Congress is considering the expansion of the $8000 tax credit to include all homebuyers who meet eligibility requirements. There are several proposals now before committees that would expand the credit from $8000 to as much as $15,000. Currently the full credit is available to first time buyers who make $75,000 or less ($150,000 for joint filers) and a partial credit for individuals making between $75,000 and $95,000 ($150,000 to $170,000 for joint filers.) Those in favor of extending the credit's scope say that doing so will boost home sales, stabilize housing prices, and create jobs.
Mark Zandi, chief economist of www.MoodysEconomy.com favors extending the credit until June 2010 according to a recent post on that website. He cites the impact of housing on the economy as a whole.
(Thanks to e news from Franklin Mortgage for the facts cited above!)
Tuesday, October 20, 2009
Tuesday, October 13, 2009
Interest rates will rise
Yup....you are hearing it here, but did you know that as economies improve the Fed will be forced to increase interest rates? Used as part of the "toolbox" available to market regulators, interest rates tend to increase when inflation is on the rise. Inflation occurs when there is too much money chasing too few goods.(It is actually more convoluted than that...) People are afraid that the Fed has put too much money out there for the volume of goods being produced.
However, unemployment is still high, so the Fed is artificially keeping rates low for the time being, in an effort to assist businesses in getting affordable credit to create jobs. If people go back to work, more goods are produced and consumer demand increases......well, you get the general picture.
Eventually, rates will need to increase, or be increased, to remove money from the system. The hard part for homebuyers is that mortgage rates will increase , also, as the rates are tied to long term treasuries. For every quarter point of a rate increase, the homebuyer's monthly payment increases. This can limit the price of a house one can afford.
Why wait?? House prices are LOW, mortgage rates are LOW! A buyer can get the best deal seen probably since...........this writer doesn't know when!
NOW IS THE TIME!!!
However, unemployment is still high, so the Fed is artificially keeping rates low for the time being, in an effort to assist businesses in getting affordable credit to create jobs. If people go back to work, more goods are produced and consumer demand increases......well, you get the general picture.
Eventually, rates will need to increase, or be increased, to remove money from the system. The hard part for homebuyers is that mortgage rates will increase , also, as the rates are tied to long term treasuries. For every quarter point of a rate increase, the homebuyer's monthly payment increases. This can limit the price of a house one can afford.
Why wait?? House prices are LOW, mortgage rates are LOW! A buyer can get the best deal seen probably since...........this writer doesn't know when!
NOW IS THE TIME!!!
The Perfect Storm
October is the month of crazy weather changes and conditions that led to the October Atlantic storm giving rise to the conditions that were featured in the book and movie of the same name. This October is a perfect brew of conditions that are the most favorable that homebuyers have seen in a long, long time!
First time buyers in particular should be out searching actively for their perfect home. Not only can they take advantage of an $8000 tax credit (money in your pocket), but in Maine can possibly qualify for another $5000 towards closing costs through the Green Money program at Maine State Housing. Combine this with rates near and below 5%.......well it should be a no brainer.
If your credit score is above 640 and you have some money saved, get out there. The house you choose must be closed by December 1, 2009. It takes 4 to 6 weeks to close.....
First time buyers in particular should be out searching actively for their perfect home. Not only can they take advantage of an $8000 tax credit (money in your pocket), but in Maine can possibly qualify for another $5000 towards closing costs through the Green Money program at Maine State Housing. Combine this with rates near and below 5%.......well it should be a no brainer.
If your credit score is above 640 and you have some money saved, get out there. The house you choose must be closed by December 1, 2009. It takes 4 to 6 weeks to close.....
Friday, June 19, 2009
Update on MSHA program
I have done a little more research and have talked to a lender who is as familiar with the program as can be at this point. It is actually a credit of UP TO $5000 but no more than 4% of the loan amount. The borrower must contribute 1% of the loan amount. Under programs such as MSHA/FHA this can be a gift. The program ends November 30, 2009. Hope that is more clear!
I strongly encourage any borrower to consult with a loan officer regarding whether or not this makes sense.
There are income limits ,also, that apply!
