Thinking of relocating to MacDill AFB in Tampa? Here’s a great article on the benefits for first time home buyers for military personnel
Armed service, intelligence service and foreign service personnel on active duty and out of the U.S. for 90 days during any part of 2009 get an additional year to buy their homes – to May 1, 2011.
Another benefit is a waiver on the time of occupancy. Most home buyers using the tax credit must use that home as a principal residence for a period of no fewer than three years or forfeit the entire credit. But military, intelligence and foreign service members do not have to repay the credit if they sell their home in less than three years if they move because of official business.
“NAR is the leading advocate for private property and home ownership issues, and firmly believes that those who are in service to their country should be full participants in the home buyer tax credit law,” says NAR President Charles McMillan. “These men and women are often hindered by hardships from full participation in the American dream of home ownership because their duty disrupts them in the buying and selling of a home.” NAR was a main advocate for the home buyer tax credit extension into 2010 and its expansion to include present homeowners.
Under the tax credit extension, eligible first-time home buyers can get a tax credit up to $8,000. Current homeowners are eligible for a $6,500 tax credit, provided they have lived in the home they are selling, or have sold, as their principal residence for five consecutive years in the past eight years.
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.
If you are buying or selling a home near MacDill AFB and would like to speak with a Realtor, please feel free to call me (813) 784 7744
View all homes for sale in Tampa Bay!
Timing Couldn’t Be Much Better for First-time Homebuyers–
Be Sure You Make the Right Moves
By Rae Catanese, PA
Prudential Tropical Realty-Tampa, Fl
First-time homebuyers dominated the U.S. real estate market in 2009, accounting for roughly half of all residential transactions, according to the National Association of REALTORS®.
That trend is likely to continue well into the new year. That’s because interest rates are hovering near all-time lows, home-price affordability is near all-time highs and a third factor – Congress’ extension of the first-time homebuyer tax credit until April 30, 2010 – make conditions quite favorable for those considering homeownership for the first time.
Still, with the prospect of making one of the largest investments you’ll ever make in your life, you can easily become overwhelmed.
Some of the questions you may be asking are:
Will I be able to afford the home of my dreams? Do I have enough money for a down payment? Will I qualify for the tax credit? Will I make smart home buying decisions? If you go into the process prepared, your first purchase – like the current timing – can be just right.
The costs involved in the purchase of a home can seem overwhelming to first-time homebuyers. There are mortgage costs, the down payment, and closing costs to think about.
1. Affordability–By looking at your income and debt ratio, your sales professional can help you calculate how much you can afford each month in mortgage payments. But before determining your price range, you should also take into consideration other factors that will affect your monthly budget once you are a homeowner, such as property taxes, insurance, homeowner association dues, utilities and maintenance. And if your down payment is less than 20 percent of the cost of the home, you will be responsible for private mortgage insurance, more commonly referred to as PMI.
2. Mortgage payment–Fear of being rejected for a home loan is one of the main concerns for first-time homebuyers. To lessen the stress, you may want to get pre-approved for a loan before looking at prospective homes. This will not only help you feel more confident, it will also give you an advantage where there are multiple offers for a specific property. In addition, the fact that your loan has already been approved is of great value to the seller because it shortens the purchase process, and there is less of a chance that the buyer will back out of the sale. If you don’t have a specific mortgage lender in mind, ask your sales professional for a recommendation.
3. Down payment–The down payment amount varies depending on the value of the home you choose and your mortgage lender. Your real estate professional will be able to explain the different options available to you.
4. Tax credit–The first-time homebuyer tax credit, a key component of the American Recovery and Reinvestment Act of 2009, equates to as much as $8,000, or 10% of a principal residence’s purchase price, and is available to those who have not owned a principal residence in the past three years. You can use the tax credit to help purchase your home or help pay for its closing costs, or the credit can be used to remodel, refurnish and repair your property. See your tax advisor for details about the tax-credit program and how you may benefit.
5. Making offers–Don’t feel pressured into making an offer on the first home you see. This is a common mistake of many first-time homebuyers. Make sure you view different homes to get a feel for the marketplace. When you decide on a home to make a bid on, work with your real estate professional to get all of your questions answered before making an offer. But don’t wait too long to make an offer. The longer you wait, the greater the chance other prospective buyers may place offers, making it harder for you to negotiate a good deal.
Above all, remember there are no silly questions. Make sure you understand and are comfortable with every aspect of the transaction. Your real estate professional can be an invaluable asset in helping you make educated decisions so that your first home purchase is a rewarding experience.
Need a Buyer’s Agent? Questions? Email me or Call: 813 784 7744
Here’s an update on the home buyer tax credit which is hopefully going to be EXTENDED until June 2010. This will make a big impact on Tampa Real Estate, since many buyer’s have now run out of time to purchase a home by Dec. 1st. Glad to see they are working on extending it!
