add warmth and color (a painting propped up on the mantel, a vase of flowers, some towels in a bathroom, a lamp, etc.)

STEPS TO STAGE A ROOM:
1. Stand and try to see what a potential buyer would see. What's the first impression they would have? Do you want to go into the room and take a look? The room should literally invite you in.
2. What's the purpose of the room?
3. Decide what furniture, if any, should stay in the room; remove what isn't necessary
4. If need be, rearrange the furniture to present the room in a more favorable light (take out furniture, turn the arrangement at an angle to break the severity of the space, etc.)
5. Take out an over-abundance of accessories; keeping counter tops and table tops uncluttered gives a clean look to a house, yet the accessories which remain add warmth to the room
6. Stand in the doorway. Look at the room now that you've made changes. Is it more inviting? If so, you've accomplished your goal!

Selling Your House? Some tips for you!

Today's market is very competitive; although we in Acadiana are fortunate in having high employment and strong home sales, the market has changed in recent months. So being aware of what you're marketing and how it should be marketed is even more important than ever.

Even though there's more room for negotiation these days, and people are being more adamant about getting concessions, homes are selling well. Still, there are some traps you'll want to avoid:
1. Try not to be emotionally attached to your home. While it may be your palace, to others it's yet another home for sale. Be realistic about your house...it may be lovely, it may have great features, but it IS another home for sale.
2. Don't price your home without knowing the competition. Nothing stops a house from being shown more than price. Even the greatest location is no guarantee that your property will sell, if it's over-priced. And bear in mind that appraisers must work with comparables - recent sales within the last six months. If your home is over-priced, it may languish on the market, and give the impression that you're vulnerable to low-ball offers because you must be getting desperate to sell.
3. Check your agent's references. Does he or she have a good track record with pricing and marketing properties? Do you know others who have used this agent successfully? Your home is one of your major assets - put it in the hands of someone who will treat it as such.
4. Don't fail to prep your property! A house with peeling paint, rotten facia, or out of control shrubs is a turn-off to potential buyers. Most buyers these days want move-in condition - they don't even want to paint a room, much less do major repairs. A house which isn't in good condition is vulnerable to low offers.
5. Do NOT be present during showings! Your presence is a turn-off to potential buyers - it makes them uncomfortable to think they're inconveniencing you by looking at their house. Also, your presence makes you open to having to answer questions about the house which would be better left to your agent; even the most innocent comment can send off alarm bells in a buyer's mind, if they interpret it incorrectly. Let them bond with the house by giving them the privacy to spend time there.
6. Don't take the negotiations personally. It's business, pure and simple. Instead of being insulted by a low offer, just make a counter-offer. Never cut off the negotiations. Keep the posibilities open and your home stands a much better chance of selling.

About that curb appeal....

Thinking of putting your house on the market? Have you considered how others see it for the first time? You should - curb appeal can make or break a potential buyer's decision to view a particular property.

To insure that you see your house the way others see it, take the Curb Appeal Test. Walk across the street, then look objectively at what your home looks like from that vantage point. Then ask yourself a few questions:
1. Are the gutters clean and in good repair?
2. How does the driveway look?
3. Do the shrubs need pruning, or the trees need trimming?
4. How do the flower beds look?
5. How inviting is the walkway leading to your house?
6. Does the lawn look clean, neat and trimmed?
7. Is the lawn uncluttered, or are there toys, hoses and tools lying about?
8. How visible are the house numbers? Can Buyers even FIND your house?

Here are some ways to improve the Curb Appeal:
1. Clean the outside - pressure wash, if necessary - including shutters
2. Clean the gutters
3. Remove and replace dead plants; add fresh mulch
4. Prune overgrown shrubs
5. Update your house numbers with more stylish ones
6. Mailbox looking shabby? Paint it!
7. Replace dated exterior light fixtures with new ones
8. Put away garden tools, hoses, toys, etc.
9. Create an outdoor living room for Buyers with porch furniture
10. Add color to your beds. Red makes things pop and says "Welcome!"

First Time Home Buyer's Tax Crdit

In 2008, Congress enacted a $7500 tax credit designed to be an incentive for first‐time homebuyers to purchase a home. The credit was designed as a mechanism to decrease the over‐supply of homes for sale.

For 2009, Congress has increased the credit to $8000 and made several additional improvements. This revised $8000 tax credit applies to purchases on or after January 1, 2009 and before December 1, 2009.


