Questions and Answers to Repaying the Credit for First-Time Homebuyers

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Information for Sellers who purchased a home in 2008-2011 and received the First Time Home Buyer Tax Credit.

Below are two links directing you to the IRS web site that provides information regarding repayment requirements for the credit and the form the IRS requires your seller to fill out.

http://www.irs.gov/newsroom/article/0,,id=253009,00.html

http://www.irs.gov/pub/irs-prior/f5405–2011.pdf

 If your home was purchased in 2008, all remaining annual installments become due on the return for the year of sale. The repayment is limited to the amount of gain on the sale, if the home is sold to an unrelated taxpayer. If there is no gain or if there is a loss on the sale, the remaining annual installments may be reduced or even eliminated. If the home is sold to a related person, the total amount of the credit must be repaid. Taxpayers may want to consult a tax professional to determine the tax consequences of a sale.

If your home was purchased in 2009 or later, and your home stops being your main home within 36 months from your date of purchase, you may need to repay all or part of the credit. The repayment of your credit is an increase to tax on your tax return for the year the home stops being your main home.

The highlights above were provided by the Ann Arbor Area Board of REALTORS

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Click here to search all Ann Arbor area Michigan homes and condos with pictures and tours – FREE!

Kathy Toth and Team www.KathyToth.com Ann Arbor Market Center Keller Williams Realty

Washtenaw County Sheriff’s Sales Down in Ann Arbor and Surrounding Area

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Incredible news –  for the  3rd month in a row we have had a drop in the number of recorded Sheriff Deeds in Washtenaw County.  April 2011 compared to this year April 2012 we are down 36.5%.  Yearly totals for the 1st 4 months of 2011 compared to the 1st 4 months of 2012 we are down 28.64% from last year.  2012 is certainly showing improved signs of stabilization with a total of 122 fewer recorded sheriff’s deeds compared to last year at this time.

Sellers – it is time to list your home.  Property inventory is down and buyers are writing offers.  Very important to price your home to sell at a competitive price point to attract buyers.  Keep in mind that the sale of your home will also depend on an appraisal.

Looking for foreclosure deals?

Buyers – keep up with new and current listings.  Use our free property search at HomeSearchAnnArbor.com.  Have new listings sent directly to your inbox.  You can determine your own search criteria.

The chart below has been provided by Washtenaw County Clerk and Register of Deeds.

Use our detailed  home search engine to  Search homes in Ann Arbor and the surrounding area.

Kathy Toth and Team |  Keller Williams Realty  |  734.669.0337

Rental Rates Still On the Rise – Another Good Reason to Buy Vs. Rent

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As rental rates continue to climb nationally, why Rent when you can Buy?  While rental rates keep climbing across the country it is also thought that interest rates are sure to follow.  First off, we know that yearly Rental increases will hurt your pocketbooks.  And, secondly, with the great rates being offered on fixed-rate mortgages, why not lock in a terrific rate today knowing the forecast is indicating a possible rate increase.  When we review the charts of the Past and Future Inflation Scenarios given to us by Lawrence Yun, Chief Economist, National Association of REALTORS in his post – Rents Rising, Dec. 16, 2011. I have one point to make –  look at the Mortgage payment – No increase in percent over time based on a 30 year fixed-rate mortgage.

In other words, why not get in while the going is good. Buyers could be making the same payment on their House as they are making right now on their Rental Property. With a fixed-rate mortgage you will never see an increase in the monthly payment over the life of the loan. Yes, of course, other factors will increase like groceries and college tuition – but your fixed-rate mortgage payment will remain the same.  That, alone, is a great safety net to be able to count on your largest payment each month staying constant.

If you need to know exactly how to go about the entire process of purchasing a home and to stop renting, then join us for a Home Buyer Round Table.  Click the link below to Register for one of the Home Buyer Round Table Events.

 Click to find the best Ann Arbor Real Estate Deals.

 Investigate foreclosures here.

Kathy Toth, Keller Williams Market Center, Ann Arbor, MI

 

Net Promotor Score in Ann Arbor Area Real Estate

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In our small Ann Arbor Area Real Estate business, we track everything, including our net promoter score.

How likely is it that you would recommend Kathy Toth Team of Keller Williams to a friend or colleague?  This is what the net promoter score measures.

When Gary Keller spoke of Red light Green light, he meant see if the dollars you spend, are worth continuing and evaluate your outflow before throwing money out the window. Re evaluate all costs.

So we have been cutting expenses and monitoring feedback. We added the net promoter score this year to our evaluations and the results are in. We have a near perfect score of 10. What does this mean?  Our clients will suggest us to their friends and family. We linked a detailed report here on net promoter score.
The next step is to really understand why your promoters love you and why your detractors hate you. Then you can make a conscious decision to do more of the things for which customers love you and fix the things that people hate. Sometimes, you can never convert a detractor into a promoter. But at least you have the information.  Promoters (score 9-10) are loyal enthusiasts who will keep buying and refer others, fueling growth – that is our goal.

