The Home Buyer Tax-Credit is getting more popular as we approach the Tax-Credit Deadline.  As that deadline draws near, many home buyers are wondering who qualifies to get the tax credit.  One common misunderstanding is that you have to be a first time home buyer…truth is, you don’t have to be a first time home buyer!

I’ve put together a simple list of basic home buyer requirements:

Home Buyer Tax-Credit Requirements

$6500 Tax Credit For ‘Repeat Buyers’:

• Must have owned and resided in your current home for 5 of the last 8 years.
• Income limits for single taxpayers is $125,000;  limit is $225,000 for married taxpayers filing a joint return.
• Any Home less than $800k that will be used as a principal residence qualifies.
• Must be under contract to purchase by April 30th, 2010 and closed by June 30th, 2010.

$8000 Tax Credit For ‘First Time Home Buyers’

• All First time home buyers purchasing a new or re-sale home are eligible.
• Income limit for single taxpayers is $125,000; the limit is $225,000 for married taxpayers filing a joint return.
• Tax credit is equal to 10% of the purchase of price of the home, up to $8000 of credit.
• Any Home less than $800k that will be used as a principal residence qualifies.
• Must be under contract to purchase by April 30th, 2010 and closed by June 30th, 2010.

For more Frequently Asked Questions, check out this site!

Looking to Buy? Find your home now!

Still don’t know if you qualify? Give me a call and I’ll walk you through it!

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The MLS is the real estate industry’s favorite acronym.   For those of you that know what the MLS means, congrats, but for those that don’t know what the MLS means, this article is for you!  For example, if you’ve used my Boise MLS Home Search feature, then you know what I am talking about.  By the way, I’ll sometimes call it the “Multiple” for short!

What is the MLS?

The MLS stands for Multiple Listing Service. In Idaho, the MLS is a collection of almost all of the homes listed by Realtors. In order to directly access the MLS Database, you have to be a licensed Realtor in good standing with your local MLS Board…in my case, the Intermountain MLS. Almost every home for sale, is in the MLS and when I work with a buyer, I use the Multiple listing service to locate those homes that meet their criteria.

The multiple listing service is accessed online by Realtors, but today, some websites have their own version of the  MLS. These websites make it possible for buyers to indirectly access the multiple with limited search capabilities. In the past, the general public had no way of getting those listings without the help of a Realtor. The Internet Data Exchange is the protocol that transfers certain limited data from the multiple to an agents home search tool. Whenever you search for homes on a website, you’re accessing the IDX feed, not the MLS so the information is limited.

Whats better, a Realtors website or the MLS?

Hands down, the MLS is better.  As previously mentioned, when you search for a home on a Realtors website, you can only search based on limited information. For instance, you might be able to search based on quantity of bedrooms, baths and square feet, but you won’t be able to search based on school district or other specialized important information.

Today, I get a lot of requests from buyers trying to beat the tax credit deadline to find homes that AREN’T short sales (they can take months to successfully accomplish). To date, there are very few, if any Realtor websites that can search for all homes EXCLUDING short sales.

In addition to exclusive searching, I can access tax data, parcel information, listing history, and a number of other things that most buyers just can’t find on a Realtors website…including mine.

Probably the most concerning issue is that not all homes listed with the MLS show up on Realtor websites–even the big ones like Trulia and Realtor.com!!!

This doesn’t mean that a Boise Real Estate Agent’s website is unhelpful, it just means that buyers without the help of a Realtor are not accessing the entire market.

Why Bother Searching on My Agents Site?

Searching on your agents site isn’t a total waste. If you have the option of signing up and creating an account, do! This will allow your agent to get a good idea of what types of homes you like and what it is that you’re really looking for. In addition, you can set up email notifications that will get you in front of the best listings first!

If you are using a Real Estate company’s site to search, you’re not doing yourself any favors if you aren’t registering and working with an aggressive agent who knows the market. Recently, I’ve been doing a lot of work in South Boise and Southeast Boise, so I have an edge on agents who haven’t been working there recently. It makes for a valuable service to new buyers when their agent already knows of the great deals without having to look on the multiple. On the other hand, I have access to the ENTIRE Multiple Listing Service and can search any area and find deals within moments!

What MLS Tools do I provide my buyers?

I provide my buyers with 3 Boise Home Search capabilities:

• Boiserealestatesoup.com — This a  free site where you can do an IDX style search.  In addition, you can create an account where you can save favorite listings and search criteria and also be notified of new homes on the market as they become available.
• Listingbook — This a step up from my sites IDX.  You can not only search homes, but you can schedule showings, leave feedback, make notes and create a profile that we use to communicate online about the market.  A very, very powerful tool!  All of my clients love it!
• Intermountain MLS — Each buyer I work with gets a one on one consultation with me where I go through the Multiple Listing Service for them.  I gather all the information from you about what’s important in a home, community or whatever criteria is important to you.  I then build a profile for you and anytime a home comes onto the market, gets a price change or is modified in any way, I am the first to know about it.  There are many times where we go through the Multiple together and you can see what I see!

