Real Estate Information Archive

For those that thought they might have missed their opportunity to receive the benefit of an $8000 tax credit, here is a reminder:

Congress has acknowledged the unique circumstances affecting members of the military, the foreign service and the intelligence community by making the following exceptions that apply to both the $8,000 tax credit for first-time home buyers and the $6,500 tax credit for repeat home buyers.

Exemption From Tax Credit Recapture Rules

• Typically, homes that are sold or that cease to be used as a principal residence within three years of the initial purchase are subject to recapture of the tax credit.
• However, qualified service members who sell or move from a tax credit home within three years of the initial purchase due to official extended duty are exempt from the recapture rule.

Extension of Tax Credit Deadlines

• The home buyer tax credit is available for qualified purchases with a binding sales contract in place on or before April 30, 2010 and closed by September 30, 2010.
• However, for qualified service members who are ordered on a period of official extended duty, these dates are extended. For these home buyers, the tax credit applies to sales with a binding sales contract in place on or before April 30, 2011 and closed by June 30, 2011.
• A person who is forced to return to the U.S. for medical reasons before completing an assignment of at least 90 days of qualified official extended duty outside of the United States may qualify for the one-year extension.

Definitions

• “Qualified service member” means a member of the uniformed services of the U.S military, a member of the Foreign Service of the U.S., or an employee of the intelligence community.
• “Official extended duty” means any period of extended duty outside of the United States for at least 90 days during the period beginning after December 31, 2008 and ending before May 1, 2010.

Call DeHanas Real Estate Services and ask to speak with one of our Buyer Specialists, who can help you realize your dream of home ownership. Call 800-842-0190 today!

The Associated Press has just reported that new home sales are down for the third month in a row, with February sales at its’ lowest in over 50 years.  Evidentially, economists say that a healthy pace for new home sales is 700,000 a year, nationally, while we are currently on pace to building just 250,000….seems like we might have more than our share of new homes being built right here in Southern Maryland...at least in Waldorf.

Perhaps coincidentally, we have noted that it was about 3 months ago that the national builders in our area raised their prices, across the board by as much as $50k-$60 or more.  Consumers are obviously telling new home builders that they no longer see a value in buying new as a result of the price hike.

Another recent change in the market, and perhaps as a result of prices going up in new construction, is the rental inventory has fallen dramatically over the last 3-4 months, and we are seeing an increase in rental rates as a result.

This all sounds like a lot of bad news, but it could mean good news for the resale market. If home buyers are finding less choices, when it comes to selection, they might find resale homes, foreclosures and short sales more attractive options. If this happens, and I believe it already is happening, we might get out of this housing crisis that is currently upon us, sooner than later.  Prices are still declining and there is still an unknown amount of “shadow inventory” of bank foreclosures hitting the market, so there are still some unknown factors that will affect the outcome.

If you are an investor of residental properties in Charles County, the market couldn't be any better than it is now!  There are plenty of bargains on the market for the taking, especially if you are not afraid of a fixer upper.  And on the other hand, the rental inventory is at it's lowest in years, having recently dropped to less than 90 units in Charles County, and less than 50 in Waldorf. As a result rental prices are on the rise.

Investors are moving in and buying homes at unbelievably low interest rates, making some minor updates, paint, carpet and cosmetic repairs, and renting them within 30 days creating a positive cash flow for themselves of $200, $300, $500 and more a month!

Investors are either paying via mortgage loans or cash. We are also seeing investing groups (individuals, pooling their money together) who are making these kinds of purchases.

If you are in a position to buy two, three or four of these homes or townhomes, and turn around and rent them out, your monthly income could be as much you are currently making at a normal 9-5 job. There are tons of possibilities.

DeHanas Real Estate Services works with investors, helping them to reach their investment goals. Call today for more information, or to get started. 800-842-0190.

A total of 3.83 million Foreclosure filings were reported on a record high 2.87 million properties in 2010, up 2 percent from 2009 and an increase of 23 percent from 2008, according to a year-end study from Realty Trac, an on-line marketer of foreclosure properties.  The report concludes that 2.33 percent of all housing units in the United States (1 in 45) received at least one foreclosure filing last year. Nevada, Arizona and Florida posted the highest foreclosure rates in 2010.

