Mortgage Rates at 52 year low

Mortgage rates have come down this year to levels not seen since 1956. This makes it a good time to refinance or to buy a home.

Read more about it at CNN/Money.com - Home Mortgage Rates at 52 Year Low

First Time Buyer Tax Credit for 2009

The American Recovery and Reinvestment Act of 2009 was signed by the President on February 17, 2009. It contains a first time home buyer tax credit that is somewhat different from last year. Here is some basic information about the credit.

What is a tax credit?
A tax credit differs from a tax deduction in that the amount of the credit is deducted from the amount of tax you owe. A deduction reduces that amount of income which is subject to tax. In the case of this first time home buyer tax credit, if the amount of the credit is greater than the amount you owe, then you will be sent a refund check for the remaining amount of the credit.

Who is a first time home buyer?
Someone who has not owned a principle residence, a home they have lived in, for at least three years previous to the purchase of a home this year.

What type of home can I buy?
Single family homes, town homes, and condominiums all qualify.

What is the amount of the credit?
The credit amount is 10% of the cost of the home up to a maximum of $8000. Income limits do apply. The credit phases out for individuals with an adjusted gross income over $75,000 or a couple with an adjusted gross income over $150,000.

When do I have to purchase to get the credit?
You must purchase a home between January 1, 2009 and December 1, 2009.

Does the credit have to be paid back?
This credit does not have to be paid back for people who purchase between January 1, 2009 and December 1, 2009 unless the home is sold within three years and then the entire credit us due upon the sale of the property.

People who purchased a home between April 9, 2008 and December 31, 2008 will have to pay back their credit over a 15 year period. If they sell the home within 15 years, then the remaining balance of the credit will be due upon the sale of the property. (Rules for last year’s credit were different and the maximum amount was $7500.)

When do I get the money?
This is a tax credit. You will not get the money when you buy the house. Instead the credit will be applied to the taxes you owe for 2009. This will occur when you file your 2009 taxes in 2010.

Consult an Accountant
Tax laws are complicated and each year there are new changes; therefore, we always recommend that you consult your accountant or the IRS regarding any tax questions that you might have including whether or not you qualify for this tax credit.

Source: National Association of REALTORS®.

Does Your Dog Need a License?

If you live in Maricopa County and your dog is at least three months old, it needs a license and it must be vaccinated against rabies. If you fail to license your dog, you can be fined and charged with a misdemeanor. When purchasing a license for your dog you must present a certificate of rabies vaccination. It costs less to license a dog which has been spayed or neutered.

• Altered Dog (Spayed/Neutered) = $16.00 (Note - "altered" is the county's term not mine)
• Unaltered Dog = $40.00
• Senior Citizen Household (Altered Dog/limited two dogs) = $6

Maricopa County Animal Care & Control offers programs with low cost for vaccinations and to assist with the care of your dog. For more information: http://www.pets.maricopa.gov/.

To apply online for a dog license - Maricopa Dog Licensing

Just Published

I just published an article at ezarticles.com.

Foreclosure Real Estate Purchase Contract - What to Expect

The Bisbee Cave House

Are you looking to live in a cave, Batman? Here's a solution down in Bisbee and it's for sale.

The Bisbee Cave House $1,950,000

D'Arcy Ranch, Cottonwood, SunRise

Just north of the Chandler Fashion Center are three neighborhoods built in the 1990's. All three are within walking distance to the mall, employment and all kinds of restaurants.

The houses are stucco one and two story homes. From 1300 square feet up to 4000. There might be one or two near 5000. Average size yards, most lots are from 5000 square feet up to 13,000.

To the north of these communties are three large office buildings. Some could walk to work or to Firehouse Subs, The Spicy Pickle and a japanese restaurant.

To the south is the fashion center and P.F. Chang's, Olive Garden and other chain restaurants. Or you can take in a movie at Harkin's Theatre.

These communities are serviced by Kyrene del Sureno, the local elementary school that's right next to Harter Park with it's ball field, sand volleyball, basketball and playground.

