Home Builders Using Tax Credits to Woo First-time Home Buyers

Some home builders, are trying to grow sales in this slow market, hoping that a new law will bring buyers in their door. And many are adding incentives of their own.

Some builders are touting a $7,500 interest-free government loan for first-time home buyers that is contained in the recently signed Housing and Economic Recovery Act of 2008. Buyers have 15 years to repay Washington, and it covers purchases between April 9, 2008, and June 30, 2009.

And many hope to lure buyers, first-time or otherwise, with a controversial down-payment assistance program before it ends Oct. 1. This has come under fire because the buyer has no personal stake in the purchase when the down payment is provided by the seller and transferred through a charity.

Some companies, such as Lennar and Pulte Homes, are matching the $7,500 federal loan by lowering the price by that amount. Holiday Builders is offering the choice of a $7,500 discount or a 5.75% fixed-rate mortgage to qualified buyers.

Builders are making the changes known, meshing them with their advertising campaigns and telling customers at their model homes.

“For customers that want to take advantage of the down-payment assistance, that window is closing,” said Jay Mason, vice president of sales for Pulte Homes in Dallas-Fort Worth. The next few weekends will be important to home buyers seeking to close sales by the Oct. 1 deadline.

The new legislation covers a wide swath of the housing market, including changes to Freddie Mac and Fannie Mae, refinancing distressed borrowers into FHA loans and putting more homes within reach.

The day the law went into effect, the National Association of Home Builders put up a website explaining the changes.

Pulte’s Mason said he has heard from sales personnel that home buyers are reacting to the news of the $7,500 tax credit plus the lowered price.

Maybe now some that were thinking about buying a home will now have an extra push to get them off the fence.

Guide To Buying A Home

*PLANNING

Mortgages, inspections, APRs-oh,my! If the idea of buying your own home ties your stomach up in knots, just follow this road map and I'll walk you through every step of the process. Repeat after me: There's no place like home... To help make the right decision: Check out the "Buy vs. Rent Calculator" at ginniemae.gov, where you can plug in all the numbers and see a comparison. The results can be shocking. For example, if your paying $1,500 a month in rent and thinking of buying a place for $200,000 (with a 10% down payment), buying now could save you $110,000 over the next 10 years.

How much can you afford?

A mortgage calculator (like the one at mortgage-calc.com) is the simplest way to get a ballpark idea. You enter in the loan amount, interest rate, and the length and it gives you your estimated monthly payment. Just keep in mind that insurance, property taxes, and maintenance will add to your costs. If you want to find out for a certain what your upper allowable limit is: Get preapproved (NOT PREQUALIFIED)for a loan. Find a certified mortgage broker who will have you fill out a loan application. Based on your income, debt, and credit score, you will receive a letter stating the maximum amount a bank is willing to lend you. Bouns: Preapproval will give you an advantage over other buyers because the seller will know you definitely have the money available to make a purchase. Beyond the banks: Calculators and banks don't take your lifestyle into consideration. Do your own detailed budget that includes all nonessential expenses and talk to a tax pro to see how home ownership cann add up for you. Then ask yourself how much you can comfortably spend on your mortgage each month.

Down payments: Putting 20% down is great if you can swing it. You'll start with more equity, pay less total interest, and avoid some fees. But if you have high credit card debt, consider putting down less and using the rest to pay off your cards-mortgage interest is tax deductible, but credit card interest isn't.

If your broke: Don't panic! You are not a lost cause. Check to see if you qualify for a Housing Fincace Agency program in your state that helps first-time buyers (ncsha.org). Another option is to ask a family member or friend to lend you some money interest free, or to cosign a mortgage. You can also save by negotiating for the seller to pay closing costs, which can add up to 3% to 6% of the house price.

85% OF HOME

buyers used a

REAL ESTATE AGENT

to help them

during their search for

A HOUSE.

*TURN YOUR "I CAN'T" INTO "I CAN"

1 " I don't have enough money

FOR A 20% DOWN PAYMENT."

Some loans-especially for borrowers with excellent credit and finances-allow you to finance up to 90%, or even 100%, of the purchase price. Ask your broker about them.

2 "I'm waiting for the

MARKET TO IMPROVE."

Prices may not come down much more, interest rates could go up, and if you're renting now the immediate tax benefits you'll get offset and savings you would reap from waiting.

