The clock is ticking down for first time home buyers.  You need to act NOW to make sure that you don’t miss out on the $8,000 from Uncle Sam. 

Here is the fast, quick information you will need to see if you qualify for the $8,000 tax credit for first-time home buyers from The American Recovery and Reinvestment Act of 2009.

• You must be a first time home buyer, defined as not owning a home in the past 3 tax years.
• Tax credit amount is 10% of the sales price of the home up to a maximum of $8,000.
• There is NO price limit on the sales price of home.
• Maximum income to receive FULL tax credit is $75,000 for a single person, the limit for married couples is $150,000.
• You can receive a PARTIAL tax credit for income levels up to $95,000 for a single person and $170,000 for married couples. 
• There is no payback or penalty as long as you stay in home as your principal residence for 3 years.
• You must CLOSE on your new home on or after January 1, 2009 or before December 1, 2009-NO EXCEPTIONS.  (Countdown Clock will be updated daily)

24 Days

$8,000 Tax Credit Countdown Clock!

This is the quick & dirty information that you need right now for the $8,000 Tax credit.  For more detailed information you can go HERE.

It is a great time to be a home buyer.  This is the perfect time to by a home, especially 1st time home buyers, as long as your job is secure.  If you feel safe in your current employment/job job, then there are just so many positive reasons to now buy a home.  Don’t miss the “gravy train!”

• Buyer’s market
• Really low mortgage interest rates
• High inventory levels.  Plenty of home options
• Depressed, low prices (buy low, sell high) 

Please contact me if you have more questions or need help.

IMPORTANT:  I’m just trying to help the “average Joe home owner” to understand the new $8,000 tax credit.  I have to put this” CYA” disclaimer in my post.  Please consult a tax professional or accountant for more details and eligibility questions regarding the $8,000 1st time home owner tax credit.  I’m not an accountant or tax professional.

 Good luck out there!

 Home Buyer Advocate Mike

Home Inspector

Great article in this past Sundays, The Columbus Dispatch newspaper about home inspections.  “Inspector aims to open eyes”.  Local home inspector, David Tamny of Professional Property Inspections will be the  new president of the American Society of Home Inspectors (ASHI).

David has been a home inspector on our company approved list for nearly 13 years.  His company web site is also on my blog roll link on left.  David is a very competent home inspector.

Suprisingly, home inspectors in the state of Ohio are still not licensed.  Home buyers have to be very careful when selecting a qualified home inspector.   A good option for home buyers to find a qualified home inspector is to check and see if the  inspector is a member in good standing with one of the two big professional trade associations.

National Associaton of Home Inspectors (NAHI) and American Society of Home Inspectors (ASHI) are the two largest home inspector trade associations in the United States.  David Tamny will be the new incoming president of the 5,800+ member AHSI. 

Make sure you take a second to read the article link on home inspections.  It is great information for possible home buyers.

Please feel free to contact me if you need help or have questions

Home Buyer Advocate Mike

Another new home builder in the Central Ohio area has called it quits.  On Tuesday, Joshua Homes unexpectedly shut down its web site and disconnected their phones.  Joshua Homes appears to be the latest, in a long list, of new home builder casualties in our market.  In the past few  years Central Ohio area has lost many new home builders:

• Toll Brothers
• Joshua Homes
• Centex Homes
• CV Perry
• Beazer

Many current Joshua home owners are very concerned about their new home warranties.  This latest new build casualty really magnifies the potential problem of new home warranties.  Joshua Homes had one of the longest home warranties (40 year) in our area.  But, a warranty is only as good as the builder or warranty company.  Does it really matter if you have a 40, 45 or even 50 year new home warranty if your builder is out of business in a few years?  

The home buying consumer needs to realize that new home builder warranties are NOT regulated by any State agencies or the Department of Insurance.  It is buyer beware!  So, make sure you use an Exclusive (true) Buyer Broker when purchasing your next new home.  An Exclusive Buyer Broker will protect you during your transaction and act as your advocate.

Good luck out there.

