Here are some tools you can use to see both the kinds of expenses you may have, as well as calculate what you can afford for a mortgage payment each month.

The above tools can help you to determine what your monthly budget will be for a mortgage.  There are many things to take into consideration when calculating for your monthly mortgage.  Below is a list of the most common monthly expenses a buyer will have:

• Car Payment
• Car Insurance
• Credit Cards
• Student Loans
• Internet/Phone/Cable
• Utilities
• Food & Entertainment
• Memberships (HOA, Club, Health)
• Health Insurance
• Property Taxes
• Homeowners Insurance

While there are many steps to take to get you on your way to homeownership, in the end you will have made an investment that if managed and purchased smartly, can potentially bring you a good financial return in the end.

Happy House Hunting!

So why all this talk about short sales

Due to our current economic state, the rise in unemployment, and drop in home prices the numbers of short sales we are seeing is growing by leaps and bounds daily.  As a result of this hit to the market, the short sale has become the popular method for providing home owners an option of selling their home and avoid going into foreclosure. 

On April 5^th, the Fannie Mae program Home Affordable Foreclosure Alternatives (HAFA) will release a short sale program under the “Home Affordable Modification Program” that should help streamline the process, as well as provide lien holders incentives on short sales transactions.   

Short Sale by definition

Short sale is essentially the alternative to Foreclosure and/or bankruptcy due to default on paying your house note.  The short sale transaction is where the lender has agreed to accept a lower amount for the loan than what is owed by the current homeowner, potentially providing an opportunity for the home to be listed at a reduced price and hopefully sold quickly.  Usually the home owner will make some arrangements with the lender to pay off the difference in the amount owed.

Should you find yourself in a situation where you could be facing short sale there have been some challenges with the process that hopefully will be overcome with the new guidelines being laid out by the HAFA. 

Some of the biggest challenges are 1) agents unfamiliar with the process, 2) dealing with multiple lenders, and 3) no real system on how the process should be carried out.

To learn more about short sales, see all the programs being offered by the Home Affordable Modification Program, as well as find out if you qualify for the program, and/or a loan modification visit the website by clicking here:  https://www.hmpadmin.com/portal/programs/index.html

To get started, if you are one of the many individuals who do not itemize your tax return with the schedule A form, you can now use the Schedule L form and file a larger deduction than you could in previous years for Real Estate taxes.  It may be worth taking the time and effort to fill out the form.

Loan Deductions

Any mortgage interest you have paid on your home (or second home) is usually tax deductible, and you may be required to itemize your return.  You may also be able to report any mortgage insurance premiums (PMI) paid as a reduction in your income.

If you have taken out any home equity loans, whether or not you actually used it on the home, can also be tax deductible. 

Any of the above deductions will require you to itemize your return with the use of the Schedule A form.

Special note regarding PMI, if you have paid down your home note 78%, you may not be required to pay the insurance premium any longer, check with the mortgage company regarding whether you qualify to cancel the mortgage insurance premiums.

Energy Efficiency

There are several deductions that can be made and tax credits you can receive for various improvements you have made to your home should they be considered energy efficient improvements or additions.  You can also file for various other improvements even if they are not considered “energy” efficient.  

Home Buyer Tax Credit

Don’t forget about the home buyer tax credit.  New home buyers and move up buyers are eligible.  You can read all about the Home Buyer Tax Credit on one of my previous post. 

What if you sold a home?

If you are a single home owner any profit from the sell is tax free up to $250,000 and up to $500,000 for married couples.  Anything above that amount is almost always given a long-term capital gains tax, which is taxed at 15%. 

Forms and helpful links:

You will probably use one of these two forms: Schedule A or Schedule L

Info on deductions due to disaster

Residential Energy Credits 

Go to this link to see vaious types of tax credits for home improvements, upgrades, additions, etc.

