The extension on the Tax Credit for home buyers has been approved! The credit was extended to cover all  buyers. The credit now covers current home owners who are looking to buy as long as they have occupied their house for 5 consecutive years out of the last 8. It still applies to first time home buyers for an $8,000 tax credit.  A website has been set up to explain the tax credit and hopefully it can answer any questions you have. Please click here to visit the website. The extension is only for 7 months so if you looking to buy, now is the time! The credit is only valid through April 30,2010 so act now!

If things go as planned, President Obama will sign off on a 7 month extension of the first time homebuyer tax credit, extending it until April 30, 2010. While the credit amount remains the same for first time homebuyers, there are a few amendments made to the package that open it up to more consumers. The tax credit will now apply to first time homebuyers, or homebuyers who want to “move up.” Anyone who has been living in their current residence for at least five of the past 8 years and wants to buy a larger or better home qualifies for a $6500 tax credit. It is not necessary to sell your current home before receiving the tax credit, but it must eventually become your primary residence as the credit is not to be used for second homes. The credit has also expanded the income requirements to $225,000 for couples, a $55,000 increase from the previous limit. Stay tuned for updates on the final events of this extension as they unfold.

According to The National Association of Home Builders and Wells Fargo, families making the nations median income of around $64,000 a year could afford 72.3% of homes sold in the second quarter of 2009!!!! Those of you who are waiting around, it’s time! There are programs in place in South Carolina that will give you up to $5,000 toward your down payment or closing costs and require only 3-3.5% down. Lets work out of this recession, shall we?

For those of you who are obsessed with real estate I have good news for you! Yes, things are starting to look up new home sales jumped 11% in June. This marked the highest jump in newly built homes in 9 years. Experts believe that this is due to the $8,000 first time home buyer tax credit.

The $8,000 first time homebuyer tax credit is a fabulous incentive if you are ready to buy a house!  If you have all your ducks in a row but your search has been fruitless thus far, it is time to step it up! In order to get this credit, you must have CLOSED on your new home by December 1, 2009.  It is advisable to have a contract in place in October to assure that there is at least 45-60 days allotted for setbacks or necessary repairs scheduled to be made before closing.  Please don’t be fooled by the word credit. You will actually receive a lump sum of money equalling the difference between $8,000 and what you owe once your 2009 return has been filed.  If you do not owe money at the end of the fiscal year, you get the lump sum of $8,000 when you receive your 2009 return. Win/Win!

Great news for first time homebuyers!  If you purchase a home for your principal residence between January 1, 2009 and December 1, 2009, the government will pay you $8,000 in the form of a tax credit! A first time homebuyer is defined as someone who has never purchased a home, OR someone who has not owned a home in the past 36 months.  The first time homebuyer tax credit first came on the scene in April of 2008 and was set to expire June 30th, 2009.  Originally, the amount of the credit was $7,500 and repayment was required over a 15 year period.  In essence, it was a moderately appealing interest free loan from the government.  This credit has now been amended for 2009 as a part of the new stimulus package removing the repayment requirement and raising the dollar amount to $8,000!  When considering this exciting new opportunity coupled with extremely low interest rates, I have made the decision to purchase my first home.  I really can’t imagine a better buying scenario.  Prices are low, interest rates are even lower, and the government wants to give me $8,000 for making a wise and potentially high yielding investment.  Where do I sign?  Of course you must first make sure you are in a position to afford home ownership by evaluating your finances, securing a down payment, and getting pre-qualified by your lending institution of choice. Contact me if you are like minded, don’t kick yourself in 2010!  For more information on how the credit works, visit www.federalhousingtaxcredit.com or call Lane and Smythe for the rundown 843-577-2900.

The Today Show recently had real estate expert Barbara Corcoran on the show to discuss ten common real estate myths. The myths were broken up into the two groups they were held by, property sellers and property buyers. These myths are common misconceptions in the real estate market that real estate agents must deal with on a daily basis. With the economy in the current state it is in, it is important for everyone to understand that the real estate myths people commonly hold are in fact myths. Both buyers and sellers will benefit from these clarifications because they will both understand that sometimes you don’t have to have great credit to get a loan or that sometimes you can get the best refinancing rate from your current lender.

10 real estate myths for buyers and sellers

The truth about the housing market

In today’s uncertain market, fear runs rampant on both the buying and selling sides of the fence. Many myths need debunking. Here are five untruths held by buyers, and five held by sellers.

Buyer myth No. 1: The longer the house is on the market, the more you can negotiate.
When buyers ask, “How long has this property been on the market?”, they think “six months” means they can negotiate the price down. It more often means the seller is stubbornly holding on to their price.

Buyer myth No. 2: The sellers today are desperate.
Most aren’t. Always ask why the sellers are selling. It’s the key to finding how motivated and anxious they are. “I’m being transferred to Dallas” is a very different answer than “We’d like to find something bigger.” The first homeowner is hot to trot.

Buyer myth No. 3: You can’t buy a home today with less than 20 percent down.
FHA loans require only 3.5 percent down, and you can even ask the seller to pay the closing costs.