Home Buyer Advocate Mike

This is a follow up to my blog post on March 25th, “Toxic Drywall Could Be Largest Lawsuit In US History!”    This blog post produced record high amount of views and comments.  We really tapped into a very important topic for the consumer.

 The good news is that the Columbus Dispatch is reporting that it appears there is NO Chinese drywall in the Columbus, Ohio area.  The Columbus Dispatch did a thorough job of interviewing new home builders, home contractors, drywall suppliers and it appears that no toxic Chinese drywall made it to the Central Ohio area.

The Bad news is that the toxic Chinese drywall is definitely in the United States.  In 2005, Chinese manufacturers shipped 500 million pounds of drywall mainly to southern gulf coast states of Florida, Louisiana & Texas.  Chinese drywall smells like “rotten eggs” and is being blamed for damaging furnaces and electrical wiring, tarnishing jewelry and possibly sickening families.  So the potential is still there for toxic Chinese drywall to be the largest lawsuit in US history.  Just be happy that it is not in our area.

Home Buyer Advocate Mike

NAR Green Designation

Congratulations to Andrew Show for being the only Exclusive (true) Buyer Broker in the State of Ohio that has obtained the  National Association of   Realtors (NAR) GREEN certified designation. (NAR Green Council)

Consumer demand for real estate professionals that are GREEN knowledgeable is exploding.  More home buyers are requiring their Buyer Agents to understand Green building principles and the financial advantages of properties that are energy efficient and ecologically friendly to the environment. 

Again, Congratulations Andy!

Home Buyer Advocate Mike

A good story on WSYX-ABC 6 – “Six On Your Side” about toxic drywall from China.  M/I homes faces a lawsuit for possible toxic drywall.  This has the potential to be a HUGE local and nationwide story.

It seems like the story is really flying under the radar.  I wonder why this isn’t getting more media/press coverage?

M/I Homes is the largest new home-builder in Central Ohio. 

http://tinyurl.com/cmlyak

 (Watch Consumer Alert Story)

This lawsuit has the potential to be the largest class action home defect lawsuit in US History!

Stay tuned for future updates and opinions in blog.  A story this big could be a “game changer”!

Be careful out there.

Home Buyer Advocate Mike

Your home is probably your most valuable asset.  You want to make sure your home is fully insured.  But, you don’t want to be over-insured. 

Many home owners don’t fully understand all the coverage options of their home owners’  insurance policy.

This blog post will give you 10 quick tips on how you can SAVE  money on your home owners’  insurance premium.

1. One insurer, multiple policies – It is best to have all your insurance policies (home, auto, boat, life, etc.) with one company.  Almost all insurance companies will give their customers multi-policy discounts.
2. Raise your deductible - You can possibly save between 12% – 37%, if you have a deductible of $500 to $5,000.  You might not want to carry the same deductible amount for your auto and home owners policy.
3. Newer is better - Home owners’  insurance premiums are less expensive for newer built homes.  Older homes are typically more costly to rebuild and newer homes have safe, new mechanical systems. (electrical, heating, plumbing, etc.)
4. Location, location, location – Do you live in earthquake prone California?  Do you live in Florida where hurricanes are a fact of life?  Other location issues to consider; are you close to a fire station?
5. Insure the house, not the land – A fire and high winds will destroy your home, but not your land.  Your land cost typically makes up  15% – 25% of your total home value.
6. Don’t insure what you don’t have - Review your policy at least once a year.  Make sure you aren’t over-insuring possessions (furs, computers, jewelry, guns, etc.).  Also, pay close attention to endorsements on your policy.   The amount of insurance protection that your receive per  endorsement premium dollar  is typically very costly.
7. Better safe, than sorry - Smoke detectors, monitored security systems (fire/police), fire extinguishers, etc. can save you discounts from 5% – 20%.
8. Where there is smoke, there is fire – More than 23,000 residential fires happen in the USA due to  smoking issues.  Some insurers offer discounts if all residents in home are non-smokers.
9. Group discounts – Some insurers offer discounts to certain business or alumni associations.  Make sure you ask your agent about this discount.
10. Don’t jump around – If you are satisfied with your insurance company or agent then stay with that company.  Most insurance companies offer discounts if you stay with them for 3, 5 and 10 years.