Tax Credits ‐‐ The Basics


1. What’s this new homebuyer tax incentive for 2009?

The 2008 $7500, repayable credit is increased to $8000 and the repayment feature is eliminated for 2009 purchasers. Any home that is purchased for $80,000 or more qualifies for the full $8000 amount. If the house costs less than $80,000, the credit will be 10% of the cost. Thus, if an individual purchased a home for $75,000, the credit would be $7500. It is available for the purchase of a principal residence
on or after January 1, 2009 and before December 1, 2009.

2. Who is eligible?

Only first‐time homebuyers are eligible. A person is considered a first‐time buyer if he/she has not had any ownership interest in a home in the three years previous to the day of the 2009 purchase.

3. How does a tax credit work?

Every dollar of a tax credit reduces income taxes by a dollar. Credits are claimed on an individual’s income tax return. Thus, a qualified purchaser would figure out all the income items and exemptions and make all the calculations required to figure out his/her total tax due. Then, once the total tax owed has been computed, tax credits are applied to reduce the total tax bill. So, if before taking any credits
on a tax return a person has total tax liability of $9500, an $8000 credit would wipe out all but $1500 of the tax due. ($9,500 ‐ $8000 = $1500)

4. So what happens if the purchaser is eligible for an $8000 credit but their entire income tax liability for the year is only $6000?

This tax credit is what’s called “refundable” credit. Thus, if the eligible purchaser’s total tax liability was $6000, the IRS would send the purchaser a check for $2000. The refundable amount is the difference between $8000 credit amount and the amount of tax liability. ($8000 ‐ $6000 = $2000) Most taxpayers
determine their tax liability by referring to tables that the IRS prepares each year.

5. How does withholding affect my tax credit and my refund?
A few examples are provided at the end of this document. There are several steps in this calculation,but most income tax software programs are equipped to make that determination.

6. Is there an income restriction?

Yes. The income restriction is based on the tax filing status the purchaser claims when filing his/her income tax return. Individuals filing Form 1040 as Single (or Head of Household) are eligible for the credit if their income is no more than 75,000. Married couples who file a Joint return may have income of no more than $150,000.

7. How is my “income” determined?

For most individuals, income is defined and calculated in the same manner as their Adjusted Gross Income (AGI) on their 1040 income tax return. AGI includes items like wages, salaries, interest and dividends, pension and retirement earnings, rental income and a host of other elements. AGI is the final number that appears on the bottom line of the front page of an IRS Form 1040.

8. What if I worked abroad for part of the year?
Some individuals have earned income and/or receive housing allowances while working outside the US. Their income will be adjusted to reflect those items to measure Modified Adjusted Gross Income (MAGI). Their eligibility for the credit will be based on their MAGI.

9. Do individuals with incomes higher than the $75,000 or $150,000 limits lose all the benefit of the credit?

Not always. The credit phases‐out between $75,000 ‐ $95,000 for singles and $150,000 ‐ $170,000 for married filing joint. The closer a buyer comes to the maximum phase‐out amount, the smaller the credit will be. The law provides a formula to gradually withdraw the credit. Thus, the credit will disappear after an individual’s income reaches $95,000 (single return) or $170,000 (joint return).

For example, if a married couple had income of $165,000, their credit would be reduced by 75% as shown:

Couple’s income $165,000
Income limit 150,000
Excess income $15,000



The excess income amount ($15,000 in this example) is used to form a fraction. The numerator of the fraction is the excess income amount ($15,000). The denominator is $20,000 (specified by the statute).
In this example, the disallowed portion of the credit is 75% of $8000, or $6000
($15,000/$20,000 = 75% x $8000 = $6000)

Stated another way, only 25% of the credit amount would be allowed. In this example, the allowable credit would be $2000 (25% x $8000 = $2000)

10. What’s the definition of “principal residence?”

Generally, a principal residence is the home where an individual spends most of his/her time (generally defined as more than 50%). It is also defined as “owner‐occupied” housing. The term includes single-family detached housing, condos or co‐ops, townhouses or any similar type of new or existing dwelling. Even some houseboats or manufactured homes count as principal residences.

11. Are there restrictions on the location of the property?

Yes. The home must be located in the United States. Property located outside the US is not eligible for the credit.

12. Are there restrictions related to the financing for the mortgage on the property?

In 2009, most financing arrangements are acceptable and will not affect eligibility for the credit. Congress eliminated the financing restriction that applied in 2008. (In 2008, purchasers were ineligible for the $7500 credit if the financing was obtained by means of mortgage revenue bonds.) Now,mortgage‐revenue bond financing will not disqualify an otherwise‐eligible purchaser. (Mortgage revenue bonds are tax‐exempt bonds issued by a state housing agency. Proceeds from the bonds must be used for below market loans to qualified buyers.)

