Peggy Chirico ~ Hartford & Tolland County Real Estate Blog: December 2009

I admit it! I watch too much HGTV.  My days are consumed with all things real estate, but my nights too?  My family just doesn't understand it.

I'm not even sure I can explain it.  There are too many commercials, too many unrealistic people, and way too many pat answers for everything.  Maybe I just need to know what my potential homebuyers and sellers are being fed in the way of expectations.

But last night, the program My First Place was ridiculous!  At first, the program proceeded like all the others in this series--formulaically from current living arrangements, criteria, the search, the negotiations, the inspections, the closing, the closing gift.

Except on last night's show, the young couple is in the agent's office.  They have found the house of their dreams.  They have written the offer, faxed it over to the other agent, and were waiting for the response.  Then one of the couple says to the other, "The sellers pick up the closing costs, right?" And with that, the agent walks in to tell them that their offer is accepted!  Oops, now what?  Where are they going to get the $9000 they need for closing costs?

ARE YOU KIDDING ME?  Apparently, this was the first time that the subject of closing costs came up, which I find very difficult to believe.  I personally don't know any Realtor who would not discuss closing costs long before an offer is written.

In addition, who did they talk to about a mortgage? Because I don't think a reputable mortgage person would omit closing costs from any discussions either.

Shows like this put our profession in a bad light.  We come across as self-serving charlatans out to make a quick buck.  The public never sees the hours of education, research, facilitation, negotiation, and administration that goes into every deal.

So I guess the moral of my story is: Don't rely on HGTV for all of your information about buying or selling a home.  While there are nuggets of truth and helpful ideas, homebuyers and sellers should educate themselves about the process.  There are professionals in the fields of real estate, financing, and law who will make your real estate transaction happen with all the diligence this expensive transaction deserves.

Each transaction is unique and unforeseen problems occasionally arise, but your best approach is knowledge and planning. Find professionals who can help expand your knowledge and monitor the entire deal with you. And watch HGTV as entertainment, not reality.

The temperatures are very brisk today (low 20s), and spring can't come too soon for most of us.  But the reality is that if you are looking to take advantage of the first-time homebuyers' tax credit of $8000 or the move-up buyers' tax credit of $6500, you don't have much time to find your dream home.

Potential homebuyers have until 4/30/2010 to have a signed contract and they must close by 6/30/2010.

If you have not yet begun the process, there are several important steps that you must do before you can sign that contract, including:

1. Seeing if you qualify for a mortgage.  Speak with a top-notch mortgage expert to find out how much you can afford to spend on a house, what types of loans are available to you, how your credit impacts your ability to buy a house, etc.
2. Determining your requirements in a home.  Today's homebuyers are internet-savvy, and most begin their search on-line.  There is a wealth of information covering virtually all aspects of home-ownership, and the options are plentiful.  Thinking in advance about what you need in a home will help make your search more fruitful.
3. Finding a Realtor who will help you achieve your goals.  A Realtor acts in your best interests as your agent.  When you first meet with a Realtor, you should spend time discussing your wants and needs, how the process works, and what your roles and expectations will be.  Your Realtor should be someone you trust and want to work with.  A skilled Realtor is your resource for helping you sort through options, keeping you informed of all changes, monitoring all deadlines and details, protecting your assets, and make the decision-making process more streamlined for you.

This process takes some time, but fortunately you can still meet this deadline.  There are great houses on the market now, prices are very attractive, interest rates are still low, and the tax credit is a great incentive.  NOW IS A GREAT TIME TO BUY A HOME!  I will be more than happy to help you with your search.  Contact me and we can get started.

In case you were wondering if you can still find a home to take advantage of the FIRST TIME HOMEBUYER TAX CREDIT of $8000 or the MOVE-UP BUYER TAX CREDIT of $6500, there are plenty of opportunities out there for you. 

Although the holidays are in full swing, the real estate market has not taken a vacation.  In my market area, here are the numbers of homes that are currently for sale in two categories:  $250,000 and under and over $250,000.

In addition to ample inventory, there are several other advantages for starting your real estate search now:

* During the holiday season, fewer buyers means less competition.

* Interest rates are very low right now.

* Many homes are attractively priced.

* You will have plenty of time to take advantage of the first-time homebuyer credit or the move-up buyer credit (the contract must be signed by 4/30/2010 and closed by 6/30/2010).

These are just a few of the towns I serve; if you are interested in seeing the numbers for other towns, please let me know.

If you are eager to start your home search now, give me a call and we'll get started today!

Happy Holidays, Everyone! I hope that everything you are wishing for comes to you this holiday season, including warm family gatherings, joyful conversations, favorite foods to share, and the makings of wonderful memories.  Have a safe, happy, and healthy holiday.

And all the best to you and your families in the new year!

The new first-time homebuyer tax credit is getting a lot of press, and we can expect things to really heat up after the first of the year, as those who have taken a break for the holidays jump back into the market.

It's also a good time to clarify who is eligible for the credit, as well as some facts about the tax credit that people may not be familiar with.

THE BASICS:

Who is a first-time homebuyer:  Anyone who has not owned a home for the past three years.  If someone owned a home ten years ago, sold it four years ago, and has been renting since then, that person is considered a first-time homebuyer.

How much is the credit:  The credit is 10% of the purchase price of the home, up to a maximum of $8000.  If you purchase a home for $50,000, you will only receive $5,000.

How long is the first-time homebuyer credit in effect?  The new home must be purchased (under contract) by April 30, 2010 and the closing must take place by June 30, 2010 (before 7/1/2010).