It is our goal to exceed your expectations in delivering Ann Arbor real estate service to you.  Join us in our buyer round table classes in February and March.  We are here to serve you and have a passion for Ann Arbor.

Know the Truth: Buyer Round Table Will Discuss Mortgage Options

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Fixed Rate Mortgage Loan Payments Remains the Same Regardless of Fluctuation in the Market

Learn about specific fixed rate loan programs that are available in the ever changing mortgage market from Patrick Sortor of Cole Mortgage in Ann Arbor.  Be advised as to what Mortgage Product best suits your specific needs. Don’t go it alone.

Also, learn the ins and outs of the home buying process, get insider tips and ask all your questions with the guidance of your seasoned real estate professional from The Toth Team – Jennifer Graswick.   You can implement a plan today.

Move in the right direction and take the first step to pride in ownership. Whether you are a 1st-time home buyer or a seasoned professional attend the January 25, 2012 Home Buyer Round Table .  Never a better time to invest in Real Estate with phenomenal interest rates along with affordable investment opportunities.

To attend a Home Buyer Round Table, in Ann Arbor, on January 25, 2012 or if you know of anyone who needs to speak with a mortgage or real estate professional pass this information along.  To register and check available dates – click this link:

Home Buyer Round Tables.

This Event will fill up – first come first serve.    You will receive a buyer handbook, a $40.00 value explaining the home buying process and free credit report.

Kathy Toth and Team www.KathyToth.com Ann Arbor Market Center Keller Williams Realty

Real Estate Buyer Secrets Shared at Ann Arbor Buyer Roundtable Jan 25, Feb 29 or Mar 21, 2012

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Event:  Buyer Roundtable

Buyers can find out the latest mortgage programs that are best suited for them from Cole Mortgage – Patrick Sortor.  Ann Arbor buyers can learn the ins and outs of home buying and insider tips from Buyer Agent on  The Toth Team – Jennifer Graswick. Event will fill up – first come first serve. You will get a buyer book, $40.00 value, explaining the home buying process and free credit report.

Call Jennifer at 734-845-8888 or Register Below

Three Dates:  January 25, 2012   February 29, 2012    March 21, 2012

Time:  6 pm – 7:30 pm

Location:  Liberty Title Company, 1923 Packard St., Ann Arbor, MI  48104

Is this the perfect storm to quit renting?  Is renting hazardous to your wallet?  Is now the time to own a home?  Let’s look at costs to get into a house.  Compare those costs to renting.  Evaluate market trends with experts.  Historically a homeowner’s net worth has ranged from 31 to 46 times that of a renter according to National Association of REALTORS. Here in Ann Arbor, you can purchase a home for about the same as renting a home.  Don’t you want to find out if this is your opportunity knocking? Save your wallet from the hazard of renting!

First Time Home Buyers

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November US 2011 Market Update

While home sales in September were down slightly from a relatively strong month in August, they were up from a year ago, giving  encouraging signs of a strengthening market and potential for stabilizing, if  not appreciating, home prices. These signs include an increasing demand, shown  by the number of people shopping for homes, and the decreasing inventory of  homes for sale, in conjunction with some of the lowest levels of new housing  construction since the 1960s when the Beatles first came to the United States.

Of the 3.48 million homes sold in September, 32% were  first-time home buyers. With more and more people entering the market, the persisting obstacle for most is still the restrictive lending environment. In a
plea to banks and policy makers, NAR President Ron Phipps said, “We need  to remove the roadblocks to a housing recovery—not place more obstacles in the  way of financially qualified buyers.”

With an increasing demand and shrinking inventory, it is  hoped that banks will begin to see the market potential and start to lend to otherwise creditworthy home shoppers, opening the road to a more rapid  recovery. While consumer confidence still remains at all-time lows, retail  spending increased 1.1% last month, a positive sign of growth fueled by the approaching holiday season, which could propel the U.S. into a promising new year.

In Ann Arbor, we are experiencing shrinking inventory, 4  percent price appreciation through the third quarter.  We will see what the year end brings, but I bet it will be a total price increase of at least one percent like we had last
year.  We will post the Ann Arbor Real Estate Market Update this week.

Stay tuned for our First Time Home Buyer Round Tables in  January, February and March to be help at Liberty Title in Ann Arbor on Packard Rd.

Mortgage Rates Are Down Making Ann Arbor Housing Affordable

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See video explaining the national real estate market, interest rates, and First Time Home Buyer Tips. Watch for our First Time Home Buyer Round tables in January, February and March.

 

Mortgage rates were
down again, from 4.35% in September of last year to 4.11% this September.
While the Federal Reserve continues to put downward pressure on interest rates to spur sales, Congress’s recent action to lower loan limits has further tightened lending among banks. This had the biggest impact in the  Western states, which experienced an 8.8% drop in sales. This was mainly due  to the concentration of more expensive properties in California, where buyers rushed to purchase properties in August before loans limits dropped on the October 1 deadline.

