Wanda's Blog: March 2010

BACK TO THE BASICS! THIS PRISTINE SLAB HOME SITS ON A LARGE BEAUTIFUL FENCED IN LOT. THERE IS SPACE FOR A LARGE GARDEN OR TO ADD A LARGER GARAGE. YOU CAN ENJOY THE BACK YARD SITTING ON THE COVERED PATIO. THE WALLS HAVE BEEN FRESHLY PAINTED AND THE WINDOWS HAVE BEEN REPLACED.  NEUTRAL PALETTE AND MOVE IN READY! THIS HOME WOULD BE GREAT FOR THE FIRST TIME HOMEBUYER OR THOSE LOOKING FOR ONE LEVEL LIVING. 3 BEDROOMS, ONE BATH, ONE STALL GARAGE. HOMEOWNER'S WARRANTY INCLUDED. $99,950.00

By Angie Ungs

Surely by now you have heard about the $8,000 First Time Home Buyer Federal Tax Credit. And hopefully you have also heard about the $6,500 Federal Tax Credit for current home owners making a qualifying purchase. These tax credits are incentives for consumers who take the plunge into home ownership and gives a nudge to current owners to move up to a different property.

With interest rates remaining at an alarmingly low rate and a significant chunk of change coming your way through a tax refund, this is a once in a lifetime opportunity for qualified buyers! And it certainly won't last forever... in fact the deadline is quickly approaching! A signed purchase contract must be dated April 30, 2010 or earlier, and the transaction must close by June 30, 2010, in order to qualify. Military personel are eligible for a one year extension of the deadline.

Realtors are NOT tax professionals, but a good agent should be able to give you resources to help you determine whether or not you qualify. As with any tax law, there are some uncommon situations that may exempt an otherwise qualified purchase, so it's crucial to do your homework. However, the basic gist of it goes like this:

• a buyer who has not owned a home in the last 3 years is a first time home buyer and eligible for the $8,000 credit (so even if you owned a home several years ago, you may still qualify!)
• current home owners that have owned their residence for 5 years are eligible for the $6,500 credit
• income restrictions apply, though they are far above the median income level for Iowa
• if you served over seas for 90 days or more between 12/2008-5/2010 you have until April of 2011 to take advantage of the tax credit

 The dream of owning a home is more affordable than ever... contact your Realtor today! Don't know a good Realtor in your area? Call Wanda Tharp at Coldwell Banker Hedges Realty and she can assist you with finding a qualified agent!

Click for an informative article and access to IRS website

Large brokerages spend a hefty chunk of their advertising budget on weekly Open House ads in local newspapers. Open House directionals and sign riders begin to pop up mid week, and by Saturday no street corner is unadorned.

But, how effective is this traditional method? Statistics tell us that home buyers do the majority of their research and shopping online these days, so... why continue to hold Open Houses? Are we just continuing to do what we have always done, or is there a bigger reason why agents continue to devote their entire weekend to hosting Open Houses for their clients?

We want to hear from YOU! Whether you are a buyer, seller, REALTOR or broker, we value your input. Tell us your thoughts, opinions, statistics, and experiences involving the effectiveness of Open House in today's market. Just comment on this post and we'll post the results in an upcoming post.

To illustrate the recent heat up of the housing market in Cedar Rapids in reference to the previous post here are the statastics:

Sale Pendings total for 2010 so far: 527

Sale Pendings for the last 30 days: 332

63% of sale pendings have occurred in the last 30 days

Data obtained through the CRAAR MLS as of Monday, March 8, 2010. Data from most recent weekend activity may not be reflected in the current data. Only properties listed and sold through the MLS were tracked.

From Cold... to SOLD! By Angie Ungs

Every year, the housing market in the Corridor area experiences a major cool down during the winter months. From Thanksgiving through Spring Break there is a lull in activity, largely due to holiday festivities and the weather. After all, who really wants to trek through three feet of snow and brave sub zero temperatures to go house hunting? Well, as it turns out... serious and smart buyers do!

As soon as the first sign of spring appears, so do the SOLD signs. Homes that have been on the market for several months through the quiet winter market suddenly sport the big red S-O-L-D all at once. Over the course of the weekend I noticed five homes go sale pending along my regular driving route to school and daycare. Four of these homes have been listed all winter, and one was just on the market for three days.

 March is a magical month in the Midwest for real estate. Home buyers start to come out of hibernation in February, which leads to an increase in the number of properties that go sale pending in March. Savvy sellers with good agents put homes on the market before the big thaw to take advantage of the serious shoppers and beat the flood of homes that will hit the market when the weather turns warm.  

This spring will be particularly interesting as home buyers respond to the federal tax credit incentives which expire at the end of April. Current home owners who have lived in their home for five years are eligible for a $6,500 tax credit for the purchase of a new home. First time buyers receive $8,000 for qualifying purchases. Purchase contracts must be finalized by April 30, 2010, and the transaction must close by June 30, 2010, in order to qualify.