THE REAL ESTATE ECOBLOG

Check out the November Skinny...

Enjoy this video about the current Real Estate Market and feel free to call with any questions....

Fannie Mae's New Program

Fannie Mae has a new program out that is geared towards helping home owners stay in their homes. It is called the "Deed for Lease" program which will allow homeowners to transfer title to Fannie Mae and sign a one-year lease, with potential month to month extensions after that. 
 The program helps "eliminate some of the uncertainty of foreclosure, keeps families and tenants in their homes during a transitional period and helps to stabilize neighborhoods and communities" Jay Ryan, a Fannie Mae vice president, said in a statement. 
 Fannie Mae executives said the rental program is designed to help deliquent homeowners who don't qualify for a loan modification, but still want to stay in their homes. 
To qualify, homeowners have to live in the home as the primary residence and prove that they can afford the market rent, which will be established by the management company running the program. Rents are based on current market rates. 
(Information obtained from FannieMae.com) 

It Is Official; The Home Buyer Tax Credit is Extended and Expanded...

So what does this mean for to you?  First lets look at the nuts and bolts of the tax credit and then how if may help you buy and/or sell a home.

This tax credit started as part of the economic stimulus package but was voted on and extended to both first time home buyers and people that have owned their homes at least five years. Buyers who have owned their current homes for at least five years would be eligible (subject to income limitations) for tax credits of up to $6,500. First time homebuyers (or people who have not owned a home within the last three years) could get up to $8,000. The tax credit is subject to income limitations. For a single buyer the income limit would be $125,000 and for a married couple would be $225,000. If you earn more, you may be eligible for reduced or partial credits. 

 Another important point is that the purchase agreement must be signed by April 30th, 2010 and closings must be final by June 30th. Also noteworthy is that this cannot be used for houses valued at more than $800,000.

This main goal is to help the housing market to stabilize.  As home owner looking to sell this credit opens the door to more buyers especially in the Twin Cities suburbs where many of the foreclosures have been purchased and first time home buyers are actively looking for a home to own.  At which point a home owner can take advantage of the credit and purchase a new home.  

The process for tax payers is to claim the credit on their federal income tax returns. If the credit exceeds their tax bill, the government will issue a payment to them. If the taxpayer wants an immediate refund they can amend their tax return for 2008 to claim the credit. 
 Recapture is something to keep in mind when considering using this credit. Buyers have to own the home for at least three years in order to capitalize on the credit. If it is sold before this, they will have to return the credit to the government. 
If you are a military member, keep in mind that the deadline may be different for you. The deadline is extended by a year for members of the military who have served outside the U.S. for at least 90 days from January 1, 2009 to May 1, 2010. 
The projected cost to the government for extending and expanding the tax credit for home buyers is about $10.8 billion in lost taxes. 

For help with your individual situation feel free to give me a call or shoot me an email.

Extension of Home Buyer Tax Credit Passes in the Senate

Just this afternoon the United States Senate passed the bill extending unemployment benefits and the First Time Home Buyer Tax Credit.  This is great news for a struggling housing market.  Once the bill is officially signed into law by President Obama, I will provide an analysis on what the bill contains and who could benefit.

In the meantime if you have any questions feel free to shoot me an email or give me a call....

Vote Pending on Tax Credit...In The Meantime...A Little About Furnaces

It is that time of year and homeowners need to start thinking about maintenance for their furnaces. It is important for energy efficiency and with rising fuel costs it is more essential than ever. Here are a few tips that will help you maintain an energy efficient furnace. 

1) One of the most important factors to consider is the furnace filter. When a filter becomes clogged it cuts down on a furnace's efficiency so be sure to change your filters regularly. It should say in the furnace manual how often that it is recommended.

2) When changing the filter is to vacuum around the filter area before installing a new filter.

3) Be sure that you close doors to rooms you do not need to heat. 

4) Also, you can leave the curtains open and let the sun shine in. Where the sun doesn't shine in, leave curtains closed to minimize heat loss through the windows. 

5) Be sure all windows, doors and skylights are tightly sealed shut. Where necessary think about using window and door weather stripping for windows and unused doors. 

 If your furnace is still not functioning properly, then homeowners could always consider purchasing a new energy efficient furnace. Many come with energy ratings so be sure to check around and look into the details of the savings you might get. It is always more expensive to purchase one of these units but the savings come back tenfold within a short span of time. 
 It is really important that you maintain the health of your furnace since we have such cold temperatures and the costs of fuel are rising. 

