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We are clueless on how to save energy (just ask NPR), but this Saturday you can learn how! |
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As reported by NPR, Columbia University recently conducted a study where they asked people about the most effective ways were to save energy --- and as a general public, we're well off the mark! From NPR.... CHIOTAKIS: So what the study found is when it comes to energy savings, we're all idiots? HILL: Yeah, pretty much. Basically researchers asked people what one thing they could do that would be the most effective thing to save energy and people said turning off the lights. CHIOTAKIS: Well that makes sense, what's wrong with that? HILL: Well, turning off the lights and other curtailment activities, as researchers like to call them, may not save as much energy as we think. A better choice might be making efficiency improvements, like installing energy-efficient light bulbs or driving non-gas guzzlers. CHIOTAKIS: So what are the things, Adriene, we do that we think save more energy than they actually save? HILL: Well, so there's turning off the lights. There's driving slower on the highway -- maybe stepping it down to 55, people think that saves more energy than it actually does. Unplugging your phone charger -- again, these things do save energy, but not as much as people guess. CHIOTAKIS: And what do we under-rate? What saves more than most people think they save? HILL: Driving cars that get better mileage, using room air conditioners instead of central air, and running more efficient appliances. BUT WAIT! THERE'S GOOD NEWS . . .This Saturday (September 25) from 9am to 4pm you can learn all about saving energy, and living sustainably at Harrisonburg's First Annual Green Expo. Don't waste the next few months doing web searches and making phone calls to try to learn about improvements you could make to your home, or technologies or products you could use in a new home. This Saturday you can spend an hour or two going from booth to booth speaking directly to the experts! Take a look at the long list of companies that will be present! Plus, you can learn a lot about these four notable speakers!
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Harrisonburg Is One Of The Ten Best Places To Launch Your Second Career! |
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Retirement doesn't come at age 55 for everyone -- and an increasing number of people are continuing to work past that age given the current economy and financial markets. Even after retirement, many people are looking for second careers, and U.S. News & Word Report recently (yesterday) ranked Harrisonburg as one of the ten best places to launch your second career. Click here to read the article. Here's what they have to say about our area.... The centerpiece of this rural town is James Madison University and its 17,000 undergrads. It's hard to miss the purple-and-gold-clad students around town. Eastern Mennonite University is here as well. Agriculture and JMU fuel the economy. Healthcare provider Centra Healthcare Solutions is also one of the region's major employers. Getting to Washington will take a two-hour drive, but Charlottesville (home of the University of Virginia) is just an hour away by car. It's the area that surrounds Harrisonburg that often clinches the deal. The Blue Ridge Mountains, Skyline Drive, and the Shenandoah Valley, along with its namesake river, are a magnet for outdoor enthusiasts from skiers and spelunkers to hikers and kayakers. And the 1.8 million-acre George Washington and Jefferson National Forests extend along virtually the entire western edge of Virginia; Crabtree Falls Trail features one of the most impressive vertical-drop waterfalls east of the Mississippi River. Toss in the wineries and apple orchards tucked away on winding back-country roads, and it's an appealingly bucolic picture. Meanwhile, the downtown area is showing signs of new life, with an active farmers' market and a handful of hip coffee shops and ethnic restaurants. A few observations....
