market conditions

Are You Ready to Be a Home Buyer?

A reader asks: “I would like to be a home buyer, but I don’t know if I’m ready to buy a home yet. How can I tell? Part of me is frightened that I’ll lose my home or won’t be able to get a mortgage. I’m 26, single and gainfully employed. Does it make sense for me to be a buyer? I mean, how do I know if I am ready to be a home buyer?”

Answer: Buyers of real estate are making the biggest investment they will most likely ever make in their lives. That can be scary for some buyers. In some states, buyers are personally liable for the mortgage.

When my husband and I bought our home in Sacramento, he was totally freaked out for a while. He walked around repeating to himself, “I owe a quarter of a million dollars.” He was more focused on the debt than on our huge amount of equity.

Many first-time home buyers put down a minimum amount and buy a home using an FHA loan. This means your home is leveraged, and you cannot immediately sell it and hope to make a profit. It’s a commitment. A long-term commitment, in most markets.

For more information contact The Laura MacDonald Team at 636-394-9300

Major Price Reduction – 952 Kimswick Manor 63011

Come quick – this is a REAL value!

952 Kimswick Manor  (Ballwin 63011) $635,000  4,135 5-BR 4.5BA MLS# 90020278

Curb appeal is just the beginning! Great home for entertaining. The 2nd entry features hardwood floors, Palladian windows, T-staircase, casements, millwork and moldings enhance the main floor. Formal dining room, living room opens to family room which has rich dentil moldings, fireplace, bay and built-ins. The kitchen has 2 islands, granite countertops, walk-in pantry and hardwood floors. Upstairs is a great master suite, jack & jill bath for bedrooms 2 & 3 and private bath for bedroom 4. The lower level has 5th bedroom, bath, billiards room, rec room w/fireplace, custom bar, walk-in wine cellar and is a walk out to inground pool. Details are endless, must see!

Don’t wait – call me TODAY to schedule a private showing!

The Laura MacDonald Team – 636-394-9300

President Signs Bill to Expand and Extend Homebuyer Tax Credit

Yesterday, the U.S. Senate and House of Representatives passed an unemployment insurance bill, which includes an amendment that expands and extends the homebuyer tax credit. That bill will be sent to President Obama for his signature in the next day or so. I have included below the news release NAR issued on this issue, as well as comparison chart and some FAQs on the tax credit that can be a helpful resource as you work with buyers to take advantage of the credit in the coming months. 

In addition, NAR President Charles McMillan has just issued a special edition of the President’s Podcast on the homebuyer tax credit. You can access his podcast by visiting http://www.realtor.org/about_nar/presidents_report/_podcast_archive/mcmillan_taxcreditextended_20091105.

This is an historic moment for our industry as well as the culmination of more than a year’s worth of hard work and meetings with elected officials and policy makers on the part of Realogy management. Our voices were heard in Washington, D.C., and we should be proud that our government is taking strong action to help our industry and the economy. Having an extended and expanded Homebuyer Tax Credit available to qualified homebuyers through the first half of 2010 undoubtedly will benefit our business and the U.S. economy. 

Tax Credit Extension a Positive Step Toward Sustained Real Estate Recovery, Say Realtors® 

WASHINGTON (November 5, 2009) – The National Association of Realtors® today commended the U.S. Senate and House of Representatives for passing a bill that includes an extension and expansion of the current home buyer tax credit as an important step in ensuring a real estate and economic recovery.   

“Realtors® appreciate the swift action by Congress to extend the home buyer tax credit and expand it to some current homeowners,” said NAR President Charles McMillan, a broker with Coldwell Banker Residential Real Estate in Dallas-Fort Worth. “As the leading advocate of housing and real estate issues, we urge President Obama to sign this legislation into law quickly to keep the momentum going in the fragile recovery of the nation’s housing market.” 

