ComeBuyAHouse.com

Other Tax Exemptions I Should Know About?

Question:
I’m about to buy my first house and all I hear about is what a good time it is to buy… I know that you can get the 8k credit or do the 0% down FHA loan, but are there any tax exemptions or any grants that I should be trying to apply for?

Just wondering if anyone has stumbled across anything? Are there any other Government handouts for first time home buyers besides FHA?

(We answered on Zillow)

Answer:
Hi, As a first time home buyer you will qualify for the $8000 credit, and could get an FHA loan. Most loans will require the borrower to have a small down payment, FHA is now 3.5%. There are programs available, state by state, that are supported by state bonds or non-profit groups that offer down payment assistance or low rates or special financing programs. Your best bet would be to look for a loan officer that specializes in first time home buyers and knows about such programs. I’m in Washington State where there is a program called the “House Key”. You attend a class for home buyers, which will fill you in on all the requirements of receiving the assistance. Often the loan program will also require you to stay in the home for a specific length of time, presumably so that you will have built some equity. Also the lender doesn’t make money as fast with the lower rate or the longer term that is offered. I put this search statement into Leapfish.com search engine, “[your state] first time home buyer programs” and came up with some good results. That will give you some programs to ask loan officers about.

Good luck!
Lynette Hensley — Associate Broker

How can I understand the sales history of a foreclosed home?

Question:
I’m looking at the sales history of a foreclosed home that has been in the market for quite some time. It shows 6 different file dates –one in 2004 another in 2005, 2 in 2006 and the last one in 2008. What do the abbreviations under “Instr Type” mean–TRD, D/T, WD, and SWD? What do these all mean?

Answer:
Your Question:”Instr Type” mean–TRD, D/T, WD, and SWD?

Instrument type–the type of deed that conveys ownership

The types of deeds available and their means of conveyance vary from state to state.
TRD = Trustee Deed or Deed of Trust A trustee’s deed is often used in bankruptcy
D/T = Deed of Trust — this is the deed that allows the lender to have an interest in the property
WD = Warranty Deed — this is the deed that is most often used to convey property from seller
to buyer in a purchase transaction
SWD = Special warranty Deed — this is used in REO/bank owned/Repo or foreclosure sales where the property is held for a very short time, and not occupied by the seller. It’s warranty only warrants the period of time that the seller has owned the property.

Caveat: This is general information only, when dealing with deeds and foreclosures, it’s wise to have legal assistance beyond your real estate professional.

Lynette Hensley — Associate Broker

(Asked and answered on Zillow)

Contingency with no Bump Clause

Question:
I am looking at a home in [state], and it is contingent with no bump clause. If I were to make a second offer how long does the contingent buyer usually have under contract to come up with the money?

Answer
Have your agent call the seller’s agent and ask how long the contingent period is. It totally depends on what the buyer and seller have agreed to.

Lynette Hensley–Associate Broker

(Asked and answered on Zillow)

Tax Credit for 2010?

Question:
If I don’t make the deadline for the 2009 tax credit, are there going to be tax credits for first time home buyers for 2010? (Asked and answered on Zillow)

Answer:
We haven’t heard any news about a tax credit for 2010 yet, so I would not count on it. The deadline for the current credit is that the transaction must close by December 1, 2009.

Lynette Hensley, Associate Broker

Financing Closing Costs?

Question:
I have a situation where my father was going to gift me $8000 for closing costs. We are done with attorney review and now my dad is saying he can’t help me out.

Without the 8k I don’t have the money for closing. I have two solutions. First is my state has a prefund tax credit program where they will lend 5k in an interest free loan. The last 3k I can get from my father-in-law.

The second option, and this is where I need your guidance, is to go back to the sellers to see if they will increase the price by 8k and give me a 8k seller credit. Is this even possible? Is it something that happens often? Thanks. (Asked and Answered on Zillow)

Answer:
Yes, it happens quite often. There are a few challenges to understand as you choose this path.

1. You need to get the seller to agree. Adding $8000 to the price will not increase the seller’s proceeds, as you will be asking for that back towards your closing costs. However, it will increase the seller’s costs slightly, commissions, excise tax etc, (any applicable in NJ). (I’m in WA)

2. The house must appraise for the higher amount. If your appraisal is already done and isn’t high enough to accommodate the $8000, you might be best going your other route for the $8000 in this transaction. If you haven’t yet had your appraisal, get the negotiating done first with the seller then get your appraisal with the new price.

Keep your loan officer in the loop as your loan program may or may not allow seller contributions. Most do allow that.

Best of luck!
Lynette Hensley, from the ComeBuyAHouse.com team with Larry Baumgartner.

Go Green — It’s Easy to Do

Go Green

Here are some things you can do in your home….

Replace regular inefficient light bulbs with compact fluorescent light bulbs (CFL’s).  A CFL is 70-75% more efficient and although they cost a little more up front, you save on your electric bill over time and these bulbs last 8-10 years!  If every family replaced one bulb with a CFL, it would be like reducing carbon emissions from 800,000 cars.  Have a light bulb moment and change one light bulb.

We each use 2,200 paper napkins a year on average, which translates to a little over six napkins a day. If we all gave up one napkin a day and substituted it with a cloth napkin, we could save a billion pounds of paper waste from going into landfills each year.

When you buy one liter of water at the store, you’re actually buying about six liters of water.  When manufacturers make plastic bottles, it take five liters of water to cool the plastic.  Some plastics can make your water taste like plastic and leach harmful chemicals into your body.  If your water tastes like plastic, you are ingesting plastic. An alternative idea is to purchase a water filter and a reusable aluminum or plastic bottle.  Look on the bottom of the plastic bottle for  a small triangle with a number in the middle. If you see a number 2, 4 or 5, the bottle is safe.