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Owner Financing In Harrisonburg & Rockingham County |
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Can't obtain traditional financing? Perhaps the owner of the house you are purchasing can finance the purchase for you! Actually...there don't seem to be too many owner financing opportunities available. Searching our local MLS, I'm finding five properties in Harrisonburg and Rockingham County that are advertised as having owner financing opportunities.... (1) 3318 Friedens Church Road - 3 BR, 3 BA, 2700 SF, $326k (2) 216 Emerald Drive - 3 BR, 3.5 BA, 2581 SF, $199k (3) 150 Inglewood Court - 3 BR, 2 BA, 1408 SF, $178k (4) 1380 J Hunters Road - 2 BR, 2 BA, 953 SF, $57k (5) 1372 J Hunters Road - 2 BR, 1 BA, 837 SF, $47k In many (not all) cases, an owner that can provide owner financing either owns the property outright (no mortgage remains), or has a low balance on their mortgage that they can pay it off entirely. Then, with no mortgage in place, they'll expect some portion of the purchase price from you as a down payment, and the rest will be repaid over a term and on a schedule negotiated between you and the owner. Most owner financing scenarios are not 30 year arrangements, but may involve owner financing for 5 or 7 years, with a balloon payment at the end. To be more specific --- a $200k purchase might involve a $20k down payment, and then the $180k balance amortized over 30 years at 6% interest, but with a 5 year balloon. This would mean that you'd pay a monthly payment of principal and interest as if the $180k loan were stretched out over 30 years, but after 5 years you would have to pay off the entire remaining balance of the loan. Typically the balloon payoff is accomplished by refinancing the property with a traditional lender at some point prior to when the balloon payment is due. If you own a property, and are trying to sell it, and could offer owner financing --- do it! There aren't too many properties with this option readily available, so you might entice additional buyers if you can offer to finance their purchase. If you're a buyer looking for owner financing, you'll probably need to approach owners (in addition to the five above) who aren't offering owner financing, to see if they can or would consider it. | |
Types of Investment Properties In Harrisonburg |
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Below are several general categories of investment properties in Harrisonburg that you might consider purchasing. Each has its own pros and cons. College Rentals - There are many more bedrooms than college students in Harrisonburg right now, so this is not necessarily a great choice, but it can work well given the current pricing of these properties. Hunters Ridge Condos, Hunters Ridge Townhomes and Madison Manor are your main choices in this area, and with a decent down payment, the cash flow can actually work well now that prices have dropped considerably over the past few months. New-ish Townhomes - Here you'll be aiming for graduate students or young professionals as tenants. I suggest buying a townhouse with two full bathrooms, and either two bedrooms or three bedrooms can work well. Your main choices are: Liberty Square, Liberty Square II, Beacon Hill, Avalon Woods, Harmony Heights, Wellington Park and Blakely Park, though there are some other areas to consider as well. Being new or new-ish townhomes, these are usually in good condition and relatively easy to rent. Old-ish Single-Family / Multi-Family Homes - If you don't mind tackling some maintenance on a home that is 40 to 70 years old, you might find some good opportunities in and around the downtown area where you can buy a home that could be fixed up and rented to college students, graduate students, young professionals or a family. These properties range from 2 bedroom homes that may currently be owner occupied to 5+ bedroom homes that have been rented to college students for years. Depending on your goals as an investor, each of these categories of investment properties can make more or less sense. Feel free to call (540-578-0102) or e-mail (scott@HarrisonburgHousingToday.com) if you'd like to discuss your goals, and which properties would work best for you. Read more about the numbers of investing here. | |
Investing in Harrisonburg Real Estate |
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Investing in real estate isn't for everyone --- and it isn't without its risks. But if you have some money to put into an investment as a down payment, and if you have financial reserves with which to cover maintenance costs and months without rental income, you might be interested in learning more. The easiest case study of real estate investing in Harrisonburg is to consider the purchase of a two-story townhome built in the last ten years. There are quite a few neighborhoods where these townhomes can be purchased, somewhere between $130k and $160k: These two-story townhouses in these neighborhoods will likely rent for between $850 to $950 depending on the age and condition. View them on a map here. Next, let's assume a great deal on the purchase (we'll shop until we find that deal) with a purchase price of $129,900. However, we'll make lots of conservative assumptions as we continue. For the time being, assume:
This might not seem like much, but when combined with a few other investment benefits, it starts to add up, even in the first year. Year 1 Investment Benefits
There are plenty of variables to consider when buying an investment property, but the basics of the cash flow are the first to thoroughly understand. For a head start on everything else you need to learn, review this detailed investment analysis. | |
Mortgage Interest Rates Have Never Been Lower -- Get Out Your Calculator! |
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I had heard from several of my clients this week that interest rates were VERY low --- but I didn't know they were the lowest EVER! Current rates are the lowest on record, according to BankRate.com and others. Of note, I two of my clients locked in this week at 4.375% and 4.5% --- wow! How do these incredibly low interest rates affect you?