WASHINGTON — Senators agreed Wednesday to extend a popular tax credit for first-time home buyers and to offer a reduced credit to some repeat buyers. The tax credit provides up to $8,000 to first-time home buyers but is set to expire at the end of November. The Commerce Department said Wednesday that new home sales fell 3.6% in September, and some industry representatives blamed uncertainty about the tax credit.
Senators agreed to extend the existing $8,000 tax credit for first-time home buyers while offering a reduced credit of up to $6,500 to repeat buyers who have owned their current homes for at least five years, said Regan Lachapelle, a spokeswoman for Senate Majority Leader Harry Reid, D-Nev.
The tax credits would be available to home buyers who sign sales agreements by the end of April. They would have until the end of June to close on their new homes, according to a summary of the legislation being circulated among lawmakers.
Please contact me with any questions: 813 784 7744-Rae Catanese, Realtor
One problem we are experiencing in the Tampa Real Estate Market is a very large quantity of short sales and foreclosures. This leads to not only abandoned homes, but an even larger problem with HOA fees not being paid by the homeowners.
A good buyer’s agent can tell you which neighborhoods are in trouble. Imagine buying a home and then being assesed a huge amount to make up for the back HOA fees! Call the Home Owners Association president and get the current financials. Finding out this information should be a contingency of the contract in today’s real estate market.
HGTV’s frontdoor.com posted a great article on How To Find The Best Neighborhoods. It’s guide for those just starting out in the home search process. If you are looking to relocate to the Tampa Bay area, I’ve posted articles specific to our area that will help you find the BEST neighborhoods in Tampa!
Need a buyer’s agent? Call 813 784 7744 or email me! Rae Catanese, PA-Licensed Real Estate Agent covering all of Tampa Bay
Business Week Article explains when conditions are favorable to own rather than rent.
Tampa Bay Ranked #5 in their report.
Tampa Metro (Fla.)
Own/rent ratio: 115%
Annual cost to own: $10,823
Annual cost to rent: $9,444
South Florida is has been hit hard by the recession, and home prices in Tampa have taken a dive. The metro was the country’s 19th-largest in 2007, with a population of more than 2.7 million. OSI Restaurant Partners (Outback Steakhouse) and WellCare Health Plans are headquartered here. The Tampa Bay area also relies on the tourism industry.
The metro areas were ranked based on the annual cost of owning compared to renting. The own/rent ratio represents the annual cost of owning as a percentage of the annual cost of renting. The lower the ratio, the more favorable owning is over renting and in any metro with a ratio below 100%, it’s cheaper to own than rent. To make a fair comparison between owning and renting, annual ownership costs were calculated based on a loan of 100% of the purchase price. (Of course, a down-payment is required for most purchases, but including it in our calculations would have skewed the results by lowering the cost of ownership). We also factored in tax rebates assuming an annual income tax rate of 30%. The ownership costs were calculated using a 30-year fixed mortgage with an interest rate of 5.5% and maintenance fees and property taxes were assumed to be about 3%. The second-quarter rental data, which was provided by REIS, is a blended average of all rental types and includes rent concessions. The second-quarter home value data comes from Zillow.com
Thinking of buying or listing a home for sale in the Tampa Bay Area? Give us a call
813 784 7744 or email realtyrae@yahoo.com
Rae Catanese, PA Real Estate Agent
View all homes for sale, get a market analysis on your home and save your favorite properties. Visit our Tampa Bay MLS site
A friend, author and colleague of mine Dan Auito, just released a new Real Estate Investing Book called
“Be A Real Estate Heavyweight.”
This is a real estate investing tool and resource. Learn how to invest in foreclosures and bank-owned REOs
There are many wanna be real estate investors out there and in today’s Real Estate Market it’s no wonder why everyone wants to get in on the foreclosure boom! We may never see another market crash, especially here in Tampa Bay, in our lifetime.
Why is Be A Real Estate Heavyweight the BEST Real Estate Investing Book?
This Real Estate Investment book boasts 95 authors that are sharing actual experience that is working in the field TODAY! This is post bubble real estate investing, these are the NEW methods being used NOW.
Click Here for the table of contents!
A brief Example:
Author Article
Jarom Adair ……………………The 7 Great Lies of Real Estate Investing
Peter Vekselman ……………Avoiding Real Estate Mistakes & Pitfalls
Preston Ely …………………….. 7 Steps to Real Estate Riches
Tyler Hicks ………………………How to Get Rich in Real Estate on Zero Cash 100% Financing
This manual gives investors a more comprehensive approach to intelligence gathering. Capitalize on the collective significance of the available information aggregated from some of our brightest real estate investors in their fields today.