13. Do I have to repay the 2009 tax credit?

NO. There is no repayment for 2009 tax credits.

14. Do 2008 purchasers still have to repay their tax credit?

YES. The $7500 credit in 2008 was more like an interest‐free loan. All eligible purchasers who claimed the 2008 credit will still be required to repay it over 15 years, starting with their 2010 tax return.

Some Practical Questions

15. How do I apply for the credit?

There is no pre‐purchase authorization, application or similar approval process. All eligible purchasers simply claim the credit on their IRS Form 1040 tax return. The credit will be reflected on a new Form 5405 that will be attached to the 1040. Form 5405 can be found at www.irs.gov.

16. So I can’t use the credit amount as part of my downpayment?

No. Congress tried hard to devise a mechanism that would make the funds available for closing costs,but found that pre‐funding would require cumbersome processes that would, in effect, bring the IRS into the purchase and settlement phase of the transaction.

17. So there’s no way to get any cash flow benefits before I file my tax return?

Yes, there is. Any first‐time homebuyers who believe they are eligible for all or part of the credit can modify their income tax withholding (through their employers) or adjust their quarterly estimated tax payments. Individuals subject to income tax withholding would get an IRS Form W‐4 from their employer, follow the instructions on the schedules provided and give the completed Form W‐4 back to the employer. In many cases their withholding would decrease and their take‐home pay would increase. Those who make estimated tax payments would make similar adjustments.


Some “Real World” Examples

18. What if I purchase later this year but can’t get to settlement before December 1?

The credit is available for purchases before December 1, 2009. A home is considered as “purchased” when all events have occurred that transfer the title from the seller to the new purchaser. Thus,closings must occur before December 1, 2009 for purchases to be eligible for the credit.

19. I haven’t even filed my 2008 tax return yet. If I buy in 2009, do I have to wait until next year to get the benefit of the credit?

You’ll have a helpful choice that might speed up the process. Eligible homebuyers who make their purchase between January 1, 2009 and December 1, 2009 can treat the purchase as if it had occurred on December 31, 2008. Thus, they can claim the credit on their 2008 tax return that is due on April 15,2009. They actually have three filing options.

• If they purchase between January 1, 2009 and April 15, 2009, they can claim the $8000 credit on the 2008 return due on April 15.

• They can extend their 2008 income‐tax filing until as late as October 15, 2009. (The IRS grants automatic extensions, but the taxpayer must file for the extension. See www.irs.gov for instructions on how to obtain an extension.)

• If they have filed their 2008 return before they purchase the home, they may file an amended 2008 tax return on Form 1040X. (Form 1040X is available at www.irs.gov)
Of course, 2009 purchasers will always have the option of claiming the credit for the 2009 purchase on their 2009 return. Their 2009 tax return is due on April 15, 2010.

20. I purchased my home in early 2009 before the stimulus bill was enacted. I claimed a $7500 tax credit on my 2008 return as prior law had permitted. Am I restricted to just a $7500 credit?

No, you would qualify for the $8000 credit. Eligible purchasers who have already claimed the $7500 credit on a 2008 return for a 2009 purchase may file an amended return (IRS Form 1040X) for the 2008 tax year. This amended return will enable them to obtain the additional $500 credit amount.

21. If I claim my 2009 $8000 credit on my 2008 tax return, will I have to repay the credit just as the 2008 credits are repaid?

No. Congress anticipated this confusion and has made specific provision so that there would be no repayment of 2009 credits that are claimed on 2008 returns.

22. I made an eligible purchase of a principal residence in May 2008 and claimed the $7500 credit on my 2008 tax return. My brother, who has never owned a home, wishes to purchase a partial interest in the home this spring and move in. Will he qualify for the $8000 credit, as well?

No. Any purchase of a principal residence (or interest in a principal residence) from a related party such as a sibling, parent, grandparent, aunt or uncle is ineligible for the tax credit. Since you and your brother are related in this way, he cannot qualify for the credit on any portion of the home that he purchases
from you, even if he is a first‐time homebuyer.

23. I live in the District of Columbia. If I qualify as a first‐time homebuyer, can I use both the $5000 DC credit and the $8000 credit?

No; double dipping is not allowed. You would be eligible for only the $8000 credit. This will be an advantage because of the higher credit amount, plus the eligibility requirements for the $8000 credit are somewhat more easily satisfied than the DC credit.