Today's is The Day...Fate of First Time Home Buyer Tax Credit

Today the House and possibly the Senate will vote on extending the First Time Home Buyer Credit that has helped fuel the housing market for the last year.  In my business,  I have certainly seen the effect and support the extension of the credit.  This time last year we had a large supply of homes that were foreclosed and lender owned.  Today, the tax credit has helped to reduce the inventory of these distressed properties.  I am hopeful that an extension of the credit will extend into owner occupied homes and then trickle into the move up buyer segments of the market.  We need this to happen to stabilize the real estate market and although prices will most likely not increase it could help to reduce or stop the price declines the Twin Cities real estate market has seen.  

Stay tuned, I will announce the vote as soon as it is available....

Check Out the Skinny....

Check out the video below for market conditions.  The video is provided by the Minneapolis Association of Realtors!

Enjoy!

Which Energy Audit is Right for You?

There are a couple of different energy audit options you can explore.  Check them out let me know what you think..

Home Energy Audits:
 Home energy audits are often the first step in making your home more efficient. An audit can help you assess how much energy your home uses and evaluate what measures you can take to improve efficiency. But remember audits alone don't save you energy. You need to implement the recommended improvements. (Energystar.com)

Do It Yourself Audits:
 If you have five minutes and your last twelve months of utility bills, use the ENERGY STAR Home Energy Yardstick to compare your home's energy efficiency to similar homes across the country and get recommendations for energy-saving home improvements from ENERGY STAR. You will also need to enter some basic information about your home (such as zip code, age, square footage and number of occupants.) If you don't have your bills, contact your utility for a 12 month summary. ( Energystar.com)

Hire a Professional Home Energy Auditor:
 If you are interested in getting specific recommendations for improving the efficiency of your home, consider contacting a professional Home Energy Auditor. A professional auditor can use a variety of techniques and equipment to determine the energy efficiency of your home. Thorough audits often use equipment such as blower doors, which measure the extent of leaks in the building envelope and infrared cameras, which reveal hard-to-detect areas of air infiltration and missing insulation.
 Your first step should be to contact your utility to see if they offer free or discounted energy audits to their customers. If not, you can hire a home energy professional, such as a certified Home Energy Rater, to evaluate your home's energy efficiency.

Windows: short term energy savers and long term savings ideas

Gaps and spaces around windows and doors and in the attic can suck up to 30% of your home's energy efficiency according to the US Department of Energy. Keeping this in mind along with the colder temperatures --it is now time to winterize your home. There are short term energy savers that existing homes can utilize to help with energy costs. One common way to do this is to use window insulation kits that are available at many retailers. This allows your furnace to work more efficiently since it is not trying to over compensate for the drafty windows. Another important tip if you want to think green is to re-use the plastic sheeting that is included from year to year. You just have to roll  it up carefully in the spring and leave enough room around the edges when cutting it. 
 You can also use caulk around windows and doors to seal up any gaps that may be there. This will help a great deal also. 
To find out if your home needs insulation -which is a common problem in older homes-you can go towww.energy.mn.gov and search for ideas under "Home Insulation." This will help you to indentify the issues your home may have before you start winterizing. 
 If you are looking for a more permanent energy saver--you can install energy efficient windows in your home. They have many styles, one of which has double panes to help to moderate the temperature. There are windows with the energy star ratings which will be helpful for consumers to make the best choices for their homes. If you have any questions about possible rebates for these windows check the US Department of Energy website for current rebate information. 
 There are many choices for home owners to help reduce their energy costs and be green!

For more info feel free to visit Waters Realty...

Energy Tax Credits for Home Improvement!

 Need to make improvements to your home?  Want to bring down costs this winter?  Here is a little incentive to help you along the way!  Did you know that the federal government is offering tax credits to individuals who make certain energy efficient improvements to their home?  Here are the specifics from the US Department of Energy: "Consumers who purchase and install specific products such as energy -efficient windows, insulation, doors, roofs and heating and cooling equipment in existing homes can receive a tax credit for 30% of the cost up to $1,500 for improvements "placed in service" starting January 1, 2009 through December 31, 2010."  This winter a little to soon?  As you see the credits are offered through December of 2010!

For more info or coupons to Lowe's to make these improvements send me an email at cherikuhn@watersrealtymn.com or give me a call at 612-865-9150!