New Construction Home Purchase in Washtenaw County – Do you Need REALTOR?

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Do I Need a Buyer’s Agent to Purchase New Construction?

Q: I’m thinking about buying a new construction home.  Should I just go to the builder myself or do people use Realtors to buy new homes?

A:  STOP, WAIT, DON’T START THE CAR!  It’s absolutely in your best interest to hire a buyer’s agent experienced in New Construction homes BEFORE you start visiting the models.  Here’s why.  In order to represent you, the buyer’s agent must register you at the new home model.  If you visit the model on your own without your agent and register yourself, the builders generally will not allow the Realtor to negotiate on your behalf later.  So make sure to make an appointment with your buyer’s agent and they can show you all of the new construction in your area!  Ask Jennifer Graswick, buyer’s agent on our team who used to represent a builder for years, what it is like to now represent new construction buyers: 734-845-8888.

Reasons to hire a Realtor to buy new construction:

  • We Save You Money!  Are you getting what you are entitled to – both in quality and value? An experienced agent knows what you should receive and what “extras” might be available.
  • Pre-construction – Realtors have relationships with builders that can be quite beneficial to the buyer. The REALTOR® is also in a position to inform you when new pre-construction opportunities arise before they are even made public.
  • Dispute Resolution – in the event of a dispute with the builder over cost, build time, work orders, etc. you need the backing a strong Realtor and large real estate company such as Keller Williams. A builder is much more likely to yield when dealing with a top producing Realtor from a leading company who is bringing them a lot of business.
  • Our SERVICES are free to YOU – The builder pays us a commission once the sale is complete.  Since the purchase price of the property is the same with or without a Realtor, it makes sense to have a REALTOR® on your side to help you navigate the complicated home buying process.  We can help you locate your brand new dream home!
  • We know where the new homes are and can help you find the right one for you!

To give you an example, we recently worked with clients named Jane and Bob.  They’d looked at dozens of resale homes, short sales, foreclosures.  None of them quite measured up or was what they were looking for, so we decided to look at the new construction homes in the area.  We took them to visit several builders and in the end, we found two new construction homes they liked a lot.  We were able to negotiate on their behalf with 2 builders and got both of them to compete for our buyer’s business and lowered their pricing.  In the end, the home they chose was originally listed at a $214,900 price for a 4 bedroom 3 bath 3 car garage home.  The negotiated price with the builder?  $203,000.  Yep – saved them $11,900.  Not only that – we got the builder to agree to switch out the black appliances for stainless steel, put up a PVC white fence in the back yard, add crown moldings to the kitchen cabinets, add a water softener and a garage door opener to the 3rd garage door, and paint the front door (it was a funny shade of purple!)  Last but not least, we negotiated the builder to pay all the buyer’s closing costs AND buy down their interest rate to 4.25%.

As a Realtor, we know the Ann Arbor Area recent sales and can play good cop/bad cop with the builder and negotiate the price with the upgrades you want.  This may be more true with builder homes that have already been built and are sitting in inventory.

If you are thinking about buying Ann Arbor Area new construction, call 734-274-9544 and we’ll start sending you info on what new homes are available in Washtenaw County.  We are your Ann Arbor Real Estate Experts and are here to help.

Impact of Interest Rates on Washtenaw County Home Buyers

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Rates are historic lows.  Should you wait to buy?  Do you think rates are going lower?  Do you think home prices are going lower? Take a look at Ann Arbor Area market timing for real estate trends. So what are you to do?


If you look at the chart below you will find scenarios of stable prices and lower rates, lower price and rising rates, etc.  See what happens to home mortgage payments.

To figure out which was a smarter bet–counting on home prices to fall further or interest rates to rise–our Keller Williams research department took the last ten years of monthly home price and mortgage interest rate data and ran the numbers to see which was more likely: an increase in mortgage rates or a further drop in home prices. Here’s what Keller Williams found:

  1. A one percent increase in mortgage rates is ten times more likely to happen than a ten percent drop      in home prices.
  2. A one percent rate increase more than offsets a ten percent reduction in home prices.
  3. When interest rates fall by one percent, the total interest paid is almost three times more than the      interest savings from a ten percent drop in home prices.
  4. The probability of both happening at the same time is ridiculously small, and homeowners would      still pay 15 percent more in interest over the life of the loan.

Interest rates have been at 50 years lows. Potential home buyers need to understand the positive financial impact low interest rates have on the cost of Ann Arbor Area home ownership and the thousands of dollars that can be saved over the life of a typical mortgage loan. For those who can afford to buy, trade up, or invest, our current market presents a lifetime opportunity.  Talk to our preferred lenders to take advantage ofknowing your options.  Call us 734-274-9544.  I wrote about Mortgage Calculators to give some test run options.  If you want help with pre approval from a trusted lender, click here.