How Does the East Valley Stand Up?

Those of us who live here know that the East Valley cities are a great place to live. Some other people agree with us. Click on a city name to get more information about the city and ranking information.

CNN/Money Rankings of Best Places to Live in 2008:

Gilbert, AZ - 28
Chandler, AZ - 30
Scottsdale, AZ - 47

Sustainability Rankings 2008:

Mesa, AZ - 50

Best Sports Cities Ranking - Sporting News 2008:

Phoenix/Tempe - 6

Before you buy a newly built home

Before you buy a newly built home, check on the financial health of the builder. You want to make sure they will be able to complete the community in a timely manner. This applies whether you purchase directly from the builder or from a current owner of a property in that community. If the builder is having financial difficulties it is likely that the HOA for that community is as well. How do you check? Click on the link to the AZ Department of Real Estate listing below. There is also a current article from the AZ Republic with a listing for Chandler. You may still decide to buy in one of these communities but you should make sure you have done your homework before you do.

Also, for those of you that don't live in this area, please realize that most of the Phoenix area cities are very large and with the expection of outlying areas new build communities represent a very small portion of the cities housing. The Phoenix area is a great place to live with lots of great communities.

Unfinished Subdivisions Create Problems - AZ Republic

AZDRE List of Home Builders in Financial Trouble

What Kind of Deals Are Out There?

It seems like people are always asking us to tell them what good deals are out there in the housing market. So, since October, we have been posting a "Deal of the Week" property on our websites. These are properties which are not our listings and are not short sales. They may be bank owned properties that were foreclosed upon or owned by an individual. We look for properties that we think represent a lower price than similar properties in the same area. Others must agree with us because many of these properties have sold or are under contract. When that happens, we removed the property from the website.

Please realize that a property is only a good deal if it meets your needs. That should be your first consideration. Secondly, we look for properties that represent a good value. We do not guarantee that they are the best value available. There are lots of properties out there and we only pick one new condo/townhome or single family home each week.

So if you don't see something that sparks your interest, send us an email telling us what you are looking for and we'll do a search for you, or use the search buttons in the upper right of this blog to do your own search. (Email us at Pat@RealtySecrets.net)

See what you think of this week's deals:

Townhome - 3 bedroom, 2.5 bath, 2 car garage in Tempe for $164,900

Single Family Home - 3 bedroom, 2.5 bath, 2 car garage in Tempe for $184,900

A New Year - A Fresh Start

The Federal Housing Administration has a new website page full of information that will help you get your financial house in order. The page is titled My Money, My Home, My Future. This is for anyone wanted to review their finances and finacial plans not just home owners.

FHA - My Money, My Home, My Future

Deal of the Week

We have added a new feature to our websites - The Deal of the Week. There are a lot of opportunities for savvy buyers in the current Phoenix area resale market. Listed on this section of our websites are the properties we have picked out from the MLS each week to highlight. These are not our listings. We look for properties that are priced below other comparable properties. Some may be move in ready and others may need a small amount to a lot of work done. Each week a new property will be added. We have included homes that have been foreclosed upon, that are currently owned by banks, and regular resales but have not included short sales. We realize that what constitutes a "good value" will be different for each of you. As always when purchasing a new home consider your needs and wants first.

Townhome and Condo - Deal of the Week

Single Family Home - Deal of the Week

Is a Credit Union Home Loan Right for You?

As a follow-up to my previous post on Credit Unions, I thought I should share this article on credit union home loans. It explains how credit unions did not get themselves involved in the subprime mortgage mess and that they do have money to lend. You do have to be a qualified buyer, don't expect a 100% loan. They can be a good option for many people.

Realty Times - Credit Unions to the Rescue

First Time Buyer Tax Credit

There has been a lot of talk in the press about the first time home buyer tax credit but not a lot of detailed information. I was unable to find detailed information at the IRS site at this time but the National Association of Home Builders has put a lot of information together at their site FederalHousingCreditTaxCredit.com. The credit is available for people who buy a home between 4/9/08 and 7/1/09. The home can be a resale or a new build. The tax credit acts as an interest free loan and must be repaid over 15 years. As always, we recommend that you talk with your accountant to get specific information about how the credit will benefit you.