I strongly encourage any borrower to consult with a loan officer regarding whether or not this makes sense.
There are income limits ,also, that apply!
Maine State Housing Offers $5000 to 1st Time Buyers
I just learned today that MSHA (Maine State Housing) has finally launched their "Gift of Green" program. This program offers $5000 that can be put towards closing costs, down payment, or escrow funds. There are also coupons for up to $500 for energy audits. The money is limited to approximately 500 buyers. There are upper income linits. This is in addititon to the $8000 tax credit being offered by the Feds. For more information go to www.mainehousing.org.
Sunday, May 31, 2009
Where did the time go or Tempus Fugit!
I have been extraordinarily busy with first time homebuyers in the past week. They are all smart as heck to be out there looking and putting houses under contract while the sun is shining and the rates are still low. My little Wall Street prognosticator friends say all signs point to higher rates, sooner rather than later as the economy bumps and jolts out of its latest swoon.
As I have repeated frequently, there is $8000 out there waiting for you if you have not owned a house in three years. Why not take advantage of that? If you need to work out the credit blues, get hooked up with folks who can help you raise the scores. Believe it or not, you can get a 100% loan with a 640 score through RD guaranteed. Find someone who knows how to find out if you qualify!
The sun is out. Summer is around the corner........the time is NOW!
As I have repeated frequently, there is $8000 out there waiting for you if you have not owned a house in three years. Why not take advantage of that? If you need to work out the credit blues, get hooked up with folks who can help you raise the scores. Believe it or not, you can get a 100% loan with a 640 score through RD guaranteed. Find someone who knows how to find out if you qualify!
The sun is out. Summer is around the corner........the time is NOW!
Thursday, May 21, 2009
Working By Referral
I find that the best source of great clients is to be referred by past clients, friends, and business associates. I know I will be working with folks who have values similar to mine (honesty, integrity, and valuing others) and appreciate the level of service provided by the team I have assembled to provide top notch real estate services.
If you are starting your own business or looking to further develop the one you are in, or if you are unemployed or underemployed, there is nothing that beats meeting with everyone you know and talking to them about their business. Learn what they do, ask about their needs, offer to bring something of value to them. Before you know it, you will build a fabulous network that will be of value to all of you. (Note that I didn't tell you to talk all about you!!)
I belong to a fabulous group of professionals in a group we started called S.M.A.R.T. Thursday. (www.smartthursday.com) We have decided that by working together we can all achieve more. You can, too, by referring business to others.
Get out there and see how you can help others - and yourself! The opportunities are endless!
If you are starting your own business or looking to further develop the one you are in, or if you are unemployed or underemployed, there is nothing that beats meeting with everyone you know and talking to them about their business. Learn what they do, ask about their needs, offer to bring something of value to them. Before you know it, you will build a fabulous network that will be of value to all of you. (Note that I didn't tell you to talk all about you!!)
I belong to a fabulous group of professionals in a group we started called S.M.A.R.T. Thursday. (www.smartthursday.com) We have decided that by working together we can all achieve more. You can, too, by referring business to others.
Get out there and see how you can help others - and yourself! The opportunities are endless!
Wednesday, May 20, 2009
Why do agents brag about the number of listings???
I always wonder why agents brag about the number of listings they have. While being able to list houses is an admirable quality, being able to sell them is better. When interviewing an agent to sell your house, find out how many houses they have successfully closed in the last year. Ask about the ratio of price received to price asked. (In other words, how close to asking price did the seller receive?) Find out how familiar the agent is about the various financing options out there. Will you be required to pay some of the buyer's costs? (The answer is probably!) Make sure the agent gives you statistics regarding the movement in the market where you live. Can she articulate the probable scenario that will unfold? Does she offer staging, pictures, and video on the internet? And, last, but most importantly, does he roll over when you ask about reducing commisssion? If the agent can't explain to you his value proposition, go to someone else. Do you want an agent who will roll on your negotiations??
Tuesday, May 19, 2009
Who is working for you?
When teaching first time buyer classes, I am frequently asked "How do I find a broker?" The search is simple.