3 "I don't have a significant other

TO BUY A HOUSE WITH ME."

Neither do many people who buy homes. Get preapproved for a loan before you assume you can't afford it. And find a good mortgage broker who'll know creative ways to work with limited budgets.

4 "My credit

SCORE IS BAD."

How bad is bad? Scores are based on all kinds of information. You may be low just because your credit card balances are high-pay them down to a third of your limit. Go to credit.com for more information.

5 "I don't have time to

LOOK AT HOUSES ALL DAY."

"Then don't. A good Realtor (Dawn Strait) will be able to narrow down choices and email you all the pertinent data, including photos and complete descriptions. See only the ones you like."

CONTACT ME FOR ALL YOUR REAL ESTATE NEEDS:

Dawn Strait REALTOR® (864)-918-1799

*LOOKING

Where to start: Bury yourself in listings to get familiar with the market. Local newspapers, broker websites, craigslist.org, realtor.com ~they're all good. Or let me get them and email you with all the information you need. (Dawn Strait 864-918-1799)

How to find a good real estate agent: A buyer's agent represents you, whereas the listing agent, who appears on the ads, represents the seller. A buyers agent works for you as your personal project manager throughout the whole process. Start by asking friends and family if they have worked with an agent they would use again. Then check to see if they are a licensed REALTOR® (use realtor.com) REALTOR®s are generally your best bet, because as members of the National Association of Realtors, we have agreed to abide by strict code of ethics above and beyond what is required by law.

If your Realtor asks you to sign a buyer-broker agreement: This simple contract is the Realtor's way of ensuring we get paid our commission if we find you a house, and that you will use him exclusively.

While visiting homes: If you think you might be interested in buying a place, do not show your hand by saying things like, "This is very reasonably priced!" or "This is so much better than everything else I've seen!" Comments like these could make negotiating more difficult. Ask the sellers agent (or the seller if they are present) a lot of prying questions: For example: is the seller closing on another property and looking to wrap up quickly? Be sure to note the location: Is it near train tracks, an airport or frat house? Is the street so dark you'll be scared to come home late at night? Does it have desirable amenities, even those you don't need? (Picking a neighborhood with good schools, regardless of whether you have kids, will make the house easier to resell.)

*f/f: for fun

HOW TO DECIPHER HOUSING ADS

(And avoid disapointment).... The truth behind the jargon used to describe that "cute" "starter home" in an "exciting neighborhood."

ac:acre

a/c: air conditioning clsts: closets

converted 2 bedroom: one bedroom, half a livingroom, & a closet

br/bd: bedroom

bring your decorator: bring you wrecking ball

ba:bath

appls: appliances

charming/has charector: see "bring your decorator"

cute: small

desirable location:expensive

dk: deck

dr: drive-way

d/w: dishwasher

exciting neighborhood: next to nightclub

fdr: formal diningroom

FSBO: for sale by owner

gracious: totally meaningless

home office: room with no windows

lr: livingroom

no expense spared: tacky

occ: occupancy

partial views: if you lean out the window, you can see it

pkg: parking

peaceful/oasis: far from everything

showcase home: some decorator's twisted fantasy

spac: spacious

starter apartment/starter home: a grown-up should not live like this

stu: studio

terr: terrace

totally renovated: cheap fixtures and 49 coats of paint

unique: too weird to buy

w/d: washer/dryer

w/w cpt: wall-to-wall carpet

WHAT ABOUT HOUSES THAT ARE "FOR SALE BY OWNER"?

No broker?, No problem! Except: Keep in mind that Joe Smoe seller is not bound by any code of ethics, so he's not risking his real-estate license if, say he tells you the boiler is brand new when it's really 40 years old. Also, read your buyer-broker agreement: You might have to pay your broker's commission yourself- which is usually paid by the seller- if the owner is not working through an agent.

49%

OF PEOPLE

between ages

25 & 35

own their

OWN HOME.

CONTACT ME FOR ALL YOUR REAL ESTATE NEEDS:

Dawn Strait REALTOR® (864)-918-1799

10 Mistakes You Can Make When Selling Your Home

When you are getting ready to put your property on the market, there is a myriad of things to think about, to prepare for and to organize. Here is a short list of some of the pitfalls to watch out for.

