Potential tax credit for buyers

This was sent to me from Ken Dickerson from RWF

"On Wednesday the Senate passed an amendment that will include a $15,000 home purchasing tax credit in the American Recovery & Reinvestment Act of 2009 for anyone buying a primary residence within the one year period from the time this bill is passed.
It is important to note that this bill has not passed yet but many potential buyers are asking questions in regards to this tax break. I've included some links that divulge the details of the home buyer tax credit amendment. Here are some of the basics:
1. The tax credit is the lesser of 10% of the home price or $15,000 and can be spread equally over 2 tax years. 2. The housing tax credit can be used for purchases of primary residences only…no investment properties or second homes.
3. The home purchase can be an existing home, a newly constructed home, or a bank foreclosure home…but the purchase must be completed within 1 year of the passage of the American Recovery and Reinvestment Tax Act of 2009.
4. The home buyer does NOT have to be a “first time home buyer” to qualify for this housing tax credit, unlike housing stimulus based tax credits from last year.
5. This 2009 housing tax credit does NOT have to be repaid to the government unlike the $7,500 first time home buyer tax credit from last year UNLESS you cease to make it your primary residence within the first 24 months (i.e.. sell within 2 years).
This is great news for home buyers, if it passes, and can go a long way towards stimulating demand for new home purchases." Please let me know if you or your clients have any questions.
contact: Ken Dickerson at RWF and mention my name.

Chicago Real Estate. Will Housing Market Bottom in 2009?

I sat down at my computer this afternoon and a page was open on the screen with the headline 'Housing will Bottom June 30, 2009' or so says (said) Jim Cramer in NEW YORK. The problem with this statement by Cramer as recalled on January 22, 2009, is that Cramer made the statement on September 8, 2009. That was before the fall of AIG and Lehmann Bros. and promises of bailouts by the government. He predicted that before the stock market dropped to below 8000. I wonder if he has changed his mind about that. Let me know.



I certainly hope Jim Cramer is correct. It would be great if the market turned around in 2009!Just in case he is right, perhaps we should all start investing in the real estate market starting now. Contact me. I can help you find a good deal.

Chicago Real Estate and Social Networking

If you have read the news lately, you will know that the real estate market is slow due to the current economic situation. There is still some activity for those who can afford to take advantage of the great prices and historically low interests rates providing they can get a mortgage. I am still keeping in touch with clients and keeping them informed about properties but I find myself with a little extra time which I am using to upgrade my computer skills, help others with theirs and investigate the viral world of social networking.

I have been on myspace for a few years but now you can also find me on facebook and linkedin. I recommend that everyone become a part of the social networking community for fun and profit and when you do, be sure to follow me on twitter.

Chicago Real Estate/Why Buy Before July 1, 2009?

I recently shared 10 top reasons to buy a place before the end of the year and now here is some info for first time buyers. You may be qualified to receive up to a $7500 credit on your first time home purchase if you meet the guidelines!

C.A.R.(Chicago Association of Realtors) has prepared an easy-to-read “First-Time Homebuyers Tax Credit” FAQ sheet.

Here is the link: http://car.affiniscape.com/associations/6001/files/FAQ_Tax_Credit.pdf

Rubloff Chicago/Special Managing Broker

I agree with Eric Rojas. Darlene Little, managing broker at Rubloff is indeed very special as Eric states in Chicago Agent Magazine. Eric wrote:

"There are a few reasons that differentiate Darlene Little, my managing broker at Rubloff. First of all, Darlene is an accomplished leader within our industry and has been president of CAR. Her guidance and contacts come from the highest levels of our profession. Secondly, our managing broker is not actively selling real estate, which I believe makes her career advice more objective. And third, Darlene is simply a great lady to talk with and easy to approach; she gives it to you straight. "

To that, I would like to add that Darlene truly cares about all of her agents and will do whatever it takes to guide them to be the best. She will 'go to bat' for them when necessary and is a valuable professional in the Real Estate Industry.

Chicago Real Estate: Why Buy Now?

Timing Issues:

Seller’s that have been on the market for awhile are very motivated to make a deal and do not want to be on the market over the winter months.

Hard to predict the bottom of the market but worst may have passed ant the government is actively trying to revive the housing market and at some point they will succeed.

Rising dollar and dropping oil could indicate ending of current down cycle for housing.

A lower purchase price for the buyer who is waiting for further deterioration in value would be lost to increased mortgage rates.

Fewer buyers in the market make seller’s more flexible.

You must be actively “in the market” in order to take advantage of good deals and to be able to spot them.

Looming inflation will bring higher real estate prices.

Buyer’s have a greater selection of properties with current inventory levels and have to make fewer compromises to get what they want in this environment.

If you are renting, you are losing your homeowners tax break.

Tighter qualifications make a good buyer a precious commodity to would be sellers and therefore they command a stronger negotiating position.

Many predatory loan products have been taken away and consumers should have more confidence about not being duped into bad loan scenarios.

Rates are historically lower in the fall than in the spring.

Fed could increase rates to combat inflation.

And if you buy now you are smart. Real estate is still a safe investment

(suggested by Rubloff agents)

Staging Chicago Single Family Home

I went to a broker open house the other day in Hamlin Park (60613). The home is new construction and priced just under $1.4. This home was recently staged by a company out of the Chicago area. I know this company charged a move-in fee and a move-out fee for the furniture and they will also earn a percentage of the sale. The seller of his home will be paying almost alot for staging.

The problem with the staging (in my opinion) is that no consideration was given to the style of the house. The stager obviously bought all the furniture from a consignment store or estate sale. It looked old fashioned and used and did not match the home or the area. It does look like someone lives in this house though in reality it is vacant and never lived in. I now know that if a seller pays for staging, he should specify what type of decor he would like and not leave it up to the designer who might use just what he has on hand.