Get the names:
1) Ask other people whose opinion you value whom they would recommend. Make sure their recommendation is based on their own experience!
2) Attend open houses and check out the agents holding them Ask anyone of interest if you can make an appointment to interview them. After all you are looking for someone to hire!
3) Go online and check out websites.
Got the names? Then interview your choices. Any agent worth their salt will be happy to arrange a time for an interview. If not, scratch them from the list!
At the interview, ask the agent how many transactions they have closed in the last twelve months. You want someone with transactional experience in this market! If they don't close at least one deal a month, I would want to know why not?
Another critical factor is their knowledge of the financing options out there. If they have no experience with the intricacies of FHA, don't know about spot financing, or have no clue about how short sales work, move on!!
Finally, how well do you "click"? You will be entrusting this person with one of the largest financial transactions you will ever make. Are they up to the task?
Ask for references if need be then decide who will be the best fit for you! And, importantly, don't let anyone sign you into anything before you are ready. It is ok to ask to get back to them later. A high pressure sales person is probably NOT the best choice for an buyer agent. You want the choice of house to be something you are comfortable with, NOT something you felt pressured to buy.
Good luck! By the way, we specialize in first time homebuyers and would be pleased to interview with you for this job!
Get the names:
1) Ask other people whose opinion you value whom they would recommend. Make sure their recommendation is based on their own experience!
2) Attend open houses and check out the agents holding them Ask anyone of interest if you can make an appointment to interview them. After all you are looking for someone to hire!
3) Go online and check out websites.
Got the names? Then interview your choices. Any agent worth their salt will be happy to arrange a time for an interview. If not, scratch them from the list!
At the interview, ask the agent how many transactions they have closed in the last twelve months. You want someone with transactional experience in this market! If they don't close at least one deal a month, I would want to know why not?
Another critical factor is their knowledge of the financing options out there. If they have no experience with the intricacies of FHA, don't know about spot financing, or have no clue about how short sales work, move on!!
Finally, how well do you "click"? You will be entrusting this person with one of the largest financial transactions you will ever make. Are they up to the task?
Ask for references if need be then decide who will be the best fit for you! And, importantly, don't let anyone sign you into anything before you are ready. It is ok to ask to get back to them later. A high pressure sales person is probably NOT the best choice for an buyer agent. You want the choice of house to be something you are comfortable with, NOT something you felt pressured to buy.
Good luck! By the way, we specialize in first time homebuyers and would be pleased to interview with you for this job!
Monday, May 18, 2009
Spring is Here.........The Perfect Storm
....and all thoughts turn to buying that perfect home! That is right. Did you know that in times of trouble, there are always opportunities? While some sellers are taking it hard on the chin, this is the perfect time to buy that house that you have always dreamed about. With many more listings than there are buyers, the selection in the lower price ranges is outstanding.
If you have not owned a house in the last three years, you are eligible for an $8000 tax credit courtesy of the federal government. If you can't use all of that credit because you don't owe that much tax, you can get a check back for the difference. Wow!
If you own a house now and have decent equity, you can buy a house that better fits your needs. Whether it is larger or smaller, in a better neighborhood or closer to work or school, there is a wide selection at outstanding value. Priced and staged correctly, houses are selling in a timely fashion in most price ranges. An expert opinion by a seasoned real estate professional will give you the information you need to get the best price in this market.
Please don't wait too long. The $8000 is good only for those buyers who close on their house by December 1st of this year. The bargains on houses won't last forever, either!
If you have not owned a house in the last three years, you are eligible for an $8000 tax credit courtesy of the federal government. If you can't use all of that credit because you don't owe that much tax, you can get a check back for the difference. Wow!
If you own a house now and have decent equity, you can buy a house that better fits your needs. Whether it is larger or smaller, in a better neighborhood or closer to work or school, there is a wide selection at outstanding value. Priced and staged correctly, houses are selling in a timely fashion in most price ranges. An expert opinion by a seasoned real estate professional will give you the information you need to get the best price in this market.
Please don't wait too long. The $8000 is good only for those buyers who close on their house by December 1st of this year. The bargains on houses won't last forever, either!
