Central Oregon Real Estate

Did You Miss The Tax Credit? No Worries

Today was the last day for a buyer to have a signed contract for both the first time homebuyer and the move up buyer.  So, now that the deadline has passed and no one really expected to see it extended yet again where do we go?  Back to normal?  Well what is normal?  A couple things to think about before you think you missed out on something.

Although you may feel like you lost out on a bigger tax return, what would you do with that return?  Most of you, if you were honest with yourselves, would spend it in less than a week.  The new big screen TV, a newer car, a vacation or carpet for the new house.  Am I wrong?

So, now that the big lure is over, lets look at what you can still obtain.

• Pricing – prices are still coming down in several areas and now that the “frenzy” is over will the market slow a little?  Only time will tell, but my guess from the agreed to pricing I saw this week I think you may be pleasantly surprised.
• Other programs, there are new programs being unveiled everyday.  One of the favorites right now is the Neighborhood Stabilization Program (NSP) this is a great program that allows for 100% financing in a creative way, on bank owned or foreclosed homes.  The NSP loan is basically a second mortgage that is interest free and payment free, as long as you met certain guidelines.  So, if you missed the tax credit but you buy a home for $10,000 less than you would have and you have a NSP loan which means no payment on about 20% of your purchase… you will be saving more than that $8000.
• The tax credit was just that a credit – not everyone got $8000 – so, did you really loose $8000?

If you are a first time home buyer there are several homes in Central Oregon that can easily be purchased for less than some are paying for rent.  If you are paying $850 or more a month for rent, purchasing a home very well may be a great option for you.  Give me a call, let’s see what we can do to save you more than $8000.

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Tax Credit Deadline Approaching

I am amazed at how many people are totally unaware of what the tax credit is and how helpful it can be to a home buyer. The current home buyer tax credit does not just benefit the first time home buyer but any homebuyer.

Below is a quick list of qualifications for the home buyer tax credit.

1. You must buy – or enter into a binding contract to buy a principal residence – on or before April 30, 2010.

2. If you enter into a binding contract by April 30, 2010 you must close on the home on or before June 30, 2010.

3. For qualifying purchases in 2010, you will have the option of claiming the credit on either your 2009 or 2010 return.

4. A long-time resident of the same home can now qualify for a reduced credit. You can qualify for the credit if you’ve lived in the same principal residence for any five-consecutive year period during the eight-year period that ended on the date the new home is purchased and the settlement date is after November 6, 2009.

5. The maximum credit for long-time residents is $6,500. However, married individuals filing separately are limited to $3,250. The maximum credit for first-time homeowners is $8,000 (up to $4,000 for married filing separately).

6. People with higher incomes can now qualify for the credit. The new law raises the income limits for homes purchased after November 6, 2009. The full credit is available to taxpayers with modified adjusted gross incomes up to $125,000, or $225,000 for joint filers.

7. The IRS will issue a revised Form 5405 to claim this credit on 2009 tax returns. The revised form must be used for homes purchased after November 6, 2009 – whether the credit is claimed for 2008 or for 2009 – and for all home purchases that are claimed on 2009 returns.

8. Homebuyers who claim the credit on their 2009 tax return will not be able to file electronically but instead will need to file a paper return. For homes purchased in 2009 there is an option to take the credit on an original or amended 2008 tax return.

9. The new law includes documentation requirements. See revised Form 5405 for details.

10. No credit is available if the purchase price of the home exceeds $800,000.

11. The purchaser must be at least 18 years old on the date of purchase. For a married couple, only one spouse must meet this age requirement.

12. A dependent is not eligible to claim the credit.

These qualifications are taken directly from the IRS website and the publication is referenced with a link at the bottom of this post.

One of the things that is misunderstood is that any buyer qualifies obviously that is not necessarily the truth.  Another is that you must close by April 30th – note it says be under contract – this means an accepted offer – with all parties agreeing to the terms of the contract.  If you are looking to purchase a short sale you may not have enough time to close escrow as you are at a the mercy of a third party to agree to the transaction.

IRS Publication 4819

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The Bank Owned Home – Multiple Offers?

So, you are starting to look for a new home and you find bank owned homes to be the most affordable!  So do a lot of other buyers, many times even in “this market” we are finding the bank owned home priced so well that there are multiple offers.

Homes you can expect a multiple offer situation is the home that is clean, not stripped of it’s fixtures and ready to move into.  So, how do you insure you are the winning offer on one of these properties?

1. Know the market – and make an offer that is reasonable.  If you are asking the bank to pay your closing costs, you may need to make your offer closer to the list price or possibly higher than list price.  Most banks are willing to pay up to 3% of the purchase price in closing costs, however if you are in a multiple offer situation you may want to formulate your offer so this is off set in the purchase price.
2. Apply for your loan ahead of time.  Most banks will ask for a pre-qualification letter (prequal) with the offer.  Having a good relationship with your lender will make getting this ahead of time or at the time of the offer much quicker.  If you plan to purchase with cash, the bank will want proof that you have these funds available.
3. Inspection – be sure you have a home inspection, many of these homes have sat vacant for some time prior to going on the market.  Many of the deficiencies of the home may not be as obvious as they would be if the home was occupied.
4. Make sure you have your own agent.  The bank has their agent, and using their agent will not get you a better price.  You deserve to have someone on your side and watching out for your best interests.

As a Certified Distress Property Expert, I am happy to help you purchase a bank owned home, short sale and even a standard resale property.  Real Estate is a crazy world, let me help you make it through the process without the stress.

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Village at Sunriver has New Manager!

The Village at Sunriver has hired a new operations manger, Denease Schiffman is now responsible for tenant relations, overall management and assisting with lease agreements.  She is quoted in the Sunriver Scene as saying “I spent the first 30 days on the job ensuring that tenants are accommodated due to all the construction, mitigating impacts from the construction by  directing traffic flow and ensuring customer access.  Every day is different.  I walk the property looking for issues.  I talk to tenants.   I’ve met them all at this point.  I’ve never dealt with easier clients in the midst of a construction zone.”

As a property manager Schiffman has 12 years of property management, most of which is commercial.  Her experience varies from the U.S. Bancorp Tower in Portland to the simple mom and pop store, she has also worked the Bend retail buildings.  I have yet to meet her, but I have heard great things about her attitude and capabilities.

Ryan Smith, who was the  director or operations has not left us, he is now focusing on promotions and events to attract shoppers, and guests to the Village.

Phase One continues with the redevelopment, installing new composite roofs on buildings 23, 24 and 25 is basically complete.  When you are in the Village, take a look at the new dormers, windows and fresh siding.  Now on to building 22, it is slated to receive new windows, entry doors, cedar siding and some stone work for additional accents.   If you are heading to Goody’s or Toy Kingdom, you might anticipate changes in your entry area.

Building 22 is slated to be the signature building – The outcome of this building is what you can expect for the entire mall.  To read more – check out The Sunriver Sceen the mall update can be found on the front page and page 4.

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Sunriver Short Sales and Bank Owned Homes Nov 09

Sunriver has not had the number of short sales or bank owned properties that the rest of Central Oregon has seen.  But there are a few great homes to choose from that fall into this category, remember not to limit yourselves to just the bank owned or short sale, a lot of  sellers have lowered their prices to compete with the bank owned and short sales in Sunriver.

Click here for your List of Bank Owned and Short Sale Homes in Sunriver

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