In this real estate investing book, he literally maps out
the only systems that are working in
today’s real estate economy.
…And what’s really cool is the way
he explains it and makes it all so EASY
to understand.
There’s 2 really good chapters
of what is working in real estate today
download free
chapters.
Whether you are looking to purchase foreclosures, distressed homes, vacation property or a home for you and your family, this guide will give you the knowledge you need.
I’m sure you’ll like this and benefit
from the content …so check it out!
First Time Home Buyers Seminar @ IKEA
“$500 certificate for closing costs to anyone that attends”
| |
Hosted by: Transcontinential Lending Group
Price: FREE
Infact we are giving away $500 dollars for attending
|
|
Here is what you will learn at this “FREE” presentation:
• Discover the seven secrets to hidden Tampa’s real estate values
• Learn how to find the right property to buy
• How to receive your $8,000 tax credit within a few weeks of closing
• The difference between renting and owning
• How to improve your credit score
• How to find the best mortgage program for your new home
• How to eliminate debt, maximize tax advantages and create wealth
Furthermore, please send this invite to friends, family, or anyone that would want to attend.
Seating is limited so please email Rae Catanese, Realtor, Prudential Tropical Realty
or
call 813-784 7744
$8000 tax credit ends Dec 1st. Time is running out!
Decision Time Draws Near for First Time Buyer’s Credit
While the economy continues to show signs of improvement and many housing markets are beginning to heat up, scores of would-be buyers are still waiting on the sidelines for further positive housing trends. But for first-time buyers, time is running short on the federal government’s $8,000 tax credit.
Though the official expiration date of the credit is December 1, in reality on-the-fence buyers will need to make a decision one way or the other fairly soon. The reason: in order to qualify for the credit, the home purchase must close by December 1st. Merely having loan approval, an accepted offer or a signed contract won’t be enough to qualify for the Housing and Economic Recovery Act.
Decision-Making Timeline – While each transaction is unique, closing a real estate deal is no speedy matter. On average, closing takes place 45 to 60 days after the date that the contract is signed. In order to meet the December 1st deadline, this would mean having a signing date in late September or early October. Those who consider the tax credit an important incentive but are still unsure about entering the market will need to make a decision one way or another before many more summer days pass.
To have any chance at finding a home and having an offer accepted by early October, buyers will want to wade into the home buying process right away. The immediate steps include making a final list of desired home attributes, scouting favorite neighborhoods and areas, starting the mortgage pre-approval process and beginning the home search process online.
Potential for Delays - Buying a home is a complicated process, and it is not unusual for purchases involving first-time buyers to take slightly longer than those involving experienced buyers. Some of the delays that first-time buyers may face over the coming months:
Competition with Other Buyers
While home may be selling at a lower rate than in years past, in many areas changes in inventory have created extremely competitive buying environments. Foreclosures or other homes with greatly lowered asking prices are particularly sought after, and in many cases investors are very active in the marketplace.
Disclosures & Contingencies
The seller is obligated to disclose any material facts about the property, including any property defects or any lawsuits regarding claim to ownership on the property. Disclosures can stall negotiations and delay the contract signing depending on their nature and severity. Contingencies (written clauses in the sales contract that give protection to both the buyer and the seller of a home) can also result in some delay in negotiation, particularly if the contingency requires the seller to make specific repairs.
Appraisal: The lender will arrange for appraisal of the property, which will include a thorough inspection of the home’s interior and exterior. The appraiser’s report will describe the physical characteristics of the property and comparable property values will be used to determine the value of the property. If the appraisal of the home’s value is lower than the agreed upon sales price, the buyer’s chance of loan approval can be in jeopardy. In addition, recently added rules for appraisers have been causing some delays based upon anecdotal evidence.
Loan Approval
While interest rates remain advantageous for buyers, lenders are being much more fastidious during the approval process. Obtaining pre-approval can help prevent many delays.
The Holiday Season
Buyers who submit an offer in mid-fall may likely run into another roadblock to a pre-December 1st closing date: the approaching holiday season. Closing a real estate sale requires the work and attention of a number of professionals; from real estate agents to attorneys to bankers. Like many Americans, it is not uncommon for individuals in these fields to use up vacation time in the last few weeks of November. Securing a closing date during Thanksgiving week may be something approaching miraculous.
Additional Delays for Short Sales and Foreclosures
Buyers who make an offer on a short sale property or bank-owned foreclosure may find that it takes a significantly longer time to receive a reply than expected. Overall, buying these types of properties is a longer process than buying homes listed on the market by individual owners.
Search all homes for sale in the Tampa Bay area.
Looking for a Real Estate Agent who can help you with the home buying process? Give me a call! Rae Catanese, PA 813 784 7744
What is a short sale?