Consider a Credit Union

If you are not a member of a credit union, you might want to consider joining one. They typically offer lower rates on auto and home loans and often have higher rates on CDs than some banks. Deposits are still FDIC insured up to the allowed amount. You do have to qualify to join a credit union but the criteria is often broad and it is likely that you will qualify for at least one credit union in your community. For example, Desert Schools Federal Credit Union has this statement on their website with regards to who qualifies for membership - "Persons who live, work, worship or attend school, including businesses and other legal entities, in Gila, Maricopa and Pinal Counties"

Here are some resources for more information:

US News audio commentary on the benefits of credit unions

America's Credit Unions - Credit Union Locator

Working for Your Downpayment

An article in the AZ Republic indicates that Trend Homes is offering a program where buyers can do some of the painting for their new home and apply this towards their down payment. For more information:

Will Work For Down Payment - article

Trend Homes Website

What Style is Your House?

The National Association of REALTORS® has a web page that describes all of the common architectural styles of homes in the United States. While the page is meant for real estate professionals, it is also assessable for the public. Styles discussed include: Pueblo, Contemporary, Ranch, Prairie, and many more.

NAR Residential Styles

Federal Take Over of Fannie Mae & Freddic Mac

The federal government has taken over conservatorship of Fannie Mae and Freddie Mac. It is believed that this will lead to more stability for these companies and the financial markets and economy in general. It may lead to low interest rates for mortgages. There is a lot of information available about this and I've provided links to some articles below for those of you who would like to be more informed.



Mortgage Industry Welcomes Federal Fix - Sept. 9 - AZ Republic



A Primer on Fannie and Freddie: What the Bailout Means - Sept. 8 - U.S. News & World Report



Fannie and Freddie: What You Should Know - Sept. 8 - U.S. News & World Report

Planning Your Move

We have added a button "Moving Checklist" which is just below the "Condo Search" button. This will link you to a Moving Time Table and a Moving Checklist. You can print either or both out for your use in planning your move. A few more tips are listed below.

Packing Considerations
· When obtaining boxes look for medium size ones that will be easy to lift when full.
· Compartmentalized containers (with cardboard dividers) are great for packing glassware and other small fragile items.
· Don’t use newspapers to wrap items that could be damaged if the ink rubbed off. Use tissue paper or plain paper designed for packing. Towels and linens can also be used for wrapping items.
· Empty and clean your refrigerator prior to the move.
· Be careful packing any containers of liquids that could easily leak. Seal them tightly with tape and place in plastic bags.

Small Bits & Parts
Whenever you dismantle an item for the move. Place small pieces, screws, and wires in a zip lock bag labeled with the item. Tape bag to item or place all such zip lock bags in one clearly marked box.

ASHI Client Bill of Rights

The American Society of Home Inspectors (ASHI) has created a Client Bill of Rights. Before ordering a home inspection it is a good idea to visit their site and read the Client Bill of Rights along with some of the other information they provide. There is information for home buyers as well as home sellers and home owners. You can even take a Virtual Home Inspection Tour.

ADRE Posts List of Builders in Financial Trouble

The Arizona Department of Real Estate has announced that they have posted a list of builders which are experiencing financial trouble on their website. It lists the builder/developer and the community/development they are building. If you are considering buying a property in a new development, you should check this list first. You do not want to give a down payment to a builder without an understanding of their financial ability to complete the home for you.

Arizona Home Builders in Financial Trouble

ADRE also recommends that you read Commissioner's Advisory Number 2 which gives information to home buyers and others that will be impacted by a builder discontinuing operations.

Please note that most home builders are meeting their obligations to their buyer's. ADRE provides this information as a service to Arizona's home buyers.

You should also know that you can have a real estate agent represent you when you purchase a home from a builder. However, that agent must go with you the first time you visit the community. An agent can help you understand the contract and to negotiate the home purchase with the builder.