Don't say I never did anything for you. Here is a link to the site that will help you find which tax plans and programs could be saving you some big bucks!
Happy Tax Dollar Savings!
John Lough
Wednesday, December 16, 2009
Friday, August 21, 2009
Home Sales Up! Yay!
The $8,000.00 government tax credit for first time buyers has helped the housing slump start to pick up and keep moving even in these challenging economic times.
Here is a link to the complete story of the day: http://www.msnbc.msn.com/id/32505389/ns/business-stocks_and_economy/
If you fit the criteria for the credit you have until December 1st to take advantage of it as so many others have!
Good luck, and happy house hunting.
John Lough
Thursday, August 20, 2009
Things To Do Along With House Hunting!
One of the important thIngs in looking for just the right home to purchase is knowing when to take a break and do something else for awhile!
There are a lot of fun things to do around Seattle this time of year and I'm including this link for you to investigate and take a breather. House hunting can be kind of stressful at times.
http://thingstodo.msn.com/
I hope you're enjoying your summer so far. Have fun and please let us know if you or someone you know can use our Real Estate services.
John Lough
REALTOR
http://www.johnlough.com/
Sunday, May 31, 2009
The Homebuyer Tax Credit for 2009
Here is a link to the site that will provide information about the tax credit for buyers that you may have heard about.
Things have been picking up a bit with the first time buyers activity that I've been a part of in the last few months.
Another helpful site is REALTOR 101 that covers all the basics to get started. http://www.realtor.com/basics/index.asp
Have fun and enjoy your Real Estate experience.
John Lough, REALTOR
Saturday, March 7, 2009
If you're going to sell...STAGE THE HOUSE!!!
If you're getting ready to sell your home, consider some of these staging tips from local stagers and real-estate professionals:
× Clean the home from top to bottom.
× Pack away knick-knacks, collectibles and clutter. Declutter, and then go through and declutter again. Too many items on display distract potential buyers, and make a room feel smaller than it is.
×Depersonalize your home with neutral colors and design. It allows other people to go in and mentally move their stuff in, versus feeling like a guest in your home.
×Take care of the details. We tell everybody when you get your home ready, all of those things that you wanted to do, everything that bothered you like that squeaky door or that trim, needs fixed.
×Create curb appeal. Power-wash the sidewalks and driveway. Clean gutters and give the door a fresh coat of paint, if it needs one. Concentrate on the yard. A well-maintained garden can get them into a home.
Real-estate professionals and sellers turn to staging as a way to give their properties a competitive edge.
It's a service that can cost hundreds to several thousands of dollars, depending on the size and condition of a home. Some of the biggest trends in the home-staging industry include:
1. Agents covering the costs.
2. Innovation on a budget.
3. Makeovers for lower priced, occupied homes.
4. Staging the outside of a home.
Once a potential buyer has found a listing on the Internet, chances are he or she will drive by the house before scheduling an appointment with a real-estate agent.
And that's why stagers have begun tackling a home's yard and exterior, too.
It all starts at the curb.
These days, sellers need to remember that buyers can afford to be selective.
In this market, you better be the best of the best, or the best value. Your yard better be nice. You better not need paint.
If you would like some help to sell or buy please contact us and we'll discuss the options!
John Lough
Wednesday, December 10, 2008
To Buy Or Not To Buy !
Hi ,
Here are some thoughts I wanted you to have about buying a home.
If you can afford to, and if you have the credit, money, income and desire, this is a good time to buy real estate. People have been waiting on the sidelines for the prices to stop dropping. Although they may not be totally done dropping, I think we are nearing the point where it will stabilize and if any more drops happen, they will be less painful than what we have experienced in the last year. In many parts of town prices are such that they are on par with 2004 prices. These were a good deal the first time around, and I feel they are still a good deal.
This is true of all groups, including 1st time homebuyers, investors and Ma and Pa looking to upgrade or even downsize at retirement. This is especially true if you plan to live in the property since you will be there from 3 to 5 years at least and will wait out any further problems. Just like all that goes up must come down, the alternate is true also. Once things have fallen enough, it’s likely to go up in following periods.
Most investors I know are already on the band wagon buying foreclosed homes and fixing them up for sale or more likely rentals. In this market we now have what is known as properties that cash flow. The way this happens is they bought it cheap enough to fix it and still have payments less than the rent they can charge. As long as this is true investors will buy. It is their purpose in real estate, not the flipping mentality which reigned in the last upswing.