McMillan praised the efforts of several senators to put the recovery above politics. They are Sen. Johnny Isakson, (R-Ga.); Senate Majority Leader Harry Reid (D-Nev.); Finance Committee Chairman Max Baucus (D-Mont.); Sen. Chris Dodd (D-Conn.), chairman of the Banking, Housing and Urban Affairs Committee; and Sen. Joe Lieberman (I-Conn.), chairman of the Homeland Security and Governmental Affairs Committee. 

NAR economists estimate that the current tax credit has contributed approximately $22 billion to the general economy, and approximately 2 million people will take advantage of the tax credit this year. 

“The substantial rise in home sales we’ve seen over the past few months proves that the tax credit is working and is being used by buyers who were waiting for the right opportunity to get into the market,” McMillan said.  “This important incentive is helping to stabilize the housing market, stimulate the economy and create new jobs in communities all across our great nation.  Extending and expanding the home buyer tax credit will enable even more families to take advantage of current low interest rates and affordable prices to invest in their future through homeownership.” 

The bill would extend the present $8,000 tax credit for first-time home buyers through April 30, 2010. Current homeowners are eligible for a $6,500 tax credit through April 30, provided they have lived in the home they are selling, or have sold, as principal residence for five consecutive years in the past eight years. If potential home buyers have a binding contract on or before that date, they will have until July 1 to close the transaction. 

Income limits for eligible home buyers are expanded to $125,000 for single buyers and $225,000 for couples. The purchase price of the home cannot exceed $800,000.  To help guard against fraud, buyers are required to attach documentation of purchase to their tax return. 

Detailed information about provisions in the tax credit legislation is available on Realtor.org.

The National Association of Realtors®, “The Voice for Real Estate,” is America’s largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

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Information about NAR is available at www.realtor.org. This and other news releases are posted in the News Media section.

Senate Close to Replacing Homebuyer Tax Credit

As qritten by Dawn Kopecki and Ryan Donmoyer 

Oct. 27 (Bloomberg) — U.S. Senate leaders moved closer to an agreement replacing an expiring $8,000 tax credit for first- time homebuyers with a smaller one that would expand access to so-called step-up purchasers, two people familiar with the matter said. 

The deal would reduce the size of the tax credit to 10 percent of the sale’s price, capped at $7,290, the people said. The credit would be available on home purchases that are under contract by April 30, and borrowers would have 60 days more to close the sale. The existing credit is due to end Nov. 30. 

The new agreement, which is still being negotiated and may change, would grant the credit to borrowers who have lived in their current home for at least five years. Lawmakers want to keep home sales from slipping as the economy struggles to recover from the worst drop in home prices since the Great Depression. 

The demand for new homes and condominiums may increase by “more than two times because you’re allowing step-up buyers into the equation,” said Andrew Parmentier, a managing partner at Height Analytics, a research firm in Washington. “ You just opened up a whole new pool of people who can buy into those empty homes and empty condos that were built out.” 

The income eligibility for first-time homebuyers would remain the same at $75,000 for individuals and $150,000 for couples. The income criteria for step-up buyers would be $125,000 for individuals and $250,000 for couples. 

The credit would be limited to homes costing $800,000 or less. There is currently no price cap on home purchases. Unemployment-Benefits Bill Lawmakers are trying to attach the legislation, which is also being considered by leaders in the House, to a bill extending unemployment benefits under debate on the Senate floor, said Richard Durbin of Illinois, the Senate’s No. 2 Democrat. 

Senator Bill Nelson, a Florida Democrat, told reporters yesterday of the tax credit that “we should be able to extend that later this week.” Nelson was traveling with President Barack Obama on Air Force One to a speech in Jacksonville, Florida. 

Lawmakers are also considering pairing the new homebuyer credit with a broader tax benefit for businesses with net operating losses, and passing that as a separate bill. The tax break, a priority for homebuilders, would allow companies to apply losses incurred in 2008 and 2009 to amend up to five years worth of earlier tax returns to get a refund of taxes paid in years when they were profitable.

That provision, along with the step-up, would be “extremely positive for the homebuilders,” Parmentier said. 

