Washington County, Maryland has instituted a wavier of excise tax until April 1, 2010.  It is a great opportunity for buyers in the market for new homes to take advantage of up to an $ 8,500 credit on their new home.  Building permits need to be issued by the April 1st date.  Early on in the program the public was not aware of how it worked but have now become more informed and are taking advantage of this offer from the county.  It is great that Washington County Commissioners have made this offer to the homebuying community as they have felt some resistence from those that may not see the need of this offer for new construction.  As an group numbers run around 25% unemployment in the construction industry.  Anything that can be done to keep this industry employeed will do wonders for the economy in this community.  Thanks to the Washington County Building Department and the Washington County Commissioners.

Some people may still not know about the $ 8,000 tax credit for first time homebuyers and the $ 6,500 credit for the second time buyers but it’s still here until April 30, 2010.  We are happy to have the new year upon us but the deadline to sign a contract to buy a home is still April 30 and will get here sooner than we think.  Give us a couple weekends  of bad weather and it’ll be March before we know it and then we’ll be busy with spring type things and soon it will be April 15th and we’ll need to do our taxes and next thing you know we’re scrambing to find a home to buy the last couple weeks of April.  I encourage you, that if you’re in the market for a home under the tax credit don’t wait.  I know you read about the availability of homes on the market but a lot of them are not in excatly “live-in” condition.  If you think you’re going to buy a short sale or foreclosure between now and the end of April unless you’ve had it under contract for about 6 months right now it will not happen.  Note- I did not say it probably will not happen - I said it will not happen. You cannot at this stage get a contract on a bank owned or short sale and get it ratified by April 30, 2010.  You can talk to anybody that has tried to do it and you’ll find I’m telling you the truth. 

Remember, you second time buyers also get a tax credit also but only for $ 6,500.  Really, that’s a great deal.  I didn’t get a tax credit when I bought my last home.  This warning holds true for you in finding a home.  You need to start ASAP.  You also need to deal with selling you current home.  Don’t think it can’t be done either.  I know a guy who recently decided to put his home on the market and sold it in 10 days and then had to figure out where he was going to move because he heard all the things about the real estate market being slow so he didn’t really look- so get started and be persistent. 

Good luck in you home searches.

I don’t think most people realize how important it is to extend the tax credit for home buyers.  Right now it is set to expire December 1, 2009.  What most buyers do not understand, if they have not purchased a home recently, is that you cannot buy a home in November and expect to go to closing ( a requirement of the credit) before December 1, 2009.  My daughter is now buying a home and has signed a contract and applied for a loan and it will be about a 45 day process from signing a contract to settlement. This is normally how long it takes to go from contract to closing.  Assuming the Tax Credit is extended it will allow for many of the buyers who maybe haven’t even found a home to buy to conitnue in their purchasing efforts.

Our company, Oliver Homes, Inc. builds new homes and you can imagine how hard it is to move the time table backward.  If it takes 4 months or more to build a new home you will need to to start construction within 120 days of the end of the tax credit or tax credit extension.  Moving that back further it may take a few weeks or so at a minimum to decide what type new home they would want so it is imperative to almost start now in looking at a new home to be constructed. 

As we move thru life it comes and goes too fast.  For one buying an existing home or new home the six month extension that is really necessary for the real estate industry it will come and go too quickly.  You need to start looking right now -not to take advantage of the current tax credit but to take advantage of the new extension of the next tax credit.  Then hope it gets approved.  Happy home buying!!

When it comes building on your lot many things need taken into consideration for the home buyer. I will in this post only talk about  the value of the lot.  In looking at the value of the lot in the build on your lot situation one needs to be aware that if a client is doing a construction loan he will probably need a 20 % downpayment of the total amount of the home purchase price and the lot value.  If the lot is worth say $ 80,000 and the new home to be built would be $ 170,000 then the total cost of the new home (including the lot) would be $ 250,000.  A 20% downpayment would require an investment of cash or more likely value of $ 50,000.  We have stated that the land value was $ 80,000 which would then qualify for the 20% downpayment.  This assumes that no loan remains on the land itself.  If there is a loan on the land it cannot have a loan balance of greater than $ 30,000.  Financing for a new home that is built on build on your lot situation can be tricky but very rewarding with a lender that specializes in this situation. The website www.oliverhomes.com has some good information on building on your lot as they build many homes on individual homeowner’s lots.  Good luck with your building.

As I write this I am surprised at the sometimes lack of interest in the $ 1500 tax credit for energy efficiency improvements to your home.  Now I do realize that the credit is in some ways hard to understand but is anything the Federal Government easy to understand - i.e. read the tax code or a Medicare Benefit statement.  This is, however, something to take advantage of this year and in 2010.  Find a remodeling contractor who has an understanding of what is happening in this area, confirm that information with your accountant, and save 30% on a product for your home that qualifies.  It really is a great deal.  You get a 30% discount from your taxes, you get continuing energy savings on your elelctric, oil or other utlilty bill, and you enjoy a more comfortable home.  It ’s a win all around.  Good luck and go for those savings.