Start your homesearch NOW!!!

You’ve heard me call the Tax Credit a bribe, but if you’re in the market anyway, its a bonus.  The Home Buyer Tax Credit can be a useful tool for some multifamily real estate purchases as long as one of the ‘units’ is your primary residence!

Check it out!

Some Home Buyers are making a purchase just because they can get $8000.  Is this a good enough reason to buy a home?  There are many benefits of home ownership and last time I checked a one-time $8000 bribe was not one of them.

A while back I posted a video about the first time home buyer tax credit, and at the time I was concerned that nobody was taking advantage of the opportunity.  It now seems as though  many buyers are taking advantage of the extended version of the tax credit.  Perhaps the original deadline of November 30th created some urgency amongst the buyers and has urged them off of the fence to take advantage of the new deadline of April 31st, 2009.

Since posting that video have been doing some research on the real estate market I have some criticism about how many first time home buyers (even regular buyers) are using FHA loans with only 3 1/2% down in a market that is declining faster than a 3 1/2% loss per year.  I know that there are many people in my industry who are trying to stir up the market and promote the FHA loan and the Home Buyer Tax Credit to get buyers off the fence.  I’m not the only one who is saying this there are others as well who think that these loans will come back to bite us.

If you are in the market to buy a home anyhow, there’s no sense to not take advantage of $8000.  However, it is reminiscent of the current mess that we are in if a buyer is using the $8000 tax credit as a reason to purchase a home or to get them off the fence at the least.  There are many benefits to buying a home, possible tax savings (see Mortgage Interest Deduction Hustle), stability, pride of ownership, financial and educational; nowhere on that list is $8000.

Think before You Buy

It’s this type of uneducated consumerism that causes families to lose homes, banks to foreclose, and burdens taxpayers.  It’s an ill-fated attempt to try to prop up the real estate market back into a position that was never stable to begin with; leading the march are Realtors at every corner.  I would hope that if you are in the market to buy a home that your journey would consist of some self reflection, assessment of personal goals, assessment of family goals, and some education into the market not just into good deals on homes in areas that have seen double-digit declines in value — remember there’s usually a good reason that certain areas wind up being the biggest losers when the market corrects.

Get Educated!

New technological advances in real estate have made it easy for buyers to self educate themselves very quickly.  The challenge however, is that all they are educating themselves about, is what is available for sale and not the fundamentals of what makes a good purchase.  For some, this isn’t their first go around and the process may be familiar, but to their surprise, there are areas of town that have failed miserably while others have succeeded or the very least will be the first to rebound in months or years to come.

First Things First

If you have thought about buying a home in Boise or Meridian, your first step is not to see how much you qualify for from a lender, but to sit within agent whose interests are not head of yours, who was willing to educate you in a manner that will have you questioning whether or not buying real estate is good for you.

Believe it or not there are areas of town that have been good to buyers and sellers alike and will remain a good choice no matter the market conditions.  If you would like to see if buying a home is right for you please give me a call I would be happy to be honest with you and tell you that buying a home for you is not the right choice.  I would be happier to tell you honestly that if you are a good candidate to be in the market to buy real estate that now is a good time to buy in certain areas. I’d even be happy to show you where those areas are along with numbers to back up my suggestions.

You’ve heard that when you buy a new car and the minute you drive it off the lot, it’s already worth less than what you just paid for it, right?  Parts of the Ada County Housing Market might be the same!  First it was ARM’s (Adjustable Rate Mortgages), then it was the ‘Pay Option’ Arms, next will be FHA Loans.

I was digging around on some real estate stats in Paragon (the MLS) and found that 1 year ago (Oct. 2008), the Median price for homes in Ada County was $198,500, no surprise right?  Since that time, 30% of the single family home sales in Ada County have been financed using an FHA Loan.  Today, the median price for homes in Ada County is $155,000.  That’s a 22% drop.  Ugh.

Already Upside-Down

All things considered, not all of the 1600  or so FHA buyers who bought in the last 12 months did it exactly 1 year ago.  But, I think it’s worth considering that since FHA only requires 3.5% down, most, if not all of the people who have purchased within the last year are already significantly upside-down on their homes.  Some of them by more than 20%.

If they had to sell and need to hire an agent, there would be nearly another 7-8% of expenses associated with the sale.  That puts them over 25% in the hole!