Put another way --- if you were buying a new townhome this week, could it be helpful to have an extra $1,600 in your pocket? Or an extra $2,700 in your pocket? Buying now, with low rates, can save you that much (annually) as compared to your costs if rates start to increase. | |
Everything Will Sell, At A Price |
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This is a story of quickly rising, and quickly falling real estate values. In Harrisonburg. Despite a relatively stable overall housing market. Some parents of JMU students buy an investment property for their son or daughter to use a a residence while at JMU, and many of these parents have historically bought condos and townhomes at Hunters Ridge. Let's take a look at sales trends for each over the past several years: As you can see here, prices of Hunters Ridge condos and townhomes had steadily (sometimes rapidly) increased for many years before arriving in 2009. Last year, Hunters Ridge sales slowed down to a snails pace --- with only one condo sale in the entire year, and only 3 townhome sales. Good news --- townhomes and condos are starting to go under contract again. Bad news --- it's because the prices have dropped very low! At the moment there are 5 condos on the market at the $60,000 price point, which is well below any recent sales price. There are also townhomes on the market for only $70,000. Some conclusions:
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How To Close On Your Home Purchase ON TIME! |
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It is a challenge! It seems that these days over half of home purchases don't close on time, and it is often because of delays in the financing process. Financing guidelines are much more stringent, requiring more documentation than ever before. So how CAN you close on time? Wells Fargo is confident that they can make it happen. They are so confident that they're putting their money on the line in promising to close your loan on time. The program is called the "Wells Fargo Closing Guarantee" and states that if Wells Fargo doesn't close your loan on or before the date in your sales contract, they'll pay your first month's principal and interest! Wells Fargo typically has great programs and rates, so this closing guarantee certainly boosts them up on my list of top lenders that I'd recommend that you speak with in determining where you'll obtain your financing. For financing via Wells Fargo in Harrisonburg, contact Jon Ischinger at 540-478-5223 or jonathan.ischinger@wellsfargo.com. | |
Construction Is Underway On New Condos in Harrisonburg |
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Less maintenance than a townhome, all of the amenities of Liberty Square (and more), one-level living, private entrances . . . . enjoy all of this and more in these 1,300 to 1,800 square foot new condos in Harrisonburg starting at $139,900, built by Scripture Communities. Click here for more construction photos. Despite snowy weather, construction is moving along quickly at Founders Way. Below is a rendering of the finished product. The first building of (12) condos will be complete in May 2010 or June 2010, thus making first time buyers for an $8,000 tax credit. PLUS....the builder is offering a free granite upgrade for reservations prior to March 31, 2010. PLUS....the builder is offering $3,000 of closing cost assistance. Find out more at FoundersWay.com, call (540-578-0102) or e-mail me, or stop by the Liberty Square model on Fridays, Saturdays, Sundays or Mondays between 1:30 p.m. and 4:30 p.m. Click here for Founders Way updates via Facebook | |
Are Foreclosure Rates Increasing In Harrisonburg and Rockingham County? |
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Over at HarrisonburgForeclosures.com, I post notices of upcoming Trustee Sales (foreclosure auctions). The graph below shows how many trustee sale notices we've seen over the past 7 months. As you can see, there has been a general increase over the past seven months, though it certainly could be a seasonal cycle since I don't have 12 months of data yet. Do remember that these numbers do not indicate how many properties are actually foreclosed on, but rather the number of properties for which a trustee sale is scheduled --- regardless of whether it ends up taking place. I'm working to get my hands on data about how many sales actually go through. Stay tuned! | |
6,500 Reasons Why It's Great If You Have Owned And Lived In Your Home For Five Or More Years! |
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Somehow, the $8,000 tax credit for first-time buyers is getting all of the attention, meaning that most people don't even know about the $6,500 tax credit available to you if you've lived in your home for five years. If you have owned your home for five or more years, you will (almost certainly) receive a $6,500 tax credit if you buy your next home by April 30th, 2010. To clarify -- you must have a contract on the house by April 30th and close by June 30th. Many people that I talk to who would be eligible for this $6,500 tax credit don't even know that it exists. If you're in this situation and planning to buy a new house in 2010, you really ought to consider making a move in the first four to six months of the year. Click here for more information (from the IRS) about both tax credits. Again, to try to really drive this point home: If you've owned your house (and lived in it) for more than five years, you are very likely eligible for a $6,500 tax credit if you buy a new home by the spring/summer. | |
Bold Buyers Bag Big Bargains |
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I recently wrote a post entitled "Is it logical for a buyer to want 10% off of a "fair" asking price in today's economy?" where I concluded: There is nothing wrong with wanting to negotiate 10% off an asking price, or with making offers given such logic. But such a buyer should know that they may have to make an offer on ten or more properties before they find a seller willing to negotiate 10% or more below their asking price. Yet even given that perspective, there are deals to be had in the current real estate market --- and the buyers who are making aggressive offers are usually the ones finding the great opportunities. Here are the factors at play:
Thus, the stars must align --- a buyer must be willing to make an aggressive offer on a house that just so happens to have a seller who is ready to be overly flexible with their price. The natural question here is whether this actually ever happens. It does! But here's how --- these buyers who want to find that "great deal" often have to make offers on multiple houses before they find the one where the seller will be flexible. My advice to ALL buyers is to go ahead and make the offer that you think is reasonable, even if you are pretty sure the seller won't take it, and even if you aren't going to then skip around to house after house to find someone who will take your aggressive offer. | |