The current stimulus package including the $ 8,000 first time buyer tax credit which is set to expire November 30, 2009 needs to be extended.  In the current state of the economy we are not seeing a tremendous influx of homebuyers who are taking advantage of the tax credit.  They are obviously saying “I need to make sure I have a job before I can take advantage of the tax credit”.  This is very true.  If you don’t have employment you don’t need a tax credit.  Extending the tax credit would at least help people as their confidence in employment increases they will feel more inclined to make a major purchase such as a new home.  Let’s work on congress to extend this tax credit.

In reviewing the documentation on the energy tax credits for home improvements I would agree with many who talk about the confusing nature of the explanations.  We do need to be aware that despite the confusing nature of what products are available for the tax credit it is a 30% tac credit.  This amount of credit is worthy of the research involved in figuring out what it is involved.  On regular projects, i.e. replacement windows, doors, etc there is a cap of     $ 1500 and you only get the credit on the material itself.  Sounds pretty simple until you figure out that the windows you use in one location i.e. Florida that qualify there do not qualify in say Maryland where I live.  The same is true the other way in that the windows that qualify in Maryland may not qualify in Florida.  It is important to deal with a contractor who is knowledgeable about what products qualify and what documentation is needed when you get ready to fill out your 2009 taxes.  From what I’ve seen I do not expect your accountant to figure it out as he’s not into home improvements.  We have been working on giving people the documentation and saying take this to your accountant when you do your 2009 taxes and get the 30% tax credit.  Best wishes in taking advantage of a great opportunity in improving your home and getting a 30% tax credit to boot !!

With the recent snow in the Northeast it’s hard to imagine that spring is really just around the corner- less than three weeks away.  Now I’m not thinking of the birds and plants and so forth but those people that have heard all the bad things in the economy and maybe they’ll just come out and buy a new home.  With the recent $ 8,000 tax credit - a real credit not one you have to pay back, and great prices the opportunity is fantastic.  We have Home Shows the next three weekends and with some good weather and maybe even some fair economic news we’ll see some buyers.  People who have some type of stable employment and reasonable credit and downpayment will find this is a time they can find housing at a more affordable price than possible in years past.  We’re not talking just a few dollars but thousands of dollars in savings that are out there right now.  Happy Homebuying!1

In looking at the economy and housing we see all the negative things shown and say - woe is me.  Actually, there are more postive things happening that the press wants us to know.  Even in a recent article in my local newspaper it talked about the job losses, etc. and then at the end of the article did say during that timeframe (of the job losses) the local economy saw an increase in local job growth.  We don’t really know where those gains were because the media doesn’t want us to know.  Good news rarely sells any media whether it’s papers, internet advertising, or other media. 

Analyzing the housing industry there is such a slowdown in the large housing states of California, Florida and Texas that they make any slight gains in other areas look like overall losses.  Is it bad- yes it is bad - but is it as bad as the media reports- probably not.  We do face tough times in today’s market but there are bright spots.  We must work to clean up the credit crisis and get money back into the economy.  Yesterday in a meeting with a financial advisor it was stated that around 40 percent of monies available are sitting on the sidelines waiting to see what will happen and where to put it.  We need to get consumer confidence back so that 40 percent can go to work and earn some money and buy American products.  Housing is a commodity that will survive as people will need homes but we will probably not see the excesses that we have seem in the past.  Looking forward to your thoughts as we proceed thru the next weeks and months.

Many people in today’s market are looking at whether I should buy a new home or just remodel my existing home.  In looking at both sides of the issue in today’s market you have to consider many factors.  Obviously, you are not moving in the remodel situation and you already know your neighbors and community.  Sometimes that may be good and sometimes that may not be so good.  Anyway, it is not an unknown.  You’re also familiar with your home if you’ve been there a while and know what improvements, maintenance, etc you have done.  You then have to look at the cost involved in the home improvement and the benefit to you.  Are you looking at remodeling the kitchen or are you looking to add more square footage.  Then you need to ask am I going to have a home that is more than the value of the neighboring homes.  If it is more than 20% more than the average value of homes in your neighborhood you will probably not recoup the value of the improvement. 

In looking at the new home you ask some of the same questions concerning location but can be more secure from a maintenance standpoint knowing you have a new product.  Usually the values in a new home neighborhood are similiar and probably are not of concern that you would be overbuilding for the neighborhood. Financing is another option in your new home as you can, depending upon your downpayment, include other items such as debt consolidation, college loans, auto loans and the like.  The biggest thing in the purchase of a new home is that you get to pick what you want at the time of life you are in at that point.  If you are a young family you may need more bedrooms and yet later in life you may be looking for a one story floor plan.  Your life needs change which require your housing needs to change. 

Best of wishes in your adventure of buying or remodeling your home!!