The average American can use up to 24 gallons of water per shower.  Put a timer in your shower and try to keep it to 5 minutes.

Clean the lint trap in your dryer after every use.  This can reduce the energy use by up to 30% per load.

To cut down on the amount of dishwasher water usage, choose a different colored cup for each family member to use throughout the day.

Even after turning off a computer or television, power can continue to flow at up to 40% of the power used when the screen is on. Using a power strip stops the energy from being wasted and provides surge protection.

Use environmentally safe cleaning products that are dye and perfume free, nontoxic, biodegradable, naturally derived and not tested on animals.  Seventh Generation, Shaklee, Method Home and Mrs. Meyers are a few that are recommended.

Avoid using plastic Ziplock® bags for storage.   Plastic bags can sit in a landfill for over 40 years.  Better alternatives are re-usable glass containers with plastic or glass lids.

Bring your lunch to work in reusable plastic or glass containers instead of plastic wrap, plastic bags or aluminum foil.

Content provided by First American Title Insurance Company

May 2009 Seattle Area Market Updates

KING COUNTY
In King County, number of sales increased by 30.6% over April which is a sharp rise month over month.  First time homebuyers carry the day, and we are experiencing a sharp uptick in activity in our own business as well as hearing the same from other area professionals.  Multiple offer situations are common on the lowest price range homes as well as bank owned homes in most price ranges.  Competition is sharp for bank inventory as it’s released onto the market.  Well maintained move-in ready homes are also at a premium, and competition is fierce in the $150- 350K price ranges with multiple buyers for desirable properties.  From May‘08 to May ‘09 average prices are down 14.77%. 

SNOHOMISH COUNTY
In Snohomish County, the number of sales rose 26.7% from March ‘09.  The average price of a residence is 11.42% lower than May ‘08.  The rate of price drops is slowing.

Please remember that these numbers are county wide trends, and that real estate pricing is very localized and can also be affected by the owner’s situation.
Please call us for a closer look at properties that interest you.

Lynette Hensley

Here are downloadable PDF’s:
Real Estate Market updates for King, Snohomish Counties:
King County

Snohomish County

Compiled by our title partner, from MLS statistics.

Lynette Hensley, Associate Broker, Realtor
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Seattle Public Utilities Refund

It’s all about fire hydrants.  Washington Supreme Court ruled that the city of Seattle must reimburse SPU for the cost of fire hydrants from 3/1/2002 to 12/31/2004. Seattle Public Utilities in turn must reimburse the costs to the customers who had active accounts during that time.

If you had an account and still do, it appears you will simply receive a credit on your bill.  If you don’t have an account anymore, you will need to apply for the refund.  Of course there will be a surcharge added to everyone’s water bill for 1.75 years.

Check out the notice at Seattle Public Utilities for details.

Water saving measures you can take:

• soaker hoses instead of sprinklers
• don’t pre-rinse dishes
• do laundry only with full loads
• shower instead of taking baths
• turn off the faucet when brushing teeth or shaving
• change to an efficient shower head
• check for leaks at sinks and toilets
• Save the water that runs while waiting for hot water. Use to wash produce, cleaning, watering plants.
• for warm water, turn hot water on first, then add cold water as needed.
• don’t use the garbage disposal, compost.

This info compiled from SavingWater.org

Lynette Hensley
Associate Broker

Doggie Days in Real Estate

Larry Loves Doggie Days!

Larry and I always seem to attract animals and small children.  Cats, Dogs, babies…they have their similarities–a blatant lack of judgment, I suppose!

Here’s a link to photos of some of the doggies we’ve encountered!  One was an interesting breed we had not yet heard of, good for allergy sufferers, (but not for children), called Coton de Tulear.  One shows up in the pictures, linked above. Apparently they have a cottony coat — hence the “Coton” in the name.  And they don’t shed much.

These photos are from an encounter in front of Vivace Espresso in South Lake Union.

Other notable animal encounters include the sweet doggies that an agent told us were very friendly, would make lots of noise but not hurt us.  However, we were glad that day not to have any small children touring with us–Larry got bit by one of the “friendly” dogs.  This kind of encounter is very rare, thankfully!

Yesterday we met two very lovely cats with luxurious Siamese markings and long fur. They seemed to be related–almost blending into one another on the bed in the master suite.  The dog of the house just loved Larry.  I think he was about the same size as the cats and wore a long gray mustache and beard.  Very cute like a little bearded man.

One of our faves though, is Whitty, Jane’s dog who now lives in West Seattle.  Whitty spent long hours with us, looking for the best home for Jane.  Whitty’s a purse sized dog who just loved to stand on Larry’s forearm and look out the front window to see just where we were going next.  From time to time he would sneak a lick on to Larry’s face.  In return, Whitty took it all in stride when Larry sniffed his little fringed black ears.

And then there’s the Cathie’s, our friends from South Africa, who have three animals–all with the same color hair as dad, and wonderful compatible temperaments, AND a fantastic kidlet.  Lovely.

Dogventures.

What fun!

Lynette Hensley
Associate Broker

First Time Homebuyer Tax Credit

Realtors are working hard to make it possible for first time homebuyers who are eligible for the tax credit to be able to use that $8000 at closing.   As of right now, it’s simply a tax credit, which you can take while filing your 2009 taxes, or you can revise your 2008 taxes, or if you haven’t yet filed for 2008, you can take the credit there.

There are income limitations, and you must live in the home for three years or pay the credit back.  But all in all, it’s a great deal!  I’ve included a link to a PowerPoint presentation with loads of details.  Do you qualify?

Link to an explanation of the credit

Link to the IRS form to take the credit

Lynette Hensley
Associate Broker