Mistake # 1
Incorrectly Pricing Your Home
Every seller wants to net as much money as possible when selling their home. Unfortunately, a listing price that is too high often gets the seller less than a listing priced at market value. If your house is not priced competitively, people looking in your price range will reject your house in favor of other larger homes for the same price.

At the same time, the people who should be looking at your house will not see it because it is priced over their heads. Overpricing usually increases the time on the market and that adds to the seller's carrying costs. Ultimately, many overpriced properties sell below market value.

Mistake # 2
Failing to "Showcase" Your Home
Buyers are looking for homes, not houses, and they buy the home in which they would like to live. They buy emotionally and then back up that emotional decision logically.
Owners who fail to make necessary repairs and don't spruce up the house inside and out, touch up the paint and landscaping and keep it neat and clean, chase buyers away as rapidly as Realtors can bring them.

Mistake # 3
Staying at Home During a Showing
As I mentioned above, buying a house is an emotional decision. People like to "try on" a house and see if it is comfortable for them. This is difficult for buyers to do if you are present and even harder if you follow them around, pointing out every improvement you have made.
It will probably have the opposite effect you want. They may feel uncomfortable because they are intruding on your private space rather than making them feel at home. The best strategy is to leave the house when a prospective buyer is scheduled. Even a good Realtor knows that he won't "sell" the house - the house must sell itself. Once you have prepared your house for showing, let your house do its job.

Mistake # 4
Mistaking "Lookers" for Buyers
Folks who try to sell their home themselves always get more activity than houses listed with an agent... no question about it. Realtors will only bring qualified buyers and these will be fewer than if you open your front door to everyone who walks down the street.
Fully 96%* of the responses you receive on ads and open houses are not bona fide buyers. Seventy percent (70%*) have a house to sell first, 18%* live in the neighborhood and are interested in the value of their home and 8%* are just looking for decorating ideas or shopping.

That means that only 4 calls out of 100 are buyers that are ready and able to buy a home. These 4 prospects will look at an average of 18-23 homes before they buy.

Agents pre-qualify buyers before bringing them to your home. An agent does not get paid unless he or she helps someone buy a home. This makes it unproductive for a Realtor to show properties to unqualified prospects.

A Realtor will ask a buyer how much he can really spend for a house, how much he has to put down, how good his credit is, how much he can pay each month, how much he will realize when he sells his present home and about two dozen other similar questions.

Unless your Realtor finds out the facts first, you must ask all these questions before the buyer crosses your threshold. If not, you may end up with a parade of Sunday afternoon shoppers with a dream of owning a home some day.

Mistake # 5
Not Knowing Your Rights and Obligations
Real estate law is extensive and complex. A Purchase Agreement is a legally binding contract. If improperly written, the contract can cause the sale to fall through or cost you thousands of dollars for repairs, inspections, taxes and remedies for items included or excluded in the offer. You must be certain of which repairs and closing costs you are responsible for.
You also need to know if the property can legally be sold "as is" and how deed restrictions and local zoning will affect the transaction. If there are defects in your title or your property is in conflict with local restrictions, you or your Realtor must remedy them to avoid losing money.

Mistake # 6
Signing a Listing Contract With No Way Out!
Many times a sales representative will have good intentions about marketing your house but circumstances change. There might be a death in the sales representative's family or the sales representative may decide to quit the business. In these cases where the sales representative couldn't or wouldn't perform, you must have the right to fire your sales representative. In some companies, the broker will assign your listing to someone else in the office, someone you didn't personally select. Always protect yourself by getting a guarantee of performance with the right to cancel.
If you are not 100% satisfied with the service I provide, I will cancel your listing no questions asked.

Mistake # 7
Limiting the Marketing and Exposure of the Property
The two most obvious marketing tools, open houses and ads in the Homes Magazines, are very ineffective. Surprisingly, less that 1%* of all homes sold are sold at an open house. Agents use them to attract future prospects, not to sell your house.
Advertising in newspapers and magazines sell only 3%* of all homes sold. Some ads are better than others (ask about my direct marketing ads). You need to spend your advertising dollar on effective marketing. To find out what is effective, you need to understand the philosophy of advertising and then you need to test your ads. Test the publication, test the placement, test the text, test the pictures and then quantify the results into a coherent marketing strategy.