For the first time homebuyer, my advice is to straighten out your credit, save a 5-15% down payment, of course a good job and work history is important, then get prequalified with a reputable lender, contact me and we’ll look at homes in the area desired in your affordable price range. I personally recommend finding several homes with these criteria(if possible), make offers somewhat lower than the asking price, and wait and see which sellers take the offers, or make reasonable counteroffers. The main purpose is to not be caught up with any one home to make this scenario work. If you are guided by your heart on these kinds of transactions, then maybe you should let your spouse or significant other do the negotiating. This way you can end up with a great home in a good location with at least some equity to buffer you from any downturn in the market. Of course if you are guided by your heart, there are still some great deals on the market, but you are less likely to get a bargain in this case.
Foreclosures as bank owned properties are the flavor of the year. They do provide an excellent opportunity to purchase a home at a below price of the comparable homes in an area. This is good news for the homebuyer, but not so good for the home seller. Every time the bank sells a property it establishes a new comparable for the neighborhood, which may lower the average sales price for all other sales on the market in that particular area. It is for this reason that the foreclosures are selling faster than regular home seller properties. Foreclosures have to keep pace with the local market economy in order to sell, and the banks must sell them.
In summary, it is a great time to buy real estate. Just as the market turned south before the regular buyers knew it, it will start to pick up before the regular homebuyers know it. I think this will happen in early 2009, but the best prices and negotiations may be from now to 6 months from now. Fear is what has kept people out of the market, and only fear can keep someone from making a great deal on a new home.
In closing, I think the next 6 months is a great time to buy real estate. The investors already are in the market. Don’t let them get all the good deals!
John Lough
Thursday, December 4, 2008
Possible 4.5% Interest Rate To Get Things Moving!!!
Lower mortgage rates no silver bullet!
The government is weighing plans to drive rates as low as 4.5%. But experts say that won't be enough to stabilize the housing market.
NEW YORK (CNNMoney.com) -- Reducing mortgage rates to a historically low 4.5% may entice some home buyers out of the shadows, but it won't be enough to really spur housing sales, experts said.
Only a week after the Federal Reserve unveiled a $600 billion plan to reduce mortgage rates, the Treasury Department is considering adding to the effort to lower rates even more. Both moves are intended to get more buyers into the market in hopes of stabilizing home prices and reviving the economy.
While Treasury officials are keeping mum about the latest proposal, lobbyists said Thursday it is aimed at reducing rates to 4.5% only for people buying homes. Those looking to refinance would not qualify.
There's no doubt, experts say, that the government needs to provide incentives to home buyers.
Until now, all efforts were focused on addressing the record number of mortgage delinquencies. This should remain the priority, experts say, but it should be coupled with increasing demand for homes.
Adjusting mortgage rates, however, will only go so far in getting prospective home buyers into the market, experts said. Potential buyers remain spooked by falling home prices and rising unemployment. And even those who want to buy cannot find loans with reasonable downpayments and terms.
"The problem is not interest rates," said Kenneth Rosen, chair of the Fisher Center for Real Estate at University of California, Berkeley. "It's the availability of credit."
And, of course, there's still the issue of stemming foreclosures. The Bush administration has been loathe to mandate widespread loan modifications. Instead, it is opting to chip away at the problem by adjusting loans held by Fannie Mae and Freddie Mac and by asking banks to expand their programs.
But even federal officials acknowledge the economy won't recover until the tidal wave of foreclosures ends. Federal Reserve Chairman Ben Bernanke Thursday said the government must do more to help struggling homeowners, possibly by buying delinquent mortgages and refinancing them to more affordable terms.
Treasury plan in the works
Lobbyists are ratcheting up pressure on federal officials to do more to entice home buyers into the market. Various proposals have been floated, but lowering mortgage rates is among the more popular.
One of the more vocal industry groups, the National Association of Realtors, met with top Treasury officials last month to outline a plan to stabilize home prices through lower mortgage rates.
While details remain sketchy, its proposal calls for Treasury to subsidize rates so home buyers pay 4.5% for a 30-year fixed-rate mortgage. It would be similar to a homebuyer paying points -- a percentage of a home's value -- in return for a lower rate, but the government would foot the bill.
