Chance Gates' Blog

Eligibility:

A home owner who has owned and resided in a home for a least 5 consecutive years of the 8 years prior the purchase date.  If married the law test for both home buyer and spouse.

Income Limits:

Single                                     $125,000

Married filing a joint return   $225,000

Other terms apply

Home Eligibility:

Any home that will be used as a principal residence, that cost less than or equal to $800,000.00, will qualify for the credit.

Important Note a home may not be purchased from a family member.

Down Payment Eligibility:

HUD allows buyers using FHA-insured mortgages to apply their anticipated tax credit towards their home purchase immediately.  These funds may be used for certain downpayment and closing cost expenses.

For some commonly asked questions re-visit

http://chancegates.com/2009/12/03/first-time-home-buyers-tax-credit-extension-quandaries-answered/

Other terms and conditions apply please talk to your CPA

The Indianapolis Colts are screaming write along.  This week they come against the Tennessee  Titans who have new life.  After being bench for making to many strange calls Vince Young has come back with a fury.   I like the Titans to keep it close.  Take the titans and the points.

There is a misconception in the market place that sellers net more proceeds by selling their homes themselves without the help of a real estate professional.  Not so according to a study by the National Association of REALTORS* that shows that sellers make an average 16 percent more on the sale of their home when they use a real estate professional than when they sell it themselves. http://chancegates.com/2009/04/    Tells of different strategies Real estate professionals know and use market a home to reach the greatest pool of potential buyers.

The complexity of new home buyer tax credits leaves potential buyers with many questions. Here are
answers to some of the most confusing:
How does a current home owner qualify for the $6,500 credit?
Buyers must have lived in their homes for at least five out of the last eight years. The home they buy
must become their primary residence, but buyers don’t have to sell their previous home. They can use
the previous home as a rental or a second home and still claim the credit.
Does the new home have to be more expensive than the one the buyer currently owns?
No. It is fine to use it to downsize. If the property sells for more than $800,000, the buyers don’t qualify.
Can buyers who are building a new home claim the credit?
Yes, although the contract must be in place by April 30 and the buyer must move in by July 1.
Can buyers claim the credit if they purchase a home from a relative?
No. The legislation prohibits taxpayers from claiming the credit if the sale is between “related parties,”
including parent, grandparent, child, or grandchild.
Source: USA Today, Sandra Block (11/24/2009)

Sales

Below is a summary of the October market conditions

• • October ended the month with 553 sold transactions up 9% from the prior month. Sales were up 59%

over the same period last year.

• • Sales Mix:

o Bank Owned unit sales were down in October to 181 as compared to 189 in September. Bank

owned sales represent 33% of the sales, down from 37% in September.

o Short Sales were at 134 in October, up from 125 reported in September. Short sales represent

24% of the mix in October as compared to 25% in September.

o No Special Condition (None) sales increased in October to 198 as compared to 155 in

September. Sales reported as “No Special Condition” represented 36% of the sales, up from

31% reported in September.

Median Price

• • October 2009 median price was down 3% to $180,000 compared to $186,000 in September 2009.
• • Median price is defined as the mid-point, half of the sales for the time frame (October) are below and

half are above

Sales by Price Point

• •The number of sales in the under $150,000 price range has increase for

three consecutive months – October (194 sales), September (178 sales) and August (166 sales). There

was an increase in sales $151,000 – $200,000 for October (134 sales) compared to September (113

sales); $201,000 – $250,000 for October (91 sales) compared to September (94 sales).

• • 34 closings were over $450,000. In the over $450,000 price range, 6 of the closings were Short Sales

and 6 were Bank Owned.

Pendings

• • There were 652 new Active Pending sales reported for the month of October, up 3% from the prior

month.

• • 79% percent of October pendings are distressed (short sale and bank owned).

Listings

• • 614 new listings were taken in October compared to 709 in September, a 13% decrease.
• • The percentage of “Distressed” new listings was up 3%. 61% of new October listings were distressed -

225 Short Sales, 147 Bank Owned.

Source  http://rsar.net/uploaded/documents/RSAR%20October2009RenoMonthlyMarketReport.pdf