Sources:  Realtor Magazine

www.HouseLogic.com

Additionally, it is always good to have your home inspected a week prior to close so that anything can be finalized and taken care of so that everyone is relaxed and things go smoothly at the closing table.  However, do one final walk through the morning or night before the closing meeting to make certain the property is still in good condition, as well as to verify that anything that was agreed upon between you and the seller has been completed. 

Below are a few suggested items you should run through when finalizing the observation of your new home. 

FOUNDATION

The foundation should have no areas with water seepage, and be clear of moisture (or evidence of moisture).  Minor cracks are usually not a structural issue. 

 WOOD

Check the wood externally for any signs of damage caused by termites, and/or wood rot.  This is where an inspection would come in handy if you feel there may be a potential problem.

WALLS/FLOORS

Be sure to also check the structure of the floors, walls, fireplace attachment, and even the attic.

If the home was built prior to 1978, you should have it inspected for lead based products and you should consider having any lead based paint or materials removed or covered.  An inspector can be a very valuable source in how to properly handle lead based paint in a home. 

Be sure to check that all windows and doors open correctly, as well as lock and unlock properly.

EQUIPMENT & APPLIANCES

Heating/cooling system check the type installed and what kind of maintenance and upkeep may be required. 

Water heater – What kind of system is installed, the capacity of the system, and how long it has been in place.  According to the Consumer Energy Center, the average life of a hot water heater is 13 years. 

Electrical – check the circuit box, wiring, and all the outlets.  Make sure each outlet works properly, as well as meets the codes and standards for outlet requirements.  You will need a certified outlet type for your large appliances such as your refrigerator, and washer/dryer. 

Appliances – turn on and operate each to ensure properly function:  Check range, oven, refrigerator, microwave, freezer, dishwasher, garbage disposal, gas fireplace, gas grill connection, and washer/dryer. 

EXTERIOR

Check the fence for broken or loose pieces, check all gates for proper function, and check any locks on the gated/fenced property.  Check patio and any outside appliances and connections.  Check your landscaping for care, and test any sprinkler systems installed.

Test your garage door and any electrical opening and closing functions.  If you home has a pool, make sure you have working knowledge and understanding of the care and functions and make sure you test  it.

Buying your new home should be fun.  Making sure that you work out any and all kinks prior to moving in will keep you happy and let you start make those new happy memories from day one.  Remember, an inspection by a professional is the best option for gaining a true understanding on the condition of your new home. 

Congrats!

Sources: National Association of Realtors and Consumer Energy Center

Here are some interview questions you can ask when trying to find just the right agent to work with:

1.       Tell me a little bit about your background, specifically in Real Estate?  It is important to know and understand a little bit about the agent.  They should be able to describe themselves in ways that indicate they are hard working and dedicated to getting the job done.  Look for success stories, and perhaps even ask about their daily schedule.

 2.       Is this a full-time job?  Most agents work full-time, but occasionally you will come across a part-time worker.  Although part-time agents can get the job done, a full-time agent may be more focused on selling your home full-time.

 3.       How many homes has your brokerage sold?  The proof is in the pudding as they say.   It will be good for you to see the types of homes or properties the brokerage has sold and how much experience they hold.

4.       What is the average time one of your homes is on the market, how does this compare to the rest of the market?  This will give you an idea of their turnaround time as well as give you a realistic idea of how long it may take to sell your home.

 5.       How close to the asking price do you get with your homes sold?  This will give you an idea of how well your agent is conducting their market research prior to listing your home or presenting a suggested list price.

 6.       Tell me a little bit about your marketing plan?  It is very important to know that the agent does have a WRITTEN systematic plan in place for selling your home.

 7.       Can you assist with service providers?  If your agent already has relationships with mortgage brokers, title companies, appraisers, repair man, etc., it will make selling your home and closing go much smoother and quicker.

In closing, use your judgment.  If the agent seems genuine, someone you could be friends with, knowledgeable on the market and the home selling process, and most importantly someone you could really partner with, then they may be just the right match for you. 

Best of Luck!!