Forty percent (40%*) of homes are sold through sales representative's contact or firm name recognition. Twenty percent (20%*) are sold through the "For Sale" sign that sits in your front yard. Eighteen percent (18%*) of all houses are sold through "Direct or indirect" referrals and since most sales representative's pay no attention to this source at all, just imagine what percentage it could be if you had a systematized plan to attract these referrals.

Mistake # 8
Believing that a Bank Appraisal is the real Market Value
An appraisal is an opinion of value that is used for a particular purpose. If a lender wants to lend you money (say on a 2nd mortgage or refinance), they may be motivated to make the appraisal come in high. The appraiser may ignore foreclosure, distress sales or highly motivated sellers in order to justify a higher price.
Unfortunately, a real buyer in the real world will not ignore these properties. These properties will, in fact, be your competition. Don't make the mistake of thinking that the value you were given even 6 months ago when you refinanced is what a real buyer would pay. The value of your home must be determined by what comparable houses in your neighborhood have sold for. Look at all of the SOLDS in the area and then decide.

Mistake # 9

Not having enough information

Not knowing all of their legal rights and obligations. Real Estate law is complex. The contract that you will sign when selling your home is legally binding. Small items that are neglected in a contract can wind up costing you thousands of dollars. You need a Consultant who is knowledgeable, professional, and who understands the in's and out's of real estate transactions.

Mistake # 10
Choosing the Wrong Realtor
It is likely that you don't interview people very often but, in order to find the right Realtor you may interview several. The quality of your home selling experience is dependent upon your skill at selecting the person best qualified.
Getting an experienced, competent sales representative with your best interests in mind generally costs the same as hiring someone who is inexperienced. Bringing that experience to bear on your transaction could mean a higher price at the negotiating table and selling in less time and with a minimum of headaches.

There are many Realtors who are wrong for you. For example, the part-time agent who sells an occasional house because they need a little pocket change or the insurance salesman who believes he can handle two careers or perhaps your cousin George who really needs your business.

The sale of your home could be the most important financial transaction you will ever make. The person you select can make it a satisfying and profitable activity or a costly, terrible experience. It is your home and your money... the choice of your Realtor is up to you. Make your selection wisely.
* Statistics from the National Association of Realtors

Let's Talk Straight
I want you to know that I only work with serious sellers. In fact, my straight forward style isn't for everyone - but it's just what the doctor ordered for most people. I would love to get your home sold for you and I am very interested in earning your business.

So What Do You Do NOW?

Call me direct at 864-918-1799. There is no obligation and I'll be totally straight with you. Even if you don't list with me, I guarantee it will be time well spent.

Crosby & Duncan

I started my part-time job at Palmetto Home and Garden and I LOVE it! I really had a great time. I've had the last 4 days off and then I start back at Palmetto tomorrow. You don't have any breaks except 15 mins. for lunch so I should lose some weight after a while of this. That is if I don't go crazy on my days off. I walk the whole time while I'm there and my feet really hurt when I get home but it's still a great job. I have more pictures from the home on Powder Springs plus a couple of some on another listing to post, they are from the home on Crosby Lane.

Crosby Lane house:








The Duncan house:

137 Powder Springs Rd Duncan, SC

These are pictures of the kitchen after we went in and did an over haul. It looks really good don't you think? The before pictures are below these.

The Palmetto Home and Garden Store

I recently have went out and got myself a p/t job at the Palmetto Home store. I start Monday 14th of July and I'm so excited. I know I am going to love working for such wonderful people and I love the store. Stop by to see me if your ever out that way.

2422 Laurens Road
Greenville, SC 29607
864-234-4960

The Federal Reserve

AP
Fed plans new rules to protect future homebuyers
Tuesday July 8, 9:46 am ET

Fed plans new rules to protect future homebuyers from dubious lending practices

WASHINGTON (AP) -- The Federal Reserve, trying to stabilize a shaky U.S. financial system, may give squeezed Wall Street firms more time to tap the central bank's emergency loan program, chairman Ben Bernanke said Tuesday.

And, in an effort to prevent a repeat of the current mortgage mess, Bernanke said the Fed next week will issue new rules aimed at protecting future homebuyers from dubious lending practices.