24. I know there is no repayment requirement for the $8000 credit. Will I ever have to repay any of the credit back to the government?

One situation does require a recapture payment back to the government. If you claim the credit but then sell the property within 3 years of the date of purchase, you are required to pay back the full amount of any credit, including any refund you received from it. A few exceptions apply. (See below,#24). Note that this same 3‐year recapture rule applies, as well, to the $7500 credit available for 2008. This provision is designed as an anti‐flipping rule.

25. What if I die or get divorced or my property is ruined in a natural disaster within the 3 years?

The repayment rules are eased for many circumstances. If the homeowner who used the credit dies within the first three years of ownership, there is no recapture. Special rules make adjustments for people who sell homes as part of a divorce settlement, as well. Similarly, adjustments are made in the case of a home that is part of an involuntary conversion (property is destroyed in a natural disaster or
subject to condemnation by eminent domain by an authorized agency) within the first three years.

26. I have a home under construction. Am I eligible for the credit?

Yes, so long as you actually occupy the home before December 1, 2009.

WITHHOLDING EXAMPLES:

Note: The impact of estimated tax payments would be the same.

Situation 1: Sally plans her withholding so that her withholding is as close as possible to what she anticipates as her income tax liability for the year. When she fills out her 1040, her liability is $6000.
She has had $6000 withheld from her paycheck. She also qualifies for the $8000 homebuyer credit.
Result: Sally’s withholding satisfies her tax liability and reduces it to zero. She will receive a refund of the full $8000.

Situation 2: Nick and Nora file a joint return. Nick is self‐employed and makes estimated payments;Nora has taxes withheld from her salary. When they compute their taxes, their combined withholding and estimated tax payments are $11,000. Their income tax liability is $9800. They also qualified as first time homebuyers and are eligible for the $8000 refundable tax credit.

Result: Ordinarily, their combined estimated tax payments and withholding would make them eligible for a refund of $1200 ($11,000 ‐ $9800 = $1200). Because they are eligible for the refundable tax credit as well, they will receive a refund of $9200 ($1200 income tax refund + $8000 refundable tax credit = $9200).

Situation 3: Cesar and LuzMaria both have income taxes withheld from their salaries and file a joint return. When they file their income tax return, their combined withholding is $5000. However, their total tax liability is $7200, generating an additional income tax liability of $2200 ($7200 ‐ $5000). They also qualify for the $8000 first‐time homebuyer tax credit.

Result: Cesar and LuzMaria have been under‐withheld by $2200. Ordinarily, they would be required to pay the additional $2200 they owe (plus any applicable interest and penalties). Because they are eligible for the refundable homebuyer tax credit, the credit will cover the $2200 additional liability. In addition,they will receive an income tax refund of $5800 ($8000 ‐ $2200 = $5800). If they owed penalties and/or
interest, that amount would reduce the refund.

MORTGAGE CHECKLIST

So you're ready to buy a home, are you? Well...maybe, maybe not! To be totally prepared, you should call a mortgage broker or bank before you even start looking, and get pre-approved. What's the difference between pre-qualified and pre-approved? One major item - your credit worthiness will be verified! And believe me, that goes a long way toward making the seller's agent and the seller feel more comfortable accepting your offer. When a buyer's agent submits a pre-approval letter along with an offer, it adds credibility to the offer.

What will you need for the mortgage loan originator when you actually apply for that mortgage after you've found that perfect property? The following items:

W-2 Forms - or business tax returns if you're self-employed. The last two years

Copies of at least one pay stub - for each person applying for the loan

Bank Statements - copies of two to four months of your most recent bank or credit union statements

Lender, Loand Number and Amount Owed on any loans you may have, including student loans

Account Number for Credit Cards and Charge Accounts and the outstanding balances on each

Addresses for the Last Five Years - and landlord contact information

Documentation to Verify Additional Income - such as child support, alimony, pension

Copies of Personal Tax Forms for the last two years

FIVE THINGS WHICH AFFECT YOUR CREDIT:

Your Payment History

How Much you Owe

The Length of Your Credit History

How Much New Credit You Have

The Types of Credit You Have - most mortgage companies prefer to see three types of credit, such as vehicle loans, mortgages and credit cards

THE DIFFERENCE BETWEEN PRE-QUALIFICATION AND PRE-APPROVAL

Pre-Qualification is the result of supplying information to a bank or mortgage company with no documentation involved and no credit check

Pre-Approval is the result of a more in-depth financial discussion with a bank or mortgage company, often involving documentation, and always involving a credit check; offers which are accompanied by a Pre-Approval from a bank or mortgage company carry the most weight and are generally considered more seriously than those without.

