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

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!!