Sunday, May 17, 2009
A $270,000 house for $200,000?!
Are you a first time buyer with time to wait for a house? Take advantage of the situation where a seller MUST sell and needs to sell for less than they paid! If you have a good credit score (over 680) and 3.5% to put down, (you can receive this money as a gift from a third party) you can buy a short sale. I have two first time buyers now who are getting great deals (under 130,000 each) on condos which sold for over $170,000 three to four years ago. We have another buyer who is geting a $270,000 house for $200,000! These are NOT foreclosures. They are in GREAT condition. It may take three months to get approval from the lenders and close, but the only way for the values to go are UP! If you have time and credit, take advantage. PLUS....if you haven't owned a house for three years you can get $8000 in a tax credit. (See my other posting) What are you waiting for????????
Uncle Sam has $8000 for you
If you haven't owned a house for three years, the government will give you $8000 if you close on a home purchase by December 1 of this year. I know it sounds too good to be true, but it is! And, even better, HUD is looking at ways for you to use the $8000 as a down payment and NOT have to wait for your tax return.
Here is a description from the National Association of REALTORS:
The temporary credit is only available for
home purchases made from Jan. 1, 2009 to before
Dec. 1, 2009 and is equal to 10 percent of
the cost of the home, up to a maximum credit
of $8,000. (For example, a home purchased for
$80,000 or more would qualify for the full $8,000
credit while a $70,000 home would only qualify
for 10 percent, or $7,000)
Buyers claim the credit on their federal tax return
to reduce their tax liability. If the credit is
more than their total tax liability that year, the
buyer will get a refund check for the balance.
Only first-time homebuyers can take advantage
of the tax credit. A first-time buyer is defined
under the tax credit as an individual who has
not owned a home in the last three years.
For married joint filers, both must
meet the first-time
homebuyer test
to take the credit
on a joint return.
Eligible properties include anything that will be
used as a principal single-family residence—including
condos and townhouses.
There are income guidelines on the credit. Individuals
with an adjusted gross income up to
$75,000 (or $150,000 if filing jointly) are eligible
for the full tax credit. The credit is phased
down for those earning more and is not available
for those with an income above $95,000
(or $170,000 if filing jointly).
The new tax credit does not have to be repaid
if the buyer stays in the home at least three
years. But if the home is sold before that, the
entire amount of the credit is recaptured on
the sale.
People who purchased homes under the 2008
$7,500 tax credit program will still be required
to repay that credit to the government over a
15-year period.
The American Recovery and Reinvestment Act of
2009 features an $8,000 tax credit for first-time
buyers who purchase a home on or after Jan. 1, 2009
and before Dec. 1, 2009.
Details of the tax credit include:
First-Time Homebuyer
Tax Credit
Consult with your REALTOR® or tax advisor
and visit to
learn more about the tax credit and
state and federal loan programs.
Here is a description from the National Association of REALTORS:
The temporary credit is only available for
home purchases made from Jan. 1, 2009 to before
Dec. 1, 2009 and is equal to 10 percent of
the cost of the home, up to a maximum credit
of $8,000. (For example, a home purchased for
$80,000 or more would qualify for the full $8,000
credit while a $70,000 home would only qualify
for 10 percent, or $7,000)
Buyers claim the credit on their federal tax return
to reduce their tax liability. If the credit is
more than their total tax liability that year, the
buyer will get a refund check for the balance.
Only first-time homebuyers can take advantage
of the tax credit. A first-time buyer is defined
under the tax credit as an individual who has
not owned a home in the last three years.
For married joint filers, both must
meet the first-time
homebuyer test
to take the credit
on a joint return.
Eligible properties include anything that will be
used as a principal single-family residence—including
condos and townhouses.
There are income guidelines on the credit. Individuals
with an adjusted gross income up to
$75,000 (or $150,000 if filing jointly) are eligible
for the full tax credit. The credit is phased
down for those earning more and is not available
for those with an income above $95,000
(or $170,000 if filing jointly).
The new tax credit does not have to be repaid
if the buyer stays in the home at least three
years. But if the home is sold before that, the
entire amount of the credit is recaptured on
the sale.