A version of the benefit was included in February’s economic stimulus bill, though it was limited to companies with receipts under $15 million. Business groups, including the Washington-based National Association of Manufacturers and National Association of Home Builders, lobbied unsuccessfully to have the benefit expanded to larger companies.

How to Set the Asking Price

Glink recommends listing your home at or below the competitive market price. If similar houses similar are priced at $300,000, list yours for $295,000 to generate an extra level of interest. “I guarantee you’re going to get a stream of people through the door,” she says, “and you may even end up with more money because you’ll get into a competitive bidding situation.”

You also need to be ready to respond quickly to changing market conditions. “The market today is not kind to someone who waits too long to lower the selling price,” says Warkentin. He sees buyers walking away from houses selling for $650,000 because the seller won’t come down a couple of thousand dollars — an insignificant amount considering the overall transaction. “A drop in price means a great deal right now,” he says.

Open This Sunday! 10-25-09

827  Castlebar Ct,  Manchester, MO  63021     $369,900  3BR  3.5BA  2,992 SF  MLS# 90051393

OPEN Sunday 10/25 1:00 – 3:00 PM   

Dynamite 1.5 story, w/great curb appeal and tons of updates. Open floor plan. vaulted great room, gas fireplace, wet bar & skylights. Kitchen remodeled in 2006 w/silestone counters, custom pantry by St. Louis Closet & ceramic tile.  Balcony & loft overlook great rm. Lower level w/custom wet bar & cabinetry, playroom (13×11), work out room (13×11) and more! Exterior paint & custom landscaping 2009, 30 year arch. shingles 2002, systems 2001. You must run and see this one!!  More here: http://bit.ly/4cWI2i  

333 San Angelo Dr. Chesterfield 63017      $289,900 4-BR  3-BA  1,985 SF MLS# 90042801

OPEN Sunday 10/25 2:00 – 4:00 PM 

Awesome ranch beckons pride of ownership from the curb & throughout. Beautiful park-like yard adds value for this price range, location, & Parkway Schools! Updates include newly re-finished hardwood, updated kitchen w/custom cabinets & ceramic tile floors. Newer A/C furnace, 6 panel doors, windows, roof, gutters, garage door & paint throughout! Plus custom California closets in all bedrooms. Finished lower level has rec room, full bath, play area, plus an office or possible guest bedroom. Carpet just replaced in LL. Main floor family room w/fireplace & covered porch & patio. Must See!  More here:  http://tinyurl.com/n9yvhu

631 Winter View Circle  Fenton 63026     $540,000  5-BR, 5BA  3,510 SF MLS# 90042690

OPEN Sunday 10/25 1:00 – 3:00 PM 

Outstanding home w/attention to detail Beautiful hardwood flrs on main level, extensive archways & encased millwork, glazed med maple cabinetry, open flr plan, great for entertaining! Newly added low maint. screened deck leading to exposed deck for BBQ. 42” kit. cabients, center island w/raised bar, gas range & oven, dishwasher, planning desk, roomy main flr laundry. The living rm is open & bright w/gas fpl. Master retreat has bay, box ceiling w/millwork, dbl vanity, luxury bath & walk-in closet. Walk-out LL w/possible 5th bedrm, rec rm & full bath.  Too much to mention, seeing is believing! More here- Open 10/25 1-3 http://bit.ly/23NWdT

Four Fabulous Listings OPEN This Sunday!

The Laura MacDonald Team has four fabulous homes being held open this Sunday, October 18, 2009 from 1:00 – 3:00 PM – stop by and take a peek – can’t wait, call Laura today at 636-394-9300 Photos are in the order listed below.

For more information and photos, see the individual blog postings by property.

830 Courtwood Lane ($550,000) 4BR 3.5 BA #90015988
Ballwin, 63011

Elegant home in fantastic location minutes from everything. 2 story foyer with elegant millwork, elevated bay windows, open balcony. Additional impressive features include built-in bookcases, remodeled powder room, granite in kitchen which features walk-in pantry, center island, vaulted and skylight. Sunroom off kitchen overlooking great backyard. Partially finished lower level with wet bay, full bath, rec room, and possible bedroom. The list goes on! Must see!