On a positive note, the Foreclosure rates fell during the 4th quarter of 2010, which might be short-lived, as it is being attributed to all of the controversy surrounding the banks' mishandling of foreclosure documents.

If you want to know the current market value of your home, call 800-842-0190, or click on What's My Home Worth.

If you or someone you know owes more on thier home than it is worth, we may be able help you avoid Foreclosure. Contact us today!

DeHanas Real Estate Services is family-owned and operated.

12 Important Steps to Buying a Home

HOSTED BY                   

Now is the time to buy!  Don't miss your chance to take advantage of a very HOT buyers market!  The homebuying Strategies you will learn will give you a competitve edge over other buyers competing for the same properties, AND provide you with the knowledge to save thousands of dollars when purchasing your next home.

Learn About “Free Money” to use towards your new home purchase.

Learn from some of the best in the business!  You will have an opportunity to talk one-on-one with Title Attornies, Tax Accountants, Home Inspectors, Insurance Agents, Movers, Contractors, and of course a Mortgage Loan Specialist and Experienced Real Estate Agents.

• When: Wednesday May 4th, 2011
• Time: Doors Open at 6PM Seminar begins at 6:30PM
• Where: Waldorf Jaycees (at the corner of RT 301 and RT5/RT228 in Waldorf)
• Cost: FREE
• Refreshments Provided
• Door Prizes Awarded

  Bring a friend and learn together!!

RSVP by Friday April 29

Sign up today to reserve a seat at our Home Buyer Seminar on Wednesday May 4, 2011 at 6PM. Seating is limited.

CLICK HERE TO REGISTER

Since the glut of foreclosures began several years ago, previous home owners flooded the rental market, causing the cost of renting to go up slightly.  While this was happening, the cost of homes was going down. As a result, in 72% of US cities, it makes more financial sense to buy a home than to rent it. In a recent study conducted by Real Estate website, Trulia, median home prices were compared with median rental prices on apartments, condos and townhomes. Trulia CEO, Peter Flint says "Following the principles of supply and demand, renting has become relatively more expensive than buying, in most markets.

The local market has seen a dramatic shift in rental inventory over the past several months. During the last quarter of 2010, we saw an average of 500 units of rental inventory available, compared to less than 100 now, and the supply continues to drop.  As the rental inventory becomes limited, the quality of the property goes down, while the prices inch up.

In addition, property owners tend to want better qualified renters with better credit. In some cases it is not only cheaper to buy than to rent, it is also easier. With some banks having relaxed their tight standards renters with lower credit scores have another option.  Wells Fargo is now offering loans to home buyers with as low as a 500 score.

For more information on rental properties or puchasing a home, call 800-842-0190 or e-mail at [email protected]

As the real estate market has changed, so have the home projects that increase value and pay for themselves when it comes time to sell. One of the first topics of conversation I have with my clients when they come to me to sell their home is, what imporovements they can make in thier home to make it more sellable.

In years past when we were all benefiting from growing equity, it made since that your home's value would increase if you did a full kitchen remodel or add on a master bedroom addition, but as prices have eroded, the money spent on these projects might not be such a good investment.

I always recommend that my clients focus on the changes that are relatively free or low cost, such as painting, cleaning, and light landscaping. But sometimes a larger-scale remodel or repair is needed. According to Remodeling Magazine, exterior projects offer a larger return, than do inside projects. For example, the average cost to replace a garage door is $1,291, and according to research compliled by Remodeling Magazine, 80% of the cost of this project is recouped during a resale. Other renovations and remodels woth their price tags, including replacing your front door with a steel door, recouping 102.1% at resale, minor kitchen remodeling, 72.8% recouped, replacing wooden windows with vinyl, 72.4%, and some siding replacements can result in as much as an 80% recoup.  Master suite additions and adding bathrooms came in at around a 50% recoup during resale.

Overall, this report concluded that it is more profitable to focus on exterior projects rather than interior renovations.

If you are thinking about selling your home, I would be happy to preview it with you so that we can determin the best course of action to getting it sold for the highest amount of money and the least amount of hassle. Call me at 301-870-1717 x106.