If you have been watching the news lately, I am certain you are familiar with the words “Home Buyer Tax Credit”.  Many buyers in the market today are wondering just exactly what that means for them.  

While many buyers have a pretty good understanding of what the credit includes, several buyers are unaware that the extension is not just for First-Time Buyers.  Additionally, buyers have many questions about what credit they may be eligible to receive.  

Who Qualifies?

First-time Buyers:

By law a first time buyer is being defined as someone who has not owned a home within the past 3 years, for married couples this rule applies to both spouses

Move-up or repeat buyers:

Buyers who have lived in same home for at least 5 consecutive years of the eight years prior to the purchase date.  For married couples this rule applies to both spouses.

Income Qualifications?

First-time Buyers:

If you purchased your home between Jan 1, 2009 and November 6, 2009 then the following caps apply:

Single buyers income cannot exceed $75,000

Married couples income cannot exceed $150,000

If you purchase your home between November 6, 2009 and June 30, 2010, then the following caps apply:

Single buyers income cannot exceed $125,000

Married couples income cannot exceed $225,000

*The contract must be written by April 30, 2010 with the transaction closing by June 20, 2010. 

Move-up or Repeat Buyers:

• There is a cap for Move-up or Repeat Buyers:

Single buyers income cannot exceed $125,000

Married couples income cannot exceed $225,000

How much will I get?

First-time Buyers:

• 10% of the home purchase price with a maximum amount of $8,000

Move-up or Repeat Buyers:

• 10% of the home purchase price with a maximum amount of $6,500.  Homes priced over $800,000 are not eligible for the tax credit

 Do I have to repay the money?

No, this money is yours, as a tax payer you have contributed to the tax credit monies, and you do not have to repay it.

 Remember to be eligible for the Tax Credit all contracts must be written by April 30, 2010 and the transaction must be complete and close by June 30, 2010. 

To learn about other tax deductions and credits, view this article. 

If you have any question, please let me know! 

However, according to a report by My San Antonio many of these empty and rather large spaces are being bought up by the still dominant forces in the market, such as the Bed, Bath and Beyond that took over the Linens N’ Things at The Forum. 

Overall sales for Commercial Real Estate in San Antonio were down 68%; however, statistics being reported are starting to show some stabilization for the commercial side of the market.

You can learn more about these reports from My San Antonio by visiting the links below: http://www.mysanantonio.com/business/local/Vacant_commercial_sites_not_easy_to_fill.html

http://www.mysanantonio.com/business/local/SA_commercial_real_estate_sales_down_68.html

As we take a look at the Residential side of the San Antonio market, we continue to see growth within sales.  Much of this can be contributed to the first-time buyers incentive as well as to the attractiveness of the state of Texas as well as the city of San Antonio. 

While only slight, the San Antonio job market is beginning to see improvements to the unemployment rate and we are beginning to see more and more new comers to our state from areas such as California. 

According to the report by My San Antonio, a large contributor to the decrease in unemployment is being made up of government type jobs such as schools.

You can see more about on these reports by visiting the links below:

http://www.mysanantonio.com/business/local/SA_home_sales_make_big_jump.html

http://www.mysanantonio.com/business/local/SA_jobless_rate_edges_down_in_October.html

It is also true that furnished homes are much more likely to sell than an empty home. So by putting up just a small investment to stage your home to sell, you could possibly get greater and quicker returns.

Exterior / Curb Appeal

This is the first thing your potential buyer will see, and it should leave a positive lasting impression.  Make sure your lawn is mowed and weeds are pulled, keep your flower beds clear of trash, as well as dead leaves and grass. 

Remove all unnecessary items from your yard such as children’s toys, bikes, muddy shoes, trash cans, lawn mowers, etc.  Keep the area clean, sweep the walkways and patio, and clean windows with glass cleaner.

Add a welcoming feel to your exterior entry way by adding just  a couple  nicely potted plants or flowers.  Here are a few that will survive and look nice in any season; Golden Sword, Green Mountain box wood, and Golden creeping Jenny.