A short sale occurs when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed.
Right now in Tampa one half of all homes on the market are a distressed sale. In my experience as a Realtor, I believe that there are more short sale listings than foreclosed properties/bank owned. This makes actually buying a home a tedious process for many home buyers.
Things to consider when purchasing a short sale:
Take into consideration that the 8,000 tax credit expires at the end of the year. That being said, a contract would need to be written by October, just to give the buyer’s lender enough time to close.
If it takes up to 60-90 days to hear from the bank whether or not they have accepted your offer, technically an offer would need to be presented to the bank by August. If you think you have time to wait before you start looking you may want to reconsider!
I’ve been working with a client of mine writing offers on short sale condos. She had some questions which I thought would be helpful for the buyers out there who are considering purchasing a short sale.
How do you feel about writing a contract on the short sales?
It’s more about how you feel and the waiting game. If it’s not bank approved, it could take up to 60-90 days to hear back from the bank to respond to your offer. It will not be a contract until the bank signs it, even though the seller will sign it. It is subject to 3rd party approval.
If an offer has been submitted on a short sale, does it mean the property is off the market? No, not necessarily. It depends on the seller, seller’s agent and what type of contingency you put in your offer. For instance, if you want to continue to look at other properties while you are waiting to hear back from the bank, the seller/agent will want to keep the property on the market. In that case, they will be able to receive other offers to submit to the bank. This may cause a bidding war!
If the 1st contract is denied, would the 2nd offer automatically be presented at that time or would it have been rejected at first offering? If two offers were presented to the bank at the same time, usually they will look at both and pick one.
How do you feel about writing an offer on more than one short sale?
That’s difficult because you have to put a stipulation that you can withdraw your offer at any time prior to bank approval. The agent may not make it pending in MLS and they will continue to market the property and look for other offers. Some sellers/agents won’t take that contingency on an offer, some will. No guarantees with anything.
If you haven’t started working with a Real Estate Agent and are thinking of buying or selling a home in Tampa Bay, please contact me. I’m here to help!
Rae Catanese, PA
Prudential Tropical Realty
813 784 7744
Search all homes for Sale in Tampa Bay, get comparable home sales in your neighborhood and more. Visit
www.TampaBayDwellings.com
If you are a first time home buyer you probably have a lot of questions on how to buy a home, and if it is the best decision for you and your family. As a Buyer’s Real Estate agent, I would be more than happy to answer any other questions you may have about the Tampa Real Estate Market.
Here’s a good start on what you should be thinking about and where to begin.
1. How do I know if I am ready to buy a home?
Ask yourself these questions:
- Do I have a steady source of income
- Have I been employed on a regular basis for the last 2-3 years?
- Is my current income reliable?
- Do I have a good record of paying my bills?
- Do I have few outstanding long-term debts, like car payments?
- Do I have money saved for a downpayment?
- Do I have the ability to pay a mortgage every month, plus additional costs?
If you can answer “yes” to these questions, you are probably ready to buy your own home.
2. How do I begin the process of buying a home?
Start by thinking about your situation. Are you ready to buy a home? How much can you afford in a monthly mortgage payment (see Question 4 for help)? How much space do you need? What areas of town do you like? After you answer these questions, make a “To Do” list and start doing casual research. Talk to friends and family, drive through neighborhoods and look in the “Homes” section of the newspaper. Search our website too! www.TampaBayDwellings.com
3. How does purchasing a home compare with renting?
The most significant advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to build equity, take advantage of tax benefits and protect yourself against rent increases.
Owning a home has many benefits. When you make a mortgage payment, you are building equity which is an investment. Owning a home can also qualify you for tax breaks that actually lower your out of pocket costs. Given the freedom, stability and investment security of owning your own home, it is worth it.
4. How does the lender decide the maximum loan amount that I can afford?
The lender considers your debt-to-income ratio, which is a comparison of your gross (pre-tax) income to housing and non-housing expenses. Non-housing expenses include such long-term debts as car or student loan payments, alimony, or child support. According to the FHA, monthly mortgage payments should be no more than 31% of gross income while the mortgage payment combined with non-housing expenses should total no more than 43% of your income. The lender also considers cash available for downpayment, closing costs and credit history when determining your maximum loan amount.
5. How do I select the right real estate agent?
Start by asking family and friends if they can recommend an agent. Compile a list of several agents to talk with before selecting one. The ideal agent knows the local area well and has resources and contacts to help you in your search. Choose an agent who makes you feel comfortable, listens well and can provide all the services you need.
We hope you enjoy reading our Tampa Real Estate Blog. When selecting an agent please consider us first on your list! 813 784 7744 or realtyrae@yahoo.com
Rae Catanese, Realtor