Terrible Buyers Representation & Consultation

Hopefully, these buyers weren’t herded into  suburban subdivisions that offer no real amenities besides upgraded carpet and kitchen counter tops, but into sustainable areas of town where over the long term will not only enjoy where and how they live, but will be hedged against spiraling declines that have plagued the bulk of these mega-subs.

Many agents, still hanging on by the hair of their chinny chin chin will sell anything–especially on the premise that it is a ’smokin deal’–the last step before the home actually spontaneously combusts and becomes a fire-sale.

Thoughtful Purchases Will Come Out Ahead

Perhaps some took the opportunity to get a good deal on a home near downtown, or within walking or bicycling distance from work or school.  Maybe some of them sacrificed cute paint and stainless appliances for a good location with natural amenities like the Boise River Green Belt or good access to the Ridge to Rivers Trails system.  I know there are a good handful of buyers who were smart enough to consider the overall location of their purchase rather than the glitz and glimmer of how a home looks.  Those will be the ones who, after a shorter period of time will be able to sell their home without having to get an approval by the bank.

FHA & The Buyer Tax Credit (some call it a bribe)

An FHA loan is a good financial tool.  But it looks very similar to rubble left by the 0% down garbage  that we are currently trying to dig our friends and families out of–maybe even ourselves.

Only the Federal Government could be so generous to lend money that isn’t theirs.  At the end of this home buyer bribe dressed up like a tax credit, and after the Department of Housing and Urban Development runs out of money to insure these unsustainable loans (some time in March 2010), you’ll see interest rates climb up now that the real world banks will be the ones who have to take on the risks of these barely creditworthy (in many cases) home buyers.

Then, it might be a really good time to buy!

Like it or not, the First Time Home Buyer Tax Credit has been extended from it’s original deadline of November 30th, 2009 to April 30th, 2010. Not only did the Tax Credit get extended, it also got expanded.

First Time Home Buyer Tax Credit Changes

Extension

• Tax Credit Expires April 30th (must have a binding contract to purchase), 2010, HOWEVER, you  have until July 1, 2010 to close (sign escrow paperwork)
• $8000 Tax Credit applies to First-Time Home Buyers.

Expansion

The New Tax Credit goes beyond First Time Home Buyers

• Tax Credit Expanded to include current homeowners who are selling or who have sold a home that they lived in (primary residence) for 5 out of the last 8 years.

For more information about the tax credit, please call me, email or leave your comments here on Boise Real Estate Soup dot com.  Or, click HERE for a flier on the Tax Credit.

The Senate reached a compromise today to extend the $8000 tax credit for first-time home buyers in an effort to help the flailing real estate market out of it’s tail spin.  We’ll see if the bill passes.

The Wall Street Journal reports that not only will the tax credit of $8000 be extended, but that it would also be expanded to some existing homeowners  offering a new credit of up to $6,500 for, Senate aides said.  One of the qualifying factors in the expanded $6,500 tax credit is that the buyer would have to have been in their current residence for a consecutive five-year period in the past eight years.

Personally, I think the extension comes at a good time (as far as spending tax payers money goes) but the time frame of the extension I’m a little iffy about.

What about the timing of the extension?

The new extension deadline of April 30th, 2010 comes just before the best time of our seasonal market in June & July.  So, if their intent is to try and prop up the market through what is historically a bad market (winter) then I suppose I challenge the reasoning behind the deadline for the extension.  Any extension should have been through August 2010 where the momentum of spring and summer month sales could carry us into the fall of next year.  Or, as some suggested, that it began to phase out from $8,000, to $6,000, to $4,000 and so on over a period of months.

Has the tax credit helped our Boise Real Estate Market?

Some question whether or not the first-time home buyer tax credit has made a dent in the market.  Locally, sales are up 8% YTD from the same time last year (re-sale in Ada County).  I think it will breath a bit of life into some of the short sales that many agents have been ignoring lately because of the current tax credit deadline of Nov. 30th, 2009.  Short sales can take months and many buyers can’t risk losing the tax credit because of missed deadlines.  Hopefully we’ll now see them getting some good deals from banks and making those deadlines.

If you’re in the market and hoping to get a tax credit, all signs seem to be pointing to an extension–and why wouldn’t it, our Government is spending money at a rate we’ve never seen before–then you can relax a bit and maybe even get some better pricing through the winter months.   Just make sure you the tax credit get’s extended first…duh.

For questions about the tax credit, please give me a call or shoot me an email.  I’d love to help you out!

November 30th, 2009 is the deadline for the current First-Time Home Buyer Tax Credit of $8000.  If you want it, you better go out and buy your home and have it closed by then.  The buzz however, is that the first-time home buyer tax credit is not only going to get an extension, but also an expansion.