As always, you want to check with a licensed insurance agent before making any changes to your home owners’  insurance policy.  I am NOT an insurance agent.

Special thanks to Stephen Evanko, Jr, Insurance Advisor and Author for reference material for this blog post.

Good luck out there!

Home Buyer Advocate Mike

 IMPORTANT:  Blog post modification.  The source (Ohio Association of  Realtors-OAR) for this blog post was inaccurate.  I am sorry for the confusion.  OAR incorrectly stated that new changes will apply to all single family homes.  This is incorrect.  Changes on April 1st will apply only to condominiums and investment properties.  See previous blog post for more information:  http://mybuyerbrokerblog.com/2009/01/08/new-condominium-loan-guidelines-for-2009/ I am sorry for the confusion.

Wow, this is incredible new (bad) news.  It looks like the only good option for home buyer’s will probably be an FHA loan.  Fannie Mae and Freddie Mac are both toughening their credit score and down-payment rules as of April 1.

In response, major lenders are already factoring in the higher fees, which reduces the effectiveness of the stimulus efforts.

Under the new guidelines:

• Buyers with down payments of less than 25 percent will be charged a three-quarter point add-on penalty, no matter how high their credit score
• Buyers of duplexes, where one unit is owner-occupied and the other is rented, will be charged a 1 percent add-on
• Refinancers who take cash out will be charged as much as three points if they have a low to moderate equity stake.

Freddie spokesman Brad German says the loan categories and credit risk combinations targeted by these fees “default at four-to-eight times” the rate of other mortgages backed by Freddie. “We have to manage these risks appropriately,” he says.*

Good luck out there!

Home Buyer Advocate Mike

*This blog post referenced “Ohio Association of Realtors” email newsletter.

If you are looking for help to buy a home in Columbus, Ohio then you should contact a Buyer’s Agent.  But, not all Buyer’s Agents are the same.  The best representation for a residential or investor home buyer in Columbus, Ohio is an Exclusive Buyer Agent (EBA) or Exclusive Buyer Broker (EBB).  An Exclusive Buyer Agent will always look out for your best interest and protect you in the home buying process.

Here are the TOP 10 reasons to use an Exclusive Buyer Agent:

1.  We ONLY represent buyers.  We are EXPERTS at buyer representation.
2.  We negotiate the BEST price and terms for you.
3.  We don’t sell homes.  We advise, counsel and educate.
4.  We assist Buyers in evaluating the BEST financing options.
5.  We have a duty to DISCLOSE all material information to our Buyer’s.
6.  We are Buyer advocates that work to PROTECT your investment.
7.  We are the GUARANTEED highest level of representation.
8.  We SAVE you time and money.  We pay attention to the details.
9.  We provide MORE available homes to our Buyer’s than most other  agents.
10.  We locate, evaluate and negotiate for our Buyer’s.

For more information contact an Exclusive (true) Buyer Agent today. 

Helping home buyers is our only speciality.

A true Buyer’s Agent (EBA) will have no conflicts of interest….ever!

An Exclusive Buyer Agent is NOT Superman.  But, we are the home buyers best protection and advocate in the home buying process.

Good luck out there.

Home Buyer Advocate Mike

Starting in January 2009, Condo loan guidelines will be even more difficult for home buyers.  Fannie Mae &  Freddie Mac guidelines will change which will affect nearly all conventional condo loans.  But, FHA loans should not be affected (good news).  The major change is a pricing adjustment  that will increase the interest rate for the following condo loans.

• Buyer is putting down 25% or less (Loan to value percentage exceeds 75%). 
• If a condo loan term is great than 15 years

The approximate rate increase on these types of condo loans will be 1/2% or higher.

These new condo guidelines would have affected nearly 99.999% of all condo owners that I have helped since 1996.  This is a ridiculous new change that I think will really hurt condo sales in the Columbus, Ohio area.  We are moving in the wrong direction if we want to try and help the real estate and mortgage industry recover.

Good luck out there!

Home Buyer Advocate Mike