Remember, check with your bank or loan originator to see what their institution requires; it does vary some from lender to lender.

Thinking of buying or selling real estate? There's one ready source for answers to all your questions: Just Ask Allen!
aduhe@vaneatonromero.com
www.JustAskAllen.com
337-254-7812 - Allen's Cell

Wow - it's slipping by!

Good grief, how can it already be February! Didn't we just put up (and take down) the Christmas tree? Well, February means Valentine's Day, and for those of you who are on my mailing list, this month's Newsletter has a bit of Valentine's trivia. Then comes Mardi Gras, with all its activities, followed by a week of hoarseness from yelling "Throw me something, mister!"

This year, though, I'm skipping the Mardi Gras madness and heading to Destin for a few days to visit with friends from snowy Indiana who are trying to get warm. But until I can throw my bags in the car and point it toward I-10, there's work to be done (and thank goodness for it!). With the low interest rates, things are hopping; te phones usually go silent from November until the day after Mardi Gras, but things started getting busy the week of Christmas. Not that I'm complaining, mind you.

There was an interesting article in the Daily Advertiser about a week ago. Mary Jane Bauer,with our local real estate board, gave a really good synopsis of the current market. So many people watch the national news and assume that the rotten real estate market exists here, as it does in so many other places. In truth, the market here is strong - and weak offers still rarely purchase a property. With low unemployment, the Acadiana area holds steady in real estate sales. According to Mary Jane's article, we were only slightly down from last year, and really still ahead of our pre-Katrina sales (which were strong). If you'd like some information from Mary Jane's article, let me know and I'll be happy to send you a copy.

If you're a first time home buyer, you will want to check out the tax credit available to you if you buy before July 1st, 2009. You can get all the information on it at the following web site (courtesy of Jesse Regan, at Family First Mortgage):

http://www.federalhousingtaxcredit.com/index.html

If you aren't already on my mailing list, email your request to be added to it to me at: aduhe@vaneatonromero.com

If you're looking for property, check out the MLS listing on my web site:
www.JustAskAllen.com

And, as always, if you have questions about real estate, there's one ready source for all your answers: Just Ask Allen!

Laissez les bons temps roulez!

Real Estate in the New Year

Welcome to 2009! Given the changes in the international real estate markets in the last year, clients are asking what to expect in the new year. Here in Acadiana, we're blessed - while the market fervor has slowed a bit since the post-Katrina boom (causing people to think we've entered a "slow" market), we've returned to our pre-Katrina strong market. And, unlike most of the rest of the country, we have not been impacted by declining real estate values.

Unfortunately, all the national press about the terrible real estate market has had its effect on buyers, who mistakenly think that our market is following the same pattern as the national market. Some have lost out on the house they really wanted because they assumed - incorrently - that all sellers here are desperate, and that there are no willing buyers. While there was over-building in certain segments of the new home market, for the most part our market is still strong, and while prices are somewhat more negotiable, no one is giving their home away.

What does 2009 have in store for us? With interest rates at an amazingly low point, we should see more activity as winter turns to spring. Already, listing agents are feeling the impact of the lower mortgage rates by increased showings and increased offers on our properties.

Buying a home is much like buying a fine antique; when you find the right one, go for it! While you certainly don't want to give your money away, ask your agent to run a Comparative Market Analysis, using comparable sales no older than six months, to determine what a fair offer might be. Get pre-approved by a bank or mortgage company, so you can send in your pre-approval letter with your offer, and go for it! There's nothing worse than watching the face of a client who has just discovered that the house they really wanted was sold to someone else while they waited for the market to "bottom out" or for interest rates to fall even lower.

In the new construction market, there is a greater flexibility in the offers being accepted. Some builders are offering money toward closing costs, and others are willing to negotiate their sales price down. However, most builders are very concious of the effect that accepting a lower sales price will have on their future sales, and are wary; instead, they may be more amenable to a "mortgage buy-down." Consult your mortgage professional for the details on buy-downs.

If you're thinking of buying a new home, 2009 is definitely the year to do it. And if you're considering looking at houses, or if you would like to know the market value of your own present property, call me - I would be delighted to introduce you to what is available on the market, and to provide you with a complimentary Comparative Market Analysis to help establish the market worth of your property.

Happy New Year!