420 Iron Lantern – Ballwin 63011 $219,000 3-BR, 2-BA 1,701 Sq. Ft. MLS# 90041933

Gorgeous home on park-like lot! Freshly painted exterior. Great open floor plan with hardwood floors. Master bedroom features updated master bath with vanity and tile, shower doors and tile surround. Carpet in lower level installed 09, lots of built-ins. Family room w/lovely masonry fireplace. New range getting installed. Sought after Parkway Schools. The list is endless.

538 Inverrary Ct. Eureka, MO 63025 – $675,000 5-BR; 3-BA, 6400 SQ MLS 90039231

Elegant executive home with breathtaking views of the fairway. Multitude of custom features in this full brick 1.5 sty w/professionally finished walkout lower level. Interior boasts vaults, 10ft ceilings, coffered & an open floor plan that beckons entertaining. 2 sty foyer is flooded w/natural light, study w/French doors & coffered ceiling is perfect. The Great Room is vaulted, with a gas fireplace. The kitchen has an abundance of cabinets, center island, breakfast bar, breakfast room which opens to the covered deck. The master is spacious with its own sitting room, unbelievable master luxury bath w/glass block walk-in shower, oversized Jacuzzi Tub, double vanity & Tile flooring. Upstairs you will find 2 private bedrooms w/private bath & the kids have their own bonus room perfect for so many functions. Lower level has 2 additional beds, full bath, 1/2 bath, huge recreation room w/fireplace & custom wet bar. It’s a must see!

952 Kimswick Manor (Ballwin 63011) $699,000 4,135 5-BR 4.5BA MLS# 90020278

Curb appeal is just the beginning! Great home for entertaining. The 2nd entry features hardwood floors, Palladian windows, T-staircase, casements, millwork and moldings enhance the main floor. Formal dining room, living room opens to family room which has rich dentil moldings, fireplace, bay and built-ins. The kitchen has 2 islands, granite countertops, walk-in pantry and hardwood floors. Upstairs is a great master suite, jack & jill bath for bedrooms 2 & 3 and private bath for bedroom 4. The lower level has 5th bedroom, bath, billiards room, rec room w/fireplace, custom bar, walk-in wine cellar and is a walk out to inground pool. Details are endless, must see!

Great Homes to Visit This Weekend

This is going to be a great weekend to look for your NEW home!  May we suggest…(Click on the links for more information about these fabulous homes!)

633 Pine Rise (63017) 3BR 2.5BA 2,529SF MLS# 90049526  http://tinyurl.com/kud89f ;

830 Courtwood (63011) 4BR 3.5 BA #90015988 http://bit.ly/LsKgD;

420 Iron Lantern (63011) 3-BR, 2-BA 1,701 Sq. Ft. MLS# 90041933 http://bit.ly/14QWnc;

538 Iverrary (63025) 5-BR; 3-BA, 6,400 SF MLS 90039231 http://bit.ly/3IXBcW; or

952 Kimswick Manor (63011) 5-BR 4.5BA 4,135 SF MLS# 90020278 http://bit.ly/Q8JCe

Market Update From The Laura MacDonald Team

Form a market point-of-view, buyers are considering foreclosure home opportunities and we are finding multiple bids and they are on the market for a shorter period of time.

Buyers also want to take advantage of the First Time Home Buyer’s Tax Credit which expires November 30th, although there is talk about an extension in Washington, DC.

Locally, I have seen increased activity on both the buyer and seller side of the market, and some easing in the mortgage lending industry as it relates to the rate of loan closures.

If you’ve been thinking about selling or purchasing a home, now is the best time to consider all your options. Contact The Laura MacDonald Team for a no-obligation consultation to consider your real estate goals. For more information about the home selling process visit: http://lauramacdonaldteamblog.com/get-more-for-your-home/

For more information about the First Time Home Buyer’s Tax Credit visit my blog: http://lauramacdonaldteamblog.com/decision-time-draws-near-for-first-time-buyers-credit/

 

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