People who purchased homes under the 2008
$7,500 tax credit program will still be required
to repay that credit to the government over a
15-year period.
The American Recovery and Reinvestment Act of
2009 features an $8,000 tax credit for first-time
buyers who purchase a home on or after Jan. 1, 2009
and before Dec. 1, 2009.
Details of the tax credit include:
First-Time Homebuyer
Tax Credit
Consult with your REALTOR® or tax advisor
and visit to
learn more about the tax credit and
state and federal loan programs.
Wednesday, February 25, 2009
OMG! Do the finance reporters understand Real Estate??
I just about flipped today when I heard a reporter on MSNBC report that January sales were at a 12 year low because buyers are waiting to hear about government programs and they don't want to buy. And, guess what, the Northeast is the lowest. Helloooo............sales in January are contracts from November/December. Sales are ALWAYS slow in November and December, paricularly in the Northeast. The buyers in the Northeast aren't particularly worried about anything other than their jobs.
If they have a job and realize their job is secure, they are buying!
Yes......buyers are reluctant, but, guess what? The buyers are out there. A huge part of the problem are the cobrokers who are less skilled at selling in this market, so buyers are receiving less good advice about what constitutes a good sale. However, I have been way busy....which I would expect this time of year.
No more GLOOM and DOOM! If you want to buy, do it now!!! You will be sorry this time next year.
If they have a job and realize their job is secure, they are buying!
Yes......buyers are reluctant, but, guess what? The buyers are out there. A huge part of the problem are the cobrokers who are less skilled at selling in this market, so buyers are receiving less good advice about what constitutes a good sale. However, I have been way busy....which I would expect this time of year.
No more GLOOM and DOOM! If you want to buy, do it now!!! You will be sorry this time next year.
Saturday, February 14, 2009
Letter to Senator Collins
Here is a letter I sent to Senator Collins. She needs to be complimented for not taking a partisan stand!!Senator Collins:
I want to personally thank you for taking a courageous stand in the face of your own party to get the Economic Recovery Plan out of the gate. I think that to do nothing would have been horrific. You and Senator Snowe truly represent what is best about Maine!
I am writing today as a person who absolutely believes in the principles of abundance and prosperity. Even though the real estate market has seen better days (!!), I continue to thrive and do well albeit it is like slogging through mud at times! I spend money when it makes sense and remind myself every time I pay my bills that I am increasing the prosperity of those around me. If I were to sit on my money, someone else will lose their job or go hungry or what ever…..
This brings me them to a recurring thought I have had regarding the so-called hoarding that is occurring with the banks and other financial institutions. I understand that they are offsetting losses on the balance sheets, but can’t something be done to get this situation reversed where there is a reward for putting the money back out in the system? After all, money is really a symbol for time, effort, power, values. It really belongs to the universe, not to individuals or entities. It can be such a force for good. It doesn’t do anyone any good figuratively sitting in a vault somewhere.
Along those same lines, has any thought been given to requiring that those entities who are benefiting from the taxpayers’ money, whether they be students receiving subsidized loans or financial institutions receiving TARP funds, give back to the country in time and effort assisting those less fortunate? ….or assisting communities or states with needs that are going unaddressed? It’s just a thought.
Thanks for listening. Maybe I am a pie eyed idealist, but I truly believe that together we all achieve more.
Keep up the good work !
Warmly,
Jean-Marie Caterina
Find out what's selling in YOUR neighborhood!
Free report at www.wesellmaine.com . Scroll down to "What's Sold" icon at bottom of page.
Jean-Marie Caterina, Broker
Caterina MacLean Group
Keller Williams Realty
50 Sewall Street, Second Floor
Portland, Maine 04102
(207)553-2606
Fax-(207)879-9801
jcat@kw.com
www.wesellmaine.com
www.catscomments.com (Blog)
We are NEVER too busy for your referrals!
I want to personally thank you for taking a courageous stand in the face of your own party to get the Economic Recovery Plan out of the gate. I think that to do nothing would have been horrific. You and Senator Snowe truly represent what is best about Maine!