It would be an understatement to say that this is a big week for financial markets.  The highly anticipated mid-term elections are on Tuesday.  Anything other than the expected sweep by Republicans could rattle markets.  The Federal Open Market Committee meets on Tuesday and Wednesday with a statement to be released on Wednesday at 2:15 pm.  The Fed will likely introduce a second round of quantitative easing which most market participants expect will be in the form of a $500 billion package of Treasury purchases over the next 6 months.  Lastly, we have the always important Unemployment Report for October on Friday.

RATE TREND: Steady.

CAUTION: Possible interest rate volatility later this week.

For up-to-date rate information, contact DeHanas Real Estate Services at 800-842-0190.

Dear Mr. DeHanas,

Thank you for contacting me about a homebuyers' tax credit in "The American Recovery and Reinvestment Act of 2009" (AARA, H.R. 1, Public Law 111-5). I have introduced legislation to create and expand such tax credits.

Whole communities are being affected by the housing crisis that is roiling our national, state and local economies, causing cutbacks in services, and hurting millions of hard-working Americans and their families at a time when they most need help. It is important to encourage prospective home buyers to jump into the housing market now.  First-time homebuyers account for more than 30 percent of the market.  In some communities, they account for 60 percent of the market or more.

I offered an amendment to AARA that would extend help for the ailing U.S. housing market through the end of this year by changing the date qualified first-time homebuyers could purchase a primary residence through December 31. Extending this tax credit through the end of this year will give many Americans the time to act smartly and swiftly to determine their first step into the housing market.

The American Recovery and Reinvestment Act as agreed to in conference and signed into law by the President on February 17, 2009, would provide first-time homebuyers in 2009 a credit against their federal income tax equal to a maximum of 10 percent of a home's purchase price, or $8,000.  The tax credit is refundable, which allows lower-income households with little or no tax liability to take full advantage of the credit. 

In addition to my amendment to AARA, I introduced S. 312, First-Time Homebuyers' Tax Credit Act of 2009 with Senator John Ensign (R-NV).  This legislation would provide a $20,000 refundable tax credit to first time-homebuyers for their principal residence. The credit is per purchase, not per person. Individuals with incomes at or below $75,000 and couples with incomes at or below $150,000 would qualify for the credit. This provision would expire one year from date of enactment.

Again, I appreciate your letting me know of your support for the homebuyers' tax credit.  Please be assured that I will continue to support efforts that minimize hardship in the event of foreclosures and help ensure homeownership.  If I may be of further assistance with this or any other matter of importance to you, please do not hesitate to contact me.

Prince George’s County Maryland has always been a great place to realize your American Dream, and the Prince George’s County Commissions are doing their part to make that dream a reality for more and more Americans. In an effort to combat two issues that the current housing crisis has cause;  Homebuyers not having enough money to qualify for a home, and the abundance of homes that have been foreclosed on that seem to be littering communities all over the County, a down payment assistance program has been developed for the purchase of Bank-owned properties.

The program offers down payment and closing cost assistance to purchase a vacant foreclosed home. Eligible homebuyers must be either first time homebuyers or cannot have owned a home in the previous three years.

There is an income requirement:

Applicants for DPCCA must have gross annual household incomes at or below 120% of the area median, adjusted for family size.  An income chart is provided below.

Effective Date : 4/27/2009
Median Family Income : 103,100.00 USD

Required Cash
50% or Below : 1,000.00 USD
60% -80% : 1,500.00 USD
%80 - %120 : 2,000.00 USD

This loan is a deferred payment, 0% interest. It must be your primary residence for at least 10 years, and you do not have to repay the loan if you stay in the home for 10 years or longer.

This program will provide down payment and closing cost assistance loans for purchases of vacant foreclosed properties in eligible zip-codes in Prince George’s County. The down payment and closing costs assistance will be higher for purchases in Target Areas or for Workforce Housing.

20607, 20608, 20705, 20710, 20715, 20716, 20720,20721, 20613, 20722, 20743, 20623, 20735, 20740, 20747, 20744, 20769, 20770, 20781, 20782, 20783, 20784, 20785, 20706, 20707, 20708, 20712, 20745, 20737, 20746, 20748, 20772, 20774.

Of the 33 zip codes above the following are considered Target Zip Codes:

20716, 20743, 20747, 20744, 20783, 20785, 20706, 20708, 20746, 20748, 20772, 20774

For more information on qualifying for this program, call DeHanas Real Estate Services at 301-870-1717 or 301-638-3443.