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.