I am writing today as a person who absolutely believes in the principles of abundance and prosperity. Even though the real estate market has seen better days (!!), I continue to thrive and do well albeit it is like slogging through mud at times! I spend money when it makes sense and remind myself every time I pay my bills that I am increasing the prosperity of those around me. If I were to sit on my money, someone else will lose their job or go hungry or what ever…..
This brings me them to a recurring thought I have had regarding the so-called hoarding that is occurring with the banks and other financial institutions. I understand that they are offsetting losses on the balance sheets, but can’t something be done to get this situation reversed where there is a reward for putting the money back out in the system? After all, money is really a symbol for time, effort, power, values. It really belongs to the universe, not to individuals or entities. It can be such a force for good. It doesn’t do anyone any good figuratively sitting in a vault somewhere.
Along those same lines, has any thought been given to requiring that those entities who are benefiting from the taxpayers’ money, whether they be students receiving subsidized loans or financial institutions receiving TARP funds, give back to the country in time and effort assisting those less fortunate? ….or assisting communities or states with needs that are going unaddressed? It’s just a thought.
Thanks for listening. Maybe I am a pie eyed idealist, but I truly believe that together we all achieve more.
Keep up the good work !
Warmly,
Jean-Marie Caterina
Find out what's selling in YOUR neighborhood!
Free report at www.wesellmaine.com . Scroll down to "What's Sold" icon at bottom of page.
Jean-Marie Caterina, Broker
Caterina MacLean Group
Keller Williams Realty
50 Sewall Street, Second Floor
Portland, Maine 04102
(207)553-2606
Fax-(207)879-9801
jcat@kw.com
www.wesellmaine.com
www.catscomments.com (Blog)
We are NEVER too busy for your referrals!
Thursday, January 29, 2009
Maine Home Sales 2008
MREIS PRESS RELEASE - HOME SALES IN 2008: Single-family existing home sales in Maine fell 15.8% in December 2008 and 20.9% for all of 2008. According to MREIS, 9,502 homes sold last year, compared to 12,014 in 2007. The median sales price decreased 12.63% in December and was down 7.22% for all of 2008. The median sales price indicates that half of the homes were sold for more and half sold for less. The statewide median sales price in Maine was $99,990 in 1998. The statewide median sales price is $180,000 for 2008 - showing considerable long-term strength. Nationally, sales of single-family existing homes dipped 1.4% in December 2008. According to NAR nationwide sales for all of 2008 dropped 11.9%. In the Northeast, home sales decreased by 14.3%. The complete press release is posted at http://mainerealtors.com.
Seven Months Inventory- Portland, Me
Did an absorption rate for my clients yesterday and learned that in the 150 thousand to 200 thousand dollar range, there is a seven months supply of houses. Man.......that means it will take seven months to clear out the current inventory IF no other houses come on the market.
Well.....guess that means that the buyers should come off the fence and get going as interest rates have ticked upwards a bit since two to three weeks ago.
Buyers ask me, will I lose money? My answer...no, honey!! Buy now and live in your house for more than three years. You will see the equity increase over time. It always does!
For those of you with money burning a hole in your pocket.......get investing. You buy when it is low and sell when it is high! Guess what!!!? It is time to buy.
Have to sell??? Get a good and ethical broker to help. Get someone with loads of experience. (Like me! Mike and I did 36 deals last year) Do NOT entrust your house to an agent who is part time or dabbling. This market is NOT for the faint hearted.
There is only today! Go and make the most of it.
Well.....guess that means that the buyers should come off the fence and get going as interest rates have ticked upwards a bit since two to three weeks ago.
Buyers ask me, will I lose money? My answer...no, honey!! Buy now and live in your house for more than three years. You will see the equity increase over time. It always does!
For those of you with money burning a hole in your pocket.......get investing. You buy when it is low and sell when it is high! Guess what!!!? It is time to buy.
Have to sell??? Get a good and ethical broker to help. Get someone with loads of experience. (Like me! Mike and I did 36 deals last year) Do NOT entrust your house to an agent who is part time or dabbling. This market is NOT for the faint hearted.
There is only today! Go and make the most of it.
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