Buyer myth No. 4: You need good credit to get a good loan.
Once again, the FHA to the rescue! They’re happy to lend money to buyers with bad credit.

Buyer myth No. 5: You shouldn’t buy before prices have bottomed.
You can’t sharpshoot the real estate market. Once you identify the “bottom,” prices have already moved up.

Seller myth No. 1: Now’s the absolute worst time to sell.
Not necessarily. It depends upon where you live. Many of the worst hit markets, like Las Vegas, Phoenix or San Diego, are already beginning to turn around. And if you’re a homeowner who wants to trade up, the loss you’ll take on your current home will be more than offset by the bargain you’ll get on the next one.

Seller myth No. 2: Never respond to a low-ball bid.
All buyers today feel obligated to put in low-ball offers to see if the seller bites. If you respond with a reasonable counter offer, most buyers can be convinced to come up in price and make the deal.

Seller myth No. 3: The first offer is never the best offer.
Most sellers believe that it’s smart to hold out for something better. But four times out of five, the first offer is the best you’ll ever see.

Seller myth No. 4: ‘I can always reduce my price later.’
Sellers often price their home high for a few weeks just to test the market. But buyers shop by price bracket and if your house is in the wrong one, you’ll just help sell everyone else’s home while yours sits there overpriced. And reducing your price later in small increments puts you in the position of chasing the tide as it goes out.

Seller myth No. 5: Before you refinance, shop around.
You can if you want, but you’ll usually get the best deal from your current lender. And you’ll be able to negotiate your closing costs.

Source: Barbara Corcoran

Housing Market Forecast Lists Charleston in Top 25

We’re certainly not a Las Vegas, Detroit or Miami.

That’s what local home- owners and real estate industry players can take comfort in when lamenting Charleston’s weakened housing market. Comparing market conditions with cities in far worse positions, in fact, makes our local problems seem much smaller.

To that effect, Charleston recently was cited as one of the top 25 Strongest Housing Markets by Forbes magazine, which asked Moody’s Economy.com to create a list of areas that are nearest to recovery. The group looked at metro areas with populations higher than 500,000.

The analysis forecast that the Lowcountry housing market will hit the bottom in late 2009 and that prices will fall by a margin of 1.1 percent before that time. (That prediction doesn’t jibe with data from the Charleston Trident Association of Realtors, which suggests that, at least since 2007, home sales prices have fallen by roughly 3 percent.)

Charleston shared the honor with other Southern cities, including Columbia, Birmingham and Augusta. Clusters of real estate stability were found in Upstate New York in cities such as Rochester, Albany and Buffalo and throughout Texas in cities including San Antonio, Austin, Fort Worth and El Paso.

The analysis emphasized that the listed markets aren’t immune from the current downturn. None of the cities is likely to see prices increase by the end of the year.

In storage

A local developer has picked a spot to polish up in the revitalizing Charleston Neck Area.

Quattlebaum Development Co. is on the brink of breaking ground for a new storage facility on Heriot Street. The 106,000-square foot facility, which will be managed by Extra Space Storage, could open as early as June.

Extra Space Storage has three other locations in the Charleston area.

The 1.4-acre site used to house the brick Craig’s Seafood building, which has been torn down.

Quiet Heriot Street’s profile recently was elevated by the neighboring Magnolia urban infill development, a proposal that aims to turn 126 acres of previously polluted land along the Ashley River into a mix of offices, shops and as many as 4,400 homes. Magnolia developers plan to route the future neighborhood’s traffic over a marsh and through Heriot to link up to U.S. Interstate 26.

Reach Katy Stech at 937-5549 or kstech@postand courier.com.
Read the full article on Charleston.net

Realtor Magazine recently published an article that highlighted 8 simple tips that could help your home sell faster. All of these tips have to do with de-personalizing your home because potential buyers can get sidetracked by personal items. The 8 tips are as follows:

1. Eliminate countertop clutter. A countertop covered with small appliances and utensils looks crowded, not spacious.
2. Pack up the too-personal. Don’t leave toiletries on the counter. Stash family photos.
3. Be prepared for snoops. Prospective buyers pull open drawers, look in closets and peek behind the shower curtain.
4. Make sure things work. Dripping faucets, burned-out light bulbs, and squeaking hinges detract from the home’s appeal.
5. Think “white-glove clean.” Mop, dust, vacuum, clean baseboards, wash windows. Make sure the house looks fresh and smells neutral.
6. Make sure the front door is clean and the hardware polished. Power-wash walkways.
7. Store furniture that makes rooms feel crowded.
8. Show every room for the kind of room it is. Maybe you’ve turned your formal dining room into a home office. Get rid of the desk and computer, and bring back the dining table and chairs.

This article was originally published in the The Dallas Morning News on September 5, 2008.

The Post and Courier recently published an article that highlights the cost benefits that are associated with buying a house rather than paying college housing costs. Charleston is a great place to buy a house for a college student because once the student graduates the property can be used as a second home or as an income producing property.

Click here to read the full article in the Post and Courier.