Are there income restrictions:  Yes, in general, married people with a modified gross adjusted income of $225,000 will receive the entire credit (with a phase-out for higher incomes); single people with a modified gross adjusted income of $125,000 will receive the entire credit (again, with a phase-out for higher incomes).

What types of homes can be purchased:  Homes that will be used as principle residences only qualify, including single-family homes, condos, multi-family homes that will be owner-occupied, mobile homes (with and without land ownership).  The home must be in the United States.

For a detailed explanation of these and other points, read the IRS guidelines.

OTHER CONSIDERATIONS:

There are some fine points that people may not be aware of.  For example:

• If you are purchasing a multi-family and plan to live in it, you may only qualify for 10% of your portion of the building.  For example, if a 3-family home is purchased for $240,000 and if your unit is worth exactly one-third of the building, you will receive the full credit (10% of 80,000).  If you purchase the building for $210,000, you will only receive $7,000.
• If you owned a house outside of the U.S., you would be considered a first-time homebuyer if you purchased a home in the U.S.
• If you purchase a home from a spouse, parent, child, grandparent, or grandchild, you are not eligible for the tax credit.
• If a person buys a newly-constructed home, the purchase date is the date that the buyer occupies the home.
• If a person owns a rental property but has not lived in the property for three years, that person is eligible for the tax credit if he/she buys a new principle residence.

For special situations, read the IRS frequently-asked questions. 

If you have other questions that you would like to ask, please contact me.

Not finished with your holiday shopping yet? Then get ready to shop! Thursday is free shipping day.  You can shop online and get free shipping from over 600 merchants.  Some of them have minimum order amounts, but many will ship anything for FREE!

Free shipping is music to my ears! Shop in your P.J.s, avoid the crowds, and let them bring it to you!

For more information, go to www.freeshippingday.com.

Happy Holidays!

I know the holidays aren't even over yet and we have just experienced our first snowfall of the season, but my thoughts are already fast-forwarding to the spring season!

Spring is typically a very active time for real estate, but there is a greater urgency this year.  The first-time homebuyers' tax credit has been extended, and any first-time homebuyer who wants to qualify for it must have a contract on a home by April 30, 2010 (and close by June 30, 2010). 

In addition, Congress also passed a tax credit of $6,500 for people who are not first-time homebuyers.  Homeowners who have been in living in their current homes for at least five years may qualify for a $6,500 tax credit. 

What does this mean for you?  It means that now is the perfect time to buy a new home:

* The tax credits are great incentives.

* Interest rates are very low right now.

* Home prices are attractive.

* There are great buys out there now.

Why wait for spring to start your search? Start now while everyone else is waiting for spring and beat the rush!  There is the perfect new home out there for you, and I would love to help you find it.

The holidays are upon us, and there are many people who could use a helping hand.  The newspapers have been posting suggestions for how we can help, so I thought I would summarize and post a list here with phone numbers for drop-off locations or information.

Tri-Town Pantry run by Hockanum Valley Community Council at 29 Naek Road, Vernon, CT.  Food, money, or adopt-a-family. 860-872-7727.

Community Health Resources: Adopt-a-family, The Giving Tree, general donations for children in five group homes. 860-731-5522 x 214 or x 242.

8th Utilities District: Canned Goods Drive and Christmas Tree Fundraiser. At the corner of Main and Hilliard, Manchester, CT. 860-643-7373.

Buckingham Estates Memory Care Community: Stuff-the-Van for U.S. Marine Corp Reserve Toys for Tots Foundation on 12/19/09 from 10-3. 860-647-1695.

Interval House: Toy drive. 860-646-4081

Manchester Area Conference of Churches: Food, paper products, hygiene products including diapers, household goods, money. 860-647-0440

I'm sure I have missed many organizations that are looking for help.  If you have a favorite that you would like posted, please send me the information and I will gladly post it.

When one of the agents in my office requested toy donations for families in need in my town, I gladly agreed to donate something. I had asked the other agent what kind of toys would be appreciated, and she said that they had received a lot of toys for preschoolers and younger children but not much for children over the age of 9 or 10.

Truth be known, I have not bought toys in at least ten years, but I blithely set off for Toys-R-Us to find a couple of toys that would be enjoyed by someone.

Wow! Was I out of my element!  After wandering the store for an hour, watching what other people were putting in their carts, I left empty-handed feeling like a deer in headlights.  I admit that I wanted to pick a perfect toy (for an unknown child at that) and I was paralyzed by over-analysis.  Did this toy have small pieces that a sibling might choke on, did it promote violence, would the parents approve, would the child like it, was it dorky, etc., etc.?

So, of course, I am going to turn to all of you experts for advice:

  What are some of your best toy ideas?

I need to go back out there soon so I would REALLY appreciate your suggestions.

There is still plenty of time to donate.  The need is great, and each of us can make a difference and make this holiday season special for someone in need.  Just about any school, police department, fire department, mall, toy store, grocery store, or church accepts donations.

Congratulations, Bruce!   My favorite, Bruce Springsteen, was selected for Kennedy Center Honors of 2009 for his contribution to American culture through the performing arts.

Bruce, who turned 60 on September 23, 2009, is truly one of America's poet laureates and deserves this honor. He has spent his life writing and performing music that rocks on and rocks our world.

For a great bio, read the write-up on Bruce Springsteen for the Kennedy Center Honors.

For a great book, read It Ain't No Sin To Be Glad You're Alive: The Promise of Bruce Springsteen by Eric Alterman.

What's on your playlist?