6 Surprising Facts About the Buyer Tax Credit
The homebuyer tax credit is not as simple or straightforward as you might think. Here are some nuances that will affect homebuyers who plan to use it.

• To qualify for the move-up tax credit, a home owner must have occupied the same principal residence for five of the last eight years consecutively.
• Buyers can elect to claim the credit on either their 2009 or their 2010 tax return, whichever is best for them.
• Buyers who claim the credit in 2009 can’t file electronically because the Internal Revenue Service hasn’t put the required forms on line. The wait for a refund is three or four months.
• The home can be a mobile home or travel trailer that is fixed to land owned or leased by the home owner. A mobile home or travel trailer that is actually mobile doesn’t qualify.
• The home can’t be purchased from a close relative, including a parent, spouse, child, grandparent or grandchild.
• A buyer who earns no taxable income or doesn’t owe any federal income tax can qualify for the tax credit and file a tax return just to claim it.

Source: Bankrate.com, Marcie Geffner (01/21/2010)

Housing Economists: Sales Are on the Rise
The housing recovery should gain moment in 2010, but the improvement will still be slow, according to a panel of economists speaking at the International Builders Show in Las Vegas.

"It won't be a strong recovery, but it will be a recovery," said David Crowe, chief economist for the National Association of Home Builders.

Crowe forecast that sales of new homes will rise by about 33 percent while resales will go up 7 percent. He expects prices to remain stable in most areas, but some cities may see some slight declines.

"I believe we've seen the worst of the house price declines ... The stage is set for the consumer to return," Crowe said.

Source: Associated Press, Alex Veiga (01/19/2010)

FHA To Toughen Down Payment Rules
The Federal Housing Administration will raise the minimum down payment for its least credit-worthy borrowers, agency announced Tuesday.

Borrowers with credit-rating scores below 580 will be required to put down at least 10 percent. Those with a credit score above 580 will be able to continue to put down only 3.5 percent. The changes are intended to shore up the agency's finances.

The FHA also will increase its upfront mortgage insurance premium from 1.75 percent to 2.25 percent. The agency is expected to seek congressional approval to raise annual mortgage insurance premiums, paid by borrowers over the life of the loan, above the current 0.55 percent maximum. The amount it will seek has yet been announced.

Source: Reuters News, Corbett B. Daly (01/19/2010)

How to Make the Most of Your Winter Property Listings

By Charlene Storozuk

Once the holiday season is over, we all tend to hunker down for the cold months ahead (at least those of us not lucky enough to live in a warm locale).  The long winter months can play havoc with your social life, mood, travel plans, and, dare I say it, your real estate listings.

How do you bolster potential buyers on the merits of your listing’s exterior when there’s 4 feet of snow outside? Well, here are a few things that just might help.

• 
• Make sure all seasonal decorations have been put away.  It’s time to remove the outdoor Christmas lights and Santa displays.

• Place a few frost resistant planters or urns outside.  Dress them up with twigs, winter greenery, and sparkly “baubles.”

• Statues look great in an outdoor winter garden.  Make sure that the pieces you display are frost resistant so they won’t crack.  Strategically place them around your garden to help draw potential buyers’ eyes around your outdoor space.

• A few outdoor flood lights (clear, not colored) shining on statues, urns, and other interesting architectural features will give a hint of drama for nighttime showings.

Sold: NYC’s ‘skinniest’ house, 9.5 feet wide

‘Edna St. Vincent Millay’ house listed since August goes for $2.1 million

Yanina Manolova / AP The skinniest house in New York City sold for $2.1 million, the realtor said Wednesday.  View related photos

updated 6:22 a.m. HT, Thurs., Jan. 14, 2010

 NEW YORK - A town house dubbed New York City's skinniest house has sold for $2.1 million.

 The red, 9 1/2 foot wide, 42 foot long brick building in Greenwich Village was built in 1873 on land used as an alley between homes. The town house was listed for sale last August at $2.7 million. The two bedroom, two bath home last sold in 2000 for $1.6 million.

 A plaque on the narrow Bedford Street home notes poet Edna St. Vincent Millay once lived there; so did anthropologist Margaret Mead.

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The newly sold building was listed on real estate Web sites Wednesday as a rental available for $10,000 a month. An e-mail seeking comment from the listed rental agent Wednesday was not immediately returned.

Municipality ready to send out 2010 property tax assessments

GREEN CARDS: Value down 1 percent, can be checked online.

By DON HUNTER
dhunter@adn.com

Published: January 13th, 2010 09:58 PM
Last Modified: January 14th, 2010 09:16 AM

Analyst: Housing a Good Investment in 2010
Forbes housing reporter and analyst Francesca Levy makes some thought-provoking predictions in the latest issue of the magazine.

She predicts:

• Real estate will be an attractive investment strategy in 2010 with wealthy investors devoting an increasing segment of their portfolios to it.
• Loan modifications will result in more people who should probably be facing foreclosure slipping deeper into debt.
• Cities like Omaha, Neb., and Buffalo, N.Y., which avoided the housing bubble and most of the bust, will be models for cities trying to avoid another bubble.
• Financial troubles in Dubai will ripple through the U.S. luxury market, creating energy in a market that has been stagnant.

Source: Forbes, Francesca Levy (12/28/2009)

Expanded Tax Credit Offers Big Opportunity

With a new April 30 deadline in place for clients to take advantage of a federal home-buyer incentive, real estate practitioners now have slightly less than four months to get their qualified prospects under contract before the cut-off date.

In order to maximize this opportunity, it is recommended that real estate pros revamp their marketing materials to reflect changes in the rules — which now allow certain repeat buyers, as well as first-time buyers, to get a tax break.

In addition to promoting home-buying based on today's lower home prices and historically low interest rates, it is also important for the real estate professional to convey to clients that there is no requirement that they sell their current residence at once — or ever.

On top of polishing up their marketing approach, real estate professionals should free up their time so that they are available to spend more time guiding buyers and hosting property showings.

They also must be thoroughly knowledgeable about the supply of properties priced up to $800,000, which is the maximum price for a home to qualify for the tax credit.

Finally, agents must keep all other parties involved in transactions — from lenders to inspectors — on top of things and at the ready because most motivated house-hunters will want to move quickly once they have found their ideal property.

Source: RISMedia, Margaret Kelly (01/08/10)

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