The rules will crack down on a range of shady lending practices that has burned many of the nation's riskiest "subprime" borrowers -- those with spotty credit or low incomes -- who were hardest hit by the housing and credit debacles. The plan would apply to new loans made by thousands of lenders of all types, including banks and brokers.

It would restrict lenders from penalizing risky borrowers who pay loans off early, require lenders to make sure these borrowers set aside money to pay for taxes and insurance and bar lenders from making loans without proof of a borrower's income. It also would prohibit lenders from engaging in a pattern or practice of lending without considering a borrower's ability to repay a home loan from sources other than the home's value.

In an extraordinary action, the Fed in March agreed to let investment houses go to the Fed -- on a temporary basis -- for a quick, overnight source of cash. Those loan privileges, which are supposed to last through mid-September, are similar to those permanently afforded to commercial banks for years.

"We are currently monitoring developments in financial markets closely and considering several options, including extending the duration of our facilities for primary dealers beyond year-end should the current unusual and exigent circumstances continue to prevail in dealer funding markets," Bernanke said in prepared remarks to a mortgage-lending forum in Arlington, Va.

The Fed's decision to act -- temporarily at least -- as a lender of last resort for Wall Street firms was made after a run on Bear Stearns pushed the investment bank to the brink of bankruptcy and raised fears that others might be in jeopardy. It was the broadest use of the Fed's lending powers since the 1930s.

Bear Stearns was eventually taken over by JPMorgan Chase & Co., with the Fed providing $28.82 billion in financial backing.

Those controversial decisions have drawn criticism from Democrats in Congress and elsewhere that the Fed is bailing out Wall Street and putting billions of taxpayer dollars at risk.

Bernanke, in appearances on Capitol Hill has said he doesn't believe taxpayers will suffer any losses.

In his speech Tuesday, the Fed chief defended those actions anew. If the Fed didn't intervene, he said, problems in financial markets would have snowballed, imperiling the country.

"Allowing Bear Stearns to fail so abruptly at a time when the financial markets were already under considerable stress would likely have had extremely adverse implications for the financial system and for the broader economy," Bernanke said to the mortgage forum, organized by the Federal Deposit Insurance Corp.

The Fed's consideration of giving Wall Street firms more time to tap the Fed's emergency loan program is part of an ongoing effort by the central bank to bring back stability to fragile financial markets and help to bolster shaky confidence on the part of investors.

Policymakers -- in the White House, in Congress and other federal agencies -- will need to work together to come up with ways to make the U.S. financial system more resilient and stable and to prevent a repeat of the types of problems that brought about the end of Bear Stearns, an 85-year-old institution, Bernanke said.

Although those efforts are already under way, it will fall to the next president and next Congress to settle them.

The Bush administration has proposed revamping the nation's financial regulatory structure. That plan would make the Fed an ubercop in charge of financial market stability. But the Fed would lose daily supervision of big banks. Bernanke said the Fed must maintain this power if it is to be an effective overseer of financial stability.

The Fed, which regulates banks, and the Securities and Exchange Commission, which oversees investment firms, announced an information-sharing agreement on Monday aimed at better detecting potential risks to the financial system.

Over the longer term, though, Congress may need to adopt legislation to bolster supervision of investment banks and other large securities dealers, Bernanke said.

Bernanke recommended that Congress give a regulator in the future the authority to set standards for capital, liquidity holdings and risk management practices for the holding companies of the major investment banks. Currently, the SEC's oversight of these holding companies is based on a voluntary agreement between the SEC and those firms.

"Strong holding company oversight is essential," he said.

Bernanke also said that a growing number of central banks in recent years have been given the statutory authority to oversee systems for processing financial transactions by securities firms as well as overseeing traditional banking transactions. "A strong case can be made for granting the Federal Reserve explicit oversight for systemically important payment and settlement systems," he said.

And, the Fed chief favors looking into an idea -- raised by Treasury Secretary Henry Paulson -- to create formal procedures to make sure that if an investment firm fails it won't wreak havoc on the broader economy. Such procedures, which allow for a more orderly liquidation, are in place for banks.

The housing, credit and financial crises have bruised the economy. Growth has slowed and employers have cut jobs every month so far this year.

Bernanke said that "it is unrealistic to hope" that financial crises can be entirely eliminated, while maintaining an innovative financial system. "Nonetheless, recent experience has illustrated once again that financial instability can have serious economic costs," he said.