The plan would cost $50 billion, said Lawrence Yun, the group's chief economist.
Lowering rates to 4.5% -- about a percentage point below today's rate -- would spur 500,000 home sales over the next year, he said. That would put a big dent in the supply of 4.6 million homes on the market. Right now, there is a 10-month supply of homes for sale, three to four months more than in normal conditions.
A 4.5% mortgage rate would prompt many people to buy, even if they fear home prices will continue to fall and the economy to weaken, he said. Rates have not fallen below 5.37% for 45 years.
A wave of purchases should stabilize home values, which, in turn, will help the economy to turn around.
Last week's action by the Fed, which prompted a half-percentage point drop in rates, sent home buyers' mortgage applications up 37.4%, according to the Mortgage Bankers Association.
"We need to do something to counter that pessimism," Yun said. "Doing nothing will exacerbate the problem."
Lowering rates is among several options the Treasury Department is considering. An announcement could come as early as next week.
More needs to be done
Experts, however, questioned whether buyers would take advantage of lower rates. They criticized government officials for taking a piecemeal approach -- with narrow programs unveiled every week -- rather than coming up with a comprehensive plan to stabilize the housing market.
"I don't think they are thinking through what they are doing," Rosen said.
What's keeping many home buyers out of the market are stringent lending standards, not interest rates, experts said. As long as credit remains tight and banks require 20% downpayments, many buyers will remain on the sidelines.
Instead, banks should make mortgages available with a 5% or 10% downpayment, Rosen said. And while he doesn't advocate a return to the "mirror standard" (when borrowers could get money if they simply could fog a mirror), banks should allow more people to qualify for fixed-rate mortgages if they show sufficient income.
The government could also provide more incentives to home buyers. Instituting a federal tax credit at closing to help cover costs would appeal to many purchasers, said James Gaines, research economist with the Real Estate Center at Texas A&M University. A $7,500 credit approved by Congress this summer -- which is really a loan since it must be paid back -- isn't working.
"It hasn't done any good," Gaines said. "Make it a real credit for home purchases."
Another option is to provide incentives for investors to buy properties and turn them into rentals, he said. This could be done with various tax incentives, such as eliminating capital gains tax on homes owned for more than five years.
Other experts said a mortgage-rate reduction could work, but only if it were done on a temporary basis. That would prompt people to take advantage of the lower rates while they last, said Edward Leamer, director of the UCLA Anderson Forecast, a quarterly economic review.
As the economy continues to weaken, however, some economists say the answer to the housing crisis lies in stabilizing the job market. As more people lose their incomes, more fall behind in their mortgages and lose their homes. This trend will accelerate the number of foreclosures and keep prices in a downward spiral.
If people fear for their jobs, or even worse, have no job, they will not make big-ticket purchases like a home, said Christian Menegatti, lead analyst for economic research firm RGE Monitor. That's why the government should consider an economic stimulus package that will help keep both home values and employment from declining.
"Potential homebuyers may not be in the condition to buy a home no matter what because of a job loss or a drop in income," he said.
The government is weighing plans to drive rates as low as 4.5%. But experts say that won't be enough to stabilize the housing market.
NEW YORK (CNNMoney.com) -- Reducing mortgage rates to a historically low 4.5% may entice some home buyers out of the shadows, but it won't be enough to really spur housing sales, experts said.
Only a week after the Federal Reserve unveiled a $600 billion plan to reduce mortgage rates, the Treasury Department is considering adding to the effort to lower rates even more. Both moves are intended to get more buyers into the market in hopes of stabilizing home prices and reviving the economy.
While Treasury officials are keeping mum about the latest proposal, lobbyists said Thursday it is aimed at reducing rates to 4.5% only for people buying homes. Those looking to refinance would not qualify.
There's no doubt, experts say, that the government needs to provide incentives to home buyers.
Until now, all efforts were focused on addressing the record number of mortgage delinquencies. This should remain the priority, experts say, but it should be coupled with increasing demand for homes.
Adjusting mortgage rates, however, will only go so far in getting prospective home buyers into the market, experts said. Potential buyers remain spooked by falling home prices and rising unemployment. And even those who want to buy cannot find loans with reasonable downpayments and terms.
