Are We Going To See an Extension and Expansion of the Tax Credit?

NAR seems to be doing everything possible to influence Congress to extend the tax credit and even expand it to other buyers. NAR recently sent First Vice President Ron Phipps to Capitol Hill in order to give testimony on why they need to extend the tax credit and open it up to other homebuyers besides first-time homebuyers.

I have spoken with many REALTORS from across the state of Missouri and many feel that they have seen increased sales due to the tax credit. I believe that it is a great idea but we have not seen much of an increase in purchases due to the tax credit. Actually, I would have to say that many lenders are trying to convince buyers not to use the tax credit and a couple have even gone as far as to say they won't do it. I should clarify what I mean. Missouri has the TCAL program which allows buyers to use their tax credit immediately in order have money for a down payment or closing costs. What lenders do not seem to like it that the state of Missouri has contracted with US Bank to back these "loans" for the buyers.

Here is how it works: US Bank basically makes a 2nd loan for the buyer and lends them the money which becomes their down payment or closings costs. This "2nd loan" is then carried with no interest and no payments until June 2010. If the buyer does not repay the 2nd loan by then with the tax credit money from the government, interest begins to accrue on the 2nd loan and payments become due.

It is a great idea for homebuyers but apparently the process that the "original" lender has to go through in order to get this done for the buyer is tough and everyone is at the mercy of US Bank. I can see how US Bank wants to protect themselves but the real estate transaction is tough enough without adding a whole other moving part to the equation.

Overall, I would have to say that the plan is working and many people are benefiting. I am still yet to work with someone who uses the tax credit up front but many have bought properties i have listed and the process was gruelling. I do appreciate everything NAR is doing and I feel that I am getting my moneies worth!

Farmington, MO Market Statistics for 10/5/09-10/11/09

The Farmington area has much to offer from beautiful, restored Victorian Homes to modern, new construction. Our area offers many events and destinations to visit. Among our many events and destinations, we have several wineries, golf courses, shopping, restaurants, and boutiques which always make for a great visit or stay. Currently, the Farmington area offers 227 homes for sale. This is the same as the previous week with 8 homes still pending closing.

DON'T FORGET...................

TAKE ADVANTAGE OF THE $8,000 FIRST-TIME HOMEBUYERS TAX CREDIT

WHICH IS SET TO EXPIRE ON DECEMBER 1ST!

Residential

            Active Listings              

                      Units                              227

                Avg. List Price:      $170,122 

                     Avg. DOM                     141

        Pending Sales

                Units                                  8

                Avg. List Price:      $106,675

                Avg. DOM                              76

        Solds

                Units                                  5

                Dollar Value          $500,000

                Avg. List Pice        $103,480

                Avg. Sold Price     $100,000

                Avg. Market Time            54

                Avg. % of List Price     96.64

Properties are still moving in our area and we have seen a great increase in showings as well as offers written. Buyers, please do not wait on the fence any longer. The market is not a game and none of us can predict when home prices will start to rise or fall. I can tell you from speaking with other REALTORS, more and more people are looking and getting reay to buy. Don't keep waiting for the market to drop more so you can get a better deal. If you are waiting for tomorrow's better deal, you will miss today's great deal which is usually better than tomorrow. If you have any questions, feel free to call Tom Hernandez at 573-210-8606, visit my website http://www.tomworks4u.com/, or email me at tom.hernandez@century21.com. Thanks and have a great day!

      

First-Time Homebuyer Tax Credit Extension

Yesterday, October 8, 2009, the U.S. House of Representatives voted to extend the tax credit for another year to American Service Members. The extension is for those who have been serving overseas and have not been able to take advantage of the tax credit like those of us living here.

The vote was 416 to 0 in favor to pass the Service Members Home Ownership Tax Act of 2009. This extension will push the deadline back an additional year for those members of the military, Foreign Service, and intelligence corps. Rep. Charles Rangel, New York Democrat, introduced the bill and said, "This bill makes sure that the brave men and women who put their lives on the line every day get to enjoy the same benefits as every other American who benefits from their service."

This is a great plan for those service members who have been overseas serving our country and ensuring the continued right of home ownership. Now it needs to pass the Senate and have the President sign off on it. I am sure they will but I still am anxious to see them pass an extension to ALL home buyers.