Buying a Fixer Upper in Harrisonburg? Check Out The FHA Section 203(k) Loan Program! |
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If you're buying a fixer upper that you'll live in, you might want to consider the FHA Section 203(k) loan program! This program allows a buyer to finance their purchase and subsequent repairs into one loan. The alternative is for a fixer-upper buyer to obtain a secondary or short-term loan to finance the repairs or improvements that they will make after settlement. You can finance significantly more than the purchase price of the property in order to have cash on hand for repairs. The funds for improvements are placed into an escrow account, and the buyer (now owner) can draw on them through the rehabilitation process to pay for the repairs and improvements. There are a few basic guidelines that can quickly tell you whether this might work for your situation:
I have had clients consider this program, who didn't end up buying a fixer upper. Have you purchased a house in Harrisonburg (and surrounding) using this loan program? Or do you know someone who has? Please share! | |
Want To Buy? Have To Sell? Perhaps We Can Help! |
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It seems that there are quite a few people in our current market who want to buy a house --- but they're at a standstill, because they have to sell their current home before they can buy. It can be a challenge to buy and sell simultaneously, as I pointed out this past September. But maybe there's another way . . . I market several neighborhoods of new homes for Scripture Communities, and just recently the builder (Jerry Scripture) has devised a move up program that has worked for him in the past, and is working again now in our current market. The concept is this: In certain circumstances, Scripture Communities will help you sell your current home, or will even commit to buying your home, if you are buying a new home in a Scripture Community. Does it sound to good to be true? It can be of tremendous help to someone who wants to buy, but most sell in order to do so. As a real, live, example --- we're in the process of building a home now (at Heritage Estates) for someone who is using the Scripture Community Move Up program. If they can't sell their current home themselves by the time their new home is complete, Scripture Communities will buy it from them at an already agreed upon price so that they can close on their new home. There are a few common sense guidelines that we're using when considering these move up scenarios:
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Reasonable Goals For Buying An Investment Property In Harrisonburg |
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Every investor (or potential investor) comes to the table with different expectations for an investment property that they may choose to purchase. A few examples of this broad spectrum include: Having One's Cake And Eating It Too!
Put more specifically in today's context, most rental properties that an investor could purchase in Harrisonburg today will offer (how exciting!) negative cash flow --- even given a 20% down payment, self-management and self-maintenance. This leads me to two questions every potential investor should be asking.... 1. Should I be investing in real estate in Harrisonburg? If you are seriously considering investing in real estate, Harrisonburg is a great place to buy. While there are still some who believe our home values will eventually, somehow, start falling rapidly, we have seen relatively stable home values over the past several years despite the majority of the country seeing sharp declines. This is likely attributable to our low unemployment, a diverse economy, multiple local colleges/universities, and our proximity to D.C. --- all of which are great economic stabilizers that benefit real estate investors in this area. 2. What should I be buying as an investment property in Harrisonburg? And how should I be buying it? First, you'll need to be patient. As stated above, most properties currently for sale won't be very exciting, even given reasonable investment goals. However, there are, and there will continue to be some properties that can work well --- providing positive cash flow, likely appreciation, a stable tenant base, etc. To properly evaluate such opportunities, however, you'll want to (in my opinion) become comfortable with analyzing the properties and their potential financial benefits through several different lenses (cash flow, tax benefits, principal reduction, appreciation). Read up here for more details. If you are considering purchasing an investment property in Harrisonburg, I'd be delighted to assist you in that process. Get in touch (540-578-0102 or scott@HarrisonburgHousingToday.com) and we can start to discuss your situation and goals. | |
Is it logical for a buyer to want 10% off of a "fair" asking price in today's economy? |
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Keston recently commented here as follows: That is a conundrum. In the early and mid 2000s sellers believed they should ramp up their prices relative to recent comps (usually with a successful sale) - hence, the upward pricing pressures on housing. Now, the opposite situation is occurring; buyers believe they should get a better deal than current comps. Indeed, even if prices haven't come down much, buyers have progressively gotten better deals in the last two years (i.e., lower interest rates and first-time buyer incentives). In the near term buyers are either going to require a good deal now or wait for a better deal. Remember that housing increased over 10% a year in the boom times. It's not illogical for a buyer to want 10% off of a "fair" asking price in today's economy. I can follow Keston's logic --- if prices went up 10% per year (or more) as the housing market accelerated, why shouldn't prices go down 10% per year (or more) as the housing market decelerates?!! Here are my thoughts: First, I definitely agree with Keston that it is very logical for a buyer to want 10% off a fair asking price. Furthermore, I imagine those logical buyers are quite perplexed (and perhaps frustrated) that prices haven't fallen by 10% a year as the market has declined. The law of supply and demand definitely suggests that prices should have adjusted as demand so drastically declined over the past three years. But, given that prices haven't fallen in this area, let's examine what is likely happening as those logical buyers try to buy in our local market with the perspective that they ought to be able to negotiate 10% off an asking price.