Use of Colors

As a rule you should keep walls neutral in color and bring color into the room through accents and accessories.  A simple coat of paint on the wall could really help to freshen up the look of a room.  Keep the color of the walls and furniture neutral, and do some of the following to add color to the room.

In the main living areas or great rooms, use toss pillows with warm colors such as a deep cranberry, golden tones or deep yellows, and dark orange.  These colors will add a feeling of warmth and comfort to the room. 

In children’s rooms or game rooms, add bright primary colors such as blues, reds and yellows.  You can easily find inexpensive accessories such as over sized pillows, bean bag chairs, or papasan chairs.

In the master bedroom try to keep it neutral, remember everyone has different taste and you have to try your best to appeal to all.  If possible remove the pink flower comforter, purple wall paper or paint, pink faux fur rug, and definitely be sure to remove any kind of stuffed animals, these should be completely off limits in any adult bedroom.

Strict – NO Clutter Policy

The house should be clean and organized before a potential buyer walks through.  During this time until you sell your home, enforce a household policy of no clutter and no mess.  Counters absolutely need to be wiped down, floors mopped or vacuumed, and no extras (toys, books, papers, shoes, clothes) laying around.

Be sure to put away any dishes, clear the counters as much as possible putting away or out of sight extra appliances such as a waffle maker or sandwich maker.  Take down all the little notes, pictures, magnets, etc., attached to your refrigerator (tell the kiddos it’s only temporary, and that you are still very proud and the love the family picture they drew in class). 

All beds should be made and absolutely no clothing laying around on floors or chairs, bathroom counters should be clean, toilets flushed (you would be surprised), trash cans emptied.

Lighting

Keep all spaces through out the home warm with light.  During the day, open up all curtains or blinds, in rooms that tend to be dark, be sure to turn on the lights during a showing.  In the evening, find ways to illuminate all the rooms with lamps or lights.  If one of your selling points is your amazing patio or court yard, use candles (you can use something like  Scentsy which is fire free)  to add that extra ambiance to the space.

If you have dark walls making a room feel dim and cold, you may want to consider adding some light to the room by painting it over with a lighter and more neutral paint and bringing in some lamps and mirrors for the walls.

Walls

The best things you can have on your walls is mirrors and nicely framed landscape prints or paintings.  Mirrors help to open up the space and make it feel larger.  Paintings or prints of the outdoors and nature is sure to bring a calm feeling to the room.   Remove any family pictures throughout the house as this could give your buyer the feeling that they are in someone else’s home, and not theirs. 

Pets

If you know a potential buyer is coming through, try your best to find a place for fiddo or mittens.  Some people may not be as much a lover of pets as you.  If you can try remove or reduce the evidence of your beloved pet, it will help you that much more in selling your home.  Consider placing them (only temporarily during the showing) in a kennel in your garage (of course weather permitting). 

Plants

If you have plants in the room, make sure they are watered and the leaves attached are all alive.  Remove and discard any dead leaves you may have.

If you don’t have plants, consider buying just a couple to place throughout, just this small touch of life can do wonders for a room.  You can even find some really great looking fake plants these days and you won’t even have to worry about watering or removing dead leaves.

Furniture Placement

Try to keep the furniture in the rooms to a minimal, just the necessities is all you should have.  Your moving anyway (as soon as you sell your home), so start packing up or removing anything you can live without for a month or two.   Items such as workout machines, extra tables or chairs, or any items that can make the room feel cramped or small.

Consider replacing your larger coffee  or end tables with other smaller tables you may have in other rooms of the house.

If you space is lacking furniture, try to find ways to bring small pieces from other rooms of the house, to make the space seem more livable and warm.  For example, you can make a seating or living room more inviting by bringing in 2 dining room chairs placed next to one another across from a smaller couch or love seat.

Sources: http://www.finegardening.com/plants/articles/10-plants-for-year-round-containers.aspx

www.Realtor.org

www.About.com