Selling HUD Properties in the Mineral Area

I met a new investor the other day and we got into the discussion of buying HUD properties. He thought that these might be better deals or offer some untapped return that others had not found yet. I explained to him that HUD properties can be bought at a very good price but they are like many other properties, you need to know what you are buying and what the purpose of your purchase is. To make a long story short, he wanted to turn these properties into rentals.

Our discussion covered everything from the bidding period (sometimes open to just owner/occupants for the first week and then open to all buyers there after), the diffence in contract from our state forms, to the long process of waiting for an actual signed contract to come back to us (usually the day of closing). I think I overwhelmed him because he left telling me he would get back to me and to maybe look for some multi-family properties for him to look at.

The process of buying a HUD property is long and unusual compared to that of a normal residential purchase but during these times, great bargains can be had. I have sold several in the past few months and they do not seem to be getting easier. However, all of my buyers have been happy and truly feel they got a real bargain so for them, it was well worth the time and rollercoaster ride.

There are currently 41 HUD properties for sale in Jefferson County, MO; 10 in St. Francois County, MO; 3 in Washington County, MO; 2 in Ste. Geneveive County, MO; and none in the counties of Madison and Iron. These properties range in price from $145,000 down to $15,000. You can look these properties up at my website or you can view them on BidSelect.

If you are interested in buying HUD properties, talk to your local REALTOR. He or she will be able to assist you or send you to an agent who is experienced in selling HUD properties. For you agents who are looking for a "niche," I have found this to be frustrating but a constant flow of business and leads. I am averaging about 3 closings a month just from foreclosed properties. The time spent on these contracts is more than usual but it has also led to many referrals and repeat clients. Thanks for reading and have a great day!

Mineral Area Sale Statistics for August 2009

I would seem that sales are starting to pick up but I tend to say that softly. July saw a month on 85 residential sales for the area and then we followed that up with 71 residential sales for the month of August. August is traditionally a slower month with school starting and parents not wanting to shake up the household too much with the added stress of moving on top of school.

September is looking to be a very good month for sales and we are only half way through. As I write this, I am encouraged but the tax credit buzz, increased phone calls, and a general good feeling from my fellow REALTORS. Here is a quick breakdown of sale in the Mineral Area for the month of August.

Arcadia Valley
          Sold-3          Avg. Days On Market-69
Belleview
          Sold-2          Avg. Days On Market-116
Bismarck
          Sold-3          Avg. Days On Market-155
Bonne Terre
          Sold-8          Avg. Days On Market-118
Desloge
          Sold-4          Avg. Days On Market-144
Farmington
          Sold-16        Avg. Days On Market-54
Holiday Shores
          Sold-1          Avg. Days On Market-88
Lake Timberline
          Sold-1          Avg. Days On Market-43
Leadwood
          Sold-1          Avg. Days On Market-12
Fredericktown
          Sold-3          Avg. Days On Market-115
Marquand
          Sold-1          Avg. Days On Market-55
Park Hills
          Sold-9          Avg. Days On Market-55
Potosi
         Sold-4          Avg. Days On Market-46
Ste. Genevieve
        Sold-6           Avg. Days On Market-125
Terre Du Lac
        Sold-6           Avg. Days On Market-171
All Other Areas
        Sold-3           Avg. Days On Market-92

The total number of residential properties sold were 71 with an average days on market of 92. The average sales price was $97,349. The lowest sales price was $12,500 and the highest sales price was $350,000. Thanks for reading!

New Potosi Chamber of Commerce Website

The Washington County/Potosi Chamber of Commerce has a new website. (http://www.potosichamber.com/). Doug Howlett and Kris Richards have worked diligently on getting the website up and running. It is a work in progress but a great added service to the chamber members as well as our community.

What does September hold for Farmington, MO?

Farmington, MO has a lot on the calender for September. The Young Faith In Christ Golf Tournament is scheduled for the 18th. This is their 10 annual event and proceeds benefit programs and events for YFC.

The Farmington Chamber of Commerce (www.farmingtonmo.org) has a full calender of events scheduled (http://www.farmingtonmo.org/calendar.htm) which will provide you with additional information. Please have a look and enjoy the activities our community has to offer.