At this point, there is nothing in writing except a bill simply called,  the “Home Buyer Tax Credit Act of 2009″ sponsored by Johnny Isakson which suggests that the current Tax Credit be extended and expanded to $15000 and to ‘any’ buyer who buys a home for a primary residence.

Should I wait to buy my first home?

Many people are asking me if they should wait to buy a home because the Tax Credit might get extended. Honestly, I can’t speculate whether or not the extenstion will pass.  My gut tells me that it will, but again, it really boils down to each and every buyer situation.  What I can tell you for certain is that there is currently $8000 on the table for you and there is something of a chance that December 1st, 2009 there won’t be.

Determine your needs, your financial health and make your decision based on the facts, not the unknown.  I imagine that the closer we get to the current Tax Credit deadline, we’ll know more.  But remember, it takes at least 30 days to get through escrow and close so don’t risk it unless you can afford the home without the tax credit.

How Much Does The First-Time Home Buyer Tax Credit Cost Tax Payers?

Approximately 1.5 million homes have been purchased this year.  Of which, 350,000 were first-time home buyers.  It’s estimated that less than half of those first-time home buyers actually needed it to close the home.  “If you do the math, that breaks out to $43,000 per first-time home buyer – a pretty hefty fee”, says Martha White of the BigMoney.com .

Tell Us Your Thoughts:  Do YOU think the tax credit will be extended/expanded?

Leave your comments below and let us know what you think!

• Will the tax credit get an extension?
• Will the Tax Credit Act of 2009 pass and get expanded beyond first-time home buyers to include ANY buyer?
• Should we extend the tax credit?
• Should we expand the tax credit?

Swiss Army Knives can do almost anything, so can the new and improved Boise Real Estate Soup! It’s taken some time but I’m excited to get the new site up an running.  The changes were pretty straight forward; mostly design/graphic, but more important are the navigational changes, but, I’ve added some great features that are very useful for home buyers and home sellers alike!  Check out the updates and sign-up now for email updates or RSS updates.  Also, find me on Facebook, Twitter and Linked-In!  The site doesn’t have a corkscrew, but, if you bring your bottle of wine over, I’ll open it for you!

Searching For Boise Real Estate Just Got Easier!

I’ve added three options for getting to my Boise Real Estate home search.  You can now access the entire Boise MLS by clicking the icon in the header of the site, you can also search for Boise homes by clicking the link under the ‘Multi-Media Box, that says “Search Like An Agent” or, you can follow the tab in the navigation tab at the top of the page under the header image.  ***I am still waiting for my new search engine to be uploaded which should be done by the end of the week, so for now, enjoy what’s available!***

What’s That Home Worth?

Another feature of the site that I am really happy about is the Market Snapshot.  The Market Snapshot is a free tool that I am offering home buyers and home owners.  Basically, Market Snapshot will give you the ‘SOLD’ Market for any neighborhood.  So, if you are looking to buy and want to know what sales have been like in a particular area, submit your request and get a Market Snapshot of the area.  Likewise, if you are selling a home and want to know what homes like yours have sold for, feel free to use the tool by punching in the required info.

It’s pretty amazing information, you should try it out just for fun!

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Continued Updates and Content

As things develop, I will continue to make important changes and upgrades to the site.  Look for new content weekly by subscribing to the RSS feed and please please please leave your comments, ideas and support!!!

It wasn’t long ago that the only homes for sale in Boise for under $100,000 had wheels.  Today however, this isn’t the case.

After doing a very simple search for homes in Boise, I found that there are currently (as of 7/14/2009) 118 homes/condos/town homes available for $100k or less!

Full Detail MLS Listings of the 118 homes in Boise less than $100,000

Sure some of them may be trashed out, but the majority are solid, quality homes.  Better yet, at today’s FHA rate of somewhere at or around 5.5%, your payment is most likely lower than what you’re paying for rent.

So, what is the payment on a $100k house in Boise?

This is only one example, but if you go FHA, here is the breakdown of your payment:

• $100,000 purchase price
• 3.5% down (required)=$3500  (Cash out of your pocket)
• FHA Upfront Mortgage Insurance Premium (1.75% of Loan Amount)= $1688 (added to the loan amount)
• Loan Amount $98,188  (100k – 3500+1688)
• $98,188 at 5.5% Interest plus $45/mo Mortgage Insurance
• Total Monthly Payment Before Property Tax is a whopping:

$602.50 Per Month!

If you’ve even considered becoming a homeowner and want to stop throwing away your money on rent, now is the perfect time!  In conjunction with the $8000 First Time Homebuyer Tax Credit you’re really looking at an opportunity of a lifetime!

Certainly each buyers situation is unique and personal consultation is a must, but if you’d like to just take a swing at the possibility, I’d be happy to get you connected with the right people to get you the right loan and then onto your way to home ownership!

Contact me now with your questions!

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