"The problem is not interest rates," said Kenneth Rosen, chair of the Fisher Center for Real Estate at University of California, Berkeley. "It's the availability of credit."
And, of course, there's still the issue of stemming foreclosures. The Bush administration has been loathe to mandate widespread loan modifications. Instead, it is opting to chip away at the problem by adjusting loans held by Fannie Mae and Freddie Mac and by asking banks to expand their programs.
But even federal officials acknowledge the economy won't recover until the tidal wave of foreclosures ends. Federal Reserve Chairman Ben Bernanke Thursday said the government must do more to help struggling homeowners, possibly by buying delinquent mortgages and refinancing them to more affordable terms.
Treasury plan in the works
Lobbyists are ratcheting up pressure on federal officials to do more to entice home buyers into the market. Various proposals have been floated, but lowering mortgage rates is among the more popular.
One of the more vocal industry groups, the National Association of Realtors, met with top Treasury officials last month to outline a plan to stabilize home prices through lower mortgage rates.
While details remain sketchy, its proposal calls for Treasury to subsidize rates so home buyers pay 4.5% for a 30-year fixed-rate mortgage. It would be similar to a homebuyer paying points -- a percentage of a home's value -- in return for a lower rate, but the government would foot the bill.
The plan would cost $50 billion, said Lawrence Yun, the group's chief economist.
Lowering rates to 4.5% -- about a percentage point below today's rate -- would spur 500,000 home sales over the next year, he said. That would put a big dent in the supply of 4.6 million homes on the market. Right now, there is a 10-month supply of homes for sale, three to four months more than in normal conditions.
A 4.5% mortgage rate would prompt many people to buy, even if they fear home prices will continue to fall and the economy to weaken, he said. Rates have not fallen below 5.37% for 45 years.
A wave of purchases should stabilize home values, which, in turn, will help the economy to turn around.
Last week's action by the Fed, which prompted a half-percentage point drop in rates, sent home buyers' mortgage applications up 37.4%, according to the Mortgage Bankers Association.
"We need to do something to counter that pessimism," Yun said. "Doing nothing will exacerbate the problem."
Lowering rates is among several options the Treasury Department is considering. An announcement could come as early as next week.
More needs to be done
Experts, however, questioned whether buyers would take advantage of lower rates. They criticized government officials for taking a piecemeal approach -- with narrow programs unveiled every week -- rather than coming up with a comprehensive plan to stabilize the housing market.
"I don't think they are thinking through what they are doing," Rosen said.
What's keeping many home buyers out of the market are stringent lending standards, not interest rates, experts said. As long as credit remains tight and banks require 20% downpayments, many buyers will remain on the sidelines.
Instead, banks should make mortgages available with a 5% or 10% downpayment, Rosen said. And while he doesn't advocate a return to the "mirror standard" (when borrowers could get money if they simply could fog a mirror), banks should allow more people to qualify for fixed-rate mortgages if they show sufficient income.
The government could also provide more incentives to home buyers. Instituting a federal tax credit at closing to help cover costs would appeal to many purchasers, said James Gaines, research economist with the Real Estate Center at Texas A&M University. A $7,500 credit approved by Congress this summer -- which is really a loan since it must be paid back -- isn't working.
"It hasn't done any good," Gaines said. "Make it a real credit for home purchases."
Another option is to provide incentives for investors to buy properties and turn them into rentals, he said. This could be done with various tax incentives, such as eliminating capital gains tax on homes owned for more than five years.
Other experts said a mortgage-rate reduction could work, but only if it were done on a temporary basis. That would prompt people to take advantage of the lower rates while they last, said Edward Leamer, director of the UCLA Anderson Forecast, a quarterly economic review.
As the economy continues to weaken, however, some economists say the answer to the housing crisis lies in stabilizing the job market. As more people lose their incomes, more fall behind in their mortgages and lose their homes. This trend will accelerate the number of foreclosures and keep prices in a downward spiral.
If people fear for their jobs, or even worse, have no job, they will not make big-ticket purchases like a home, said Christian Menegatti, lead analyst for economic research firm RGE Monitor. That's why the government should consider an economic stimulus package that will help keep both home values and employment from declining.
"Potential homebuyers may not be in the condition to buy a home no matter what because of a job loss or a drop in income," he said.
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