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Don't Sell! If You Can Keep Your First Home As A Rental Property, Do It! |
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If you own your first home now, and are looking to move up to your next home --- I urge you to carefully examine the potential benefits (and risks) of keeping your current home instead of selling it. Your first home is likely an ideal rental property, and you can see enormous returns if you are able to keep your current home as a rental property when you purchase your next home. That being said, I know that many people need to sell their current home to use the proceeds of that sale to use as a down payment for their purchase. Scenario #1 -- Sell After Five Years We'll imagine that your home was a townhouse bought five years ago for $110k, which is now worth $155k. In selling the property, you will clear about $42k after closing costs. (Assumptions: 100% financing at 7% fixed, five years of principal reduction, 6% gross closing costs) Net Gain After 5 Years Of Residency = $42,000 As you can see, this is a hefty payoff after just five years. Certainly, even if you didn't need the funds to roll into your next purchase, it would be tempting to "cash out" by selling your first home. Scenario #2 -- Sell After Ten Years (total) We'll again imagine that your home was a townhouse bought five years ago for $110k, which is now worth $155k. However, instead of selling the property, you rent it for $875/month, with a super conservative 1% per year increase in rental rate. We'll also assume that your insurance, property taxes, and property value go up 3% per year. If you keep the property for another five years after moving into your new home, and then you sell it, in addition to getting the roughly $42k out that you would have netted after five years, you'll also likely experience:
Scenario #3 -- Sell After Thirty Years (total) But what if you kept it all the way until the end of the 30 year fixed rate mortgage? Then things would be looking excellent! In addition to getting the roughly $42k out that you would have netted after five years, you'll also likely experience:
The Risks Certainly, as in any investment scenario, there are risks. Here are a few:
The Benefits I believe the benefits CAN outweigh the risks, depending on your own personal financial scenario. Instead of cashing out after 5 years for $42k, you can have tenants pay off the remainder of your mortgage, while you get to enjoy the monthly excesses as rental rates go up, and you eventually get to realize the appreciation of the property. After 30 years, you are likely to have received a net of $353k instead of just $42k. Wow! | |
Buying A Foreclosure: Before, At, After The Trustee Sale |
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There is often confusion about what it means to "buy a foreclosure" -- and it really all revolves around whether your potential purchase is happening before, at, or after the Trustee Sale. The Trustee Sale is the sale of the property on the courthouse steps to the highest bidder as a result of the borrower's default on their loan. BEFORE THE TRUSTEE SALE If a property is headed towards foreclosure, you may be able to buy it before it is sold on the courthouse steps. Sometimes a property headed towards foreclosure is on the market during that pre-foreclosure time period, so you could go tour the home, make an offer, and follow a traditional path towards purchasing the property. It's important to realize, however, that if a homeowner is headed towards foreclosure they are likely to be in a "short sale" scenario. A short sale is one in which the proceeds from the sale won't be sufficient to pay off the money owed against the house. If you are considering a property that would be a short sale, you may want to brush up on the typical timing of a short sale in Virginia. It's also crucial to know that there will be lots of uncertainty in trying to buy a short sale property because you'll be waiting on approval from the owner's lender, which can take weeks or months. During that time, other offers can come in, the property can be foreclosed on, etc. You'd know about these properties by reviewing notices of future Trustee Sales, or by asking your Realtor to look for properties in the MLS where a short sale is noted. AT THE TRUSTEE SALE This is where all the action is --- or not! Most trustee sales that I have attended do not have any bidders who exceed the bank's minimum bid. That is to say that the lenders typically take the properties back at or close to the amount of the outstanding loan balance. If the loan balance is a decent amount below perceived market value, then there may be bidders, but this is usually not the case. The uncertainty in buying at the Trustee Sale is that you usually will not have viewed the property (so you won't know the condition), and you won't be able to make your offer/contract contingent upon a home inspection. Thus, you're buying sight unseen, and as is. Quite a dangerous combination, which makes most potential bidders hesitant to bid too high, as they don't know what types of repairs they may have to make to the property. You'll also need to be prepared at the Trustee Sale with a cashier's check in hand, and be ready to close within just a few weeks. AFTER THE TRUSTEE SALE If you're "buying a foreclosure" after the Trustee Sale, you're really buying a bank owned property. That is to say that the lender was not able to sell the property on the courthouse steps, and thus have it back on the market after having foreclosed on the original borrower. Oftentimes, the new owner will not be the actual lender, but an asset management company. Some asset management companies will price the house quite evenly with the market, and try to sell it in a reasonable, but not overly fast time period. These properties are much like other properties on the market, except that they are owned by a bank or asset management company. Other lenders or asset management companies will list the property at a price where it is sure to sell quickly, and likely with multiple offers. A property such as this came on the market in Bridgewater this past week, and there were three offers on the property within the first few days of having been listed. Buying a bank owned property is relatively straight forward, though you may be dealing with multiple competing offers, you will definitely be dealing with lots of extra paperwork and disclosures from the bank, and you may be dealing with a slower than normal process for negotiations and closing. IN SUMMARY If you have been encouraged to "look at some of those foreclosure properties" or think that your best opportunity might be a "a foreclosure" -- maybe you should, and maybe it is. But bear in mind that the process, the risks, and the certainty of the purchase will vary quite drastically based on whether you buy before, at or after the trustee sale! | |
We're Seeing The Effects Of The $8,000 First Time Buyer Tax Credit In Harrisonburg, Rockingham County! |
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I rarely make real estate sales predictions --- mainly because in the rare occasion that I do, I'm usually wrong. More on this in a few days. That being said, I believe we're seeing the specific effect of the $8,000 first time buyer tax credit (that was recently extended) here in Harrisonburg and Rockingham County. Check out how November sales figures will likely play out . . . We've already seen 34 home sales in Harrisonburg and Rockingham County in the first 17 days of November. Compare that to how many occurred in Nov 1-17, 2008 versus Nov 18-30, 2008, and I have extrapolated a final sales count of 65 home sales this November. I will likely be wrong --- I think it will be even higher. The second version of the first time buyer tax credit was to end on November 30th, so there are quite a few purchasers already in the queue waiting to close at the end of this month. Do you want further evidence? The median sales price of the homes that have sold this month is $177,623, compared to the year to date median of $190,000. We're seeing more inexpensive (first time buyer type) homes selling this fall. Any counter prediction out there? What do you think? And what do you think we'll see in those typically stagnant months of December and January?? | |
Several More Months Of An $8,000 First Time Buyer Tax Credit PLUS A New $6,500 Tax Credit For Long Time Residents Of Same Principal Residence |
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THE NEW TAX CREDIT IS COMING, THE NEW TAX CREDIT IS COMING! The House has passed the bill, as has the Senate, and the President may sign it as soon as tomorrow (November 6, 2009). That's right --- the tax credits for home buyers are continuing --- and now they are being applied more widely. FIRST-TIME BUYERS You now have several more months to buy your new home --- you don't have to close by Nov 30 / Dec 1. In fact, as long as you have the property under contract by April 30, 2010, you'll have until July 1, 2010 to close on the property. The tax credit is still $8,000 with several imitations on income, home price, etc. LONG TIME RESIDENTS OF SAME PRINCIPLE RESIDENCE There's something for you too! If you have owned and used the same residence as your principal residence for 5 (consecutive) years out of the last 8 years, you will likely be eligible for a $6,500 tax credit. The deadline for closing is July 1, 2010 (as long as the property is under contract by April 31, 2010.) TIMING One important note here on timing --- if you're a first-time buyer, this new bill just extends your deadlines. If you're a "long time resident of same principle residence" you'll can close on your new house (and be eligible the tax credit) as soon as the bill is signed into law. That is to say that if you're a move-up (or down) buyer ready to close tomorrow (November 6th), you might want to wait another few days for the President to sign the bill. You'll enjoy an additional $6,500 net gain --- in the form of a tax credit. INCOME LIMITS The new income limits are $125,000 for single buyers and $225,000 for couples. THE ACTUAL LEGISLATION Interested in the details of the actual bill? Click here. | |
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Scott Rogers
Funkhouser Real
Estate Group
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scott@funkhousergroup.com
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